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    MGMT 371:

    Organ izat ional Cultu re A pattern of basic assumptions that the

    group learned as it solved its problems of

    external adaptation and internalintegration, that has worked well enough

    to be considered valid and, therefore, to

    be taught to new members as the correctway to perceive, think and feel in relation

    to those problems.

    Edgar Schein, 1992

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    Levels of

    OrganizationalCulture

    Artifactssymbols of

    culture in the physical

    and social work environment

    ValuesEspoused: what members of

    an organization say they valueEnacted: reflected in the way

    individuals actually behave

    Assumptionsdeeply heldbeliefs that guide behavior and tell

    members of an organization how

    to perceive and think about things

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    Artifactssymbols of

    culture in the physical

    and social work environment

    ValuesEspoused: what members of

    an organization say they valueEnacted: reflected in the way

    individuals actually behave

    Assumptionsdeeply heldbeliefs that guide behavior and tell

    members of an organization how

    to perceive and think about things

    Organizational ultureVisible, often not

    decipherable

    Greater level

    of awareness

    Taken for granted,Invisible, Preconscious

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    Types of Artifacts

    Personal Enactment

    Ceremonies and Rites

    Stories About the boss

    About getting fired

    About relocating

    About promotions

    About crisis situations About status considerations

    Rituals

    Symbols

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    Functions of Organizational Culture

    Culture provides a sense of identity to members

    and increases their commitment to the

    organization

    Culture is a sense-making devicefor organization members

    Culture reinforces the values

    of the organization

    Culture serves as a controlmechanism for shaping

    behavior

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    Understanding

    Organizational CultureAntecedents

    Founders values

    Industry & business

    environmentNational culture

    Senior leadersvision and behavior

    OrganizationalStructure &

    Practices

    Reward systems

    Organizational

    design

    OrganizationalCulture

    Observable artifacts

    Espoused values

    Basic assumptions

    Group & SocialProcesses

    Socialization

    Mentoring

    Decisionmaking

    Groupdynamics

    Communication

    Influence &empowerment

    LeadershipOrganizationalOutcomes

    Effectiveness

    Innovation &

    stress

    CollectiveAttitudes &Behavior

    Work attitudes

    Job satisfaction

    Motivation

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    Constructive Culture

    High priority on constructive interpersonalrelationships, and focus on work groupsatisfaction

    Affiliative

    Participative, employeecentered, and supportiveHumanistic-encouraging

    Value self-development andcreativity

    Self-actualizing

    Goal and achievement

    oriented

    Achievement

    OrganizationalCharacteristics

    Normative Beliefs

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    Passive Defensive Culture

    Negative reward system and Defensive avoidaccountability

    Avoidance

    Nonparticipative, centralized decisionmaking, and employees do what they aretold

    Dependent

    Conservative, bureaucratic,and people follow the rules

    Conventional

    Avoid conflict, strive to be

    liked by others, andapproval oriented

    Approval

    OrganizationalCharacteristics

    Normative Beliefs

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    Aggressive-Defensive Culture

    Perfectionistic, persistent, and hard workingPerfectionistic

    Winning is values and awin-lose approach is used

    Competitive

    Nonparticipative, takecharge of Defensivesubordinates, andresponsive to superiors

    Power

    Confrontation and

    negativism rewardedOppositional

    OrganizationalCharacteristics

    Normative Beliefs

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    Organizational Culture Research

    Suggests:1) Organizational culture correlated with employee

    attitudes and behavior

    2) Congruence between an individuals values and

    the organizations values associated withorganizational commitment, job satisfaction,intentions to quit, and turnover

    3) Organizational culture did not predict acompanys financial performance

    4) Mergers frequently failed due to incompatiblecultures

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    Theories on the relationship

    between organizational culture

    and performance

    Strong Culture Perspective

    Fit Perspective

    Adaptive Perspective

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    BECAUSE

    They are characterized by goal

    alignment

    They create a high level of motivationbecause of shared values by the

    members

    They provide control without the

    oppressive effects of bureaucracy

    Strong Cultures Facilitate Performance

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    Fit Perspective

    a culture is good only if it fits the

    industry or the firms strategy

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    Three particular industry

    characteristics affect culture:

    1.Competitive environment2.Customer requirements

    3.Societal expectations

    Fit Perspective

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    Adaptive Culture

    an organizational culture that

    encourages confidence and risk taking

    among employees, has leadership that

    produces change, and focuses on the

    changing needs of customers

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    Adaptive vs. Nonadaptive Cultures

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    Most Important Elements

    in Managing Culture

    What leaders pay attention to

    How leaders react to crises How leaders behave

    How leaders allocate rewards

    How leaders hire and fire individuals

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    Organ izational Soc ial izat ion

    Phase 1: Anticipatory

    Phase 2: Encounter

    Phase 3: Change and acquisition

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    Organizational Socialization Process

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    Organizational Socialization

    Phases Perceptual andSocial Processes

    1) Anticipatory

    socialization learningthat occurs prior tojoining theorganization

    Anticipating realities about

    the organization and thenew job

    Anticipating organizationsneeds for ones skills andabilities

    Anticipating organizations

    sensitivity to ones needsand values

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    Organizational Socialization

    Phases Perceptual andSocial Processes

    2) Encounter values,

    skills, and attitudesstart to shift as newrecruit discoverswhat theorganization is trulylike

    Managing lifestyle-versus-

    work conflicts Managing intergroup role

    conflicts

    Seeking role definition andclarity

    Becoming familiar with taskand group dynamics

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    Organizational Socialization

    Phases Perceptual andSocial Processes

    3) Change and

    acquisition recruitmasters skills androles and adjusts towork groups valuesand norms

    Competing role demands

    are resolved Critical tasks are mastered

    Group norms and values areinternalized

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    Outcomes o f Soc ial izat ion

    Newcomers who are successfully

    socialized should exhibit:

    Good performanceHigh job satisfaction

    Intention to stay with organization

    Low levels of distress symptoms

    High level of organizational commitment

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    How cu l tures are embedded in

    organizat ions Formal/public statements

    Physical Layout

    Slogans, co. lingo Mentoring, modeling

    Explicit rewards, promotion criteria

    Stories, legends, myths

    Processes and outcomes, measurement

    Workflow and systems

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    Mentor ing

    Outcomes for Mentees

    Outcomes for Mentors

    Outcomes for Organizations

    Maintaining the Culture

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    Functions of Mentoring

    Career Functions Sponsorship

    Exposure-and-Visibility

    Coaching

    Protection Challenging

    Assignments

    PsychologicalFunctions Role Modeling

    Acceptance-and-Confirmation

    Counseling

    Friendship

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    Organizational Culture Inventory

    Focuses on behaviors that help employees fitinto the organization and meet coworkerexpectations

    Uses Maslows hierarchy ofneeds to measure twelvecultural styles

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    Kilmann-Saxton Culture-Gap Survey

    Focuses on what actually happens in theorganization and the expectations of others

    Two underlying dimensionstechnical/human andtime.

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    Intervent ions fo r Chang ing

    Organizat ional Cultu re

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    Quest ions on Cul ture

    Can the organizational culture change?

    How?

    Where does the culture come from?1.

    2.

    3.

    Does the culture look the same from the

    top and from the bottom?