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2 SOCIAL SYSTEM AND

CULTURE OF AN
ORGANIZATION
LEARNING OUTCOMES

After studying this chapter, you should be able to:


Define social system
Explain the concepts of a social system
Explain role and role conflict, status and status symbols
Define organizational culture
Explain the steps in creating an organizational culture
Describe the factors shaping organizational culture

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NATURE OF A SOCIAL
SYSTEM

 A complex set of human relationships interacting in


many ways (Newstrom and Davis, 2002).

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SOCIAL SYSTEM CONCEPTS

 Social Equilibrium
– A situation in which all interdependent subsystems in
an organization are in a dynamic working balance.

 Functional and Dysfunctional Effects of Change


– Situations where changes result in favourable or
unfavourable outcomes for the organization.

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SOCIAL SYSTEM CONCEPTS
(cont.)

 Psychological and Economic Contracts


– It is an automatic and unconscious contract/
agreement made between the employer and
employee on what to give and what to expect from
each other.

 Impact of Roles
– A prescribed or expected behaviour associated with a
particular position or status in a group or organization.

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SOCIAL SYSTEM CONCEPTS
(cont.)
 Role Conflicts
– A situation in which an individual is confronted with
divergent role expectations.

– Types of Role Conflicts


• Intra-sender Role Conflict
• Inter-sender Role Conflict
• Inter-role Conflict
• Person-role Conflict
• Role Overload
• Role Ambiguity
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SOCIAL SYSTEM CONCEPTS
(cont.)

 Intra-sender Role Conflict


– Occurs when a person is expected to perform roles
which are inconsistent to one another.
 Inter-sender Role Conflict
– Happens when someone expects a role holder to
perform a role that is incongruent with a role expected
by another person.
 Inter-role Conflict
– The roles expected of a person are in conflict with the
other roles that a person holds.

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SOCIAL SYSTEM CONCEPTS
(cont.)

 Person-role Conflict
– A role that contradicts or violates the role holder’s
attitudes, values, beliefs and behaviour.
 Role Overload
– Roles that are unmanageable, where there is not
enough time for a person to perform the expected
roles.
 Role Ambiguity
– Role holder lacks sufficient information in performing
the role.

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SOCIAL SYSTEM CONCEPTS
(cont.)

 Status
– Status is the social rank of a person in a group
(Newstrom and Davis, 2002).
– The position of an individual in relation to another or
others, especially with regard to social or professional
standing.

 Status Symbols
– The visible, external things attached to a person or
workplace and serve as evidence of social rank
(Newstrom and Davis, 2002).

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ORGANIZATIONAL CULTURE

 A system of shared meaning held by members that


distinguishes the organization from other organizations
(Robbins and Judge, 2009).

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ORGANIZATIONAL CULTURE
(cont.)

Do Organizational Cultures Change?


Two ways of cultural change:
(1) Cultural Revolution
– A situation whereby cultural changes happen drastically
and dramatically, resulting in culture shocks and also
leads to high stress levels for employees.
(2) Cultural Evolution
– A cultural change that happens slowly and gradually,
leading to low levels of stress among employees
because employees are more prepared for the change.

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ORGANIZATIONAL CULTURE
(cont.)

Two Types of Organizational Culture:


Dominant Culture
– Dominant cultures are the core values that are shared
by everyone in an organization.

Subcultures
– Subcultures are developed by groups within a larger
culture to reflect common problems, situations or
consequences that are faced by members in a
department. It however will include the core values of
the organization.
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CREATING ORGANIZATIONAL
CULTURE

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FACTORS SHAPING
ORGANIZATIONAL CULTURE

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SUSTAINING
ORGANIZATIONAL CULTURE

There are six guiding principles in sustaining culture:


(1)Aligning vision and action
(2)Making incremental changes within a comprehensive
transformation strategy
(3)Fostering distributed leadership
(4)Promoting staff engagement
(5)Creating collaborative relationships
(6)Continuously assessing and learning from change

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