Iowa State University - Organizational Culture Presentation (Christina Lesyk, PhD student)

Department of Apparel, Events & Hospitality Management

Organizational Structure, Philosophy, and Culture

Christina Lesyk HRI 638 – Advanced Human Resource Management in Hospitality Organizations (Summer, 2015)

Iowa State University


Definition(s) of “Culture?”

2Iowa State University


Literature ReviewDefinitions of “organizational culture:”• “Schema agreed on by the organizational

members” (Sims and Lorenzi, 1992).

• Rituals, heroes, symbols, practices, myths, assumptions, beliefs, and values (Ford, et al., 2012; Hofstede, et al. 1990; O’Neill, 1997; Schein, 1985; Thompson, et al., 1999).



Schein’s Definition (1992)“the pattern of basic assumptions that a given group has invented, discovered or developed in learning to cope with its problems of external adaptation and internal integration and that have worked well enough to be considered valid, and therefore, to be taught to new members as the correct way to perceive, think, and feel in relation to other problems” (italics mine).



Hofstede, et al.’s Model of Organizational Culture (1990)



Culture is “the organization’s software that tells well-trained, motivated employees how and why to do what when a customer is standing

in front of them.”

(Ford, et al., 2012, p. 122)



Macrocultures/SubculturesPrevious research focused on the culture of individual organizations.

Possibility that there can be organizational cultures that are common across organizations in the same industry (e.g. the hotel industry).

• If hotel employees tend to move around, they’ll bring their “culture” with them?

Cultures within cultures (e.g. at Disney).7Iowa State University


Definition of Work-Family Culture“The shared assumptions, beliefs, and values regarding the extent to which an organization supports and values the integration of [an] employee’s work and family lives” (Thompson, et al., 1999).• Managerial support• Career consequences• Organizational time expectations



Top Performing Company = Good Culture?

Have you been following what’s been happening with Apple?

What would you feel like if…



It’s Not Only the Big Guys

In a town with 2 banks that were on opposite sides of the street from each other, why was one robbed

and the other not?



Learning Objectives• Why is a hospitality organization’s culture

important to service success?

• Why are an organization’s leaders important to developing, communicating, and maintaining its culture?

• How are an organization’s beliefs, values, and norms important to its culture?



Learning Objectives• How do you communicate an organizational

culture to staff?

• How and can you change an organizational culture?

• What does research tell us about organizational cultures?



Current Research – Assigned ArticleAsree, Zain, and Razalli (2010) article:• Would leadership competency and organizational

culture affect hotel responsiveness to employees and customers and increase revenue? Yes!

• Focus on 88 hotels in Malaysia with different ratings.



Asree, et al. – Method/Limitations• Questionnaire with small sample (low response)

• Use of subjective approach to measure organizational performance

• Using only 2 types of operations practices

• Using only 1 way to measure performance (revenue)



SEM as a Limitation?• Use of Structural Equation Modeling (SEM)– Cross-sectional analysis, linear approach– Considered relatively new, so subject to challenge

and revision– Used to confirm if a given model is valid vs. finding an

appropriate model



Asree, et al. - Discussion • What is leadership “competency?”– Self-managing, strategic positioning, implementation,

critical thinking, communication, interpersonal factors, leadership, industry knowledge (p. 503).

• Hotel managers are the ones responsible for instilling an organizational culture beneficial to their employees.

• Importance of “soft” skills.



The Role of LeadersFord, et al. (2012):

• Importance of leadership, even if you’re not the original leader (e.g. Tim Cook)

• Employees are “natural boss watchers” – do the leaders “walk the walk” or just “talk the talk?”



Ford, et al. – To Do List• Importance of deliberately teaching the culture

to employees.

• Recognizing the outside culture.

• Upending the usual priority order of people (guests first, then employees, then stakeholders).



Current Research – Assigned ArticleDawson, Abbott, Shoemaker (2011) article:• Development of a “Hospitality Culture Scale”

essentially to measure a person’s “fit” with the hospitality industry.

• Comparing what the organizational culture is and the personal characteristics of a candidate.



Dawson, et al. - Method• Online survey developed to identify factors that would

measure “fit.”

• 40 companies representing different types of hospitality organizations who recruited specifically at the University of Houston.

• Alumni of the University of Houston’s hotel & restaurant program who represented different hospitality segments.



Dawson, et al. – Organizational & Personal Factors

Organizational Culture Personal Attributes- Management principles - Principles- Customer relationships - Propitiousness- Job variety - Leadership- Job satisfaction* - Risk taker

-Accuracy- Composure*



Dawson, et al. – HCS Tested• With law students, business (MBA) students, and

hospitality students.

• Hospitality students were shown to be different than the other types of students.– On personal factors overall– On certain factors such as customer relationships



Dawson, et al. – Discussion/Implications• “Candidates must have a desire to embrace this known

adversity in order to be successful” (p. 299) – meaning turnover and burn-out.–Why?

• “[Employees] quit because they cannot adapt into the service environment” (p. 299).• Is this really the case? Is it “cannot” or “will not?”



Dawson, et al. – Effectiveness of HCS• Has potential but needs refining.

• Definition of “success” just linked to personal characteristics (soft skills) (p. 300)?

• The study could have the potential of showing that hospitality programs are adequately preparing students to become part of the industry in which they are preparing them” (p. 299).



Current Research – Assigned ArticleO’Neill (2012) article:• Perspective of “partying” after hours as a “norm”

and “common practice” in the hotel industry.

• “Partying” defined: “social gathering with work colleagues outside of work hours and outside of the work location, including drinking alcohol” (p. 82).



O’Neill - Method• Telephone surveys of 65 full-service hotels with

544 managers.

• Pilot study of 30 managers first, and spouses were also interviewed.

• Multiple regression analyses and ANOVAs to measure how 5 characteristics affected the extent to which employees partied after work.



O’Neill - DiscussionGenerally, all hypotheses were supported, at least partially.• More work-life emphasis/Less partying• Less time expected at work/Less partying• Partying differs depending on where hotel is• Partying varies depending on hotel company• More employees/More partying• The older the employee/Less partying



Limitations• Self-reports.

• Not all surveys completely answered.

• Inability to observe partying activities and behaviors.

• 3-item “partying scale” questions but 20-item work-family culture questions.



O’Neill - Questions• If someone started drinking at a younger age and

then reports less drinking when s/he got older, is that person telling the truth?– Is it a matter of having paid one’s dues and not having

to “prove yourself” anymore?– How easy would it be to admit to alcohol misuse and

abuse?–What if years of drinking developed into a more

serious problem and needed to be hidden?–Would an older manager have more to lose?



O’Neill - Questions• Would there be a difference between planned

events and impromptu ones?

• Is there a concern with other drugs (including illegal ones) besides alcohol?

• Would “sponsoring voluntary, alcohol-free, recreational events” necessarily meet employee needs? What are their needs?



Current Research - Additional ArticleWalker & Bridgman article (2013):• Study on workplace cultural influences on young

people’s drinking in a white collar professional services firm in New Zealand.

• 16 semi-structured interviews.• “Young” defined as:– 25 years old and younger: 8 respondents– 26-30 years old: 6 respondents– 30 years old and older: 2 respondents



Themes (Walker & Bridgman)5 themes regarding how drinking was seen by respondents:• Opportunity to “get issues off their chests”• Reinforcement of organizational “identity”• Managerial control/expectations• Development of colleague relationships• Development of client relationships



Discussion (Walker & Bridgman)• Respondents were “uncomfortable” about admitting

alcohol use for stress relief.

• Respondents understood that they shouldn’t “get drunk” in front of people because their career prospects could be negatively impacted.

• Employers can both encourage and discourage alcohol use. Irony of providing EAP services and alcohol.



2013 – 2015 “Organizational Culture” Keyword Search

267 peer-reviewed journal articles



29 Countries/Cultures Represented


- United States - Iran - Slovenia- Australia - Japan - South Korea- Belgium - Malaysia - Spain- England - Mexico - Syria- Finland - Nicaragua - Turkey- France - Nigeria - Ukraine- Greece - Palestine - China, Hong Kong,- Holland - Scandinavia Taiwan, Germany, - India - Singapore Brazil, United States


22 Industries Represented- Accounting - Fire Services - Safety- Architecture - Health Care (all) - Social Sci.- Art - IT - Social Work- Biotechnology - Law Enforcement - Sports Mgmt.- Business - Library Mgmt.- Chemistry - Psychology- Construction - Public Health- Education - Recordkeeping- Engineering - Religion

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Some Questions For YouWhat are some companies you know of that you believe has a strong organizational culture?

If you are currently employed, do you think your company has a positive or negative organizational culture? How strong is it?



Examples of Strong Organizational Cultures



The Ritz-Carlton Credo“The Ritz-Carlton is a place where the genuine care and comfort of our guests is our highest mission.

We pledge to provide the finest personal service and facilities for our guests who will always enjoy a warm, relaxed, yet refined ambiance.

The Ritz-Carlton experience enlivens the senses, instills well-being, and fulfills even the unexpressed wishes and needs of our guests.”

(Michelli, 2008, p. 23)39Iowa State University


The Ritz-Carlton Motto“Ladies and Gentlemen serving

Ladies and Gentlemen.”(Michelli, 2008, p.26)

Daily reminder of how to behave and to be proud of being a professional.



The Ritz-Carlton Culture• Repetition of values on a daily basis (the “line-

up,” credo card, motto)

• Common language (“credo,” “a fond farewell,” “unexpressed wishes and needs of our guests”)

• Visual symbols (carrying credo card as part of uniform)



The Ritz-Carlton Culture - continued

• Oral traditions (personalized, direct, face-to-face)

• Positive storytelling

• Leadership modeling



The Ritz-Carlton Model• Employees are also “warmly welcomed into the

company and …staff are given a fond farewell when they retire, transfer or depart” (Michelli, 2008, p. 33).

• Signed banners from Ritz-Carlton employees to new Ritz-Carlton properties.

• Expanding daily culinary “line-up” to all jobs.



Disney - The Happiest Place on Earth

“…most people want to be involved in something greater than just being paid for a job. My basic story is about the two men laying bricks. When asked what he is doing, one man says, ‘I’m laying bricks.’ The other man performing the same task says, ‘I’m building a cathedral.”

(Van France in Lipp, 2013, p. 143)



Disney Subcultures• Resulting from categorizing and subdividing

employees by:– location (e.g. Tomorrowland vs. Frontierland)– type (e.g. food service vs. ride operator)– amount of work (e.g. full-time vs. part-time)– shift (e.g. weekend vs. weekday)

• Difficulty and importance of managing subcultures to support overall culture



Union Square Hospitality Group

• Danny Meyer, CEO

• Restaurants have earned over 26 James Beard Awards and have high Zagat ratings

• Union Square Café, Blue Smoke, Tabla, Gramercy Tavern, The Modern, Shake Shake, and more



Is It Just the Food or the Room?“You may think, as I once did, that I’m primarily in the business of serving good food. Actually, though, food is secondary to something that matters even more.

In the end, what’s most meaningful is creating positive, uplifting outcomes for human experiences and human relationships. Business, like life, is all about how you make people feel (emphasis mine). It’s that simple, and it’s that hard.”

(Meyer, 2006, p. 3)



Common Characteristics• “You can’t put the veneer of quality on a business

that lacks a sound foundation” (Ritz-Carlton in Michelli, 2008, p. 19).

• “Just as paint won’t improve the structural integrity of a building, catchy words for customers and employees have no value without leadership support” (Disney in Lipp, 2013, p. 147).



Common Characteristics - continuedYou’re on!

• “Smile – We are on stage” (Ritz-Carlton).

• “We aren’t employees, we are ‘Cast Members’ (Disney).

• “We don’t wear uniforms, we wear ‘costumes’ (Disney).

Iowa State University49Iowa State University


Common Characteristics - continued

• Being good community partners and citizens- e.g. Union Hospitality Group working to clean up Union Square in New York City



Common Characteristics - continued• “Never lose a guest” (Ritz-Carlton)

• Management is right there where the action is happening to observe guest relations (including facial expressions and body language)



Common Characteristics - continued

• Emphasis on cleanliness –Considered a basic indicator of quality–Walt Disney’s research of other theme parks–Everyone, including the leaders, needed to

notice trash and get rid of it.



Employees are worthy of investment, incentives, and rewards

“At Disneyland, I wanted people to feel they were involved in something more important than parking cars, serving food, or sweeping up popcorn, that they would be creating happiness for others” (Lipp, 2013, p. 145).

“Take the servility out of service-related jobs” (Lipp, 2013, p. 145).



Employees are Professionals to Be Respected & Supported

“We are Ladies and Gentlemen serving Ladies and Gentlemen, and I would really appreciate it if you could address me that way.”

(Ritz-Carlton in Michelli, 2008, p.29)



When Rules and Roles Get In the Way"In every business, there are employees who are the first point of contact with the customers (attendants at airport gates, receptionists at doctors' offices, bank tellers, executive assistants). Those people can come across either as agents or as gatekeepers. An agent makes things happen for others. A gatekeeper sets up barriers to keep people out. In that transaction, did I present myself as an agent or a gatekeeper? In the world of hospitality, there's rarely anything in between” (Meyer, 2006).



Your Company’s Mission Statement• In your places of employment, do you have a

mission statement? Is it short and memorable?

• How regularly do you discuss your company mission with your staff?

• Can EVERYONE in your business provide a clear and accurate understanding of your company’s mission and purpose? Can they make it real?



Questions For Your Company• Oral traditions (personalized, direct, face-to-face) –

What are YOUR company’s oral traditions? Your special words?

• Positive storytelling and visual symbols – Does YOUR company have positive stories to tell? What are your visual symbols?

• Leadership modeling – Are YOUR leaders modeling and prioritizing values and the mission?



Does YOUR Company Do This?• Annual employee training certifications for their

positions?

• Communicating company objectives to employees?

• Include employees in planning the work that affects them?



Does YOUR Company Do This?• Empowering employees to break away from

regular duties to attend to guest issues?– From a custodian replacing spilled popcorn (Disney)

to employees involved in serious service failures (e.g. Ritz-Carlton and Hurricane Wilma (Michelli, 2008), NYC hotels during a major 2003 blackout (Kwortnik, 2006).



Changing a Culture



Kotter (2012) in Forbes

“Why do conversations about an important topic like culture typically go nowhere, leading companies to waste time and money with “cultural change efforts” which very seldom work?”



“Here is the problem: First, virtually no one clearly defines what they mean by “culture,” and when they do they usually get it wrong.

Second, virtually no one has read the original research that shows why culture — when clearly defined — is so important, how it is formed, and how it changes” (Kotter, 2012).


Where We Can Help


“How does culture change? • A powerful person at the top, or a large enough group

from anywhere in the organization, decides the old ways are not working, figures out a change vision, starts acting differently, and enlists others to act differently.

• If the new actions produce better results, if the results are communicated and celebrated, and if they are not killed off by the old culture fighting its rear-guard action, new norms will form and new shared values will grow” (Kotter, 2012).


Changing the Culture


Have You Experienced This?“What does NOT work in changing a culture? Some group decides what the new culture should be. It turns a list of values over to the communications or HR departments with the order that they tell people what the new culture is. They cascade the message down the hierarchy, and little to nothing changes” (Kotter, 2012).



Denny’s RestaurantsFord, et al. (2012):• 1997 – operated 1652 restaurants• Repeated claims of racial discrimination (e.g.

“black-outs”)• Leadership insistence of “isolated incidents”• Largest public accommodation settlement ever at

the time ($54 million class action suit)



Turning Denny’s Around

New CEO’s first staff meeting:

“Anyone who doesn’t like the direction this train is moving had better jump off now…and I will fire you if you discriminate.”



Results – It CAN Be Done• Within a few years:– Half of employees were minorities– Dozens of black-owned franchises (vs. only 1)–Millions of dollars of supplies bought from minority-

owned suppliers– Fortune Magazine: Denny’s parent company named

#1 of “America’s 50 Best Corporations for Minorities” 2 years in a row.



Class Exercise – A New ParadigmExit Interviews• What are they?• Have you ever had one?• Some typical questions asked at an exit interview• Pros of exit interviews• Cons of exit interviews

Is there another way?69Iowa State University


Stay Interviews• Versus an “exit” interview• What might a “stay” interview be? • Who would participate in a “stay” interview?• Pros and cons of a “stay” interview• How would you do a “stay” interview?• What might you ask at a “stay” interview and

who should conduct it?



Tasks1. Work together to come up with pros and cons

of a “stay” interview (10 min.)

2. Create a scenario of a “stay” interview (Who should conduct it? Who should have one? What kind of environment would be conducive to one? (10 min.)

3. Develop some sample questions (10 min.)71Iowa State University


Results?



Summary

When we talk about “organizational culture,” what we’re really talking about is:

1. What will appeal to the BEST in us:- Ethics - Revolution- Justice - Prosocial- Trust - Civility



Summary2. How to do things “better:”– Safety, crisis management, infection control–Carbon reduction–Maintain healthy weights!– Increase profits



SummaryRegarding Human Resources & Hospitality:• Increase employee commitment/engagement• Increase citizen behavior• Decrease turnover• Improve employee morale, wellbeing• Decrease harassment• Decrease burnout• Improve diversity




Questions & Recommendations?


ReferencesAsree, S., Zain, M., & Razalli, M.R. (2010). Influence of leadership competency and organizational culture on responsiveness and performance of firms. International Journal of Contemporary Hospitality Management, 22, 500-516. Doi: 10.1108/09596111011042712Chen, W-L. (2013). Factors influencing internal service quality at international tourist hotels. International Journal of Hospitality Management, 35, 152-160.Dawson, M., Abbott, J., & Shoemaker, S. (2011). The hospitality culture scale: A

measure organizational culture and personal attributes. International Journal of Hospitality Management, 30, 290-300. Doi: 10.1016/j.ijhm.2010.10.002Ford, R.C., Sturman, M.C., & Heaton, C.P. (2012). Managing quality service in hospitality: How organizations achieve excellence in the guest experience. Clifton Park, NJ: Delmar, Cengage Learning.



ReferencesKotter, J. (2012, September 27). The key to changing organizational culture. www.forbes.com. Retrieved from http://www.forbes.com/sites/ johnkotter/2012/09/27/the-key-to-changing-organizational-culture/Kwortnik, R. (2006). Shining examples of service when the lights went out: Hotel

employees and service recovery during the Blackout of 2003. Journal of Hospitality and Leisure Marketing, 14(2), 23-45. Doi:

10.1300/J150v14n02_03Lipp, D. (2013). Disney U: How Disney University develops the world’s most engage, loyal, and customer-centric employees. Burr Ridge, Il.: McGraw-Hill Education.Lobosco, K. (2013, August 14). Apple’s store headache. www.money.cnn.com. Retrieved from http://money.cnn.com/2013/08/14/technology/innovation/apple-store/Meyer, D. (2006). Setting the table: The transforming power of hospitality in business. New York, NY: HarperCollins Publishers.



ReferencesMichelli, J. (2008). The new gold standard: 5 leadership principles for creating a

legendary customer experience courtesy of the Ritz-Carlton Hotel Company. Burr Ridge, Il.: McGraw-Hill Education.Moscaritolo, A. (2015, June 12). Apple retail employees say bag-check policy is “demeaning.” www.pcmag.com. Retrieved from www.pcmag.com/article2/0,2817,2485967,00.asp?kc=PCSS03069TX1K0001121O’Neill, J. (2012). The determinants of a culture of partying among managers in

the hotel industry. International Journal of Contemporary Hospitality Management, 24, 81-96. Doi: 10.1108/09596111211197818Walker, B. & Bridgman, T. (2013). Organisational identity and alcohol use among

young employees: A case study of a professional services firm. International Journal of Drug Policy, 24, 597-604.


Iowa State University - Organizational Culture Presentation (Christina Lesyk, PhD student)

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Transcript of Iowa State University - Organizational Culture Presentation (Christina Lesyk, PhD student)