Organizational Culture
C H A P T E R
Organizational Culture
Learning Objectives
After reading this chapter, you should be able to: • Describe the elements of organizational culture. • Discuss the importance of organizational subcultures. • List four categories of artifacts through which corporate culture is communicated. • Identify three functions of organizational culture. • Discuss the conditions under which cultural strength improves corporate performance. • Discuss the effect of organizational culture on business ethics. • Compare and contrast four strategies for merging organizational cultures. • Identify five strategies to strengthen an organization’s culture.
16
S I X T E E N
496
T
o an outsider, PeopleSoft is one of the loopiest places on the planet. The Pleasanton, California, business management software company has nerf ball shootouts and minigolf tournaments in the hallways. Dress-down day is every day of the week. A white collar is usually a T-shirt. The bagels and gourmet coffee are free. Having fun is so ingrained that many employees—called PeoplePeople—say it’s the best place to have a bad day. PeopleSoft also values egalitarianism— treating everyone with respect and minimal status differences. Executives don’t have secretaries, special perks, or grandiose offices. “Don’t kiss up and slap down,” PeopleSoft cofounder Dave Duffield reminds everyone. In other words, give the bagel delivery guy the same respect as the company president. PeopleSoft is also extreme on technology and flexible customer service. Job applicants use an automated voice response system to accept their job offer. On the first day of work, newcomers are outfitted with a notebook computer and a backpack. They also receive tools for posting personal web pages on the company intranet. “There’s an unstated expectation that this is how things are done at the company,” says Steve Zarate, PeopleSoft’s chief information officer. This corporate culture has contributed to Nerf ball
Organizational Culture
Learning Objectives
After reading this chapter, you should be able to: • Describe the elements of organizational culture. • Discuss the importance of organizational subcultures. • List four categories of artifacts through which corporate culture is communicated. • Identify three functions of organizational culture. • Discuss the conditions under which cultural strength improves corporate performance. • Discuss the effect of organizational culture on business ethics. • Compare and contrast four strategies for merging organizational cultures. • Identify five strategies to strengthen an organization’s culture.
16
S I X T E E N
496
T
o an outsider, PeopleSoft is one of the loopiest places on the planet. The Pleasanton, California, business management software company has nerf ball shootouts and minigolf tournaments in the hallways. Dress-down day is every day of the week. A white collar is usually a T-shirt. The bagels and gourmet coffee are free. Having fun is so ingrained that many employees—called PeoplePeople—say it’s the best place to have a bad day. PeopleSoft also values egalitarianism— treating everyone with respect and minimal status differences. Executives don’t have secretaries, special perks, or grandiose offices. “Don’t kiss up and slap down,” PeopleSoft cofounder Dave Duffield reminds everyone. In other words, give the bagel delivery guy the same respect as the company president. PeopleSoft is also extreme on technology and flexible customer service. Job applicants use an automated voice response system to accept their job offer. On the first day of work, newcomers are outfitted with a notebook computer and a backpack. They also receive tools for posting personal web pages on the company intranet. “There’s an unstated expectation that this is how things are done at the company,” says Steve Zarate, PeopleSoft’s chief information officer. This corporate culture has contributed to Nerf ball