Org culture


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  • Org culture

    1. 1. Organizational Culture
    2. 2. Organizational (Corporate) CultureA pattern of basic assumptions thatare considered valid and that aretaught to new members as the way to perceive, think, and feel in theorganization
    3. 3. Artifacts – symbols of s culture in the physical and social work environment Values Espoused: what members of Levels of an organization say they value Organizational Enacted: reflected in the way individuals actually behave Culture Assumptions – deeply heldbeliefs that guide behavior and tellmembers of an organization howto perceive and think about things
    4. 4. Artifacts Organizational• Personal enactment Culture Levels• Ceremonies and rites• Stories Visible, often not• Ritual decipherable• SymbolsValues• Testable in the physical Greater levelenvironment of awareness• Testable only by social consensusBasic Assumptions Taken for granted• Relationship to environment Invisible Preconscious• Nature of reality, time, and space• Nature of human nature• Nature of human activity Reprinted with permission from Edgar H. Schein,• Nature of human relationships Organizational Culture and Leadership: A Dynamic View. Copyright © 1985 Jossey-Bass Inc, a subsidiary of John Wiley & Sons, Inc.
    5. 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 in the organization• Culture serves as a control mechanism for shaping behavior
    6. 6. Theoriesabout the Strong Culturerelationship Perspectivebetweenorganizationalculture Fitand Perspectiveperformance Adaptive Perspective
    7. 7. An organizationalculture with aconsensus on thevalues that drive the Strongcompany and with an Cultureintensity that is Perspectiverecognizable even tooutsiders 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
    8. 8. Argument that aculture is good onlyif it fits the Fitindustry’s or the Perspectivefirm’s strategy.Organizational characteristics thatmay affect culture  Customer requirements  Competitive environment  Societal expectations
    9. 9. An organizational culture that encourages confidence and risk taking among employees, Adaptive has leadership that Perspective produces change, and focuses on the changing needs of customers Adaptive Nonadaptive Most managers care Most managers care Core about customers, about themselves, stockholders, and their work group, or Values employees an associated product Managers pay close Managers tend toCommon attention to all behave somewhatBehavior their constituencies, insularly, politically, esp. customers and bureaucratically Reprinted with the permission of The Free Press, a Division of Simon & Schuster, Inc. from Corporate Culture and Performance by John P. Kotter and James L Heskett. Copyright © 1992 by Kotter Associates, Inc. and James L. Heskett.
    10. 10. 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
    11. 11. Organizational SocializationThe process by whichnewcomers aretransformed from outsidersto participating, effectivemembers of theorganization
    12. 12. 1. Anticipatory Realism Congruence Socialization Job demands 2. Encounter • Task • Role • Interpersonal 3. Change and Acquisition Mastery Outcomes of Socialization Performance Satisfaction Stages of Mutual influence Socialization Low levels of distressFrom “An Ethical Weather Repart: Assessing the Organizations Ethical Climate” by John B. Cullen, et Intent to remainal. In Organizational Dynamics, Autumn 1989. Copyright © 1989 American Management AssociationInternational. Reprinted by permission of American Management Association International, New York, N.Y.All rights reserved. Http://www.amanet. Org.
    13. 13. 1. Anticipatory Socialization – first socialization stage—encompasses all of the learning that takes place prior to the newcomer’s first day on the job2. Encounter – the second socialization stage—the newcomer learns the tasks associated with the job, clarifies roles, and establishes new relationships at work3. Change and Acquisition – the third socialization stage—the newcomer begins to master the demands of the job
    14. 14. Socialization as Cultural CommunicationCore 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
    15. 15. Assessing Organizational Culture• Organizational Culture Inventory focuses on behaviors that help employees fit into the organization and 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
    16. 16. 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
    17. 17. Hiring and Removing socializing Culture members who members who reject the fit in with the new culture4 new culture 5 Cultural Changing communication behavior 1 3 ExaminingInterventions for justifications Changing for changed Organizational behavior Culture 2 Reprinted with permission from Vijay Sathe “How to Decipher & Change Corporate Culture,” Copyright © 1985 Jossey-Bass Inc, Reprinted by permission Of Jossey-Bass, Inc., a subsidiary of John Wiley & Sons, Inc..
    18. 18. Cultural Modifications in the Current Business EnvironmentSupport for a global Empowerment ofview of business employees to excel in product and service quality Reinforcement of ethical behavior
    19. 19. 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
    20. 20. 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
    21. 21. Empowerment ofemployees to excel inproduct and servicequality• 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
    22. 22. Group Activity• How would you go about changing the culture of a public sector bank that has been taken over by a private sector bank
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