Will you be able to complete the full course?
Organizational Culture and Diversity 2 Learning Objectives After reading this chapter and studying the materials, you should be able to:• Explain the natur e of or ganizational cultur e.
• Identify w ays t o int egrate new emplo yees int o an or ganization’s cultur e.
• Discuss methods f or building a mor e ethical cultur e and eff ectively adapting or modifying a culture w hen necessary .
• Evaluate the eff ects of the incr easing le vel of di versity in t oday’s business en vironment. Hero Images Inc./Hero Images/SuperStock 2017 Bridgepoint Education, Inc. All rights reserved. Not for resale or redistribution. Understanding Organizational Culture Section 2.1 2.1 Understanding Organizational Culture In the 1980s, man y Japanese companies beg an making serious inr oads int o U .S. mar kets, especiall y in the aut omotive and electr onics industries. A v ariety of f actors helped e xplain the change, including hist orical e vents, economic conditions, the leg al en vironment, competi - tive cir cumstances, and the quality of the pr oducts sold b y firms such as Honda, T oyota, and Son y. A dditional speculation beg an t o emer ge, suggesting that someho w the Japanese cultur e w as part of the pictur e. The Japanese cultur e included elements of lo yalty and shar ed com - mitment betw een companies and emplo yees. Lif elong emplo yment contr acts w ere common. Man y w orkers e xperienced a sense of “honor” fr om being true t o the or ganization, r egardless of status in the or ganizational hier archy or the actual task s perf ormed. This common bond cr eated a competitive advantage in terms of product quality and worker productivity.
Consequently, in the Unit ed Stat es, or ganizational beha vior and management r esearchers start ed stud ying the r ole that cultur e pla ys in the business community . The in vestigation led t o some confusion. Some belie ved that the national cultur e of Japan w as the dri ving f orce behind the competiti ve successes of businesses in that country . T o others, ho wever, it w as the cultur es of specific companies that created the advantage. The fir st disti nction t o be made w hen stud ying cultur e is the le vel of anal ysis—in a nation v ersus within a specific compan y. This chapt er e xamines cultur e at the compan y le vel. O rga- nizational culture consists of a set of shar ed meanings and v alues held b y a set of members in an or ganization that disti nguish it fr om others. An or ganization’s cultur e det ermines ho w members per ceive and r eact t o the lar ger en vironment (Beck er, 1982; Schein, 1996). C ulture det ermines the natur e of an indi vidual’s e xperience in f or-profit companies, nonpr ofit, and go vernmental entities. An or ganization’s cultur e normall y de velops o ver a long period of time. Man y times, it begins with w hat has been t ermed a “f ounder st ory” r egarding the indi vidual w ho cr eated or start ed the or ganization. Ex amples include J.C. P enney, Sam W alton (W almart), or mor e r ecently, St eve Jo bs (Apple Comput er). A f ounder espouses certain v alues and e xpresses the w ay he or she wishes t o oper ate. Members f ollow, and the cultur e begins t o de velop (see OB in Action:
Honest Tea for another example).
Over time, a cultur e ma y e volve as or ganizational leaders r espond t o the need f or e xternal adaptation and survi val methods w hile at the same time coping with pr oblems associat ed with int ernal int egration (Schein, 1996). P atterns of beha vior de velop within the or ganiza- tion including w hat t o w ear, the type of language (f ormal, inf ormal) used w hen addr essing those of hig her r ank, the conduct of perf orming the actual task or job, and numer ous other f acets of or ganizational lif e that r eflect and e xpress the v alues of the f ounder and those w ho f ollow.
Culture becomes a r elatively fix ed or ganizational element r eflecting the or ganization’s his- t ory. T op managers w ho understand the importance of a cultur e enjo y a major competiti ve ad vantage. Airbnb’s co-founder and CEO Brian Chesky stated, The thing that will endur e f or 100 y ears, the w ay it has f or most 100 y ear com - panies, is the cultur e. The cultur e is w hat cr eates the f oundation f or all future inno vation. If y ou br eak the cultur e, y ou br eak the machine that cr eates y our pr oducts. (ReferralCandy, 2016, para. 5) \251 2017 Bridgepoint Education, Inc. All rights reserved. Not for resale or redistribution. Understanding Organizational Culture Section 2.1 OB in Action: Honest Tea—A Strong Culture from the Beginning Honest T ea beg an as a collabo ration betw een co-f ounders Seth Goldman and Barry Nalebuff. Both had an int erest in r efreshment pr oducts that w ere less s weet than tr aditional drink s such as Cok e or P epsi. T ea pr ovided a natur al alt ernative. Nalebuff visit ed India, w here he learned that the major t eas sold f or bottling b y American companies w ere oft en br ewed using the dust and fannings left after the quality t ea leaves w ere used. Nalebuff and Goldman concluded that t ea br ewed with actual t ea lea ves w ould tast e bett er and enjo y a natur al ad vantage in the mar - ketplace.
The name Honest T ea r esulted fr om the idea that bottled t eas br ewed with r eal t ea lea ves had a better, more genuine (or honest) taste (Honest Tea, 2016).
From the beginning, the compan y based oper ations on a passion both cof ounders held r egarding social r esponsibility. The compan y’s mission stat ement is “Honest T ea cr eates and pr omotes delicious, trul y health y, or ganic be verages. W e stri ve t o gr ow with the same hones ty w e use t o cr aft our pr oducts, with sustainability and gr eat tast e f or all. ” The concept dri ves e very compan y acti vity, fr om the manuf ac- turing pr ocess t o mar keting pr ograms, biodegr ad- able t ea bags, or ganic ingr edients, and community partnerships.
Eff orts t o become mor e sustainable led t o the de velopment of pla stic bottles that ar e 22% lig hter than most v ersions, sa ving t ons in w aste.
Honest T ea’s partnership pr ograms seek out cir cumstances in w hich an entr epreneur in a strugg ling r egion can pr oduce new fla vors and additi ves. Contr acts ha ve been de veloped with Nati ve America n gr oups in the Unit ed Stat es and f armers in Thailand w ho gr ow mangost een, an antio xidant ingr edient. Goldman and Nalebuff belie ve in helping others thr ough commer ce.
The r esult, in t erms of an or ganizational cultur e, is a compan y filled with emplo yees w ho ar e pr oud of w hat the y do and ho w the or ganization oper ates. Compan y in volvements include “plant a tr ee” ef forts and support of the Susan G. K omen cancer f oundation. The str ong empha - sis on sustainab ility, r esponsibility, and hig h-quality pr oducts has tak en this small oper ation t o a thriving and successful business across the United States (Honest Tea, 2016).
In 2011, Honest T ea w as acquir ed b y Coca Cola. C onscious Company Magazine (2016) not ed that the or ganization sta yed true t o its mission and v alues. F urther, Honest T ea has been left t o oper ate lar gely as an independ ent unit within the bigger corpor ation, ther eby supporting the compan y’s original mission and v alue stat ements, and mainta ining the or ganization’s int ernal cultur e.
Reflection and Application Questions 1. Can most companies develop a similar mindset regarding social responsibility and suc- ceed at the same high level?
2. What kinds of employees would naturally fit in the Honest Tea organization?
3. Can you think of situations that might threaten the culture of Honest Tea? If so, what ar e they? ManuHK/iStock/Thinkstock Honest Tea was founded in 1998.
\251 2017 Bridgepoint Education, Inc. All rights reserved. Not for resale or redistribution. Understanding Organizational Culture Section 2.1 Culture consis ts of the s ymbols, rituals, language, and social dr amas that hig hlight or ganiza- tional lif e, including m yths, st ories, and jar gon (Smir cich, 1984). S ymbols include the golden ar ches at McDonald’s, the Int el tune pla yed in commer cials, a Star of Da vid in a s ynagogue, or the R epublican elephant . Rituals include joining cer emonies and commencement acti vities, such as the Doct orate of Hambur gerology gr anted t o gr aduates of the McDonald’s manager tr aining pr ogram, Hambur ger Uni versity. Language includes compan y-specific acr onyms and t erms: In the w orld of Disne y, a cr owd at a theme par k is an “audience” and a w ork shift is a “perf ormance.” Social dr amas emer ge fr om pr omotion decisions, t ermination decisions, and disciplinary actions. C ulture also consists of shar ed meanings associat ed with these elements. F or instance, the t erm “no rules” has a shar ed meaning among emplo yees at Out back St eakhouse. The or ga- nization emphasizes ha ving fun and cr eating a positi ve and pleasant en vironment in w hich cust omer needs come first (no rules about alt ering the menu choices, f or e xample). F urther, shar ed meaning arises fr om consist ently mentioned themes of inclusi vity, di versity, t eam trust , and communication (Bloominbr ands.com, 2016; Sulli van, 2005). C ulture combines the philosoph y of the f ounder of the firm with belief s, e xpectations, and v alues shar ed b y members.
Or ganizational cultur e has se veral dimensions. These include dominant cultur es and subcul- tur es, strong (and weak) cultures, along with other functions and layers.
Dominant Cultures and Subcultures In near ly e very society , a dominant cultur e guides the dail y acti vities of citizens. The same holds true f or indi vidual companies. The dominant culture articulat es the cor e v alues shar ed b y a majority of an or ganization’s members. When the compan y int eracts with the public, the dom inant cultur e is oft en r eadily noticeable. As an e xample, the dominant cultur e at South west Air lines leads emplo yees t o cooper ate with one another and t o ha ve fun w hile doing so. The Out back St eakhouse chain tried t o instill the same type of shar ed v alues using the “No R ules” mott o f or man y y ears. In essence, the dom inant cultur e becomes the or ganiza- tion’s personality.
As a compan y gr ows in size, subcultur es oft en emer ge. A subcultur e (a cultur e that diff er- entiates a subgr oup fr om the lar ger gr oup t o w hich it belongs), in an or ganizational cont ext, arises fr om the common pr oblems, situations, and experiences that a set of members f ace. In a fr eethinking and fun-lo ving compan y such as Nint endo, w hich de velops handheld g ames, the dominant cultur e e xtends t o e very member . One department in the compan y, quality con - trol, still must adher e t o car efully managed pr oduction t echniques or the g ames will ha ve def ects and will not w ork. It w ould not be surprising t o find that members of the quality contr ol depar tment ha ve an additional set of v alues that diff er somew hat fr om the o verall or ganization. Man y times, subcultur al v alues mesh with or contribut e t o those of the dominant cultur e. A subcultur e should not aut omatically be consider ed as a neg ative f orce, or count er-position t o the dom inant cultur e. In the case of Nint endo, f or e xample, strict er adher ence t o saf ety and quality protocols supports the delivery of the fun-loving games others create. \251 2017 Bridgepoint Education, Inc. All rights reserved. Not for resale or redistribution. Understanding Organizational Culture Section 2.1 At the other e xtreme, ther e ma y be times w hen an “us v ersus them ” mentality emer ges as the subcultur e becomes mor e established and some v alues conflict with those pr ofessed in the dominant cult ure. Such ma y be the case w hen a subcultur e emer ges ar ound a new t echnol- ogy that ma y change the entir e or ganization but cost some members in t erms of position and po wer, leading t o r esistance fr om some and support fr om others. Managers ar e ad vised t o monit or the r elationships betw een the dominant cultur e and an y subcultur e that arises o ver time.
Strong Cultures Some dominant cultur es ar e mor e perv asive than others. A compan y with a str ong culture f eatures members w ho int ensely hold and r eadily shar e the or ganization’s cor e v alues. Str ong cultur es ar e r eadily e vident in military and r eligious or ganizations with rich hist ories and tr aditions.
Strong, domin ant cultur es ma y e ven be f ound in Int ernet companies. The r apidly gr owing Int ernet compan y Zappos.co m pr ovides tr aining f ocused on the firm ’s 10 cor e v alues, w hich include “Deli ver W OW,” “Pursue gr owth,” “ A little w eirdness,” “Be passionat e,” and “Be hum - ble.” F ounder and f ormer CEO T ony Hsieh w ould seek out indi viduals with a passion t o pr o- vide quality cust omer service. T o cr eate and maintain that cultur e, the w orkplace includes fr ee f ood, substantial int eractions betw een emplo yees, and constant encour agement t o ha ve fun.
Ne w emplo yees begin their tr aining in the call cent er serving cust omers, e ven w hen the w orker will e ventually pla y a diff erent r ole, such as or der fulfillment , in ventory contr ol, or finance and accounting. Dur ing the tr aining sessions, H sieh off ered t o “bu y out” an yone w ho did not belie ve he or she w ould fit with the compan y. P ayments, w hich w ere r arely accept ed, r anged up to $2,000 (Durst, 2006).
In or ganizations such as Zappos.com and Honest T ea, a str ong dominant cultur e gener ates se veral benefits. Members of these companies oft en e xpress hig h le vels of agr eement with and commitment t o the or ganization’s mis - sion.
Emplo yees and emplo yee gr oups ar e oft en tig htly knit and cohesi ve and r emain lo yal t o the or ganization. In pr actical t erms, companies with str ong cultur es oft en e xhibit lo wer le vels of turno ver (f ew people quit or ar e fir ed); the emplo yees off er stat e- ments of lo yalty t o other emplo yees and t o people outside of the compan y. The net r esults can be impr oved pr o- ductivity and a positi ve, social w ork atmospher e, w hich in turn ma y entice quality indi viduals t o seek emplo y- ment with the company.
By inf erence, other or ganizations w ould ha ve w hat mig ht be char acter- ized as “w eak” cultur es. Emplo yees or members ma y not be made a ware of k ey or ganiza- tional v alues or ma y simpl y not bu y int o those v alues. Some r esearchers conclude that a w eak Jacob Ammentorp Lund/iStock/Thinkstock Organizations that have strong cultures tend to have employees who identify with the organization’s mission and with each other, potentially leading to higher productivity.
\251 2017 Bridgepoint Education, Inc. All rights reserved. Not for resale or redistribution. Understanding Organizational Culture Section 2.1 culture ma y be associat ed with a lack of emplo yee f ocus and lo wer or ganizational perf or- mance (Gor don & DiT omaso, 1992); ho wever, others suggest an o verly dominant cultur e can mak e an or ganization less democr atic and mor e inclined t o mind guar ding ag ainst dissenting opinions or approaches (Parker, 2000).
Managers sho uld be a ware of the pot ential neg ative eff ects of a cultur e that has become t oo str ong as t o be o verwhelming, or one that is t oo w eak t o gener ate some of the pot ential ben - efits a culture can offer.
Functions of Culture Organizational cultur e can pla y a k ey r ole in an or ganization’s w ell-being. It can impr ove the or ganization’s functioning as w ell as enhance the emplo yment e xperiences of indi vidual w orkers. Several potentially positive functions may be played by an organization’s culture.
Culture Makes the Organization Distinct Culture cr eates distinctions betw een or ganizations. These unique f eatures attr act some peo - ple t o join a compan y and encour age others t o go elsew here. The y e xtend t o cust omers, other or ganizations, and e ven the go vernment. In the insur ance industry , Aflac de veloped a hig hly visible r eputation f or being f amily friendl y and w elcoming t o members of minority gr oups. The company’s culture sets it apart from other insurers.
Culture Creates a Sense of Identity If you speak t o a person in unif orm and r efer t o him or her as a “soldier ,” ther e will be instances in w hich y ou will be quickl y corr ected with, “I’m a Marine. ” Marines view themsel ves as diff er- ent fr om “or dinary” soldiers. The same sense of identity can be f ound in a v ariety of or ganiza- tions.
Str onger cultur es lead people t o incorpor ate the or ganization’s cor e v alues int o their o wn personal value systems.
Culture Builds a Strong Social System Culture has been compar ed t o social g lue holding an or ganization t ogether. When people join companies, the y learn ho w t o pr omote themsel ves and become mor e full y a ware of ho w an or ganization oper ates. The social s ystem e xplains the “rules of the g ame,” including w hat ar e acceptable and unacceptable behaviors. Social dr amas occur w hen norms and rules ha ve been violat ed. Norms ar e the rules of beha v- ior that guide members of an or ganization. Norms appl y t o le vels of eff ort gi ven on the job, t o the willingness t o shar e inf ormation and help others, t o manner of dr ess, and e ven t o lan- guage. R ewards and pr omotions accumulat e t o those w ho f ollow the rules and pla y the g ame as expected (O’Reilly & Chatman, 1996).
Culture Helps Employees “Fit In” By compr ehending ho w a cultur e oper ates, an emplo yee w ho wishes t o r emain will seek t o fit in.
The person will learn compan y lingo and, o ver time, mor e str ongly accept the or ganization’s \251 2017 Bridgepoint Education, Inc. All rights reserved. Not for resale or redistribution. Understanding Organizational Culture Section 2.1 core v alues. C ulture pla ys a major r ole in guiding the beha viors of members of a compan y. Understanding and adapting to a culture can assist in building a successful career.
Layers of Culture Just as people ha ve la yers in their per sonalities, la yers ma y be f ound in the cultur e of an or ganization. Some of the char acteristics of an or ganization’s cultur e can be r eadily observ ed, w hile others r emain subtle or hidden. Thr ee le vels of cultur e int eract with one another and influence beha viors in or ganizations: observ able artif acts, espoused v alues, and enacted values.
Observable Artifacts Artifacts include the ph ysical signs of an or ganization’s dominant cultur e. A compan y such as W almart that r efers t o emplo yees as “associat es” on name tags stat es a v alue. Other e xpres- sions of obser vable cultur e include displa ys of a wards such as “emplo yee of the month, ” spe - cially designat ed par king spaces, the manner of dr ess e xhibited b y emplo yees, and compan y cer emonies. A color associa ted with a compan y (IBM as “big blue”) is an observ able artif act, as are items such as the mouse ears found in Disney operations.
The Uni versity of Ha waii f ootball t eam under f ormer head coach June Jones e xhibited tr adi- tional elements of cultur e and a unique set of observ able artif acts. T raditional cultur al ele - ments included tr ophies on displa y f or indi viduals and t eams in the tr aining f acility, signs on displa y str essing the importance of t eamwork, and pr actice rituals that ar e the same f or f ootball t eams acr oss the country . The t eam’s observ able artif acts ar e f ound in its inclusion of Ha waiian cultu re. The coaches w ear Ha waiian shirts during g ames t o r eflect the local cultur e.
Espoused Values Most or ganizations ha ve guideposts that e xpress the primary belief s of the leadership gr oup. Espoused values ar e the e xplicitly stat ed v alues and norms that ar e f ound in or ganizations. The espoused v alues of Honest T ea include an emphasis on sustainability and a commitment t o helping communities. Espoused v alues are aspir ations r ather than outcomes. A t times, the ambitions ar e not achie ved. When a compan y’s leadership t eam e xpresses the desir e t o hir e, tr ain, and pr omote a mor e di verse w orkforce, an espoused v alue e xists. When the same com - pany does not f ollow thr ough with hiring decisions dedicat ed t o that v alue, it r emains simpl y an aspiration.
Enacted Values The v alues and norms e xhibited as emplo yee and mana gerial beha viors ar e enact ed values, or r eadily observ able acts that r eflect the or ganization’s cultur e. As an e xample, cust omer service phone r epresentatives at Zappos.com r eceive constant r eminders about the v alue of a quality int eraction with the compan y. As a r esult, w hen a cust omer calls looking f or a specific pair of shoes, and Zappos.com does not ha ve the it em in st ock, the service r epresentative pr o- vides the names of other companies that mig ht ha ve a pair . CEO T ony Hsieh (2010) belie ved that , e ven thoug h a sale has been lost b y not trying t o entice the cust omer t o s witch t o a dif- f erent pair of shoes, the long-t erm lo yalty will be w orth f ar mor e. Emplo yees that enact that v alue achieve access to greater rewards in the Zappos.com system.
\251 2017 Bridgepoint Education, Inc. All rights reserved. Not for resale or redistribution. Understanding Organizational Culture Section 2.1 The combinat ion of observ able artif acts, espoused v alues, and enact ed v alues can cr eate r ole clarity f or an emplo yee. R ole clarity e xists w hen a person has a clear understanding of his or her function in the or ganization and ho w t o complet e all assigned task s. R ole clarity means, “I kno w w hat I’m supposed t o be doing. ” The r eminders that come fr om seeing observ able artif acts, hear ing espoused v alues, and carrying out enact ed v alues gener ates a gr eater sense of clarity.
Benefits of Positive Cultures Company leaders enjo y distinct ad vantages w hen an or ganization e xhibits a positi ve cultur e. P ositive cultures ar e demo cratic and pr ogressive. The y nurtur e and v alue the contributions of members. P ositive cultur es t end t o be mor e fle xible and adaptable, making the or ganiza- tion bett er able t o meet the challenges of a d ynamic w orld (Benn, 2011). Or ganizational lead - ers ha ve v ested int erests in trying t o build positi ve cult ures o ver time. This is especiall y true in dynamic industries, such as high-tech, entertainment, services, and others.
Some studies suggest that cultur e can pla y a lar ger r ole in emplo yee moti va- tion than pa y (Giff ord, Zammut o, Good- man, & Hill, 20 02). Or ganizational cul- tur e can help managers r each their goals w hile helping emplo yees adapt t o compan y lif e. The benefits of a posi- ti ve cultur e include stability , emplo yee self-management , and assistance in int egrating new emplo yees int o the w orkplace. Stability In a positi ve cultur e, certain elements r emain constant and r eliable e ven in an e ver-changing w orld. Sprint and V erizon oper ate in a r apidly changing and e volving industry .
A positi ve cultur e within these corpor ations, w hich emphasizes int er- dependence of v arious locations along with a sense of belonging, mig ht be helpful in such a tur bulent environment. Employee Self-Management In a positi ve cultur e, members ma y be willing t o set aside personal int erests t o help the or ga- nization succeed. Self-mana gement originat es at tw o le vels. First , str ong, positi ve cultur es cr eate certain norms. F ailure t o f ollow these norms r esults in social pr essure t o conf orm; those w ho do ar e accept ed and those w ho do not mig ht encount er caustic comments or ostr a- cism fr om peers. If the nor m imposes a ban on pr ofanity, f or e xample, someone w ho con - stantly violates the rule faces rejection by peers. Monkeybusinessimages/iStock/Thinkstock A positive work culture provides employees with a sense of comfort and security that promotes stability and successful working relationships.
\251 2017 Bridgepoint Education, Inc. All rights reserved. Not for resale or redistribution. Transmitting Culture Section 2.2 The sec ond le vel of self-management comes fr om within the person. Most people ha ve a natu- r al desir e t o be accept ed b y co workers. Man y go a st ep further and wish t o please others. A biding by cultural constraints can help achieve these goals.
The benefits t o managers include less time enf orcing the compan y’s discipline s ystem. It becomes easier t o complet e perf ormance appr aisals in a positi ve f ashion, b y concentr at- ing on w ork-related beha viors r ather than social acti vities. A positi ve en vironment in w hich emplo yees e xhibit self-management also in vites bett er r elationships betw een supervisors and subordinates.
Integrating New Employees Positive cultur es oft en mean that w orkers f eel comf ortable and secur e. The “new gu y” is not thr eatening; thus, incoming emplo yees ar e mor e r eadily accept ed and trust can be built mor e quickl y. The benefit t o management will be less time tr aining and socializing new w orkers. The benefit t o the w orker will be a much mor e comf ortable and pleasant tr ansition int o the new workplace role. This benefit receives greater attention in the next section of this chapter.
2.2 Transmitting Culture Culture is tr ansmitted in a v ariety of w ays. Meetings, mailings, and other communications e xpress cultur al v alues, such as the stat ement “Quality is Job 1, ” a per vasive phr ase r epeated in F ord Mot or C ompany paperw ork. R ole modeling and coaching pr ocesses instruct emplo yees about the firm ’s cor e v alues. One viewpoint of cultur e suggests that se ven char acteristics, as a gr oup, e xpress the essence of an or ganization’s cultur e (O’R eilly, C hatman, & C ampbell, 1991): 1. Degr ee of encouragement of innovation and risk-taking.
2. Attention to detail and precision.
3. Outcome orientation.
4. People orientation.
5. Team orientation. Comprehension Exercise 1. The core values shared by a majority of an organization’s members represent the a. pervasive culture.
b. overall culture.
c. dominant culture.
d. primary subculture.
2. The explicitly stated values and norms that are found in organizations are a. organizational artifacts.
b. espoused values.
c. enacted values.
d. visible culture. Answers: 1) c 2) b \251 2017 Bridgepoint Education, Inc. All rights reserved. Not for resale or redistribution. Transmitting Culture Section 2.2 6. Level of aggressiveness and competitiveness.
7. Emphasis on stability and the status quo.
The degr ee of encouragement of innovation and risk-taking identifies an or ganization’s lead - ership philosoph y r egarding such acti vities. In companies w here risk -taking is punished or ignor ed, the cultur e tak es on a diff erent hue fr om one in w hich inno vative successes ar e hailed and e ven f ailed att empts r eceive r eassurance and r ecognition. Consequentl y, the r oles pla yed b y members of an or ganization that does not embolden inno vation will be diff erent fr om the r oles pla yed b y members of an or ganization that encour ages original thinking and actions. The organization’s reward system normally reflects which approach fits with its culture.
Attention to detail and precision is r eflected b y management’s attitudes t oward methods used t o complet e task s. As a simple e xample, the degr ee of t olerance f or def ects and r eturned goods influences supervisory pr ocesses and w orker attitudes as it ems ar e made or services ar e r endered. A compan y that pr ovides painting and other int erior w ork mig ht emphasize lo w-prices in bids and the bu yer mig ht e xpect lesser quality as a r esult. This in turn w ould aff ect how employees perform their jobs and feel about company expectations.
Outcome orientation r efers t o a f ocus on r esults r ather than methods. F or e xample, salespeo - ple ma y be encour aged t o “a ggressively” attr act new cust omers; ho wever, the actual methods indi viduals chose t o achie ve that goal ma y diff er. In essence, att ention is gi ven t o the out come r ather than any specific process or technique.People orientation appears w hen or ga- nizational lea ders mak e it clear that v aluing emplo yees is a k ey part of the compan y’s cul ture. Emplo yees quickl y pick up on situations in w hich man - agement’s appr eciation of them is gen - uine and those in w hich the y and their w ork are onl y paid lip service. In firms w here management trul y places v alue on emplo yees, those seeking t o mo ve up in the r anks quickl y learn that such an orientation is necessary and will be noticed.
A t eam orientation will also be tr ans- mitted b y those in char ge and at hig her r anks. Firms such as Zappos.com, South west Air lines, and Cost co mak e it clear that not onl y ar e indi vidual people r espected, but also that t eamwork is e xpected and r ewarded. Consequentl y, cultur al norms r egarding t eam-oriented beha viors emer ge, such as “pit ching in ” and helping in dif- ficult si tuations and finding w ays t o place the good of the gr oup abo ve one’s o wn int erests. F urther, doing so will be noticed and rewarded by higher level managers.
Aggressiveness and competitiveness dominat e the cultur es of some or ganizations. Man y leg al firms, f or e xample, ha ve been sho wn t o f avor the most aggr essive and competiti ve la wyers age fotostock/age footstock/SuperStock With leadership that places employees first, customers second, and shareholders third, Southwest is a primary example of an organization that is team oriented.
\251 2017 Bridgepoint Education, Inc. All rights reserved. Not for resale or redistribution. Transmitting Culture Section 2.2 when off ering partnership and other benefits. A competiti ve cultur e does not necessaril y mean that managers will al ways f ail t o r ecognize and appr eciate emplo yees and t eam-related eff orts. An indi vidual can be competiti ve and a t eam pla yer at the same time. Con versely, an o verly-aggressive indi vidual w ho hurts the t eam and the o verall or ganization will also be not ed b y management and oft en counseled that such beha viors do not fit with the compan y’s goals.
A cultu ral emphasis on st ability and the st atus quo ma y f avor some or ganizations and w ork ag ainst the int erests of others. F or man y y ears, the bank ing industry w as typified b y a str ong emphasis on the appear ance and maint enance of the status quo, with impr essive buildings and w ell-dressed emplo yees inside. When pr essures fr om competiti ve f orces thr ough pr od- ucts such as online banking and other sour ces emer ged, the priority of maintaining the status quo may have slowed the ability of some banks to effectively respond. In all these instances, cultur al tr ansmission tak es place as part of the socialization pr ocess w hen an emplo yee or person joins and learns about a compan y or or ganization. Or ganiza- tional st ories and other acti vities help tr ansmit and r einforce cultur e t o members o ver time. Managers r einforce cultur al v alues thr ough public stat ements, thr ough ad vice and counsel t o indi vidual w orkers, via perf ormance appr aisal r atings, and thr ough the f ormal and inf ormal or ganizational reward systems. Socialization Phases Within the fie ld of or ganizational beha vior, socialization is the pr ocess of learning, int er- nalizing, and assimilating an or ganization’s v alues. P art of socialization includes learning the or ganization’s cultur e. Socialization pr ograms r ange fr om simple int eractions betw een emplo yees t o hig hly de veloped s ystems. F or e xample, San yo’s orientation pr ogram places new emplo yees int o cir cumstances in w hich the y li ve and eat t ogether f or 5 months at a compan y-sponsored r esort. Among the it ems new w orkers learn ar e ho w t o dr ess, speak, and e ven gr oom themsel ves. The compan y int ends t o de velop k aisha senshi, or corpor ate w ar- riors, through these efforts (Frujstuck, 2007).
The or ganizational socialization pr ocess includes thr ee phases (F eldman, 1984), w hich ar e displa yed in T able 2.1. The first , anticipat ory socialization, in volves the learning that tak es place prior t o joining an or ganization. The first stage ma y also be r eferred t o as pr e-arrival. P otential applicants ma y learn about a compan y fr om members of their f amilies, fr om encoun - ters at school, fr om social media, or fr om visits with members of a pr ofession. Aft er r eceiv- ing neg ative publicity f ollowing the sale of taint ed f ood it ems, the leadership of the Chipotle r estaurant chain r esponded b y enacting an acti ve pr ogram t o emphasize car eful pur chasing pr ograms f or f ood it ems and cleanliness b y all emplo yees and managers (Vinjamuri, 2015). This emphasis tak es place during r ecruiting and selection pr ocesses f or new emplo yees, or during the pre-arrival stage.
The sec ond stage of or ganizational socialization, the en counter, tak es place as the indi vidual learns mor e about the compan y. The w orker begins t o compar e his or her e xpectations about the firm ’s cult ure with r eality. Emplo yee tr aining pr ograms ar e a vailable t o emphasize new aspects of a cultur e as w orkers learn their jobs. T raining e xtends t o the supervisor in char ge as well as the human resource department.
\251 2017 Bridgepoint Education, Inc. All rights reserved. Not for resale or redistribution. Transmitting Culture Section 2.2 The thir d stage, change and acquisition, also called the metamorphosis stage, occurs as the emplo yee mast ers the skills and r ole perf ormance needed t o succeed in the or ganization. The change ma y include mo ving personal v alues and w orking methods closer t o those imposed b y the or ganization. A t that time, observ ance of r ole models and coaches becomes a po werful influence.
Zappos.com CEO T ony Hsieh had his office cubicle str ategically placed at the cent er of the w ork zone. The message w as clear: He v alued his peers and wished t o be accessible. T op managers can seek t o change a cultur e b y pr oviding visible messages about w hat must be done.
Table 2.1: Stages of organizational socialization Stage New employee action or evaluation Anticipatory socialization Anticipating new employer expectations Anticipating employer needs for skills and abilities Anticipating employer’s sensitivity to one’s needs and values Encount er Seeking role clarity Managing group interactions Balancing life and work Change and acquisition Completing role demands as required Mastering tasks Internalizing cultural norms and values Forms of Socialization Individual companies ha ve personalities, and each r esponds t o its en vironment in diff erent w ays. Int ernal functions ar e managed in v arious w ays as w ell. Compan y leaders can pr oac- tively cr eate and fine-tune the socialization pr ocess. Doing so in volves a series of decisions about how to engage with new employees (Van Maanen, 1978; Schein, 1990).
Formal Versus Informal Socialization Formal socialization in volves a new emplo yee eng aging in a clear ly designat ed, separ ate socialization pr ogram. Normall y f ormal socialization and learning tak e place somew here a way fr om the job; as part of orientation or new emplo yee tr aining s ystems. Inf ormal social - ization and learning occur as the emplo yee r eceives at tention fr om co workers and supervi- sors. Questions ar e ans wered and suggestions ar e gi ven as t o ho w the new emplo yee can eff ectively fit in. F ormal and inf ormal socialization and learning do not pr esent an either–or scenario.
Both can occur as the person enters the organization.
Individual Versus Collective Socialization Individual soc ialization tak es place as a person r eceives pri vate instruction or tr aining. Col - lective socializ ation occurs in gr oups. The benefit of indi vidual att ention will be personalized instruction tailor ed t o the person ’s unique needs. The ad vantage of collecti ve socialization can be that new employees reinforce each other as the program proceeds.
\251 2017 Bridgepoint Education, Inc. All rights reserved. Not for resale or redistribution. Transmitting Culture Section 2.2 Fixed- Versus Variable-Advancement Socialization Fixed-advancement socializ ation in volves all emplo yees spending the same amount of time on each stage of tr aining. Pr omotions or ad vancements t o additional new stages occur on a fix ed timetable.
V ariable-advancement socialization t ends t o be goal- or objecti ve-based. Aft er an emplo yee complet es a stage of tr aining and adjustment t o the compan y, the indi vidual mo ves on t o the ne xt goal. V ariable-advancement socialization w orks w ell w hen tr aining indi viduals w ho r equire additional or special att ention. Fix ed-advancement s ystems ar e used in cir cum- stances in which all employees are expected to learn and adjust in comparable time frames.
Serial Versus Random Socialization Serial socialization places emplo yees with v arious staff members f or specific tr aining pr o- grams. That w ay, the new w orkers learn fr om e xperts. R andom socialization occurs w hen new emplo yees ar e not pair ed with specific staff members. Inst ead, indi viduals seek ad vice and tr aining as the y see fit. Serial socialization will be used when specific skill sets or knowl- edge ba ses ar e r equired. In that w ay, the compan y has gr eater assur ance that new emplo y- ees ha ve r eceived pr oper tr aining. R andom socialization mat ches emplo yees with gener alists w ho perform numerous tasks or carry out a variety of activities.
Divestiture Versus Investiture Socialization Divestiture socialization r equires “unlearning” of perso nal char acteristics and habits t o fit in with others in the or ganization. Military tr aining in volves the classic di vestiture appr oach. In vestiture socialization assumes the indi vidual possesses unique tr aits and char acteristics that ma y be of v alue t o the or ganization. One can inject his or her o wn personality int o the job.
Some of the af orementioned f orms of socialization do not r epresent mutuall y e xclusive appr oaches. F ormal and inf ormal socialization can both tak e place. Emplo yees can be social - ized indi vidually at times and collecti vely at others. Socialization can occur seriall y and r andomly.
Two of the methods list ed abo ve in volve choices. Emplo yees can r eceive either fix ed or v ariable socialization pr ograms. Emplo yees will be socialized either thr ough di vestiture or in vestiture.
As mos t human r esources managers will att est, first impr essions matt er. New emplo yees will quickl y disco ver w hether the y ha ve made appr opriate w ork choices. Some will disco ver the fit cannot and will not exist. They can then move on to more favorable working situations.
Mentoring and Socialization A mentor is an indi vidual w ho assists a less-seasoned emplo yee. Ment oring in volves se veral acti vities, including list ening t o and r eviewing ideas, intr oducing the ment ee or pr otégé t o k ey indi viduals w ho mig ht off er help, sho wing the person ho w t o act and perf orm the job, and pr oviding emotional support . Ment oring s ystems can be f ormal or inf ormal. F ormal s ystems assign ment ors t o indi viduals. Inf ormal appr oaches allo w the r elationships t o f orm natur ally.
\251 2017 Bridgepoint Education, Inc. All rights reserved. Not for resale or redistribution. Transmitting Culture Section 2.2 A portion of ment oring in volves int erpreting the or ganization’s cultur e t o the pr otégé. Other acti vities include pr oviding e xposure and visibility t o the ment ee, pr otecting the indi vidual fr om internal threats and competitors, helping with assignments, and providing friendship.
Individuals with ment ors ha ve an important car eer ad vantage. Some sour ces suggest de vel- oping sets of ment ors, or ment or netw orks. T o do so in volves taking the time t o de velop close r elationships with di verse or ganizational members w ho can off er assistance and guidance. Sho wing appr eciation f or the counseling and support gi ven helps continue a str ong ment or– protégé relationship.
The soc ialization pr ocess r epresents a k ey opportunity t o de velop quality emplo yees. It can also be used t o support or ganizational change and a mor e ethical cultur e, as will be discussed lat er in this chapt er. Eff ective managers pa y att ention t o all aspects of the socialization pr ocess. The Role of Stories One important w ay members (espe- ciall y managers) tr ansmit cultur e is thr ough st ories and or ganizational m yths. As not ed ear lier, cultur e oft en begins with and r elies on st ories and m yths about the compan y’s f ounder and its curr ent leading figur es—the firm ’s her oes and her oines (Gor- don, 19 93; Schein, 1985). As part of the r ecruiting pr ocess, pr ospective emplo yees ar e oft en t old about the or ganization’s philosoph y, w hich—as is the case with Honest T ea, W almart, South west Air lines, and other companies—can include the or ganiza- tion’s origin story. St ories can also tak e shape in the ans wers emplo yees hear t o their questions. As one begins w orking in a compan y, asking questions about the or ganization is common. Man y of the ques - tions will be about cultur al issues, including w hat is important and w hy. Some of the mor e common questions new employees ask include the following: • Which rules are important?
• What will get me fired?
• Will the company help me if I must move?
• How does the company view risk taking?
• Can the little person rise to the top?
• Is the big boss human? Hero Images Inc./Hero Images/SuperStock Learning a company’s stories can help employees become familiar with aspects of the company’s culture, such as dualities, equalities and inequalities, and events.
\251 2017 Bridgepoint Education, Inc. All rights reserved. Not for resale or redistribution. Transmitting Culture Section 2.2 Obviously, the questions will pr obably not be stat ed in these e xact w ords, but in gener al, emplo yees w ant t o kno w if t op management is appr oachable. The y w ant t o understand the discipline s ystem and w here the “line” is r egarding t ermination. The y ask about the amount of support the y will r eceive and w hether the compan y r egards f airness and equality as impor- tant values. The answers they receive take the form of stories, which serve several purposes.
Stories Explain Dualities Stories pr esent the most positi ve and neg ative v ersions of ans wers t o questions about cultur e. When questioning w hether the leaders at the t op ar e appr oachable (Is the big boss human?), a new employee might receive two answers at either end of the spectrum: One person’s account: “I saw this guy say ‘hello’ to the CEO, and he bit his head off !” Another perso n’s account: “I sa w this gu y in the par king lot with a flat tir e, and the CEO st opped, took off his suit coat, and helped him put on the spare.” Both st ories ma y be true. In the first instance, the CEO w as in a bad mood and in a hurry . The st oryteller ma y not kno w that the CEO lat er f ound the same emplo yee and apologized pr ofusely.
Stories Explain Equality and Inequality Stories also e xplain per ceived issues of equality and inequality . When new emplo yees ask w hether ther e is r oom f or gr owth in the or ganization, the y ma y ag ain r eceive tw o entir ely diff erent responses, depending on whom they ask: “Sheila has been our best accountant f or the past 10 y ears. Thr ee diff erent times she applied f or the accounting manage r job and got passed o ver. Some gu y al ways ended up getting the job.” “Jose Mor ales is such a cool dude. E veryone lik es him. No one w as surprised w hen he got pr o- moted, even though he had only been here a couple of years.” St ories ar e used t o e xplain w hen emplo yees ha ve been tr eated f airly and w hen the y ha ve not .
Stories Explain Company Events and the Past Stories e xplain social dr amas, such as w hy someone w as t erminated. A st ory has been t old about the pr esident of a small uni versity in the Mid west, w ho, despit e w arnings b y se veral people, including a w eather e xpert, decided t o hold gr aduation cer emonies out doors. As the commencement pr ogram beg an, a massi ve r ainfall, complet e with po werful lig htning, int er- rupted the pr oceedings and dr enched the entir e audience. The ne xt da y the Boar d of R egents t erminated the pr esident. As the st ory goes, “He w as fir ed f or holding gr aduation in a thun - derstorm.” In truth, the st ory pr ovides a portr ayal of an authoritarian leader w ho w ouldn’t list en to good advice.
\251 2017 Bridgepoint Education, Inc. All rights reserved. Not for resale or redistribution. Transmitting Culture Section 2.2 Stories Create and Emphasize Heroes and Heroines Founding st ories cr eate m ythologies about the entr epreneur that beg an the compan y. An or ganizational her o or her oine pr ovides the ultimat e r ole model f or emplo yees t o f ollow. A common her o st ory t old about W almart f ounder Sam W alton f ocuses on his “e veryman” char- act eristics. W alton w as f amous f or dri ving t o st ores in an old pick up truck and pit ching in t o help associat es unload deli very truck s and st ock shel ves. As the y ears unf old, undoubt edly her o st ories will be t old about Mar k Z uckerberg’s F acebook f ounding ad venture as w ell as T witter’s Biz Stone, Jack Dorsey, Evan Williams, and Noah Glass.
Stories Help Identify Cultural Forms Studies of or ganizational cultur e suggest that f our cat egories ma y e xist. Each one dictat es diff ering beha viors t o members. The f our f orms ar e disp layed in T able 2.2. St ories t old within the or ganization help tr ansmit these char acteristics t o new members. Outside observ ers ma y also be able t o somew hat understand the cultur e pr esent in the or ganization, w hich mig ht in turn influence the decision to apply for a position with the company.
Table 2.2: Forms of culture NameCharacteristics Clan Internally focused, family-type, high levels of collaboration, emphasis on in volvement, commitment, consensus, decentralized management Hierarchy Internally focused, driven by strong control mechanisms, standardized rules, f ormal procedures, centralized management, stable, inflexible A dhocracy Externally focused, values flexibility, emphasis on innovation, encourages risk taking, decentralized management Mar ket Strong external focus, driven by competition, values stability and control, cust omer-centered, centralized management Source: Adapted from K. S. Cameron, R. E. Quinn, J. Degraff, & V. Thakor (2006). Competing values leadership. Northampton, MA:
Edward Elgar.
Employees in a clan cultur e, such as South west Air lines, enjo y positi ve r elationships with peers.
Emplo yees in a hier archy cultur e, such as a police f orce, quickl y learn that rules and pr ocedures ar e important . In an adhocr acy cultur e, trying something that doesn ’t w ork out will ha ve diff erent consequences than it w ould in other companies. Man y Silicon V alley com - panies e xhibit adhocr acy cultur es. In a mar ket cultur e, such as aut omobile or insur ance sales, pa y r aises, pr omotions, and r ewards ar e lik ely t o be based on visible perf ormance measur es r elated to sales and customer service.
Over time, emplo yees learn about their compan y’s cul ture based on w hat is r ewarded, and w hat is punished. Questions, ans wers, m yths, st ories, and jar gon all become part of the or ga- nizational e xperience. When the person mat ches the or ganizational type, the fit pr oduces the best chances for individual success. Comprehension Exercise 1. Seeking role clarity, managing group interactions, and balancing life with work are part of which aspect of organizational socialization?
a. anticipatory socialization b. encounter c. change and acquisition d. evaluative socialization 2. Which form of culture has an external focus, is strongly driven by competition, and is customer-centered and likely centralized in its structure?
a. clan b. hierarchy c. adhocracy d. market Answers: 1) b 2) d \251 2017 Bridgepoint Education, Inc. All rights reserved. Not for resale or redistribution. Changing an Organization’s Culture S ection 2.3 2.3 Changing an Organization’s Culture “We need t o change the cultur e ar ound her e.” This type of stat ement is oft en made w hen a new CEO or pr esident arri ves. Declar ations such as these ar e mor e common during a tr ansi- tion in w hich a crisis has occurr ed or is taking place. Classic st ories of cultur al change include the eff orts of Lee Iacocca at Chry sler in the 1980s and Jack R owe at A etna in the ear ly 2000s. Iacocca had t o con vince an entir e corpor ation t o o verhaul all of its pr oduct lines b y eliminat- ing near ly 500 Chry sler pr oducts w hile designing new types of cars f eaturing fr ont-wheel dri ve and a smaller chassis t o meet the needs of a changing aut omotive en vironment. R owe had t o mak e peace with a series of frustr ated health car e pr oviders and r estore mor ale in a compan y that w as losing mone y e very da y. Both succeeded b y changing the cultur es of their or ganizations.
Two se ts of cir cumstances typicall y demand cultur al change. The first is w hen an or ganiza- tion has eng aged in irr esponsible or illeg al acti vities and a mor e ethical cultur e must be built . The sec ond type of pr essure f or cultur al change r esults w hen a crisis of some sort , including a d ynamic mar ketplace, a major err or, or damage caused b y an uncontr ollable f orce, such as an economic crisis, takes place.
The f ollowing OB in Action bo x describes ho w an unethical cultur e cr eates significant pr ob- lems f or indi vidual emplo yees, the o verall institution, and e ven the lar ger society in w hich the or ganization operates. Stories Create and Emphasize Heroes and Heroines Founding stories create mythologies about the entrepreneur that began the company. An organizational hero or heroine provides the ultimate role model for employees to follow. A common hero story told about Walmart founder Sam Walton focuses on his “everyman” char- acteristics. Walton was famous for driving to stores in an old pickup truck and pitching in to help associates unload delivery trucks and stock shelves. As the years unfold, undoubtedly hero stories will be told about Mark Zuckerberg’s Facebook founding adventure as well as Twitter’s Biz Stone, Jack Dorsey, Evan Williams, and Noah Glass.
Stories Help Identify Cultural Forms Studies of organizational culture suggest that four categories ma y exist. Each one dictates differing behaviors to members. The four forms are displayed in Table 2.2. Stories told within the organization help transmit these characteristics to new members. Outside observers may also be able to somewhat understand the culture present in the organization, which might in turn influence the decision to apply for a position with the company.
Table 2.2: Forms of culture Name Characteristics Clan Internally focused, family-type, high levels of collaboration, emphasis on involvement, commitment, consensus, decentralized management Hierarchy Internally focused, driven by strong control mechanisms, standardized rules, formal procedures, centralized management, stable, inflexible Adhocracy Externally focused, values flexibility, emphasis on innovation, encourages risk taking, decentralized management Market Strong external focus, driven by competition, values stability and control, customer-centered, centralized management Source: Adapted from K. S. Cameron, R. E. Quinn, J. Degraff, & V. Thakor (2006). Competing values leadership. Northampton, MA:
Edward Elgar.
Employees in a clan culture, such as Southwest Airlines, enjoy positive relationships with peers. Employees in a hierarchy culture, such as a police force, quickly learn that rules and procedures are important. In an adhocracy culture, trying something that doesn’t work out will have different consequences than it would in other companies. Many Silicon Valley com- panies exhibit adhocracy cultures. In a market culture, such as automobile or insurance sales, pay raises, promotions, and rewards are likely to be based on visible performance measures related to sales and customer service.
Over time, employees learn about their company’s culture based on what is rewarded, and what is punished. Questions, answers, myths, stories, and jargon all become part of the orga- nizational experience. When the person matches the organizational type, the fit produces the best chances for individual success. Comprehension Exercise 1. Seeking role clarity, managing group interactions, and balancing life with work are part of which aspect of organizational socialization?
a. anticipatory socialization b. encounter c. change and acquisition d. evaluative socialization 2. Which form of culture has an external focus, is strongly driven by competition, and is customer-centered and likely centralized in its structure?
a. clan b. hierarchy c. adhocracy d. market Answers: 1) b 2) d \251 2017 Bridgepoint Education, Inc. All rights reserved. Not for resale or redistribution. Changing an Organization’s Culture S ection 2.3 Building a More Ethical Culture The past two decades have witnessed numerous dramatic episodes of unethical individual and corporate activities. The 2008 Bernie Madoff Ponzi scheme scandal, the unethical activi- ties in financial markets, the car safety concerns from unexpected acceleration in Toyota automobiles, and the 2016 Wells Fargo scandal regarding employees creating false accounts serve as examples of the devastating impact of short-sighted, unethical actions.
Many company leaders have concluded that an ethical culture provides guidance to employ - ees and managers that will keep a company on a better course. Socially responsible and ethi- cal companies minimize negative actions such as cheating on taxes, selling defective products, discriminating ag ainst various employee groups, and breaking other laws. Socially respon- sible and ethical companies engage in positive actions including fair treatment of workers, community relations efforts, and other altruistic activities.
The benefits of ethical cultures include employee loyalty and commitment, a better standing in the community, and greater compassion from customers and the government. For these reasons, organizational change dedicated to building an ethical culture and environment is a worthwhile managerial goal. Many of the methods to change a culture overlap with tactics used to build an ethical culture.
Visible Statements of Commitment To build a more ethical culture, leaders must put the goal in writing. Many or ganizations have updated company mission statements to include clauses about the importance of social responsibility, ethical behaviors, and closely associated goals such as sustainability. Such pronouncements deserve highly visible platforms, so that employees and outside publics are made well aware of the intention to change or improve the company’s ethical culture. Two examples include the following:
“We are committed to offering high-quality, ethically purchased and responsibility produced products.” — Starbucks “We envision a community of responsible and educated citizens who are environmentally conscious, practice social responsibility in their daily lives and inspire others to do the same.” — Shangri-La Hotels and Resorts Establish Ethical Expectations An or ganizational code of ethics provides one venue for clearly communicating ethical guide- lines. The standards can be based on those established in professional ethical codes, such as those followed by physicians, accountants, and academics. Company codes should spell out key values and ethical rules specific to the type of organization. The AT&T code of ethics con- tains the following elements, which are common to many such documents:
• Values statement prioritizing honest and ethical conduct • Conflicts of interest statement OB in Action: Sexual Harassment in Academia Unethical cultur es ma y be f ound in ar eas other than a f or-profit w orkplace. A CNN r eport (Ganim, 2016) e xamined instances of se xual har assment in the academic w orld, particular ly in the field of astr onomy. Alessondr a Springmann, a r ocket scien- tist at the Uni versity of Arizona, not ed that se xual har assment extended beyond her own field: W e see it in anthr opology, w e see it in phi - losophy, w e see it in ph ysics, w e see it in the humanities, w e see it in the social sciences. W e see it in engineering in particular . Astr on- omy just happened t o be, sort of, the first t o get attention. (para. 5) Apparently, the pr oblem r emains perv asive. A sur- v ey indicat es that 71% of r espondents r eported the y had been se xually har assed w hile eng aged in field w ork, and 25% said the y had been se xually assault ed. U .S. R ep. Jackie Speier of Calif ornia sponsor ed legislation that w ould f orce institutions r eceiving f ederal gr ant mone y t o r eport har assment in vestigations. She ar gued that such a mo ve is necessary because uni versity lead - ers continue to fail to report the actions of their faculties.
These cultur es cr eate e xtra har dships f or f emale students and f aculty. A w oman w ho accuses a male f aculty member of such an unethical act w ould lik ely ha ve t o abandon her r esearch and y ears of har d w ork. As one person not ed in the r eport, doin g so can der ail a car eer bef ore it e ven starts.
Unfortunately, the cultur es of man y institutions t end t o pr otect older , t enured male f aculty members, e ven w hen y ounger, brilliant f emales r eport incidents. Ov er time, this can dri ve w omen a way fr om car eers in S TEM (science, t echnology, engineering, and mathematics). This cultur al pr oblem can be made w orse b y institutional f actors, such as t enure, w hich mak e it difficul t t o t erminate a pr edator, especiall y one w ho has r eceived substantial funding f or r esearch gr ants. Without an institutional r esponse, this tr agic pr oblem ma y continue t o r emain unresolved. R eflection and Application Questions1. How might this institutional cultural problem be transmitted to new male and female students and faculty?
2. What potential long-term effects might result if such a hostile environment culture continues to persist at a university?
3. How could university governance (president, regents, faculty senate) work to change this cultural flaw? Sbhaumik/iStock/Thinkstock Despite many public scandals, academic institutions across the country struggle to adequately address sexual harassments and assault claims.
\251 2017 Bridgepoint Education, Inc. All rights reserved. Not for resale or redistribution. Changing an Organization’s Culture S ection 2.3 Building a More Ethical Culture The past tw o decades ha ve witnessed numer ous dr amatic episodes of unethical indi vidual and cor porate acti vities. The 2008 Bernie Madoff P onzi scheme scandal, the unethical acti vi- ties in financial mar kets, the car saf ety concerns fr om une xpected acceler ation in T oyota aut omobiles, and the 2016 W ells F argo scandal r egarding emplo yees cr eating f alse accounts serv e as examples of the devastating impact of short-sighted, unethical actions.
Many compan y leaders ha ve concluded that an ethical cultur e pr ovides guidance t o emplo y- ees and manag ers that will keep a compan y on a bett er course. Sociall y r esponsible and ethi - cal companies minimize neg ative actions such as cheating on tax es, selling def ective pr oducts, discriminating ag ainst v arious emplo yee gr oups, and br eaking other la ws. Sociall y r espon- sible and ethical companies eng age in positi ve actions including f air tr eatment of w orkers, community relations efforts, and other altruistic activities.
The benefits of ethical cultu res include emplo yee lo yalty and commitment , a bett er standing in the community , and gr eater compassion fr om cust omers and the go vernment. F or these r easons, or ganizational change dedicat ed t o building an ethical cultur e and en vironment is a w orthwhile managerial goal. Man y of the methods t o change a cultur e o verlap with tactics used to build an ethical culture.
Visible Statements of Commitment To build a mor e ethical cultur e, leaders must put the goal in writing. Man y or ganizations ha ve updat ed compan y mission stat ements t o include clauses about the importance of social r esponsibility, ethical beha viors, and closel y associat ed goals such as sustainability . Such pr onouncements deserv e hig hly visible platf orms, so that emplo yees and outside publics ar e made w ell a ware of the int ention t o change or impr ove the compan y’s ethical cultur e. T wo e xamples include the following:
“We ar e committ ed t o off ering hig h-quality, ethicall y pur chased and r esponsibility pr oduced pr oducts.” — Starbucks “We en vision a community of r esponsible and educat ed citizens w ho ar e en vironmentally conscious, pr actice social r esponsibility in their dail y li ves and inspir e others t o do the same. ” — Shangri-La Hotels and Resorts Establish Ethical Expectations An or ganizational code of ethics pr ovides one v enue f or clear ly communicating ethical guide - lines. The standar ds can be based on those established in pr ofessional ethical codes, such as those f ollowed b y ph ysicians, accountants, and academics. Compan y codes should spell out k ey v alues and ethical rules specific t o the type of or ganization. The A T&T code of ethics con - tains the following elements, which are common to many such documents:
• Values statement prioritizing honest and ethical conduct • Conflicts of interest statement OB in Action: Sexual Harassment in Academia Unethical cultures may be found in areas other than a for-profit workplace. A CNN report (Ganim, 2016) examined instances of sexual harassment in the academic world, particularly in the field of astronomy. Alessondra Springmann, a rocket scien- tist at the University of Arizona, noted that sexual harassment extended beyond her own field: We see it in anthropology, we see it in phi- losophy, we see it in physics, we see it in the humanities, we see it in the social sciences. We see it in engineering in particular. Astron- omy just happened to be, sort of, the first to get attention. (para. 5) Apparently, the problem remains pervasive. A sur- vey indicates that 71% of respondents reported they had been sexually harassed while engaged in field work, and 25% said they had been sexually assaulted. U.S. Rep. Jackie Speier of California sponsored legislation that would force institutions receiving federal grant money to report harassment investigations. She argued that such a move is necessary because university lead- ers continue to fail to report the actions of their faculties.
These cultures create extra hardships for female students and faculty. A woman who accuses a male faculty member of such an unethical act would likely have to abandon her research and years of hard work. As one person noted in the report, doing so can derail a career before it even starts.
Unfortunately, the cultures of many institutions tend to protect older, tenured male faculty members, even when younger, brilliant females report incidents. Over time, this can drive women away from careers in STEM (science, technology, engineering, and mathematics). This cultural problem can be made worse by institutional factors, such as tenure, which make it difficult to terminate a predator, especially one who has received substantial funding for research grants. Without an institutional response, this tragic problem may continue to remain unresolved. Reflection and Application Questions 1. How might this institutional cultural problem be transmitted to new male and female students and faculty?
2. What potential long-term effects might result if such a hostile environment culture continues to persist at a university?
3. How could university governance (president, regents, faculty senate) work to change this cultural flaw? Sbhaumik/iStock/Thinkstock Despite many public scandals, academic institutions across the country struggle to adequately address sexual harassments and assault claims.
\251 2017 Bridgepoint Education, Inc. All rights reserved. Not for resale or redistribution. Changing an Organization’s Culture S ection 2.3 • Disclosure requirements • Compliance requirements • Reporting and accountability statement • Corporate opportunities statement • Fair dealing commitment • Guidelines outlining the protection and proper use of corporate assets Provide a Positive Role Model Company e xecutives ar e closel y w atched b y members of the or ganization. Those w ho cut corners and become in volved in questionable actions set a standar d of beha vior that will be detrimental t o the or ganization. Open lines of communication and tr ansparent management pr actices communicate the importance of ethical actions.
Cultural r ole modeling tak es place w hen leaders addr ess both int ernal and e xternal publics. These indi viduals o vertly or subtl y indicat e the v alues of the or ganization t o w hich the y sub - scribe.
As an e xample, cons ider the public persona of Indr a Noo yi, CEO of P epsiCo. She has achie ved substantial r ecognition f or her caring attitude, her insist ence on di versity in the or ganization, and her willingness t o inno vate. All the w hile, she occasionall y w ears tr adi- tional Indian attir e t o w ork and encour ages emplo yees t o participat e in “bring y our child t o w ork”-type compan y e vents. Her new int erests in sustainability as w ell as turning a “snack f ood” compan y int o one off ering health y alt ernatives f or snacking has continued t o r esonate with a wide audience (Useem, 2008; Snyder, 2015).
Reward Ethical Acts and Punish Unethical Acts Ethical and unethical actions tak e place at the indi vidual and gr oup le vels. A t the indi vidual le vel, the perf ormance appr aisal pr ocess pr ovides the opportunity t o off er f eedback about a person ’s cond uct. R ewards including pa y r aises and bonuses f or meeting ethical standar ds encour age continued positi ve beha vior. Punishments, w hich can r ange fr om sanctions such as fines t o being sent home without pa y, or t ermination in e xtreme cases, send a po werful message.
Gr oups eng age in unethical acti vities such as collabo ration on padding e xpense accounts and mileage v ouchers, har assing or hazing tar geted emplo yees, and “time theft ,” w here goof- ing off or surf ing the Int ernet ar e view ed as acceptable acti vities. T o combat such pr oblems, gr oups ma y be sanctioned as a w hole, with each member r eceiving a punishment commen - surate with the person ’s in volvement. Gr oups that continue t o violat e ethical codes should be br oken up, or their leaders may need to be terminated.
Provide Help Many or ganizations pr ovide ethical counselors t o handle inquiries. Emplo yees must not f ear r etribution f or appr oaching these indi viduals. Smaller companies can off er access t o w hat ar e essentiall y ethics hotlines, w here emplo yees can pr esent ethical dilemmas and seek ad vice. Lig hthouse Services, The Co rporateCounsel.Net, and N AVEX Global, among others, pr ovide ethics hotlines.
\251 2017 Bridgepoint Education, Inc. All rights reserved. Not for resale or redistribution. Changing an Organization’s Culture S ection 2.3 As with an y other aspect of cultur e, br eaking do wn w hat w as pr esented and building in some- thing new will tak e time. T op-level managers that trul y w ant an ethical compan y must r emain committ ed to these actions to create cultural change.
The Role of Human Resources As has been sho wn alr eady in this chapt er, the socialization pr ocess begins prior t o a per- son joining an or ganization. Consequentl y, the r ole of the human r esource (HR) department becomes a k ey element in maintaining the cultur e and attr acting the best indi viduals t o join. The tr ansmission of cultur e tak es place in r ecruiting pr ograms, job descriptions, and other inf ormational pr ograms (public r elations eff orts, f or e xample) that can and should tr ansmit w hat an indi vidual mig ht e xpect w hen seeking emplo yment with or joining a compan y or or ganization. It continues as the person goes thr ough the selection pr ocess, w here eff ective HR managers once ag ain si gnal w hat t o e xpect fr om the cultur e of the or ganization. Then, as the indi vidual r eceives on- and off-the-job tr aining f or a job or r ole, socialization mo ves int o a mor e pr ominent position. Consequentl y, the t op-level management t eam r eceives ben - efits w hen it clear ly and consist ently establishes cultur al e xpectations t o the HR department , w hich in turn passes those values along to applicants and new employees.
Tactics for Changing a Culture Changing a cultur e tak es time and a gr eat deal of deliber ate eff ort. T op mana gers can utilize a series of ta ctics in the att empt t o alt er a cultur e. Each can be designed t o “upset the applecart ,” or change the status quo. Not e that changing a cultur e will be e xtremely difficult and cannot be accomplished o vernight. It will tak e time and persist ent manage- rial efforts to succeed.
Top Management Pronouncements Cultural change oft en begins with a major announce - ment. C ompany leaders can e xpress a new or ga- nizational philosoph y, r evise the firm ’s mission stat ement, or incorpor ate new v alues. W almart’s leadership had al ways emphasized the belief that emplo yees or associat es r epresented the most important constituency . F or man y y ears, the or gani- zation enjo yed an untarnished image and w as f ea- tured in a v ariety of t extbooks as a quality model t o f ollow. In the 2000s, cir cumstances changed as the compan y w as char ged with discrimination ag ainst f emale emplo yees and other unf air manage- ment pr actices. T o combat the alleg ations, W almart’s leadership str essed positi ve e xamples of emplo yment e xperiences and undert ook other pr ojects designed t o emphasize that the compan y soug ht t o be a good citizen in the community , including scholarship pr ograms and neig hborhood cleanup events. Mitrija/iStock/Thinkstock Though culture changes can happen organically, pronouncements can also be triggered by public scandals.
\251 2017 Bridgepoint Education, Inc. All rights reserved. Not for resale or redistribution. Changing an Organization’s Culture S ection 2.3 Heidi Roizen, CEO of software company Broderbund (formerly T/Maker), recently stated, Ho w y ou act—and ho w y ou r eward or punish the actions of others—will det ermine ho w e veryone else in the compan y will act . And that in turn will set the cult ure—honest or cheating, r espectful or disr espectful, friendl y or mean, trusting or mistrustful. (ReferralCandy, 2016, para. 39) Therefore, w ords, w hile important , ar e not the entir e st ory. Managerial beha viors ar e w hat emplo yees see . The y will ha ve a str ong impact on an y att empt at modifying or changing a cultur e.
Company Language Company language can be an eff ective method f or changing corpor ate cultur e. Man y y ears ago, in the 1980s, F ord’s e xecutive t eam needed t o r espond t o declining sales and f oreign competi - tion in the U .S. aut omobile mar ket. The y decided it w as important t o demonstr ate a r enewed emphasis on quality . Thus, F ord adopt ed the mott o “Q uality is Job 1. ” When a manager can disco ver the rig ht phr ase or acr onym, it can serv e as a beacon guiding cultur al change. P art of langu age change will be t o defuse neg ative commentary about the compan y and its futur e.
Workplace Redesign In the 1990s, man y of the “dot-com ” companies beg an mo ving t o open office designs f eatur- ing emplo yee spaces that could be personalized. While not e very original Int ernet compan y succeeded, it became clear that the design of the w ork space can be alt ered t o change the cultur e of an or ganization. R emoval of walls and other barriers encour ages collabor ation but decr eases pri vacy. The hig hly successful Goog le or ganization continues t o tak e ad vantage of an open w ork space and f eatures a v ariety of benefits, including e xercise r ooms, fr ee f ood, and e ven a massage pr ogram. These per ks pr ovide tan gible e vidence of the v alue placed on inno vation and emplo yee lo yalty that meshes with the design of the office. A hier archical or ganization seeking to encourage greater innovation might follow suit.
Reward System Changes Altering the r eward s ystem can pr ovide the most immediat e incenti ves f or changing beha v- iors. Companies oft en change perf ormance standar ds t o r eflect new cir cumstances. When a compan y off ers a new pr oduct, typical sales goals include identifying and capturing accounts; and pioneering selling t echniques (making contacts, cr eating new accounts) r eceive the gr eat- est r ewards (commissions and pa y r aises). Should a compan y’s new pr oduct succeed and become established in the mar ketplace, the cultur e mig ht shift t o gr eater e xpectations r egard- ing r elationship maint enance, such as t ending t o r eturned mer chandise, ans wering cust omer complaints, and keeping in personal contact with key people in customer companies. The HR department , w orking in conjunction with the mar keting/sales department , will oft en modify indicat ors of successful perf ormance and r eward those people w ho meet new r equire- ments.
The same will be true in man y int ernational e xpansions. Salespeople must r ecognize that f oreign partners w ant t o establish trust prior t o an y business tr ansaction. Ther efore, the r eward system will require adjustment to this new reality.
\251 2017 Bridgepoint Education, Inc. All rights reserved. Not for resale or redistribution. Changing an Organization’s Culture S ection 2.3 Managers ar e ad vised t o r emember that shifting perf ormance crit eria and the r ewards that f ollow ma y be met with r esistance. Hig h perf ormers r eceiving the biggest r ewards under the prior s ystem will be among the first t o become upset . It tak es time and tr aining t o eff ectively install a revised reward system.
Training Programs To eff ect change thr ough tr aining pr ograms, goals should be aligned with the desir ed cultur al shift . Man y compan y e xecutives ha ve pushed f or a r enewed emphasis on cust omer service. Firms including Ent erprise R ent-A-Car, Whole F oods, L.L. Bean, Oli ve Gar den, and Nor dstrom enjo y r eputations as being cust omer-friendly and consist ently outperf orm competit ors as a r esult. A firm kno wn f or indiff erent service could r epair its r eputation b y emphasizing the importance of cust omers in the initial stages of emplo yee tr aining, ther eby changing per cep- tions of customers in the company’s culture.
Role modeling and coaching can then r einforce tr aining messages. When successful and hig her-ranking emplo yees displa y the beha viors that mat ch the new cultur al f eature, others will follow. By connecting the reward system to such behaviors, the impact increases.
Systems and Procedures Cultural change can be encour aged b y alt ering w ork s ystems. A hier archical compan y seeking t o beco me mor e fle xible can intr oduce fle xtime w ork schedules t o allo w emplo yees fr eedom t o come and go as needed. The Zehnder ad vertising agency in New Or leans has installed a policy called V AN, w hich stands f or “v acation as neede d.” Owner Jeff Zehnder e xplains that his idea of a str ong cultur e is one in w hich people ar e tr eated as adults. So long as the w ork is complet ed on time, he trusts that his emplo yees kno w ho w t o best use their talents and ener- gies (J. Zehnder, personal communication, February 17, 2010).
Goal-Setting Goals dir ect acti vities. The aut omobile companies Sub aru and Mazda r ecently shift ed goals t oward a gr eater emphasis on quality dealerships, and emplo yees w ere at the f orefront of the changes. Compan y leaders belie ved that a mor e pleasant shopping en vironment w ould boost sales. Th e or ganizations spent a gr eat deal of mone y impr oving sho wrooms and other elements of the dealerships (Gr eenberg, 2004) t o assist salespeople in pr oviding quality pur - chasing e xperiences. T oyota shift ed its goals t oward bett er serving the needs of w omen visit - ing dealership s. Childr en’s pla y ar eas w ere added, r estrooms w ere upgr aded, and the com - pany es tablished coff ee bar ar eas (V oight, 2006). The sales f orce w as r etrained t o pr ovide impr oved service t o f emale cust omers. Compan y leaders changed the cultur e t o r ecognize that both men and w omen bu y cars. Subaru, Mazda, and T oyota all enjo yed incr eases in sales and customer loyalty.
In summary , changing a cult ure or cr eating a mor e ethical cultur e tak es time. Managers must be committ ed t o the change. Emplo yees that r espond positi vely should be r ewarded and serv e as role models.
\251 2017 Bridgepoint Education, Inc. All rights reserved. Not for resale or redistribution. Diversity and Diversity Management Section 2.4 2.4 Diversity and Diversity Management Diversity describes a wide spectrum of diff erences betw een people and that applies t o indi- viduals, gr oups, and or ganizations. A t the indi vidual le vel, f or e xample, a disability sets a per- son apa rt in one sense fr om others, as does se xual orientation. Gr oups and cat egories include those associat ed with age, r ace, and gender , as w ell as political affiliation, r eligion, and occu - pation (Gomez -Mejia, Balkin, & Car dy, 2005).
In the stud y of di versity, car e must be tak en t o a void assuming that gr oup a verages or char acteristics appl y t o e very indi vidual or gr oup. Diff erences betw een gr oups ar e normall y small - er than diff erences within gr oups. St ereotyping occurs w hen all per sons with one common char acteristic, such as H ispanic or igin or Jewish r eligious affiliation, ar e incorr ectly assumed t o ha ve a set of common char acteristics. When leader s, manager s, or co workers mak e these f alse and r acist gener alizations, the w orkplace becomes di visive and unpleasant . In the w orld of business, typical gr oupings used t o describe di versity include gender , age, r acial identity , nationality , r eligion, se xual or ientation, and physical disabilities.
Gender Women compose mor e than half the w orkforce in the Unit ed Stat es. In addition t o sing le w ork- ing w omen, o ver 50% of the U .S. w orkforce consists of emplo yees fr om tw o-income f amilies Comprehension Exercise 1. When building a more ethical culture, codes of ethics are examples of a. changes in the reward system.
b. establishing ethical expectations.
c. positive role models.
d. providing help.
2. Which tactic is reflected by the statement “We must focus on making the lives of our cust omers better”?
a. top management pronouncement b. workplace redesign c. reward system changes d. providing help Answers: 1) b 2) a Rawpixel/iStock/Thinkstock As workplaces become progressively more diverse, managers must utilize strategies to accommodate an array of people and experiences.
\251 2017 Bridgepoint Education, Inc. All rights reserved. Not for resale or redistribution. Diversity and Diversity Management Section 2.4 in w hich both spouses w ork (Unit ed Stat es Department of Labor , 2011). Issues of marriage, child raising, career development, and work–life balance persist for both men and women.
In the Unit ed Stat es, man y w omen postpone marriage t o begin car eers. Numer ous car eers ar e int errupted b y either ha ving childr en or def erring t o a spouse’s car eer path. Some companies ha ve r esponded t o these challenges b y off ering on-sit e da y car e, job sharing, and other pr o- grams; however, most companies do not.
One of the mor e commonl y not ed pr oblems, the g lass ceiling, continues in man y companies and industries. The g lass ceiling r efers t o a barrier that pr events w omen fr om ad vancing t o t op le vel e xecutive positions. In some cir cles the g lass ceiling is oft en r eferred t o as the c ement ceiling—especially f or non-w hite w omen. This issue arises w hen men dominat e the agenda of an or ganization, including pr omotion decisions. The so cial netw ork s ystematically e xcludes w omen fr om mo ving up. Ment oring pr ograms and other s ystems ha ve been designed t o r educe the pr oblem; ho wever, e vidence suggests that per ceptions pla y a k ey r ole in main - taining the g lass ceiling, es pecially w hen t op e xecutives view the barriers t o ad vancement in w ays that ar e diff erent fr om the w omen seeking t o br eak thr ough t o hig her le vels (R agira, T ownsend, & Mattis, 1999).
Age By 201 5, the a verage age of the Unit ed Stat es w orkforce had r eached 42 (U .S. Bur eau of Labor Statistics, 2015). The tr end t oward an incr easingly older w ork population will begin t o decline in this decade, as members of the Bab y Boomer gener ation r etire. In 2011, 13% of the U .S. populatio n w as o ver the age of 65. B y 2030, the figur e will be 18%. The 2008 economic do wnturn combined with bett er health and incr eased lif e e xpectancy has slo wed the number of older w orkers w ho wish t o st op w orking, further complicating the w orkplace en vironment (Stibich, 2011).
Age dif ferences can complicat e the manager’s r ole. Senior w orkers hold the gr eatest le vel of e xperience and can t each and ment or y ounger emplo yees. The U .S. econom y is dri ven b y a lar ge services sect or, w here ph ysical str ength and endur ance ar e not r equired. Senior w orkers in these occupations ar e able t o r emain on the job f or longer periods of time. Some compan y e xecutives ha ve concluded that lo wer-level managers should r eceive tr aining in methods t o assist new w orkers and y ounger emplo yees and help int egrate them int o the or ganization thr ough socia lization pr ocesses. Man y companies no w include senior emplo yees in f ormal ment oring programs and strategy sessions (Cadrain, 2008).
Age ma y not be r espected equall y in e very compan y or in e very country . While age ma y be r evered in man y parts of the w orld, the tr aditional view that emplo yees become mor e v alu- able as the y continue their car eers f aces sk epticism in man y countries, including the Unit ed Stat es. This conclusion, called ageism, dominates cultures in many companies.
Commentaries suggest that companies emplo ying lar ge numbers of senior w orkers will e xpe- rience rising health insur ance costs. The same w orkers ma y ha ve accumulat ed longer v aca- tion packages and sick leave days. Longer v acations and days set aside f or a lengthy recovery fr om a medica l issue r emove the emplo yee fr om the w orkplace, r equiring others t o pick up the slack. Some managers mig ht notice r esentment t oward those w ho ar e a way f or longer periods of time.
\251 2017 Bridgepoint Education, Inc. All rights reserved. Not for resale or redistribution. Diversity and Diversity Management Section 2.4 Age di versity also aff ects y ounger w orkers. Some ma y become frustr ated b y the inability t o mo ve up the chain of command, because senior manage rs sta y on the job past the tr aditional r etirement age. Y ounger emplo yees mig ht e xpress frustr ation that their new er, mor e cutting- edge skills ar e not full y utilized. Managers should monit or and r espond t o these pot ential ri valries.
Race and Ethnicity Immigration int o the Unit ed Stat es has cr eated both conflict and gr owth in the econom y. Each gener ation of Americans has e xperienced the influx of gr oups of indi viduals fr om other coun - tries.
Diversity issues associated with race have long existed. Thr ee of the la rgest non-w hite population segments in the Unit ed Stat es ar e Hispanics, Afri- can Americans , and Asian Americans. In the Unit ed Stat es, ho wever, statistical r acial composi- tion pr ofiles ar e sk ewed, because neither Hispanic nor Latino is consider ed t o be a r ace. With that ca veat in mind, Figur e 2.1 identifies the o verall composition of v arious gr oups in the Unit ed States.
Note that these thr ee major r acial/ethnic distinctions do not constitut e all cat egories of non- w hite emplo yees. In man y or ganizations, persons of other back grounds, such as indi vidu- als fr om the Middle East and Africa, ar e part of the w ork f orce. Man y of the pr oblems these lar ger ethnic gr oups encount er ar e also f aced b y those fr om other r aces or ethnic gr oups. Figure 2.1: Composition of identifiable groups in the United States According to the latest census, three of the largest population segments in the United States are classified as Hispanics, African Americans, or Asian Americans.
Source: U.S. Quick Facts from the Census Bureau, https://www.census.gov/quickfacts/table/PST045216/00 \251 2017 Bridgepoint Education, Inc. All rights reserved. Not for resale or redistribution. Diversity and Diversity Management Section 2.4 The futur e of the fields of management and or ganizational beha vior undoubt edly will include gr eat in vestigation int o the issues such indi viduals confr ont, as w ell as managerial str ategies designed t o he lp full y int egrate them int o an or ganization and tak e ad vantage of the unique contributions they can make.
Hispanic Populations The t erms “Hispanic” and “Latino ” do not r epresent specific r acial gr oups. Inst ead, the y appl y t o sets of indi viduals with common char acteristics, including Spanish as a primary language (at least in the country of origin), belonging t o the Catholic r eligion, and ancestry in f ormer colonies of Spain. Spanish surnames and cust oms ar e f ound in Spain, Me xico, C uba, Centr al America, and South America.
The Hispanic subset of U .S. citizens r epresents business opportunities and specific manage- ment needs. Appr oximately 770,000 Hispanic-o wned firms w ere pr ojected t o e xist b y the y ear 20 05 (Mendosa, 1996). The 2008 r ecession r educed that number; ho wever, the majority of these or ganizations r emain. Companies that conduct business with Hispanic-o wned firms enjo y a lar ge mar ketplace that can be r eached thr ough Spanish-language media such as r adio, new spapers, and mag azines. Man y U .S. companies ar e starting t o r ecognize the pot ential pur chasing po wer held b y H ispanic and Latino people. In mor e r ecent y ears, Latino-o wned companies, in particular , ha ve been on the rise. CNBC not es, “The Stat e of Latino Entr epre- neurship 2015 r eport r evealed that betw een 2007 and 2012, the number of [Latino-o wned businesses] gr ew b y 46.9 per cent compar ed t o just 0.7 per cent f or non-Latino o wned busi - nesses, an e xtraordinary le vel of entr epreneurship that suggests Latinos pla y a substantial r ole in local job creation and economic development” (Porras, 2016).
Managers ar e challenged b y certain issues r elated t o the Hispanic population as members of the w orkforce. One challe nge is language. An indi vidual w hose primary language is Span- ish oft en copes with misunderstandings and other pr oblems associat ed with Eng lish, e ven w hen the indi vidual speak s some Eng lish. Supervisors w ho do not speak Spanish encount er a similar difficulty . Bilingua l managers ar e a v alued r esource in companies in r egions with significant Hispanic or Latino populations.
African Americans Approximately 13% of the U .S. population is African American, with ancestry of at least one par ent originating in Africa . Discrimination and st ereotyping continue t o haunt this minor- ity gr oup. The election of Pr esident Obama, w hile view ed as a positi ve st ep, has not sol ved the pr oblems associat ed with bigotry and s ystematic e xclusion of African Americans in man y or ganizations. The 2008–09 r ecession dr amatically impact ed emplo yment statistics of Afri- can Americans, w ho suff ered dispr oportionate job losses r elative t o the entir e population. Some view this as evidence that discrimination and an unfair playing field still exist.
At the same time, African Americans ar e view ed b y mar keters as a pot entially v aluable seg - ment that can be r eached via specific media, such as the BET cable channel and mag azines including Essenc e and Black Enterprise.
\251 2017 Bridgepoint Education, Inc. All rights reserved. Not for resale or redistribution. Diversity and Diversity Management Section 2.4 In the busines s community , managers should be a ware of r acial incidents. Pr ogressive com - panies de velop pr ograms t o r ecruit, tr ain, and pr omote minority members, including African Americans.
W orking t oward equality and f air tr eatment of all r emains an important ethical objecti ve for African Americans as well as other minority groups.
Asian Americans Asian Americans also originat e fr om numer ous countries. As a gr oup, Asian Americans con - stitute about 4% of the U .S. population. These indi viduals encount er diff erent kinds of st e- reotypes and discriminat ory pr actices than do Hispani cs and African Americans. One r ecent r esearch r eport suggests that near ly one-thir d of Asian- American emplo yees ha ve been sub - ject t o w orkplace discrimin ation (Mont ero, 2011), including unequal pa y and pr omotion decisions, f avoritism t oward others b y management , and incidents of st ereotyping. Pr omo- tion iss ues ha ve led t o the t erm “bamboo ceiling, ” and “sticky floors, ” w hich suggest Asian Americans ar e oft en held t o lo wer r anks in the or ganizational hier archy and cannot br eak thr ough to top management (Fisher, 2005).
Managers ar e ad vised t o br eak do wn these per ceptions and deal with members of this gr oup in the same w ays as other American minorities. The E qual Emplo yment Opportunity Commis- sion (EEOC) r ecommended the f ollowing st eps t o impr ove the emplo yment cir cumstances of Asian Americans in 2010:
• Strengthen leadership and personal commitment to diversity from top management in the private sector.
• Strengthen commitment to diversity in U.S. employment agencies.
• Make certain the EEOC is fully accessible to Asian Americans.
• Collaborate with Asian American community organizations.
• Support Asian American employee groups.
• Improve Asian American documentation and support for promotions.
Religion Matters of r eligion ha ve aff ected int eractions among citizens f or centuries. In the 1960s, con - cerns w ere e xpressed because Pr esident John F . K ennedy w as R oman Catholic. The e vents of Sept ember 11, 2001, changed the American perspecti ve r egarding r eligion. Specificall y, members of the Islamic f aith became tar gets of hostility in the media, in local communities, and in the w orkplace. As time passes, the hope is that gr eater cultur al int egration will include a reduction in animosity toward some religions.
As a matt er of la w, emplo yment discrimination based on a person ’s r eligion is pr ohibited, as is discriminati on based on r ace, se x, age, or national origin. In pr actical t erms, a hostile w ork- place based on r eligion cr eates similar discomf ort t o int olerance based on r ace and gender . E thical managers seek t o r educe these t ensions and cr eate understanding among emplo yees with diverse religious beliefs.
\251 2017 Bridgepoint Education, Inc. All rights reserved. Not for resale or redistribution. Diversity and Diversity Management Section 2.4 Sexual Orientation and Gender Identity In 201 0, the r epeal of the “don ’t ask, don ’t t ell” policy r egarding members of the military t ook place in the cont ext of a continuing national debat e r egarding the rig hts of g ays, lesbians, and other gr oups. Cont ested issues included the rig ht t o marry and li ve with the same ci vil rig hts as het erosexual couples, including hospital visitation, access t o health insur ance co verage, and inheri- tance rights. The 2015 Supr eme Court decision r egarding w hat has been t ermed marriag e equality has dr amatically shift ed the landscape, as ha ve the majority national view s of the issue. B y 2016, 60% of U .S. r espondents r eported the y support same-se x marriage, w hich has implications f or a v ast v ariety of companies, including insur ance, health car e, and ad vertising (ho w ads ar e pr epared), and e xtending t o HR depart - ments, managers, and co-workers across the country (McCarthy, 2015).
Recently, legislation r egarding tr ansgender indi viduals has r esulted in contr oversy and dis- agr eement. In both T exas and North Car olina, stat e legislat ors passed la ws insisting persons use bathr ooms based on the gender the y w ere assigned at birth. The North Car olina la w r esulted in r esponses b y se veral major corpor ations, including P ayPal, Do w Chemical, the NB A, the NCAA , and Goog le. The r eactions included economic sanctions and condemnation of the statute itself.
In the w orkplace, int olerance of g ay, lesbian, and tr ansgender co workers persists, despit e la ws that mak e discrimination based on se xual orientation illeg al. Ga y slurs continue t o mak e headlines in the w orlds of ent ertainment and sports. Debat es then mo ve t o other places, including the office. Manage rs ar e e xpected t o def end emplo yees fr om def amatory stat ements and to try to instill respect toward others regardless of differences.
Disabilities A disability r epresents di versity in the sense that it is a distinguishing char acteristic. The Americans with Disabilities A ct co vers the basic rig hts of indi viduals with disabilities. The EEOC tak es further st eps t o help those with special needs in the w orkplace. Man y busi - ness or ganizations ha ve tak en dr amatic st eps t o help accommodat e those with disabilities. Appr oximately 15 million disabled U.S. citizens are employed.
Statistics indi cate that disabled w orkers ar e less pr one t o absent eeism and turno ver than other emplo yees ( Workforce Strategies, 1993). Managers ar e a ware that disabled w orkers can mak e others f eel uncomf ortable and that the y ma y f eel isolat ed or patr onized in man y w orking situations. Ther efore, incr easing sensiti vities t oward disabled w orkers r emains an MarcBruxelle/iStock/Thinkstock Managers must take strides to promote a workplace culture that is safe and comfortable for all.
\251 2017 Bridgepoint Education, Inc. All rights reserved. Not for resale or redistribution. Diversity and Diversity Management Section 2.4 important goal. This includes education of co workers and peers t o help both the disabled emplo yee and others t o f eel mor e comf ortable with each other . R educing patr onizing stat e- ments and iso lation of those with disabilities cr eates a pr oactive r esponse t o impr ove the w orkplace for those with special needs.
One r esponse t o assisting di sabled w orkers w ho ha ve difficulty tr aveling has been the imple - mentation of t elecommuting positions. This and other inno vative appr oaches can become part of an overall diversity management strategy.
Diversity Management Strategies Companies that embr ace di versity oft en r each wider audiences with their pr oducts and ser- vices, benefit fr om inno vative ideas fr om untapped members of society , and perf orm a social good.
As described in the sections that f ollow, se ven k ey acti vities ar e part of a quality di ver- sity managem ent s ystem (Co x, 1993, pp. 225–241; Harv ey & Allar d, 2002). These ar e imple - mented b y management in indi vidual departments, as w ell as thr oughout the entir e or gani- zation.
As pr eviously not ed, the HR department pla ys a k ey r ole in r ecruiting and selection; other aspects are more oriented to the general organization.
Recruit From New Sources One element of the human r esource management pr ocess in volves planning f or futur e per- sonnel needs. Human r esource planning pr ograms can be designed t o emphasize finding r ecruits fr om di verse back grounds. Doing so in volves publicizing eff orts t o attr act minority applicants.
Int ernship pr ograms and job f airs can be established t o cr eate pipelines of minor- ity member applicants. The power of word of mouth and social media should not be ignored. P art of r ecruiting in volves getting the w ord out that a compan y has a true int erest in a mor e di verse workforce.
Use Unbiased Selection Processes Many major or chestras acr oss the Unit ed Stat es emplo y a unique selection pr ocess. When a finalist pla ys f or the judging committ ee, the musician pla ys behind a scr een. Onl y the music matt ers. The judges cannot see the person ’s ph ysical appear ance. This t echnique cannot be applied t o man y situations; ho wever, the concept can. Selecting candidat es solel y f or their pot ential t o succeed, without an y other biases in volved, encour ages true di versity. Man y or ga- nizations use multiple r aters t o e xamine an emplo yee’s application or r esume, with the goal of making sure the applicant receives unbiased treatment during the selection process.
Provide Training and Orientation for Minority Group Members Many times, someone fr om an unusual or diff erent ba ckground will e xperience a sense of discomf ort with a new , unf amiliar or ganization coupled with the pot ential lack of f amiliar- ity with v arious compan y pr ocedures. T raining method s establish an en vironment in w hich a perso n can r emain confid ent w hile kno wing his or her back ground ma y be diff erent, but at the same time f eeling assur ed the adjustment t o the new situation will tak e place. Di ver- sity str ategies include makin g sur e minority tr ainers ar e part of the pr ocess. T rainees should \251 2017 Bridgepoint Education, Inc. All rights reserved. Not for resale or redistribution. Diversity and Diversity Management Section 2.4 receive continual, positi ve f eedback r egarding their pr ogress and possibl y additional att en- tion away fr om the tr aining group (during br eak periods or other do wn times) if the y ask for help.
Encourage Sensitivity From All Employees Many lar ger or ganizations no w pr ovide di versity tr aining. The goals of such pr ograms ar e t o encour age emplo yees t o embr ace the idea that di versity cr eates an ad vantage f or a compan y and t o enjo y cultur al and indi vidual diff erences. The pr ocess can begin at an ear lier stage, in the r ecruiting and selection pr ocesses. Applicants can be notified that the compan y int ends t o build a di verse w orkforce. The selection crit eria can include an acceptance of or e xcitement about working in such an environment.
Display Flexibility in Responding to Worker Requests An eff ective di versity pr ogram r ecognizes that emplo yee needs v ary. P arents need time t o t end t o matt ers such as doc tor’s office visits and par ent-teacher conf erences at school. Indi - vidual w orkers ma y tak e time off t o celebr ate v arious holida ys thr oughout the y ear. Senior w orkers ma y r equest time off t o help out their childr en or gr andchildren in some w ay. List en- ing constitut es a k ey element in fle xibility. Managers w ho pa y att ention t o emplo yee needs ar e oft en rewarded with loyalty and extra effort.
As an e xample of fle xibility in the w orkplace, one new er method of helping maintain w ork– life balance, t elecommuting , in volves w orking at hom e and utilizing t echnologies such as the Int ernet and the phone s ystem t o tr ansmit finished pr ojects t o an office. In 2008 near ly 3 million jobs, or about 14 % of w orkforce positions contained elements of t elecommuting (T elework R esearch Netw ork, 2011). A par ent with childr en in school can w ork at home and then t end t o f amily needs during other parts of the da y. T elecommuting allo ws new par ents t o w ork w hen the child sleeps and during times w hen the other spouse is at home. T elecommut- ing has been not ed as a method f or r educing wif e/mother/employee r ole conflicts as w ell as husband/f ather/employee role conflicts (Madsen, 2003). Tailor Motivation Programs to Individuals Motives v ary b y personal cir cumstance. A sing le par ent will ha ve moti ves that ar e diff erent fr om so meone appr oaching r etirement age with an empty nest , and issues such as the cost of health insur ance and the viability of a compan y’s r etirement pr ogram will ha ve v arying degr ees of significance t o each emplo yee. Extrinsic motives ar e tangible and visible. The y include pa y r aises, pr omotions, prizes in cont ests, positi ve perf ormance appr aisals, and pen - sion pla ns pr ovided b y companies. These moti ves can be adapt ed t o fit the needs of v arious or ganizational members.
Intrinsic motives ar e int ernal. Intrinsic satisf action r esults fr om perf orming at a hig h le vel, helping others , and taking ad vantage of one’s o wn talents and abilities. Emplo yees ma y deri ve additional satisf action and moti vation fr om winning a sales cont est, r eceiving pr omotion t o a certain r ank, or being chose n t o lead a task f orce or committ ee. A complet e di versity pr ogram accounts for both extrinsic and intrinsic motives.
\251 2017 Bridgepoint Education, Inc. All rights reserved. Not for resale or redistribution. Diversity and Diversity Management Section 2.4 Reinforce Differences in Positive Ways Numerous sour ces cit e the importance of embr acing di versity. In essence, the idea is t o accept the principle of multicultur alism f or its o wn sak e. Doing so can tak e f orms as simple as themed office parties or celebr ations, such as Cinc o de Mayo or Eid ul-Fitr (the end of R amadan), or as comple x as di versity and cultur al sensiti vity tr aining sessions. Allo wing w orkers t o decor ate their w ork spaces with personal it ems that r eflect cultur al di versity also e xpresses the objec - tive of embr acing di versity. Managers that tak e the time t o learn a f ew k ey phr ases that appl y t o another cul ture establish a hig her le vel of r apport with emplo yees. In essence, di versity can be celebr ated in a v ariety of w ays. An ything that enhances cultur al understanding or kno wl- edge about others can be rewarded and emphasized by management.
The Four-Layer Diversity Model Managers can emplo y the principles of the f our-layer di versity model t o help emplo yees understand di versity issues (see Figur e 2.2). The mod el suggests that the innermost le vel is pers onality, w hich includes lik es, dislik es, attitudes, and belief s that ar e unique t o each indi vidual. Th e second la yer, int ernal dimensions, cons ists of the f eatures not ed in this sec- tion, including gender , se xual orientation, r ace, and age. The thir d la yer, e xternal appear - ance, includes other char acteristics, including r eligion, income, geogr aphic location, per- sonal and r ecreational habit s, educational back ground, and appear ance. The f ourth la yer, the Figure 2.2: The four-layer diversity model The four-layer diversity model helps break down evaluations of others into several categories, which can lead to a better understanding of individual differences.
\251 2017 Bridgepoint Education, Inc. All rights reserved. Not for resale or redistribution. Diversity and Diversity Management Section 2.4 organizational dimension, includes w ork location, w ork type, seniority , managerial status, and other features of the company. The model can be used t o understand ho w w e think about and e valuate others based on our biases.
It also can help an indi vidual e xplore his or her o wn car eer choices. T eam e xercises designed t o build trust and acceptance can be based on the personal per ceptions and view s of others (Gardenswartz & Rowe, 1998).
Barriers to Diversity Management Strategies “Everything communicat es” is a k ey phr ase in mar keting. The same is true of a di versity man - agement pr ogram. Compan y leaders dedicat ed t o di versity understand that a v ariety of inci - dents and dec isions can de tract fr om a str ong pr ogram. Encour aging di versity link s closel y with se eking t o shape or r edefine a compan y’s cultur e. The pr ogram ma y tak e time, and obstacles can appear along the w ay. The primary f orces that can detr act fr om a compan y’s di versity management agenda include the following:
• Lack of inclusiveness and stereotyping • Expectations of reverse discrimination • Failure to include diversity efforts in performance appraisals • Resistance to change • Inadequate management training techniques Continual st ereotyping r epresents a major obstacle t o the cr eation of an accepting and di verse w orkforce. Ov ercoming it r equires managers t o pa y att ention t o an y slurs and gener aliza- tions, corr ecting them as the y occur . Lack of inclusi veness is oft en mor e difficult t o addr ess, as socialization tak es place on-the-job but also a way fr om the w orkplace. In essence, cliques still exist and are harder to break down.
Fears of r everse discrimination oft en ar e dir ected at pr ograms such as affirmati ve action. Opponents of affirmati ve-action pr ograms use t erms such as “quota s ystems” (w hich the y ar e not) t o ur ge r esistance t o the implementation of di versity eff orts. Management communica - tion processes at all levels can help reduce these concerns.
Employees ar e quick t o notice w hen di versity management is a lo w priority t o an or gani- zation.
Staff members f ollow w hat leaders str ess as important . F or a di versity pr ogram t o succeed, t op management must bu y in and k eep the compan y on course. F or e xample, poor management tr aining pr ograms that f ail t o incorpor ate di versity management in the pr ocess ma y indicat e that di versity is a lo w priority , and as a r esult managers will not kno w ho w t o eff ectively r espond t o emplo yee needs or discrimina tory incidents. In addition, w hen the s ystem r arely r eceives mention and does not appear in an y int ernal compan y documents, it becomes easier t o assume t op management has assigne d a lo w priority t o the idea of incr eas- ing diversity in the organization.
Organizational inertia, the t erm used t o describe r esistance t o change, can be f ound in pr acti- cally an y or ganization. Di versity pr ograms r epresent change and ma y encount er r esistance as a consequence.
The r esistance can tak e the f orm of stalling, trying t o turn att ention t o other issues, or even something resembling a rebellion.
\251 2017 Bridgepoint Education, Inc. All rights reserved. Not for resale or redistribution. Summary and Resources As not ed, each of the pot ential barriers t o di versity management can be o vercome. T rue di ver- sity oft en signifies a cultur al shift in the or ganization. All of the tactics designed t o change a cultur e can play a role in instituting a truly multicultural environment.
In summary , di versity descr ibes a wide spectrum of diff erences betw een people. Companies seeking t o encour age and embr ace di versity emplo y v arious str ategies and tactics. Still, man y barriers t o diversity management pr ograms remain. Managers who adapt t o and take advan- tage of di versity cr eate major ad vantages f or their companies. Managers w ho f ail t o embr ace di versity risk falling behind in the new competitive, multicultural world of business.
Summary and Resources Chapter Summary Culture consists of the shared meanings associated with the symbols, rituals, language, and social dramas that highlight organizational life, including myths, stories, and jargon. Culture combines the philosophy of the firm with beliefs, expectations, and values shared by mem- bers.
It contains the stories and myths about the company’s founder and its current leading figur es, who are the firm’s heroes and heroines.
Organizational cultur e pr ovides se veral k ey functions, including making the or ganization dis- tinct , cr eating a sense of identity f or or ganizational members, building a str ong social s ystem, and he lping members fit in. The thr ee la yers of cultur e that emplo yees encount er include observ able artifacts, espoused values, and enacted values. C ulture is tr ansmitted and learned in a v ariety of w ays, beginning with the r ecruiting pr ocess. Socialization is the pr ocess of int ernalizing or assimilating an or ganization’s v alues. T ypically, socialization tak es place in thr ee stages: anticipat ory socialization or pr e-arrival, an encoun - ter, and change and acquisition, or metamorphosis. Each of the stages helps the new emplo yee understand the compan y’s culture in r elation t o his or her own v alue set and then e ventually helps the employee to align the two to create a positive working situation. Comprehension Exercise 1. A cash prize given for finding new ways to attract and hire minority members in an or ganization, awarded to a human resource department employee is a(n) a. intrinsic reward.
b. extrinsic reward.
c. resonance reward.
d. cultural shift reward.
2. Which is not considered to be a barrier to successful diversity management programs?
a. continual stereotyping b. fears of reverse discrimination c. resistance to change of any kind d. the presence of a strong subculture Answer: 1) b 2) d \251 2017 Bridgepoint Education, Inc. All rights reserved. Not for resale or redistribution. Summary and Resources Companies can eng age in so cialization pr ograms that r ange fr om inf ormal t o f ormal. Emplo y- ees can be tr ained and socialized indi vidually or collect ively. A dvancement can tak e place on a fix ed or v ariable schedule . Socialization pr ograms off ered in serial or sequential f orm v ary fr om those presented randomly. A mentor can help in the socialization process.
Organizational st ories further tr ansmit cultur e b y e xplaining dualities, equalities and inequal- ities, and e vents in the past . St ories maintain or ganizational her oes and her oines. C ultures tak e se veral f orms including clan, hier archy, adhocr acy, and mar ket v ersions. Members of a positi ve cultur e enjo y the benefits of stability , emplo yee self-management , and smoother int egration of new members.
When cultur al change becomes necessary , management can w ork t oward a new v ersion thr ough t op-level pr onouncements, compan y language, w orkplace r edesign, r eward s ystem changes, tr aining pr ograms, r ole modeling, coaching, or ganizational s ystems and pr ocedures, and goal-setting pr ograms. E thical cultur es ar e built and maintained b y visible stat ements of commitment , establishing ethical e xpectations, pr oviding positi ve r ole models, r ewarding ethical acts, punishing unethical acts, and providing help in the form of ethical counseling.
Diversity concepts appl y t o indi viduals, gr oups, and or ganizations. In the w orld of business, typical gr oups used t o descr ibe di versity include gender , age, r ace, nationality , r eligion, se xual orientation, and physical disabilities.
Problems asso ciated with di versity issues can be addr essed b y r ecruiting fr om new sour ces, seeking t o use unbiased selection t echniques, pr oviding quality tr aining and orientation pr o- grams f or minority members, encour aging sensiti vity b y all emplo yees, maintaining fle xibil- ity in r esponding t o emplo yee r equests, tailoring moti vational pr ograms t o indi vidual emplo y- ees, and r einforcing diff erences in positi ve w ays. Di versity management pr ograms oft en r equire a cultural shift or change in order to succeed. CASE STUDY: GM’s Cultural Challenge Many catal ysts t o change e xist. It oft en tak es a dr amatic turn of e vents t o mak e major alt era- tions t o a cultur e possible. Gener al Mot ors (GM) ma y be view ed as a classic e xample of the fix ed natur e of cultur e. F or y ears the or ganization has been char acterized as being led b y a mor e authoritarian style of leadership that was highly resistant to change.
When Mary Ba rra assumed the position of CEO of GM in 2014, it w as clear that mor e than a change of climat e, or the pr evailing atmospher e in the compan y, needed t o tak e place. A t the time, GM f aced criminal char ges r elated t o wir e fr aud and withholding inf ormation fr om r egulators abou t a def ective ignition s witch that had been blamed f or o ver 100 deaths (Col vin, 2015).
The “tr aditional” appr oach t o incidents in volving a def ect or pr oblem that leads t o the loss of lif e (w hich does occur fr om time t o time in the aut omobile industry) had been t o stall, dela y, and minimize the importance of the e vent. Then the compan y w ould quietl y settle an y la wsuits or other leg al issues w hile maintaining a postur e of innocence or at least one indi- cating that ther e w as no concr ete e vidence signifying that the situation w as caused b y the compan y. (continued) \251 2017 Bridgepoint Education, Inc. All rights reserved. Not for resale or redistribution. Summary and Resources Review Questions Define dominant culture and subculture.
The dominant culture articulates the core values shared by a majority of an organization’s members.
A subculture, in an organizational context, arises from the common problems, situations, and experiences that a set of members faces.
What is meant by the term “strong culture”?
A company with a strong culture employs members who intensely hold and readily share the organization’s core values. CASE STUDY: GM’s Cultural Challenge (continued) Instead, Barry chose t o public ly and openl y ackno wledge the pr oblem, including setting up a compensation fund f or victim f amilies, and meeting with those f amilies in person. “I ne ver w ant t o put this behind us, ” she t old emplo yees at a t own hall meeting that stunned man y of them.
“I w ant t o put this painful e xperience permanentl y in our collecti ve memories. ” A r etired e xecutive comment ed that her r emarks “w ere unlik e an ything an y pr evious GM CEO has e ver said” (Colvin, 2015). GM settled the case with the U.S. Justice Department for $900 million.
Not cont ent t o st op ther e, Barr a not ed in 2016, “W e ha ve mor e w ork t o do. W e’ve got t o get t o e very sing le emplo yee. W e do this e xternal surv ey with A on H ewitt so that w e can benchmar k oursel ves t o other industries, and w e’ve seen tr emendous impr ovement in the eng agement of our emplo yees” (R eingold, 201 6). She w as, in part , r eferring t o w hat she t ermed the “fr ozen middle” la yer of management that had been most r esistant t o change. Barr a meets with them, and with new ly pr omoted or hir ed managers tw o t o thr ee times per y ear t o mak e sur e the y understand how the new culture must operate.
“Another cor e thing w e ar e dri ving t oward is understanding that w hen w e first kno w (or think) w e mig ht ha ve an issue, that’s the easiest time t o sol ve it . R aise the issues and sol ve them ear ly,” she notes (Reingold, 2016). Such was the approach used in the defective ignition-switch case.
As the futur e unf olds, man y e yes will undoubt edly be f ocused on Mary Barr a’s eff orts t o change a longstanding cultur e and the pr oblems r esulting fr om the lack of adaptation t o a changing w orld.
Case Questions 1. What was the major cultural challenge facing General Motors prior to Barry’s involve- ment?
Would paternalism and a male-dominated leadership team be part of the pr oblem?
2. What methods of cultural change could Mary Barra implement in the recruiting and tr aining stage for entry level employees?
3. In the past refusing to accept responsibility for the accidents and deaths associated with the automobile defects may have been the best legal approach, in terms of lawsuits and go vernmental responses. Was it the most ethical response?
\251 2017 Bridgepoint Education, Inc. All rights reserved. Not for resale or redistribution. Summary and Resources Name the functions performed by culture.
Culture makes an organization distinct, creates a sense of identity, builds a strong social s ystem, and helps employees “fit in.” Name and briefly describe the three stages of employee socialization.
Anticipatory socialization involves the learning that takes place prior to joining an organiza- tion.
The encounter takes place as the individual learns more about the company and begins t o compare his or her expectations about the firm’s culture with reality. The change and acquisition (or metamorphosis) stage occurs as the employee masters the skills and role perf ormance needed to succeed in the organization.
Identify the choices to be made by managers when creating socialization programs.
The five potential methods for socializing new workers include (1) informal or formal, (2) individual or collective, (3) fixed or variable advancement schedule, (4) serial or sequen- tial format, and (5) divestiture versus investiture.
What activities and functions are provided by mentors?
Mentoring involves several activities, including listening to and reviewing ideas, introducing the mentee or protégé to key individuals who might offer help, showing the person how to act and perform the job, and providing emotional support.
What activities are involved in attempting to change a culture?
Activities include top management pronouncements, changes in company language, work- place redesign, reward system changes, training programs, systems and procedures, and goal setting.
Name the groups that are typically used to describe diversity in the world of business.
In the world of business, typical groupings used to describe diversity include gender, age, racial identity, nationality, religion, sexual orientation, and employees with physical disabilities.
What activitie s are involved in diversity management programs?
Diversity management strategies include recruiting from new sources, unbiased selection pr ocesses, training and orientation for minority members, encouraging sensitivity by all or ganizational members, flexibility in responding to worker requests, motivation programs tailor ed to individuals, and reinforcing differences in positive ways.
What are the potential barriers to diversity management programs?
Barriers include continual stereotyping, fears of reverse discrimination, having a low pri- ority as an organizational activity, the failure to include diversity efforts into performance appr aisal, resistance to change, and poor management training techniques.
\251 2017 Bridgepoint Education, Inc. All rights reserved. Not for resale or redistribution. Summary and Resources Analytical Exercises 1. Based on your knowledge of U.S. businesses, name three companies you believe have str ong cultures. Write down the reasons why you think these companies exhibit str ong cultures. Then, name three domestic companies you believe have weak cul- tures and explain your reasoning.
2. Assume you have been chosen to consult with a company that has recently faced both legal problems and bad publicity due to ethics violations. Prepare a report spelling out how the culture must change along with ways to build a more ethical cultur e. Then explain to management why making these changes will be the key to the firm’s long-term survival. Tailor your report to one of the following industries, including the kinds of legal troubles firms in that industry have faced, ethical prob- lems that these companies have encountered, and specific remedies for a company in that industry. • Financial/st ock market • Retail grocery chain • Real estate sales 3. Using the tactics a manager can use to change the culture of an organization, explain ho w you can build a stronger diversity management system by incorporating those ideas. Also explain why building a diversity management program might be more difficult in a strong (as opposed to a weak) culture. Include espoused and enacted v alues in your answer.
4. Explain the difficulties you would expect to encounter in creating a diversity man- agement program in the following types of organizations. Explain your reasoning, including the factors that create diversity challenges in these organizations. • All-w hite, all-male country club • Hooters™ restaurant chain • Roman Catholic Church • Financial investment company • College football • Professional hockey • U.S.
military 5. Using the five potential methods for socializing new workers—(1) informal or formal, (2) individual or collective, (3) fixed- or variable-schedule advancement, (4) serial or sequential format, and (5) divestiture versus investiture—develop pro- grams for w orkers in the following types of or ganizations. Explain y our r easoning for each choice. • P olice officer trainee • Manager trainee, retail chain store such as Target or Costco • Insurance salesperson, office with 20 sales reps • Information technology specialist Key Terms anticipatory socialization Also called the pr e-arrival stage; the first stage of orga- nizational socialization that involves the learning that takes place prior to joining an or ganization. artifacts The physical signs of an organiza- tion’s dominant culture.
change and acquisition Also called the metamorphosis stage, this third stage \251 2017 Bridgepoint Education, Inc. All rights reserved. Not for resale or redistribution. Summary and Resources of organizational socialization occurs as the employee masters the skills and role perf ormance needed to succeed in the or ganization.
diversity The term used to describe a wide spectrum of differences between people.
dominant culture In an organizational cont ext, the core values shared by a major- ity of an organization’s members.
enacted values An organization’s values and norms exhibited as employee and managerial behaviors.
encounter The second stage of organiza- tional socialization, in which the individual learns more about the company and its cultur e.
espoused values An organization’s explic- itly stated values and norms.
extrinsic motive Rewards given by others, such as pay raises, promotions, prizes in cont ests, positive performance appraisals, and pension plans that are delivered by the compan y.
glass ceiling The metaphorical barrier that prevents women from advancing to top le vel executive positions.
intrinsic motives Personal internal r ewards that result from performing at a hig h level, helping others, and taking advan- tage of one’s own talents and abilities.
norms The rules of behavior that guide members of a group or organization. organizational culture A set of shared meanings and values held by a set of mem- bers in an organization that distinguish this or ganization from others.
positive cultures Cultures that are demo- cratic and progressive, nurture and value the contributions of members, and tend to be more flexible and adaptable.
role clarity What exists when a person has a clear understanding of his or her function in the organization and how to complete all assigned tasks.
socialization The process of learning, int ernalizing, and assimilating an organiza- tion’s values.
stereotyping What occurs when all per- sons with one characteristic are incor- rectly assumed to have a set of common char acteristics.
strong culture An organizational culture in which members intensely hold and read- ily share the organization’s core values.
subculture In an organizational context, r efers to the common problems, situations, and experiences that a set of members f aces.
telecommuting Working at home and utilizing technologies such as the Internet and the phone system to transmit finished pr ojects to a central office.
\251 2017 Bridgepoint Education, Inc. All rights reserved. Not for resale or redistribution. \251 2017 Bridgepoint Education, Inc. All rights reserved. Not for resale or redistribution.
