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