Lecture 5 Notes - Hello everyone, At this point, we have...

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Hello everyone, At this point, we have covered designing the organization to fit the business strategy and business needs, staffing the organization, and then managing the employees in a way that complies with various employment laws and presumably utilizes talent wherever it can be found. Today we focused on organizational culture and organizational change. Culture is a powerful form of social control over employee behavior. This power allows the organization to control the behaviors and actions of its people without management’s direction or written rules. The control comes from shared values and norms. By stating its values and establishing its norms, organizations can shape and control employee behavior through various rewards and punishments. I attempted to demonstrate the power of culture and the norms that underlie it with the money experiment. Because a few people in class knew about the experiment, the experiment was a bit contaminated. If viewed from “fresh eyes” students would have reacted more predictably. Do you know why students stayed in their seats? Do you know what unwritten rules they recognized and then stuck to when presented with the situation of free money? That’s how it works. Things we carry around in our head about what is right or wrong behavior for one reason or another is learned through social interactions, and they become powerful controllers of our behavior. If someone “breaks” the norm by disobeying the unwritten rules and suffers no consequence, how likely is it that others will break the norm on subsequent occasions? Right, more likely.
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Lecture 5 Notes - Hello everyone, At this point, we have...

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