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    Principles of Management

    Organizational

    Culture

    and Environment

    CHAPTER-4

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    AFTER STUDYING THIS CHAPTER, YOU SHOULD BE ABLE TO:

    Define, What is Organizational Culture.

    Recognize the characteristics and importance of

    organizational culture. Asses how Culture effects a manager's performance.

    Describe current issues in organizational culture.

    Understand external environment of an organization.

    Articulate the differences between the functioning ofGroups and Team

    Asses how Teams are an essential part of modernorganisational life and their impact on organizationalculture.

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    The Manager:

    Omnipotent or Symbolic

    ?

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    34

    Omnipotent View of Management

    Managers are directly responsible for an organizationssuccess or failure.

    The quality of the organization is determined by the qualityof its managers.

    Managers are held accountablefor an organizations performanceyet it is difficult to attribute

    good or poor performancedirectly to their influenceon the organization.

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    Symbolic View of Management

    Much of an organizations success or failure is dueto external forces outside of managers control.

    The ability of managers to affect outcomes is

    influenced and constrained by external factors. The economy, customers, governmental policies,

    competitors, industry conditions,technology, and the actions ofprevious managers

    Managers symbolize control andinfluence through their action.

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    Parameters of Managerial Discretion

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    Organizational Culture

    A system of shared meanings and commonbeliefs held by organizational members thatdetermines, in a large degree, how they act

    towards each other.

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    The Organizations Culture

    The way we do things around here.

    Values, symbols, rituals, myths, and practices Implications:

    Culture is a perception.

    Culture is descriptive.

    Culture is shared.

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    Dimensions of Organizational Culture

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    How an Organizations Culture Is Established andMaintained

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    Strong versus Weak Cultures

    Strong Cultures Are cultures in which key values are deeply held and widely

    held.

    Have a strong influence on organizational members.

    Factors Influencing the Strength of Culture

    Size of the organization

    Age of the organization

    Rate of employee turnover

    Strength of the original culture

    Clarity of cultural values and beliefs

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    Benefits of a Strong Culture

    Creates a stronger employee commitment to theorganization.

    Aids in the recruitment and socialization of newemployees.

    Fosters higher organizationalperformance by instilling and

    promoting employee initiative.

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    Strong versus Weak Organizational Cultures

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    How Employees Learn Culture

    Stories

    Narratives of significant events or actions of people thatconvey the spirit of the organization

    Rituals

    Repetitive sequences of activities that express and reinforcethe values of the organization

    Material Symbols

    Physical assets distinguishing the organization

    Language

    Acronyms and jargon of terms, phrases, and word meaningsspecific to an organization

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    How Culture Affects Managers

    Cultural Constraints on Managers

    Whatever managerial actions the organization recognizes asproper or improper on its behalf

    Whatever organizational activities the organization valuesand encourages

    The overall strength or weakness of the organizationalculture

    Simple rule for getting ahead in an organization:

    Find out what the organization rewards and do those things.

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    External Environment

    Those factors and forces outside theorganization that affect the organizations

    performance.

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    Components of the External Environment

    Specific environment: External forces that have a direct and immediate impact on

    the organization.

    General environment: Broad economic, socio-cultural, political/legal,

    demographic, technological, and global conditions that mayaffect the organization.

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    Specific environment

    Customer

    Supplier

    Pressure Group

    Competitors

    General environment

    Economical condition

    Political

    Condition

    Social culturalCondition

    TechnologicalCondition

    DemographicCondition

    Global Condition

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    How the Environment Affects Managers

    Environmental Uncertainty

    The extent to which managers have knowledge of

    and are able to predict change their organizationsexternal environment is affected by:

    Complexity of the environment: the number ofcomponents in an organizations external environment.

    Degree of change in environmental components: howdynamic or stable the external environment is.

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    Stakeholder Relationships

    Stakeholders

    Any constituencies in the organizations environment thatare affected by the organizations decisions and actions

    Why Manage Stakeholder Relationships?

    It can lead to improved organizational performance.

    Its the right thing to do given the interdependence of the

    organization and its external stakeholders.

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    Organizational Stakeholders

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    CURRENT OrganizationCultural Issues

    Creating an Ethical Culture

    Creating an Innovative Culture

    Creating a Customer-Responsive Culture

    Spirituality and Organizational Culture

    Team Work Culture

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    Creating an Ethical Culture

    High in risktolerance

    Low to moderateaggressiveness

    Focus on means aswell as outcomes

    Creating an Innovative Culture

    Challenge andinvolvement

    Freedom

    Trust and openness Idea time

    Playfulness/humor

    Conflict resolution

    Debates

    Risk-taking

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    Hiring the right type of employees (ones with astrong interest in serving customers)

    Having few rigid rules, procedures, and regulations

    Using widespread empowerment of employees

    Having good listening skills in relating to customersmessages

    Providing role clarity to employees to reduce

    ambiguity and conflict and increase job satisfaction Having conscientious, caring employees willing to

    take initiative

    Creating a Customer-Responsive Culture

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    Spirituality and Organizational Culture

    Workplace Spirituality

    The recognition that people have an inner life thatnourishes and is nourished by meaningful work that

    takes place in the context of community.

    Characteristics of a Spiritual Organization

    Strong sense of purpose

    Focus on individual development

    Trust and openness

    Employee empowerment

    Toleration of employees expression

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    DevelopingGroup Vs Team

    Culture

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    GROUPS:

    Two or more interacting and

    interdependentindividuals who come together to

    achieve particular

    GOAL

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    WHY PEOPLE JOIN GROUPS:

    Security

    Status

    Self-esteem

    Affiliation Power

    Goal achievement

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    TYPES OF WORK GROUP

    WORK

    GROUP

    FORMAL

    GROUP

    INFORMAL

    GROUP

    COMMAND

    TASK

    GROUP

    TEMPORARYTASK GROUP

    PERMANENT

    TASK GROUP

    FRIENDSHIP

    GROUP

    INTREST

    GROUP

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    STAGES OF WORK GROUP:

    Stage # 4Performing

    Stage # 5Adjourning

    Stage # 6Mourning/Grieving

    Stage # 3

    Norming

    Stage # 2

    Storming

    Stage # 1

    Forming

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    The degree to which group members are attracted toa group and share the group goals.

    High Low

    HIgh

    LOw

    Strong increasein Productivity

    Decrease inproductivity

    Moderate increaseIn productivity

    No significanteffect

    in Productivity

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    Lack of trust among group members.

    Lack of cooperation/Cohesion. Authoritative behavior of leader.

    Conflicts and disputes among group members.

    Diverging objectives.

    WHY GROUPS SOMETIMES FAIL

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    Turning Groups into

    Effective Team

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    Team

    A smaller number of people withcomplementary skills who are committed to acommon purpose, set of performance goals,

    and approaches for which they hold

    themselves mutually accountable.

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    DIFFERENCE BETWEEN GROUPS AND TEAMS

    Shared Vision.

    Team Spirit.

    Sharing and caring Attitude.

    Setting performance goals.

    Mutually accountable for results.

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    Why move to team working?

    Teamwork can increase competitiveness by:

    Improving productivity

    Improving quality and encouraginginnovation

    Taking advantage of the opportunitiesprovided by technological advances

    Improving employee motivation andcommitment

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    Interpersonal Skills Required by a Leader in Managing and

    developing Trust among Teams

    Appropriate questioning.

    Weltanschauung.

    Group discussions.

    Friendly climate.

    Use of consensus method.

    Involvement of team members in setting goals.

    Implement meeting guidelines.Encourage self respect

    Identify and deal with dysfunctional behaviors

    Celebrating teams achievement and accomplishments

    Use different techniques to motivate team members

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    Characteristics ofEffective

    TEAM

    ?

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    How Teams can have a good fight

    Work with more, rather than less, information.

    Develop multiple alternatives to enrich debate. Establish common goals.

    Inject humor into workplace.

    Maintain a balance of power.

    Resolve issues without facing a consensus.