Study guide: Organisational Culture and Values

Course Outline

  1. Organisational Culture and Its Layers
  2. Socialisation into Organisational Culture
  3. Organisational Subcultures and Their Effects
  4. Factors Shaping Organisational Culture
  5. The Nature of Values
  6. The Schwartz Value System
  7. Values in Business and Organisations

1. Organisational Culture and Its Layers

Key Concepts & Definitions

  • Organisational culture: Schein, 2004 - The shared basic assumptions and beliefs that operate unconsciously and shape membersโ€™ taken-for-granted view of their organisation and its environment.

โ˜… Must-know

๐Ÿ“Œ Organisational values are often broad and explicitly stated, whereas beliefs are more specific and can be inferred from how members discuss organisational issues.

  • Schein identifies four cultural layers:
    • values
    • beliefs
    • behaviours
    • taken-for-granted assumptions

Further detail

  • Culture can exist at four levels:

    • national
    • regional
    • organisational
    • professional
  • Organisational behaviours include prescribed routines and structures as well as informal expectations such as dress codes and patterns of social interaction.

  • Taken-for-granted assumptions form the core of culture, express a shared understanding of how things are done, and can be shaped by collective experiences such as organisational crises. - Schein, 2004

2. Socialisation into Organisational Culture

Key Concepts & Definitions

  • Socialisation: The process through which newcomers learn the less obvious rules about acceptable and unacceptable behaviour in an organisation.

โ˜… Must-know

๐Ÿ“Œ In loose cultures, newcomers are largely left to observe and adopt othersโ€™ behaviour, whereas strict cultures explicitly induct members into expected behaviours.

๐Ÿ“Œ Strong organisational cultures can provide structure and comfort for some employees but feel stifling or controlling to others, so strength alone does not make a culture beneficial or harmful. - Kuenz, Inside the Mouse: Work and Play at Disney World, 1995

Further detail

  • Disneyland recruits undertake a 40-hour training programme covering its history, philosophy, regulations and work procedures. - van Maanen, 1991

  • Disneyland socialisation includes detailed rules for employee appearance, customer interactions, role performance and the use of costumes, alongside supervisory monitoring and informal peer pressures. - van Maanen, 1991

Memory Hook

Loose rules leave newcomers to observe; strict rules explicitly induct them.

3. Organisational Subcultures and Their Effects

Key Concepts & Definitions

  • Subculture: A culture held by a group within an organisation that differs from the organisationโ€™s main culture.

โ˜… Must-know

  • Common forms of subculture include (Pettinger, 2007):
    • canteen cultures
    • elites and cliques
    • informal norming

Further detail

  • A task-oriented subculture in a research and development team can help the team perform appropriately within an otherwise hierarchical organisation.

  • Elite subgroups can harm an organisation when they direct critical resources towards themselves, and their influence can generate resentment among other members.

  • Informal norming occurs when people are pressured to adopt nearby colleaguesโ€™ attitudes and norms instead of organisational norms, potentially creating conflict.

  • UK police subcultures have been associated with condoning misogyny and discrimination and with assumptions about terrorists that contributed to anti-terrorist units pursuing and shooting the wrong person. - Dodd

4. Factors Shaping Organisational Culture

Essential Points

  • Drennanโ€™s 12 factors shaping organisational culture are dominant leadership; business history and tradition; technology and products or services; industry, sector and competition; customers and their expectations; company expectations based largely on past performance; information and control systems; legislation and the wider business environment; procedures and policies; reward systems and performance measurement; organisation and resources; and goals, values and beliefs reflected in objects, actions and language. - Transforming Company Culture, 1992

5. The Nature of Values

Key Concepts & Definitions

  • Values: Nystrom, 1990 - Enduring normative beliefs about proper standards of conduct and preferred or desired outcomes.

โ˜… Must-know

๐Ÿ“Œ People can hold multiple values that come into tension, and different situations can activate different values, making behaviour appear inconsistent with stated values. - Rokeach, 1968

  • Values are generally enduring, relate to how people behave and concern desired outcomes.

  • There is no value-free organisation or activity; businesses described as not value-based may still be guided by values such as power, wealth, economic growth or competition.

Further detail

  • Values can motivate people to act in pursuit of outcomes they consider desirable. - Schwartz and Bilsky, 1987

Memory Hook

Values shape desired outcomes and motivation, which in turn influence behaviour.

6. The Schwartz Value System

Key Concepts & Definitions

  • Schwartz Value System: Schwartz and Bilsky, 1987 - A dynamic, interdependent system in which some value types are compatible and others oppose one another.

Essential Points

๐Ÿ“Œ The two opposing dimensions in the Schwartz Value System are self-enhancement versus self-transcendence and openness to change versus conservation. - Schwartz and Bilsky, 1987

  • The system identifies 10 broad value types (Schwartz et al., 2012):

    • power
    • achievement
    • hedonism
    • stimulation
    • self-direction
    • universalism
    • benevolence
    • tradition
    • conformity
    • security
  • The value types form four groupings (Schwartz and Bilsky, 1987):

    • self-enhancement: power, achievement and hedonism
    • self-transcendence: universalism and benevolence
    • openness to change: self-direction, stimulation and hedonism
    • conservation: conformity, tradition and security

Memory Hook

Self-enhancement opposes self-transcendence; openness to change opposes conservation.

7. Values in Business and Organisations

Key Concepts & Definitions

  • Organisational values: Values shared by enough people in an organisation to characterise it, even though not every member shares every value.

Essential Points

๐Ÿ“Œ Power values concern wealth, social status and authority, whereas self-direction values concern independence and shaping oneโ€™s own destiny.

  • Managers of family-owned businesses, especially businesses passed down over several generations, may be motivated by tradition and filial responsibility.

  • People motivated by achievement may want to perform well and be recognised for doing so without being chiefly concerned with money or social status.

  • Small-business owner-managers may combine achievement values in implementing environmental programmes with benevolence values such as leaving a better world for their children and providing a good working environment. - Schaefer, Williams and Blundel, Individual values and SME environmental engagement, 2020

  • Organisational values tend to remain stable as employees leave and join, partly because new employees may be selected for shared values or socialised into them.

Synthesis Tables

Schwartz Value Groupings

GroupingValue types
Self-enhancementPower, achievement, hedonism
Self-transcendenceUniversalism, benevolence
Openness to changeSelf-direction, stimulation, hedonism
ConservationConformity, tradition, security

Test yourself

Take a 20-question practice quiz on Organisational Culture and Values, with every answer explained.

1. What best describes organisational culture in Scheinโ€™s framework?

2. Which set names Scheinโ€™s four layers of organisational culture?

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Study with flashcards

Memorize the key concepts of Organisational Culture and Values with 47 flashcards.

According to Schein (2004), what is organisational culture?

Shared basic assumptions and beliefs that unconsciously shape membersโ€™ taken-for-granted view of their organisation and its environment.

According to Schein (2004), what are the four layers of organisational culture?

Values, beliefs, behaviours, and taken-for-granted assumptions.

How do organisational values differ from beliefs in how they are expressed?

Values are often broad and explicitly stated, while beliefs are more specific and inferred from membersโ€™ discussions of organisational issues.

See the flashcards โ†’

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