chapter 16 organizational culture nelson & quick
TRANSCRIPT
Chapter 16Organizational Culture
Nelson & Quick
Organizational (Corporate) 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
OrganizationalCulture LevelsArtifacts - Artifacts - Symbols of
culture in the physicaland social work environment
ValuesValuesEspoused: Espoused: what members of what members of an organization say they valuean organization say they valueEnacted:Enacted: reflected in the way reflected in the wayindividuals actually behave individuals actually behave
Assumptions - Assumptions - Deeply heldbeliefs that guide behavior and tell members of an organization how to perceive and think about things
Visible, often not decipherable
Greater levelof awareness
Taken for granted Invisible
Preconscious
Reprinted with permission from Edgar H. Schein, OrganizationalCulture and Leadership: A Dynamic View. Copyright © 1985 Jossey-Bass Inc,, Publishers, 350 Sansome Street, San Francisco, CA 94104 (800) 956-7739.
• Personal enactment• Ceremonies and rites (rites of passage, enhancement,
renewal, integration, conflict reduction, degradation)• Stories (about the boss, getting fired, company handling of
relocating employees, whether lower-level employees can rise to the top, how the company deals with crises, how status considerations work when rules are broken)
• Ritual• Symbols
Artifacts - Artifacts - Symbols ofculture in the physical
and social work environment
• Testable in the physical environment
• Testable only by social consensus
ValuesValuesEspoused: Espoused: what members of
an organization say they valueEnacted:Enacted: reflected in the way
individuals actually behave
• Relationship to environment• Nature of reality, time, and space• Nature of human nature• Nature of human activity• Nature of human relationships
Assumptions - Assumptions - Deeply held beliefs that guide behavior and tell
members of an organization how to perceive and think about things
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
FitPerspective
Strong CulturePerspective
Theories about the relationship between organizational culture and performance
An organizational culture
with a consensus on the
values that drive the company
and with an intensity that is
recognizable even to outsiders
Strong CulturePerspective
Reasons Strong cultures facilitate performance • 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
Argument that a culture is
good only if it fits the
industry’s or the
firm’s strategy.
Three characteristics of the organization may affect culture
• Competitive environment• Customer requirements• 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
AdaptivePerspective
Adaptive Nonadaptive
Most managers careabout 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.
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
Organizational Socialization - the process by which newcomers are transformed from outsiders to participating, effective members of the organization
Stages of Socialization
Realism Congruence
Job demands•Task •Role •Interpersonal
Mastery
1. Anticipatory Socialization
2. Encounter
3. Change andAcquisition
Stages of Socialization
Realism Congruence
Job demands•Task •Role •Interpersonal
Mastery
1. Anticipatory Socialization
2. Encounter
3. Change andAcquisition
PerformanceSatisfactionMutual influenceLow levels of distressIntent to remain
Outcomes of Socialization
From “An Ethical Weather Repart: Assessing the Organizaiton’s Ethical Climate” by John B. Cullen, etal. In Organizational Dynamics, Autumn 1989. Copyright © 1989 American Management AsociationInternational. Reprinted by permission of American Management Association International, New York, N.Y.All rights reserved. Http://www.amanet. Org.
1. Anticipatory Socialization
the first socialization stage--encompasses all
of the learning that takes place prior to the newcomer’s first day on the job
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 & Acquisition
the third socialization stage--the newcomer begins to master the demands of 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 & meet coworker expectations
• Kilman-Saxton Culture-Gap Survey focuses on the expectations of others in the organization
• Triangulation is the use of multiple methods to measure organizational culture
Situations That May Require Cultural Changes
• Merger or acquisition• Employment of people from different
countries
Reasons That Change Is Difficult
• Assumptions are often unconscious• Culture is deeply ingrained and behavioral
norms and rewards are well learned
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, Publishers, 350 Sansome Street, San Francisco, CA 94104 (800) 956-7739.
Cultural Modifications in the Current Business Environment
Support 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 ofethical 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