12-OB Chapter 9 Organizational Culture

7/28/2019 12-OB Chapter 9 Organizational Culture

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Organizational culture

Week 14- 12/12/2008


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LECTURE PLAN

1. Organisations and culture

2. What is Organizational Culture

3. Organizational cultures functions

4. Creating & Sustaining Culture


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ORGANISATIONS AND CULTUREWhy study culture and organisations?

Global trends increase the frequency and thedegree to which individuals from differentcultural backgrounds interact.

Perception of challenges to our societies that

cannot be tackled by one government alone. Distribution of wealth fosters global migration.

More wealth and leisure-time in some parts of theworld result in global travel.

Improved infrastructure, in particularcommunication and transport, ease the frequencyof interactions.

Global business: purchasing, production, and sales.


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Organisations are challenged by thedifferences in value-systems across cultures.For example:

The western business world (Anglos. & North

Europeans) is dominated by the protestant workethic. Other cultures may mistrust the individualprofit motive as value.

There may be different perceptions of the linebetween corruption and networking, and the level

to which gift-giving/bribes are accepted as a wayof doing business.

The family plays different roles in the professionallife across cultures.


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Organisations are challenged by thedifferences in value-systems within theorganisation. For instance, the need for achievement differs.

Therefore, career prospects may not be anappropriate reward.

Furthermore, individuals may differ with regard totheir perception of control over their environment,

and therefore, their ability to achieve something. Individuals from different cultural backgrounds

may have different expectations with regard to jobsecurity, personal relations in the work-place etc.


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Organisations think of managing culturewhen they:

Operate in multiple cultural contexts, i.e. purchase,

produce or sell in different countries, or

Employ a diverse work-force.

Usually, organisations follow one of threeapproaches:

Ignore cultural differences: associated with

ignorance.

Minimise (the frictions from) cultural differences,which is often associated with ethnocentrism.

(Appreciate and) utilise cultural differences.


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DEFINITIONS OF O.C.

Culture is the pattern of shared beliefs and values that give

members of an institution meaning, and provide them with the

rules of behaviour in their organization.(Davis, 1984,1).

Culture is the set of understandings or meanings shared by agroup of people. The meanings are largely tacit among themembers, are clearly relevant to a particular group, and aredistinctive to the group.(Louis, 1985, 74).

Culture is a loosely structured and incompletely shared systemthat emerges dynamically as cultural members experience eachother, events, and the organizations contextual features.(In Martin,2002).


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Culture characteristics

Innovation and risk taking

Attention to detail

Outcome orientationPeople orientation

Team orientation

AggressivenessStability


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Contrasting Organizational Cultures

Organization AThis 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 deviatemuch 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 BThis organization is also a manufacturing firm. Here, however, managementencourages 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 thechanging 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 whichthe goals are attained.


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SCHEINS MODEL*

Artefacts, Creations

Technology, Art

Visible and Audible behaviour patterns

Values

Basic Assumptions

Relationships to the environment

Nature of reality and truth

Nature of human nature

Nature of human activity

Nature of human relationships

Visible and

decipherable

Greater levels of

awareness

Taken for

granted

Invisible

Preconscious

* Edgar Schein (1985) Organizational Culture and Leadership John Wiley and Sons.

Three levels of culture


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Artefacts: Organizational Stories

Social descriptions of desired behavior

Demonstrate that organizational objectives

are attainable

Most effective stories: Describe real people

Assumed to be true Known throughout the organization


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Artefacts: Rituals and Ceremonies

Rituals

programmed routines

e.g., conducting meetings

Ceremonies

planned activities for an audience

e.g., award ceremonies


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Artefacts: Organizational Language

Words used to address people, describe clients,

etc.

Leaders use phrases and metaphors as culturalsymbols

e.g.. General Electrics grocery store

Language also found in subcultures


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Courtesy of Oakley, Inc.

Artefacts: Physical Structures/Space

Oakley, Inc.s protective and competitive

corporate culture is apparent in its building

design and workspace. The building looks

like a vault to protect its cherished product

designs (eyewear, footwear, apparel andwatches).

Courtesy of Oakley, Inc.


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Corporate values-IBM

Dedication to every clients success

Innovation that matters, for our company and forthe world.

Trust and personal responsibility in allrelationship.


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Do Organizations Have Uniform

Cultures?Dominant CultureExpresses the core values that

are shared by a majority of the

organizations members

Subcultures

Minicultures within an

organization, typically defined bydepartment 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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Effects of

Organizational Culture

Functional

Boundary-defining role

Conveys a sense ofidentity

Facilitates the generationofcommitment

Enhances social systemstability

Sense-making andcontrol mechanism

Dysfunctional

Shared values do not

agree with organizations

effectiveness

Environment is dynamic

Entrenched culture in

rapid changeHinders ability to respond

to changes


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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 andfeeling.

The founders own behavior acts as a role

model that encourages employees to

identify with them and thereby internalizetheir beliefs, values, and assumptions.


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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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How Organization Cultures Form

E X H I B I T 174

12-OB Chapter 9 Organizational Culture

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