Organizational Culture & Environments
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Organizational Culture & Environments
- 2. Future Executives Danish Iqbal Bilal Rasool Chaudhary Hassan Rehman Chaudhary Muhammad Naeem Ghauri Layon Ivan Patrick Lobo 6338 6728 6215 6480 6078 “Group Leader”
- 3. Content Why is it important to know about organization culture? What is organizational culture? Kinds of organizational culture. Different role of Manager’s in different organizational cultures. How Cultures effect Managers? What is Organizational environment? How Environment’s influence managers? Case Study
- 4. Quotation “The conventional definition of management is getting work done through people, but real management is developing people through work” Agha Hasan Abedi Founder Bank of Credit and Commerce International Luxembourg
- 6. Why is it Important to know about organization culture? Vision and Mission are the benchmark for any organization’s culture. To learn how different tasks are performed in an organization. Customs Traditions Ways of working www- movieclip. wmv
- 7. Organizational Culture The cognitive framework of Attitudes Values Behavioral norms Expectations Key is that they are shared by organizational members
- 8. Aspects of Organization Culture Achievement Self actualizing Humanistic Approval Conventional Avoidance Power Competitive Oppositional
- 9. Organizational Culture Provides A sense of identity for group members Commitment to the mission of the organization Clarifies and reinforces standards of behavior Culture usually takes 5-10 years to develop
- 10. How is organizational culture transmitted? Symbols (buildings, lobby, decorations, etc.) Stories that get passed on Ceremonies (holiday parties, awards) Statements of principles Policies Reward structure
- 11. How do they create this culture? Values = people, play and profit They have a playroom as a corner office Physical environment Polaroid pictures and graffiti on the walls Drumming to announce meetings Use magazines to generate ideas Bring toys to work
- 12. Is organizational culture important..? Research shows there is not one best culture, but it is important to have a strong culture A culture that supports affiliation among coworkers, flexibility, and encourages supervisor support has been linked to positive outcomes Important to have a fit between the person and the org culture (increases satisfaction and commitment)
- 13. What does organization culture..? Helps to distinguish an org from other orgs and its general environment by providing it with an external identity Sense of commitment to social entity greater than one’s self interest Is a source of high reliability in organizations Provides members with interpretive scheme or way to make sense of positions and activities Culture is a social control mechanism
- 15. Quotation “There is less to fear from outside ompetition than from inside inefficiency, discourtesy and bad service” Anonymous
- 16. What is organizational culture.? “Shared values, principles, traditions & ways of doing things that influence the way organizational members act.” “Stephen P.Robbins & Mary Coulter”
- 17. Definition Continued…. “Henry Mintzberg” “Culture is the soul of the organization- the beliefs and values , and how they are manifested. I think of the structure as the skeleton, and as the flesh and blood. And culture is the soul that holds the thing together and gives it life force.”
- 18. The Organization's Culture Culture is perception Individuals perceive the organizational culture on the basis of what they see, hear or experience within org. Culture is shared People with different social, organizational & educational background, they describe organizational culture in similar terms. Culture is descriptive How members perceive the Organization. Not with whether they Like it.
- 19. Strong Versus Weak Cultures Strong Cultures Factors Influencing the Strength of Culture Are cultures in which key values are deeply held and widely held. Have a strong influence on organizational members. Size of the organization Age of the organization Rate of the employee turnover Strength of cultural values and beliefs Benefit 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.
- 20. Strong versus Weak Organizational Cultures
- 22. Quotation “Coming together is a beginning. Keeping together is progress. Working together is success” Henry Ford
- 23. The Manager’s Role Omnipotent View of Management Managers are directly responsible for an organization’s success of failure The quality of the organization is determined by the quality of its Managers. Managers are held most accountable for an organization’s performance directly due to their influence on the organization.
- 24. Manager’s Role Continued… Symbolic View Of Management Managers are not directly responsible for an organization’s success or failure. Organizational success or failure is due to external forces outside the managers control (e.g. Natural Disasters, Earthquake etc) The symbolic view is based on the belief that managers symbolize control and influence business. Managers play a minimal part in success or failure of any organization.
- 27. Levels Of Corporate Culture
- 28. Corporative Culture www-Corporate Culture Evolution.WMV
- 30. Quotation “There is a simple rule about the environment. If there is waste or pollution, someone along the line pays for it” Lee Scott, Chief Executive, Wal-Mart
- 31. Dimensions Of Organizational Culture
- 32. Sources Of Organizational Culture The organization’s founder Past practices of the organization Vision and mission 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
- 33. How an Organization’s Culture is Established and Maintained
- 34. How Employees Learn Culture? Stories Narratives of significant events or actions of people that convey the spirit of the organization Material Symbols Physical assets distinguishing the organization Language Acronyms and jargon of terms, phrases and word meanings specific to an organization
- 35. 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 of weakness of the organizational culture Simple rule for getting ahead in an organization: Find out what the organization rewards and do those things.
- 36. Managerial Decisions Affected by Character Planning Whether plans should be developed by individuals or teams The degree of risk that plans should contain The degree of environmental scanning in which management will engage Organizing How much autonomy should be designed into employee’s jobs Whether tasks should be done by individuals or in teams The degree to which department managers interact with each other
- 37. Leading What leadership styles are appropriate The degree to which managers are concerned with increasing employee job satisfaction 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
- 38. Suggestions for Managers: Creating a More Ethical Culture Be a visible role model Communicate ethical expectations Provide ethics training Visibly reward ethical acts and punish unethical ones Provide protective mechanisms so employees can discuss ethical dilemmas and report unethical behavior without fear
- 39. Organization Culture Issues Creating an Ethical Culture in risk tolerance Low to moderate aggressiveness Focus on means as well as out comes Creating an Innovative Culture High Challenge and involvement Freedom Trust and openness Idea time Playfulness/humor Conflict resolution Debates Risk-taking
- 40. Creating a Customer-Responsive Culture Hiring the right type of employees (ones with a strong interest in serving customers) Having few rigid rules, procedures and regulations Using widespread empowerment of employees Having good listening skill in relating to customers messages Providing role clarity to employees to reduce ambiguity and conflict and increase job satisfaction Having conscientious caring employees willing to take initiative
- 41. Spirituality and Organizational Culture Workplace Spirituality The recognition that people have an inner life that nourishes and is nourished by meaningful work that takes place in the context of community. Characteristics of a Spiritual Organization Strong sense of purpose Focus on individual development Trust and openness Employee empowerment Toleration of employees expression
- 42. Benefit of Spirituality Improved employee productivity Reduction of employee turnover Stronger organizational performance Increased creativity Increased employee satisfaction Increased team performance Increased organizational performance
- 45. Defining the External Environment External Environment The forces and institutions outside the organization that potentially can affect the organization’s performance. Components of the External Environment Specific environment: External forces that have a direct and immediate impact on the organization. General Environment: Broad economic ,socio-cultural, political/legal, demographic, technological and global conditions that may affect the organization.
- 46. Define the External Environment External Environment: outside institution or forces that potentially affect an organization’s performance. Specific Environment Customers Suppliers Competitors Pressure groups General Environment Economic Political / Legal Socio cultural Demographic Technological Global
- 50. Stakeholder Relationships Stakeholders Any constituencies in the organization's external 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.
- 51. The Global Marketplace Opportunities and Challenges Acknowledging cultural, political, and economic differences Coping with the sudden appearance of new competitors Dealing with increased uncertainty, fear, and anxiety Adapting to changes in the global environment Avoiding parochialism
- 52. What’s Your Global Perspective? Parochialism Is viewing the world solely through its own eyes and perspectives. Is not recognizing that others have different ways of living and working. Is a significant obstacle for managers working in a global business world. Is falling into the trap of ignoring others’ values and customs and rigidly applying an attitude of “ours is better than theirs” to foreign cultures.
- 53. Adopting a Global Perspective Ethnocentric Attitude Polycentric Attitude The parochialistic belief that the best work approaches and practices are those of the home country. The view that the managers in the host country know the best work approaches and practices for running their business. Geocentric Attitude A world-oriented view that focuses on using the best approaches and people from around the globe.
- 54. Different Types of International Organizations Multinational Corporation (MNC) Domestic Corporation Maintains operations in multiple countries. Is an MNC that decentralizes management and other decisions to the local country. Global Company Is an MNC that centralizes its management and other decisions in the home country.
- 55. Different Types of International Organizations (cont’d) Transnational Corporation (Borderless Organization) Is an MNC that has eliminated structural divisions that impose artificial geographic barriers and is organized along business lines that reflect a geocentric attitude. Born Globals/International New Ventures (INVs) Commit resources upfront (material, people, financing) to doing business in more than one country.
- 56. Other Forms of Globalization Strategic Alliances Partnerships between and organization and a foreign company in which both share resources and knowledge in developing new products or building new production facilities. Joint Venture A specific type of strategic alliance in which the partners agree to form a separate, independent organization for some business purpose. Foreign Subsidiary Directly investing in a foreign country by setting up a separate and independent production facility or office. Mergers Companies combining resources and management to eliminate competition and increase profitability.
- 57. The Cultural Environment National Culture Is the values and attitudes shared by individuals from a specific country that shape their behavior and their beliefs about what is important. May have more influence on an organization than the organization culture.
- 58. Global Management in Today’s World Challenges Significant cultural differences (e.g., Americanization) Openness associated with globalization Adjusting leadership styles and management approaches Risks Loss of investments in unstable countries Increased terrorism Economic interdependence
- 59. CASE STUDY The Strategy That Wouldn’t Travel By Micheal C. Beers (Harvard Business Review)
- 60. Questions for Case Study 1. Why was the strategy successful at the Wichita plant and why it was a failure at Lubbock? 2. If you were in place of Karen Jimenez, what would you do to make Lubbock also like Wichita? 3. If the strategy was successful at Wichita, was it because of a person, teamwork or policies / systems? Explain 4. Discuss what skills were present in Wichita and what was missing in Lubbock.
- 61. References: Robbins and Coulter, Business, 9th edition, 2007 Kreitner, Management Richard L. Daft, Management, 8th edition, 2007 John R. Schermerhorn. JR., Management, 9th edition, 2007 Images by: www.fotosearch.com www.google.com
- 62. Quotation “Corporations are social institutions. If they don't serve society, they have no business existing” Henry Mintzberg, Management Expert
- 63. CONCLUSION: Now lets Watch a brief Conclusion! www-conclusion.wmv