Organization Structure, Design & Change

BOB2B14-3 : Session 6

What is culture?

The set of shared values and norms that control organisational members interactions with each other and with people outside the organisation

The basic set of assumptions, beliefs or accepted meanings underlying the way things are done

Culture The way of life around here

Organizational Values?

Values (1) are concepts or beliefs, (2) pertain to desirable end-states or behaviours, (3) transcend situations, (4) guide selection or evaluation of behaviour and events, and (5) are ordered by relative importance

Values: general criteria, standards, or guiding principles that people use to determine which types of behaviors, events, situations, and outcomes are desirable or undesirable

Three levels of culture

Artifacts Observable features of a settingthings you can see, hear and feel when you enter

an organisation

e.g. Rites and ceremonies, stories and myths, symbols

architecture, language, manners of address, a published list of values, office space allocation, decorations, the way people address each other

Values Ideas, goals, values, aspirations, deeply held norms

Ideologies, traditions

Rationalizations

Assumptionstaken for granted factors that shape behavior

The Toyota WayKaizen continuous improvementGenchi Genbutsu Go to the sourceChallengeTeamworkRespect

Example (3 levels of culture)

Digital Equipment Corp. (Manufacturer of mini-computers)

Artifacts

Open office architecture

Informality of dress and manners

Very dynamic environment of rapid pace

High rate of interaction reflecting enthusiasm, intensity, energy, and impatience

Espoused Beliefs and Values

He who proposes, does

Do the right thing

Do not do things without getting a buy-in from others who had to implement the decision

Basic Assumptions

The individual is ultimately the source of ideas

Individuals are capable of taking responsibility and doing the right thing

No one individual is smart enough to evaluate his/her own ideas (valued debate)

Central assumption: basic work of the company is technological innovation and should be fun

Socialization: Phases

Socialization is the process by which an individual acquires the social knowledge and skills necessary to assume an organisational role

Phases of socialization

Socialization tactics

Careful selection of entry-level candidates

Humility-inducing experiences that cause newcomers to question prior behavior, beliefs, and values

In-the-trenches training that leads to mastery of one of the business's core disciplines

Meticulous attention given to rewards and control systems

Careful adherence to the firm's core values

Reinforcing folklore

Consistent role models

Symbols

Hofstedes cultural dimensions

Power Distance (PDI)- Power distance dimension expresses the degree to which the less powerful members of a society accept and expect that power is distributed unequally

Individualism versus collectivism (IDV) -Individualism can be defined as a preference for a loosely-knit social framework in which individuals are expected to take care of only themselves and their immediate families

Masculinity versus femininity (MAS) - The masculinity side of this dimension represents a preference in society for achievement, heroism, assertiveness and material rewards for success

Uncertainty avoidance (UAI) - The uncertainty avoidance dimension expresses the degree to which the members of a society feel uncomfortable with uncertainty and ambiguity

Long-Term Orientation (LTO) - People in these societies are willing to delay short-term material or social success or even shot-term emotional gratification in order to prepare for the future.

Indulgence versus Restraint (IND) - Indulgence stands for a society that allows relatively free gratification of basic and natural human drives related to enjoying life and having fun. Restraint stands for a society that suppresses gratification of needs and regulates it by means of strict social norms.

Difference between Japan and USA

Difference between India and USA

http://geert-hofstede.com/countries.html

Managing Organizational Culture

What leaders pay attention to, measure, and control on a regular basis

How leaders react to critical incidents and organizational crises

How leaders allocate scarce resources

Deliberate role modeling, teaching, and coaching

How leaders allocate rewards and status

How leaders recruit, select, promote, and communicate

Managing Organizational Culture

Organizational design and structure (decision making, coordination, reporting, structure)

Systems and procedures (performance appraisal, information, control, decision support systems, etc.)

Rites and rituals

Design of physical space, facades, and buildings

Stories about important events and people (anecdotes, legends, myths, and parables)

Formal statements of organizational philosophy, creeds, and charters

An overview

Measuring culture

Diagnosing culture

Qualitative

Quantitative

Looking at organizational practices with a fresh set of eyes

Observe

What do offices look like?

How are people dressed?

Where do they eat lunch?

How would you characterize the people in the hall formal or informal? Laughing, or serious?

What kinds of pictures, signs, jokes are on walls? Listen for particular language

Qualitative

Notice the Features of Culture Ceremonies, Rites, and Rituals Stories and Myths Heroes Language Symbols

Ask questions, like:

What kind of stories run inside the organization

How do new people learn the ropes in the organization

What gets noticed (and rewarded)?

Are some people on the fast track, and if so, how did they get there?

What are some taboos -- things people should never do?

If a team accomplishes something great, what happens?

Issues with Qualitative Survey?

the dimensions of culture identified in one milieu through this approach are idiosyncratic and not necessarily relevant in another context

this approach is unable to produce culture information coherently linkable to major outcomes such as organizational performance

Organizational Culture Profile (OCP) - O'Reilly, Chatman, & Caldwell (1991); Cable & Judge (1997)

Competing Values Framework (CVF) - Quinn and Rohrbaugh, 1983

Organizational Culture Inventory (OCI) - Cooke and Lafferty, 1989

Competing Values Framework

Example: OCAI Cultural Inventory

Functions of organisational culture

A glue that holds the organization together

Provides members with a sense of identity, generates collective commitment, to something larger than self-interest, and helps people make sense of what occurs in the organization and the environment

Provides a sense of direction mission, vision and core values statements

Facilitates mutual adjustment in an organization

Shapes the image that public, customers, employees, shareholders and other stakeholders have of the organisation

Influences organisational performance positive culture/negative culture

Culture as control

Cultures can promote both ethical and unethical behaviour