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A consciously coordinated social unit, composed of a group of people, which functions on a relatively continuous basis to achieve a common goal or set of goals.
± set of shared, taken-for-granted implicit assumptions that a group holds and that determines how it perceives, thinks about and reacts to its various environments ± A common perception held by the organization s members; a system of shared meaning.
Henry Mintzberg on Culture
³Culture is the soul of the organization ² 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.´
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
Organizational Culture Characteristics Passed on to new employees through the process of socialization Influences our behavior at work Operates at different levels .
Organizational Culture Shaped by four components: ± Founder s values ± Industry and business environment ± National culture ± Senior leaders visions .
How Organizational Culture Forms Philosophy of organization's founders Top management Selection criteria Socialization Organization's culture .
Elements of Strong Culture Widely shared philosophy Concern for individuals Recognition of heroes Belief in ritual and ceremony Well-understood sense of the informal rules and expectations Belief that what employees do is important to others .
Cultures can be strong and weak Strong cultures can be both good and bad help people make sense of what s going on Weak cultures do not provide workers with a sense of belonging .
and promotion criteria . titles). status symbols (e. 2.. and sayings Deliberate role modeling. Explicit rewards. 3. 4.Embedding Organizational Culture 1. training programs. Formal statements The design of physical space Slogans. language. teaching and coaching 5. acronyms.g.
measure. Leader reactions to critical incidents and organizational crises 9. and retirement of people . layoffs. development.Embedding Organizational Culture 6. or outcomes that leaders pay attention to. selection. Organizational goals and the associated criteria used for recruitment. Stories. The workflow and organizational structure 10. legends. Organizational systems and procedures 11. and control 8. The organizational activities. processes. and myths about key people and events 7. promotion.
Exhibit 9-1 Layers of Culture Artifacts of Organizational Culture Material Symbols Language Rituals Stories Organizational Culture Beliefs Values Assumptions .
hear. long-lasting beliefs about what is important Assumptions ± The taken-for-granted notions of how something should be in an organization . and feel Beliefs ± The understandings of how objects and ideas relate to each other Values ± The stable.Levels of Culture Artifacts ± Aspects of an organization s culture that you see.
analysis. Outcome orientation ± The degree to which management focuses on results or outcomes rather than on technique and process.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. People orientation ± The degree to which management decisions take into consideration the effect of outcomes on people within the organization. . and attention to detail.
Characteristics of Organizational Culture Team orientation ± The degree to which work activities are organized around teams rather than individuals. . Stability ± The degree to which organizational activities emphasize maintaining the status quo in contrast to growth. Aggressiveness ± The degree to which people are aggressive and competitive rather than easygoing.
greet him. you will look him in the eye." This pledge is what we call our "10-foot attitude. From Walmart. Sam Walton.Wal-Mart s 10-foot Rule One of our secrets to customer service is the 10-foot rule. and ask him if you can help him. During his many store visits. he encouraged associates to take a pledge with him: "I want you to promise that whenever you come within 10 feet of a customer.com ." and it was something Sam had practiced since childhood. handed down to us by our founder.
Types of Organizational Culture Constructive Passive-defensive Aggressive-defensive .
self-actualizing. humanistic-encouraging. and affiliative .Types of Organizational Culture Constructive Employees are encouraged to interact with others Associated with achievement.
Types of Organizational Culture Passive-defensive Employees must interact with others in ways that do not threaten their own job security Associated with approval. convention. dependent. and avoidance .
Types of Organizational Culture Aggressive-defensive Employees approach tasks in forceful ways to protect their status and job security Associated with oppositional power. is competitive and perfectionistic .
job satisfaction. Significantly correlated with employee behavior and attitudes 2. Organizational commitment. Did not predict financial performance 4. intention to quit. Mergers frequently failed due to incompatible cultures .Outcomes Associated with Organizational Culture 1. and turnover impacted 3.
± Subcultures Tend to develop in large organizations to reflect common problems. Core values or dominant (primary) values are accepted throughout the organization. situations.Do Organizations Have Uniform Cultures? Organizational culture represents a common perception held by the organization members. ± Dominant culture Expresses the core values that are shared by a majority of the organization s members. or experiences. .
It has a boundary-defining role. It enhances social system stability. It conveys a sense of identity for organization members. It facilitates the generation of commitment to something larger than one s individual self-interest. .Culture s Functions Culture is the social glue that helps hold an organization together by providing appropriate standards for what employees should say or do. It serves as a sense-making and control mechanism that guides and shapes the attitudes and behaviour of employees.
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 .Culture as a Liability Culture can have dysfunctional aspects in some instances ± Culture as a Barrier to Change When organization is undergoing change.
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 .
Select. setting the tone through their behaviour. and rituals to replace those currently in vogue. Redesign socialization processes to align with the new values. Create new stories.How to Change Culture Have top-management people become positive role models. . symbols. promote. and support employees who espouse the new values that are sought.
Shake up current subcultures through transfers. and/or terminations. job rotation. . Work to get peer group consensus through utilization of employee participation and creation of a climate with a high level of trust.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.
Many rewards are team based. Extensive rules and regulations exist for all employees. change. . Individual effort is encouraged. Creative decisions. Employees are encouraged to ³ run with ´ ideas. and risks are not encouraged. Employees are encouraged to stay within their own department. Organization B Management encourages and rewards risk-taking and change. and failures are treated as ³ learning experiences.Contrasting Organizational Cultures Organization A Managers must fully document all decisions. Productivity is valued over employee morale. Team members are encouraged to interact with people at all levels and functions. ´ Employees have few rules and regulations to follow. Productivity is balanced with treating its people right.
Point-CounterPoint Why Culture Doesn t Change s Culture develops over many years. and becomes part of how the organization thinks and feels s Selection and promotion policies guarantee survival of culture s Top management chooses managers likely to maintain culture When Culture Can Change s There is a dramatic crisis s There is a turnover in leadership s The organization is young and small s There is a weak culture .
. with the impact being greater for stronger cultures.Summary and Implications Employees form an overall subjective perception of the organization based on such factors as degree of risk tolerance. ± These favourable or unfavourable perceptions then affect employee performance and satisfaction. Just as people s personalities tend to be stable over time. ± This overall perception becomes. so too do strong cultures. ± This makes strong cultures difficult for managers to change. the organization s culture or personality. team emphasis. and support of people. in effect.
Summary and Implications One of the more important managerial implications of organizational culture relates to selection decisions. An employee's performance depends to a considerable degree on knowing what he should or should not do. . ± Hiring individuals whose values don't align with those of the organization is not good.
HR Implications: Creating an Ethical Culture Visibly reward ethical acts and punish unethical ones. ± Performance appraisals should consider how decisions and behaviour measure against the organization s code of ethics. . ± Employees need to be able to discuss ethical dilemmas and report unethical behaviour without fear of punishment. Provide protective mechanisms.
ORGANISATION BEHAVIOUR .
ORGANISATION BEHAVIOUR Organisation Behaviour is concerned with the study of what people do in an organisation and how that behaviour affects the performance of the organisation.9) . (Robbins: 1998.
. groups and structure have on behaviour within organizations. for the purpose of applying such knowledge toward improving an organization s effectiveness. . . a field of study that investigates the impact that individuals.Organizational Behaviour .
ORGANISATION BEHAVIOUR The study of Organisational Behaviour involves: consideration of the interaction among the formal structure (organisational context in which the process of management takes place) the tasks to be undertaken the technology employed and the methods of carrying out work the behaviour of people the process of management the external environment .
and patterns of management. on behaviour.impact of organisation structure and design.formal and informal.ORGANISATION BEHAVIOUR Interrelated dimensions influencing behaviour: The Individual . .technological and scientific development. The Environment . Understanding of groups complements a knowledge of individual behaviour. The Group . economic activity. The Organisation .working environment should satisfy individual needs as well as attainment of organisational goals. governmental actions.
Why Do We Study OB? To learn about yourself and how to deal with others You are part of an organization now. and will continue to be a part of various organizations Organizations are increasingly expecting individuals to be able to work in teams. at least some of the time Some of you may want to be managers or entrepreneurs .
Challenges Facing the Workplace Organizational Level Productivity Developing Effective Employees Global Competition Managing in the Global Village Group Level Working With Others Workforce Diversity Workplace Individual Level Job Satisfaction Empowerment Behaving Ethically .
Today s Challenges in the Workplace Challenges at the Individual Level ± Job Satisfaction ± Empowerment ± Behaving Ethically Challenges at the Group Level ± Working With Others ± Workforce Diversity .
Today s Challenges in the Workplace Challenges at the Organizational Level ± Productivity ± Developing Effective Employees Absenteeism Turnover Organizational Citizenship ± Competition From the Global Environment ± Managing and Working in a Global Village .
Productivity Productivity ± A performance measure including effectiveness and efficiency Effectiveness ± Achievement of goals Efficiency ± The ratio of effective work output to the input required to produce the work .
Effective Employees Absenteeism ± Failure to report to work Turnover ± Voluntary and involuntary permanent withdrawal from the organization Organizational citizenship behaviour ± Discretionary behaviour that is not part of an employee s formal job requirements. but is helpful to the organization .
based on scientific evidence OB has few absolutes OB takes a contingency approach ± Considers behaviour in context .The Rigour of OB OB looks at consistencies ± What is common about behaviour. and helps predictability? OB is more than common sense ± Systematic study.
attempting to attribute causes and effects and drawing conclusions based on scientific evidence Behaviour is generally predictable There are differences between individuals There are fundamental consistencies There are rules (written & unwritten) in almost every setting .Beyond Common Sense Systematic Study ± Looking at relationships.
.Summary and Implications OB is a field of study that investigates the impact that individuals. OB focuses on improving productivity. groups. OB uses systematic study to improve predictions of behaviour. and increasing employee job satisfaction and organizational commitment. and structure have on behaviour within an organization. reducing absenteeism and turnover.
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