Organizational Culture: An Examination of Its Effect on the Internalization Process and Member Performance

Organizational culture permeates organizational life in such a way as to influence every aspect of the organization (Saffold, 1988). There are many examples of recognizable organizational cultures in the United States. General Motors, IBM, and I. E. DuPont Nemours are just a few of the organizations that communicate a strong sense of culture not only to their members, but to outsiders as well (Peters & Waterman, 1982; Rodgers, 1969). These organizations, and others like them, maintain a strong identity that is constantly communicated to their members. It has been suggested that organizational culture affects such outcomes as productivity, performance, commitment, self confidence, and ethical behavior (Deal & Kennedy, 1982; Denison, 1984; Ouchi, 1981; Posner, Kouzes, & Schmidt, 1985; Pritchard & Karasick, 1973; Sathe, 1985). However, little has been done to develop theory that attempts to explain the process through which individuals are affected by the organization's culture. Instead, a large portion of the research has concentrated on the "strong vs. weak" culture dichotomy (Deal & Kennedy, 1982), suggesting that culture manifests varying degrees of influence over the members of an organization. While there have been attempts to examine culture's influence over the cognitive process through which individuals interpret their environment (Denison, 1990; Harris, 1989), further work in this area is needed. However, research into the transmission of cultural values and norms remains as a neglected area in the study of organizational culture (Ostroff & Kozlowski, 1992). It is the object of this research to present a model of organizational culture that examines the effect on the cognitive process and helps explain the influence that organizations may have in creating and maintaining a distinct and recognizable culture. Organizational Culture Organizational culture has been defined as the "normative glue" that holds an organization together (Tichy, 1982, p. 63). Forehand and von Gilmer (1964) suggest that culture is the set of characteristics that describe an organization and distinguish it from others. Schein (1990), in a more comprehensive fashion, defines culture as values and behaviors that are believed to lead to success and are thus taught to new members. Central to the culture definition is the idea that culture must be learned and shared (Titiev, 1959). This learned and shared component begins to address the cognitive process that leads to individual decision making and behavior. Organizational culture maintains influence over its members through the development of values acceptable to the organization. As individuals enter and become participating members of an organization, they are exposed to beliefs and values that begin the initial development of cultural internalization. Pettigrew (1979) was the first to suggest the similarities between organizational culture and societal culture. While both draw heavily on the use of artifacts, myths, and stories in developing theories of consistent behavior and overall efficiency (Boje, Fedor, & Rowland, 1982; Deal & Kennedy, 1982), other differences, such as the ease of organizational entrance and exit, highlight the tentative relationship between these two paradigms. It is important not to assume that the rules and behaviors we understand and take for granted in our everyday lives exist within the confines of an organization. Internalization Process Upon entering an organization, individuals attempt to understand what the organization is really like and try to become participating members (Feldman, 1976). Individuals are motivated to "make sense" of their environment and understand why things happen (Heider, 1958). By observing behaviors that are common to the members of the organization, new employees can determine what behaviors are expected and rewarded. As rewards begin to accompany prescribed values and behaviors, employees may see these values and behaviors positively and may begin the process of embracing them as their own. …