Organizational Culture_Class self readable notes

Project planning and management course topics

1. Principles of Management (BA 100)/Organizational Theory and
Management (BA 101)



Organizational Culture

2. Organizational (Corporate)
Culture

A pattern of basic assumptions that are considered
valid and that are taught to new members as
the way to perceive, think, and
feel in the organization

3. Levels of
Organizational
Culture




Values
Espoused: what members of
an organization say they value
Enacted: reflected in the way
individuals actually behave
Artifacts - symbols of
culture in the physical
and social work environment

Assumptions - deeply held
beliefs that guide behavior and tell
members of an organization how
to perceive and think about things

4. 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
in the organization
 Culture serves as a control
mechanism for shaping
behavior

5. Theories about the
relationship between
organizational culture
and performance






Strong
Culture
Perspective

Adaptive
Perspective

Fit
Perspective

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

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


Strong
Culture
Perspective

7. Argument that a culture is good
only if it fits the industry’s or the
firm’s strategy.











Organizational characteristics that may affect culture
▪ Customer requirements
▪ Competitive environment
▪ Societal expectations

Fit
Perspective

8. An organizational culture that
encourages confidence and risk
taking among employees, has
leadership that produces change, and
focuses on the changing needs of
customers

Adaptive
Perspective

9. Five 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

10. Organizational Socialization


The process by which newcomers are
transformed from outsiders to
participating, effective members of the
organization

11. 1. Anticipatory
Socialization


2. Encounter






3. Change and
Acquisition



Stages of
Socialization
Job demands
•Task
•Role
•Interpersonal
Congruence Realism
Mastery
Performance
Satisfaction
Mutual influence
Low levels of distress
Intent to remain
Outcomes of Socialization

12. 1. Anticipatory Socialization - the first socialization
stage--encompasses all of the learning that takes
place prior to the newcomer’s first day on the job

2. Encounter - the second socialization stage-- the
newcomer learns the tasks associated with the job,
clarifies roles, and establishes new relationships at
work. Congruence means agreement.
3. Change & Acquisition - the third socialization
stage—the newcomer begins to master the demands
of the job

13. Socialization as
Cultural Communication

Core values are transmitted to new organization
members through

◼ the role models they interact with
◼ the training they receive
◼ the behavior they observe being rewarded and
punished

14. Assessing Organizational
Culture

 Organizational Culture Inventory focuses on
behaviors that help employees fit into the
organization & meet coworker expectations
 Kilman-Saxton Culture-Gap Survey focuses on the
expectations of others in the organization
 Triangulation - the use of multiple methods to
measure organizational culture

15. Situations That May Require
Cultural Changes




 Merger or acquisition
 Employment of people from different countries




Reasons That Change Is Difficult
 Assumptions are often unconscious
 Culture is deeply ingrained and behavioral norms
and rewards are well learned

16. Examining
justifications
for changed
behavior
Changing
Behavior
Cultural
communication
Removing
members who
reject the
New culture
Hiring and
socializing
members who
fit in with the
new culture

Culture

























Interventions for
Changing
Organizational
Culture
1
5 4
3

17. Cultural Modifications in the
Current Business Environment



Support for a global
view of business

Reinforcement of
ethical behavior
Empowerment of
employees to excel
in product and
service quality

18. Support for a global
view of business



 Create a clear and simple mission statement
 Create systems that ensure effective information
flow
 Create “matrix minds” among managers
 Develop global career paths
 Use cultural differences as major assets
 Implement worldwide management education and
team development programs

19. Reinforcement of
ethical behavior



 Clear communication of the boundaries of ethical
conduct
 Selection of employees who support the ethical
culture
 Reward of ethical behavior
 Conspicuous punishment of members who engage
in unethical behavior

20. Empowerment of employees to
excel in product and service quality




 Empowerment unleashes employees’ creativity
 Empowerment requires eliminating traditional
hierarchical notions of power
◼ Involve employees in decision making
◼ Remove obstacles to their performance
◼ Communicate the value of product and service
quality