The quality dimension of organization culture is an element of organization culture that focuses on making sure a product, in the opinion of the customer, does what it is supposed to do. Organizations with such a culture tend to focus on communicating to customers their focus on quality and explaining how quality processes operate within the organization. Management generally hopes to benefit from such cultural emphasis by earning customer loyalty and repeat purchases because of customer satisfaction with products or services. An example of an organization with a strong quality dimension in its organization culture is KB Home, a home builder that operates mainly in 18 states in the southwest and southeast parts of the United States. KB Home uses its website to communicate to customers its focus on quality. At KB Home, the quality of the houses it produces is especially important: The company has a “100% Satisfied Pledge,” which offers home buyers 10 quality construction checkpoints.

The ethics dimension of organization culture is a facet of organization culture that focuses on making sure that an organization emphasizes not only what is good for the organization but also what is good for other human beings. Until recently, an ethics dimension has been unwisely ignored.27

Ethics training is arguably the most commonly used method for developing the ethics dimension of organization culture.28 This training normally focuses on developing a common understanding throughout the organization of the role ethics plays in organizational operations. However, ethics training does not guarantee that employees will choose the ethical behavior in every situation. Such training will, however, start a useful dialogue about correct and incorrect behavior in various organizational situations. In essence, ethics training is designed to give employees a usable framework for ethical reasoning that will help them make ethical choices in various organizational situations after training ends.

What can managers do to increase the probability that ethics training influences organization members to act ethically over time? First, after ethics training concludes, management can provide employees with a means for making ethical queries anonymously. Some organizations provide a hotline that employees can call to get advice about ethical dilemmas. Management can also try to make sure that organization members act ethically after ethics training concludes by establishing methods for reviewing the topics covered in ethics training. For example, a company can use its intranet, publish brochures, and even use screen savers to continually remind employees about the issues covered in ethics training. Another tactic management can use is to promote employees who behave ethically. Rewarding past ethical behavior is a powerful way to increase the probability that organization members will act ethically in the future.

The innovation dimension of organization culture is an aspect of organization culture that encourages the application of new ideas to improve organizational processes, products, or services. Innovation is a major source of organizational change and improvement. However, once an innovation dimension is established, management cannot assume it will continue to exist as time passes. An innovation dimension of organization culture can become significantly weakened or even disappear if it is not properly nurtured.

The 3M Company is known for producing thousands of imaginative products, which emerge from a culture widely regarded as innovative and creative. By its nature, invention is commonly a disorderly and inefficient process. Historically, 3M has allowed researchers to spend years testing products with little regard for the efficiency of the process.

Consider the invention of the Post-it note. The 3M inventor, Art Fry, fiddled with the idea for several years before the product went into full production in 1980. But then, management began making changes to the culture to emphasize efficiency. What the company didn’t realize was that, in emphasizing efficiency, innovation was being squeezed out. Once 3M management realized that this innovation focus was being damaged, it took steps to somewhat deemphasize the focus on efficiency and to spend more on research and development in an effort to reinvigorate its culture of innovation, long considered to be the lifeblood of the company.29

The spirituality dimension of organization culture is an aspect of organization culture that encourages organization members to integrate spiritual life and work life. A spiritual awakening seems to be occurring in the American workplace, and many managers are encouraging the development of this trend.30 Managers seem to be doing so because of their belief that a spiritually humanistic work environment is beneficial for both employees and the organization. According to the logic of such managers, a spiritually reflective work environment will be personally satisfying to organization members, who will thereby become more productive and creative. On the other hand, such managers tend to believe that a workplace without a spiritual dimension will normally result in unsatisfied organization members, who will become frustrated and thereby consistently absent from the workplace.31 Organization cultures that have a spiritual dimension typically do not focus on one specific type of spiritual belief or religion but instead emphasize the acceptance of whatever spiritual focus an organization member might possess. In emphasizing a spiritual focus, organizations create opportunities for spiritually based activities such as offering prayer, performing meditation, reading sacred texts, listening to worship music, and having objects in the workplace as reminders of one’s spiritual beliefs.

The diversity dimension of organization culture is a component of organization culture that encourages the existence of basic human differences among organization members. Such differences can be in ethnicity, religion, physical ability, and/or sexual orientation. The diversity dimension is a mainstay of modern organization culture primarily because managers are anxious to reap diversity-related advantages such as an increased number of perspectives on how to solve problems and how to better relate to diverse customers.

Toyota’s American division recently concluded that its corporate culture lacks diversity.32 Organization members as a group were thought to be too homogeneous, thereby depriving management of the benefits of a diverse workforce. To solve this problem, Toyota is trying to make the population of organization members more diverse by hiring people from other industries and companies. These hirings, however, are being done carefully. Management does not want these new employees ruining its present and otherwise healthy corporate culture.

The customer dimension of organization culture is a facet of organization culture that focuses on catering to the needs of those individuals who buy the goods or services the organization produces. One recent survey indicates that 80 percent of executives believe they are doing an excellent job of serving customers, whereas only 8 percent of their customers agree.33 Perhaps because of such survey results along with the realization of the calamity that such results could cause in organizations, many managers are strengthening their organization culture’s focus on customers.

Some organizations, however, are well known for their enduring commitment to customer satisfaction, have achieved much success because of it, and are expected to continue benefiting from it in the future. For example, many believe that Apple’s success over the years is primarily due to its enduring commitment to know what customers want even before customers know it themselves. As another example, General Electric CEO Jeffrey Immelt has initiated “dreaming sessions” to brainstorm with key customers and develop a forward-looking view of customer needs.

At the heart of any organization’s culture, by definition, are its values. From a societal viewpoint, a value is a person’s or social group’s belief in which they have an emotional investment. In society, values can be “for” something, such as excellent health care for all of society, or “against” something, such as violence among society members. In organizations as well, values can be for things, such as hiring talented workers, rewarding excellent performance, and developing leadership skills, or against things, such as polluting the environment, discriminating in hiring practices, and maintaining the status quo.

Organizational values are reflected in organizational characteristics, including strategy, structure, and processes. Values are also reflected in the way leaders lead as well as in organizational rules, reward systems, policies, and procedures. More and more, modern managers are crafting values statements to clearly communicate cultural values held throughout the organization. A values statement is a formally drafted document that summarizes the primary values within the culture of a specific organization. A values statement gives managers the opportunity to effectively and efficiently communicate the values that drive the organization and thereby help increase the probability that appropriate values will influence organization member behavior. Figure 16.4 contains a statement of values for Microsoft.

Social psychologist Michael O’Malley studies organization culture and, in his spare time, practices beekeeping. Indulging in his hobby has led O’Malley to study the habits of bees and, in his book The Wisdom of Bees: What the Hive Can Teach Business about Leadership, to apply those habits to management practices in building organizational values. For example, O’Malley says that older bees in the hive “mentor” younger bees. Culture is also important to the hive’s overall productivity and well-being, and when colonies from two hives occasionally merge, an “enculturation” process goes on to ensure the success of the merger.35

An organizational myth is a popular belief or story that has become associated with a person or institution and is considered to illustrate an organization culture ideal. Myths are used to explain organizational beginnings or other events that are of great significance to the organization. Myths stimulate organization members to do a good job and provide the logic for actions taken. The events reported in myths never actually happened, but they nevertheless serve as an inspirational foundation for behavior. Organizational myths are commonly perpetuated in organizations to enhance organization member pride in belonging and overall commitment to the organization.

One of the most famous myths in business history centers on Lee Iacocca and how he “saved” Chrysler Corporation from bankruptcy.37 Iacocca took over as chairman of Chrysler Corporation in 1979. At that time, Chrysler was in serious crisis. The company was losing money, had acquired unprofitable companies, and was producing low-quality products that necessitated huge, expensive product recalls. Iacocca took bold, nontraditional actions to save the company: He negotiated government backing of the company, took charismatic personal ads to the marketplace asking for customer support, and negotiated significant concessions with the United Auto Workers Union to dodge bankruptcy. Word began to quickly spread that Iacocca had single-handedly saved the company, which of course was not true. Many people were involved in saving Chrysler. However, the myth of Iacocca saving the company single-handedly helped create the Chrysler cultural value of trust and support for Chrysler leadership.

An organizational saga is a narrative describing the adventures of a heroic individual or family significantly linked to an organization’s past or present. In general, the purpose of a saga is to identify and perpetuate the organization’s shared values. Organizational sagas usually reveal important historical facts such as early pioneers and products, past triumphs and failures, and the leaders who founded or transformed the company.

Mary Kay Ash was the founder of Mary Kay Cosmetics and one of the most successful entrepreneurs in the history of the United States. Information on the website of the company she founded describes a saga related to Mary Kay Cosmetics’s company history. This information serves as an inspiration to all organization members because it lets them know that significant success is obtainable by all within the company through hard work, dedication, and self-confidence.

Managers at all levels can become involved in organizational storytelling, the act of passing along organizational myths and sagas to other organization members. From the example of Mary Kay Ash, it is obvious that modern managers can tell stories not only via word of mouth but also via the Internet.

The language used in organizations often indicates the organization’s shared values. Some companies reveal how they view the competition by repeatedly using phrases such as “Let’s be #1 in the marketplace” or how they feel about technology by repeatedly using phrases such as “Win through technology.” Still other organizations repeatedly use the phrase “The customer is king” to emphasize how they feel about customer satisfaction. The language used at Walt Disney Companies reflects organizational values that are particularly noteworthy. At Walt Disney, rather than being called an employee, everyone is called a “member of the cast.” This terminology emphasizes that rather than simply working, organization members should think of themselves as always being on stage and always needing to give customers the best performance possible. Many companies use slogans internally and externally through advertising to convey important organizational values. Figure 16.5 presents several well-known slogans and the companies that use them to convey important organizational values.

An organizational symbol is an object that has meaning beyond its intrinsic content. Symbols provide a road map indicating what is important in a particular organization. Some companies use impressive buildings to convey company strength. Other companies use logos, flags, and coats of arms to convey the importance they place on certain ideas or events. As examples, Prudential Life Insurance Company uses the Rock of Gibraltar to symbolize the company’s dependability, strength, and unwavering commitment to its customers, and McDonald’s uses the clown Ronald McDonald to symbolize the child-friendliness and fun available at McDonald’s restaurants.

An organizational ceremony is a formal activity conducted on important organizational occasions. Such occasions could include openings of new stores, anniversary dates of when employees were hired, and employee promotions. Perhaps one of the most well-known organizational ceremonies is the ceremony celebrating successful sales campaigns at Mary Kay Cosmetics. At the company’s sales celebrations, everything—not just the decorations but also the sales prizes, including the automobiles awarded—has a significance.

Rewards modify behavior in some way in most organizations.39 Some rewards come from within the organization and can include compensation, satisfying work, and verbal recognition. Rewards can also come from outside the organization and can include comments from customers, competitors, and suppliers. Management should continually identify and reward those individuals who uphold the values of the organization. Rewarding people for engaging in behavior that reflects the important values of the organization culture is critical in increasing the probability of organizational success.