UM 8 Organization Culture

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UM 8 Organization Culture

  1. 1. Bill Adams, FEA, University of Malaya Organization Culture Theory
  2. 2. Organization Culture Theory [Classics book turned to strong advocacy!]  Boomed since the early 1980s reform efforts to change organizations.  To change orgs must change the culture!  Claims that the rational model rarely works. Bill Adams, FEA, University of Malaya  Big management reform approaches (like Total Quality Management) all require changed culture.
  3. 3. Organization Culture Theory Behavior determined by ingrained values, norms, and traditions of behavior (“the way we do things”). Org cultures made by society, type of activity, personality of the founder/early leaders, past Bill Adams, FEA, University of Malaya practices – and other things. Often use “ethnography” & participant observation.
  4. 4. “Symbolic Management” [Influenced by “postmodern” philosophy & “The Social Construction of Reality”] Lots of uncertainty exits in many organizations. People use symbols as tools for reducing ambiguity. [OK, sure, symbols are important.] “The interpretation of what is happening in organi- Bill Adams, FEA, University of Malaya zations is more important than what is actually happening.”!!! “If people believe things are real, they are real in their consequences.”
  5. 5. [Schein] Organizational Culture  Culture guides our behavior.  Culture = the “personality” of a group.  Culture = “pattern of shared basic assumptions”  Ingrained, unthinking, nonnegotiable assumptions  Group has a shared history, things in common. Bill Adams, FEA, University of Malaya  Role of leaders in establishing & changing culture.  New members “socialized” into the culture.  In large organizations, may be subcultures.  Importance of learning the culture when new!
  6. 6. Observable manifestations of underlying cultural values Bill Adams, FEA, University of Malaya
  7. 7. [Schein] Describing aspects of culture (“Observables associated with culture”) Behavioral regular- Group norms Rules of the game ities (language, (implicit standards (unwritten rules for customs, rituals) and values) “getting along”) Habits of thinking Shared meanings Root metaphors/ (shared paradigms) (intra-org lingo) shared symbols Embedded skills Formal rituals Bill Adams, FEA, University of Malaya Climate (feeling & (special practices (group traditions for group atmosphere) passed along) “passages”) Espoused values Formal philosophy (announced values) (broad principles)
  8. 8. [Martin] Manifestations of Culture: “Cultural Forms” Rituals Other Content Stories Culture Bill Adams, FEA, University of Malaya Bldg., Décor, Jargon Dress Humor
  9. 9. [Ouchi “Oh’chi”] Z Organization (aka Japanese Mgt.)  Lifetime employment  Low turnover rates  Increased job commitment  Company-specific skills  Slow promotions but “wandering around” moves  Long-range staff development (& generalists) Bill Adams, FEA, University of Malaya  Use but not obsessed by quantitative analysis  Consensus decision-making & staff cohesion  Importance of warm holistic relationships  Attitude/symbols of egalitarianism and trust
  10. 10. [Ouchi “Oh’chi”] Z Organization (aka Japanese Mgt.) Disadvantages of “Type Z”: ● The “clan” can be “clanish” toward “outsiders” (xenophobic, sexist, racist!) ● Cultural conformity resists valuable innovations Bill Adams, FEA, University of Malaya ● Loss of external professionalism (inward looking)
  11. 11. McGregor’s Theory X & Theory Y Focus on employee-mgt relations; not organization. Theory X Theory Y Workers need Workers are willing to be led & like to participate Bill Adams, FEA, University of Malaya Mgt must do Mgt should allow & all thinking & facilitate worker issue orders participation in decision making
  12. 12. Bill Adams, FEA, University of Malaya SWOT Analysis
  13. 13. Appreciative Inquiry Positive reinforcement on steroids. Avoid negativity and exploit strengths. An organization is not a problem to be solved. An organization is a mystery to be embraced! Bill Adams, FEA, University of Malaya  Discover (appreciate strengths).…. Inquire  Dream (envision opportunities)…. Imagine  Design (dialog future directions). Innovate  Deliver (then do it)…………………. Implement
  14. 14. Appreciative Inquiry Example: Denver Office of Finance Saved lots of money by consolidating, downsizing, discarding an old program. Bill Adams, FEA, University of Malaya Weren’t they asking “where are we wasting money now?”
  15. 15. One typology of org cultures Rewards creativity, risk- External Focus External but stable focus, taking, innovation, rapid measureable performance responses; likes of achievement, unconventional aggressive, and styles. Adapt- competitive Mission ability Culture Culture Flexibility Stability Bill Adams, FEA, University of Malaya Consis- Clan tency Bureaucratic; Family style, Culture established flexibility not Culture procedures so bureaucratic, always followed consensus style, with lots of order cohesive group styles & discipline; cautious styles Internal Focus Denison/Mishra
  16. 16. Bill Adams, FEA, University of Malaya One typology of org cultures

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