Organizational Behavior (Stephen Robbins)

OB IS FOR EVERYONE

What does organizational

culture do?

Is culture the same as

rules?

What kind of

organizational culture

would work best for you?

Are there positive

approaches to change?

How do you respond to

change?

What makes organizations

resist change?

when David Dingwall was appointed president

and CEO of the Ottawa-based Royal Canadian

Mint in March 2003, the mint was a for-profit

Crown corporation that had a $7-million deficit.^1 He

described the culture that led to this deficit: “There was

no discipline. There was no focus. There was no account-

ability and there was no transparency.” He also noted

that there was no urgency in wanting to help customers.

Dingwall noted that business processes “were

essentially broken or non-existent. We had a very unprof-

itable jewellery line business; I’m talking about high-end

jewellery that you or I would not buy for our spouses

because we’d have to mortgage our house. In our for-

eign circulation coin we were floundering.” Dingwall

observed that the organization’s culture needed to be

changed if it was to become a profitable business.

Although Dingwall resigned amidst controversy in

September 2005, he was later cleared of wrongdoing.

Most reports reviewing his performance agreed that he

had significantly turned around the fortunes of the Mint.

Auditor General Sheila Fraser, in her 2005 performance

review of the Mint, gave “good marks to management

for introducing a ‘lean enterprise’ initiative to control

costs.” After completing a government-requested inves-

tigation in spring 2006 of the circumstances surrounding

Dingwall’s severance pay, George Adams, a retired

Ontario Superior Court judge, reported that as head of

the Mint Dingwall “had performed his job well.” What

did Dingwall do to change the culture of the Mint?

In this chapter, we show that every organization has

a culture. We examine how that culture reveals itself

and the impact it has on the attitudes and behaviours of

members of that organization. An understanding of

what makes up an organization’s culture and how cul-

ture is created, sustained, and learned enhances our

ability to explain and predict the behaviour of people at

work. We also look at different approaches organiza-

tions take to managing change.

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WHATISORGANIZATIONAL CULTURE?

When Henry Mintzberg, professor at McGill University and one of the world’s leading
management experts, was asked to compare organizational structure and corporate cul-
ture, he said, “Culture is the soul of the organization—the beliefs and values, and how
they are manifested. I think of the structure as the skeleton, and as the flesh and blood.
And culture is the soul that holds the thing together and gives it life force.”^2
Mintzberg’s metaphor provides a clear image of how to think about culture. Culture
provides stability to an organization and gives employees a clear understanding of “the

1 What is the purpose of

organizational culture?

Royal Canadian Mint

http://www.mint.ca

Henry Mintzberg

http://www.henrymintzberg.com