Social Systems and

Organizational
Culture
 “Researchers have found that
companies with the strongest culture –
where values and norms are widely
shared and strongly held- tend to
outperform their peers”
-Adam Zuckerman
 THE EXTERNAL ENVIRONMENT
• Forces and institutions outside the organization that may
affect organizational performance
- Specific environment – includes those
constituencies that have a direct and immediate
impact on managers’ decisions and actions
• customers - absorb organization’s outputs
• suppliers – provide material and equipment
• competitors – provide similar services/products
• pressure groups – special-interest groups
 THE EXTERNAL ENVIRONMENT

• General Environment – includes the broad conditions

that may affect organizations
- Economic conditions – interest rates,
changes in disposable income, and stage of
the business cycle
- Political/legal conditions – federal,
provincial, and local governments and
general stability
 THE EXTERNAL ENVIRONMENT
• General environment (continued)
- Socio-cultural conditions – expectation of society
(values, customs and tastes)
- Demographic conditions – trends in the physical
characteristics of a population
- Technological conditions – most rapidly changing
aspect of the general environment
- Global conditions – increasing number of global
competitors and consumer markets
 Cultural Diversity
Subgroups
• Job related
• Non job related (culture, ethnicity,
socioeconomics, sex, race, hometown etc.)
 Corporate Social Responsibility
• Howard R. Bowen is one of the pioneers who
attempted to conceptualize and define CSR.
Bowens’ initial definition of CSR was,
“Obligation of business to pursue those
policies, to make those decisions, or to follow
those lines of action which are desirable in
terms of the objectives and values of our
society”.
 Major Dimensions of CSR
• Obligation to society
• Stakeholders’ involvement
• Improving the quality of life
• Economic development
• Ethical business practice
• Law abiding
• Voluntariness
• Human rights
• Protection of environment
• Transparency
• Accountability
 Mentors
A mentor is a role model who guides another
employee ( a protégé) by sharing valuable
advice on roles to play and behaviour to avoid.
Mentors teach, advice, coach, support,
encourage, and sponsor their protégés so as to
expedite their career progress.
 Tips for Protégés Using Mentors
• Select more than one mentor. Draw your mentors
from your peer group, higher management levels, or
even professional colleagues outside the organization
• Consult them periodically. Discipline yourself to meet
with them at regular intervals.
• Brief them on your progress, current issues, and
problems you are facing.
• Seek feedback from them. Inquire how your work is
regarded. Show them samples of your work, and aske
for suggestions for improvement.
 Tips for Protégés Using Mentors
(continued)
• Share a summary of your own strengths and
weakness, and your action plan for overcoming your
limitations. Compare your view with their perceptions
of your strength, and probe them for improvement
ideas for the areas where you need work.
• Ask your mentors to watch for new opportunities
opening up that might use your skills.
• Seek their advice on career-building moves that will
enhance your promotability.
 Tips for Mentors Who Have Protégés
• Identify protégés strength, and help them build on
them.
• Foster self-discovery by asking insight-generating
questions.
• Let the protégé make decisions, for that will increase
ownership.
• Choose your words carefully; avoid being directive or
judgemental.
• Listen; watch from a distance; intervene only when
necessary.
 Tips for Mentors Who Have Protégés
(continued)

• Don’t place yourself on a pedestal; avoid sounding

like an expert.
• Be real; be authentic; be supportive; eliminate signs
of power.
• Be open to alternative views and choices; help the
protégé refine them.
 Status
Status is the social rank of a person in a group. It
is a mark of the amount of recognition, honour,
esteem and acceptance given to a person.
 Source of Status
• Education
• Job level
• Persons ability
• Job skill
• Type of work
• Pay
• Age/seniority
• Stock option
 Typical Symbols of Status
• Furniture, such as a mahogany desk or a conference
table.
• Interior decorations, such as carpeting, draperies, and
artwork.
• Location of workplace, such as a corner office or an
office having a window with a view.
• Facilities at workplace, such as a computer terminal or
fax machine
• Quality and newness of equipment used, such as a new
vehicle or tools.
• Type of clothes normally worn, such as a suit.
 Typical Symbols of Status
(continued)
• Privileges given, such as a club membership or
company automobile.
• Job title or organizational level, such as vice president.
• Employees assigned, such as a private secretary.
• Degree of financial discretion, such as authorizing up
to $5,000 expenditures.
• Organizational membership, such as a position on the
executive committee.
WHAT IS ORGANIZATIONAL CULTURE?

• A system of shared meaning and beliefs held by

organizational members that determines, in large
degree, how the act
• Composite picture of organizational culture may
be derived from seven dimensions
• Organization’s personality often shaped by one of
these dimensions
 THE CULTURE OF AN ORGANIZATION
• Strong Versus Weak Cultures
- In strong cultures, key values are deeply held and
widely shared
- Strong cultures have greater influence on employees
than do weak cultures
- Employees more committed to organizations with
strong cultures
- Strong cultures are associated with high
organizational performance
- Most organizations have moderate to strong cultures
 THE CULTURE OF AN ORGANIZATION
(continued)
• The Source of Culture
– Usually reflects the vision or mission of the founder
• How Employees Learn Culture
- Stories – a narrative of significant events or people
- Rituals – repetitive sequences of activities
- Material Symbols – essential in creating an
organization’s personality
- Language – organizations develop unique jargon
 THE CULTURE OF AN ORGANIZATION
(continued)
• How Culture Affects Managers
– Establishes appropriate managerial behaviour
– Constrains decision making in all management
functions
• Planning – degree of risk that plans should contain
• Organizing - degree of autonomy given to employees
• Leading – degree of concern for job satisfaction
• Controlling – reliance on external or internal controls
 Characteristics of Organizational
Cultures
• Distinctive . Fingerprint/snowflake
• Stable. can only change slowly over time
• Symbolic . Representation of beliefs and values
• No one type is best . Depends on goals, industry,
competition, other factors
• Integrated.
• Accepted . Accepted by all employees
• A reflection of top management
• Subcultures
• Of varying strength
 Ethical Culture
• Content and strength of an Organization’s Culture
influences its ethical climate and ethical behaviour.
• Strong culture and high ethical standard has positive
influence on employees.
• Good ethical culture includes: High risk tolerance, low
to moderate in aggressiveness, focussed on means as
well as outcome, Attention to how goals are achieved
and what goals are achieved.
• Andrew Fastow- Former Chief Financial officer of
Enron Corporation. “When Enron says it’s going to rip
your face of, I will rip your face off”
How to create Ethical culture

– Be a visible role model

– Communicate ethical expectations
– Provide ethics training
– Reward ethical acts and punish
unethical acts
 Innovative Culture
• Innovative Culture is characterized by the following
– Challenge and involvement: are employees involved,
motivated and committed to long-term goals and success
– Freedom: Define work, exercise discretion and take initiative
– Trust and Openness: Supportive and respectful
– Idea time; time for thinking
– Playfulness/humour
– Conflict resolution: good of the org versus personal interest
– Debate
– Risk-taking
 Customer-Responsive Culture
• Characteristics of customer-responsive culture:
– Type of employee: Hire people with personality and
attitude consistent with customer service
– Type of job environment: Avoid rigid rules and
procedures, employees have control to satisfy
customers
– Empowerment: Service contact Employees given
authority to make day to day decisions.
– Role clarity: Reduce uncertainty by training on
product, listening and other behavioural skills.
– Consistent desire to satisfy and delight customers
 Spiritual Organization
• Spiritual org have five cultural characters:
– Strong sense of purpose
– Focus on individual development
– Trust and openness
– Employees empowerment
– Toleration of employee expression
 STAKEHOLDER RELATIONSHIP
MANAGEMENT

• Who are stakeholders?

– Any constituencies that are affected by the
organization’s decisions and actions
• Include internal and external groups
• Can influence the organization
• How can these relationships be managed?
– Four steps
• identify the stakeholders
• determine real and potential concerns of each
stakeholder group
• determine whether stakeholder is critical
• determine specific approach to manage the
relationship
- Approach to a stakeholder group based on the
importance of the group and the degree of
environment uncertainty