While there are six parts to this chapter, there are two major themes running through it. The first, of course, is organizational culture, and the second is socialization. Both of these are closely related topics. In fact, the process of socialization is a logical extension of the discussion about how we can change and strengthen organizational culture. But, what is the chapter mainly about? It’s about all the elements of organizational culture, the link between organizational culture and performance, and socialization.

No discussion of organizational culture would be complete without a description of the concept and its various critical elements. That’s what part one is about. Some parts of culture are observable. Those offer clues we can use to describe an organization’s particular culture and compare it to another. Observable clues are called “artifacts.” Then there is the content part, which you cannot see. This is really important stuff made up of beliefs, assumptions, and values. It’s also the most nebulous aspect of culture. We know it’s there, and it has a real impact on organizational members’ behaviours, but we can’t touch it or see it.

In part three, the link between culture and performance of the organization is discussed. This is not a simple relationship to establish, because so much of it depends on other factors (contingencies). Ideally, a strong corporate culture should serve three important functions, and when the culture fits the external environment, the chances of a positive relationship between the strength of the organization’s culture and its financial performance are improved.

There is a section that deals with socialization. This is where you learn about something many business texts overlook and that is the two kinds of psychological contracts that motivate employees. It isn’t written, but it is very real. Any employer who violates the terms of those contracts is in big trouble. Next, the three stages of the socialization process and the attraction-selection-attrition process (ASA) theory. This information is invaluable for any organization wishing to strengthen its culture. It starts with selecting the right people and then socializing (indoctrinating) them effectively.