it often consumes employees’ lives. Its charismatic
leaders frequently expect to create disciples rather
than followers, resulting in a work climate that is
almost “cult-like.” Apple under Steve Jobs, particularly
in its early years, is an example of a communal cul-
ture, as are Hewlett-Packard Canada, Johnson &
Johnson Canada, and consulting firm Bain &
Company. HP historically has been large and very
goal-focused. Yet it is also a company known for its
strong family feel. The “HP Way” is a set of values the
company has developed that govern how people
should behave and interact with each other. The HP
Way’s value of trust and community encourages loy-
alty to the company. The company returns that loyalty
to employees as long as they perform well. Many
start-ups exhibit a communal culture. During the
height of the dot-com era, 20-something employees
thought nothing of working around the clock, even
sleeping and eating at their workplaces.
How important is the culture-person fit? In a study of
accounting firms, new employees whose personalities meshed
with the company were 20 percent less likely to leave their jobs
in the first three years than those who did not fit as well.^32 OB
in Action—Finding Your Culture provides a checklist to help you
find the culture in which you might be most comfortable.
THELIABILITIES OFORGANIZATIONAL CULTURE
When David Dingwall took over as president and CEO of the Royal Canadian Mint, he faced a
large deficit and inefficient business processes.^33 Dingwall recognized the need to streamline
the Mint’s activities, but also knew that he might face great resistance by employees. The cul-
ture of the organization before he arrived was generally accepted by the employees.
Dingwall knew that part of what he had to do to change the culture was to get the employ-
ees onside with the changes. “I gave a commitment to all of our employees that nobody, but
nobody, would lose their job as a result of the lean enterprise. And some of them didn’t believe
that, but when they saw that we were walking the walk, that we weren’t laying people off as
a result of lean enterprise (practices), then it became more believable. We started to see the exhil-
aration from employees in terms of improving our processes,” he says.
At the end of 2004, just 20 months after Dingwall started, the Mint was set to have an
unprecedented good year. The Winnipeg plant doubled its staff during 2004, allowing it to oper-
ate day and night. Revenue was $330 million, considerably higher than the Mint’s $250-million
revenue in 2003. Net income for 2004 was $13 million, wiping out the deficit Dingwall faced when
he started. How does culture affect an employee’s willingness to contribute to the organization?We have treated organizational culture in a nonjudgmental manner thus far. We have not
said that it is good or bad, only that it exists. Many of its functions, as outlined, are
valuable for both the organization and the employee. Culture enhances organizational
commitment and increases the consistency of employee behaviour. These are clearly
benefits to an organization. From an employee’s standpoint, culture is valuable because
it reduces ambiguity. It tells employees how things are done and what is important.
However, we should not ignore the potentially dysfunctional aspects of culture, especially
of a strong culture, on an organization’s effectiveness. Focus on Ethicsdiscusses how
Enron’s pressure-cooker culture led to the company’s ultimate collapse.
Chapter 10 Organizational Culture and Change 343OB IN ACTION
Finding Your Culture
How do you know which culture is a good fit for you?
✔ You are cut out for a networked cultureif
you possess good social skills and empathy; you
like to forge close, work-related friendships; you
thrive in a relaxed and convivial atmosphere;
and you are not obsessed with efficiency and
task performance.
✔ You are well matched to a mercenary culture
if you are goal-oriented, thrive on competition,
like clearly structured work tasks, enjoy risk-tak-
ing, and are able to deal openly with conflict.
✔ You are likely to fit in well in a fragmented
cultureif you are independent, have a low
need to be part of a group atmosphere, are ana-
lytical rather than intuitive, and have a strong
sense of self that is not easily undermined by
criticism.
✔ You might fit in with a communal cultureif
you have a strong need to identify with some-
thing bigger than yourself, enjoy working in
teams, and are willing to put the organization
above family and personal life.4 Can organizational
culture have a
downside?