BA 7

References: 1. Grifin and Moorhead, 2012. 2. Schermerhorn et.al. Organizational Behavior , 2012.

 The system of shared actions, values, and

beliefs that develops within an organization and guides the behavior of its members.
A set of values held by individuals in a firm

that help employees understand acceptability of actions

The way we do things around here

 Why Study Culture?

It is assumed that organizations with a strong

culture perform at higher levels than those without a strong culture

Culture Values
Are often taken for granted (implicit) May not be made explicit (i.e., not written down) Are communicated through symbolic means

Anthropology

Sociology

Historical Foundations

Social Psychology

Economics

2012 South-Western, a part of Cengage Learning

External adaptation
Knowing ways of reaching goals. Knowing the tasks and methods to achieve goals. Methods of coping with success and failure.

Internal integration
The creation of a collective identity. Finding ways of working and living together.

Organization Culture

The historical context within which a situation

occurs and the impact of this context on the behaviors of employees

Organization Climate

Difficult to alter in the short-run Means through which people in the organization learn and communicate organization acceptability (values and norms)

The current situations in an organization and the

linkages among work groups, employees, and work performance

Easier for management to manipulate in order to directly affect the behavior of employees

Subculture
A group of individuals who exhibit a unique

pattern of values and a philosophy that is consistent with the organizations dominant values and philosophy.

Counterculture
Groups whose patterns of values and philosophies

outwardly reject those of the larger organization or social system.

Observable culture
The way things are done

Shared values
Links people together

Common cultural assumptions

Taken for granted truths that members share as a

result of their joint experience

Sagas
Heroic accounts of organizational

accomplishments.

Rites
Standardized and recurring activities that are

used at special times to influence the behaviors and understanding of organizational members .

Cultural symbols
Any object, act, or event that serves to transmit

cultural meaning (i.e. the color brown and the nickname Big Brown is associated with UPS).

Shared values
Help turn routine activities into valuable and

important actions. Tie the organization to the important values of society. May provide a very distinctive source of competitive advantage.

Organizational myths
Unproven and often unstated beliefs that are

accepted uncritically.
Common myths
Senior management has no risk bias Presumption of administrative competence Denial of trade-offs

 Establish Values (Step 1 &2) Strategic values

The basic beliefs about an organizations environment that shape its strategy.

Cultural values The values that employees need to have and act on for the organization to act on the strategic values.

Create Vision (Step 3) Create a picture of the organization that portrays

how the strategic and cultural values will combine to create the future.

 Initiate Implementation Strategies (Step 4)

Take actions founded on the strategic and

cultural values to accomplish the vision.

Reinforce Cultural Behaviors (Step 5)
Use formal reward systems to encourage desired

employee behaviors
Tell stories that epitomizing cultural values Conduct ceremonies and rituals that emphasize

right actions by employees

The Ouchi Framework

*Theory Z is an approach to management based upon a combination of American and Japanese management philosophies and characterized by, among other things, long-term job security, consensual decision making, slow evaluation and promotion procedures, and individual responsibility within a group context. http://www.referenceforbusiness.com

The Peters and Waterman Framework

1. Bias for action 2. Stay close to the customer

Attributes of an Excellent Firm

3. Autonomy and entrepreneurship

4. Productivity through people 5. Hands-on management 6. Stick to the knitting 7. Simple form, lean staff 8. Simultaneously loose and tight organization

Innovation
The process of creating and doing new things that

are introduced into the marketplace as products, processes, or services

Radical innovation Systems innovation Incremental innovation

The innovation process*

*Copyright 2012 John Wiley & Sons, Inc.

 New Ventures Require entrepreneurship and good management Intrapreneurship

Entrepreneurial activity that takes place within the context of a large organization

Entrepreneurs profile Need for achievement Desire to assume responsibility Willing to take risks Focus on concrete results

Corporate Research
Supports existing businesses to provide

incremental innovations and to explore potential new technology bases Is responsible for keeping the companys products and processes technologically advanced

Empowerment
Is enabling workers to set their own work goals,

make decisions, solve problems within their sphere of responsibility and authority

Appropriate Cultures (Goffee and Jones)

Factors that may determine the appropriate type

of culture for an organization:

The nature of the value chain The dynamism of the environment

Taking Advantage of the Existing Culture

Easier and faster to alter employee behaviors

within the existing culture than it is to change existing history, traditions, and values
Managers must be aware and understand the

organizations values
Managers can communicate their understanding

to lower-level individuals
2012 South-Western, a part of Cengage Learning 1822

Teaching Organization Culture

Organizational socialization
Is the process through which employees learn about the firms culture and pass their knowledge and understanding on to others

Organizational mechanisms
Are examples of organization culture that employees see in more experienced employees behaviors
Corporate pamphlets and formal training sessions
2012 South-Western, a part of Cengage Learning 1823

Changing the Organization Culture

Managing symbols
Substituting stories and myths that support the new cultural values for those that support old ones

Culture can be difficult to change when upper

management inadvertently reverts to old behaviors

The Stability of Change

New values and beliefs must be seen as stable and

influential as old ones Changing value systems requires enormous effort because value systems tend to be self-reinforcing
2012 South-Western, a part of Cengage Learning 1824