chptr 14.ppt organizational culture

7/29/2019 chptr 14.ppt organizational culture

1/25

Microsoft PowerPoint Presentation to Accompany

Organizational

BehaviorSEVENTH EDITION

Gregory Moorhead and Ricky W. Griffin


2/25

Chapter 18

Organization Culture


3/25

Copyright by Houghton Mifflin Company. All rights reserved. 3

Learning Objectives

Define organization culture and explain how itaffects employee behavior.

Summarize the historical development oforganization culture.

Describe two different approaches to culture inorganizations.

Identify two emerging issues in organizationculture.

Describe the relationships among organizationculture, creativity, and innovation.

Discuss the key elements of managing theorganization culture.


4/25


The Nature of Organization Culture

What Is Organization Culture?

There is no single widely accepted definition.

The set of values that helps the organizationsemployees understand which actions areconsidered acceptable and which actions are

considered unacceptable.


5/25


The Nature of Organization Culture[continued]

Definitions of culture have three things incommon:

They define culture in terms of the values thatindividuals in organizations use to prescribe

appropriate behavior. They assume that values are usually taken for

granted.

They emphasize the stories and other symbolic

means through which the values typically arecommunicated.


6/25


Historical Foundations

Social science disciplines have contributedto the understanding of organizationculture. These disciplines include:

Anthropology (the study of human cultures).

Sociology (the study of people in socialsystems).

Social Psychology (the study of groups and

the influence of social factors on individuals). Economics (attempts to link the cultural

attributes of firms with their performance).


7/25


Culture Versus Climate

Culture The study of organizational culture was based

in anthropology and sociology.

Typically refers to:

The historical context of a situation and

The impact of the context on the behavior ofemployees

Is the means through which employees learnand communicate what is acceptable andunacceptable in the organization.


8/25


Culture Versus Climate [continued]

Climate The study of climate was based in psychology.

Usually refers to:

Current atmosphere in the organization and

The linkage among work groups, employees, andwork performance

Is more easily manipulated than culture.

Does not deal with values and norms.


9/25


Creating the Organization Culture

Creating an organizations culture Is the process of linking its strategic values

with its cultural values, much as the structureof the organization is linked to its strategy.


10/25


Table 18.2 Creating Organization Culture


11/25


Creating the Organization Culture

Step 1: Formulate Strategic Values

Strategic values are the basic beliefs about anorganizations environment that shape its strategy.

Step 2: Develop Cultural Values

Cultural values are morals that employees need tohave and act on for the organization to carry out itsstrategic values.

Step 3: Create Vision

After developing its strategic and cultural values, theorganization must establish a vision of theorganizations direction.


12/25


Creating the Organization Culture[continued]

Step 4: Initiate Implementation Strategies Implementation strategies cover many factors,

from developing the organization design torecruiting and training employees who share

the values and will carry them out.

Step 5: Reinforce Cultural Behavior

The final step is to reinforce the behaviors of

employees as they act out the cultural valuesand implement the organizations strategies.


13/25


Approaches to Describing Organizational Culture

The Ouchi Framework William G. Ouchi developed a list of seven points to compare the

cultures of U.S. firms, Japanese firms, and Type Z firmsTable 18.3 The Ouchi Framework


14/25


The Ouchi Framework: Attributes ofa Type Z Firm

Commitment

Is committed to retaining employees.

Evaluation

Assesses workers long term performance based onboth qualitative and quantitative information.

Careers

Emphasizes broad rather than narrow career paths.

Control

Exercises control through informal, implicitmechanisms.


15/25


The Ouchi Framework: Attributes ofa Type Z Firm [continued]

Decision making Requires that decision making occur in groups and be

based on full information sharing and consensus.

Responsibility Expects individual to take responsibility for decisions.

Concern for people

Emphasizes a holistic concern for people.

Type Z and performance Cultural differences can account for performance

differences in companies.


16/25


The Peters and Waterman ApproachTom Peters and Robert Waterman

Sampled highly successful U.S. firms and

sought to describe management practices thatled to their success.

Published In Search of Excellencewhich ledto the development of their list of excellentorganization values


17/25


The Peters and Waterman Framework Table 18.4

E i I i O i ti


18/25


Emerging Issues in OrganizationCulture

Innovation The process of creating and doing new thingsthat are introduced into the marketplace asproducts, processes, or services.

Innovation involves every aspect of theorganization: research and development,manufacturing, and marketing.


19/25


Emerging Issues in OrganizationCulture [continued]

Types of Innovation

Radical innovation is a major breakthrough that

changes or creates whole industries. Systems innovation creates a new functionality by

assembling parts in new ways.

Incremental innovation continues the technical

improvement and extends the applications ofradical and systems innovation.


20/25



Innovation (continued)

New Ventures

Intrapreneurship is entrepreneurial activity that

takes place within the context of a largeorganization.

Corporate Research

Internal innovations that support current

businesses by providing incremental innovationsand keeping products technologically advanced.


21/25



Empowerment The process of enabling workers to set theirown work goals, make decisions, and solveproblems within their sphere of responsibility

and authority.

Procedural Justice

The extent to which the dynamics of an

organizations decision-making processes arejudged to be fair by those who are mostaffected by them.


22/25


Managing Organizational Culture

Taking Advantage of the Existing Culture

Developing an understanding of howorganizational values operate in the firm.

Using the values in managing othersbehaviors in the firm.

Communicating the values to lower-level

managers for use as guides to their decisionmaking.

O l l


23/25


Managing Organizational Culture[continued]

Teaching the Organizational Culture

Socialization

Is the process through which individuals become

social beings.

Organizational Socialization

Is the process through which employees learnabout their firms culture and pass their knowledgeand understanding onto others.


24/25


Managing Organizational Culture:Changing the Organizational Culture

[continued]Managing Symbols

Organizational culture is understood andcommunicated through the use of stories andother symbolic media.

Managers should substitute stories and mythsthat support new cultural values for those that

support old ones.


25/25


Managing Organizational Culture:Changing the Organizational Culture

[continued]The Difficulty of Change

Increases with managers tendencies to revertto old ways, causing lower-level employees to

lose faith in the change.

The Stability of Change

The self-reinforcing nature of value systems

makes change difficult to implement. New ideas and beliefs can be as stable and

influential as old ones.

chptr 14.ppt organizational culture

Documents