Robbins eob9 inst_ppt_15

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Robbins eob9 inst_ppt_15

  1. 1. Organizational Culture Chapter 15 Essentials of Organizational Behavior, 9/e Stephen P. Robbins/Timothy A. Judge
  2. 2. After studying this chapter, you should be able to: <ul><li>Define the common characteristics making up organizational culture </li></ul><ul><li>Contrast strong and weak cultures </li></ul><ul><li>Identify the functional and dysfunctional effects of organizational culture on people </li></ul><ul><li>List the factors that maintain an organization’s culture </li></ul><ul><li>Identify and describe the phases of organizational socialization </li></ul><ul><li>Clarify how employees learn an organization’s culture </li></ul><ul><li>Explain how an ethical culture can be established </li></ul><ul><li>Characterize a customer-responsive culture </li></ul>
  3. 3. Organizational culture <ul><li>Set of key characteristics that the organization values that distinguishes the organization from other organizations </li></ul>
  4. 4. Characteristics of Organizational Culture <ul><li>Innovation and risk taking </li></ul><ul><li>Attention to detail </li></ul><ul><li>Outcome orientation </li></ul><ul><li>People orientation </li></ul><ul><li>Team orientation </li></ul><ul><li>Aggressiveness </li></ul><ul><li>Stability </li></ul>
  5. 5. Culture is a Descriptive Term <ul><li>Organizational culture is concerned with how employees perceive the seven characteristics of an organization’s culture, not whether or not they like them </li></ul>
  6. 6. Do Organizations Have Uniform Cultures? <ul><li>A dominant culture expresses the core values that are shared by a majority of the organization’s members </li></ul><ul><li>Subcultures tend to develop in large organizations to reflect common problems, situations, or experiences that members face </li></ul>
  7. 7. Strong vs. Weak Cultures <ul><li>In a strong culture, the organization’s core values are both intensely held and widely shared </li></ul><ul><li>Strong cultures will: </li></ul><ul><ul><li>Have great influence on the behavior of its members </li></ul></ul><ul><ul><li>Result in lower employee turnover </li></ul></ul>
  8. 8. Organizational Culture vs. National Culture <ul><li>National culture has a greater impact on employees than does their organization’s culture </li></ul><ul><li>Expect that organizations hire employees who are a good fit with the organization’s dominant culture even though they may not fit the national culture </li></ul>
  9. 9. Culture’s Functions <ul><li>Boundary-defining role </li></ul><ul><li>Conveys a sense of identity </li></ul><ul><li>Facilitates the generation of commitment </li></ul><ul><li>Enhances social system stability </li></ul><ul><li>Sense-making and control mechanism </li></ul>
  10. 10. Culture as a Liability <ul><li>Shared values do not agree with organization’s effectiveness </li></ul><ul><li>Dilemma of hiring a diverse workforce but wanting people to fit into a single culture </li></ul><ul><li>Cultural incompatibility in mergers and acquisitions </li></ul>
  11. 11. How a Culture Begins <ul><li>Ultimate source of an organization’s culture is its founders </li></ul><ul><li>Culture is created in three ways: </li></ul><ul><ul><li>Founders hire and keep those who think and feel the same way they do </li></ul></ul><ul><ul><li>They indoctrinate and socialize these employees to their way of thinking and feeling </li></ul></ul><ul><ul><li>Their behavior acts as a role model encouraging employees to identify with them </li></ul></ul>
  12. 12. Keeping a Culture Alive <ul><li>Selection – seek out those who would fit in </li></ul><ul><li>Top Management – Senior executives establish norms of behavior through what they say and do </li></ul><ul><li>Socialization – help new employees adapt to the culture </li></ul>
  13. 13. A Socialization Model
  14. 14. How Organization Cultures Form
  15. 15. How Employees Learn Culture <ul><li>Stories </li></ul><ul><li>Rituals </li></ul><ul><li>Material Symbols </li></ul><ul><li>Language </li></ul>
  16. 16. Managing Cultural Change <ul><li>Cultural change is most likely to take when the following conditions exist: </li></ul><ul><ul><li>Dramatic crisis exists or is created </li></ul></ul><ul><ul><li>Turnover in leadership </li></ul></ul><ul><ul><li>Young and small organization </li></ul></ul><ul><ul><li>Weak culture </li></ul></ul>
  17. 17. Creating an Ethical Organizational Culture <ul><li>Be a visible role model </li></ul><ul><li>Communicate ethical expectations </li></ul><ul><li>Provide ethical training </li></ul><ul><li>Visibly reward ethical acts and punish unethical ones </li></ul><ul><li>Provide protective mechanisms </li></ul>
  18. 18. Creating a Customer Responsive Culture <ul><li>Companies recognize this is the path to customer loyalty and long-term profitability </li></ul><ul><li>Variables that are routinely evident: </li></ul><ul><ul><li>Type of employees </li></ul></ul><ul><ul><li>Low formalization </li></ul></ul><ul><ul><li>Widespread use of empowerment </li></ul></ul><ul><ul><li>Good listening skills </li></ul></ul><ul><ul><li>Role clarity </li></ul></ul><ul><ul><li>Organizational citizenship behavior </li></ul></ul>
  19. 19. Managerial Action to Make Culture More Customer Responsive <ul><li>Selection </li></ul><ul><li>Training </li></ul><ul><li>Structural design </li></ul><ul><li>Empowerment </li></ul><ul><li>Leadership </li></ul><ul><li>Performance evaluation </li></ul><ul><li>Reward systems </li></ul>
  20. 20. Implications for Managers <ul><li>Create the culture you want when the organization is small </li></ul><ul><li>If established culture needs to be changed, expect it to take years </li></ul>
  21. 21. Summary <ul><li>Defined the common characteristics making up organizational culture </li></ul><ul><li>Contrasted strong and weak cultures </li></ul><ul><li>Identified the functional and dysfunctional effects of organizational culture on people </li></ul><ul><li>Listed the factors that maintain an organization’s culture </li></ul><ul><li>Identified and described the phases of organizational socialization </li></ul><ul><li>Clarified how employees learn an organization’s culture </li></ul><ul><li>Explained how an ethical culture can be established </li></ul><ul><li>Characterized a customer-responsive culture </li></ul>

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