management principles and statistics (252 be)

MANAGEMENT PRINCIPLES AND STATISTICS (252 BE)

Sr Tan Liat Choon

Email: [email protected]

Mobile: 016-4975551

Organisational Culture, Value and Ethics and Social Responsibility

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1.Understand the role of organizational culture

2.Understand the role of organizational culture values

3.Understand the role of organizational Ethics

4.Understand the role of organizational socialization

L E

A R N

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B J

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OrganisationalCulture

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THE BASIC FUNCTIONS OF ORGANIZATIONAL CULTURE

OrganizationalCulture/basic functions

Provides asense of

identity formembers

Enhancescommitment

to the organization’s

mission

Clairifiesand

reinforcesstandardsof behavior 4

CORE ORGANIZATIONAL VALUES REFLECTED IN CULTURE

•Sensitivity to needs of customers

and employees

•Freedom to initiate new ideas

•Willingness to tolerate taking risks

•Openness to communication options5

ORGANIZATIONAL CULTURE

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CREATING A CUSTOMER-RESPONSIVE CULTURE

• Key Variables Shaping Customer-Responsive Cultures1. The types of employees hired by the organization.2. Low formalization: the freedom to meet customer

service requirements.3. Empowering employees with decision-making

discretion to please the customer.4. Good listening skills to understand customer

messages.5. Role clarity that allows service employees to act as

“boundary spanners.”6. Employees who engage in organizational citizenship

behaviors.7

WHAT IS ORGANIZATIONAL CULTURE?

Characteristics:1. Innovation and risk

taking2. Attention to detail3. Outcome orientation4. People orientation5. Team orientation6. Aggressiveness7. Stability

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INSTITUTIONALIZATION: A FORERUNNER OF CULTURE

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10


• Culture Versus Formalization– A strong culture increases behavioral consistency

and can act as a substitute for formalization.

• Organizational Culture Versus National Culture– National culture has a greater impact on

employees than does their organization’s culture.– Nationals selected to work for foreign companies

may be atypical of the local/native population.

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WHAT DO CULTURES DO?

Culture’s Functions:

1.Defines the boundary between one organization and others.

2.Conveys a sense of identity for its members.

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

4.Enhances the stability of the social system.12

WHAT DO CULTURES DO?

Culture as a Liability:

1.Barrier to change

2.Barrier to diversity

3.Barrier to acquisitions and mergers

13


Managerial Actions:

• Select new employees with personality and attitudes consistent with high service orientation.

• Train and socialize current employees to be more customer focused.

• Change organizational structure to give employees more control.

• Empower employees to make decision about their jobs.

14


Managerial Actions (cont’d) :

• Lead by conveying a customer-focused vision and demonstrating commitment to customers.

• Conduct performance appraisals based on customer-focused employee behaviors.

• Provide ongoing recognition for employees who make special efforts to please customers. 15

KEEPING CULTURE ALIVE

• Selection– Concerned with how well the candidates will fit into

the organization.– Provides information to candidates about the

organization.• Top Management

– Senior executives help establish behavioral norms that are adopted by the organization.

• Socialization– The process that helps new employees adapt to the

organization’s culture.

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HOW ORGANIZATION CULTURES FORM

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HOW EMPLOYEES LEARN CULTURE

• Stories• Rituals• Material Symbols• Language

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SPIRITUALITY AND ORGANIZATIONAL CULTURE

Characteristics:• Strong sense of

purpose• Focus on individual

development• Trust and openness• Employee

empowerment• Toleration of

employee expression

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ORGANIZATIONAL CULTURE DEFINED

The basic pattern of shared values and assumptions governing the way employees within an organization think about and act on problems and opportunities.

ORGANIZATIONAL CULTURE PROFILE

Org Culture Dimensions Dimension Characteristics

Innovation Experimenting, opportunity seeking, risk taking, few rules, low cautiousness

Stability Predictability, security, rule-oriented

Respect for people Fairness, tolerance

Outcome orientation Action oriented, high expectations, results oriented

Attention to detail Precise, analytic

Team orientation Collaboration, people-oriented

Aggressiveness Competitive, low emphasis on social responsibility

Source: O’Reilly et al (1991)

ORGANIZATIONAL SUBCULTURES

• Dominant culture -- most widely shared values and assumptions

• Subcultures– Located throughout the organization– Can enhance or oppose (countercultures) firm’s

dominant culture

• Two functions of countercultures:– provide surveillance and critique, ethics– source of emerging values

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ARTIFACTS IN ORGANIZATIONAL CULTURE

• Observable symbols and signs of culture

• Physical structures, ceremonies, language, stories

• Maintain and transmit organization’s culture

• Not easy to decipher artifacts - need many of them

ARTIFACTS: ORGANIZATIONAL LANGUAGE

• Words used to address people, describe customers, etc.

• Leaders use phrases and special vocabulary as cultural symbols

• Language also found in subcultures

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ORGANIZATIONAL CULTURE STRENGTH

How widely and deeply employees hold the company’s dominant values and assumptions

Strong cultures exist when:– most employees understand/embrace the

dominant values– values and assumptions are institutionalized

through well-established artifacts– culture is long lasting -- often traced back to

founder25

FUNCTIONS OF STRONG CORPORATE CULTURES

Functions ofStrong Cultures

• Control system• Social glue• Sense-making

OrganizationalOutcomes

• Org performance• Employee well-being

Culture strength advantages depend on:

• Environment fit• Not cult-like• Adaptive culture

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CONTINGENCIES OF ORGANISATIONAL CULTURE &

PERFORMANCE• Effect of organizational culture strength on

organizational performance is moderate

• Need to consider contingencies:1. Ensure culture-environment fit

2. Avoid strength to level of corporate cult• Cults restrict mental models, suppress subcultures

3. Create an adaptive culture• External focus, process focus, ownership, proactive

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MERGING CULTURES: BICULTURAL AUDIT

• Part of due diligence in merger

• Minimizes risk of cultural collision by diagnosing companies before merger

• Three steps in bicultural audit:1. Examine artifacts2. Analyze data for cultural conflict/compatibility3. Identify strategies and action plans to bridge

cultures

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MERGING ORGANIZATIONAL CULTURES

Assimilation

Deculturation

Acquired company embraces acquiring firm’s cultural values

Acquiring firm imposes its culture on unwilling acquired firm

Integration Cultures combined into a new composite culture

Separation Merging companies remain separate with their own culture

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CHANGING/STRENGTHENING ORGANIZATIONAL CULTURE

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1. Actions of Founders/Leaders– Org culture sometimes reflects the founder’s

personality

– Transformational Leaders can reshape culture --organizational change practices

2. Aligning Artifacts– Artifacts keep culture in place

– e.g., building structure, communicating stories, transferring culture carriers

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3. Introducing Culturally Consistent Rewards– Rewards are powerful artifacts – reinforce

culturally-consistent behavior

4. Attracting, Selecting, Socializing Employees– Attraction-selection-attrition theory

– Socialization practices32

ATTRACTION-SELECTION-ATTRITION THEORY

Organizations become more homogeneous (stronger culture) through:

– Attraction -- applicants self-select and weed out companies based on compatible values

– Selection -- Applicants selected based on values congruent with organization’s culture

– Attrition -- Employee quite or are forced out when their values oppose company values

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ORGANIZATIONAL CULTURE DEFINED

Basic pattern of shared assumptions, values, and beliefs considered to be the correct way of thinking about and acting on problems and opportunities facing the organization.

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Physical StructuresRituals/ Ceremonies

StoriesLanguage

Beliefs

Values

Assumptions

Artifacts ofOrganizationalCulture

OrganizationalCulture

ELEMENTS OF ORGANIZATIONAL CULTURE

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ORGANIZATIONAL SUBCULTURES

• Located throughout the organization

• Support or oppose (countercultures) firm’s dominant culture

• Two functions of countercultures:– provide surveillance and evaluation

– source of emerging values

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ARTIFACTS OF ORGANIZATIONAL CULTURE

• Organizational stories– social prescriptions and role models

• Rituals and ceremonies– programmed routines and planned activities

• Organizational language– Defining words, metaphors

• Physical structures and space– Building structure, office design

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ORGANIZATIONAL CULTURE AND PERFORMANCE

Organisational cultures may improve corporate performance through:

•Social control

•Social glue

•Sense-making

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PROBLEMS WITH STRONG CULTURES

• Strong cultures may be a problem when:– Culture content is incompatible with the

organization’s environment.

– Strong cultures focus attention on one mental model.

– Strong cultures suppress dissenting values from subcultures.

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BICULTURAL AUDIT

• Part of “due diligence” in merger

• Minimizes risk of cultural collision by diagnosing companies before merger

• Three steps in bicultural audit:1.Examine artifacts identifying cultural differences

between merging companies

2.Analyze audit data -- determine where cultural conflict and compatibility exist

3.Identify ways to bridge the two organizations’ cultures 40

MERGING ORGANIZATIONAL CULTURES

• Assimilation Strategy

• Deculturation Strategy

• Integration Strategy

• Separation Strategy

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StrengtheningOrganizational

Culture

Foundersand leaders

Culturallyconsistentrewards

Stableworkforce

Selectionand

socialization

Managing theculturalnetwork

STRENGTHENING ORGANIZATIONAL CULTURE

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COMMUNICATION AND CULTURE

• Shared meanings are negotiated by communication

• Culture is enacted and made visible through communication

• Communication and cultural change–Top Management

–Socialisation43

ORGANIZATIONAL CULTURE

• Organizational 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.”

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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

• LeadershipOrganizational Outcomes

• Effectiveness

• Innovation & stress

Collective Attitudes & Behavior

• Work attitudes

• Job satisfaction

• Motivation

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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

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FOUR FUNCTIONS OF ORGANIZATIONAL CULTURE

Organizationalculture

Sense-makingdevice

Organizationalidentity

Social systemstability

Collectivecommitment

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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 orientedAchievement

Organizational CharacteristicsNormative Beliefs

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


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 workingPerfectionistic

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


EVIDENCE FROM ORGANIZATIONAL CULTURE

RESEARCH1) Organizational culture was significantly correlated with

employee attitudes and behavior2) 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 5) Strong cultures have a stronger impact on employee

behavior than do weaker cultures51

SPECIFIC TYPES OF CULTURES

• Control culture – values role of senior executives to lead the organization

• Performance culture – values individual and organizational performance

• Relationship culture – values nurturing and well-being

• Responsiveness culture – values ability to keep in tune with external environment

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CULTURE AND FINANCIAL PERFORMANCE

• Strength perspective – strong culture creates goal alignment, motivation, needed structure & controls

• Fit perspective – culture must align with business or strategic context

• Adaptive perspective – good cultures help firms adapt to environmental changes 53

Organizational Cultures and Diversity

The specific objectives of this chapter are:

1. EXAMINE some of the major ethical issues and problems confronting MNCs in selected countries.

2. DISCUSS some of the pressures on and action being taken by selected industrialized countries and companies to be more socially responsive to world problems.

ORGANIZATIONAL CULTURES AND DIVERSITY

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THE NATURE OF ORGANIZATIONAL CULTURE

– Shared values and beliefs that enable members to understand their roles and the norms of the organization, including

• Observed behavioral regularities, as typified by common language, terminology, and rituals.

• Norms, as reflected by things such as the amount of work to be done and the degree of cooperation between management and employees.

• Dominant values that the organization advocates and expects participants to share, such as high product and service quality, low absenteeism, and high efficiency.

Organizational culture

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THE NATURE OF ORGANIZATIONAL CULTURE

• A philosophy that is set forth in the MNC’s beliefs regarding how employees and customers should be treated.

• Rules that dictate the do’s and don’ts of employee behavior relating to areas such as productivity, customer relations, and intergroup cooperation.

• Organizational climate, or the overall atmosphere of the enterprise as reflected by the way that participants interact with each other, conduct themselves with customers, and feel about the way they are treated by higher-level management

Organizational culture Shared values and beliefs that enable members to

understand their roles and the norms of the organization, including

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INTERACTION BETWEEN NATIONAL AND ORGANIZATIONAL CULTURES

• National cultural values of employees may have a significant impact on their organizational performance

• Cultural values employees bring to the workplace with them are not easily changed by the organization

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TYPES OF MULTICULTURALISM

• Domestic multiculturalism– Multicultural and diverse workforce that operates

in the MNC’s home country

• Group multiculturalism– Homogeneous groups

– Token groups

– Bicultural groups

– Multicultural groups58

OVERCOMING CROSS-CULTURAL COMMUNICATION BARRIERS

• Show respect for all workers.• Easy language, slow and clear talk.• Be alert to differences in customs and

behavior.• Watch for differences in nonverbal

communication.• Overlook style, accent, grammar,

personal appearance.59

OVERCOMING CROSS-CULTURAL COMMUNICATION BARRIERS

• Listen for understanding, not agreement.

• Be attentive to individual differences in appearance. (Do not confuse people because they belong to same race or ethnic group.)

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CROSS-CULTURAL AND ETHICAL CONCERNS

• Cross-Cultural Concerns–Linear and open conflict assumptions

different from values in some cultures

• Ethical Concerns–Privacy rights of individuals

–Management power

–Individuals’ self-esteem61

FIVE DIMENSIONS OF CULTURE

• Power distance• Uncertainty avoidance• Individualism• Masculinity• Confucian work dynamism

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CULTURAL DIFFERENCES THAT CAN AFFECT OB

• Relationship & rules• Individual or collective preferences• Type of societies - neutral or emotional

societies• Diffuse or specific culture• Achievement-based societies• Time• Attitude to the environment

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OrganisationalValue

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Courtesy of The Warehouse

VALUES DEFINED

• Stable, long-lasting beliefs about what is important

• Define right or wrong, good or bad

• Include cross-cultural, ethical and organisational culture values

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VALUES

• A value refers to the importance aperson attaches to something thatserves as a guide to action.

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FORMS OF WORKPLACE VALUES

Terminal versus instrumental

•Terminal values—desired states worthstriving for

• Instrumental values—desirable modes of behaviour that help us reach the objectives of terminal values

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FORMS OF WORKPLACE VALUES

• Espoused versus enacted

–espoused are values we want others to believe we hold

–enacted (endorse) are values-in-use; what we actually practice

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IMPORTANCE OF VALUES AT WORK

• Globalisation– increasing awareness of, and sensitivity to,

different values across cultures

• Replacing direct supervision– potentially aligns employees’ decisions and

actions with corporate goals

• Demand for ethical practices– increasing pressure to engage in ethical practices

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ALIGNING PERSONAL WITH ORGANISATIONAL VALUES

Problems when employee’s personal values are misaligned with company’s values• – decisions conflict with organisational

goals

• – employees experience higher levels of stress and turnover

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How to minimise misalignment:

– select applicants with similar values

– provide realistic recruitment - realistic job previews–

• change corporate values, where appropriate 73


Aligning organisational with societal values

• Need to minimise conflict with values of society

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CULTURAL DIFFERENCES IN VALUES

• Individualism–collectivism

• Power distance

• Uncertainty avoidance

• Achievement–nurturing orientation

• Long-term or short-term orientation

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Collectivists tend to

– identify themselves by group membership

– give priority to group goals

– put more emphasis on harmonious relationships

– have more socially-based emotions (indebtedness)

Japan

NZ

Australia

Collectivism

Individualism

Indonesia

INDIVIDUALISM−COLLECTIVISM

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The degree to which people accept an unequal distribution of power in society

Japan

N.Z.

Australia

Hong Kong

High power distance

Malaysia

Low power distance

POWER DISTANCE

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High UA

Low UA

S Africa

China

Singapore

The degree to which people tolerate ambiguity / uncertainty (low UA) or feel threatened by ambiguity and uncertainty (high UA)

UNCERTAINTY AVOIDANCE

Australia

78

Japan

S. Korea

Achievement

Nurturing

N.Z.

The degree to which people value assertiveness (confident / self assured), competitiveness and materialism (achievement) versus relationships and well-being of others (nurturing)

ACHIEVEMENT−NURTURING

Australia

79

Japan

Indonesia

Long-term orientation

Short-term orientation

China

The degree to which people value thrift, savings and persistence (long-term) versus past and present issues (short-term)

LONG/SHORT-TERM ORIENTATION

Australia

80

CULTURAL DIFFERENCES IN VALUES

• Short-term—emphasise the past and present

• such as respect for tradition and fulfilling social obligations

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VALUESValues

Basic convictions that a specific mode of conduct or end-state of existence is personally or socially preferable to an opposite or converse mode of conduct or end-state of existence.

Value System

A hierarchy based on a ranking of an individual’s values in terms of their intensity.

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IMPORTANCE OF VALUES

• Provide understanding of the attitudes, motivation, and behaviors of individuals and cultures.

• Influence our perception of the world around us.

• Represent interpretations of “right” and “wrong.”

• Imply that some behaviors or outcomes are preferred over others. 83

TYPES OF VALUES – ROKEACH VALUE SURVEY

Terminal Values

Desirable end-states of existence; the goals that a person would like to achieve during his or her lifetime.

Instrumental Values

Preferable modes of behavior or means of achieving one’s terminal values.

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Values in the

RokeachSurvey

Source: M. Rokeach, The Nature of Human Values (New York: The Free Press, 1973).

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Source: M. Rokeach, The Nature of Human Values (New York: The Free Press, 1973).

Values in the

RokeachSurvey

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Organisational Ethics

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THREE ETHICAL PRINCIPLES

• Utilitarianism– greatest good for greatest number

• Individual rights– fundamental entitlements in society

• Distributive justice– inequality with equal access to favoured

positions

– inequality must benefit the least well off89

INFLUENCES ON ETHICAL CONDUCT

• Moral intensity– degree to which an issue demands ethical

principles

• Ethical sensitivity– ability to recognise the presence, and determine

the relative importance, of an ethical issue

• Situational influences– competitive pressures and other conditions affect

ethical behaviour90

ETHICS

• Ethics is the moral choices a personmakes, and what he or she shoulddo. Ethics can also be regarded asthe vehicle that converts values intoaction.

91

CREATING AN ETHICAL ORGANIZATIONAL CULTURE

• Characteristics of Organizations that Develop High Ethical Standards– High tolerance for risk

– Low to moderate in aggressiveness

– Focus 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.

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ETHICAL DECISION MAKING CRITERIA

A standard way of understanding ethicaldecision-making is to understand thephilosophical basis for making these decisions.

Focus on consequences.According to this criterion, if nobody getshurt, the decision is ethical. Focusing onconsequences is often referred to asutilitarian.

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ETHICAL DECISION MAKING

Focus on the rights of individuals.

The theories underlying this approach arereferred to as deontological from the Greekwork deon, or duty.

A fundamental idea of deontology is that equal respect must be given all individuals.

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ETHICAL DECISION MAKING

Focus on integrity (virtue ethics).

If the person in question has good character,and genuine motivation and intentions, he orshe is behaving ethically.

The decision maker’s environment, orcommunity, helps define what integritymeans.

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ETHICAL DECISION-MAKINGGUIDE

1. Gather the facts.2. Define the ethical

issues (e.g. lying, job discrimination).

3. Identify the affected parties.

4. Identify the consequences.

5. Identify the obligations.

6. Consider your character and integrity.

7. Develop creative potential actions.

8. Check your intuition.

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OrganisationalSocial

Responsibility

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STAGES IN THE SOCIALIZATION PROCESS

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A SOCIALIZATION MODEL

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ENTRY SOCIALIZATION OPTIONS

• Formal versus Informal• Individual versus Collective• Fixed versus Variable• Serial versus Random• Investiture versus Divestiture

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ENHANCING ETHICAL AND SOCIALLY RESPONSIBLE BEHAVIOR

• Leadership by example

• Written codes of ethical conduct

• Formal mechanisms for ethics problems

• Accepting whistle blowers

• Training in ethics and social responsibility

• Awareness of cross-cultural influences

101

ORGANIZATIONAL SOCIALIZATION DEFINED

The process by which individuals learn the values, expected behaviors, and social knowledge necessary to assume their roles in the organization.

SOCIALIZATION: LEARNING & ADJUSTMENT

Learning Process– Newcomers make sense of the organization’s

physical, social, and strategic/cultural dynamics

Adjustment Process– Newcomers need to adapt to their new work

environment• New work roles

• New team norms

• New corporate cultural values

103

STAGES OF SOCIALIZATION

Role Management

• Insider

• Changing roles and behavior

• Resolving conflicts

EncounterStage

• Newcomer

• Testingexpectations

Pre-EmploymentStage

• Outsider

• Gathering information

• Forming psychological contract

104

IMPROVING ORGANIZATIONAL SOCIALIZATION

• Realistic job preview– A balance of positive and negative

information about the job and work context

• Socialization agents– Supervisors– technical information,

performance feedback, job duties

– Coworkers – ideal when accessible, role models, tolerant, and supportive

105

ORGANIZATIONAL SOCIALIZATION

PhasesPerceptual 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

106


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


107


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


108


Phases1) Anticipatory

socialization2) Encounter3) 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

109

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


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


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

SOCIAL LEARNING THEORY

• Learning by observing others, thenmodelling the behaviours that lead to favourable outcomes and avoiding behaviours that lead to punishing consequences

113


1. Behavioural modelling

a. observe model’s behaviour

b. remember important actions

c. try to reproduce actions through practice

114


Behavioural modelling• Model should be respected and reinforced• Good for learning tacit / IMPLIED knowledge

and skills• Enhances self-efficacy (is an individual's

estimate or personal judgment of his or her own ability to succeed in reaching a specific goal)

– belief that you have the ability, motivation and resources to complete a task successfully

115


2. Learning behaviour consequences

• We learn to anticipate the consequences of future actions through logic / judgement and by observing the experiences of others

116


3. Self-reinforcement• Employee controls a reinforcer (e.g.

having a break), but doesn’t ‘take’ the reinforcer until a self-set goal is done

• Increasingly important as employees manage themselves (by monitoring & observing your own behavior)

• people are also able to change their behavior by reinforcing themselves

117

Study Question 1: Why is globalization significant for organizational behavior?Culture.

– The learned, shared way of doing things in a particular society.

– The “software of the mind.”– Helps define boundaries between different groups

and affects how their members relate to one another.

– Cultural intelligence is the ability to identify, understand, and act with sensitivity and effectiveness in cross-cultural situations.

119

Study Question 2: What is culture and how can we understand cultural differences?

Language.

– Perhaps the most visible aspect of culture.

– Whorfian hypothesis — considers language as a major determinant of thinking.

– Low-context cultures — the message is conveyed by the words used.

– High-context cultures — words convey only a limited part of the message.

120

Time orientation.– Polychronic cultures.

• Circular view of time.

• No pressure for immediate action or performance.

• Emphasis on the present.

– Monochronic cultures.• Linear view of time.

• Create pressure for action and performance.

• Long-range goals and planning are important.

121

Use of space.–Proxemics.

• The study of how people use space to communicate.

• Reveals important cultural differences.

–Concept of personal space varies across cultures.

–Space is arranged differently in different cultures.

122

Religion.

–A major element of culture.

–Can be a very visible aspect of

culture.

–Influences codes of ethics and

moral behavior.

–Influences conduct of economic

matters. 123

Values and national culture.–Cultures vary in underlying

patterns of values and attitudes.–Hofstede’s five dimensions of

national culture:• Power distance.• Uncertainty avoidance.• Individualism-collectivism.• Masculinity-femininity.• Long-term/short-term orientation.

124

Power distance.–The willingness of a culture to

accept status and power differences among members.

–Respect for hierarchy and rank in organizations.

–Example of a high power distance culture — Indonesia.

–Example of a low power distance culture — Sweden.

125

Uncertainty avoidance.–The cultural tendency toward

discomfort with risk and ambiguity.–Preference for structured versus

unstructured organizational situations.

–Example of a high uncertainty avoidance culture — France.

–Example of a low uncertainty avoidance culture — Hong Kong.

126

Individualism-collectivism.– The cultural tendency to emphasize

individual or group interests.

– Preferences for working individually or in groups.

– Example of an individualistic culture —United States.

– Example of a collectivist culture —Mexico.

127

Masculinity-femininity.– The tendency of a culture to value

stereotypical masculine or feminine traits.

– Emphasizes competition/assertiveness versus interpersonal sensitivity/relationships.

– Example of a masculine culture —Japan.

– Example of a feminine culture —Thailand. 128

Long-term/short-term orientation.– The tendency of a culture to emphasize

future-oriented values versus present-oriented values.

– Adoption of long-term or short-term performance horizons.

– Example of a long-term orientation culture — South Korea.

– Example of a short-term orientation culture — United States.

129

Understanding cultural differences helps in dealing with parochialism and ethnocentrism.–Parochialism — assuming that the

ways of one’s own culture are the only ways of doing things.

–Ethnocentrism — assuming that the ways of one’s culture are the best ways of doing things.

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Cultural differences in handling relationships with other people.– Universalism versus particularism.

• Relative emphasis on rules and consistency, or on relationships and flexibility.

– Individualism versus collectivism.• Relative emphasis on individual freedom

and responsibility, or on group interests and consensus.

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Cultural differences in handling relationships with other people– Neutral versus affective.

• Relative emphasis on objectivity and detachment, or on emotion and expressed feelings.

– Specific versus diffuse.• Relative emphasis on focused and narrow

involvement, or on involvement with the whole person.

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Cultural differences in handling relationships with other people– Achievement versus prescription.

• Relative emphasis on performance-based and earned status, or on ascribed status.

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Cultural differences in attitudes

toward time.

–Sequential view of time.

• Time is a passing series of events.

–Synchronic view of time.

• Time consists of an interrelated past,

present, and future.

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Cultural differences in attitudes toward the environment.–Inner-directed cultures.

• Members view themselves as separate from nature and believe they can control it.

–Outer-directed cultures.• Members view themselves as part of

nature and believe they must go along with it. 135

Study Question 3: How does cultural diversity affect people at work?Multinational corporation (MNC).

– A business firm that has extensive international operations in more than one foreign country.

– Have a total world view without allegiance to any one national home.

– Have enormous economic power and impact.

– Bring benefits and controversies to host countries. 136

Multicultural workforces and expatriates.– Styles of leadership, motivation, decision

making, planning, organizing, and controlling vary from country to country.

– Expatriates.• People who live and work abroad for

extended periods of time.• Can be very costly for employers.• Progressive employers take supportive

measures to maximize potential for expatriate success. 137

Ethical behavior across cultures.– Ethical challenges result from:

• Cultural diversity.

• Variations in governments and legal systems.

– Prominent current issues.• Corruption and bribery.

• Poor working conditions.

• Child and prison labor.

• Business support of repressive governments.

• Sweatshops.

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Advice regarding cultural relativism and ethical absolutism.

– Multinational businesses should adopt core or threshold values that respect and protect fundamental human rights.

– Beyond the threshold, businesses should adapt and tailor actions to respect the traditions, foundations, and needs of different cultures.

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THANK YOU

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management principles and statistics (252 be)

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