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pmculture 1 Organizational Culture

Pmculture1 Organizational Culture. pmculture 2 Organizational Culture

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  • Organizational Culture

    pmculture

  • Organizational Culture

    pmculture

  • The organizational wayWhat Corporate culture stands for !!!!!

    pmculture

  • What can you readily identify, but cant accurately define?What does every great business have that other competitors do not?What is it makes a business into a cult?Its the culture Organizational Culture

    pmculture

  • The way we do things around hereOrganizational Culture

    pmculture

  • The way we do things around here

    pmculture

  • The shared values and norms in an organization that are taught to incoming employees.It involves common beliefs and feelings, regularities in behavior, historical process for transmitting values and norm.There are three ways to do things around here:The right way.The wrong wayOur way (the company way).Organizational CultureThe way we do things around here

    pmculture

  • The company wayOrganizational Culture is the collection of beliefs, expectations, and values learned and shared by a corporations members and transmitted form one generation of employees to another.

    pmculture

  • The company wayThe beliefs and values shared by people who work in an organizationHow people behave with each otherHow people behave with customers/clientsHow people view their relationship with stakeholdersPeoples responses to energy use, community involvement, absence, work ethic, etc.How the organisation behaves to its employees training, professional development, etc.

    pmculture

  • Organizational CultureMay be driven by:Vision where the organization wants to go in the futureMission Statement summary of the beliefs of the organization and where it is now

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  • Organizational CultureMay be reflected in:Attitude and behaviour of the leadershipAttitude to the role of individuals in the workplace open plan offices, team based working, etc.Logo of the organization The image it presents to the outside worldIts attitude to change

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  • Organizational CultureWhat corporate culture do you think the following businesses have managed to develop?

    Virgin GroupCopyright: Joshua2150, http://www.sxc.huThe Body ShopCopyright: fadaquiqa, http://www.sxc.huMcDonaldsCopyright: alexallied http://www.sxc.huNikeCopyright: alexbol http://www/sxc.hu

    pmculture

  • The company wayThe organizational culture generally reflects the values of the founder(s) and the mission of the firm.Cultural Intensity: Is the degree to which members of a unit accept the norms, values, or other culture content associated with the unit. (Depth)Cultural Integration: Is the extent to which units throughout an organization share a common culture. (Breadth)

    pmculture

  • Beliefs and values of the organizations founderSocietal norms of firms native/host countryProblems of external adaptation and survivalProblems of internal integrationCreation of Organizational Culture

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  • Managing Performance through culture

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  • The trick that many organizations have missed is that shared behavior in organizations (culture) does not come because they teach people how to behave in a particular way. The behavior comes as a consequence of a number of different drivers.These drivers include:Reward systems;The way that winners and losers are defined and treated; The examples that are provided by influential managers, and where they place their emphasis; The nature of the work, and the degree to which tasks are mechanized; The structure. Enhancing performance through culture drivers

    pmculture

  • Working with behavior alone is unlikely to produce any sustainable change. It is the drivers that influence behavior.If you want to change behavior, change the drivers.As a part of the strategic planning process, it is essential to understand how the organizational culture influences results today, and what limits it might put on your capacity to change the future. There are two characteristics that have a big impact on culture: Fear and FreedomEnhancing performance through culture drivers

    pmculture

  • Fear is a primary driver of human behavior.To a greater or lesser extent we are all defined by our fear.Add a little fear into an organization and people stop taking chances, spend more time diluting responsibility in meetings, and introduce lots of checking steps.If the fear persists for years, then people become increasingly uncomfortable with even minor change.Build an organization with low levels of fear and you will see the opposite. Here you will find creativity, limited use of hierarchy to get things done, all kinds of attempts to make changes, and probably some genuine breakthroughs.Fear

    pmculture

  • You can measure the fear level using the following questions:What are people afraid of in this organization (losing their jobs, making mistakes, not getting pay increase, their managers. etc)?How rational is that fear?How does that fear affect their behavior?To what extent have the current managers developed this fear?Fear

    pmculture

  • People need to have freedom to work within fairly broad guidelines so that they can get the required outcomes.To be able to confer this freedom, an organization needs to be confident it has the right people, the right information systems to support their decision making process and the right feedback system to ensure that every thing does not go of the rails.When people have this freedom, then the organization finds ways around day-to-day problems and it is able to cater for new challenges and opportunities. Freedom

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  • Fear-freedom MatrixFearfreedomLowLowHighHigh

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  • Low fear + High freedom = innovative, accepting of change, experimental.Low fear + Low freedom = frustration, challenge of authority, rules will be broken.High fear + High freedom = upward delegation, meetings to share decisions, low innovation.High fear + Low freedom = dependence on rules and precedents, resistance to change.Fear-freedom Matrix

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  • Organizational Culture Dimensions

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  • Artifacts/Symbols-Visible objects, actions, stories that represent the culture-Most easily changed-Rites, rituals, ceremonies-Stories, myths, legends-Symbols-Language/jargon/gestures

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  • Behavior Patterns- Shared ways of interacting, approaching a task- Shared ways of responding to something new

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  • Norms

    Socially constructed preferences-Group expectations about how things should be done

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  • ValuesPreferred statesFeelings & beliefs about whats good or right

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  • Shared Assumptions- Taken for granted- Not conscious- Hard to change

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  • Culture Differences

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  • Research on pace of life in various countries suggest that Westerners have fairly precise measures of time and a stronger concern for punctuality than most other peopleMono-chronic style individuals focus on one thing at a time; characteristic of USAPoly-chronic style individuals focus on several things at one time; characteristics of Latin American countriesCultural Differences

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  • Research has shown that countries differ significantly inInterpersonal trustPower-distanceAvoidance of uncertaintyIndividualism vs. CollectivismMen vs. women. Long term Vs. short term orientationDimensions of Cultural Differences

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  • Few people rush into businessMen and women congregate into separate groups at social functionsLatin Americans stand more closely to each other than North Americans when in conversationMen may embraceDoing Business in Latin America

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  • Guests are expected to arrive late, with exception of American guestsLittle concern about deadlinesMachismo - expectation that businessmen will display forcefulness, self-confidence, leadership with flourishFatalismDoing Business in Latin America (Cont.)

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  • Japan, Korea, ChinaMeetings devoted to pleasantries; serving tea, engaging in chitchatSeniors and elders command respectConsciously use slow down techniques as bargaining ploysBusiness cards should be bilingualDoing Business in East Asia

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  • Protocol-consciousDo business only with highest ranking executivesAppear stiff and dullMore expressive in private than in publicHard to draw up contracts due to language barriersHave no advertising experienceDoing Business in Russia

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  • Prefer to act through trusted third partiesPersonal honor given high premiumFatalismEmotionally expressiveIntense eye contactGuests should avoid discussing politics, religion, hosts family and personal professionsDoing Business in the Middle East

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  • Some important culture differencesRose Knotts summarized important cultural differences between U.S. and foreign managers as follow: Americans place an exceptionally high priority on time, viewing time as an asset. Many foreigners place more worth on relationships. This difference results in foreign mangers often viewing U.S. managers as more interested in business than people.Personal touching and distance norms differ around the world. Americans generally stand three feet from each other in carrying on business conversations, but Arabs and Africans stand about one foot apart. Touching another person with the left hand in business dealings is taboo in some countries. Americans managers need to learn personal rules of foreign managers with whom they interact in business.

    pmculture

  • Some important culture differencesPeople in some cultures do not place the same significance on material wealth as Americans often do. Lists of the largest corporations and highest paid executives abound in the untied states. More is better and Bigger is better in the united states, but not everywhere else. This can be a consideration in trying to motivate individuals in other countries. Family roles and relationships vary in different countries. For example, males are viewed more than females in some cultures, and peer pressure, work situations, and business interactions reinforce this phenomenon. Language differs dramatically across countries, even countries where people speak the language. Words and expressions commonly used in one country may be greedy or disrespectful in another.

    pmculture

  • Some important culture differences6 Business and daily life in some societies is governed by religious factors. Prayer times, holidays, daily events, and dietary restrictions, for example, need to be respected by American managers not familiar with these practices in some countries. 7. Time spent with family and quality of relationships are more important in some cultures than the personal achievement and accomplishments espoused by the traditional American managers. For example, where a person is in the hierarchy of a firms organizational structure, how large the firm is, and where the firm is located are much more important factors to American managers than to many foreign managers.

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    Vertical Loading: The intent here is to close the gap between doing and managing. When a job is vertically loaded, responsibilities and controls formerly reserved for management are given to employees as part of the job. E.g.: deciding on work methods, advising training, providing increased freedom in time management, encouraging workers to do their own trouble-shooting, provide workers with increased knowledge of the financial aspects.Forming natural work teams: This gives employees ownership of the work and improves the chances they will view it as meaningful and important rather than irrelevant and boring.Establishment of customer relationships: direct relationships between workers and clients creates additional opportunities for feedback, increases the need to develop and exercise interpersonal skills, increases autonomy by giving individuals personal responsibility for deciding how to manage their relationships with people who receive the output of their work.Combine jobs: putting jobs together increases task identity and requires the individual to use a greater variety of skills in performing the job, increasing the meaningfulness of the work.Employee receipt of direct feedback: it usually is advantageous for workers to learn about their performance directly as they do their job rather than from management on occasional basis.Vertical Loading: The intent here is to close the gap between doing and managing. When a job is vertically loaded, responsibilities and controls formerly reserved for management are given to employees as part of the job. E.g.: deciding on work methods, advising training, providing increased freedom in time management, encouraging workers to do their own trouble-shooting, provide workers with increased knowledge of the financial aspects.Forming natural work teams: This gives employees ownership of the work and improves the chances they will view it as meaningful and important rather than irrelevant and boring.Establishment of customer relationships: direct relationships between workers and clients creates additional opportunities for feedback, increases the need to develop and exercise interpersonal skills, increases autonomy by giving individuals personal responsibility for deciding how to manage their relationships with people who receive the output of their work.Combine jobs: putting jobs together increases task identity and requires the individual to use a greater variety of skills in performing the job, increasing the meaningfulness of the work.Employee receipt of direct feedback: it usually is advantageous for workers to learn about their performance directly as they do their job rather than from management on occasional basis.Vertical Loading: The intent here is to close the gap between doing and managing. When a job is vertically loaded, responsibilities and controls formerly reserved for management are given to employees as part of the job. E.g.: deciding on work methods, advising training, providing increased freedom in time management, encouraging workers to do their own trouble-shooting, provide workers with increased knowledge of the financial aspects.Forming natural work teams: This gives employees ownership of the work and improves the chances they will view it as meaningful and important rather than irrelevant and boring.Establishment of customer relationships: direct relationships between workers and clients creates additional opportunities for feedback, increases the need to develop and exercise interpersonal skills, increases autonomy by giving individuals personal responsibility for deciding how to manage their relationships with people who receive the output of their work.Combine jobs: putting jobs together increases task identity and requires the individual to use a greater variety of skills in performing the job, increasing the meaningfulness of the work.Employee receipt of direct feedback: it usually is advantageous for workers to learn about their performance directly as they do their job rather than from management on occasional basis.