Transcript Robbins 16

Essentials of Organizational Behavior

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12e

Stephen P. Robbins & Timothy A. Judge

Chapter 16

Organizational Culture

Copyright ©2014 Pearson Education, Inc.

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After studying this chapter, you should be able to:

Define organizational culture and describe its common characteristics.

Compare the functional and dysfunctional effects of organizational culture on people and the organization.

Identify the factors that create and sustain an organization’s culture.

Show how culture is transmitted to employees.

Demonstrate how an ethical culture can be created.

Show how national culture may affect the way organizational culture is transported to a different country.

Copyright ©2014 Pearson Education, Inc.

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Organizational Culture

Organizational culture:

A system of shared meaning held by members that distinguishes the organization from other organizations 16-3 Copyright ©2014 Pearson Education, Inc.

Seven Characteristics of Organizational Culture

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Innovation and risk taking Attention to detail Outcome orientation People orientation Team orientation Aggressiveness Stability Copyright ©2014 Pearson Education, Inc.

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Culture Is a Descriptive Term

Culture

 Organizational culture is concerned with how employees perceive an organization’s culture, not whether or not they like it  Descriptive

Job Satisfaction

 Measures affective responses to the work environment: concerned with how employees feel about the organization  Evaluative 16-5 Copyright ©2014 Pearson Education, Inc.

Do Organizations Have Uniform Cultures?

 The 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 of members  Subcultures mirror the dominant culture but may add to or modify the core values Copyright ©2014 Pearson Education, Inc.

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Strong Cultures

 In a strong culture, the organization’s core values are both intensely held and widely shared  Strong cultures will    Have great influence on the behavior of members Increase cohesiveness Result in lower employee turnover Copyright ©2014 Pearson Education, Inc.

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Culture’s Five Basic Functions

Defines boundaries Conveys a sense of identity Generates commitment beyond oneself Enhances social stability Sense-making and control mechanism Copyright ©2014 Pearson Education, Inc.

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Culture as a Liability

Barrier to change

Culture is slow to change – even in a dynamic environment 

Barrier to diversity

Culture seeks to minimize diversity Can embed prevalent bias and prejudice 

Barrier to acquisitions and mergers

Most mergers fail due to cultural incompatibility Copyright ©2014 Pearson Education, Inc.

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Creating Culture

 Ultimate source of an organization’s culture is its founders  Founders create culture in three ways 1.

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By hiring and keeping those who think and feel the same way they do Indoctrinating and socializing those employees to their way of thinking and feeling Acting as a role model and encouraging employees to identify with them Copyright ©2014 Pearson Education, Inc.

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Keeping a Culture Alive

Selection – seek out those who fit in  Top management – establish norms of behavior by their actions  Socialization – help new employees adapt to the existing culture 16-11 Copyright ©2014 Pearson Education, Inc.

A Socialization Model

Pre-arrival – initial knowledge about the organization and own unique ideas  Encounter – exposed to the organization  Metamorphosis – member changed to fit within the organization Copyright ©2014 Pearson Education, Inc.

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Dimensions of Socialization Programs

Intense Programs

    Formal – new workers separated for training Collective – group basis Fixed – planned activities Serial – role models used  Divestiture – strip away characteristics to build up new ones

Moderate Programs

    Informal – new workers immediately put to work Individual – one-on-one Variable – no timetables Random – on your own  Investiture – accepts and confirms existing characteristics Copyright ©2014 Pearson Education, Inc.

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How Organization Cultures Form

 Success in employee socialization depends on management’s selection of socialization methods and the closeness of new employees’ values to those of the organization 16-14 Copyright ©2014 Pearson Education, Inc.

How Employees Learn Culture

Culture is transmitted to employees through:     Stories – provide explanations Rituals – reinforce key values Material symbols – convey importance Language – identify and segregate members Copyright ©2014 Pearson Education, Inc.

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Creating an Ethical Organizational Culture

 A strong culture with high risk tolerance, low to-moderate aggressiveness, and a focus on means as well as outcomes is most likely to shape high ethical standards      Managers must be visible role models Communicate ethical expectations Provide ethical training Visibly reward ethical acts and punish unethical ones Provide protective mechanisms Copyright ©2014 Pearson Education, Inc.

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Creating a Positive Organizational Culture

 A positive culture is one that emphasizes    Building on employee strengths Rewarding more than punishing Emphasizing vitality and growth of the employee 16-17 Copyright ©2014 Pearson Education, Inc.

Global Implications

 National and organizational cultures    Organizations exist in a global context Must be aware of local and national cultures Suggestions and observations    Organizations heavily dependent on foreign markets and labor National culture does influence organizational culture All managers must be culturally sensitive Copyright ©2014 Pearson Education, Inc.

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Implications for Managers

    Changing organizational culture is not easy, expect it to take years Hire people who “fit” Ensure that employees know the right way to do their job Work to create an ethical culture Copyright ©2014 Pearson Education, Inc.

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Keep in Mind…

 Organizational culture develops over time and reflects deeply held values to which employees are strongly committed  Ethical and positive organizational cultures can be created – methods differ  National culture influences organizational culture 16-20 Copyright ©2014 Pearson Education, Inc.

Summary

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Defined organizational culture and described its common characteristics.

Compared the functional and dysfunctional effects of organizational culture on people and the organization.

Explained the factors that created and sustained an organization’s culture.

Showed how culture was transmitted to employees.

Demonstrated how an ethical culture could be created.

Showed how national culture might affect the way organizational culture is transported to a different country.

Copyright ©2014 Pearson Education, Inc.

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