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9 Organizational Culture,
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04/19/2023METU IE 303 FALL 2012 rev 5 2
Learning Objectives
Organizational culture what is it? Group dynamics and development Difference between groups and
teams How to organize effective teams Common barriers to team
effectiveness
04/19/2023METU IE 303 FALL 2012 rev 5 3
THE PRINCIPAL COMPETITIVE ADVANTAGE OF SUCCESSFUL ORGANIZATIONS IS THEIR CULTURE.
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WHAT IS ORGANİZATİONAL CULTURE
The set of shared values, that influences the way employees
think,feel,and behave toward each other and toward people outside the
organization.
04/19/2023METU IE 303 FALL 2012 rev 5 5
WHAT IS ORGANİZATİONAL CULTURE
Organizational culture comprises the attitudes, experiences, beliefs, and values
of the organization, acquired through social learning, that control the way
individuals and groups in the organization interact with one another and with parties
outside it.
04/19/2023METU IE 303 FALL 2012 rev 5 6
What Is Organizational Culture Organizational culture is basically a system of shared beliefs that members
of the organization have, which determines how members in an
organization act when confronted with decision-making responsibilities.
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Organizational Culture ComesFrom
Organizational Culture
Characteristics of people within the
organization
The nature of the
employment relationship
Design of organizational
structure
Organizational ethics
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FUNCTIONS OF ORGANIZATIONAL CULTURE
Behavioral control Encourages stability Provides source of identity
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Draw backs of culture
Barrier to change and improvement Barrier to diversity Barrier to cross departmental and cross
organizational cooperation Barrier to mergers and acquisitions
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EFFECTS OF ORGANIZATIONAL CULTURE
Southwest Airlines (21,775% ROI, Wal-Mart (19,807% ROI), Tyson Foods (18,118% ROI), Circuit City (16,410% ROI), Plenum Publishing (15,689% ROI), These winners have strong leadership
that promotes unique strategies and a strong culture to help them realize these strategies.
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CRITICAL INSTRUMENTAL MECHANISMS FOR CHANGING AND MANAGING CULTURE INCLUDE
1. Strategic planning and the identification of necessarily cultural requisites
2. Ensuring consistency of culture with mission, goals, strategies, structures and processes
3. Creating formal statements of organizational philosophy and values
4. Establishing consistent incentives, recognition systems, and performance measurement
5. Maintaining appropriate error-detection and accountability systems
6. Coaching, mentoring, informal and formal training, and identifying role models
7. Embracing appropriate rites, rituals, symbols, and narratives
8. Taking advantage of the growth of subcultures 9. Managing and promoting strong communities of
practice
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EMERGING CULTURAL MANDATES
Schein (1992) notes several requisites for organizational success that organizational culture must now take into account: › ♦ The organization must be proactive, not just reactive. › ♦ The organization must influence and manage the
environment, not just adapt. › ♦ The organization must be pragmatic, not idealistic. › ♦ The organization must be future-oriented, not
predominantly present/past oriented. › ♦ The organization must embrace diversity, not uniformity. › ♦ The organization must be relationship-oriented, not just
task-oriented. › ♦ The organization must embrace external connectivity, as
well as promote internal integration.
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CULTURAL CHANGE
Entire Organizational Culture Revolutionary and comprehensive Efforts that are gradual and incremental
Subculture Efforts confined to radically change
specific subcultures or cultural components of the overall differentiated culture.
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ENSURE THAT
EMPLOYEES ARE READY
FOR CHANGE
EXECUTE THE
INTENDED CHANGE
ENSURE THAT THE CHANGE
BECOMES PERMANENT
UNFREEZE
CHANGE
REFREEZE
CULTURAL CHANGE
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ONE CULTURE OR MANY?
a visionary company almost religiously preserves its core ideology — changing it seldom, if ever. Core values ... form a rock-solid foundation and do not drift
with the trends and fashions of the day.
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Creating an Ethical Culture
Promote Moral Values
Design Organizational Structure to Rule Ethics
Fair and Equitable HR Procedures
Allow Access to Upper Level Managment
Create Strong Board of Directors
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GROUPS & TEAMS IN THE
P-O-L-C COMPONENTSPlanning Organizing Leading Controlling
Vision & Mission
Organization Design
Leadership Systems/Processes
Strategizing Culture Decision Making Strategic Human R.
Goals & Objectives
Social Networks
Communications
Groups/Teams Motivations
Strategy Formulation
Strategy Implementation
StrategyStrategic Planning
StrategicManagement
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GROUP VS. TEAM
• A group is usually composed of 2-4 members that work interdependently with each other to a significant degree. They are committed to work together and willing to be handled by a leader.
• A team is considered to work interdependently and is committed to achieve one common goal. They are usually composed of 7-12 members and are helping each other to develop new skills to which it can help improve their performance.
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THE FIVE STAGES OF GROUP DEVELOPMENT
Members getto know each
other andseek to
establish ground rules
Memberscome to resist
control bygroup leaders
and showhostility
Memberswork together,
developingclose relation-
ships andfeelings of
camaraderie
Groupmembers
work towardgetting their
jobs done
Groups maydisband, eitherafter meetingtheir goals orbecause mem-
bers leave
Stage 1Forming
Stage 2Storming
Stage 3Norming
Stage 4Performing
Stage 5Adjourning
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SOCIAL LOAFING
The tendency for group members to exert less individual effort on an additive task as the size of the group increases.
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SOCIAL LOAFING: ITS GENERAL FORM
(high)
(low)Am
ou
nt
of
Eff
ort
Exert
ed
by E
ach
In
div
idu
al
People Working Together in Groups
On PersonWorkingAlone
Small groups Large groups
The more people working ona group task, the smaller the
contribution made by any onemember of the group will be.
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ORGANIZING EFFECTIVE TEAMS
Establish Team Norms…to be late to the meeting?critisize someone else’s work
Establish Team Contracts..team values, goalteam roles, team decesion making,team communication
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ORGANIZING EFFECTIVE TEAMS
Team Meetings..
Before...meeting needed? create and distribute agenda.Send reminder..
During…Start ontime,follow the agenda,manage the group dynamics,summarize the meeting with action items,end the meeting on time After…Follow up action items
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BARRIERS TO EFFECTIVE TEAMS
Challenges of knowing where to begin Go back to your team mission Dominating team members Design a team evaluation and a balance of
participation Poor performance of some team members Motivate or reject Poorly managed team conflict Is good to have discussions if excessive let the
involved ones to discuss separately.
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SUCCESSFUL TEAMS
1. Have basic trust among members2. Have open & frequent
communications3. Focus on the team’s goal4. Are willing to depend on others5. Are willing to be influenced by others6. Are able to get consensus on
decisions
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DEVELOPING TEAMS THROUGH TEAM “ADVENTURES”
1. Novelty of the situation makes people “ready to learn”.
2. Physical challenges & threats increase the retention of learning.
3. Can create high degree of interdependency, which makes cooperation at work easier.
4. Non-work interaction causes greater familiarity, and more trust.