BDM 212 : Organisational Behavior

CHAPTER 10 Organisational Culture

2010 Cosmopoint

Topic Outlines

1.1 What Is Organizational Culture? 1.2 Contrasting Organizational Cultures 1.3 Do Organizations Have Uniform Cultures? 1.4 What Do Cultures Do? 1.5 How Culture Begins 1.6 Keeping Culture Alive 1.7 Stages in the Socialization Process 1.8 A Socialization Model 1.9 How Organization Cultures Form 2.0 How Employees Learn Culture 2.1 Creating An Ethical Organizational Culture 2.2 Spirituality and Organizational Culture 2.3 Reasons for the Growing Interest in Spirituality 2.4 How Organizational Cultures Have an Impact on Performance and Satisfaction

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Chapter Aims

This chapter aims to:

1. Define the common characteristics making up organisational culture 2. Contrast strong and weak culture 3. Identify the functional and dysfunctional effects of organisational culture on people and the organisation. 4. Explain the factors that maintain an organisations culture 5. Clarify how culture is transmitted to employees 6. Outline the various socialisation alternatives available to management 7. Describe a customer-responsive culture 8. Identify characteristics of a spiritual culture.
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1.1

What Is Organizational Culture?

Organizational Culture
A common perception held by the organizations members; a system of shared meaning. Characteristics:
1. Innovation and risk taking 2. Attention to detail 3. Outcome orientation 4. People orientation 5. Team orientation 6. Aggressiveness

7. Stability

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1.2

Contrasting Organizational Cultures

Organization A This organization is a manufacturing firm. Managers are expected to fully document all decisions; and good managers are those who can provide detailed data to support their recommendations. Creative decisions that incur significant change or risk are not encouraged. Because managers of failed projects are openly criticized and penalized, managers try not to implement ideas that deviate much from the status quo. One lower-level manager quoted an often used phrase in the company: If it aint broke, dont fix it.

There are extensive rules and regulations in this firm that employees are required to follow. Managers supervise employees closely to ensure there are no deviations. Management is concerned with high productivity, regardless of the impact on employee morale or turnover.
Work activities are designed around individuals. There are distinct departments and lines of authority, and employees are expected to minimize formal contact with other employees outside their functional area or line of command. Performance evaluations and rewards emphasize individual effort, although seniority tends to be the primary factor in the determination of pay raises and promotions.

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Contrasting Organizational Cultures (contd)

Organization B This organization is also a manufacturing firm. Here, however, management encourages and rewards risk taking and change. Decisions based on intuition are valued as much as those that are well rationalized. Management prides itself on its history of experimenting with new technologies and its success in regularly introducing innovation products. Managers or employees who have a good idea are encouraged to run with it. And failures are treated as learning experiences. The company prides itself on being market-driven and rapidly responsive to the changing needs of its customers. There are few rules and regulations for employees to follow, and supervision is loose because management believes that its employees are hardworking and trustworthy. Management is concerned with high productivity, but believes that this comes through treating its people right. The company is proud of its reputation as being a good place to work. Job activities are designed around work teams, and team members are encouraged to interact with people across functions and authority levels. Employees talk positively about the competition between teams. Individuals and teams have goals, and bonuses are based on achievement of these outcomes. Employees are given considerable autonomy in choosing the means by which the goals are attained.

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1.3

Organizations Have Uniform Cultures?

Dominant Culture Expresses the core values that are shared by a majority of the organizations members.

Subcultures Minicultures within an organization, typically defined by department designations and geographical separation.
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Do Organizations Have Uniform Cultures? (contd)

Core Values The primary or dominant values that are accepted throughout the organization.

Strong Culture A culture in which the core values are intensely held and widely shared.

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What Is Organizational Culture? (contd)

Culture Versus Formalization A strong culture increases behavioral consistency and can act as a substitute for formalization. Organizational Culture Versus National Culture National culture has a greater impact on employees than does their organizations culture. Nationals selected to work for foreign companies may be atypical of the local/native population.

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1.4

What Do Cultures Do?

Cultures Functions:
1. Defines the boundary between one organization and others. 2. Conveys a sense of identity for its members. 3. Facilitates the generation of commitment to something larger than self-interest. 4. Enhances the stability of the social system. 5. Serves as a sense-making and control mechanism for fitting employees in the organization.

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What Do Cultures Do?

Culture as a Liability:
1. Barrier to change 2. Barrier to diversity

3. Barrier to acquisitions and mergers

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1.5

How Culture Begins

Founders hire and keep only employees who think and feel the same way they do. Founders indoctrinate and socialize these employees to their way of thinking and feeling.

The founders own behavior acts as a role model that encourages employees to identify with them and thereby internalize their beliefs, values, and assumptions.

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1.6

Keeping Culture Alive

Selection Concern with how well the candidates will fit into the organization. Provides information to candidates about the organization. Top Management Senior executives help establish behavioral norms that are adopted by the organization. Socialization The process that helps new employees adapt to the organizations culture.

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1.7

Stages in the Socialization Process

Prearrival Stage
The period of learning in the socialization process that occurs before a new employee joins the organization.

Encounter Stage
The stage in the socialization process in which a new employee sees what the organization is really like and confronts the possibility that expectations and reality may diverge.

Metamorphosis Stage
The stage in the socialization process in which a new employee changes and adjusts to the work, work group, and organization.

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Topics

1.8

A Socialization Model

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1.9

How Organization Cultures Form

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2.0

How Employees Learn Culture

Stories Rituals Material Symbols Language

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2.1

Creating An Ethical Organizational Culture Characteristics of Organizations that Develop High Ethical Standards High tolerance for risk Low to moderate in aggressiveness Focus on means as well as outcomes Managerial Practices Promoting an Ethical Culture Being a visible role model Communicating ethical expectations Providing ethical training Rewarding ethical acts and punishing unethical ones Providing protective mechanisms

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2.2

Spirituality and Organizational Culture

Workplace Spirituality The recognition that people have an inner life that nourishes and is nourished by meaningful work that takes place in the context of the community.

Characteristics:
Strong sense of purpose Focus on individual development

Trust and openness

Employee empowerment Toleration of employee expression

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2.3

Reasons for the Growing Interest in Spirituality

As a counterbalance to the pressures and stress of a turbulent pace of life and the lack of community many people feel and their increased need for involvement and connection. Formalized religion hasnt worked for many people. Job demands have made the workplace dominant in many peoples lives, yet they continue to question the meaning of work. The desire to integrate personal life values with ones professional life. An increasing number of people are finding that the pursuit of more material acquisitions leaves them unfulfilled.

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Topics

2.4

How Organizational Cultures Have an Impact on Performance and Satisfaction

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REFERENCES

Stephen P, Robbins, Organizational Behavior, 11th Edition, Pearson.

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