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Organizational Behavior
Organizational Behavior
Organizational Behavior
Organizational Behavior
Organizational Behavior
Organizational Behavior
Organizational Behavior
Organizational Behavior
Organizational Behavior
Organizational Behavior
Organizational Behavior
Organizational Behavior
Organizational Behavior
Organizational Behavior
Organizational Behavior
Organizational Behavior
Organizational Behavior
Organizational Behavior
Organizational Behavior
Organizational Behavior
Organizational Behavior
Organizational Behavior
Organizational Behavior
Organizational Behavior
Organizational Behavior
Organizational Behavior
Organizational Behavior
Organizational Behavior
Organizational Behavior
Organizational Behavior
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Organizational Behavior

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  • 1. OrganizationalCultureMcShane/Von Glinow OB 6e © 2013 The McGraw-Hill Companies, Inc. All rights reserved1Koichi Tachiya
  • 2. Facebook’s OrganizationalCultureFacebook has been able tomaintain a strong corporateculture even as it expandsglobally. ―Maintaining culture isone of the top priorities wehave as a company,‖ saysSarah Smith (shown in thisphoto), head of Facebook’soperations in Austin, Texas.McShane/Von Glinow OB 6e © 2013 The McGraw-Hill Companies, Inc. All rights reserved2
  • 3. Organizational Culture Defined The basic pattern of sharedvalues and assumptionsshared within theorganization. Defines what is importantand unimportant. Company’s DNA—invisible,yet powerful template thatshapes employee behaviorMcShane/Von Glinow OB 6e © 2013 The McGraw-Hill Companies, Inc. All rights reserved3
  • 4. Elements ofOrganizational CultureMcShane/Von Glinow OB 6e © 2013 The McGraw-Hill Companies, Inc. All rights reserved4OrganizationalcultureArtifacts oforganizationalculture
  • 5. Content of OrganizationalCulture The relative ordering of values.• A few dominant values• Example: Facebook – creative, proactive, risk-oriented Problems with measuring org culture• Oversimplifies diversity of possible values• Ignore shared assumptions• Adopts an ―integration‖ perspective An organization’s culture is fuzzy:• Diverse subcultures (―fragmentation‖)• Values exist within individuals, not work unitsMcShane/Von Glinow OB 6e © 2013 The McGraw-Hill Companies, Inc. All rights reserved5
  • 6. Organizational Culture ProfileOrg CultureDimensions Dimension CharacteristicsInnovationExperimenting, opportunity seeking, risk taking, fewrules, low cautiousnessStability Predictability, security, rule-orientedRespect for people Fairness, toleranceOutcomeorientation Action oriented, high expectations, results orientedAttention to detail Precise, analyticTeam orientation Collaboration, people-orientedAggressiveness Competitive, low emphasis on social responsibilityMcShane/Von Glinow OB 6e © 2013 The McGraw-Hill Companies, Inc. All rights reserved6Source: O’Reilly et al (1991)
  • 7. Organizational Subcultures Dominant culture -- most widely sharedvalues and assumptions Subcultures• Located throughout the organization• Can enhance or oppose (countercultures) firm’sdominant culture Two functions of countercultures:• provide surveillance and critique, ethics• source of emerging valuesMcShane/Von Glinow OB 6e © 2013 The McGraw-Hill Companies, Inc. All rights reserved7
  • 8. Artifacts of OrganizationalCulture• Observable symbols and signsof culture• Physical structures,ceremonies, language, stories• Maintain and transmitorganization’s culture• Need many artifacts toaccurately decipher acompany’s cultureMcShane/Von Glinow OB 6e © 2013 The McGraw-Hill Companies, Inc. All rights reserved8
  • 9. Artifacts: Stories and Legends Social prescriptions of desired (ordysfunctional) behavior Provides a realistic human side toexpectations Most effective stories and legends:• Describe real people• Assumed to be true• Known throughout the organization• Are prescriptiveMcShane/Von Glinow OB 6e © 2013 The McGraw-Hill Companies, Inc. All rights reserved9
  • 10. Artifacts: Rituals andCeremonies Rituals• programmed routines• (e.g.., how visitors are greeted) Ceremonies• planned activities for an audience• (e.g.., award ceremonies)McShane/Von Glinow OB 6e © 2013 The McGraw-Hill Companies, Inc. All rights reserved10
  • 11. Artifacts: OrganizationalLanguage Words used to address people, describecustomers, etc. Leaders use phrases and special vocabularyas cultural symbols Language also found in subculturesMcShane/Von Glinow OB 6e © 2013 The McGraw-Hill Companies, Inc. All rights reserved11
  • 12. Artifacts: PhysicalStructures/Symbols•Building structure -- may shape and reflect culture•Office design conveys cultural meaning• Furniture, office size, wall hangingsMcShane/Von Glinow OB 6e © 2013 The McGraw-Hill Companies, Inc. All rights reserved12Courtesy of Microsoft Corp.
  • 13. The Zappos Family - How They WorkMcShane/Von Glinow OB 6e © 2013 The McGraw-Hill Companies, Inc. All rights reserved13
  • 14. Organizational Culture Strength How widely and deeply employees hold thecompany’s dominant values andassumptions Strong cultures exist when:• most employees understand/embrace thedominant values• values and assumptions are institutionalizedthrough well-established artifacts• culture is long lasting -- often traced back tofounderMcShane/Von Glinow OB 6e © 2013 The McGraw-Hill Companies, Inc. All rights reserved14
  • 15. Functions of Strong CorporateCulturesMcShane/Von Glinow OB 6e © 2013 The McGraw-Hill Companies, Inc. All rights reserved15Functions ofStrong Cultures• Control system• Social glue• Sense-makingOrganizationalOutcomes• Org performance• Employee well-beingCulture strengthadvantages depend on:• Environment fit• Not cult-like• Adaptive culture
  • 16. Contingencies ofOrganizational Culture &Performance Organizational culture strength moderatelypredicts organizational performance Need to consider contingencies:1. Ensure culture-environment fit2. Avoid corporate ―cult‖ strength3. Create an adaptive cultureMcShane/Von Glinow OB 6e © 2013 The McGraw-Hill Companies, Inc. All rights reserved16
  • 17. Organizational CultureAssimilation in the Southwest--AirTran MergerOrganizational culture assimilation practices helpedAirTran Airways employees understand and embrace theSouthwest Airlines culture, known as the ―SouthwestWay.‖ Southwest’s success and its popular cultureassisted this assimilation process.McShane/Von Glinow OB 6e © 2013 The McGraw-Hill Companies, Inc. All rights reserved17
  • 18. Merging Cultures: BiculturalAudit Part of due diligence in merger Minimizes cultural collision by diagnosing companies Three steps in bicultural audit:1. Identify cultural artifacts2. Analyze data for cultural conflict/compatibility3. Identify strategies and action plans to bridge culturesMcShane/Von Glinow OB 6e © 2013 The McGraw-Hill Companies, Inc. All rights reserved18
  • 19. Merging OrganizationalCulturesMcShane/Von Glinow OB 6e © 2013 The McGraw-Hill Companies, Inc. All rights reserved19AssimilationDeculturationAcquired company embraces acquiringfirm’s cultural valuesAcquiring firm imposes its culture onunwilling acquired firmIntegrationCultures combined into a new compositecultureSeparationMerging companies remain separate withtheir own culture
  • 20. Changing/StrengtheningOrganizational CultureMcShane/Von Glinow OB 6e © 2013 The McGraw-Hill Companies, Inc. All rights reserved20
  • 21. Changing/StrengtheningOrganizational Culture Actions of Founders/Leaders• Org culture sometimes reflects the founder’spersonality• Transformational leaders can reshape culture-- organizational change practices Aligning Artifacts• Artifacts keep culture in place• e.g., create memorable events,communicating stories, transferringculture carriersMcShane/Von Glinow OB 6e © 2013 The McGraw-Hill Companies, Inc. All rights reserved21
  • 22. Changing/StrengtheningOrganizational Culture Introducing Culturally ConsistentRewards• Rewards are powerful artifacts – reinforceculturally-consistent behavior Attracting, Selecting, SocializingEmployees• Attraction-selection-attrition theory• Socialization practicesMcShane/Von Glinow OB 6e © 2013 The McGraw-Hill Companies, Inc. All rights reserved22
  • 23. Attraction-Selection-AttritionTheory Organizations become more homogeneous(stronger culture) through:• Attraction -- applicants self-select and weed outcompanies based on compatible values• Selection -- applicants selected based on valuescongruent with organization’s culture• Attrition -- employees quit or are forced out whentheir values oppose company valuesMcShane/Von Glinow OB 6e © 2013 The McGraw-Hill Companies, Inc. All rights reserved23
  • 24. Lindblad’s ShipshapeSocializationAs part of its socialization process, adventure cruisecompany Lindblad Expeditions shows applicants a videoprogram with a realistic preview of what it’s like to workonboard.McShane/Von Glinow OB 6e © 2013 The McGraw-Hill Companies, Inc. All rights reserved24
  • 25. Organizational SocializationDefinedThe process by which individuals learn the values,expected behaviors, and social knowledge necessary toassume their roles in the organization.McShane/Von Glinow OB 6e © 2013 The McGraw-Hill Companies, Inc. All rights reserved25
  • 26. Socialization: Learning &Adjustment Learning Process• Newcomers make sense of the organization’sphysical, social, and strategic/cultural dynamics Adjustment Process• Newcomers need to adapt to their new workenvironment- New work roles- New team norms- Newcomers with diverse experience adjust betterMcShane/Von Glinow OB 6e © 2013 The McGraw-Hill Companies, Inc. All rights reserved26
  • 27. Stages of SocializationMcShane/Von Glinow OB 6e © 2013 The McGraw-Hill Companies, Inc. All rights reserved27RoleManagement• Insider• Changing rolesand behavior• ResolvingconflictsEncounterStage• Newcomer• TestingexpectationsPre-EmploymentStage• Outsider• Gatheringinformation• Formingpsychologicalcontract
  • 28. Improving OrganizationalSocialization Realistic job preview (RJP)• A balance of positive and negative informationabout the job and work context Socialization agents• Supervisors – technical information, performancefeedback, job duties• Co-workers – ideal when accessible, role models,tolerant, and supportiveMcShane/Von Glinow OB 6e © 2013 The McGraw-Hill Companies, Inc. All rights reserved28
  • 29. Zappos Employee Fit and Work CultureMcShane/Von Glinow OB 6e © 2013 The McGraw-Hill Companies, Inc. All rights reserved29
  • 30. OrganizationalCultureMcShane/Von Glinow OB 6e © 2013 The McGraw-Hill Companies, Inc. All rights reserved30

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