Presenting Under the Influence of Organizational Culture

Steve Gentile, Rich Green, Erin Hardy, Kristen Kass, Marie Kotnour

General Purpose Statement: After our presentation, the audience should understand the basic principals of organizational culture and be able to utilize this knowledge in order to better function within any small group they shall encounter.

Introduction

(Student Interview Video)

How many of you can define organizational culture? If you can’t, this is a presentation that will benefit you in the long run because everyone in this room will eventually have to establish or assimilate into a culture of some kind, whether it be a job, sports team, family or so on. From Webster’s New World Dictionary, a culture is defined as the skills, arts, etc. of a given people in a given period. It is also defined as patterns of shared values and beliefs that over time produce behavioral norms adopted in solving problems. Also, it involves the improvement of the mind, manners, etc. and the development by special training or care. Organizational culture contains all of the components of a standard culture, but within a group or organization. Culture is a body of solutions to problems that have worked consistently and are taught to new members as the correct way to perceive, think about, and feel in relation to those problems. The sum of these shared philosophies, assumptions, values, expectations, attitudes, and norms bind the organization together. Organizational culture, therefore, may be thought of as the manner in which an organization solves problems to achieve its specific goals and to maintain itself over time.

To better understand the importance of organizational culture, consider this. Hiring people who are not aware of the culture, who do not agree with the culture can cost a significant amount of real dollars. How much? Consider this example: A $50,000 person hired as a Financial Analyst. It will probably take six months to realize that he does not agree with or follow the culture. When someone does not conform to the culture, the actions that person takes can create havoc within the departmental unit. Let us assume that this havoc is expressed in lost or inefficient productivity. If we calculate the cost of his decline in productivity at 15% of his salary ($7,500), the training he has been given (valued at $10,000 due to the time and resources that have been given to him), the impact he has on other’s productivity in a non-managerial role, his supervisor’s time to coach and counsel him on his less than satisfactory performance, and on an on. For argument’s sake, let us say this will cost another $10,000.

Now, let us say that nine months go by and you decide you must replace him. Maybe you will give him a few weeks severance, and even pay for outplacement cost. Then there are recruitment costs, lost productivity, increased overtime of others who pick up the slack, lost opportunity to conduct financial analyses in particular areas of the company, along with new training and education costs. Conservatively, this can easily equal $75,000. Fortune magazine recently estimated that the cost of replacing someone was 150% of his or her base salary. This has already amounted to over $100,000 due to someone not fully accepting or understanding the organization’s culture.

Imagine what the cost would be if the person was a senior executive making $250,000 or more with a staff of dozens, if not hundreds. How many employees who work for this executive will leave the company because he/she gave signals that were conflicting with the stated culture of the company? Clearly, the impact of culture on the bottom line can be quite high. Therefore, it is imperative to assess new employees’ belief systems against the existing organizational culture within a company.

Bliss, W. (1999, May). Organizational Culture in Dollars & Sense. Collective Wisdom. Retrieved April 4, 2000 from the World Wide Web:

http://www.healthyworkplace.com/corporateculture/organizational_culture.html

Another way to show how organizational culture effects the everyday operations of the business world is through this example of a worldwide company. As an organization, IBM values customer service. Behaviorally, this means keeping in touch with the customers, answering every customer complaint within 24 hours, providing the customer with the least expensive product that will get the job done, and servicing the customer after the sale has been completed. Customer satisfaction is measured monthly, and employee attitudes are measured quarterly. This value is shared. From top management to the lowest salesman, all agree that "IBM means service." This message is consistently communicated both within the company and externally to its customers. Further, there are strong sanctions for violating this norm. Salaries are docked for losing current customers.

Barnett, G. A., Goldhaber G.M. (Eds.). (1988). Handbook of Organizational Communication. Norwood, NJ: Ablex.

But organizational culture doesn’t only effect the Fortune 500. In every company, whether big or small, organizational culture has an all-encompassing presence.

(Rich’s personal story about the Picture People)

In order for you to fully understand the components of organizational culture, today we will discuss the details and definitions of organizational culture, the importance of organizational culture, the barriers and obstacles which impede the development of a team or organizational culture and how communication can be used strategically to develop, maintain, and build organizational culture. By understanding these principles you will be able to function more effectively within various cultures.

http://129.113.160.149.com2000/Textbook/Chapter04.html

I. There are many ways to define organizational culture.

  1. "In this context managers speak of developing the ‘right kind of culture’ or a ‘culture of quality,’ suggesting that culture is concerned with certain values that managers are trying to incorporate in their organizations. Also implied in this usage is the assumption that there are better or worse cultures, stronger or weaker cultures, and that the ‘right’ kind of culture will influence how effective organizations are." (Schein, 1992, p. 3)

    2. DEFINTION BY AUTHORITY

  2. There are three types of organizational cultures, X, Y, and Z culture.

"An X culture has managers who exercise authority and closely supervise subordinates….

A Y culture is a humanized analogue of X, in which supervisors are sensitive to the needs of their workers and the workers are allowed input into company decisions.

The Z culture is a team-oriented participatory management in which the lines between supervisor and worker are blurred and all members of the organization feel responsibility to one another and to the production of quality products and services."

(DEFINITION BY EXAMPLE)

Cragan, J. and Wright, D. (1999) Communications in Small Groups. (2nd ed.).New York. Wadsworth Publishing Company.

C. Organizational cultures are a collection of mature, long-standing work . . groups that work towards a common goal.
  1. How does an organization exert and establish control over a culture or group?

(DEFINTION BY FUNCTION)
  1. By offering direction (how to work for the good of the whole).
  2. Monitoring (to observe whether or not members are complying to directions).
  3. Discipline (rewards or punishments offered to ensure that members comply with directions).
  4. They furnish the implicit rules that shape communication within a team or organization.
  5. In essence, a team or organizational culture is multifunctional.

Perrow says, "Rules do a lot of things in organizations: they protect as well as restrict; coordinate as well as block; channel effort as well as limit it; permit universalism as well as provide sanctuary for the inept; maintain stability as well as retard change; permit diversity as well as restrict it." (Johnson, 1993, p. 76).

http://www.hbg.psu.edu/Faculty/jxr11/barkdoll.html

There are a number of areas which can be examined to get a clearer picture of the way an organizational culture functions. Here are just a few:

Boundaries:

Who is a member of the organization?

Permanent staff only?

Temps?

Agency staff?

Family members of staff?

Retired staff?

Etc.

Style:

How often?

Setting?

Shape of table?

Who sits where?

Who attends?

Who speaks?

Organization of space?

Allocation of office space?

Size as an indicator of social structure?

Location as an indicator of social structure?

Décor as an indicator of social structure?

Open plan vs. individual offices?

State of building?

Clean?

In need of decoration?

Etc.

Dress code:

Formal or informal?

How rigidly enforced?

What differentiators?

How many different types of dress?

Words:

Modes of address?

First name to all?

Mr. Upward, first name downward?

Sir?

Women addressed differently from men?

Different to clients?

Swear words?

Jargon?

Indicator of boundary strength?

Subgroups using jargon?

Sexual innuendo?

Pinups?

Sexual joking?

Harassment?

(Definition by Classification and Description)

Seel, R. (May 22, 1997). Evaluating organizational culture. Retrieved April 10, 2000, from the World Wide Web: http://www.learning.org.com/97.05/0280.html

Now that you have a brief understanding of organizational culture, you are probably wondering how it pertains to your life. Organizational culture is an inherent structure which is necessary in all communication encounters. While there are many components which work together to create culture within an organization, you will find that having a comprehension of them will benefit you in all aspects of life.

 

II. Why is organizational culture important?

(Barbara Carraway Interview Video)

According to Victoria D. Souza, Director of Case Management/Performance Improvement at Loretto Hospital in Chicago, IL, "Organizational culture is very important because it sets the environment for which values, standards, expectations, and performances are established and usually reflected in its mission. These will impact the success of the organization, productivity and performance of individuals, job satisfaction and overall moral of the workers." (Take it to the streets)

Souza, Victoria. (Personal communication), March 7th, 2000.

"We found that overall, the number one factor was whether the candidate had the relevant areas of study as applied to the job," says Martin Harts, Director of reward Management with Hay Group, based in Toronto. "The second factor was ‘fit’ within the organizational culture. Companies want people who will reflect the personality of the organization. Third, they look for future growth potential- they want people who have a strong potential to do well. Work experience and high academic grades next," he says. (Common ground)

What do employers look for in business graduates? (2000, January, 10). Canada NewsWire.

  1. Organizational culture creates efficiency and direction within the group.

1). Embedded in the organization’s culture is a sense of purpose and direction.

All actions are carried out in reference to strategic plans set by

management.

 

B. It also creates a sense of oneness. The members feel as if they belong to a group, which leads to unity and pride.

 

C. This leads to increased quality and production within the group.

"The performing stage of group development involves the task objective of solving problems and the relationship objective of promoting interdependence. The general theme is productivity. Team building behaviors encourage team members to contribute ideas and problem solutions and to value the contributions and ideas of others. Desired outcomes for this stage are achievement and pride."

Kormanski, C and Mozenter, A. The 1987 Annual: Developing Human Resources. New York: Basic Books. 1987.

-"Teamwork in the Cockpit."

Oberle, Joseph. (1990, February). Teamwork in the Cockpit. Training. 34-38.

D. Embedded within an organization’s culture, leaders can gain insight about organizational performance.

"Leaders need information about the effectiveness of organizational messages, products, and programs to evaluate organizational performance and direct organizational adaptation. By encouraging representatives of relevant audiences to share their experiences and beliefs concerning these messages, products, and programs, leaders can identify any relevant problems and opportunities confronting the organization." (Sypher, 1997, p. 229)

http://home.ubalt.edu/rbento/197outlines/16culture.htm

http://www.pamij.com/hickok.html

(League of Their Own movie clip.)

E. Organizational culture produces group predictability. Leaders are able to gain control over the group.

 

F. Organizational culture can be strategically managed to influence important team and organizational outcomes.

1) Member satisfaction

2) Quality performance

3) Increased productivity

4) Organizational/team consensus

Organizational culture can be found within all aspects of life, from the business world to the home front. A leader who puts to use the components of organizational culture is a necessity to all groups. Through proper management of the culture, it is possible to develop a well-rounded and effective group. However, without suitable leadership, the barriers or obstacles which impede the development of the team may lead to an inefficient group.

 

III. What are the barriers or obstacles which impede the development of a team or . organizational culture?

  1. A very recognizable barrier within the development of organizational culture is stereotyping.

    2. (News Brief Video)

    As was seen in the news brief, gender based stereotyping took place within an organization causing lowered employee moral.

  2. Consumption by the culture may lead to a loss of original ideas.

C. Lack of competent communication can greatly impede the development of a group.

According to Lee Kotnour, Senior Vice President of Patient Care and the COO at Loretto Hospital in Chicago, IL, barriers which impede the development of a team or organizational culture are: poor communication techniques; rigid policies; ineffective leaders and staff that lack understanding of cultural diversity and to thus address it within the organization; autocratic, aggressive leaders who are power hungry or the "lone ranger leader"; lack of clearly defined roles and expectations; rigidity to change and an inability to help employees understand the need; lack of assisting in the change process and not being able to manage or embrace change; fear; lack of openness, honesty and trust; lack of respect for the dignity of each person and their belief system; and discrimination and prejudice. (Take it to the streets)

Kotnour, Lee. (Personal communication), March 7th, 2000.

 

D. If roles are not played properly, it may damage the development of organizational culture.
    1. Faulty communication outlets, such as language differences, have a negative effect on organizational culture.

Now we will show you an example of how faulty communication prohibits a team from functioning efficiently.

(Baseball Video Role-play)

F. When members of a group inefficiently participate within the group, or there is a lack of effective chain of command, attainment of the goal is severely impeded.

G. An abundance of competing and conflicting goals often result in a barrier towards the development organizational culture.

1) Individual and team/organizational goals

2) Task and relational goals

"The storming stage of group development involves the task objective resistance and the relationship objective of resolving feelings of hostility. Conflict emerges naturally as a general theme. Team building behaviors at this stage include acknowledging and confronting conflict openly at the task level and listening with understanding to others at the relationship level. Desired outcomes in this stage are clarification and belonging."

Kormanski, C and Mozenter, A. The 1987 Annual: Developing Human Resources. New York: Basic Books. 1987.

There are many obstacles that a group must face in order to successfully reach a common goal. At some point in time, everyone will be faced with the above listed challenges. Through proper preparation and communication, these conflicts can be easily overcome. Communication is also an important part of building, developing, and maintaining organizational culture. http://www.thepegroup.com/symp.html

(Dwayne and Mirth Video I)

IV. How do you use communication strategically to build, develop, and maintain culture within an organization?

  1. We use communication to create, tell, retell and update the sacred stories and organizational sagas.

    2. "Sacred stories are the means by which people attain an understanding of and loyalty to their work groups. As the new worker begins to interact with members of other work groups, he or she has to adjust to the other stereotypes created by the sacred stories of competing groups." (TBC)

     

    1) When constructing sacred stories members of the organization should attempt . . to:

    1) Strategically make use of the past

    2) Instill group pride

    3) Affirm codependence

    http://www.oise.utoronto.ca/~vsvede/cultur15.htm

  2. Developing and sustaining communication routines and rituals is an important part of building, developing, and maintaining culture within an organization.

"When a new employee begins joining company-sponsored social and recreational activities, he or she hears corporate-wide stories that all members of the organization know, regardless of the work group they are in. These stories produce an arsenal of material that a new worker can use to explain to the outside people why the organization is outstanding and why he or she is proud to be a member of it. (TBC)
    1. A study conducted of two organizations by an outside firm asked employees what they believed were the most important parts of their organizations. In this study done of the Roboto Corporation, when the employees were asked what they believed were the most important components of their company, 65.55% thought that support of or concern for people, 44.83% thought product, 13.79% thought having a good plan, and 6.9% thought morale.(Statistics)

      2. Enz, Cathy A. Power and Shared Values In The Corporate Culture. Ann Arbor: Umi Research Press, 1986.

    2. In a similar study conducted on the Food King Corporation when employees were asked the same question 75% thought people, 41.67% thought integrity, 27.08% thought product, and 10.42% thought having a good plan were the most important components of their company. (Statistics)

Enz, Cathy A. Power and Shared Values In The Corporate Culture. Ann Arbor: Umi Research Press, 1986.

Buster, Eckert, Friedland, and Johnson (1987) conducted a study of rites and rituals in a high-technology organization. It pointed to the relationship between rituals and other approaches to organizational communication which had important cultural implications. Specifically, explicit differences between boundary spanners (e.g., systems engineers), who have links with members of other organizations, and non-boundary-spanning personnel existed in terms of the rites and rituals in which they engaged. When prompted for subjective judgments of the value of organizational events, non-boundary-spanning personnel reported one or more social activities as preferred, especially meetings of various types (e.g., planning, sales, marketing). In contrast, system engineers did not express any dissatisfaction regarding social events, while failing to report task-related activities to the same extent as non-boundary-spanning personnel. Indeed, social rituals were frequently mentioned; when asked, "Which activities do you look forward to the most?" system engineers responded with beer blasts, Christmas parties, picnics, and ski trips. (Research Suggests)

 
  1. Group members should be role-flexible.

    2. According to a 1998 Hewitt study of 218 large U.S. companies, 69 percent of companies reported that "integrating organizational culture" is the most difficult challenge facing companies after a deal [merger] occurs. The study showed that failure to address organizational culture issues can lead to longer integration periods unanticipated costs. (Research suggests)

    Hewitt Associates Hired by Whittman-Hart and USWeb/CKS to Assist with Planning, Post-Merger Cultural Integration. (2000, February, 23). Business Wire.

    http://www.hocinc.com/culture_change.htm

    http://cor-ex.com/sites/bestchng/books/culture-change.htm

  2. What special role do leaders play in developing, building, and maintaining an organizational culture?

    3. "When one brings culture to the level of the organization and even down to groups within the organization, one can see more clearly how it is created, embedded, developed, and ultimately manipulated, managed and changed. These dynamic processes of culture creation and management are the essence of leadership and make one realize that leadership and culture are two sides of the same coin." (Schein, 1992, p. 1)

    1. Evaluate the culture

    2. Sustain the culture

    3. Change the culture

    -"A Sudden Change of Attitude."

    Unknown author. A Sudden Change in Attitude.

  3. How do new members of an organization assimilate into an established culture?

(Office video & Son In-Law clip)
    1. 1. They learn the norms through dress and language.
    2. 2. They learn the history through story telling.
    1. They learn the territorial boundaries.

"Key to organizational communication, organizing is a consensually validated grammar for reducing equivocally by means of sensible interlocked behaviors. To organize is to assemble ongoing interdependent actions into sensible sequences that generate sensible outcomes.’" (Manning, 1992, p.3)

Assimilating into organizational culture is key to efficiently participating within the group setting.

http://www.graceland.edu/~dungan/org-be/Chapter16.html

CONCLUSION

We hope that through this insanely great presentation, you have a grasp of the many components that make up organizational culture and realize the effect it will and does have in your life. We have touched upon the details and definitions of organizational culture, the importance of organizational culture, the barriers and obstacles which impede the development of a team or organizational culture, and how communication can be used strategically to develop, maintain, and build organizational culture. It is the basis of the everyday components of our lives; whether it is family, work, or friends. It is constantly surrounding us whether or not we realize its presence. In our own group, we were not able to comprehend the full extent of organizational culture until we discovered it within our own setting. So take a step back and reflect upon your past and present experiences within groups in order to realize the impact it has had within your life.

(Dwayne and Mirth video II)