1. Chapter 18
Organizational Cultures and
Cultural Diversity
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2. 18.1
Learning Objectives
After reading this chapter, you should be able to:
• Describe the core elements of a culture
• Compare and contrast four types of organizational
culture
• Discuss several types of subculture that may exist in
organizations
• Explain why managing cultural diversity is important
and describe several activities required to manage it
successfully
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3. 18.2
The Culture Iceberg
•Practices
Observable •Narratives
Elements of •Language
Culture •Symbols
•Socialization
Hidden •Norms
Elements of
Culture
•Values
•Assumptions
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Adapted from Figure 18.1

4. 18.3
Framework of Types of Cultures
Flexible
Clan Entrepreneurial
culture culture
Formal Control Orientation
Bureaucratic Market
culture culture
Stable
Internal External
Focus of Attention
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Adapted from Figure 18.2

5. 18.4
Dimensions for Describing Industry Cultures
Employee-oriented: Results-oriented:
Concern focuses on people Concern focuses on
doing the work achievement of goals
Parochial: Professional:
Employees identify with Employees identify with
organization type of work or profession
Open system: Closed system:
Many types of people feel Type of person who fits is
comfortable in organization narrowly specified
Loose Control: Tight Control:
Codes of conduct allow for Written and unwritten rules
much variation among exert tight control over
employees behavior
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Adapted from Figure 18.4

6. 18.5
Organizational Goals for Managing Diversity
Legal
Compliance
Creating a Creating
Positive Economic
Culture Value
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7. 18.6
Phases of Diversity Management Change Efforts
Understanding the
goals to be achieved
Assessing the current organization
and understanding its history
Designing a strategic plan
Implementing targeted
change efforts
Monitoring change and
making adjustments
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Adapted from Figure 18.6

8. 18.7
Components of Texaco’s Cultural Change Initiatives
Recruitment
and Hiring
Identifying and Ensuring Fair
Developing Treatment
Talent
Holding Improving
Relationships
managers
with External
accountable Stakeholders
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Adapted from Table 18.2