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ORGANIZATIONAL BEHAVIOR
W W W . P R E N H A L L . C O M / R O B B I N S
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Van City’s Corporate Culture
Vancouver City Savings Credit Union has re-affirmed its
corporate culture to improve customer service and employee
relations.
Courtesy of VanCity
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Organizational Culture Deine!
The basic pattern of shared assumptions, values, and
beliefs considered to be the correct way of thinking
about and acting on problems and opportunities facing
the organiation.
Courtesy of VanCity
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!"#$%$%& '(&)%$S)T$'%)* CU*TU(""Cooke and (osseau# $%&&'
“the ways of thinking, behaving and believing
that members of a social unit have in common”
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The +asic #unctions of 'rganiational Culture
'rganiational
Culture+asic functions
rovides a
sense of identity for
members
"nhancescommitment
to the
organiations
mission
Clarifiesand
reinforces
standards
of behavior
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Le(els o )ulture
National culture
Occupational culture
Organisational culture
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hysical Structures
*anguage
(ituals and
Ceremonies
Stories and *egends
BeliesBelies
ValuesValues
Assu*ptions Assu*ptions
)rtifacts of
'rganiational
Culture
'rganiational'rganiational
CultureCulture
Ele*ents o Organizational Culture
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Ran! +er),ant Ban-’s Culture
/hen employees at (and
0erchant +ank received a
booklet entitled The Complete
+ook of (ules, they
discovered that the pages
inside were blank. The book
was a reminder that the South
)frican financial institutions
culture encouragesemployees to make their own
decisions. Courtesy of Rand Merchant Bank
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+eaning o Cultural Content
Cultural content refers to the
relative ordering of beliefs,
values, and assumptions.
"1ample2 (and 0erchant
+anks empowermentculture
)n organiation emphasies
only a handful of values out
of doens or hundreds ofvalues that e1ist.
Courtesy of Rand Merchant Bank
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Organizational Culture
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Todays 0ergers and )c3uisitions2 /ill They be Tomorrows Culture Clashes4
This bank…
Citicorp
+ank )merica
+ank 'ne
#irst Union
Merged with…
Travelers
%ations +ank
#irst Chicago %+!
Corestates
To become…
Citigroup
+ankamerica
+ank 'ne
#irst Union
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Organizational .u/)ultures
*ocated throughout the organiation
Can enhance or oppose 5countercultures6 firms
dominant culture
Two functions of countercultures2– provide surveillance and crii!ue" e#ics
– source o$ e%er&in& values
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Artia)ts0 .tories an! Legen!s
Social prescriptions of desired 5undesired6
behavior
Stories about the past corporate incidents
serve as powerful social prescriptions of the the
things should be done.
0ost effective stories and legends2– 'escri(e real people– Assu%ed o (e rue– )no*n #rouou #e or&ani+aion
– Are prescripive
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Artia)ts0 Rituals an! Cere*onies
(ituals– pro&ra%%ed rouines
– ,e&." #o* visiors are &reeed-"dress code"
Ceremonies
– planned aciviies $or an audience
– ,e&." a*ard cere%onies-
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Artia)ts0 Organizational Language
/ords used to address people, describecustomers, etc.
$s boss happening4 7as your boss come4
romo romotion
)ps )dvertising positioningstatement
Cool "verything is fine
&oogly Tricky situation
)ccount client
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Artia)ts0 1,ysi)al .tru)tures2.y*/ols
+uilding structure -- may shape and reflectculture
– Oale0s 1Inerplanear Head!uarers2 in3oo#ill Ranc#" Cali$ornia
'ffice design conveys cultural meaning
– 3urniure" o4ce si+e" *all #an&in&s
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Beneits o .trong Corporate Cultures
Strong'rganiational
Culture
SocialSocial
ControlControl
$mproves$mprovesSense-0akingSense-0aking
SocialSocial
&lue&lue
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1ro/le*s 3it, .trong Cultures
8. Culture content might be misaligned with the
organiations environment.
9. Strong cultures may focus on mental models that
could be limiting
:. Strong cultures suppress dissenting values fromsubcultures.
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A!apti(e Organizational Cultures
"1ternal focus -- firms success depends on
continuous change
#ocus on processes more than goals
Strong sense of ownership
roactive --seek out opportunities
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+erging 4H1 5ay6 3it, Co*pa7 Culture
7ewlett-ackard C"' Carly #iorina
5left6 wanted to in;ect Compa3
Computers responsiveness into 7-
s culture by merging the two firms.
0eanwhile, Compa3 suffered fromclashing cultures a few years earlier
when ac3uiring !igital "3uipment
Corp., so Compa3 e1ecutives were
careful to ensure the merger with 7-
was culturally feasible. © Reuters/New media, Inc./ CORBIS
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Bi)ultural Au!it
art of
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+erging Organizational Cultures
Assi*ilation Assi*ilation
De)ulturationDe)ulturation
A)7uire! )o*pany e*/ra)esa)7uiring ir*’s )ultural (alues
A)7uiring ir* i*poses its )ulture on
un3illing a)7uire! ir*
IntegrationIntegrationCultures )o*/ine! into a ne3)o*posite )ulture
.eparation.eparation+erging )o*panies re*ainseparate 3it, t,eir o3n )ulture
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StrengtheningStrengthening'rganiational'rganiational
CultureCulture
8oun!ers8oun!ersan! lea!ersan! lea!ers
CulturallyCulturally)onsistent)onsistentre3ar!sre3ar!s
.ta/le.ta/le3or-or)e3or-or)e
.ele)tion.ele)tionan!an!
so)ializationso)ialization
+anaging t,e+anaging t,e)ultural)ulturalnet3or-net3or-
.trengt,ening Organizational Culture
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Organizational .o)ialization Deine!
The process by which individuals learn the
values, e1pected behaviors, and social
knowledge necessary to assume their roles in
the organiation
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.o)ialization0 Learning 9 A!:ust*ent
*earning rocess
– Ne*co%ers $or% a co&niive %ap o$ #eor&ani+aion0s p#sical" social" andsrae&ic/culural dna%ics
)d;ustment rocess
– Ne*co%ers need o adap o #eir ne* *orenviron%en
; %ew work roles
; %ew team norms
; %ew corporate cultural values
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; Insi!er Insi!er
; C,anging rolesC,anging roles
an! /e,a(ior an! /e,a(ior
; Resol(ingResol(ing
)onli)ts)onli)ts
.tages o .o)ialization
; Ne3)o*er Ne3)o*er
; TestingTesting
e
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$ndividual$ndividual
)ttracts)ttracts
'rganiation'rganiation
$ndividual$ndividual
SelectsSelects
'rganiation'rganiation
'rganiation'rganiation
)ttracts)ttracts
$ndividual$ndividual
'rganiation'rganiation
SelectsSelects
$ndividual$ndividual
C o n f l i c t )
C o n f l i c t +
Conflict C Conflict !
1re=e*ploy*ent .o)ialization Conli)ts
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The rocess of $nnovation
Stage 8
Settingthe
)genda
Stage 9
Settingthe
Stage
Stage :
roducingthe
$deas
Stage >
Testing and$mplementing
the $deas
Stage ?
'utcome)ssessment
"nd
"ndSuccess
#ailure
rogress
0otivation
$ndividual
or Teamroductivity
(esources
Skills
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Creating a Custo*er=Responsi(e Culture
@ey Variables Shaping Customer-(esponsive
Cultures
5. :#e pes o$ e%ploees #ired ( #eor&ani+aion.
7. Lo* $or%ali+aion; #e $reedo% o %ee cuso%er
service re!uire%ens.9. E%po*erin& e%ploees *i# decisionood lisenin& sills o undersand cuso%er%essa&es.
?. Role clari #a allo*s service e%ploees o acas 1(oundar spanners.2
@. E%ploees *#o en&a&e in or&ani+aionalcii+ens#ip (e#aviors.
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Creating An Et,i)al Organizational Culture
Characteristics of 'rganiations that !evelop
7igh "thical Standards
– Hi olerance $or ris
– Lo* o %oderae in a&&ressiveness
– 3ocus on %eans as *ell as ouco%es
0anagerial ractices romoting an "thical
Culture
– Bein& a visi(le role %odel.
– Co%%unicain& e#ical e6pecaions.
– Providin& e#ical rainin&.
– isi(l re*ardin& e#ical acs and punis#in&une#ical ones.
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5,at Is Organizational Culture>
Characteristics2
8. $nnovation and risktaking
9. )ttention to detail
:. 'utcome orientation
>. eople orientation
?. Team orientationA. )ggressiveness
B. Stability
Characteristics2
8. $nnovation and risktaking
9. )ttention to detail
:. 'utcome orientation
>. eople orientation
?. Team orientation
A. )ggressiveness
B. Stability
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Institutionalization0 A 8orerunner o Culture
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5,at Is Organizational Culture> ")ont’!'
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5,at Is Organizational Culture> ")ont’!'
Culture Versus #ormaliation
– A sron& culure increases (e#avioralconsisenc and can ac as a su(siue $or$or%ali+aion.
'rganiational Culture Versus %ational Culture
– Naional culure #as a &reaer i%pac one%ploees #an does #eir or&ani+aion0sculure.
– Naionals seleced o *or $or $orei&n co%panies
%a (e apical o$ #e local/naive populaion.
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5,at Do Cultures Do>
Cultures #unctions2
8. !efines the boundary between one
organiation and others.
9. Conveys a sense of identity for its members.
:. #acilitates the generation of commitment to
something larger than self-interest.
>. "nhances the stability of the social system.
Cultures #unctions2
8. !efines the boundary between one
organiation and others.
9. Conveys a sense of identity for its members.
:. #acilitates the generation of commitment to
something larger than self-interest.
>. "nhances the stability of the social system.
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5,at Do Cultures Do>
Culture as a *iability2
8. +arrier to change9. +arrier to diversity
:. +arrier to ac3uisitions and
mergers
Culture as a *iability2
8. +arrier to change
9. +arrier to diversity
:. +arrier to ac3uisitions and
mergers
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Creating a Custo*er=Responsi(e Culture
0anagerial )ctions2
; Select new employees with personality and
attitudes consistent with high service
orientation.
; Train and socialie current employees to be
more customer focused.
; Change organiational structure to give
employees more control.
; "mpower employees to make decision about
their ;obs.
0anagerial )ctions2
; Select new employees with personality and
attitudes consistent with high service
orientation.
; Train and socialie current employees to be
more customer focused.
; Change organiational structure to give
employees more control.; "mpower employees to make decision about
their ;obs.
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?eeping Culture Ali(e
Selection
– Concerned *i# #o* *ell #e candidaes *ill ino #e or&ani+aion.
– Provides in$or%aion o candidaes a(ou #eor&ani+aion.
Top 0anagement
– Senior e6ecuives #elp esa(lis# (e#avioralnor%s #a are adoped ( #e or&ani+aion.
Socialiation
– :#e process #a #elps ne* e%ploees adap o#e or&ani+aion0s culure.
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.tages in t,e .o)ialization 1ro)ess
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A .o)ialization +o!el
" 7 $ + $ T 18-2
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Entry .o)ialization Options
; #ormal versus $nformal
; $ndividual versus Collective
; #i1ed versus Variable
; Serial versus (andom
; $nvestiture versus !ivestiture
; #ormal versus $nformal
; $ndividual versus Collective
; #i1ed versus Variable
; Serial versus (andom
; $nvestiture versus !ivestiture
" 7 $ + $ T 18-3
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Ho3 Organization Cultures 8or*
" 7 $ + $ T 18-4
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Ho3 E*ployees Learn Culture
; Stories
; (ituals
; 0aterial Symbols
; *anguage
; Stories
; (ituals
; 0aterial Symbols
; *anguage
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Creating a Custo*er=Responsi(e Culture
0anagerial )ctions 5contd6 2
; *ead by conveying a customer-focused vision
and demonstrating commitment to customers.
; Conduct performance appraisals based on
customer-focused employee behaviors.
; rovide ongoing recognition for employees who
make special efforts to please customers.
0anagerial )ctions 5contd6 2
; *ead by conveying a customer-focused vision
and demonstrating commitment to customers.
; Conduct performance appraisals based oncustomer-focused employee behaviors.
; rovide ongoing recognition for employees who
make special efforts to please customers.
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.pirituality an! Organizational Culture
Characteristics2
; Strong sense of
purpose; #ocus on individual
development
; Trust and openness
; "mployee
empowerment; Toleration of employee
e1pression
Characteristics2
; Strong sense ofpurpose
; #ocus on individualdevelopment
; Trust and openness
; "mployee
empowerment; Toleration of employee
e1pression
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Ho3 Organizational Cultures Ha(e an I*pa)t
on 1eror*an)e an! .atisa)tion
" 7 $ + $ T 18-7