chapter 16 organizational culture. define organizational culture and explain its function explain...
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Chapter 16
Organizational Culture
Define organizational culture and explain its function
Explain how organizational culture evolves and is transmitted
Contrast the characteristics of strong and weak cultures
Explain the relationship between strong cultures and high performance
Objectives
Organizational Behavior: An Experiential Approach 8/EJoyce S. Osland, David A. Kolb, Irwin M. Rubin and Marlene E. Turner
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…Objectives
Describe the importance of organizational justice
Explain the impact of organizational culture in mergers
Describe how leaders can manage cultureIdentify the four stages in the
organizational life cycle
Organizational Behavior: An Experiential Approach 8/EJoyce S. Osland, David A. Kolb, Irwin M. Rubin and Marlene E. Turner
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Organizational Culture - Defined
Pattern of shared values and beliefs that produce certain norms of behavior
Organizational Behavior: An Experiential Approach 8/EJoyce S. Osland, David A. Kolb, Irwin M. Rubin and Marlene E. Turner
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Uncovering Levels of Culture
Visible organizational structures and processes
Strategies, goals, philosophies
Unconscious, taken-for-granted beliefs, perceptions, thoughts, and feelings
Artifacts
Espoused Values
Basic Underlying
Assumptions
Organizational Behavior: An Experiential Approach 8/EJoyce S. Osland, David A. Kolb, Irwin M. Rubin and Marlene E. Turner
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Types f Cultures
Dominant culture – manifests the values shared by a majority of the organization's members
Subculture – shares the dominant culture’s core values as well as other values that characterize their own department, geographical unit, etc.
Counterculture – its values are in opposition to those of the dominant culture
Organizational Behavior: An Experiential Approach 8/EJoyce S. Osland, David A. Kolb, Irwin M. Rubin and Marlene E. Turner
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Functions of Organizational Culture
Provide a sense of identityGenerate commitmentHelps make sense of occurrencesControl mechanism
Organizational Behavior: An Experiential Approach 8/EJoyce S. Osland, David A. Kolb, Irwin M. Rubin and Marlene E. Turner
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Sources of Culture
Beliefs, values and assumptions of founders, leaders
Learning experiences of group members
as their organization evolves
New beliefs, values, and assumptions brought in by new members and leaders
Organizational Behavior: An Experiential Approach 8/EJoyce S. Osland, David A. Kolb, Irwin M. Rubin and Marlene E. Turner
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Strong Cultures - Defined
Strong cultures have core values and beliefs that are intensely held, more widely shared and more ordered than weak cultures
Organizational Behavior: An Experiential Approach 8/EJoyce S. Osland, David A. Kolb, Irwin M. Rubin and Marlene E. Turner
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Characteristics of Strong CulturesEasily identified dominant valuesSelection process targets people who fit
the cultureSocialization and training teach
newcomers “the ropes”Employees who don’t fit are firedRewards for acting in accordance with
cultural valuesLeaders and managers send clear signals
about desired values and normsOrganizational Behavior: An Experiential Approach 8/EJoyce S. Osland, David A. Kolb, Irwin M. Rubin and Marlene E. Turner
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Strong CulturesAdvantages High performance under
certain conditions Clear sense of purpose More value-driven
decision making Employee commitment Loyalty Pride
Disadvantages Pressure for
conformity Resistance to
change
Organizational Behavior: An Experiential Approach 8/EJoyce S. Osland, David A. Kolb, Irwin M. Rubin and Marlene E. Turner
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Strong Cultures and Performance
Strong CultureFocus on Key Constituencies
Leadership at all Levels
High Performance
Organizational Behavior: An Experiential Approach 8/EJoyce S. Osland, David A. Kolb, Irwin M. Rubin and Marlene E. Turner
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The Importance of Fit
Organization’s task
Environment
StrategyPeople
Organizational Behavior: An Experiential Approach 8/EJoyce S. Osland, David A. Kolb, Irwin M. Rubin and Marlene E. Turner
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Culture
Transmitting Culture Via
SocializationStoriesSymbolsJargonRituals and CeremoniesStatements of Principles
Organizational Behavior: An Experiential Approach 8/EJoyce S. Osland, David A. Kolb, Irwin M. Rubin and Marlene E. Turner
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Socialization - Defined
Socialization is the systematic process by
which organizations bring new members into
their cultures
Organizational Behavior: An Experiential Approach 8/EJoyce S. Osland, David A. Kolb, Irwin M. Rubin and Marlene E. Turner
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Seven Steps of Socialization
Careful selectionof candidates
Humility-inducingexperiences In-the-trenches
training
Careful attentionto rewards & control
systems
Careful adherenceto core valuesReinforcing
folklore
Consistent rolemodels
Organizational Behavior: An Experiential Approach 8/EJoyce S. Osland, David A. Kolb, Irwin M. Rubin and Marlene E. Turner
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Organizational Justice
Distributive Justice - Fair distribution of resources (pay, rewards, promotions and dispute resolutions)
Procedural Justice - Fair decision-making procedures regarding resource distribution
Interactional Justice - Fair treatment from others
Organizational Behavior: An Experiential Approach 8/EJoyce S. Osland, David A. Kolb, Irwin M. Rubin and Marlene E. Turner
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Outcomes of Organizational Justice
Higher performanceComplianceTrust
Cooperation with coworkers Organizational citizenship behavior Less turnover Less absenteeism Less employee silence Less counterproductive behaviors
Organizational Behavior: An Experiential Approach 8/EJoyce S. Osland, David A. Kolb, Irwin M. Rubin and Marlene E. Turner
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…Outcomes of Organizational Justice
Increased Performance Compliance Trust in managers Cooperation with
coworkers Organizational
citizenship behavior
Decreased Less turnover Less absenteeism Less employee
silence Less
counterproductive behaviors
Organizational Behavior: An Experiential Approach 8/EJoyce S. Osland, David A. Kolb, Irwin M. Rubin and Marlene E. Turner
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Mergers and Culture50% failure rate on mergers and
acquisitions
To ensure a successful merger Analyze cultural compatibility of both
organizations beforehand Develop shared values rather than
imposing the values of one firm on the other
Organizational Behavior: An Experiential Approach 8/EJoyce S. Osland, David A. Kolb, Irwin M. Rubin and Marlene E. Turner
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How Leaders Create and Modify Culture – Primary MechanismsWhat they regularly pay attention to,
measure, and control Their reaction to critical incidents and
crisesCriteria used to allocate scarce resources
Organizational Behavior: An Experiential Approach 8/EJoyce S. Osland, David A. Kolb, Irwin M. Rubin and Marlene E. Turner
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…How Leaders Create and Modify Culture
Deliberate role modeling, teaching, andcoaching
Criteria for allocating rewards and statusCriteria for recruitment, selection,
promotion and termination
Organizational Behavior: An Experiential Approach 8/EJoyce S. Osland, David A. Kolb, Irwin M. Rubin and Marlene E. Turner
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How Leaders Create and Modify Culture - Secondary Mechanisms
1. Organizational design2. Systems and procedures3. Rites and rituals4. Design of physical space, facades,
buildings5. Stories about important events and
people6. Formal statements of organizational
philosophy, creeds, and chartersOrganizational Behavior: An Experiential Approach 8/EJoyce S. Osland, David A. Kolb, Irwin M. Rubin and Marlene E. Turner
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Organization Stages of Development
Siz
e
Small
Large
1.Entrepreneurial
Stage
4.Elaboration
Stage
3.Formalizatio
n Stage
2. Collectivity
Stage
Renewal
Decline
Continuing maturity
Organizational Behavior: An Experiential Approach 8/EJoyce S. Osland, David A. Kolb, Irwin M. Rubin and Marlene E. Turner
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How Can You Renew a Mature Organization?
Instill a customer perspective and focusing on customer demands
Increase their capacity for changeAlter both hardware and software within
the organizationCreate empowered employees who act as
leaders at all organizational levels
Organizational Behavior: An Experiential Approach 8/EJoyce S. Osland, David A. Kolb, Irwin M. Rubin and Marlene E. Turner
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