Social System and

Organizational Culture
Human Behavior and Organization Class

Prof. Melvin Vitug Moraga

 Lecture Objectives
1 2 3 4

Explain
Understand the Examine social Discuss the role
organizational
operation of a cultures and and role conflict
culture and its
social system their impact in organizations
effect
Research
reveals that
strong
cultures tend
to outperform
their peers.
 What is a Social System?

complex set of interacting

human relationships

all parts are mutually

interdependent

engages in exchanges with

its environment (open system)
 Social Equilibrium
When all interdependent parts are in
dynamic working balance

a single event can throw a system out of

balance
when in disequilibrium, the parts work
against each other
over time, the basic character changes
little
 American design
automobile quality
manufacturers cost

Toyota
International Honda
automakers Mazda
Nissan

problem: product design, factory engineering, sales and marketting

Cross-functional Speeding product devt

Teams Cost reduction by 20%

result: more productive equilibrium

Functional and Dysfunctional Effects

Functional effects

creativity
productive employees
To elicit functional
quality improvements behaviors, provide
clear expectations
and promises of
reward
Functional and Dysfunctional
Effects (contn)

Dysfunctional effects
lower productivity (hard)
lower satisfaction (soft)
lower commitment (soft)
Psychological and Economic Contracts
Psychological and Economic Contracts
(contn)

The psychological contract builds upon

the concept of exchange theory

to remain attracted to the relationship,

both parties must have a net positive ratio

the contract is continually examined

and revised
 Social Culture
Acting in accordance with the expectations
of others

human-created beliefs, customs,

knowledge, and practices

distinctive social cultures can exist

within a single nation
 Social Culture (contn)
Managers must understand and
appreciate the backgrounds and
beliefs of work unit members

one-culture dependency may

create intellectual blinders
 Cultural Diversity

Job-related Type of work

Rank
diversity Physical proximity
Group affiliation

Culture
Ethnicity
Non-Job-
Socio-economics Related
Sex diversity
 Cultural Diversity (contn)
Discrimination and Prejudice
Discrimination is generally an action
Prejudice is an attitude
Either may exist without the other

The law prohibits

Actions, not feelings
Any action that has discriminatory results,
regardless of intentions
 Cultural Diversity (contn)

Valuing Diversity

Prejudicial stereotypes

Differences must be recognized,

acknowledged, appreciated, and used to
collective advantage
 Cultural Diversity (contn)

Valuing Diversity

Organizations are under political,

economic, social, and technical pressures
to change

Actively managing diversity provides a

competitive advantage
 Social Cultural Values

The Work Ethic

Group differences
Gradual decline

Social Responsibility
Costs and benefits
Strive for balance
Social, economic, and technical values
 Role

A pattern of expected
actions

Facilitates interaction
Multiple roles
Role Perceptions
 Mentors

A role model who guides another employee

Stronger employee loyalty
Faster movement up learning
curve
Better succession planning
Increased accomplishments
Gradual decline
 Mentors (contn)

Assigning mentors can result in

Resentment
Abuse of power
Unwillingness to serve
 Role Conflict

Others have different perceptions or

expectations of a persons role

Boundary roles
Role ambiguity
 Status
Social rank of a person in a group

status systems
status anxiety
status deprivation
status relationships
status symbols
Sources of Job Status
 Status (contn)

Significance of status

Influences transfers and jobs employees

take
Helps determine informal leaders
Motivates those seeking to advance
Some societal backlash
 Organizational Culture

Complex social system of laws, values,

customs

Behavior = Interaction between personal

characteristics and the environment

Shared norms
 Organizational Culture (contn)

Benefits of Organizational Culture

Provides organizational identity

Source of stability, continuity, security
Provides context
Typically identifies and rewards high-
producing and creative individuals (role
models)
 Organizational Culture (contn)

Benefits of Organizational Culture

Provides organizational identity

Source of stability, continuity, security
Provides context
Typically identifies and rewards high-
producing and creative individuals (role
models)
Characteristics of Organizational
Culture (contn)

distinctive stable implicit

reflection
symbolic integrated of top
management

varying
subcultures
strength

No single type of culture is best

Measuring Organizational Culture
Difficult at best..
Examination of stories, symbols, rituals,
and ceremonies
Interviews and open-ended questionnaires
Examination of corporate philosophy
statements
Become a member of the organization and
observe
Communicating and Changing Culture

Difficult at best..
Formal communication channels
Informal means
Unintentional ways
Storytelling
Communicating and Changing Culture

People are more willing to adapt and learn

when they want to

Please others
Gain approval
Learn about their work environment
 Case: The Kaisa Construction Company
Kaisa Construction company is a small company in Manila. Over half its revenue is
derived from the installation of underground water and power line, so much of its
workers is seasonal and turnover among its employees is high.

Federico Marasigan, a college student, had been employed by Kaisa as a backhoe

operator for the last three summers. On his return to work for the fourth summer,
Marasigan was assigned the second newest of the companys five backhoes. The
owener reasoned that Marasigan had nine months of work seniority, so according to
strict seniority, he should have the second backhoe. The action required the present
operator of the backhoe, Pedro Manansala, a regular employee who had been with
the company seven months, to be reassigned to an older machine. Manansala was
strongly dissatisfied with this; he felt that as a regular employee he should have
retained the newer machine instead of having to give it to a temporary employee.
The other employee soon fell into camps, one supporting Manansala and one
supporting Marasigan. Job conflict arose, and each group seemed to deligth in causing
work problems for the other group. In less thant a month Manansala left the company.

QUESTIONS:
1. Discuss this case in terms of the social system, equilibrium, the
psychological contract, role , status, and status symbols.