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BDM 212 : Organisational Behavior

CHAPTER 10Organisational Culture

2010 Cosmopoint

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Slide 2 of 38 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 Alive1.7 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 Culture2.3 Reasons for the Growing Interest in Spirituality

2.4 How Organizational Cultures Have an Impact on

Performance and Satisfaction

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Slide 3 of 38 2010 Cosmopoint Topics

This chapter aims to:

Chapter Aims

1. Define the common characteristics making up

organisational culture

2. Contrast strong and weak culture

3. Identify the functional and dysfunctional effects oforganisational culture on people and the organisation.

4. Explain the factors that maintain an organisations

culture

5. Clarify how culture is transmitted to employees6. 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?

Characteristics:

1. Innovation and risktaking

2. Attention to detail3. Outcome orientation

4. People orientation

5. Team orientation

6. Aggressiveness

7. Stability

Organizational Culture

A common perception held bythe organizations members; asystem of shared meaning.

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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 departmentsand 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, 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 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 areencouraged 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 thatare shared by a majority ofthe organizations members.

Subcultures

Minicultures within anorganization, typically definedby department designationsand geographical separation.

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Do Organizations Have Uniform Cultures? (contd)

Core Values

The primary or dominant values that are acceptedthroughout the organization.

Strong Culture

A culture in which thecore values are intenselyheld 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 onemployees 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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1.5 How Culture Begins

Founders hire and keep only

employees who think and feel thesame way they do.

Founders indoctrinate andsocialize these employees to their

way of thinking and feeling. The founders own behavior acts

as a role model that encouragesemployees to identify with them

and thereby internalize theirbeliefs, 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 socializationprocess that occurs before a newemployee joins the organization.

Metamorphosis StageThe stage in the socialization process in which a new employeechanges and adjusts to the work, work group, and organization.

Encounter Stage

The stage in the socialization process in which anew employee sees what the organization isreally like and confronts the possibility thatexpectations and reality may diverge.

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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 EthicalStandards

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 bymeaningful work that takes place in the context of the community.

Characteristics:

Strong sense of purpose

Focus on individualdevelopment

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 turbulentpace 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 ofmore material acquisitions leaves them unfulfilled.

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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.

Documents

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