Date post: | 20-Jan-2015 |
Category: |
Business |
Upload: | kapil-chhabra |
View: | 180 times |
Download: | 0 times |
Organizational Culture
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
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
OrganizationalCulture Levels
Visible, often not decipherable
Greater levelof awareness
Taken for granted Invisible Preconscious
Reprinted with permission from Edgar H. Schein, Organizational Culture and Leadership: A Dynamic View. Copyright © 1985 Jossey-Bass Inc, a subsidiary of John Wiley & Sons, Inc.
Artifacts • Personal enactment• Ceremonies and rites• Stories• Ritual• Symbols
Values• Testable in the physical environment• Testable only by social consensus
Basic Assumptions • Relationship to environment• Nature of reality, time, and space• Nature of human nature• Nature of human activity• Nature of human relationships
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
AdaptivePerspective
Theories about the relationship between organizational culture and performance
Strong Culture
Perspective
FitPerspective
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
Argument that a culture is good only if it fits the industry’s or the firm’s strategy.
Organizational characteristics that may affect culture
Customer requirements Competitive environment Societal expectations
FitPerspective
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 care
about 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
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
Organizational Socialization
The process by which newcomers are transformed from outsiders to participating, effective members of the organization
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 remainFrom “An Ethical Weather Repart: Assessing the Organization's Ethical Climate” by John B. Cullen, et
al. In Organizational Dynamics, Autumn 1989. Copyright © 1989 American Management AssociationInternational. Reprinted by permission of American Management Association International, New York, N.Y.All rights reserved. Http://www.amanet. Org.
Outcomes of Socialization
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 and Acquisition – the third socialization stage—the newcomer begins to master the demands of the job
1. Anticipatory Socialization – first socialization stage—encompasses all of the learning that takes place prior to the newcomer’s first day on the job
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
Assessing Organizational Culture
• Organizational Culture Inventory focuses on behaviors that help employees fit into the organization and 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
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
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..
Cultural Modifications in the Current Business
EnvironmentSupport for a globalview of business
Reinforcement ofethical behavior
Empowerment of employees to excelin product and service quality
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
• 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
• 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
Group Activity
• How would you go about changing the culture of a public sector bank that has been taken over by a private sector bank