The document discusses the symbolic and omnipotent views of management. The symbolic view is that external forces outside a manager's control influence organizational success or failure more than the manager. The omnipotent view is that managers directly control success or failure. In reality, managers face both external constraints from the environment and internal constraints from organizational culture. The external environment includes economic, demographic, political/legal, sociocultural, technological, and global factors. Organizational culture refers to shared values, practices, and ways of doing things that influence employee behavior and distinguish the organization. Strong cultures have a strong influence on employees. Managers must understand both the external environment and organizational culture to operate effectively within the constraints they impose.
Organizational Culture and Environment -The ConstraintsFaHaD .H. NooR
Organizational culture encompasses values and behaviours that "contribute to the unique social and psychological environment of an organization."[1] According to Needle (2004),[2] organizational culture represents the collective values, beliefs and principles of organizational members and is a product of such factors as history, product, market, technology, strategy, type of employees, management style, and national culture; culture includes the organization's vision, values, norms, systems, symbols, language, assumptions, beliefs, and habits.
Business executive Bernard L. Rosauer (2013) developed what he refers to as an actionable definition of organizational culture: "Organizational culture is an emergence – an extremely complex incalculable state that results from the combination of a few simple ingredients. In "Three Bell Curves: Business Culture Decoded"[3] Rosauer outlines the three manageable ingredients he says guides the culture of any business. Ingredient #1 – Employee (focus on engagement) #2 The Work (focus on eliminating waste increasing value) waste #3 The Customer (focus on likelihood of referral). The purpose of the Three Bell Curves methodology is to bring leadership, their employees, the work and the customer together for focus without distraction, leading to an improvement in culture and brand. Reliance of the research and findings of Sirota Survey Intelligence,[4] who has been gathering employee data worldwide since 1972, the Lean Enterprise Institute,[5] Cambridge, MA, and Fred Reichheld/Bain/Satmetrix research relating to NetPromoterScore.[6]
Ravasi and Schultz (2006) wrote that organizational culture is a set of shared assumptions that guide what happens in organizations by defining appropriate behavior for various situations.[7] It is also the pattern of such collective behaviors and assumptions that are taught to new organizational members as a way of perceiving and, even, thinking and feeling. Thus, organizational culture affects the way people and groups interact with each other, with clients, and with stakeholders. In addition, organizational culture may affect how much employees identify with an organization
Traditionally, the term business commonly referred to commercial activities aimed at makinga profit or to organisations formed to make a profit. Indeed, in the past, economic theory madea fundamental assumption that profit maximisation was the basic objective of every firm. Themodern outlook, however, is different. For them, profit is only secondary. There are, moreover,
many organisations, both private and public, which do not aim at profit from their business.
In short, the definition of a business as a commercial activity to make a profit or an organisationformed to make a profit is a narrow one. Yet, to a layman, business still means industry andcommerce.
The old concept of business, confining it to commerce and private profit, has undergone aradical change. Today, business is regarded as a social institution forming an integral part of thesocial system. As Davis and Blomstorm observe, business is “social institution, performing a social mission and having a broad influence on the way people live and work together.”1 As Calkinsremarks: “It is now recognised that the direction of business is important to the public welfare,that businessmen perform a social function.”2
Thus, “viewed in a broad way, the term business typically refers to the development andprocessing of economic values in society. Normally, we use the term to apply to the private (nongovernment)portion of the economy whose primary purpose is to provide goods and services tocustomers at a price, but the lines of distinction are getting hazy as business and government overlap their functions in organisations such as the Communications, Satellite Corporation and
the Tennessee Valley Authority. In addition, business is a term applied to economic and commercial activities of institutions having other purposes, such as the business office of an opera association.
Thus, organisations which do not aim of making a profit, like the Delhi Development Authority,charitable hospitals, or other institutions, public relations organisations, government departments,etc., invest capital, price and market their products, services or ideas, manage their human
resources, and so on.According to Davis and Blomstorm, “our modern view of society is an ecological one.
Ecology is concerned with the mutual relations of human populations or systems with their
environment. It is necessary to take this broad view because the influence and involvement of
business are extensive. Business cannot isolate itself from the rest of society. Today, the whole
society is a business’s environment
Davis and Blomstorm point out that, in taking an ecological view of business in a systemrelationship with society, three ideas are significant in addition to the systems idea. The three ideas are values, viability and public visibility
Values
Business, like other social institutions, develops certain belief systems and values for whichthey stand, and these beliefs, and values are a source of institutional drive. These values deriv
Organizational Culture and Environment -The ConstraintsFaHaD .H. NooR
Organizational culture encompasses values and behaviours that "contribute to the unique social and psychological environment of an organization."[1] According to Needle (2004),[2] organizational culture represents the collective values, beliefs and principles of organizational members and is a product of such factors as history, product, market, technology, strategy, type of employees, management style, and national culture; culture includes the organization's vision, values, norms, systems, symbols, language, assumptions, beliefs, and habits.
Business executive Bernard L. Rosauer (2013) developed what he refers to as an actionable definition of organizational culture: "Organizational culture is an emergence – an extremely complex incalculable state that results from the combination of a few simple ingredients. In "Three Bell Curves: Business Culture Decoded"[3] Rosauer outlines the three manageable ingredients he says guides the culture of any business. Ingredient #1 – Employee (focus on engagement) #2 The Work (focus on eliminating waste increasing value) waste #3 The Customer (focus on likelihood of referral). The purpose of the Three Bell Curves methodology is to bring leadership, their employees, the work and the customer together for focus without distraction, leading to an improvement in culture and brand. Reliance of the research and findings of Sirota Survey Intelligence,[4] who has been gathering employee data worldwide since 1972, the Lean Enterprise Institute,[5] Cambridge, MA, and Fred Reichheld/Bain/Satmetrix research relating to NetPromoterScore.[6]
Ravasi and Schultz (2006) wrote that organizational culture is a set of shared assumptions that guide what happens in organizations by defining appropriate behavior for various situations.[7] It is also the pattern of such collective behaviors and assumptions that are taught to new organizational members as a way of perceiving and, even, thinking and feeling. Thus, organizational culture affects the way people and groups interact with each other, with clients, and with stakeholders. In addition, organizational culture may affect how much employees identify with an organization
Traditionally, the term business commonly referred to commercial activities aimed at makinga profit or to organisations formed to make a profit. Indeed, in the past, economic theory madea fundamental assumption that profit maximisation was the basic objective of every firm. Themodern outlook, however, is different. For them, profit is only secondary. There are, moreover,
many organisations, both private and public, which do not aim at profit from their business.
In short, the definition of a business as a commercial activity to make a profit or an organisationformed to make a profit is a narrow one. Yet, to a layman, business still means industry andcommerce.
The old concept of business, confining it to commerce and private profit, has undergone aradical change. Today, business is regarded as a social institution forming an integral part of thesocial system. As Davis and Blomstorm observe, business is “social institution, performing a social mission and having a broad influence on the way people live and work together.”1 As Calkinsremarks: “It is now recognised that the direction of business is important to the public welfare,that businessmen perform a social function.”2
Thus, “viewed in a broad way, the term business typically refers to the development andprocessing of economic values in society. Normally, we use the term to apply to the private (nongovernment)portion of the economy whose primary purpose is to provide goods and services tocustomers at a price, but the lines of distinction are getting hazy as business and government overlap their functions in organisations such as the Communications, Satellite Corporation and
the Tennessee Valley Authority. In addition, business is a term applied to economic and commercial activities of institutions having other purposes, such as the business office of an opera association.
Thus, organisations which do not aim of making a profit, like the Delhi Development Authority,charitable hospitals, or other institutions, public relations organisations, government departments,etc., invest capital, price and market their products, services or ideas, manage their human
resources, and so on.According to Davis and Blomstorm, “our modern view of society is an ecological one.
Ecology is concerned with the mutual relations of human populations or systems with their
environment. It is necessary to take this broad view because the influence and involvement of
business are extensive. Business cannot isolate itself from the rest of society. Today, the whole
society is a business’s environment
Davis and Blomstorm point out that, in taking an ecological view of business in a systemrelationship with society, three ideas are significant in addition to the systems idea. The three ideas are values, viability and public visibility
Values
Business, like other social institutions, develops certain belief systems and values for whichthey stand, and these beliefs, and values are a source of institutional drive. These values deriv
The competitive Advantage of corporate cultures Daniel Denison, .docxmehek4
The competitive Advantage of corporate cultures
Daniel Denison, IMD Business School
Levi Nieminen, Denison Consulting
Lindsey Kotrba, Denison Consulting
What is Corporate Culture? At the climax of the annual holiday party in one rapidly growing American company, hundreds of balloons are released from the ceiling. Inside each balloon is a crisp new $100 bill and whoever scrambles the hardest, gets the most money! The lesson is simple, fun, and more powerful than all the personnel policy handbooks in the world. It helps capture the essence of some of the key definitions of corporate culture: Culture is “the way we do things around here,” and “what we do when we think no one is looking.”1 Most scholars further describe culture in terms of two important definitional fea tures, 1) culture has multiple layers or levels, and 2) culture is learned. Schein’s classic approach divides culture into three levels.2 He argues that basic, underlying assumptions lie at the root of culture and are “uncon scious, taken-for-granted beliefs, perceptions, thoughts, and feelings.” Espoused values are Artifacts, behaviors, and derived from basic underlying assumptions and are the “espoused justifications of strate gies, goals and philosophies.” Finally, at the top level are “artifacts,” that are defined as “visible, yet hard to decipher organizational structures and processes.” Like the iceberg norms are visible and tangible. Personal values and attitudes are presented in Figure 1, only about 10 percent of an organization’s culture is visible, whereas 90 percent is below the surface. However, it is the part of the culture that we can’t see—the less visible, but can be talked about. Underlying fundamental beliefs and assumptions—that often sinks the ship. beliefs and assumptions are Figure 2 reminds us that culture is learned—it includes “the lessons that we have learned that are important enough to pass on to the next generation.”3 The lessons from subconscious,invisible, and rarely questioned. Figure 1 Schein’s Three Layers of Organizational Culture the Visible Symbols cultural values that are important are reflected in the visible symbols that surround us, which further reinforce and shape our culture into the future, and so on. Winston Churchill made a similar point about architecture, stating that, “We shape our buildings; thereafter they shape us.”4 Returning to our discussion from above, it is almost always easier to change the buildings than it is to modify the cultural values that guided their construction. In other words, the stuff that resides below the surface of an organization’s culture—the fun damental beliefs and assumptions—is the core of what is learned over time and what comes to guide behaviors and visible structures and processes. Survival Figure 2 Diagram of Culture as Learned Why is Corporate Culture Important? Many top executives attest that shaping and managing their organization’s culture is one of their most important challenges. As ...
A Global WorkforceGlobalization Impact on CultureCulture is im.docxsleeperharwell
A Global Workforce
Globalization Impact on Culture
Culture is impacted by globalization, especially when it comes to a popular or dominates culture. Western or "Americanized" cultures are exposed around the globe through popular movies, television shows, fast food chains, books, clothing, and other consumer goods. These pop cultural items bleed into indigenous cultures and change local beliefs, values, and traditions; thus the historical cultures are changed or infused with the dominant culture.
Globalization and Cultural Domination
Cultural domination is one result of globalization. This theory refers to the dominant culture imposing beliefs, values, knowledge, and other cultural social norms onto the other country. A major example here is the Western culture domination over a global environment. The United States is a major capitalist society and therefore shapes values, identities, and perception around the world. As proven in the following example, with great power comes great responsibility.
As companies like McDonald’s move into countries like China, they are influencing the current cultural traditions in their wake. For instance, in China it was not acceptable for children to buy food with their own money; instead they were expected to eat what was placed in front of them. Traditionally McDonald's in Western countries would market to children with toys and happy meals, and they followed the same approach in China. Chinese children began wanting to select their own food when going to McDonalds, and after some time had passed, this has now become a new socially accepted practice (Lim, 2013).
Globalization and Divergence of Cultures
Cultural divergence is another result of globalization. As more and more opportunities for cultural exchanges take place, promotion for tolerance and diversity acceptance are happening. In this theory, a global society is the outcome where ideas are freely exchanged and appreciated, as cultures merge together to form a new inclusive culture. For example, when McDonald's expanded into China, the Chinese culture did not celebrate children’s birthdays. As McDonald's continued to market to children and birthday parties, these celebrations have now become a new custom with Chinese children with the celebration of birthdays (Lim, 2013).
Impact of Globalization on Dominate and Divergent Cultures in the Workplace
As we have seen above, dominant and divergent cultures are powerful theories in shaping society; these societies influence individual’s beliefs, values, and behaviors in the workplace. If dominate cultures are present in an individual's society, these individuals could become highly protective of their beliefs when it comes to workplace policies. Managers must look to adapt and work with all individuals to ensure common ground or a divergent culture is the outcome.
Hofstede’s Cultural Dimensions
Hofstede’s Dimensions of the Basic Human Condition
To successfully manage a global workforce we must understand som.
The competitive Advantage of corporate cultures Daniel Denison, .docxmehek4
The competitive Advantage of corporate cultures
Daniel Denison, IMD Business School
Levi Nieminen, Denison Consulting
Lindsey Kotrba, Denison Consulting
What is Corporate Culture? At the climax of the annual holiday party in one rapidly growing American company, hundreds of balloons are released from the ceiling. Inside each balloon is a crisp new $100 bill and whoever scrambles the hardest, gets the most money! The lesson is simple, fun, and more powerful than all the personnel policy handbooks in the world. It helps capture the essence of some of the key definitions of corporate culture: Culture is “the way we do things around here,” and “what we do when we think no one is looking.”1 Most scholars further describe culture in terms of two important definitional fea tures, 1) culture has multiple layers or levels, and 2) culture is learned. Schein’s classic approach divides culture into three levels.2 He argues that basic, underlying assumptions lie at the root of culture and are “uncon scious, taken-for-granted beliefs, perceptions, thoughts, and feelings.” Espoused values are Artifacts, behaviors, and derived from basic underlying assumptions and are the “espoused justifications of strate gies, goals and philosophies.” Finally, at the top level are “artifacts,” that are defined as “visible, yet hard to decipher organizational structures and processes.” Like the iceberg norms are visible and tangible. Personal values and attitudes are presented in Figure 1, only about 10 percent of an organization’s culture is visible, whereas 90 percent is below the surface. However, it is the part of the culture that we can’t see—the less visible, but can be talked about. Underlying fundamental beliefs and assumptions—that often sinks the ship. beliefs and assumptions are Figure 2 reminds us that culture is learned—it includes “the lessons that we have learned that are important enough to pass on to the next generation.”3 The lessons from subconscious,invisible, and rarely questioned. Figure 1 Schein’s Three Layers of Organizational Culture the Visible Symbols cultural values that are important are reflected in the visible symbols that surround us, which further reinforce and shape our culture into the future, and so on. Winston Churchill made a similar point about architecture, stating that, “We shape our buildings; thereafter they shape us.”4 Returning to our discussion from above, it is almost always easier to change the buildings than it is to modify the cultural values that guided their construction. In other words, the stuff that resides below the surface of an organization’s culture—the fun damental beliefs and assumptions—is the core of what is learned over time and what comes to guide behaviors and visible structures and processes. Survival Figure 2 Diagram of Culture as Learned Why is Corporate Culture Important? Many top executives attest that shaping and managing their organization’s culture is one of their most important challenges. As ...
A Global WorkforceGlobalization Impact on CultureCulture is im.docxsleeperharwell
A Global Workforce
Globalization Impact on Culture
Culture is impacted by globalization, especially when it comes to a popular or dominates culture. Western or "Americanized" cultures are exposed around the globe through popular movies, television shows, fast food chains, books, clothing, and other consumer goods. These pop cultural items bleed into indigenous cultures and change local beliefs, values, and traditions; thus the historical cultures are changed or infused with the dominant culture.
Globalization and Cultural Domination
Cultural domination is one result of globalization. This theory refers to the dominant culture imposing beliefs, values, knowledge, and other cultural social norms onto the other country. A major example here is the Western culture domination over a global environment. The United States is a major capitalist society and therefore shapes values, identities, and perception around the world. As proven in the following example, with great power comes great responsibility.
As companies like McDonald’s move into countries like China, they are influencing the current cultural traditions in their wake. For instance, in China it was not acceptable for children to buy food with their own money; instead they were expected to eat what was placed in front of them. Traditionally McDonald's in Western countries would market to children with toys and happy meals, and they followed the same approach in China. Chinese children began wanting to select their own food when going to McDonalds, and after some time had passed, this has now become a new socially accepted practice (Lim, 2013).
Globalization and Divergence of Cultures
Cultural divergence is another result of globalization. As more and more opportunities for cultural exchanges take place, promotion for tolerance and diversity acceptance are happening. In this theory, a global society is the outcome where ideas are freely exchanged and appreciated, as cultures merge together to form a new inclusive culture. For example, when McDonald's expanded into China, the Chinese culture did not celebrate children’s birthdays. As McDonald's continued to market to children and birthday parties, these celebrations have now become a new custom with Chinese children with the celebration of birthdays (Lim, 2013).
Impact of Globalization on Dominate and Divergent Cultures in the Workplace
As we have seen above, dominant and divergent cultures are powerful theories in shaping society; these societies influence individual’s beliefs, values, and behaviors in the workplace. If dominate cultures are present in an individual's society, these individuals could become highly protective of their beliefs when it comes to workplace policies. Managers must look to adapt and work with all individuals to ensure common ground or a divergent culture is the outcome.
Hofstede’s Cultural Dimensions
Hofstede’s Dimensions of the Basic Human Condition
To successfully manage a global workforce we must understand som.
Ethnobotany and Ethnopharmacology:
Ethnobotany in herbal drug evaluation,
Impact of Ethnobotany in traditional medicine,
New development in herbals,
Bio-prospecting tools for drug discovery,
Role of Ethnopharmacology in drug evaluation,
Reverse Pharmacology.
Instructions for Submissions thorugh G- Classroom.pptxJheel Barad
This presentation provides a briefing on how to upload submissions and documents in Google Classroom. It was prepared as part of an orientation for new Sainik School in-service teacher trainees. As a training officer, my goal is to ensure that you are comfortable and proficient with this essential tool for managing assignments and fostering student engagement.
The French Revolution, which began in 1789, was a period of radical social and political upheaval in France. It marked the decline of absolute monarchies, the rise of secular and democratic republics, and the eventual rise of Napoleon Bonaparte. This revolutionary period is crucial in understanding the transition from feudalism to modernity in Europe.
For more information, visit-www.vavaclasses.com
Unit 8 - Information and Communication Technology (Paper I).pdfThiyagu K
This slides describes the basic concepts of ICT, basics of Email, Emerging Technology and Digital Initiatives in Education. This presentations aligns with the UGC Paper I syllabus.
Welcome to TechSoup New Member Orientation and Q&A (May 2024).pdfTechSoup
In this webinar you will learn how your organization can access TechSoup's wide variety of product discount and donation programs. From hardware to software, we'll give you a tour of the tools available to help your nonprofit with productivity, collaboration, financial management, donor tracking, security, and more.
How to Make a Field invisible in Odoo 17Celine George
It is possible to hide or invisible some fields in odoo. Commonly using “invisible” attribute in the field definition to invisible the fields. This slide will show how to make a field invisible in odoo 17.
Operation “Blue Star” is the only event in the history of Independent India where the state went into war with its own people. Even after about 40 years it is not clear if it was culmination of states anger over people of the region, a political game of power or start of dictatorial chapter in the democratic setup.
The people of Punjab felt alienated from main stream due to denial of their just demands during a long democratic struggle since independence. As it happen all over the word, it led to militant struggle with great loss of lives of military, police and civilian personnel. Killing of Indira Gandhi and massacre of innocent Sikhs in Delhi and other India cities was also associated with this movement.
1. STEPHEN P. ROBBINS MARY COULTER
Managing the External
Environment and the
Organization’s Culture
Chapter
3
2. The Manager: Omnipotent or Symbolic?
➢Omnipotent view: managers are directly
responsible for an organization’s success or
failure
➢Symbolic view: much of an organization’s
success or failure is due to external forces
outside managers’ control
➢The dominant view in management theory and
society in general is that managers are directly
responsible for an organization’s success or
failure. We call this perspective the omnipotent
view of management. In contrast, others have
argued that much of an organization’s success
or failure is due to external forces outside
managers’ control. This perspective is called the
symbolic view of management. 3–2
3. Exhibit 3–1
In reality, managers are neither all-powerful nor helpless. But
their decisions and actions are constrained.
External constraints come from the organization’s environment
and internal constraints come from the organization’s culture
As you can see in Exhibit 3-1, external constraints come from
the organization’s environment and internal constraints come
from the organization’s culture.
Parameters of Managerial Discretion
3–3
4. External Environment
The economic component = such as interest rates, inflation, changes in
disposable income, stock market fluctuations, and business cycle stages.
The demographic component = trends in population characteristics such as
age, race, gender, education level, geographic location, income, and family
composition.
The political/legal = federal, state, and local laws as well as global laws and
laws of other countries. It also includes a country’s political conditions and
stability.
The sociocultural= societal and cultural factors such as values, attitudes,
trends, traditions, lifestyles, beliefs, tastes, and patterns of behavior.
The technological component = scientific or industrial innovations.
The global component = globalization and a world economy.
5. Economic Environment
External Environment = volatile
Nestlé is facing increased commodity costs. The maker of products from Crunch chocolate
bars to Nescafé coffee to Purina pet food has seen the price of chocolate so high, for
instance, increase by nearly 30 percent in five years. Overall, Nestlé spends more than $30
billion a year on raw materials.
Rising costs are also affecting the cost of sushi. Higher global demand for fish and the
Japanese and U.S. currency exchange rates are influencing prices. Commodity (raw
materials) costs are just one of the many volatile economic factors facing organizations
The Global Economy and the Economic Context
keywords = challenge; business constraint
The lingering Indonesian economic challenges began in 1997 with the turmoil and
increasing of indonesian foreign debt and the lack of of indonesian foreign exchange.
Rupiah currency depreciation which closed at Rp 4,850/US dollar in 1997, rapidly decline
to a level of around Rp 17,000/US dollar on January 22, 1998. The rupiah has depreciated
more than 80 percent since the currency was floated on August 14, 1997.
6. Economic Inequality and the Economic
Context
keywords = constraint
people believe that the gap between the rich and poor is problematic.
As economic growth has languished and sputtered, and as people’s belief that
anyone could prosper declined, social discontent over growing income gaps has
increased.
Business leaders must realize that societal attitudes in the economic context have
the potential to create constraints. The bottom line is that business leaders need to
recognize how societal attitudes in the economic context also may create constraints
as they make decisions and manage their businesses.
7. Demographic environment
Age is a particularly important demographic since the workplace often has different
age groups all working together
Baby Boomers born between 1946 - 1964
Gen Y (Millennials) born between 1978 - 1994
Post-Millennials (i generation and Gen Z-- touch screen generation)
The size and characteristics of a country’s population can have a significant effect on
what it’s able to achieve in politics, economics, and culture.
8. How the External Environment Affects
Managers
1. Jobs and Employment: The power of this constraint was painfully obvious during the last
global recession as millions of jobs were eliminated and unemployment rates rose to
levels not seen in many years. Work tasks may be done by freelancers hired to work on
an as-needed basis, or by temporary workers who work full-time but are not permanent
employees, or by individuals who share jobs.
2. Assessing Environmental Uncertainty
Environmental uncertainty: the degree of change and complexity in an organization’s
environment
A. Change: stable to dynamic = If the components in an organization’s
environment change frequently, it’s a dynamic environment. If change is minimal,
it’s a stable one.-- no new competitors, few technological breakthroughs by
current competitors, little activity by pressure groups to influence the organization
B. Complexity: simple to complex = looks at the number of components in an
organization’s environment and the extent of the knowledge that the organization
has about those components. An organization with fewer competitors, customers,
suppliers, government agencies, and so forth faces a less complex and uncertain
environment
10. 3–10
Stakeholder Relationships
• Stakeholders
➢Any constituencies in the organization’s environment
that are affected by the organization’s decisions and
actions
• Why Manage Stakeholder Relationships?
➢It can lead to improved organizational performance.
➢It’s the “right” thing to do given the interdependence
of the organization and its external stakeholders.
12. What is Organizational Culture?
Organizational culture: the shared values, principles, traditions, and ways of doing things
that influence the way organizational members act and that distinguish the organization
from other organizations
In most organizations, these shared values and practices have evolved over time and
determine, to a large extent, how “things are done around here.”
1. Culture is a perception. It’s not something that can be physically touched or seen, but
employees perceive it on the basis of what they experience within the organization.
2. Organizational culture is descriptive. It’s concerned with how members perceive the
culture and describe it, not with whether they like it.
3. Even though individuals may have different backgrounds or work at different
organizational levels, they tend to describe the organization’s culture in similar terms.
14. 3–14
Strong versus Weak Cultures
• Strong Cultures
➢Are cultures in which key values are deeply held and
widely held.
➢Have a strong influence on organizational members.
• Factors Influencing the Strength of Culture
➢Size of the organization
➢Age of the organization
➢Rate of employee turnover
➢Strength of the original culture
➢Clarity of cultural values and beliefs
15. Benefits of a Strong Culture
• Creates a stronger employee commitment to the
organization.
• Aids in the recruitment and socialization of new
employees.
• Fosters higher organizational
performance by instilling and
promoting employee initiative.
3–15
16. 3–16
Organizational Culture
• Sources of Organizational Culture
➢The organization’s founder
❖ Vision and mission
➢Past practices of the organization
❖ The way things have been done
➢The behavior of top management
• Continuation of the Organizational Culture
➢Recruitment of like-minded employees who “fit”
➢Socialization of new employees to help them adapt
to the culture
18. 3–18
How Employees Learn Culture
• Stories
➢Narratives of significant events or actions of people that convey
the spirit of the organization
• Rituals
➢Repetitive sequences of activities that express and reinforce the
values of the organization
• Material Symbols
➢Physical assets distinguishing the organization
• Language
➢Acronyms and jargon of terms, phrases, and word meanings
specific to an organization
19. 3–19
How Culture Affects Managers
• Cultural Constraints on Managers
➢Whatever managerial actions the organization
recognizes as proper or improper on its behalf
➢Whatever organizational activities the
organization values and encourages
➢The overall strength or weakness of the
organizational culture
Simple rule for getting ahead in an organization:
Find out what the organization rewards and do those things.
20. Exhibit 3–5 How an Organization’s Culture Is Established
and Maintained
3–20
21. Exhibit 3–6 Managerial Decisions Affected by Culture
• Planning
• The degree of risk that plans should contain
• Whether plans should be developed by individuals or teams
• The degree of environmental scanning in which management
will engage
• Organizing
• How much autonomy should be designed into employees’ jobs
• Whether tasks should be done by individuals or in teams
• The degree to which department managers interact with each
other
3–21
22. Exhibit 3–6 Managerial Decisions Affected by Culture (cont’d)
• Leading
• The degree to which managers are concerned with increasing
employee job satisfaction
• What leadership styles are appropriate
• Whether all disagreements—even constructive ones—should
be eliminated
• Controlling
• Whether to impose external controls or to allow employees to
control their own actions
• What criteria should be emphasized in employee performance
evaluations
• What repercussions will occur from exceeding one’s budget
3–22
23. 3–23
Organization Culture Issues
• Creating an Ethical
Culture
➢High in risk tolerance
➢Low to moderate
aggressiveness
➢Focus on means as
well as outcomes
• Creating an Innovative
Culture
➢Challenge and
involvement
➢Freedom
➢Trust and openness
➢Idea time
➢Playfulness/humor
➢Conflict resolution
➢Debates
➢Risk-taking
