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Organizational Culture Dr. Salma Chad BBA 200

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

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  • Organizational CultureDr. Salma ChadBBA 200

  • Organizational Culture?

    McGraw-Hill/Irwin 2005 The McGraw-Hill Companies, Inc. All rights reserved.2-*

    IntroductionNational culture: the sum total of the beliefs, rituals, rules, customs, artifacts, and institutions that characterize the populationA nations culture and sub-cultures effect how organizational transactions are conductedLearning to operate in a world influenced by national culture is becoming a requirement for effective management

    McGraw-Hill/Irwin 2005 The McGraw-Hill Companies, Inc. All rights reserved.2-*

    Organizational Culture and Societys Values (1 of 2)Values the conscious, affective desires or wants of people that guide their behaviorOrganizations are able to operate efficiently only when shared values exist among the employeesAn individuals personal values guide behavior on and off the job

    McGraw-Hill/Irwin 2005 The McGraw-Hill Companies, Inc. All rights reserved.2-*

    Organizational Culture and Societys Values (2 of 2)Values are a societys ideas about what is right or wrong

    Values are passed from one generation to the next

    McGraw-Hill/Irwin 2005 The McGraw-Hill Companies, Inc. All rights reserved.2-*

    Hofstedes Four Value Dimensions(1 of 2)

    DimensionDescriptionPower DistanceThe level of acceptance by a society of the unequal distribution of power in organizationsIn higher power distance cultures, employees acknowledge the bosss authority and follow the chain of commandThe result is a more centralized authority and structureUncertainty AvoidanceThe 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 proceduresManagers in these countries tend towards low-risk decision-makingEmployees exhibit little aggressiveness

    McGraw-Hill/Irwin 2005 The McGraw-Hill Companies, Inc. All rights reserved.2-*

    Hofstedes Four Value Dimensions(2 of 2)

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

    McGraw-Hill/Irwin 2005 The McGraw-Hill Companies, Inc. All rights reserved.2-*

    Cultural Values (1 of 4)

    Region / CountryIndividualism-CollectivismPower DistanceUncertainty AvoidanceMasculinity-FemininityOther DimensionsNorth America(USA)IndividualismLowMediumMasculineJapanCollectivismHigh and LowHighMasculine and FeminineAmae (mutual dependence)ChinaCollectivismLowLowMasculine and FeminineEmphasis on tradition, Marxism, Leninism, and Mao Zedong thought

    McGraw-Hill/Irwin 2005 The McGraw-Hill Companies, Inc. All rights reserved.2-*

    Cultural Values (2 of 4)

    Region / CountryIndividualism-CollectivismPower DistanceUncertainty AvoidanceMasculinity-FemininityOther DimensionsEurope: Anglo Germanic West Slavic West Urgic Near Eastern Balkanic

    Nordic Individualism

    Medium individualism

    Collectivism

    Medium/high individualismLow/medium

    Low

    High

    Low

    Low/medium

    Medium/high

    High

    Low/mediumMasculine

    Medium/high masculine

    Medium masculineFeminine

    McGraw-Hill/Irwin 2005 The McGraw-Hill Companies, Inc. All rights reserved.2-*

    Cultural Values (3 of 4)

    Region / CountryIndividualism-CollectivismPower DistanceUncertainty AvoidanceMasculinity-FemininityOther DimensionsEurope: (contd) Latin Europe

    East Slavic Individualism

    Medium/high individualismCollectivismLow/medium

    High

    LowLow/medium

    High

    MediumMasculine

    Medium masculineMasculine

    McGraw-Hill/Irwin 2005 The McGraw-Hill Companies, Inc. All rights reserved.2-*

    Cultural Values (4 of 4)

    Region / CountryIndividualism-CollectivismPower DistanceUncertainty AvoidanceMasculinity-FemininityOther DimensionsAfricaCollectivismHighHighFeminineColonial traditions; tribal customsLatin AmericaCollectivismHighHighMasculineExtroverted; prefer orderly customs and procedures

    McGraw-Hill/Irwin 2005 The McGraw-Hill Companies, Inc. All rights reserved.2-*

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

    McGraw-Hill/Irwin 2005 The McGraw-Hill Companies, Inc. All rights reserved.2-*

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

    McGraw-Hill/Irwin 2005 The McGraw-Hill Companies, Inc. All rights reserved.2-*

    Edgar Scheins 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.

    McGraw-Hill/Irwin 2005 The McGraw-Hill Companies, Inc. All rights reserved.2-*

    Scheins Three-Layer Organizational Culture ModelLayer III: Basic AssumptionsLayer II: ValuesLayer I: Artifacts & CreationsExamples of cultural attributes Documents Physical layouts Furnishings Language Jargon Work ethic and practice Fair days work for a fair days pay Loyalty Commitment Helping others Performance leads to rewards Management equity Competency countsVisible but often not understandable

    Greater level of awarenessTaken for granted, invisible, preconscious Relationship to environment Nature of reality, time, & space Nature of human nature Nature of human activity Nature of human relations Testable in the physical environment Testable only by social consensus Technology Art Visible and audible behavior patterns

    McGraw-Hill/Irwin 2005 The McGraw-Hill Companies, Inc. All rights reserved.2-*

    Organizational Culture and Its EffectsStrong CultureWeak Culture

    McGraw-Hill/Irwin 2005 The McGraw-Hill Companies, Inc. All rights reserved.2-*

    HOMEMethodsIntervening ConditionsOutcomeThe Evolution of a Positive CultureCohesive organizational cultureDevelop a sense of historyCreate a sense of onenessPromote a sense of membershipIncrease exchange among membersElaborate on historyCommunications about and by heroes and othersLeadership and role modelingCommunicating norms and valuesReward systemsCareer management and job securityRecruiting and staffingSocialization of new staff membersTraining and developmentMember contactParticipative decision makingInter-group coordinationPersonal exchange

    McGraw-Hill/Irwin 2005 The McGraw-Hill Companies, Inc. All rights reserved.2-*

    Three Views on Influencing Cultural Change: (1 of 2)Cultures are so elusive and hidden that they cannot be adequately diagnosed, managed, or changed

    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

    McGraw-Hill/Irwin 2005 The McGraw-Hill Companies, Inc. All rights reserved.2-*

    Three Views on Influencing Cultural Change: (2 of 2)People will naturally resist change to a new cultureCultures sustain people through periods of difficulty and serve to ward off anxietyCultures provide continuity and stability

    McGraw-Hill/Irwin 2005 The McGraw-Hill Companies, Inc. All rights reserved.2-*

    Changing Culture Intervention PointsHiring and socialization of members who fit in with the cultureCultureRemoval of members who deviate from the cultureCultural communicationsJustifications of behaviorBehavior32145Managers seeking to create culture change must intervene at these points.

    McGraw-Hill/Irwin 2005 The McGraw-Hill Companies, Inc. All rights reserved.2-*

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

    McGraw-Hill/Irwin 2005 The McGraw-Hill Companies, Inc. All rights reserved.2-*

    The Process of Organizational SocializationCareful selection of entry-level candidatesStartDeselectHumility-inducing experiences promote openness toward accepting organizational norms and valuesTeaches the new entrant that he/she doesnt know everything about the job or companyIn-the-trenches training leads to mastery of a core disciplineExtensive and reinforced on-the-job experienceRewards and control systems are meticulously refined to reinforce behavior that is deemed pivotal to success in the marketplaceAdherence to values enables the reconciliation of personal sacrificesReinforcing folkloreKeeping alive stories that validate the organizations cultureConsistent role modelsReward and recognize individuals who have done the job well1234567

    McGraw-Hill/Irwin 2005 The McGraw-Hill Companies, Inc. All rights reserved.2-*

    Socialization StagesAnticipatory SocializationAccommodationRole Management

    McGraw-Hill/Irwin 2005 The McGraw-Hill Companies, Inc. All rights reserved.2-*

    A Checklist of Effective Socialization Practices(1 of 2)Anticipatory socializationRecruitment using realistic job previewsSelection and placement using realistic career pathsRole management socializationProvision of professional counselingAdaptive and flexible work assignmentsSincere person-oriented managers

    McGraw-Hill/Irwin 2005 The McGraw-Hill Companies, Inc. All rights reserved.2-*

    A 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

  • Lets recapitulate

    McGraw-Hill/Irwin 2005 The McGraw-Hill Companies, Inc. All rights reserved.2-*

    RECAP 1Organizational CultureA nations 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.

    McGraw-Hill/Irwin 2005 The McGraw-Hill Companies, Inc. All rights reserved.2-*

    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 situationin which a choice must be made

    McGraw-Hill/Irwin 2005 The McGraw-Hill Companies, Inc. All rights reserved.2-*

    RECAP 3Hofstede provided one useful framework for understanding the importance of values in organizational behaviour. He proposed 4 value dimensions:

    Power DistanceUncertainty avoidanceIndividualism Masculinity

    McGraw-Hill/Irwin 2005 The McGraw-Hill Companies, Inc. All rights reserved.2-*

    RECAP 4

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

    McGraw-Hill/Irwin 2005 The McGraw-Hill Companies, Inc. All rights reserved.2-*

    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

    McGraw-Hill/Irwin 2005 The McGraw-Hill Companies, Inc. All rights reserved.2-*

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

    McGraw-Hill/Irwin 2005 The McGraw-Hill Companies, Inc. All rights reserved.2-*

    Mentoring Guidelines (1 of 2)Do not dictate mentoring relationships, but encourage leaders/managers to serve a mentorsTrain mentors in how to be effective in mentoring othersInclude in the firms newsletter or in other forms of mass communication (print and electronic) an occasional story of mentoring as reported by a current top-level executive

    McGraw-Hill/Irwin 2005 The McGraw-Hill Companies, Inc. All rights reserved.2-*

    Mentoring Guidelines (2 of 2)Inform employees about the benefits and difficulties of mentor relationships with individuals of different race and genderMake sure there is diversity among the mentorsAll mentors should be trained in dealing with diversity

    McGraw-Hill/Irwin 2005 The McGraw-Hill Companies, Inc. All rights reserved.2-*

    Cultural DiversityDiversity the vast array of physical and cultural differences that constitute the variety of human differences.The managerial challenge will be to identify ways to integrate the increasing number and mix of people from diverse national cultures into the workplace.

    McGraw-Hill/Irwin 2005 The McGraw-Hill Companies, Inc. All rights reserved.2-*

    Workforce diversity issues for managers to consider: (1 of 2)Coping with employees unfamiliarity with the English languageIncreased training for service jobs that require verbal skillsCultural (national) awareness training for the current workforceLearning which rewards are valued by different ethnic groups

    McGraw-Hill/Irwin 2005 The McGraw-Hill Companies, Inc. All rights reserved.2-*

    Workforce diversity issues for managers to consider: (2 of 2)Developing career development programs that fit the skills, needs, and values of the ethnic groupRewarding managers for effectively recruiting, hiring, and integrating a diverse workforceFocusing not only on ethnic diversity, but also learning more about the diversities of age, gender, and workers with disabilities

    McGraw-Hill/Irwin 2005 The McGraw-Hill Companies, Inc. All rights reserved.2-*

    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 persons self-inquiry

    McGraw-Hill/Irwin 2005 The McGraw-Hill Companies, Inc. All rights reserved.2-*

    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

    McGraw-Hill/Irwin 2005 The McGraw-Hill Companies, Inc. All rights reserved.2-*

    People management - Organization charts & hierarchy

    McGraw-Hill/Irwin 2005 The McGraw-Hill Companies, Inc. All rights reserved.2-*

    People management - Organization charts & hierarchy

    McGraw-Hill/Irwin 2005 The McGraw-Hill Companies, Inc. All rights reserved.2-*

    Hierarchical Organisations

    Advantages of Hierarchical OrganisationsDisadvantages of Hierarchical OrganisationsAuthority, responsibility and promotion path are clearly definedThe 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.

  • Questions?

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