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Organizational Culture

Schein defines organizational culture as: "A pattern of shared basic assumptions that the group learned as it solved its problems of external adaptation and internal integration, that has worked well enough to be considered valid and therefore, to be taught to mew members as the correct way to perceive, think, and feel in relation to those problems" (Schein, 1992, p. 12).
The culture of the organization will determine the outcome of any change initiative. Organizations are a blend of several different cultures, including the national culture, the industry culture, the founding culture of the organization, and the subcultures that often develop, all of which contribute to the overall diversity found within the organization. To effectively bring about change, it is necessary to understand the impact that this combination of cultures has on the organization and the resulting diversity of perspectives that can either help or hinder the organization in its change efforts (Norton & Fox, 1997).
Strategies for embedding culture (Schein, 1992):
The leader attends to, measures, rewards, and is accountable for promoting employee behaviors that are consistent with the new assumptions.
The leader reacts to critical incidents in ways that support the new assumptions.
The leader models and coaches others to use new behaviors.
New criteria for recruitment, promotion, retirement, and dismissal are established in light of the new assumptions.
Attention is paid to the formal and informal socialization of new employees that is consistent with new assumptions.
Systems and procedures are revised to support new assumptions.
The organization is redesigned and restructured in a manner consistent with new assumptions.
Design of physical space may need to be altered.
Stories and myths about key people and events are circulated that depict the new assumptions.
Formal statements, charters, ethics codes, and so on are rewritten where necessary to support the new assumptions.
Many current diversity efforts, despite good intentions, seem to segment and polarize members if the organization into separate interest groups and worse, to separate the goals of the various identity groups from the organization's goals (Norton & Fox, 1997).
It is imperative that the organization's environment and culture allow all employees comfortably and openly to discuss issues that offend them or hamper them in their work. Such openness allows appropriate assessment of the issues and leads the way to positive changes that will create and maintain an environment in which all can contribute to the best of their abilities (Coleman, 1994).
"While every organization is and must be treated as a unique entity, the following five steps form a good starting point for building an effective and sustainable organizational culture change strategy:

Identify the Organizational Imperative
Build a Core of Advocates for Change
Build on the Successes of Pockets of Readiness
Coach the Leaders
Change the System (Miller, 1998).
The following key strategies can assist HR in building an organizational culture that supports high performance and inclusion:
Partner with senior managers of other departments and functions to facilitate alignment and focus on the organization's mission, vision, desired culture and strategic plan. This includes providing training, coaching and consultation to line managers and staff and modeling inclusive behaviors and skills for high performance.

Ensure that the organization's infrastructure enables its entire people to perform at their maximum ability by addressing questions such as:

Does the organizational structure enable people to work to their potential?
Do people receive the information and management they need to do their best work?
Are people being developed on a path of continuous skill improvement so their performance today will be even better tomorrow?

Develop and implement measurement systems that reward people for behaving in ways that support the organization.

Review and revise incentive and compensation programs; and discard outmoded personnel evaluation processes.

Integrate inclusive people-policies and practices into the organization's everyday activities, and make sure they are tied to the bottom line--the organization's ability to accomplish its mission and goals (Miller, 1998).
"A management team that is diversified will attract a diverse workforce" (Hildebrand, 1996).
"Culture change is possible if certain steps are followed. These are reviewing the prevailing attitudes and behaviors of the workforce, analyzing the reward and punishment system, creating or adjusting the reward structure and process, conducting the business behavior modification training, introducing the new system, and regularly monitoring the workplace to assess the impact" (Owens, 1997).
"The culture change scenario is to:
Survey your people first to determine where you are.
What are the prevailing attitudes?
What kind of behavior do they think is rewarded and punished?
What are the problems?
What changes do they recommend?
Conduct an analysis of the reward and punish structure. Consider having it done on the outside so the analysts won't have a vested interest in the history or politics of the organization.
What tools are available to reward certain behaviors?
Who can use those reward systems?
How are they currently used?
What are the rewards? (This one isn't as obvious as you might think).
What would be required to adopt employee suggestions discovered in the survey?
How should the newly adjust formal and informal policies be communicated and reinforced?
Are diversity, risk taking and customer satisfaction prominent on the list?
Is the method for measuring these critical factors known?
Create or modify the reward structure, process and procedures.
Implement the business behavior modification training. Again, consider having it done by an outside firm that generally will be perceived as being above the fray. Make sure the new reward system is fully explained as a part of the training.
Implement the new system; issue clarification and impact bulletins frequently.
Is it working?
How do we know?
Who's doing well?
What does well mean?
Indicate what people have done and how they have been rewarded.
Look at unit results and use the employee/manager survey to measure impact.
Adjusting for other initiatives and impacts, is there apparent change and measurable impact on critical business performance measures such as revenue, income, sales, market share and product development?
Do people understand the new process?
Do they understand results and behavior expectations" (Owens, 1997)
Attributes of Inclusive Organizations (Workplace Diversity Network, 2000):
Demonstrated Commitment to Diversity
Holistic View of the Employees and the Organization
Access to Opportunity
Accommodation for Diverse Physical & Developmental Abilities
Equitable Systems for Recognition, Acknowledgement & Reward
Shared Accountability and Responsibility
360 degrees Communication and Information Sharing
Demonstrated Commitment to Continuous Learning
Participatory Work Organization and Work Process
Recognition of Organizational Culture and Process
Collaborative Conflict Resolution Processes
Demonstrated Commitment to Community Relationships (Workplace Diversity Network, 2000).