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Copyright Atomic Dog Publishing, 2006 Chapter 16 Organizational Culture

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Copyright Atomic Dog Publishing, 2006 16-1 What Is Organizational Culture? Organizational culture: The set of values, guiding beliefs, norms, and ways of thinking that are shared by members of an organization and are taught to new members Organizational culture exist at two levels: Surface levelObservable, visible characteristics Underlying levelValues, assumptions, beliefs, and thought processes that are the true culture

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Copyright Atomic Dog Publishing, 2006 16-1a Interpreting CultureRites, Ceremonies, Stories, Language To identify and interpret culture, inferences based on artifacts are observed, but they are difficult to accurately decipher. Typical and important observable aspects of culture are: Rites and ceremonies Stories Language

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Copyright Atomic Dog Publishing, 2006 16-1a Interpreting CultureRites, Ceremonies, Stories, Language (cont.) Rites and ceremonies: Planned activities that make up a special event and are often conducted for the benefit of an audience -Professors Harrison Trice and Janice Beyer identify four types of rites: Rites of passage Rites of enhancement Rites of renewal Rites of integration Stories: Narratives based on true events Language: Slogan, metaphor, or specific saying used to convey special meaning to employees

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Copyright Atomic Dog Publishing, 2006 16-1b Types of Cultures Researcher Jeffrey Sonnenfeld concluded that four types of culture exist in organizations: Academy Fortress Clubs Baseball team Sonnenfeld's research showed that each of these cultures tends to attract different people; where some may fail under one, others may succeed.

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Copyright Atomic Dog Publishing, 2006 Figure 16-1 Four Types of Organizational Cultures

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Copyright Atomic Dog Publishing, 2006 16-1c Subcultures and Cultural Strength Subculture: Groups of individuals with a unique set of values, beliefs, and principles that operate within a larger organization Need to recognize the existence and motivation of subcultures to affect the overall organizational culture Subcultures provide an identity to their members Most important question is whether or not its values and norms are consistent with the mission of the organization Certain types of institutions can be particularly susceptible to breeding subcultures that sub-optimize an organization's effectiveness

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Copyright Atomic Dog Publishing, 2006 16-1c Subcultures and Cultural Strength (cont.) Cultural strength: Denotes the agreement among members of an organization about the importance of specific values A strong culture is associated with frequent use of ceremonies, symbols, stories, heroes, and slogans. It signals the value people should adopt to behave in a way consistent with company and employee needs. Subcultures develop that reflect the experiences and objectives that are shared by members of particular team or department.

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Copyright Atomic Dog Publishing, 2006 16-1d Altering Culture Managers follow several actions to alter the culture of their organization: Shaping culture -Symbolic manager defines and uses symbols to influence organizational values Creating culture Embodying a culture Integrating a culture Changing culture -Emulate an "ideal company" -Align existing culture with its external environment -Following seven important keys

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Copyright Atomic Dog Publishing, 2006 Figure 16-2 Creating a Culture

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Copyright Atomic Dog Publishing, 2006 16-1d Altering Culture (cont.) Cultural change: Changes in the values, attitudes, expectations, beliefs, abilities, and behavior of employees within an organization Obstacles to culture change are many, but most threatening is subversion that can completely thwart a culture change program.

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Copyright Atomic Dog Publishing, 2006 16-1e Ethical Values and Culture Ethical values are considered most important value in an organizations culture. They are becoming part of the formal policies and informal cultures. Ethical, socially responsible behavior is shaped by individuals personal ethics, culture of the organization, and organizational systems in place. Actions of peer managers and top managers, as well as the organizations culture, all contribute to the ethical context of the organization.

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Copyright Atomic Dog Publishing, 2006 Figure 16-3 Forces that Shape Managerial Ethics

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Copyright Atomic Dog Publishing, 2006 16-2 Strategic Vision and Mission Statements Strategic vision: A road map showing the route and rational an organization intends to take in developing its business Well-conceived visions are distinctive and specific to the organization and avoid generic, feel-good statements. Mission statement: Deals with an organizations present business and purpose Company value statements tend to contain from four to eight values that are strongly connected to the organizations strategy, vision, and operating practices. At times, wide gaps exist between organizations stated values and its actual conduct.

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Copyright Atomic Dog Publishing, 2006 16-3a Physical, Mental and Emotional Tensions Employees face high tensions as organizations face a host of situations in their external environments. Physical, mental, and emotional tensions of stress, fear, anxiety, and depression are typical. -Anxiety disorders: Anxiety that persists to the point that it interferes with ones life. Most common mental illness in the U.S. High levels of tension result in: -Low productivity -Increased absenteeism and turnover -Other physical and mental illnesses Carefully implemented cultural change programs can lower employee tension levels.

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Copyright Atomic Dog Publishing, 2006 16-3b The Plateaued Employee Employees perceive they have plateaued when they have reached their highest level within the organization or their career. Symptoms of plateauing are seen in work habits, with incomplete assignments or missed deadlines, and changes in personality, such as irritability. Types of plateauing: -Structural plateauing -Content plateauing -Life plateauing

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Copyright Atomic Dog Publishing, 2006 16-3b The Plateaued Employee (cont.) If plateauing is not addressed, it can become a dominant factor in the culture of the organization. -Can impact employees morale and productivity Managers must recognize the symptoms of plateauing and provide solutions. -Supervisors reassure employee about performances and growth prospects. -Employees can be offered job changes or be put into a self-managed team to expand new tasks and new people to work with.

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Copyright Atomic Dog Publishing, 2006 16-3c Employee Layoffs Organizational policies and programs that address employee layoff concerns fall into two areas: Layoff avoidance strategies: -No-layoff policy -Share-the-pain plan -Early retirement plans Assistance to employees in the event of layoff: -Providing of out-placement assistance services to employees when layoffs do occur Can substantially lessen their emotional and financial problems

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Copyright Atomic Dog Publishing, 2006 16-3d Chemical Dependency A growing number of employers use drug tests to screen applicants and employees for drug use. Two general categories of drug testing: Screening new applicants (pre-employment testing) -May be a requirement, unless limited by law Testing current employees (post-employment drug testing) -Current employees are usually tested through: 1.Random testing 2.Probable cause 3.After accidents

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Copyright Atomic Dog Publishing, 2006 16-4a Employee Empowerment Employee empowerment: Provides a way to integrate tasks and to allow employees to buy into the goals of the organization. Results in strengthening employee involvement Frederick Smith states that creating a successful culture begins with empowering employees. Empowerment is decentralized decision making as well as a corporate philosophy. -Flexible empowerment: Empowerment that provides employees with a great deal of latitude in decision making within broad guidelines.

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Copyright Atomic Dog Publishing, 2006 16-4b Family-Work Issues Flexible hours, family leave, limited travel, and relocation are prime issues for many employees. The need for a family-friendly workplace is a major challenge. Major programs in this area include: Flextime Parental leave Elder-care programs Child-care assistance

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Copyright Atomic Dog Publishing, 2006 16-4c Child-Care Programs The number of day-care centers is now growing as more women move into executive and managerial roles. Employers offer different levels of child-care assistance at varying costs: -On-site programs -Flexible benefits -Resource and referral centers -Consortium of employers -Public private partnership -Pretax assistance Not all employers offer at least one of the above programs because of costalthough the benefits outweigh the cost.

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Copyright Atomic Dog Publishing, 2006 16-4d Elder-Care Programs Elder Americans represent the fastest growing segment of the population. Employees who provide elder-care and remain at work experience work-related problems. Most elder-care programs are very similar to child-care programs: -Resource and referral services -Dependent-care pretax spending accounts -Financial support for off-site facilities Major differences are that virtually no on-site elderly care facilities provide the necessary counseling needed by the elderly caregivers.

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Copyright Atomic Dog Publishing, 2006 16-4e Wellness Programs Wellness program: An health-care effort to help employees stay healthy, reduce stress, and provide the early detection of serious health problems From management's perspective, employees are the greatest asset, and their state of health affects their contribution to the company. Employees indicate a great interest in wellness programs by their high degree of participation. Employees who participate are more likely to have lower health-care costs and generally are healthier.

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Copyright Atomic Dog Publishing, 2006 16-4e Wellness Programs (cont.) Most common wellness activities include: -Smoking cessation -Health-risk appraisals -Back care -Stress management -Exercise/physical fitness -Off-the-job accident prevention Small employer programs A number of effective wellness program activities can be established at a minimum cost, such as awareness brochures and pamphlets.

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Copyright Atomic Dog Publishing, 2006 16-4f Fun at Work Employees who are allowed or encouraged to have a little fun at work generally report higher job satisfaction, creativity, and productivity. Some of the direct benefits include: Increased camaraderie and teamwork Employees will more readily accept new ideas Reduction in sick days Reduced boredom Higher morale

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Copyright Atomic Dog Publishing, 2006 16-4f Fun at Work (cont.) Developing an environment that allows and encourages fun at work may depend on three elements: People's personal intentions Relaxed organizational culture Behavior of top management -Most critical