1. Define organizational culture and discuss its three layers. Organizational culture represents the shared assumptions that a group holds. It influences employees' perceptions and behavior at work. The three layers of organizational culture include observable artifacts, espoused values, and basic assumptions. Artifacts are the physical manifestations of an organization's culture. Espoused values represent the explicitly stated values and norms that are preferred by an organization. Basic underlying assumptions are unobservable and represent the core of organizational culture.
2. Discuss the difference between espoused and enacted values. Espoused values represent the explicitly stated values and norms that are preferred by an organization. Enacted values, in contrast, reflect the values and norms that actually are exhibited or converted into employee behavior. Employees become cynical when management espouses one set of values and norms and then behaves in an inconsistent fashion.

Chapter Scan

Corporate cultures provide identifying characteristics and values for organizational members to appreciate and learn. Cultures are distinguished by artifacts, values, and basic assumptions. The socialization process is the entry stage in an organization that provides clues about its culture. Cultures are difficult to change, yet change is necessary in some instances for survival. Organizations need an adaptive culture in order to respond effectively to the changing environment.

LEARNING OBJECTIVES

After reading this chapter, you should be able to do the following:

1. Define organizational culture and explain its three levels.
2. Identify the four functions of culture within an organization.
3. Explain the relationship between organizational culture and performance.
4. Contrast the characteristics of adaptive and nonadaptive