management - culture lecture notes

8/10/2019 Management - Culture Lecture Notes

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ORGANIZATIONAL CULTURE


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"...We believe that organizations

will ultimately get only as far as

their organizational cultures

take them."


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Dfinition

The basic pattern of shared assumptions,values, and beliefs considered to be the correctway of thinking about and acting on problems

and opportunities facing the organization.

The Philosophy that guides an Organizationspolicy towards employees & customers.


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ORGANIZATIONAL CULTURE

The culture of an organization represents certain predefined

policies which guide the employees and give them a sense ofdirection at the workplace.

The culture decides the way employees interact at their

workplace.


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IMPORTANCE OF ORGANIZATIONAL CULTURE

The Culture decides the way employeesinteract at their workplace.

The organization culture brings all the

employees on a common platform.

It is the culture of the organization whichextracts the best out of each team member


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IMPORTANCE(contd)

The culture of the workplace also goes a long way in promoting

healthy competition at the workplace.

The culture of an organization represents certain predefinedpolicies which guide the employees and give them a sense ofdirection at the workplace


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Organizational Culture

Organizational Culture A common perception held by the organizations members; a

system of shared meaning

Seven primary characteristics1. Innovation and risk taking

2. Attention to detail3. Outcome orientation4. People orientation5. Team orientation6. Aggressiveness7. Stability

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for example : When you shape a round finger, it

means zero in Indonesia but in Brazil that isrude.


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OVERVIEW OF TATA AND FORD

MOTORS

Jamsetji Nusserwanji Tata Henry Ford


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Do Organizations Have Uniform

Cultures?Culture is a descriptive term: it may act as a substitute for

formalization Dominant Culture

Expresses the core values that are shared by a majority ofthe organizations members

Subcultures Minicultures within an organization, typically defined by

department designations and geographical separation

Core Values The primary or dominant values that are accepted

throughout the organization Strong Culture

A culture in which the core values are intensely held andwidely shared

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What Do Cultures Do? Cultures Functions

1. Defines the boundary between oneorganization and others

2. Conveys a sense of identity for its members

3. Facilitates the generation of commitment tosomething larger than self-interest

4. Enhances the stability of the social system

5. Serves as a sense-making and controlmechanism for fitting employees in theorganization

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Culture as a Liability/Dysfunction

Institutionalization A company can become institutionalized where it is valued

for itself and not for the goods and services it provides

Barrier to change

Occurs when cultures values are not aligned with thevalues necessary for rapid change

Barrier to diversity Strong cultures put considerable pressure on employees to

conform, which may lead to institutionalized bias

Barrier to acquisitions and mergers Incompatible cultures can destroy an otherwise successful

merger

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Summary: How Organizational

Cultures Form

Organizational cultures are derived from the

founder

They are sustained through the selection

process, managerial action, and socialization

methods

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How Culture Begins (Building)

Stems from the actions of the founders: Founders hire and keep only employees who think

and feel the same way they do.

Founders instruct and socialize these employeesto their way of thinking and feeling.

The founders own behavior acts as a role modelthat encourages employees to identify with them

and thereby internalize their beliefs, values, andassumptions.

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Keeping a Culture Alive (Maintaining)

Three forces play a particularly important role insustaining a culture:

Selection Identify and select individuals who are high performers

and whose values are consistent with at least a goodportion of the organizations values

Top Management Through words and behaviors, senior executives establish

norms that filter through the organization

Socialization The process that helps new employees adapt to the

prevailing organizational culture

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How Employees Learn Culture

Stories Anchor the present into the past and provide explanations and

legitimacy for current practices

Rituals

Repetitive sequences of activities that express and reinforce thekey values of the organization

Material Symbols Acceptable attire, office size, lavishness of the office furnishings,

and executive perks that convey to employees who areimportant in the organization

Language Jargon and special ways of expressing ones self to indicate

membership in the organization

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Creating an Ethical Organizational

Culture

Characteristics of Organizations that Develop HighEthical Standards

Has high tolerance for risk

Low to moderate in aggressiveness

Focused on means as well as outcomes

Managerial Practices Promoting an Ethical Culture

Being a visible role model

Communicating ethical expectations

Providing ethical training

Visibly rewarding ethical acts and punishing unethical ones

Providing protective mechanisms

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