MGMT 371: Organizational Culture

1. MGMT 371:Organizational Culture • “A pattern of basic assumptions that the group learned as it solved its problems of external adaptation and internal integration, that has worked well enough to be considered valid and, therefore, to be taught to new members as the correct way to perceive, think and feel in relation to those problems.” Edgar Schein, 1992

2. Artifacts – symbols of culture in the physical and social work environment Levels of Organizational Culture Values Espoused: what members of an organization say they value Enacted: 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

3. Organizational Culture Artifacts – symbols of culture in the physical and social work environment Visible, often not decipherable Values Espoused: what members of an organization say they value Enacted: reflected in the way individuals actually behave Greater level of awareness Assumptions –deeply held beliefs that guide behavior and tell members of an organization how to perceive and think about things Taken for granted, Invisible, Preconscious

4. Types of Artifacts • Personal Enactment • Ceremonies and Rites • Stories • About the boss • About getting fired • About relocating • About promotions • About crisis situations • About status considerations • Rituals • Symbols

5. 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 of the organization • Culture serves as a control mechanism for shaping behavior

6. Antecedents Group & Social Processes Organizational Structure & Practices • Founder’s values • Industry & business • environment • National culture • Senior leaders’ • vision and behavior Organizational Culture • Socialization • Mentoring • Decision • making • Group • dynamics • Communication • Influence & • empowerment • Leadership • Reward systems • Organizational • design • Observable artifacts • Espoused values • Basic assumptions • Collective Attitudes & Behavior • Work attitudes • Job satisfaction • Motivation • Organizational Outcomes • Effectiveness • Innovation & • stress Understanding Organizational Culture

7. Types of Cultures • Constructive • Valuing members, self-actualizing, affiliative, and humanistic/encouraging normative beliefs (expected behavior or conduct) • Passive-defensive • Approval-oriented, traditional and bureaucratic, dependent and nonparticipative, punish mistakes but ignore success • Aggressive-defensive • Confrontation and negativism are rewarded, nonparticipative, positional power, winning valued, competitiveness rewarded, perfectionistic

8. Organizational Characteristics Normative Beliefs Goal and achievement oriented Achievement Self-actualizing Value self-development and creativity Participative, employeecentered, and supportive Humanistic-encouraging High priority on constructive interpersonal relationships, and focus on work group satisfaction Affiliative Constructive Culture

9. Organizational Characteristics Normative Beliefs Avoid conflict, strive to be liked by others, and approval oriented Approval Conservative, bureaucratic, and people follow the rules Conventional Dependent Nonparticipative, centralized decision making, and employees do what they are told Negative reward system and Defensive avoid accountability Avoidance Passive Defensive Culture

10. Organizational Characteristics Normative Beliefs Confrontation and negativism rewarded Oppositional Power Nonparticipative, take charge of Defensive subordinates, and responsive to superiors Winning is values and a win-lose approach is used Competitive Perfectionistic, persistent, and hard working Perfectionistic Aggressive-Defensive Culture

11. Organizational Culture Research Suggests: • Organizational culture correlated with employee attitudes and behavior • Congruence between an individual’s values and the organization’s values associated with organizational commitment, job satisfaction, intentions to quit, and turnover • Organizational culture did not predict a company’s financial performance • Mergers frequently failed due to incompatible cultures

12. Theories on the relationship between organizational culture and performance Strong Culture Perspective Fit Perspective Adaptive Perspective

13. Strong Culture an organizational culture with a consensus on the values that drive the company and with an intensity that is recognizable even to outsiders

14. 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

15. Fit Perspective a culture is good only if it fits the industry or the firm’s strategy

16. Fit Perspective • Three particular industry characteristics affect culture: • Competitive environment • Customer requirements • Societal expectations

17. Adaptive Culture an organizational culture that encourages confidence and risk taking among employees, has leadership that produces change, and focuses on the changing needs of customers

18. Adaptive vs. Nonadaptive Cultures

19. 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

20. Organizational Socialization Phase 1: Anticipatory Phase 2: Encounter Phase 3: Change and acquisition

21. Organizational Socialization Process

22. Anticipatory socialization learning that occurs prior to joining the organization • Anticipating realities about the organization and the new job • Anticipating organization’s needs for one’s skills and abilities • Anticipating organization’s sensitivity to one’s needs and values Organizational Socialization Phases Perceptual and Social Processes

23. Organizational Socialization Phases Perceptual and Social Processes • Encounter values, skills, and attitudes start to shift as new recruit discovers what the organization is truly like • Managing lifestyle-versus-work conflicts • Managing intergroup role conflicts • Seeking role definition and clarity • Becoming familiar with task and group dynamics

24. Organizational Socialization Phases Perceptual and Social Processes • Change and acquisition recruit masters skills and roles and adjusts to work group’s values and norms • Competing role demands are resolved • Critical tasks are mastered • Group norms and values are internalized

25. Outcomes of Socialization Newcomers who are successfully socialized should exhibit: • Good performance • High job satisfaction • Intention to stay with organization • Low levels of distress symptoms • High level of organizational commitment

26. How cultures are embedded in organizations • Formal/public statements • Physical Layout • Slogans, co. lingo • Mentoring, modeling • Explicit rewards, promotion criteria • Stories, legends, myths • Processes and outcomes, measurement • Workflow and systems

27. Mentoring • Outcomes for Mentees • Outcomes for Mentors • Outcomes for Organizations • Maintaining the Culture

28. Functions of Mentoring • Career Functions • Sponsorship • Exposure-and-Visibility • Coaching • Protection • Challenging Assignments • Psychological Functions • Role Modeling • Acceptance-and-Confirmation • Counseling • Friendship

29. Organizational Culture Inventory Focuses on behaviors that help employees fit into the organization and meet coworker expectations Uses Maslow’s hierarchy of needs to measure twelve cultural styles

30. Kilmann-Saxton Culture-Gap Survey Focuses on what actually happens in the organization and the expectations of others Two underlying dimensions – technical/human and time.

31. Interventions for Changing Organizational Culture

32. Questions on Culture • Can the organizational culture change? • How? • Where does the culture come from? 1. 2. 3. • Does the culture look the same from the top and from the bottom?