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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?