Organizational Culture Dr. Salma Chad BBA 200. Organizational Culture ? ?

Organizational CultureOrganizational Culture

Dr. Salma Chad

BBA 200

Organizational CultureOrganizational Culture

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McGraw-Hill/Irwin © 2005 The McGraw-Hill Companies, Inc. All rights reserved.

2-3

IntroductionNational culture: the sum total

of the beliefs, rituals, rules, customs, artifacts, and institutions that characterize the population

National culture: the sum total of the beliefs, rituals, rules, customs, artifacts, and institutions that characterize the population

A nation’s culture and sub-cultures effect how organizational transactions are conducted

Learning to operate in a world influenced by national culture is becoming a requirement for effective management

A nation’s culture and sub-cultures effect how organizational transactions are conducted

Learning to operate in a world influenced by national culture is becoming a requirement for effective management


2-4Organizational Culture and Society’s Values

(1 of 2)

Values – the conscious, affective desires or wants of people that guide their behavior

Organizations are able to operate efficiently only when shared values exist among the employees An individual’s personal values guide

behavior on and off the job


2-5Organizational Culture and Society’s Values

(2 of 2)

Values are a society’s ideas about what is right or wrong

Values are passed from one generation to the next


2-6Hofstede’s Four Value

Dimensions(1 of 2)

Dimension Description

Power Distance The level of acceptance by a society of the unequal distribution of power in organizationsIn higher power distance cultures, employees acknowledge the boss’s authority and follow the chain of commandThe result is a more centralized authority and structure

Uncertainty Avoidance

The extent to which people in a society feel threatened by ambiguous situationsCountries with a high level of uncertainty avoidance tend to have specific rules, laws, and procedures

Managers in these countries tend towards low-risk decision-makingEmployees exhibit little aggressiveness


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Hofstede’s Four Value Dimensions

(2 of 2)

Dimension Description

Individualism The tendency of people to fend for themselves and their familyIn countries that value individualism, individual initiative and achievement are highly valued and the relationship of the individual with organizations is one of independence

Masculinity The extent to which assertiveness and materialism is valuedIn highly masculine societies, there is considerable job stress and conflict between job and family roles


2-8

Cultural Values (1 of 4)

Region / Country

Individualism-Collectivism

Power Distance


Masculinity-Femininity

Other Dimensions

North America(USA)

Individualism Low Medium Masculine

Japan Collectivism High and Low

High Masculine and Feminine

Amae (mutual dependence)

China Collectivism Low Low Masculine and Feminine

Emphasis on tradition, Marxism, Leninism, and Mao Zedong thought


2-9


Region / Country


Power Distance



Other Dimensions

Europe: Anglo Germanic West Slavic West Urgic Near Eastern Balkanic

Nordic

Individualism

Medium individualism

Collectivism

Medium/high individualism

Low/medium

Low

High

Low

Low/medium

Medium/high

High

Low/medium

Masculine

Medium/high masculine

Medium masculine

Feminine


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Region / Country


Power Distance



Other Dimensions

Europe: (cont’d) Latin Europe

East Slavic

Individualism

Medium/high individualism

Collectivism

Low/medium

High

Low

Low/medium

High

Medium

Masculine

Medium masculine

Masculine


2-11


Region / Country


Power Distance



Other Dimensions

Africa Collectivism High High Feminine Colonial traditions; tribal customs

Latin America Collectivism High High Masculine Extroverted; prefer orderly customs and procedures


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A society’s values have an A society’s values have an impact on organizational values impact on organizational values because of the interactive because of the interactive nature of work, leisure, family, nature of work, leisure, family, and community.and community.


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Organizational Organizational culture –culture – what the what the employees perceive employees perceive and how this and how this perception creates a perception creates a pattern of beliefs, pattern of beliefs, values, and values, and expectations.expectations.


2-14

Edgar Schein’s Definition of Culture:

A pattern of basic assumptions – invented, discovered, or developed by a given group as it learns to cope with the problems of external adaptation and internal integration – that has worked well enough to be considered valid and, therefore, to be taught new members as the correct way to perceive, think, and feel in relation to those problems.

A pattern of basic assumptions – invented, discovered, or developed by a given group as it learns to cope with the problems of external adaptation and internal integration – that has worked well enough to be considered valid and, therefore, to be taught new members as the correct way to perceive, think, and feel in relation to those problems.


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Schein’s Three-Layer Schein’s Three-Layer Organizational Organizational Culture ModelCulture Model

Layer III: Basic AssumptionsLayer III: Basic Assumptions

Layer II: ValuesLayer II: Values

Layer I: Artifacts & CreationsLayer I: Artifacts & CreationsExamples of cultural attributesExamples of cultural attributes DocumentsDocuments Physical layoutsPhysical layouts FurnishingsFurnishings LanguageLanguage JargonJargon Work ethic and practiceWork ethic and practice Fair day’s work for a fair day’s payFair day’s work for a fair day’s pay LoyaltyLoyalty CommitmentCommitment Helping othersHelping others Performance leads to rewardsPerformance leads to rewards Management equityManagement equity Competency countsCompetency counts

Visible but often not Visible but often not understandableunderstandable

Greater level of awarenessGreater level of awareness

Taken for granted, invisible, Taken for granted, invisible, preconsciouspreconscious Relationship to environmentRelationship to environment

Nature of reality, time, & spaceNature of reality, time, & space Nature of human natureNature of human nature Nature of human activityNature of human activity Nature of human relationsNature of human relations

Testable in the physical Testable in the physical environmentenvironment

Testable only by social Testable only by social consensusconsensus

TechnologyTechnology

ArtArt

Visible and audible behavior Visible and audible behavior patternspatterns


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Organizational Culture and Its Effects

Strong Culture Weak Culture


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HH

OO

MM

EE

MethodsMethods Intervening ConditionsIntervening Conditions OutcomeOutcome

The Evolution of a Positive The Evolution of a Positive CultureCulture

Cohesive Cohesive organizational organizational cultureculture

Develop a Develop a sense of sense of historyhistory

Create a Create a sense of sense of onenessoneness

Promote a Promote a sense of sense of membershipmembership

Increase Increase exchangeexchange among among membersmembers

Elaborate on historyElaborate on history

Communications about and by Communications about and by “heroes” and others“heroes” and others

Leadership and role modelingLeadership and role modeling

Communicating norms and valuesCommunicating norms and values

Reward systemsReward systemsCareer management and job securityCareer management and job securityRecruiting and staffingRecruiting and staffingSocialization of new staff membersSocialization of new staff membersTraining and developmentTraining and development

Member contactMember contactParticipative decision makingParticipative decision makingInter-group coordinationInter-group coordinationPersonal exchangePersonal exchange


2-18Three Views on Influencing Cultural Change: (1 of 2)

1. Cultures are so elusive and hidden that they cannot be adequately diagnosed, managed, or changed

2. Because it takes difficult techniques, rare skills, and considerable time to understand a culture and then additional time to change it, deliberate attempts at culture change are not really practical


2-19Three Views on Influencing Cultural Change: (2 of 2)

3. People will naturally resist change to a new culture

Cultures sustain people through periods of difficulty and serve to ward off anxiety

Cultures provide continuity and stability


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Changing Culture Intervention Points

Hiring and Hiring and socialization of socialization of members who fit members who fit in with the in with the cultureculture

CultureCulture Removal of Removal of members who members who deviate from deviate from the culturethe culture

Cultural Cultural communicationscommunications

Justifications of Justifications of behaviorbehavior

BehaviorBehavior33

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Managers seeking to create culture Managers seeking to create culture change must intervene at these change must intervene at these points.points.


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Socialization and Culture

Socialization –Socialization – the the process by which process by which organizations bring new organizations bring new employees into the employees into the culture.culture.


2-22The Process of Organizational Socialization

Careful selection of Careful selection of entry-level candidatesentry-level candidatesCareful selection of Careful selection of entry-level candidatesentry-level candidates

StartStart DeselectDeselectDeselectDeselect

Humility-inducing experiences Humility-inducing experiences promote openness toward promote openness toward accepting organizational norms accepting organizational norms and valuesand values

Humility-inducing experiences Humility-inducing experiences promote openness toward promote openness toward accepting organizational norms accepting organizational norms and valuesand values

Teaches the new entrant that Teaches the new entrant that he/she doesn’t know everything he/she doesn’t know everything about the job or companyabout the job or company

In-the-trenches training leads to In-the-trenches training leads to mastery of a core disciplinemastery of a core disciplineIn-the-trenches training leads to In-the-trenches training leads to mastery of a core disciplinemastery of a core discipline

Extensive and reinforced on-the-Extensive and reinforced on-the-job experiencejob experience

Rewards and control Rewards and control systems are meticulously systems are meticulously refined to reinforce behavior refined to reinforce behavior that is deemed pivotal to that is deemed pivotal to success in the marketplacesuccess in the marketplace

Rewards and control Rewards and control systems are meticulously systems are meticulously refined to reinforce behavior refined to reinforce behavior that is deemed pivotal to that is deemed pivotal to success in the marketplacesuccess in the marketplace

Adherence to values Adherence to values enables the enables the reconciliation of reconciliation of personal sacrificespersonal sacrifices

Adherence to values Adherence to values enables the enables the reconciliation of reconciliation of personal sacrificespersonal sacrifices

Reinforcing folkloreReinforcing folkloreReinforcing folkloreReinforcing folklore

Keeping alive stories Keeping alive stories that validate the that validate the organization’s cultureorganization’s culture

Consistent role modelsConsistent role modelsConsistent role modelsConsistent role models

Reward and recognize Reward and recognize individuals who have individuals who have done the job welldone the job well

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Socialization Stages

Anticipatory Anticipatory SocializationSocialization

AccommodationAccommodation

Role ManagementRole Management


2-24A Checklist of Effective Socialization Practices

(1 of 2)

Anticipatory socializationRecruitment using realistic job previewsSelection and placement using realistic career

pathsRole management socialization

Provision of professional counselingAdaptive and flexible work assignmentsSincere person-oriented managers


2-25A Checklist of Effective Socialization Practices

(2 of 2)

Accommodation socializationTailor-made and individualized orientation

programsSocial as well as technical skills trainingSupportive and accurate feedbackChallenging work assignmentsDemanding but fair supervisors

Let’s recapitulateLet’s recapitulate


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RECAP 1Organizational Culture

A nation’s culture and subculture affect how transactions are conducted (e.g. marketing, hiring practices, reward programs, supervisor-employee interactions, use of technology)

Learning to operate in a world influenced by national culture differences is becoming a mandatory requirement for effective management. It is important for managers to understand both the national culture and various organizational culture characteristics.


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RECAP 2Culture and societal value

Organizations are able to operate efficiently only when shared values exist among the employees.

‘The guidelines and beliefs that a personUses when confronted with a situation

in which a choice must be made’


2-29

RECAP 3Hofstede provided one useful framework for

understanding the importance of values in organizational behaviour. He proposed 4 value dimensions:

1. Power Distance2. Uncertainty avoidance3. Individualism 4. Masculinity


2-30

RECAP 4

Organizational culture, or corporate culture, comprises the attitudes, experiences, beliefs and values of an organization.


2-31

RECAP 5Organizational culture and its effects:

Since organizational culture involves shared expectations, values, and attitudes, it exerts influence on individuals groups, and organizational processes.

It is useful to differentiate between strong and weak cultures.

Moving on…Moving on…


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Mentor –Mentor – a friend, coach, a friend, coach, advisor or sponsor who advisor or sponsor who supports, encourages, and supports, encourages, and helps a less experienced helps a less experienced protégé.protégé.


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Mentoring Guidelines (1 of 2)

1. Do not dictate mentoring relationships, but encourage leaders/managers to serve a mentors

2. Train mentors in how to be effective in mentoring others3. Include in the firm’s newsletter or in other forms of mass

communication (print and electronic) an occasional story of mentoring as reported by a current top-level executive


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Mentoring Guidelines (2 of 2)

4. Inform employees about the benefits and difficulties of mentor relationships with individuals of different race and gender

5. Make sure there is diversity among the mentors

6. All mentors should be trained in dealing with diversity


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Cultural Diversity

Diversity –Diversity – the vast array of physical and the vast array of physical and cultural differences that constitute the cultural differences that constitute the variety of human differences.variety of human differences.

The managerial challenge will be to The managerial challenge will be to identify ways to integrate the increasing identify ways to integrate the increasing number and mix of people from diverse number and mix of people from diverse national cultures into the workplace.national cultures into the workplace.


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Workforce diversity issues for managers to consider: (1 of 2)

Coping with employees’ unfamiliarity with the English language

Increased training for service jobs that require verbal skills

Cultural (national) awareness training for the current workforce

Learning which rewards are valued by different ethnic groups


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Workforce diversity issues for managers to consider: (2 of 2)

Developing career development programs that fit the skills, needs, and values of the ethnic group

Rewarding managers for effectively recruiting, hiring, and integrating a diverse workforce

Focusing not only on ethnic diversity, but also learning more about the diversities of age, gender, and workers with disabilities


2-39

Spirituality and CultureSpirituality – employees have a personal

or inner life that nourishes and is nourished by performing relevant, meaningful, and challenging workWorkplace spirituality is not the same as

religionSpirituality is a path, is personal and private,

contains elements of many religions, and points to a person’s self-inquiry


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Research on spirituality and work dimensions indicates:Employees who are more spiritually

involved achieve better resultsSpirituality encourages:

trustwork/life balanceempathy and compassion about othersthe value of human assetsthe full development and self-actualization of peopleethical behavior


2-41People management - Organization charts &

hierarchy


2-42People management - Organization charts &

hierarchy


2-43

Hierarchical Organisations

Advantages of Hierarchical Organisations

Disadvantages of Hierarchical Organisations

Authority, responsibility and promotion path are clearly defined

The organization can be bureaucratic and respond slowly to changing customer needs and the market within which the organization operates.

There are specialists managers and the hierarchical environment encourages the effective use of specialist managers.

Communication across various sections can be poor especially horizontal communication.

Employees very loyal to their department within the organisation.

Departments can make decisions which benefit them rather than the business as a whole especially if there is Inter-departmental rivalry.

QuestionsQuestions

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