Chapter

3 Organizational Culture, Socialization

& Mentoring

Organizational Culture, Socialization

& Mentoring Organizational Organizational

Culture: Definition Culture: Definition and Contextand Context

Developing High Developing High Performance Performance CulturesCultures

The The Organizational Organizational Socialization Socialization ProcessProcess

Embedding Embedding Organizational Organizational Culture Through Culture Through MentoringMentoring

Organizational Culture

Organizational Organizational Culture Culture is “The set of shared, taken-for-granted implicit assumptions that a group holds and that determines how it perceives, thinks about, and reacts to its various environments.”

3-2

Understanding Organizational Culture

Antecedents

• Founder’s values

• Industry & business environment• National culture• Senior leaders’ vision and behavior

Organizational Structure &

Practices

• Reward systems

• Organizational

design

Organizational Culture

• Observable artifacts

• Espoused values

• Basic assumptions

Group & Social Processes

• Socialization

• Mentoring• Decision making

• Group dynamics• Communication

• Influence & empowerment• Leadership

Organizational Outcomes

• Effectiveness

• Innovation & stress

Collective Attitudes &

Behavior

• Work attitudes

• Job satisfaction

• Motivation

3-3Figure 3-1

Layers of Organizational Culture

Observable Artifacts physical manifestations of an organization’s culture

Values enduring belief in a mode of conduct or end-state Espoused Values stated values and norms that are

preferred by an organization Enacted Values values and norms exhibited by

employees

Basic Assumptions unobservable—represent the core of organizational culture

3-4

Four Functions of Organizational Culture

Organizationalculture

Sense-makingdevice

Organizationalidentity

Social systemstability

Collectivecommitment

3-4Figure 3-2

Constructive Culture

Constructive Culture employees are encouraged to interact with others and to work on tasks and projects that will assist in satisfying their needs to grow and develop

High priority on constructive interpersonal relationships, and focus on work group satisfaction

Affiliative

Participative, employeecentered, and supportive

Humanistic-encouraging

Value self-development and creativity

Self-actualizing

Goal and achievement oriented

Achievement

Organizational Characteristics

Normative Beliefs

3-5Table 3-1

Passive Defensive Culture

Passive Defensive Culture overriding belief that employees must interact with others in ways that do not threaten their job security

Negative reward system and Defensive avoid accountability

Avoidance

Nonparticipative, centralized decision making, and employees do what they are told

Dependent

Conservative, bureaucratic, and people follow the rules

Conventional

Avoid conflict, strive to be liked by others, and approval oriented

Approval

Organizational Characteristics

Normative Beliefs

3-6Table 3-1 cont.

Aggressive-Defensive Culture

Aggressive-Defensive Culture encourage employees to approach tasks in forceful ways in order to protect their status and job security

Perfectionistic, persistent, and hard working

Perfectionistic

Winning is values and a win-lose approach is used

Competitive

Nonparticipative, take charge of Defensive subordinates, and responsive to superiors

Power

Confrontation and negativism rewarded

Oppositional

Organizational Characteristics

Normative Beliefs

3-7Table 3-1 cont.

Evidence from Organizational Culture Research

1) Organizational culture was significantly correlated with employee attitudes and behavior

2) Congruence between an individual’s values and the organization’s values was associated with organizational commitment, job satisfaction, intentions to quit, and turnover

3) Organizational culture did not predict a company’s financial performance

4) Mergers frequently failed due to incompatible cultures

3-8

Firm succeeds.Business leaders emphasize the importance of

constituencies and leadership in creating the success.

Early business leaders create an implement a business visionand strategy that fits the business environment well.

A strong culture emerges with a core that emphasizes service to customers, stockholders, and employees, as well as the importance of leadership.

Subsequent top managers work to preserve theadaptive core of the culture.

They demonstrate greater commitment to itsbasic principles than any specific business

strategy or practice.

Developing an Adaptive Culture3-9

Figure 3-3

Embedding Culture in Organizations

1) Formal statements of organizational philosophy, mission, vision, values, and materials used for recruiting, selection and socialization

2) The design of physical space, work environments and buildings

3) Slogans, acronyms, and sayings4) Deliberate role modeling, training programs,

teaching and coaching by managers and supervisors

5) Explicit rewards, status symbols (e.g. titles), and promotion criteria

6) Stories, legends, or myths about key people and events

3-10

Embedding Culture in Organizations Cont.

7) The organizational activities, processes, or outcomes that leaders pay attention to, measure, and control

8) Leader reactions to critical incidents and organization crises

9) The workflow and organizational structure10) Organizational systems and procedures11) Organizational goals and the associated

criteria for recruitment, selection, development, promotion, layoffs, and retirement of people

3-11

Organizational Socialization

Phases Perceptual and Social Processes

1) Anticipatory socialization learning that occurs prior to joining the organization

Anticipating realities about the organization and the new job

Anticipating organization’s needs for one’s skills and abilities

Anticipating organization’s sensitivity to one’s needs and values

3-12Figure 3-4

Organizational Socialization

Phases Perceptual and Social Processes

2) Encounter values, skills, and attitudes start to shift as new recruit discovers what the organization is truly like

Managing lifestyle-versus-work conflicts

Managing intergroup role conflicts

Seeking role definition and clarity

Becoming familiar with task and group dynamics

3-13Figure 3-4 cont.

Organizational Socialization

Phases Perceptual and Social Processes

3) Change and acquisition recruit masters skills and roles and adjusts to work group’s values and norms

Competing role demands are resolved

Critical tasks are mastered

Group norms and values are internalized

3-14Figure 3-4 cont.

Organizational Socialization

Phases

1) Anticipatory socialization2) Encounter

3) Change and acquisition

Outsider

Behavioral Outcomes

Performs role assignments

Remains with organization

Spontaneously innovates and

cooperates

Socialized Insider Affective Outcomes

Generally satisfied

Internally motivated to work

High job involvement

3-15Figure 3-4 cont.

Socialization Tactics

Not clearly distinguishing a newcomer from more experienced members

Informal

Practice of segregating a newcomer from regular organization members during a defined socialization period

Formal

Treating each newcomer individually and exposing him or her to more less unique experiences

Individual

Consists of grouping newcomers & exposing them to a common set of experiences

Collective

DescriptionTactic

3-16Table 3-2

Socialization Tactics

Does not provide a timetable for the assumption of the role

Variable

Provides a timetable for the assumption of the role

Fixed

Ambiguous or dynamic progression of steps that culminate in the new role

Random

Refers to a fixed progression of steps that culminate in the new role

Sequential

DescriptionTactic

3-17Table 3-2 cont.

Socialization Tactics

Denial and stripping away of the newcomer’s existing sense of self and the reconstruction of the organization’s image

Divestiture

Affirmation of newcomer’s incoming global and specific role identities and attributes

Investiture

Does not use a role modelDisjunctive

Newcomer is socialized by an experienced member

Serial

DescriptionTactic

3-18Table 3-2 cont.

Mentoring

MentoringMentoring is the process of forming and maintaining intensive and lasting developmental relationships between a variety of developers and a junior person

3-19

Functions of Mentoring

Career Functions Sponsorship Exposure-and-Visibility Coaching Protection Challenging

Assignments Psychological

Functions Role Modeling Acceptance-and-

Confirmation Counseling Friendship

3-20

Developmental Networks Associated with Mentoring

• D2

D1 •• P

Receptive

• D2

D1 •• P

Traditional

Entrepreneurial

• P

Opportunistic

Developmental Relationship StrengthWeak Ties Strong Ties

D1 • • D2

D3 • • D4

Low Range

High Range

Develo

pm

en

tal R

ela

tion

sh

ip D

ivers

ity

Key:

D = developer

P = protege

• P

D1 • • D2

D3 • • D4

3-21Figure 3-5

Enron’s Organizational Culture Contributed to Its Financial and Legal Problems

1) Using Figure 3-1, explain how Enron’s culture influenced organizational structure and practices, group and social processes, collective attitudes and behavior, and ultimately organizational outcomes.

2) How would you describe the type of organizational culture that existed at Enron?

3) What are the shared things, sayings, doings, and feelings at Enron? Explain.

4) Which of the techniques for embedding organizational culture were used at Enron? Explain.

Questions for Discussion:Questions for Discussion:

3-22OB in Action Case Study

Enron’s Organizational Culture Contributed to Its Financial and Legal Problems

5) How were employees socialized to act entrepreneurial? Provide examples.

6) How would you change the culture at Enron if you were its new CEO? Provide specific recommendations.

Questions for Discussion Cont.:Questions for Discussion Cont.:

3-23OB in Action Case Study

Arthur Andersen’s Pursuit of Consulting Income Created Ethical Challenges in its

Auditing Operations

1) Vigorously challenge Waste Management employees to correct their accounting practices.

2) Go to your manager when you first realize Waste Management was not following generally accepted accounting principles and tell him/her that you will not work on this account until Waste Management changes its ways.

3) Complete the work as best you can because your efforts contribute to Anderson’s financial goals.

4) Invent other options. Discuss

What would you have done if you were What would you have done if you were auditing Waste Management’s financial auditing Waste Management’s financial statements?statements?

3-24Ethical Dilemma