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Social System and 
Organizational 
Culture
Social System 
• is a “complex” set of human relationships 
interacting in many ways
Understanding a Social System 
• A social system is a complex set of 
human relationships interacting in many 
ways. 
• Within a single organization, the social 
system includes all the people in it and 
their relationships to one another and to 
the outside world.
Why Complex? 
1. Behaviour of one affects the behaviour of 
others 
2. It is an “open system”
Social Equilibrium 
• A system is said to be in social 
equilibrium when its interdependent 
parts are in dynamic working balance. 
• Equilibrium is a dynamic concept, not a 
static one. Despite constant change and 
movement in every organization, the 
system’s working balance can still be 
retained.
Social Equilibrium/Disequilibrium 
Equilibrium 
• when there is a 
dynamic working 
balance among its 
interdependent parts 
Disequilibrium 
• When the 
interdependent parts 
system are working 
against each other
Psychological and Economic 
Contracts 
• ECONOMIC CONTRACT- where time, talent, energy 
are exchanged for wages, hours and reasonable 
working conditions. 
• PSYCHOLOGICAL CONTRACT –the conditions of each 
employee’s psychological involvement-both 
contributions and expectations- with the social 
system
The Result of the Psychological Contract & 
The Economic Contract 
Psychological 
Contract 
Economic 
Contract 
Employer: 
• Expected Gains 
• Rewards offered 
Employee: 
If expectations are met: 
 Job satisfaction 
 High performance 
 Loyalty 
If not: 
The opposite 
Employer: 
If expectations are met: 
• Employee retention 
• Possible promotion 
If not: 
 Corrective 
Action;discipline 
 Possible separation 
Employee: 
• Expected Gains 
• Intended 
Contributions
Psychological contract builds upon the 
concept of “exchange theory’ 
Whenever a continuing relationship exists between two 
parties, each person regularly examines the rewards 
and costs of that interaction. In order to remain 
positively attracted to the relationship, both parties 
must believe that a net positive ratio (rewards to costs) 
exists from their perspective.
Social Culture
Social Culture 
An environment of human-created 
beliefs, customs, knowledge and 
practices 
• SOCIAL- is the behaviour of people when they 
act in accordance with the expectations of 
others 
• CULTURE-is the conventional behaviour of her 
society and it influences all her actions even 
though it seldom enters her conscious thoughts
Culture differences 
Some of the ways in which culture differ 
includes: 
• Patterns of decision making 
• Respect for authority 
• Treatment for females 
• Accepted leadership styles 
**Manager’s must know
Cultural Diversity
Cultural Diversity 
Job related- 
(organizationally created) 
• Types of work 
• Rank 
• Physical proximity to 
one another 
Non job related- 
(arise primarily from individual’s 
personal background) 
• Ethnicity 
• Culture 
• Socioeconomic 
• Sex 
• race
Culture Diversity 
• Differences need to be recognized, acknowledged, 
appreciated, and used to collective advantage. 
*** 
• Culture adaptable 
• Culture dependent
• This cultural diversity or rich variety of 
differences among people at work, raises the 
issue of fair treatment for workers who are 
not in positions of authority. 
• Problems may persist because of a key 
difference in this context between 
Discrimination And prejudice.
• Discrimination is generally exhibited as an 
action, whereas prejudice is an attitude. 
• Either may exist without the other. The law 
focuses on an employer’s actions, not feelings. 
• If actions lead to what is legally determined 
to be results, such actions are unlawful 
regardless of the employer’s alleged good 
intentions.
Prejudice and Discrimination 
• Prejudice is a system of negative 
beliefs, feelings, and action-orientations 
regarding a certain 
group or groups of people. 
18
Prejudice and Discrimination 
Prejudice- means “prejudgment”, and 
unjustifiable and usually negative attitude 
toward a group--often a different cultural, 
ethnic or gender group. It is a mixture of 
beliefs (overgeneralized - stereotypes), 
emotions (hostility, envy, or fear), and 
predispositions to action (to discriminate). 
19
Prejudice and Discrimination 
Psychology of Prejudice 
• The psychology of prejudice examines the 
subjective state of individuals, noting three 
levels of prejudice: 
– Cognitive 
– Emotional 
– Action-orientation 
• Some possible causes are self-justification, 
personality, and frustration aggression 
20
Prejudice and Discrimination 
Psychology of Prejudice 
• Cognitive- person’s beliefs and perceptions of 
group as threatening/non-threatening, inferior/ 
equal, seclusive/intrusive, impulse gratifying, 
acquisitive, or possessing positive or negative 
characteristics 
• Emotional - feelings that a minority group arouses 
in an individual 
• Action-orientation - positive or negative 
predisposition to engage in discriminatory behavior. 
21
Prejudice and Discrimination 
Psychology of Prejudice 
• Self-Justification- denigrating a person or group to justify 
maltreatment of them, leading to prejudice and 
discrimination against members of another group 
• Authoritarian personality - harsh parental discipline, 
child tends to be insecure and nurture much latent hostility 
against the parent. As an adult, may demonstrate displaced 
aggression against a powerless group to compensate for their 
feelings of insecurity and fear. 
• Frustration - result of relative deprivation in which 
expectations remain unsatisfied 
22
23 
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Prejudice and Discrimination 
Sociology of Prejudice 
• The sociology of prejudice examines the 
objective conditions of society as social forces 
behind prejudiced attitudes. 
• Some possible causes are-- 
– Socializations 
– Competition 
– Conformity to social norms 
24
Prejudice and Discrimination 
Stereotype 
• A stereotype is an overcomplicated 
generalization by which we attribute certain 
traits or characteristics to any person in a 
group without regard to individuals 
differences. 
• Once established, stereotypes are difficult to 
eradicate, as several studies have shown. 
25
Prejudice and Discrimination 
Ethnophaulisms 
• Ethnophaulisms are derogatory words or 
expressions used to describe racial or ethnic 
groups. 
• Ethnic humor is often at the expense of a 
particular group, but may also serve to strengthen 
group cohesiveness, dissociate oneself from 
stereotypes of one’s group, or affirm oneself by 
pointing out the absurdity of one’s predicaments.. 
26
Prejudice and Discrimination 
Social Prejudice 
• Greater interaction and education do not 
necessarily reduce the level of prejudice in a 
society. 
• Use of cooperative learning technique in a 
classroom setting has demonstrated an 
effective means of promoting better 
intergroup understanding and self-esteem 
27
Prejudice and Discrimination 
• Discrimination is an action or practice of 
differential and unequal treatment of other 
groups of people, usually along racial, 
religious, or ethnic levels. 
28
Prejudice and Discrimination 
• Like prejudice, 
discrimination also 
exists at different 
levels of intensity: 
 Verbal expression 
 Avoidance 
 Exclusion 
 Physical abuse 
 Extermination 
29
Social Culture Values
Social Culture Values 
Work ethics 
• Views work as very 
important thing in life 
• Views work as a desirable 
goal 
• Likes work and is satisfied 
with it 
Social Responsibility 
• Is the recognition that 
organizations have significant 
influence on the social system 
and that influence must be 
properly considered and 
balanced in all organizational 
actions.
Work Ethics Declination 
1. The proportion of 
employees having 
strong work ethic 
varies sharply among 
sample groups 
2. The general level of the 
work ethic has declined 
gradually over many 
decades.
Work Ethic 
The importance of developing 
a strong work ethic and how 
the work ethic you develop will 
impact your future as an 
employee.
What is Work Ethic? 
The Definition: 
a standard of conduct 
and values for job 
performance
Expectations 
for Teachers 
What does a 
school head 
want? 
What are the traits of a 
winning teacher?
Top 10 Work Ethics 
 Attendance 
 Character 
 Team Work 
 Appearance 
 Attitude 
 Productivity 
 Organizational Skills 
 Communication 
 Cooperation 
 Respect
Role 
What is a role?
Role 
• is a pattern of expected actions 
• It reflects a person’s position with its 
accompanying 
Rights and obligations 
Power and responsibility 
Function of Role in Social System: 
“To anticipate other’s behaviour”
Roles perform by an employee 
A leader An adviser A staff person 
A Committee 
chairperson 
A specialist A golfer 
A follower A worker A club president 
A stockholder A consumer An accountant 
A spouse A subordinate A student 
A parent A musician And more!!
Things to know 
• Role Perception 
• Role Flexibility 
• Role conflict 
• Role ambiguity 
• Importance of mentorship program
Status
Status is social rank!!! 
• The amount of the recognition, honor, esteem, and 
acceptance given to a person 
Terms to remember 
 Status System/hierarchy 
 Status anxiety 
 Status deprivation
Status Relationship 
(Effect of Status) 
High status people 
– More influential 
– Received more privileges 
– More participative in group activities 
– Interact more 
– Opportunities for a better role in an organization
Status Symbols 
• are the visible, external things that attach to a 
person or workplace and serve as evidence of 
social rank 
• are most in evidence among different levels of 
managers
Typical Symbols of Status 
• Furniture 
• Interior decorations 
• Location of workplace 
• Facilities at workplace 
• Quality and newness of equipment used
Typical Symbols of Status 
• Type of clothes normally worn 
• Privileges given 
• Job title or organizational level 
• Employees 
• Degree of financial discretion 
• Organizational membership
Sources of Status 
• Person’s abilities 
• Job skills 
• Type of work also 
• Amount of pay 
• Seniority 
• Age 
• stock options
Organizational 
Culture 
What is it?
Organizational Culture 
• set of shared values and norms that 
characterise a particular organization 
• organizational culture is a set of shared mental 
assumptions that guide interpretation and 
action in organizations by defining appropriate 
behavior for various situations. (Ravasi and 
Schultz (2006) )
Importance of OC 
• Gives an organizational identity to employee 
• Provides a sense of security to its members 
• Helps newer employees interpret what goes 
on inside the organization 
• Helps stimulate employees enthusiasm for 
their tasks
Characteristics of Cultures 
• Distinctive 
• Stable 
• Implicit 
• Symbolic 
• No one type is best 
• Integrated 
• Accepted 
• A reflection of top 
management 
• Subcultures 
• Of varying strength
Communicating and Changing Culture 
• People are generally more willing to adapt and learn 
when they want to please others, gain approval and 
learn about their new work environment. 
• Socialization affects employees 
• Individualization affects the organization
Four Combinations of Socialization and 
Individualization 
Conformity 
Creative 
Individualism 
Rebellion 
Isolation 
High 
High 
Low 
Low Individualization 
(Impact of employee on organizational 
culture deviation from norms) 
Socialization 
(Impact of organizational 
culture on employee 
acceptance of norms)
Synthesis 
“Life is a series of natural and spontaneous 
changes. Don't resist them; that only creates 
sorrow. Let reality be reality. Let things flow 
naturally forward in whatever way they like.” 
Lao Tzu

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Social Systems, Organizational Culture and Values

  • 1. Social System and Organizational Culture
  • 2. Social System • is a “complex” set of human relationships interacting in many ways
  • 3. Understanding a Social System • A social system is a complex set of human relationships interacting in many ways. • Within a single organization, the social system includes all the people in it and their relationships to one another and to the outside world.
  • 4. Why Complex? 1. Behaviour of one affects the behaviour of others 2. It is an “open system”
  • 5. Social Equilibrium • A system is said to be in social equilibrium when its interdependent parts are in dynamic working balance. • Equilibrium is a dynamic concept, not a static one. Despite constant change and movement in every organization, the system’s working balance can still be retained.
  • 6. Social Equilibrium/Disequilibrium Equilibrium • when there is a dynamic working balance among its interdependent parts Disequilibrium • When the interdependent parts system are working against each other
  • 7. Psychological and Economic Contracts • ECONOMIC CONTRACT- where time, talent, energy are exchanged for wages, hours and reasonable working conditions. • PSYCHOLOGICAL CONTRACT –the conditions of each employee’s psychological involvement-both contributions and expectations- with the social system
  • 8. The Result of the Psychological Contract & The Economic Contract Psychological Contract Economic Contract Employer: • Expected Gains • Rewards offered Employee: If expectations are met:  Job satisfaction  High performance  Loyalty If not: The opposite Employer: If expectations are met: • Employee retention • Possible promotion If not:  Corrective Action;discipline  Possible separation Employee: • Expected Gains • Intended Contributions
  • 9. Psychological contract builds upon the concept of “exchange theory’ Whenever a continuing relationship exists between two parties, each person regularly examines the rewards and costs of that interaction. In order to remain positively attracted to the relationship, both parties must believe that a net positive ratio (rewards to costs) exists from their perspective.
  • 11. Social Culture An environment of human-created beliefs, customs, knowledge and practices • SOCIAL- is the behaviour of people when they act in accordance with the expectations of others • CULTURE-is the conventional behaviour of her society and it influences all her actions even though it seldom enters her conscious thoughts
  • 12. Culture differences Some of the ways in which culture differ includes: • Patterns of decision making • Respect for authority • Treatment for females • Accepted leadership styles **Manager’s must know
  • 14. Cultural Diversity Job related- (organizationally created) • Types of work • Rank • Physical proximity to one another Non job related- (arise primarily from individual’s personal background) • Ethnicity • Culture • Socioeconomic • Sex • race
  • 15. Culture Diversity • Differences need to be recognized, acknowledged, appreciated, and used to collective advantage. *** • Culture adaptable • Culture dependent
  • 16. • This cultural diversity or rich variety of differences among people at work, raises the issue of fair treatment for workers who are not in positions of authority. • Problems may persist because of a key difference in this context between Discrimination And prejudice.
  • 17. • Discrimination is generally exhibited as an action, whereas prejudice is an attitude. • Either may exist without the other. The law focuses on an employer’s actions, not feelings. • If actions lead to what is legally determined to be results, such actions are unlawful regardless of the employer’s alleged good intentions.
  • 18. Prejudice and Discrimination • Prejudice is a system of negative beliefs, feelings, and action-orientations regarding a certain group or groups of people. 18
  • 19. Prejudice and Discrimination Prejudice- means “prejudgment”, and unjustifiable and usually negative attitude toward a group--often a different cultural, ethnic or gender group. It is a mixture of beliefs (overgeneralized - stereotypes), emotions (hostility, envy, or fear), and predispositions to action (to discriminate). 19
  • 20. Prejudice and Discrimination Psychology of Prejudice • The psychology of prejudice examines the subjective state of individuals, noting three levels of prejudice: – Cognitive – Emotional – Action-orientation • Some possible causes are self-justification, personality, and frustration aggression 20
  • 21. Prejudice and Discrimination Psychology of Prejudice • Cognitive- person’s beliefs and perceptions of group as threatening/non-threatening, inferior/ equal, seclusive/intrusive, impulse gratifying, acquisitive, or possessing positive or negative characteristics • Emotional - feelings that a minority group arouses in an individual • Action-orientation - positive or negative predisposition to engage in discriminatory behavior. 21
  • 22. Prejudice and Discrimination Psychology of Prejudice • Self-Justification- denigrating a person or group to justify maltreatment of them, leading to prejudice and discrimination against members of another group • Authoritarian personality - harsh parental discipline, child tends to be insecure and nurture much latent hostility against the parent. As an adult, may demonstrate displaced aggression against a powerless group to compensate for their feelings of insecurity and fear. • Frustration - result of relative deprivation in which expectations remain unsatisfied 22
  • 23. 23 Qu ic k Time™ a nd a TIFF (Pac k Bits ) dec omp re s s o r a re n ee ded QQQQQQuuuuuuiiiiiicccccc kkkkkkTTTTTTiiiiiimmmmmmeeeeeeaaaaaannnnnndddddd aaaaaa TTTTTTIIIIIIFFFFFFFFFFFF ((((((PPPPPPaaaaaacccccc kkkkkkBBBBBBiiiiiittttttssssss)))))) ddddddeeeeeecccccc oooooommmmmmpppppprrrrrreeeeeessssssssssssoooooorrrrrr aaaaaarrrrrreeeeee nnnnnneeeeeeeeeeeeddddddeeeeeedddddd tttttttooooooo ssssssseeeeeeeeeeeeee ttttttthhhhhhhiiiiiiisssssss pppppppiiiiiiiccccccctttttttuuuuuuurrrrrrreeeeeee.......
  • 24. Prejudice and Discrimination Sociology of Prejudice • The sociology of prejudice examines the objective conditions of society as social forces behind prejudiced attitudes. • Some possible causes are-- – Socializations – Competition – Conformity to social norms 24
  • 25. Prejudice and Discrimination Stereotype • A stereotype is an overcomplicated generalization by which we attribute certain traits or characteristics to any person in a group without regard to individuals differences. • Once established, stereotypes are difficult to eradicate, as several studies have shown. 25
  • 26. Prejudice and Discrimination Ethnophaulisms • Ethnophaulisms are derogatory words or expressions used to describe racial or ethnic groups. • Ethnic humor is often at the expense of a particular group, but may also serve to strengthen group cohesiveness, dissociate oneself from stereotypes of one’s group, or affirm oneself by pointing out the absurdity of one’s predicaments.. 26
  • 27. Prejudice and Discrimination Social Prejudice • Greater interaction and education do not necessarily reduce the level of prejudice in a society. • Use of cooperative learning technique in a classroom setting has demonstrated an effective means of promoting better intergroup understanding and self-esteem 27
  • 28. Prejudice and Discrimination • Discrimination is an action or practice of differential and unequal treatment of other groups of people, usually along racial, religious, or ethnic levels. 28
  • 29. Prejudice and Discrimination • Like prejudice, discrimination also exists at different levels of intensity:  Verbal expression  Avoidance  Exclusion  Physical abuse  Extermination 29
  • 31. Social Culture Values Work ethics • Views work as very important thing in life • Views work as a desirable goal • Likes work and is satisfied with it Social Responsibility • Is the recognition that organizations have significant influence on the social system and that influence must be properly considered and balanced in all organizational actions.
  • 32. Work Ethics Declination 1. The proportion of employees having strong work ethic varies sharply among sample groups 2. The general level of the work ethic has declined gradually over many decades.
  • 33. Work Ethic The importance of developing a strong work ethic and how the work ethic you develop will impact your future as an employee.
  • 34. What is Work Ethic? The Definition: a standard of conduct and values for job performance
  • 35. Expectations for Teachers What does a school head want? What are the traits of a winning teacher?
  • 36. Top 10 Work Ethics  Attendance  Character  Team Work  Appearance  Attitude  Productivity  Organizational Skills  Communication  Cooperation  Respect
  • 37. Role What is a role?
  • 38. Role • is a pattern of expected actions • It reflects a person’s position with its accompanying Rights and obligations Power and responsibility Function of Role in Social System: “To anticipate other’s behaviour”
  • 39. Roles perform by an employee A leader An adviser A staff person A Committee chairperson A specialist A golfer A follower A worker A club president A stockholder A consumer An accountant A spouse A subordinate A student A parent A musician And more!!
  • 40. Things to know • Role Perception • Role Flexibility • Role conflict • Role ambiguity • Importance of mentorship program
  • 42. Status is social rank!!! • The amount of the recognition, honor, esteem, and acceptance given to a person Terms to remember  Status System/hierarchy  Status anxiety  Status deprivation
  • 43. Status Relationship (Effect of Status) High status people – More influential – Received more privileges – More participative in group activities – Interact more – Opportunities for a better role in an organization
  • 44. Status Symbols • are the visible, external things that attach to a person or workplace and serve as evidence of social rank • are most in evidence among different levels of managers
  • 45. Typical Symbols of Status • Furniture • Interior decorations • Location of workplace • Facilities at workplace • Quality and newness of equipment used
  • 46. Typical Symbols of Status • Type of clothes normally worn • Privileges given • Job title or organizational level • Employees • Degree of financial discretion • Organizational membership
  • 47. Sources of Status • Person’s abilities • Job skills • Type of work also • Amount of pay • Seniority • Age • stock options
  • 49. Organizational Culture • set of shared values and norms that characterise a particular organization • organizational culture is a set of shared mental assumptions that guide interpretation and action in organizations by defining appropriate behavior for various situations. (Ravasi and Schultz (2006) )
  • 50. Importance of OC • Gives an organizational identity to employee • Provides a sense of security to its members • Helps newer employees interpret what goes on inside the organization • Helps stimulate employees enthusiasm for their tasks
  • 51. Characteristics of Cultures • Distinctive • Stable • Implicit • Symbolic • No one type is best • Integrated • Accepted • A reflection of top management • Subcultures • Of varying strength
  • 52. Communicating and Changing Culture • People are generally more willing to adapt and learn when they want to please others, gain approval and learn about their new work environment. • Socialization affects employees • Individualization affects the organization
  • 53. Four Combinations of Socialization and Individualization Conformity Creative Individualism Rebellion Isolation High High Low Low Individualization (Impact of employee on organizational culture deviation from norms) Socialization (Impact of organizational culture on employee acceptance of norms)
  • 54. Synthesis “Life is a series of natural and spontaneous changes. Don't resist them; that only creates sorrow. Let reality be reality. Let things flow naturally forward in whatever way they like.” Lao Tzu

Editor's Notes

  1. Consequently, members of a system should be aware of the nature of their environments and their impact on other members both within and outside their own social system. This social system awareness is increasingly important in the twenty-first century, as global trade and international marketplaces for a firm’s products and services vastly expand the need for organizations and their employees to anticipate and react to changes in their competitive environments.
  2. Functional and Dysfunctional Effect