Unformatted text preview: THE DYNAMICS OF ORGANIZATIONAL CULTURE A. Introduction. 1. Organizational culture reflects the values, beliefs, and attitudes of its members. 2. Organizational culture includes: a. Routine ways of communicating b. The norms shared by individuals c. The dominant values held by the organization d. The philosophy that guides management's policies and decision-making e. The rules of the game for getting along in the organization f. The feeling or climate conveyed in an organization by the physical layout and the way in which managers and employees interact with customers, suppliers, and other outsiders. 3. The levels of organizational culture are: a. Shared assumptions and philosophy b. Cultural values c. Shared behaviors d. Cultural symbols 4. Assumptions and philosophy represent basic beliefs about reality, human nature, and the way things should be done. 5. Cultural values represent collective beliefs, assumptions, and feelings about what things are goo, normal, rational, and valuable. 6. Shared behaviors are more visible and somewhat easier to change than values. 7. Cultural symbols are words (jargon or slang), gestures, and pictures or other physical objects that carry a particular meaning within a culture. B. Forming a culture. 1. Problems of external adaptation and survival are: a. Mission & strategy: identifying the primary purpose of the organization and selecting strategies to pursue this mission. b. Goals: setting specific targets to achieve. c. Means: determining how to pursue the goals d. Measurement: establishing criteria to determine how well individuals, teams, and departments are accomplishing their goals. 2. Problems of internal integration are: a. Language & concepts: identifying methods of communication and developing a shared meaning of key values. b. Group & team boundaries: establishing criteria for membership in groups and teams. c. Power & status: determining rules for acquiring, maintaining, and losing power and status. d. Rewards & punishments: developing systems for encouraging desirable behaviors and discouraging undesirable behaviors. 3. An organizational culture emerges when members share knowledge and assumptions as they discover or develop ways of coping with issues of external adaptation and internal integration. C. Sustaining a culture. 1. The most powerful indicators of an organization's culture are: a. What managers and teams pay attention to, measure, and control b. The ways in which managers react to critical incidents and organizational cries c. Managerial and team role modeling, teaching, and coaching d. Criteria for allocating rewards and status e. Criteria for recruitment, selection, promotion, and removal from the organization f. Organizational rites, ceremonies, and stories 2. Organizational rites and ceremonies are planned activities or rituals that have important cultural meaning to employees. D. Changing a culture. 1. Cultures may be modified by changing: a. What managers and teams pay attention to b. How crises are handled c. Criteria for recruiting new members d. Criteria for promotion within the organization e. Criteria for allocating rewards f. Organizational rites and ceremonies 2. Subcultures are when multiple cultures are presented. 3. Subcultures sometimes cause managers two kinds of problems: a. Accurately assessing them b. Affecting needed changes especially when these subcultures are based in units in different locations. 4. To successfully change an organization's culture, management must: a. Understanding the old culture first because a new culture can't be developed unless managers and employees understand where they're starting from b. Providing support for employees and teams who have ideas for a better culture and are willing to act on those ideas c. Finding the most effective subculture in the organization and using it as an example from which employees can learn d. Not attacking culture head-on, but finding ways to help employees and teams do their jobs more effectively e. Treating the vision of a new culture as a guiding principle for change, not as a miracle cure f. Recognizing that significant organization-wide cultural change takes 5-10 years g. Living the new culture because actions speak louder than words TYPES OF ORGANIZATIONAL CULTURE A. Types of corporate cultures are: B. C. D. E. F. 1. Bureaucratic culture 2. Clan culture 3. Entrepreneurial culture 4. Market culture A bureaucratic culture is an organization that practices formality, rules, standard operating procedures, and hierarchical coordination 1. Managerial roles in a bureaucratic culture include: a. Being good coordinators b. Being good organizers c. Being good enforcers of written rules and standards Clan culture. 1. Attributes of a clan culture are: a. Tradition b. Loyalty c. Personal commitment d. Extensive socialization e. Teamwork f. Self-management g. Social influence 2. A clan culture achieves unity by means of a long and thorough socialization process. 3. A clan culture's success depends on sensitivity to customers and concern for people. Entrepreneurial culture is characterized by high levels of risk taking and creativity. Market culture is characterized by the achievement of measurable and demanding goals, especially those that are financial and market based. 1. The relationship between individual and organization is contractual. 2. Superiors' interactions with subordinates consist largely of negotiating performance-reward agreements and/or evaluating requests for resource allocations. Four key ideas, which summarize the effects of organizational culture on employee behavior and performance, are: 1. Organizational culture can have a significant impact on a firm's long-term economic performance. 2. Organizational culture will probably be an even more important factor in determining the success or failure of firms during the next decade. 3. Organizational cultures that inhibit strong long-term financial performance are not rare; they develop easily, even in firms that are filled with reasonable and intelligent people. 4. Although tough to change, organizational culture can be made more performance enhancing if mangers understand what sustains a culture. ETHICAL BEHAVIOR AND ORGANIZATIONAL CULTURE A. Strategies to change unethical behavior include: 1. Secretly or publicly reporting unethical actions to a higher level within an organization 2. Secretly or publicly reporting unethical actions to someone outside the organization 3. Secretly or publicly threatening an offender or a responsible manager with reporting unethical actions 4. Quietly or publicly refusing to implement an unethical order or policy B. Whistle-blowing is the disclosure by current or former employees of illegal, immoral, or illegitimate organizational practices to people or organizations that may be able to change the practice. C. The creation of organizational cultures that encourage ethical behavior should include: 1. Be realistic in setting values and goals regarding employment relationships. 2. Encourage input from throughout the organization regarding appropriate values and practices for implementing the culture. 3. Develop a strong culture that encourages and rewards diversity and principled dissent, such as grievance or complaint mechanisms or other internal review procedures. 4. Provide training programs for managers and teams on adopting and implementing the organization's values. D. With respect to ethical behavior, an effective organizational culture should encourage ethical behavior and discourage unethical behavior. FOSTERING CULTURAL DIVERSITY A. Benefits of increasing diversity in organizations include: 1. Successful marketing strategies 2. Improved decision making 3. Greater innovation and creativity B. Costs of cultural diversity in organizations include: 1. Communication difficulties 2. Intraorganizational conflict 3. Turnover C. Guidelines for managing cultural diversity: 1. Managers and employees must understand that a diverse workforce will embody different perspective and approaches to work and must truly value variety of opinion and insight. 2. Managers must recognize both the learning opportunities and the challenges that the expression of different perspectives presents for the organizations. 3. The organizational culture must create an expectation of high standards of performance and ethics from everyone. 4. The organizational culture must stimulate personal development. 5. The organizational culture must encourage openness. 6. The organizational culture must make workers feel valued. 7. The organization must have a clearly stated and widely understood mission. SOCIALIZATION OF NEW EMPLOYEES A. Socialization is the process by which older members of a society transmit to younger members the social skills and knowledge needed to function effectively in that society. B. Organizational socialization is the systematic process by which an organization brings new employees into its culture. C. Steps in the socialization process are: 1. Careful selection 2. Challenging early work assignments 3. Training to develop capabilities consistent with culture 4. Rewards that sustain the culture 5. Adoption of cultural value policies 6. Rituals, taboos, rites, and stories to reinforce culture 7. Role model to sustain culture D. Possible outcomes of successful socialization are: 1. Job satisfaction 2. Role clarity 3. High work motivation 4. Understanding of culture, perceived control 5. High job involvement 6. Commitment to organization 7. Tenure 8. High performance 9. Internalized values E. Possible outcomes of unsuccessful socialization are: 1. Job dissatisfaction 2. Role ambiguity and conflict 3. Low work motivation 4. Misunderstanding, tension, perceived lack of control 5. Low job involvement 6. Lack of commitment to organization 7. Absenteeism, turnover 8. Low performance 9. Rejection of values ...
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- Spring '08