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Organization culture

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Organization culture

  1. 1. Chapter 9, Stephen P. Robbins and Nancy Langton, Organizational Behaviour, Third Canadian Edition. Copyright © 2003 Pearson Education Canada Inc. Chapter 9 Organizational Culture
  2. 2. Chapter 9, Stephen P. Robbins and Nancy Langton, Organizational Behaviour, Third Canadian Edition. Copyright © 2003 Pearson Education Canada Inc. Organizational Culture • What is organizational culture? • When is organizational culture functional? Dysfunctional? • How do employees learn about the culture of their organization? Questions for Consideration Questions for Consideration
  3. 3. Chapter 9, Stephen P. Robbins and Nancy Langton, Organizational Behaviour, Third Canadian Edition. Copyright © 2003 Pearson Education Canada Inc. Henry Mintzberg on Culture • “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.”
  4. 4. Chapter 9, Stephen P. Robbins and Nancy Langton, Organizational Behaviour, Third Canadian Edition. Copyright © 2003 Pearson Education Canada Inc. Organizational Culture • The pattern of shared values, beliefs and assumptions considered to be the appropriate way to think and act within an organization. – Culture is shared – Culture helps members solve problems – Culture is taught to newcomers – Culture strongly influences behaviour
  5. 5. Chapter 9, Stephen P. Robbins and Nancy Langton, Organizational Behaviour, Third Canadian Edition. Copyright © 2003 Pearson Education Canada Inc. Exhibit 9-1 Layers of Culture Artifacts of Organizational Culture Material Symbols Language Rituals Stories Organizational Culture Beliefs Values Assumptions
  6. 6. Chapter 9, Stephen P. Robbins and Nancy Langton, Organizational Behaviour, Third Canadian Edition. Copyright © 2003 Pearson Education Canada Inc. Characteristics of Organizational Culture • Innovation and risk-taking – The degree to which employees are encouraged to be innovative and take risks. • Attention to detail – The degree to which employees are expected to exhibit precision, analysis, and attention to detail. • Outcome orientation – The degree to which management focuses on results or outcomes rather than on technique and process. • People orientation – The degree to which management decisions take into consideration the effect of outcomes on people within the organization.
  7. 7. Chapter 9, Stephen P. Robbins and Nancy Langton, Organizational Behaviour, Third Canadian Edition. Copyright © 2003 Pearson Education Canada Inc. Characteristics of Organizational Culture • Team orientation – The degree to which work activities are organized around teams rather than individuals. • Aggressiveness – The degree to which people are aggressive and competitive rather than easygoing. • Stability – The degree to which organizational activities emphasize maintaining the status quo in contrast to growth.
  8. 8. Chapter 9, Stephen P. Robbins and Nancy Langton, Organizational Behaviour, Third Canadian Edition. Copyright © 2003 Pearson Education Canada Inc. Cultural Artifacts • Stories • Rituals • Material Symbols • Language
  9. 9. Chapter 9, Stephen P. Robbins and Nancy Langton, Organizational Behaviour, Third Canadian Edition. Copyright © 2003 Pearson Education Canada Inc. Do Organizations Have Uniform Cultures? • Organizational culture represents a common perception held by the organization members. • Core values or dominant (primary) values are accepted throughout the organization. – Dominant culture • Expresses the core values that are shared by a majority of the organization’s members. – Subcultures • Tend to develop in large organizations to reflect common problems, situations, or experiences.
  10. 10. Chapter 9, Stephen P. Robbins and Nancy Langton, Organizational Behaviour, Third Canadian Edition. Copyright © 2003 Pearson Education Canada Inc. Exhibit 9-3 How Organizational Culture Forms Selection criteria Socialization Organization's culture Philosophy of organization's founders Top management
  11. 11. Chapter 9, Stephen P. Robbins and Nancy Langton, Organizational Behaviour, Third Canadian Edition. Copyright © 2003 Pearson Education Canada Inc. Keeping a Culture Alive • Selection – Identify and hire individuals who will fit in with the culture • Top Management – Senior executives establish and communicate the norms of the organization • Socialization – Organizations need to teach the culture to new employees
  12. 12. Chapter 9, Stephen P. Robbins and Nancy Langton, Organizational Behaviour, Third Canadian Edition. Copyright © 2003 Pearson Education Canada Inc. Exhibit 9-5 A Socialization Model Prearrival Encounter Metamorphosis Socialization Process Outcomes Commitment Productivity Turnover
  13. 13. Chapter 9, Stephen P. Robbins and Nancy Langton, Organizational Behaviour, Third Canadian Edition. Copyright © 2003 Pearson Education Canada Inc. Exhibit 9-6 Entry Socialization Options • Formal vs. Informal • Individual vs. Collective • Fixed vs. Variable • Serial vs. Random • Investiture vs. Divestiture
  14. 14. Chapter 9, Stephen P. Robbins and Nancy Langton, Organizational Behaviour, Third Canadian Edition. Copyright © 2003 Pearson Education Canada Inc. Exhibit 9-7 Culture Typology Fragmented Networked Low High Solidarity Mercenary Low High Communal Sociability
  15. 15. Chapter 9, Stephen P. Robbins and Nancy Langton, Organizational Behaviour, Third Canadian Edition. Copyright © 2003 Pearson Education Canada Inc. Culture’s Functions • Social glue that helps hold an organization together – Provides appropriate standards for what employees should say or do • Boundary-defining • Conveys a sense of identity for organization members
  16. 16. Chapter 9, Stephen P. Robbins and Nancy Langton, Organizational Behaviour, Third Canadian Edition. Copyright © 2003 Pearson Education Canada Inc. Culture’s Functions • Facilitates commitment to something larger than one’s individual self-interest • Enhances social system stability • Serves as a “sense-making” and control mechanism – Guides and shapes the attitudes and behaviour of employees
  17. 17. Chapter 9, Stephen P. Robbins and Nancy Langton, Organizational Behaviour, Third Canadian Edition. Copyright © 2003 Pearson Education Canada Inc. Culture as a Liability • Culture can have dysfunctional aspects in some instances – Culture as a Barrier to Change • When organization is undergoing change, culture may impede change – Culture as a Barrier to Diversity • Strong cultures put considerable pressure on employees to conform – Culture as a Barrier to Mergers and Acquisitions • Merging the cultures of two organizations can be difficult, if not impossible
  18. 18. Chapter 9, Stephen P. Robbins and Nancy Langton, Organizational Behaviour, Third Canadian Edition. Copyright © 2003 Pearson Education Canada Inc. How to Change Culture • Have top-management people become positive role models, setting the tone through their behaviour. • Create new stories, symbols, and rituals to replace those currently in vogue. • Select, promote, and support employees who espouse the new values that are sought. • Redesign socialization processes to align with the new values.
  19. 19. Chapter 9, Stephen P. Robbins and Nancy Langton, Organizational Behaviour, Third Canadian Edition. Copyright © 2003 Pearson Education Canada Inc. How to Change Culture • Change the reward system to encourage acceptance of a new set of values. • Replace unwritten norms with formal rules and regulations that are tightly enforced. • Shake up current subcultures through transfers, job rotation, and/or terminations. • Work to get peer group consensus through utilization of employee participation and creation of a climate with a high level of trust.
  20. 20. Chapter 9, Stephen P. Robbins and Nancy Langton, Organizational Behaviour, Third Canadian Edition. Copyright © 2003 Pearson Education Canada Inc. Summary and Implications • Employees form an overall subjective perception of the organization based on such factors as degree of risk tolerance, team emphasis, and support of people. – This overall perception becomes, in effect, the organization’s culture or personality. – These favourable or unfavourable perceptions then affect employee performance and satisfaction, with the impact being greater for stronger cultures. • Just as people’s personalities tend to be stable over time, so too do strong cultures. – This makes strong cultures difficult for managers to change.
  21. 21. Chapter 9, Stephen P. Robbins and Nancy Langton, Organizational Behaviour, Third Canadian Edition. Copyright © 2003 Pearson Education Canada Inc. Summary and Implications • One of the more important managerial implications of organizational culture relates to selection decisions. – Hiring individuals whose values don't align with those of the organization is not good. • An employee's performance depends to a considerable degree on knowing what he should or should not do.
  22. 22. Chapter 9, Stephen P. Robbins and Nancy Langton, Organizational Behaviour, Third Canadian Edition. Copyright © 2003 Pearson Education Canada Inc. Point-CounterPoint • Why Culture Doesn’t Change Culture develops over many years, and becomes part of how the organization thinks and feels Selection and promotion policies guarantee survival of culture Top management chooses managers likely to maintain culture • When Culture Can Change There is a dramatic crisis There is a turnover in leadership The organization is young and small There is a weak culture

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