Organization structure

After studying this chapter, you should be able to: 1. Define organizational culture and describe its common characteristics. 2. Compare the functional and dysfunctional effects of organizational culture on people and the organization. 3. Explain the factors that create and sustain an organization’s culture. 4. Show how culture is transmitted to employees. 5. Demonstrate how an ethical culture and a positive culture can be created. 6. Show how national culture may affect the way organizational culture is transported to a different country. Copyright ©2010 Pearson Education, Inc. Publishing as Prentice Hall 15-2

Organizational Culture A system of shared meaning held by members that distinguishes the organization from other organizations • Composed of seven key characteristics Copyright ©2010 Pearson Education, Inc. Publishing as Prentice Hall 15-3

Seven Characteristics of Organizational Culture 1. Innovation and Risk Taking 2. Attention to Detail 3. Outcome Orientation 4. People Orientation 5. Team Orientation 6. Aggressiveness 7. Stability Copyright ©2010 Pearson Education, Inc. Publishing as Prentice Hall 15-4

Culture Is a Descriptive Term Culture Job Satisfaction • Organizational culture is • Measures affective concerned with how responses to the work employees perceive an environment: concerned organization’s culture, not with how employees feel whether or not they like it about the organization • Descriptive • Evaluative Copyright ©2010 Pearson Education, Inc. Publishing as Prentice Hall 15-5

Do Organizations Have Uniform Cultures? • The dominant culture expresses the core values that are shared by a majority of the organization’s members • Subcultures tend to develop in large organizations to reflect common problems, situations, or experiences of members • Subcultures mirror the dominant culture but may add to or modify the core values Copyright ©2010 Pearson Education, Inc. Publishing as Prentice Hall 15-6

Strong Cultures • In a strong culture, the organization’s core values are both intensely held and widely shared • Strong cultures will:  Have great influence on the behavior of its members  Increase cohesiveness  Result in lower employee turnover Copyright ©2010 Pearson Education, Inc. Publishing as Prentice Hall 15-7

Culture Versus Formalization • Both seek predictability, orderliness, and consistency • Culture controls by increasing behavioral consistency • Formalization controls through policies and written documentation • Strong cultures can be a substitute for formalization Copyright ©2010 Pearson Education, Inc. Publishing as Prentice Hall 15-8

Culture’s Five Basic Functions • Defines Boundaries • Conveys a Sense of Identity • Generates Commitment Beyond Oneself • Enhances Social Stability • Sense-making and Control Mechanism Copyright ©2010 Pearson Education, Inc. Publishing as Prentice Hall 15-9

Culture as a Liability • Barrier to Change  Culture is slow to change – even in a dynamic environment • Barrier to Diversity  Culture seeks to minimize diversity  Can embed prevalent bias and prejudice • Barrier to Acquisitions and Mergers  Most mergers fail due to cultural incompatibility Copyright ©2010 Pearson Education, Inc. Publishing as Prentice Hall 15-10

Creating Culture • Ultimate source of an organization’s culture is its founders • Founders create culture in three ways:  By hiring and keeping those who think and feel the same way they do  Indoctrinating and socializing those employees to their way of thinking and feeling  Acting as a role model and encouraging employees to identify with them Copyright ©2010 Pearson Education, Inc. Publishing as Prentice Hall 15-11

Keeping a Culture Alive • Selection – seek out those who fit in • Top Management – establish norms of behavior by their actions • Socialization – help new employees adapt to the existing culture Copyright ©2010 Pearson Education, Inc. Publishing as Prentice Hall 15-12

A Socialization Model • Pre-arrival –initial knowledge about the organization and own unique ideas • Encounter – exposed to the organization • Metamorphosis – member changed to fit within the organization Copyright ©2010 Pearson Education, Inc. Publishing as Prentice Hall 15-13

Dimensions of Socialization Programs Intense Programs Moderate Programs • Formal – new workers • Informal – new workers separated for training immediately put to work • Collective – group basis • Individual – one-on-one • Fixed – planned activities • Variable – no timetables • Serial – role models used • Random – on your own • Divestiture – strip away • Investiture – accepts and characteristics to build up confirms existing new ones characteristics Copyright ©2010 Pearson Education, Inc. Publishing as Prentice Hall 15-14

How Organization Cultures Form Success in employee socialization depends on management’s selection of socialization method and the closeness of new employees’ values to those of the organization Copyright ©2010 Pearson Education, Inc. Publishing as Prentice Hall 15-15

How Employees Learn Culture Culture is transmitted to employees through:  Stories – provide explanations  Rituals – reinforce key values  Material Symbols – convey importance  Language – identify and segregate members Copyright ©2010 Pearson Education, Inc. Publishing as Prentice Hall 15-16

Creating an Ethical Organizational Culture A strong culture with high risk tolerance, low-to-moderate aggressiveness, and focuses on means as well as outcomes is most likely to shape high ethical standards  Managers must be visible role models  Communicate ethical expectations  Provide ethical training  Visibly reward ethical acts and punish unethical ones  Provide protective mechanisms Copyright ©2010 Pearson Education, Inc. Publishing as Prentice Hall 15-17

Creating a Positive Organizational Culture A positive culture is one that emphasizes the following: • Building on Employee Strengths • Rewarding More Than Punishing • Emphasizing Vitality and Growth of the Employee Copyright ©2010 Pearson Education, Inc. Publishing as Prentice Hall 15-18

Global Implications National and Organizational Cultures: • Organizations exist in a global context • Must be aware of local and national cultures Suggestions and Observations: • Organizations heavily dependent on foreign markets and labor • National culture does influence organizational culture • All managers must be culturally sensitive Copyright ©2010 Pearson Education, Inc. Publishing as Prentice Hall 15-19

Implications for Managers • Create the culture you want when the organization is small and new • If established culture needs to be changed, expect it to take years Copyright ©2010 Pearson Education, Inc. Publishing as Prentice Hall 15-20

Keep in Mind… • Organizational culture is concerned with how employees perceive the culture, not whether or not they like it • Ethical and positive organizational cultures can be created – methods differ • National culture influences organizational culture Copyright ©2010 Pearson Education, Inc. Publishing as Prentice Hall 15-21

Summary 1. Defined organizational culture and described its common characteristics. 2. Compared the functional and dysfunctional effects of organizational culture on people and the organization. 3. Explained the factors that created and sustained an organization’s culture. 4. Showed how culture was transmitted to employees. 5. Demonstrated how an ethical culture and a positive culture could be created. 6. Showed how national culture might affect the way organizational culture is transported to a different country. Copyright ©2010 Pearson Education, Inc. Publishing as Prentice Hall 15-22

All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted, in any form or by any means, electronic, mechanical, photocopying, recording, or otherwise, without the prior written permission of the publisher. Printed in the United States of America. Copyright ©2010 Pearson Education, Inc. Publishing as Prentice Hall 15-23

Organization structure

by Muhamad Suphian Bin Hamid on Jul 03, 2010

Accessibility

Categories

Upload Details

Usage Rights

Statistics

Organization structure — Presentation Transcript