<ul><li>Case questions : </li></ul><ul><li>How is the culture at SAAS evolving? Why is it evolving as it is? </li></ul><ul><li>To effect the desired cultural changes and their operational impact, what should Ray Main do? </li></ul>Case 10: SAAS Robbins Ch 10 Managing Organizational Culture The Toxic Organization Determinants of organizational culture; Functions of culture Cultural change 11 Nov 26
Emergence and Purpose of Culture Culture serves two critical functions: Internal integration to integrate members so they develop a collective identity External adaptation to help the organization meet goals and deals with outsiders by responding rapidly to customer needs, for example.
Interpreting Culture Interpreting culture requires one to make inferences based on observable symbols. Rites of Passage: facilitate the transition into new social roles Rites of enhancement: create stronger social identities and increase status Rites of renewal: reflect training and development activities that improve organization functioning Rites of integration: create common bonds and good feelings
Stories - narratives based on true events Heroes - role models. Legends - embellished with fictional details. Myths -not consistent with the facts. Symbols represent deeper values of the organization. Language - slogan, metaphor to convey special meaning
A Socialization Model Socialization Process Outcomes Turnover Commitment Productivity Metamorphosis Encounter Prearrival
Organizational Life Cycle ORGANIZATION STAGES OF DEVELOPMENT 1. Entrepreneurial Stage 2. Collectivity Stage 3. Formalization Stage 4. Elaboration Stage Crisis: Need to deal with too much red tape Crisis: Need for delegation with control Crisis: Need for leadership Creativity Provision of clear direction Addition of internal systems Development of teamwork Crisis: Need for revitalization Decline Continued maturity Streamlining, small-company thinking S I Z E Large Small Sources: Adapted from Robert E. Quinn and Kim Cameron, “Organizational Life Cycles and Shifting Criteria of Effectiveness: Some Preliminary Evidence,” Management Science 29 (1983): 33-51; and Larry E. Greiner, “ Evolution and Revolution as Organizations Grow,” Harvard Business Review 50 (July-August 1972): 37-46. 8-
Weber’s Dimensions of Bureaucracy and Bases of Organizational Authority <ul><li>BUREAUCRACY </li></ul><ul><ul><li>1.Rules and procedures </li></ul></ul><ul><ul><li>2. Specialization and division of </li></ul></ul><ul><ul><li>labour </li></ul></ul><ul><ul><li>3. Hierarchy of authority </li></ul></ul><ul><ul><li>4. Technically qualified personnel </li></ul></ul><ul><ul><li>5. Separate position and incumbent </li></ul></ul><ul><ul><li>6. Written communications and records </li></ul></ul>
Organizational Control Systems Bureaucratic Control - rational-legal authority : employees’ belief in the legality of rules and the right of those elevated to positions of authority to issue commands -traditional authority : the legitimacy of the status of people exercising authority through tradition -charismatic authority
Organizational Control Systems Clan control is the use of corporate culture, shared values, commitment, traditions, trust, and beliefs to control behaviour
The Right Rites? Rites and ceremonies Rites of passage Rites of enhancement Rites of renewal Rites of integration Stories Heroes Legends Myths Symbols Language
Organizational Design and Culture <ul><li>Clan Culture </li></ul><ul><li>primary focus on the involvement and participation of the organization's members </li></ul><ul><li>Bureaucratic Culture </li></ul><ul><li>Internal focus </li></ul><ul><li>Consistency </li></ul><ul><li>Conformity </li></ul><ul><li>Collaboration </li></ul>
Culture and the Learning Organization CHARACTERISTICS -strong organizational culture -encouraging change Three values characterize an adaptive culture in a learning organization: -whole is more important than the part; boundaries between parts minimized. -Equality is a primary value. -The culture encourages risk taking, change, and improvement.
<ul><li>Employees and managers may consistently feel that they are: </li></ul><ul><li>helpless in making things better </li></ul><ul><li>not supported emotionally or professionally </li></ul><ul><li>unable to identify the causes of the discomfort and pain </li></ul><ul><li>unable to leave the situation permanently and unable to solve problems permanently </li></ul><ul><li>consistently under attack </li></ul>THE TOXIC ORGANIZATION
Ethical Values and Organizations Personal Ethics Organizational Cultural Ethics External Stakeholders Values-Based Leadership
CREATING A CULTURE-Formal Structure and Systems -ethics committee -ethics ombudsperson -whistle-blowing -code of ethics training programs
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