Schermerhorn Exploring Management 5th edition Instructor’s Manual
Copyright © 2016 John Wiley & Sons, Inc. 8-4
• SEE FIGURE 8.1 What Are the Main Components of Organizational Culture?
✓ With a bit of effort, one can easily identify the organizational culture. The most
visible part is the observable culture. It is shown in the stories, rituals, heroes, and
symbols that are part of the everyday life of the organization. The deeper, below-the-
surface part is the core culture. It consists of the values that influence the beliefs,
attitudes, and work practices among organizational members.
• The observable culture is what you see and hear as an employee or customer
• Includes how people dress at work, arrange their offices, speak to and behave toward
one another, and talk about and treat their customers. It is found in stories, heroes,
rituals, and symbols.
DISCUSSION TOPIC
Ask students to individually indentify the elements of observable culture (stories, heroes,
rituals, and symbols) of an organization they are familiar with such as an employer or your
college. Ask them to share their thoughts in a small group and have the small groups report
to the class.
• Core culture is found in the underlying values of the organization
✓ Core Values are beliefs and values shared by members of the organization
➢ Examples include performance excellence, innovation, social responsibility
worker involvement, customer service and teamwork.
➢ Frequently included in mission statements
• Value-based management supports a strong organizational culture
✓ Workplace spirituality includes practices that create meaning and community. It
does not necessarily include religion.
✓ Common elements are meaningful work, respect for diversity, work-life balance,
ethical behavior
DISCUSSION TOPIC
The public ethical collapse of Enron in late 2001 was soon followed by numerous reports of
other organizations’ ethical failures, large and small. In many instances, these ethical failures
were eventually attributed to (a) organizational cultures that did not genuinely value ethical
behavior and/or (b) leaders at the top of the organizational hierarchy who did not serve as an
effective role model of ethical behavior. This is certainly the case with Enron. Discuss with the
students their perceptions/knowledge of what happened at Enron, and the lessons/ insights that
they have personally drawn from Enron’s ethical collapse.
8.1 Questions for discussion suggested answers
1) Can an organization achieve success with a good organizational design but a weak
organizational culture?
Companies with strong cultures are much more likely to outperform companies without
that advantage, whether organizational design is strong or weak. Culture affects
processes, motivation and execution in a direct fashion. A weak culture will adversely