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Chapter 16Nelson & Quick
Organizational Culture
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Organizational (Corporate) Culture
A pattern of basic assumptions that are considered valid and that are taught to new members as the way to perceive, think, and feel in the organization
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Levels of Organizational
Culture
Artifacts - s symbols ofculture in the physical
and social work environment
ValuesEspoused: what members of an organization say they valueEnacted: reflected in the way individuals actually behave
Assumptions - deeply held beliefs that guide behavior and tell members of an organization how to perceive and think about things
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OrganizationalCulture Levels
Artifacts : Personal enactmentCeremonies and ritesStoriesRitualSymbols
Values: Testable in physical environmentTestable only by social consensus
Assumptions Relationship to environmentNature of reality, time, and spaceNature of human natureNature of human activityNature of human relationships
Visible, often not decipherable
Greater levelof awareness
Taken for granted Invisible
Preconscious
Reprinted with permission from Edgar H. Schein, OrganizationalCulture and Leadership: A Dynamic View. Copyright © 1985 Jossey-Bass Inc, asubsidiary of John Wiley & Sons, Inc.
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Functions of Organizational Culture
Culture provides a sense of identity to members and increases their commitment to the organization
Culture is a sense-making device for organization members
Culture reinforces the values in the organization
Culture serves as a control mechanism for shaping behavior
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AdaptivePerspective
Theories about the relationship between organizational culture and performance
Strong Culture
Perspective
FitPerspective
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An organizational culture with a consensus on the values that drive the company and with an intensity that is recognizable even to outsiders
Strong cultures facilitate performance because • They are characterized by goal alignment• They create a high level of motivation because
of shared values by the members• They provide control without the oppressive
effects of bureaucracy
Strong Culture
Perspective
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Argument that a culture is good only if it fits the industry’s or the firm’s strategy. Fit
Perspective
Organizational characteristics that may affect culture Customer requirements Competitive environment Societal expectations
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An organizational culture that encourages confidence and risk taking among employees, has leadership that produces change, and focuses on the changing needs of customers
Adaptive Nonadaptive
Most managers careabout themselves,their work group, oran associated product
Most managers care about customers,stockholders, and employees
Managers tend tobehave somewhat insularly, politically,and bureaucratically
Managers pay close attention to alltheir constituencies,esp. customers
Core Values
CommonBehavior
Reprinted with the permission of The Free Press, a Division of Simon & Schuster, Inc. from Corporate Culture and Performance by John P. Kotter and James L Heskett. Copyright © 1992 by Kotter Associates, Inc. and James L. Heskett.
AdaptivePerspective
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Five Most Important Elements in Managing Culture
What leaders pay attention to
How leaders react to crises
How leaders behave
How leaders allocate rewards
How leaders hire and fire individuals
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Organizational Socialization
The process by which newcomers are transformed from outsiders to participating, effective members of the organization
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Stages of Socialization
Realism Congruence 1. Anticipatory Socialization
2. Encounter
Job demands•Task •Role •Interpersonal
3. Change andAcquisition
Mastery
PerformanceSatisfactionMutual influenceLow levels of distressIntent to remain
Outcomes of SocializationOutcomes of Socialization
From “An Ethical Weather Repart: Assessing the Organizaiton’s Ethical Climate” by John B. Cullen, etal. In Organizational Dynamics, Autumn 1989. Copyright © 1989 American Management AsociationInternational. Reprinted by permission of American Management Association International, New York, N.Y.All rights reserved. Http://www.amanet. Org.
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1. Anticipatory Socialization - the first socialization stage--encompasses all of the learning that takes place prior to the newcomer’s first day on the job
2. Encounter the second socialization stage-- the newcomer learns the tasks associated with the job, clarifies roles, and establishes new relationships at work
3. Change & Acquisition the third socialization stage--the newcomer begins to master the demands of the job
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Socialization asCultural Communication
Core values are transmitted to new organization members through
the role models they interact with
the training they receive
the behavior they observe being rewarded and
punished
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Assessing Organizational Culture
Organizational Culture Inventory focuses on behaviors that help employees fit into the organization & meet coworker expectations
Kilman-Saxton Culture-Gap Survey focuses on the expectations of others in the organization
Triangulation - the use of multiple methods to measure organizational culture
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Situations That May Require Cultural Changes
Reasons That Change Is Difficult Assumptions are often unconscious Culture is deeply ingrained and behavioral norms
and rewards are well learned
Merger or acquisition Employment of people from different countries
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Hiring andsocializing
members whofit in with thenew culture
Removingmembers who
reject the new culture
Culture
Culturalcommunication
Changing behavior
Examiningjustificationsfor changed
behavior
2
1
5
3
4
Interventions forChanging
OrganizationalCulture Reprinted with permission from Vijay Sathe “How to Decipher & Change
Corporate Culture,” Copyright © 1985 Jossey-Bass Inc, Reprinted by permissionOf Jossey-Bass, Inc., a subsidiary of John Wiley & Sons, Inc..
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Cultural Modifications in the Current Business Environment
Support for a globalview of business
Reinforcement ofethical behavior
Empowerment of employees to excelin product and service quality
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Support for a globalview of business
Create a clear and simple mission statement Create systems that ensure effective information
flow Create “matrix minds” among managers Develop global career paths Use cultural differences as major assets Implement worldwide management education and
team development programs
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Clear communication of the boundaries of ethical conduct
Selection of employees who support the ethical culture
Reward of ethical behavior Conspicuous punishment of members who engage
in unethical behavior
Reinforcement of ethical behavior
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Empowerment unleashes employees’ creativity Empowerment requires eliminating traditional
hierarchical notions of power Involve employees in decision making Remove obstacles to their performance Communicate the value of product and service
quality
Empowerment of employees to excel in product and service quality