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Chapter 16 Organizational Culture Nelson & Quick

Chapter 16 Organizational Culture Nelson & Quick

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Page 1: Chapter 16 Organizational Culture Nelson & Quick

Chapter 16Organizational Culture

Nelson & Quick

Page 2: Chapter 16 Organizational Culture Nelson & Quick

Organizational (Corporate) Culture

Organizational (Corporate) culture -A pattern of basic assumptions that are considered valid and that are taught to new members as the way to perceive, think, and feel

in the organization

Page 3: Chapter 16 Organizational Culture Nelson & Quick

OrganizationalCulture LevelsArtifacts - Artifacts - Symbols of

culture in the physicaland social work environment

ValuesValuesEspoused: Espoused: what members of what members of an organization say they valuean organization say they valueEnacted:Enacted: reflected in the way reflected in the wayindividuals actually behave individuals actually behave

Assumptions - Assumptions - Deeply heldbeliefs that guide behavior and tell members of an organization how to perceive and think about things

Visible, often not decipherable

Greater levelof awareness

Taken for granted Invisible

Preconscious

Reprinted with permission from Edgar H. Schein, OrganizationalCulture and Leadership: A Dynamic View. Copyright © 1985 Jossey-Bass Inc,, Publishers, 350 Sansome Street, San Francisco, CA 94104 (800) 956-7739.

Page 4: Chapter 16 Organizational Culture Nelson & Quick

• Personal enactment• Ceremonies and rites (rites of passage, enhancement,

renewal, integration, conflict reduction, degradation)• Stories (about the boss, getting fired, company handling of

relocating employees, whether lower-level employees can rise to the top, how the company deals with crises, how status considerations work when rules are broken)

• Ritual• Symbols

Artifacts - Artifacts - Symbols ofculture in the physical

and social work environment

Page 5: Chapter 16 Organizational Culture Nelson & Quick

• Testable in the physical environment

• Testable only by social consensus

ValuesValuesEspoused: Espoused: what members of

an organization say they valueEnacted:Enacted: reflected in the way

individuals actually behave

Page 6: Chapter 16 Organizational Culture Nelson & Quick

• Relationship to environment• Nature of reality, time, and space• Nature of human nature• Nature of human activity• Nature of human relationships

Assumptions - Assumptions - Deeply held beliefs that guide behavior and tell

members of an organization how to perceive and think about things

Page 7: Chapter 16 Organizational Culture Nelson & Quick

Functions of Organizational Culture

• Culture provides a sense of identity to members and increases their commitment to the organization

• Culture is a sense-making device

for organization members• Culture reinforces the values

in the organization• Culture serves as a control mechanism for

shaping behavior

Page 8: Chapter 16 Organizational Culture Nelson & Quick

AdaptivePerspective

FitPerspective

Strong CulturePerspective

Theories about the relationship between organizational culture and performance

Page 9: Chapter 16 Organizational Culture Nelson & Quick

An organizational culture

with a consensus on the

values that drive the company

and with an intensity that is

recognizable even to outsiders

Strong CulturePerspective

Reasons Strong cultures facilitate performance • They are characterized by goal alignment• They create a high level of motivation because

of shared values by the members• They provide control without the oppressive

effects of bureaucracy

Page 10: Chapter 16 Organizational Culture Nelson & Quick

Argument that a culture is

good only if it fits the

industry’s or the

firm’s strategy.

Three characteristics of the organization may affect culture

• Competitive environment• Customer requirements• Societal expectations

FitPerspective

Page 11: Chapter 16 Organizational Culture Nelson & Quick

An organizational culture that encourages confidence and risk taking among employees, has leadership that produces change, and focuses on the changing needs of customers

AdaptivePerspective

Adaptive Nonadaptive

Most managers careabout themselves,their work group, oran associated product

Most managers care about customers,stockholders, and employees

Managers tend tobehave somewhat insularly, politically,and bureaucratically

Managers pay close attention to alltheir constituencies,esp. customers

Core Values

CommonBehavior

Reprinted with the permission of The Free Press, a Division of Simon & Schuster, Inc. from Corporate Culture and Performance by John P. Kotter and James L Heskett. Copyright © 1992 by Kotter Associates, Inc. and James L. Heskett.

Page 12: Chapter 16 Organizational Culture Nelson & Quick

Five 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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Organizational Socialization

Organizational Socialization - the process by which newcomers are transformed from outsiders to participating, effective members of the organization

Page 14: Chapter 16 Organizational Culture Nelson & Quick

Stages of Socialization

Realism Congruence

Job demands•Task •Role •Interpersonal

Mastery

1. Anticipatory Socialization

2. Encounter

3. Change andAcquisition

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Stages of Socialization

Realism Congruence

Job demands•Task •Role •Interpersonal

Mastery

1. Anticipatory Socialization

2. Encounter

3. Change andAcquisition

PerformanceSatisfactionMutual influenceLow levels of distressIntent to remain

Outcomes of Socialization

From “An Ethical Weather Repart: Assessing the Organizaiton’s Ethical Climate” by John B. Cullen, etal. In Organizational Dynamics, Autumn 1989. Copyright © 1989 American Management AsociationInternational. Reprinted by permission of American Management Association International, New York, N.Y.All rights reserved. Http://www.amanet. Org.

Page 16: Chapter 16 Organizational Culture Nelson & Quick

1. Anticipatory Socialization

the first socialization stage--encompasses all

of the learning that takes place prior to the newcomer’s first day on the job

2. Encounter

the second socialization stage-- the newcomer learns the tasks associated with the job, clarifies roles, and establishes new relationships at work

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3. Change & Acquisition

the third socialization stage--the newcomer begins to master the demands of the job

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Socialization asCultural Communication

Core values are transmitted to new Organization members through

– the role models they interact with

– the training they receive

– the behavior they observe being rewarded

and punished

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Assessing Organizational Culture

• Organizational Culture Inventory focuses on behaviors that help employees fit into the organization & meet coworker expectations

• Kilman-Saxton Culture-Gap Survey focuses on the expectations of others in the organization

• Triangulation is the use of multiple methods to measure organizational culture

Page 20: Chapter 16 Organizational Culture Nelson & Quick

Situations That May Require Cultural Changes

• Merger or acquisition• Employment of people from different

countries

Reasons That Change Is Difficult

• Assumptions are often unconscious• Culture is deeply ingrained and behavioral

norms and rewards are well learned

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Hiring andsocializing

members whofit in with thenew culture

Removingmembers who

reject the new culture

Culture

Culturalcommunication

Changing behavior

Examiningjustificationsfor changed

behavior

2

1

5

3

4

Interventions forChanging

OrganizationalCulture Reprinted with permission from Vijay Sathe “How to Decipher & Change

Corporate Culture,” Copyright © 1985 Jossey-Bass Inc, Publishers, 350 Sansome Street, San Francisco, CA 94104 (800) 956-7739.

Page 22: Chapter 16 Organizational Culture Nelson & Quick

Cultural Modifications in the Current Business Environment

Support for a globalview of business

Reinforcement ofethical behavior

Empowerment of employees to excelin product and service quality

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Support for a globalview of business

• Create a clear and simple mission statement

• Create systems that ensure effective information flow

• Create “matrix minds” among managers• Develop global career paths• Use cultural differences as major assets• Implement worldwide management education

and team development programs

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• Clear communication of the boundaries of ethical conduct

• Selection of employees who support the ethical culture

• Reward of ethical behavior• Conspicuous punishment of members who

engage in unethical behavior

Reinforcement ofethical behavior

Page 25: Chapter 16 Organizational Culture Nelson & Quick

• Empowerment unleashes employees’ creativity

• Empowerment requires eliminating traditional hierarchical notions of power– Involve employees in decision making– Remove obstacles to their performance– Communicate the value of product and service

quality

Empowerment of employees to excel in product and service quality