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MBA 635 chapter 16
1.
©2013 Cengage Learning.
All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 16 ©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Organizational Culture
2.
©2013 Cengage Learning.
All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Learning Objectives ©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 1 Describe organizational culture. 2 Critically evaluate the roles of the three levels of culture. 3 Evaluate the four functions of culture within an organization. 4 Explain the relationship between organizational culture and performance. 5 Contrast the characteristics of adaptive and nonadaptive cultures. 2
3.
©2013 Cengage Learning.
All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Learning Objectives continued ©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 6 Describe five ways leaders reinforce organizational culture. 7 Describe the three stages of organizational socialization and the ways culture is communicated in each step. 8 Identify ways of assessing organizational culture. 9 Explain actions managers can take to change organizational culture. 3
4.
©2013 Cengage Learning.
All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. ^ ^ Organizational Culture Organizational culture: a pattern of basic assumptions that are considered valid and that are taught to new members as the way to perceive, think, and feel in the organization • Shared • Communicated through symbols • Passed down from generation to generation 4
5.
©2013 Cengage Learning.
All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. ^ ^ Levels of Organizational Culture Artifacts Values Assumptions 5
6.
©2013 Cengage Learning.
All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. ^ ^ 6
7.
©2013 Cengage Learning.
All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. ^ ^ Artifacts • Artifacts are symbols of culture in the physical and social work environment • The most visible and accessible level of culture • Artifacts of culture include • Personal enactment • Ceremonies and rites • Stories • Rituals • Symbols 7
8.
©2013 Cengage Learning.
All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. ^ ^ Values and Assumptions • Values are underlying beliefs about what should or should not be • Espoused values—what members say they value • Enacted values—values reflected in behavior • Assumptions are deeply held beliefs that guide behavior and tell members how to perceive and think about things • The essence of culture • Violating assumptions is unthinkable 8
9.
©2013 Cengage Learning.
All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. ^ ^ Functions of Culture Provides a sense of identity to members and increases commitment Provides a way for employees to interpret the meaning of events Reinforces the values in the organization Serves as a control mechanism for shaping behavior 9
10.
©2013 Cengage Learning.
All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. ^ ^ Culture and Performance 10 Theories about the relationship between organizational culture and performance Strong Culture Perspective Adaptive Perspective Fit Perspective
11.
©2013 Cengage Learning.
All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. ^ ^ Strong Culture Perspective • Strong culture: a culture with a consensus on the values that drive the company and with an intensity that is recognizable even to outsiders • Strong cultures outperform other organizations • Goal alignment • High level of motivation • Control without bureaucracy 11
12.
©2013 Cengage Learning.
All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. ^ ^ The Fit Perspective • A culture is good only if it fits the industry or the firm’s strategy • Useful in explaining short-term performance but not long-term performance • Fails to explain how firms can adapt to environmental change 12
13.
©2013 Cengage Learning.
All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. ^ ^ The Adaptation Perspective An adaptive culture • Encourages confidence and risk taking • Has leadership that produces change • Focuses on the changing needs of customers • Facilitates change to meet the needs of stockholders, customers, and employees 13
14.
©2013 Cengage Learning.
All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. ^ ^ 14
15.
©2013 Cengage Learning.
All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. ^ ^ Shaping and Reinforcing Culture What leaders pay attention to How leaders react to crises How leaders behave How leaders allocate rewards How leaders hire and fire 15
16.
©2013 Cengage Learning.
All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. ^ ^ Organizational Socialization • Organizational socialization: the process by which newcomers are transformed from outsiders to participating, effective members of the organization 16 Anticipatory socialization Encounter Change and acquisition
17.
©2013 Cengage Learning.
All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. ^ ^ 17
18.
©2013 Cengage Learning.
All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. ^ ^ Stages of the Socialization Process 18 1. Anticipatory socialization—newcomers bring prior learning and expectations to the job • Realism and congruence 2. Encounter—newcomers learn the tasks associated with the job, clarify their roles, and establish new relationships • Task, role, and interpersonal demands 3. Change and acquisition—newcomers begin to master the demands of the job
19.
©2013 Cengage Learning.
All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. ^ ^ Outcomes of Socialization • Good performance • High job satisfaction • Intent to stay with organization • Low levels of distress symptoms • High levels of organizational commitment • Adoption of values and norms 19
20.
©2013 Cengage Learning.
All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. ^ ^ Socialization as Cultural Communication • Companies use the socialization process to communicate messages about organizational culture • The message must reflect the underlying values of the organization • Core values are transmitted to new organization members through • Role models • Training • Observed behavior that is rewarded and punished 20
21.
©2013 Cengage Learning.
All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. ^ ^ Assessing Organizational Culture • Focuses on behaviors that help employees fit into the organization and meet expectations of coworkers • Underlying dimensions are task/people and security/satisfaction Organizational Culture Inventory • Focuses on what actually happens and on the expectations of others in the organization • Underlying dimensions are technical/human and time Kilmann-Saxton Culture-Gap Survey 21
22.
©2013 Cengage Learning.
All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. ^ ^ Triangulation • The use of multiple methods to measure organization culture 22 Obtrusive observations Self-administered questionnaires Personal interviews
23.
©2013 Cengage Learning.
All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. ^ ^ Changing Organizational Culture • Changing an organization’s culture is feasible but difficult • Assumptions—the deepest level of culture— are often unconscious • Culture is deeply ingrained and behavioral norms and rewards are well learned 23
24.
©2013 Cengage Learning.
All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. ^ ^ Five Actions to Change Culture 1. Change behavior in the organization 2. Examine the justifications for the changed behavior 3. Send consistent messages about the new values and beliefs 4. Review selection strategies to reflect the new culture 5. Identify individuals who resist the culture change 24
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©2013 Cengage Learning.
All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. ^ ^ Three Cultural Modifications for Today’s Environment Support for a global view of business Reinforcement of ethical behavior Empowerment of employees to excel in product and service quality 25
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©2013 Cengage Learning.
All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. ^ ^ Creating a Global Culture • Create a clear and simple mission statement • Create systems that ensure effective information flow • Create “matrix minds” among managers • Develop global career paths • Use cultural differences as a major asset • Implement worldwide management education and team development programs 26
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©2013 Cengage Learning.
All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. ^ ^ Developing an Ethical Culture • Model ethical behavior • Discuss ethical issues openly • Establish trust • Communicate boundaries of ethical conduct • Select employees who support an ethical culture • Reward ethical behavior • Punish unethical behavior 27
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All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. ^ ^ Developing a Culture of Empowerment and Quality • Unleash employees’ creativity and productivity • Eliminate traditional hierarchical notions of power • Involve employees in decision making • Remove obstacles to performance • Communicate the value of product and service quality 28
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©2013 Cengage Learning.
All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. ^ ^ ^ Chapter 16: Reflect & Discuss Charlie Wilson’s War Video Clip • This chapter described organizational culture as having three levels of visibility. Artifacts are at the first level and are the easiest to see. Which artifacts did you observe in this sequence? • Values appear at the next level of organizational culture. You can infer a culture’s values from the behavior of organizational members. Which values appear in this sequence? • Organizational members will unconsciously behave according to an organizational culture’s assumptions. You also can infer these from observed behavior. Which assumptions appear in this sequence? 29