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Mahmood Qasim slides on organizational culture for organizational behaviour students

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Mahmood Qasim slides on organizational culture for organizational behaviour students

  1. 1. Organization Theory Historical Roots Open system Information Processing View Contingency and Ecological
  2. 2. A learning organization is the term given to a Company that facilitates the learning of its members and continuously transforms itself. Learning organizations develop as a result of the pressures facing modern organizations and enables them to remain competitive in the business environment. A learning organization has five main features; systems thinking, personal mastery, mental models, shared vision and team learning. Distinction made by Chris Argyris and his Colleagues First order Or Single - loop Second order/ Dentero Or Double - loop
  3. 3. System Thinking The idea of the learning organization developed from a body of work called System Thinking. This is a conceptual framework that allows people to study businesses as bounded objects. Learning organizations use this method of thinking When when assessing their company and have information systems that measure the performance of the organization as a whole and of its various components. Systems thinking states that all the characteristics must be apparent at once in an organization for it to be a learning organization. If some of these Characteristics are missing then the organization will fall short of its goal. However O’Keeffe believes that the characteristics of a learning organization are factors that are gradually acquired, rather than developed simultaneously.
  4. 4. Personal Mastery The commitment by an individual to the process of learning is known as personal mastery. There is a competitive advantage for an organization whose workforce can learn more quickly than the workforce of other organizations. Individual learning is acquired through staff training and development, however learning cannot be forced upon an individual who is not receptive to learning. Research shows that most learning in the workplace is incidental, rather than the product of formal training, therefore it is important to develop a culture where personal mastery is practiced in daily life. A learning organization has been described as the sum of individual learning, but there must be mechanisms for individual learning to be transferred into organizational learning.
  5. 5. Mental Models The assumptions held by individuals and organizations are called mental models. To become a learning organization, these models must be challenged. Individuals tend to espouse theories, which are what they intend to follow, and theories-in-use, which are what they actually do. Similarly, organizations tend to have ‘memories’ which preserve certain behaviors, norms and values. In creating a learning environment it is important to replace confrontational attitudes with an open culture that promotes inquiry and trust. To achieve this, the learning organization needs mechanisms for locating and assessing organizational theories of action. Unwanted values need to be discarded in a process called ‘unlearning’. Wang and Ahmed refer to this as ‘triple loop learning.’
  6. 6. Shared Vision The development of a shared vision is important in motivating the staff to learn, as it creates a common identity that provides focus and energy for learning. The most successful visions build on the individual visions of the employees at all levels of the organization, thus the creation of a shared vision can be hindered by traditional structures where the company vision is imposed from above. Therefore, learning organizations tend to have flat, decentralized organizational structure. The shared vision is often to succeed against a competitor, however Senge states that these are transitory goals and suggests that there should also be long term goals that are intrinsic within the company
  7. 7. Team Learning. The accumulation of individual Learning constitutes Team Learning. The benefit of team or shared learning is that staff grow more quickly and the problem solving capacity of the organization is improved through better access to knowledge and expertise. Learning organizations have structures that facilitate team learning with features such as boundary crossing and openness. Team learning requires individuals to engage in dialogue and discussion; therefore team members must develop open communication, shared meaning, and shared understanding. Learning organizations typically have excellent knowledge management structures, allowing creation, acquisition, dissemination, and implementation of this knowledge in the organization.
  8. 8. Distinction made by Chris Argyris and his Colleagues First order Or Single - loop Second order/ Dentero Or Double - loop
  9. 9. Single – loop Learning Learning involves improving the organization’s capacity to achieve known objectives. It is associated with routine and behavioral learning. Under single-loop, the organization is learning without significant change in its basic Assumptions. assumptions.
  10. 10. Double – loop Learning Learning reevaluates the nature of the organization’s objectives and the values and beliefs surrounding them. This type of learning involves changing the organization’s culture. Importantly, double – loop consists of the organization’s learning how to learn.
  11. 11. Peter Senge and colleagues proceeded to portray the learning organization from a system theory perspective and made the important distinction. Adaptive Learning Generative Learning
  12. 12. Adaptive Learning It is only the first stage of the learning Organization, adapting to the environment organization, Changes. Adaptive changes such as changes. Implementing TQM, Benchmarking, implementing benchmarking, Six Sigma, Customer service initiatives. six sigma, customer Service Initiatives.
  13. 13. Generative Learning It involves creativity and innovation, going beyond just adapting to change to being ahead of and anticipating change.
  14. 14. Determination Of overall direction Vision is provided by top management Nature of organizational thinking Top management decides what is to be done, and the rest of The organization acts on these ideas Formulation and Implementation of ideas Conflict resolution Leadership and motivation There is a shared vision that can emerge from many places, but top management is responsible for ensuring that this vision exists and is nurtured. Formulation and implementation of ideas take place at all levels of the organization. Organization. Each person is responsible for his or her own job responsibilities, and the focus is on developing individual developing Personnel understand their own jobs as well as the way in which their own work interrelates with and influences that of other personnel. Conflict are resolved through the use of power and hierarchical influence. Conflict are resolved through the use of collaborative learning and the integration of diverse viewpoints of personnel throughout the organization. The role of the leader Is to establish the organization’s vision, provide rewards and punishments as appropriate and maintain overall control of employee activities. The role of the leader is to build a shared vision, empower the personnel, inspire commitment, and encourage effective decision making throughout the enterprise through the use of empowerment and charismatic leadership
  15. 15. Modern Organization Design 1. Organization revolves around the process, not the task. 2. The Hierarchy is flattened. 3. Teams are used to manage everything. Horizontal 4. Customers drive performance. Organization 5. Team performance is rewarded. 6. Suppliers and customer contact is maximized. 7. All employees need to be fully informed and trained. 1. Network organization are based on cooperative, multidisciplinary teams and business networked together across the enterprise. Network Organization 2. Rather than a rigid structure, it is a modular organizational architecture in which business teams operate as a network of what we call client and server functions.
  16. 16. 1. Virtual organization requires a strong information technology platform. 2. The virtual organization is a temporary network of companies that comes together quickly to Virtual exploit fast-changing opportunities. Organization 2. Each partner contributes to the virtual organization what it is best at – its core capabilities.
  17. 17. The Contrast Between the Hierarchical and Network Organization Rather than the old inflexible hierarchical pyramid, network organization demand a flexible, spherical structure that can rotate competent, self-managing teams and other resources around a common knowledge base. Such teams, capable of quick action on the firm’s behalf both externally and internally, provide a distinct competitive advantage.
  18. 18. Network Structure
  19. 19. Traditional Hierarchical Versus the Network Organization Dimension / Characteristic Traditional Organization Network Organization Structure Hierarchical Networked Scope Internal / Closed External / Open Resource Focus Capital Human, Information State Static, Stable Dynamic, Changing Personal Focus Managers Professionals Key Drivers Reward & Punishment Commitment Directions Management Commands Self-management Basis of Action Control Empowerment to act Individual Motivation Satisfy Superiors Achieve team goals Learning Specific Skills Broader Competencies Relationships Competitive (my turf) Structure Employee Attitude Detachment (it’s a job) Structure Dominant Requirements Sound Management Structure Basis for Compensation Position in Hierarchy Accomplishment, Competence Level
  20. 20. Three Types of radical Redesign of Today’s Organization As the term implies, this means starting from just a Greenfield Redesign piece of green field or from a clean slate, breaking Completely from the classical structure and establishing A totally different design. For example: Google, Southwest Airlines This is a more usual type of redesign, whereby established Rediscovery Redesign companies such as General Electric return to a previously successful design by eliminating unproductive structural additions and modifications Companies reverting to bureaucratic procedures. In the network approach, the firm concentrates on where Network Design it can add the greatest value in the supply chain, and it outsource to upstream and/or downstream partners who can do better job. This network of the firm its upstream and downstream partners can be optimally effective and flexible. Another network approach is to require internal units of the firm to interact at Market prices – buy and sell to each other at prices equal to those that can be obtained by outsourcing partners.
  21. 21. The Organizational Culture Context Definition A cognitive framework consisting of attitudes, values, behavioral norms, and expectations shared by organization members. Characteristics 1. Innovations: the extent to which people are expected to be creative. 2. Stability: value a stable, predicted, rule-oriented environment 3. Orientation towards people: being fair, supportive, and showing respect for individual’s right. 4. Result orientation: the strength for achievement. 5. Easygoingness: extent to which atmosphere is relaxed. 6. Attention to details: concern for being analytical 7. Collaborative orientation: emphasis on working in teams as opposed to individually.
  22. 22. Dominant Culture Defined The overall culture of an organization, reflected by core values that are shared throughout the organization Dominant Culture Characteristics 1. Reflects its core values, dominant perception that are generally shared throughout the organization. 2. Core values shared by a majority of the members. 3. Dominant culture guide day-to-day behavior.
  23. 23. Subculture Defined Culture existing within parts of organizations rather than entirely through them. Members of subcultures share values in addition to the core values of their organization as a whole. Subculture Characteristics 1. Values shared by minority of the members. 2. Are results of problems or experiences that are shared by members of a department or unit. 3. These typically are distinguished with respect to either functional differences or geographic distance. 4. They are usually formed to help the member of a particular group deal with the specific day-to-day problems with which they are confronted. 5. They can weaken and undermine an organization if they are in conflict with the dominant culture .
  24. 24. Sales Group Subculture values: Honest representation of products Customer service Open to new ideas Engineering Group Subculture values: Accounting Group Subculture values: Honest representation of products Thorough product testing High quality
  25. 25. Organizational Culture Provides a sense of Identity for members Enhances commitment to the organization’s mission Clarifies and reinforces standards of behavior
  26. 26. Types of Organizational Culture Academy An organization that provides opportunities for people to master many different jobs and to move from one to the next. Coca-Cola, General Motors, IBM and P&G Baseball team People in such organizations tend to be entrepreneurs who take risks and are handsomely rewarded for their Success. Software development firms, investment banking, law, accounting. Military, Delta Airlines and United Parcel Service. These organizations are concerned with getting people to fit in and be loyal. They highly value age and experience. Club Fortress These organizations offer challenges of seeing a company turn around Those who doesn’t mind lack of job security, for them such organizations are stimulating place to work. Large Retailers
  27. 27. Formation and Maintenance of Organizational Culture Several factors contribute to the emergence and maintenance of organizational culture Company Founder Organizational Experience Internal Interaction Stories Jargons Ceremonies Organizational Experience Statements of principles
  28. 28. Why and How Does Organizational Culture Change? Composition of the Workforce Mergers and Acquisitions Planned Organizational Change
  29. 29. Questions for Presentations 1. 2. 3. 4. 5. 6. How does a learning organization differ from a traditional organization? Briefly define the horizontal, network, and virtual organization design. How does these differ form the classical design? How do they better meet the challenges of the new environment? What is meant by the term organizational culture? Define it and give some examples of its characteristics. How does a dominant culture differ form a subculture? How do organizational cultures develop? What four steps commonly occur? What kinds of events might be responsible for the changing of organizational culture? Explain why these events are likely to be so influential. How do organizations go about maintaining their cultures? What steps are involved? Describe them.
  30. 30. 7. 8. Characterize the culture of any organization with which you may be familiar by describing the core characteristics collectively valued by its members. Would you consider it an academy, club, baseball team or fortress? Suppose you are founding a new company. Describe how you might either intentionally or unintentionally affect its culture. How might your influences linger within the organization long after you have left it?

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