Culture
Chapter
SEVENTEEN
Organizational 2007 Prentice Hall Inc. All rights reserved.
Institutionalization: A Forerunner of Culture
Institutionalization Whenanorganizationtakesonalifeofitsown, apartfromanyofitsmembers,becomesvaluedfor itself,andacquiresimmortality.
2007 Prentice Hall Inc. All rights reserved.
What Is Organizational Culture?
Organizational Culture Acommonperception heldbytheorganizations members;asystemof sharedmeaning. Characteristics:
1. Innovation and risk taking 2. Attention to detail 3. Outcome orientation 4. People orientation 5. Team orientation 6. Aggressiveness 7. Stability
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Contrasting Organizational Cultures
Organization A This organization is a manufacturing firm. Managers are expected to fully document all decisions; and good managers are those who can provide detailed data to support their recommendations. Creative decisions that incur significant change or risk are not encouraged. Because managers of failed projects are openly criticized and penalized, managers try not to implement ideas that deviate much from the status quo. One lower-level manager quoted an often used phrase in the company: If it aint broke, dont fix it. There are extensive rules and regulations in this firm that employees are required to follow. Managers supervise employees closely to ensure there are no deviations. Management is concerned with high productivity, regardless of the impact on employee morale or turnover. Work activities are designed around individuals. There are distinct departments and lines of authority, and employees are expected to minimize formal contact with other employees outside their functional area or line of command. Performance evaluations and rewards emphasize individual effort, although seniority tends to be the primary factor in the determination of pay raises and promotions.
E X H I B I T 171 2007 Prentice Hall Inc. All rights reserved.
Contrasting Organizational Cultures (contd)
Organization B This organization is also a manufacturing firm. Here, however, management encourages and rewards risk taking and change. Decisions based on intuition are valued as much as those that are well rationalized. Management prides itself on its history of experimenting with new technologies and its success in regularly introducing innovation products. Managers or employees who have a good idea are encouraged to run with it. And failures are treated as learning experiences. The company prides itself on being market-driven and rapidly responsive to the changing needs of its customers. There are few rules and regulations for employees to follow, and supervision is loose because management believes that its employees are hardworking and trustworthy. Management is concerned with high productivity, but believes that this comes through treating its people right. The company is proud of its reputation as being a good place to work. Job activities are designed around work teams, and team members are encouraged to interact with people across functions and authority levels. Employees talk positively about the competition between teams. Individuals and teams have goals, and bonuses are based on achievement of these outcomes. Employees are given considerable autonomy in choosing the means by which the goals are attained.
E X H I B I T 171 (contd) 2007 Prentice Hall Inc. All rights reserved.
Do Organizations Have Uniform Cultures?
Dominant Culture Expressesthecorevalues thataresharedbyamajority oftheorganizations members. Subcultures Minicultureswithinan organization,typicallydefined bydepartmentdesignations andgeographicalseparation.
2007 Prentice Hall Inc. All rights reserved.
Do Organizations Have Uniform Cultures? (contd)
Core Values Theprimaryordominantvaluesthatareaccepted throughouttheorganization.
Strong Culture Acultureinwhichthe corevaluesareintensely heldandwidelyshared.
2007 Prentice Hall Inc. All rights reserved.
What Is Organizational Culture? (contd)
Culture Versus Formalization
Astrongcultureincreasesbehavioralconsistencyand canactasasubstituteforformalization.
Organizational Culture Versus National Culture
Nationalculturehasagreaterimpactonemployees thandoestheirorganizationsculture. Nationalsselectedtoworkforforeigncompaniesmay beatypicalofthelocal/nativepopulation.
2007 Prentice Hall Inc. All rights reserved.
What Do Cultures Do?
Cultures Functions:
1. Defines the boundary between one organization and others. 2. Conveys a sense of identity for its members. 3. Facilitates the generation of commitment to something larger than self-interest. 4. Enhances the stability of the social system. 5. Serves as a sense-making and control mechanism for fitting employees in the organization.
2007 Prentice Hall Inc. All rights reserved.
What Do Cultures Do?
Culture as a Liability:
1. Barrier to change 2. Barrier to diversity 3. Barrier to acquisitions and mergers
2007 Prentice Hall Inc. All rights reserved.
How Culture Begins
Founders hire and keep only employees who think and feel the same way they do. Founders indoctrinate and socialize these employees to their way of thinking and feeling. The founders own behavior acts as a role model that encourages employees to identify with them and thereby internalize their beliefs, values, and assumptions.
2007 Prentice Hall Inc. All rights reserved.
Keeping Culture Alive
Selection
Concernwithhowwellthecandidateswillfitintothe Providesinformationtocandidatesaboutthe organization. organization.
Top Management
Seniorexecutiveshelpestablishbehavioralnormsthat areadoptedbytheorganization.
Socialization
Theprocessthathelpsnewemployeesadapttothe organizationsculture.
2007 Prentice Hall Inc. All rights reserved.
Stages in the Socialization Process
Prearrival Stage
Theperiodoflearninginthesocialization processthatoccursbeforeanew employeejoinstheorganization.
Encounter Stage
Thestageinthesocializationprocessinwhicha newemployeeseeswhattheorganizationis reallylikeandconfrontsthepossibilitythat expectationsandrealitymaydiverge.
Metamorphosis Stage
Thestageinthesocializationprocessinwhichanewemployee changesandadjuststothework,workgroup,andorganization.
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A Socialization Model
E X H I B I T 172 2007 Prentice Hall Inc. All rights reserved.
Entry Socialization Options
Formal versus Informal Individual versus Collective Fixed versus Variable Serial versus Random Investiture versus Divestiture
E X H I B I T 173
Source: Based on J. Van Maanen, People Processing: Strategies of Organizational Socialization, Organizational Dynamics, Summer 1978, pp. 1936; and E. H. Schein, Organizational Culture, American Psychologist, February 1990, p. 116.
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How Organization Cultures Form
E X H I B I T 174 2007 Prentice Hall Inc. All rights reserved.
How Employees Learn Culture
Stories Rituals Material Symbols Language
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Creating An Ethical Organizational Culture
Characteristics of Organizations that Develop High Ethical Standards
Hightoleranceforrisk Lowtomoderateinaggressiveness Focusonmeansaswellasoutcomes
Managerial Practices Promoting an Ethical Culture
Beingavisiblerolemodel Communicatingethicalexpectations Providingethicaltraining Rewardingethicalactsandpunishingunethicalones Providingprotectivemechanisms
2007 Prentice Hall Inc. All rights reserved.
Creating a Customer-Responsive Culture
Key Variables Shaping CustomerResponsive Cultures
1. Thetypesofemployeeshiredbythe organization. 2. Lowformalization:thefreedomtomeet customerservicerequirements. 3. Empoweringemployeeswithdecision makingdiscretiontopleasethecustomer. 4. Goodlisteningskillstounderstand customermessages. 5. Roleclaritythatallowsserviceemployees toactasboundaryspanners. 6. Employeeswhoengageinorganizational citizenshipbehaviors.
2007 Prentice Hall Inc. All rights reserved.
Creating a Customer-Responsive Culture (contd) Managerial Actions: Select new employees with personality and attitudes consistent with high service orientation. Train and socialize current employees to be more customer focused. Change organizational structure to give employees more control. Empower employees to make decisions about their jobs.
2007 Prentice Hall Inc. All rights reserved.
Creating a Customer-Responsive Culture (contd) Managerial Actions (contd) : Lead by conveying a customer-focused vision and demonstrating commitment to customers. Conduct performance appraisals based on customer-focused employee behaviors. Provide ongoing recognition for employees who make special efforts to please customers.
2007 Prentice Hall Inc. All rights reserved.
Spirituality and Organizational Culture
Workplace Spirituality Therecognitionthatpeoplehaveaninnerlifethat nourishesandisnourishedbymeaningfulworkthat takesplaceinthecontextofthecommunity. Characteristics:
Strong sense of purpose Focus on individual development Trust and openness Employee empowerment Toleration of employee expression
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Reasons for the Growing Interest in Spirituality
As a counterbalance to the pressures and stress of a turbulent pace of life and the lack of community many people feel and their increased need for involvement and connection. Formalized religion hasnt worked for many people. Job demands have made the workplace dominant in many peoples lives, yet they continue to question the meaning of work. The desire to integrate personal life values with ones professional life. An increasing number of people are finding that the pursuit of more material acquisitions leaves them unfulfilled.
E X H I B I T 175 2007 Prentice Hall Inc. All rights reserved.
How Organizational Cultures Have an Impact on Performance and Satisfaction
E X H I B I T 176 2007 Prentice Hall Inc. All rights reserved.
Chapter Check-Up: Org. Culture
If you walked into a bank and saw vibrant, modern, abstract art on the walls and big bright blue balls in the waiting area for customers to sit on (or throw!), what would you think about the culture? How would you expect your transaction with the teller to be different from other banks youve been in?
2007 Prentice Hall Inc. All rights reserved.
Chapter Check-Up: Org. Culture
Joseph arrives for his first day of work and is told that hell be spending two months unlearning all hes learned so far in school. He is experiencing ________________.
Investiture Divestiture Sequential Training On the job training
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Chapter Check-Up: Org. Culture
How are the founders of your university or college represented in the current culture? In other words, what values of the founders are still prevalent today and engrained as part of the organizational culture?
2007 Prentice Hall Inc. All rights reserved.