16-1. Copyright 2015 Pearson Education, Inc.

Transcription

1 16-1

2 Chapter 16: Organiza1onal Culture 16-2

3 Learning Objectives A6er studying this chapter, you should be able to: Ø Describe the common characteris1cs of organiza1onal culture. Ø Compare the func1onal and dysfunc1onal effects of organiza1onal culture on people and the organiza1on. Ø Iden1fy the factors that create and sustain an organiza1on s culture. Ø Show how culture is transmifed to employees. Ø Demonstrate how an ethical culture can be created. Ø Describe a posi1ve organiza1onal culture. Ø Iden1fy characteris1cs of a spiritual culture. Ø Show how na1onal culture can affect the way organiza1onal culture is transported to another country. 16-3

4 LO 1 Describe the Common Characteristics of Organizational Culture Ø A Defini1on of Organiza1onal Culture Ø Organiza(onal culture refers to a system of shared meaning held by members that dis1nguishes the organiza1on from other organiza1ons. 16-4

5 LO 1 Describe the Common Characteristics of Organizational Culture Ø Seven primary characteris1cs that capture the essence of an organiza1on s culture: 1. Innova1on and risk taking 2. AFen1on to detail 3. Outcome orienta1on 4. People orienta1on 5. Team orienta1on 6. Aggressiveness 7. Stability 16-5

6 LO 1 Describe the Common Characteristics of Organizational Culture Ø Some research has conceptualized culture into four different types based on compe1ng values: 1. The collabora1ve and cohesive clan. 2. The innova1ve and adaptable adhocracy. 3. The controlled and consistent hierarchy. 4. The compe11ve and customer focused market. 16-6

7 LO 1 Describe the Common Characteristics of Organizational Culture Ø Culture as a Descrip1ve Term Ø Organiza1onal culture is concerned with employees percep1ons of the characteris1cs of the culture, not whether they like them. Ø Does it encourage teamwork? Ø Does it reward innova1on? Ø Does it s1fle ini1a1ve? Ø It differs from job sa1sfac1on : Ø Job sa1sfac1on is evalua1ve. Ø Organiza1onal culture is descrip1ve. 16-7

8 LO 1 Describe the Common Characteristics of Organizational Culture Ø Do Organiza1ons Have Uniform Cultures? Ø Most organiza1ons have a dominant culture and numerous sets of subcultures. Ø The dominant culture expresses the core values a majority of members share and that give the organiza1on dis1nct personality. Ø Subcultures tend to develop in large organiza1ons to reflect common problems, situa1ons, or experiences that members face. 16-8

9 LO 1 Describe the Common Characteristics of Organizational Culture Ø Strong versus Weak Cultures Ø Strong culture core values are intensely held and widely shared. Ø Culture versus Formaliza1on Ø High formaliza1on creates predictability, orderliness, and consistency. Ø Formaliza1on and culture are two different roads to the same des1na1on. 16-9

10 LO 2 Compare the Functional and Dysfunctional Effects of Organizational Culture on People and the Organization Ø The Func1ons of Culture Ø Boundary- defining role. Ø Conveys a sense of iden1ty for members. Ø Facilitates the genera1on of commitment. Ø Enhances the stability of the social system. Ø Serves as a sense- making and control mechanism. Ø Defines the rules of the game

11 LO 2 Compare the Functional and Dysfunctional Effects of Organizational Culture on People and the Organization Ø The trend toward decentralized organiza1ons makes culture more important than ever, but also makes establishing a strong culture more difficult. Ø Individual- organiza1on fit whether the applicant s or employee s adtudes and behavior are compa1ble with the culture strongly influences who gets a job offer, a favorable performance review, or a promo1on

12 LO 2 Compare the Functional and Dysfunctional Effects of Organizational Culture on People and the Organization Ø Culture Creates Climate Ø Organiza(onal climate is shared percep1ons about the organiza1on and work environment. Ø Team spirit at the organiza1onal level. Ø Climates can interact with one another to produce behavior. Ø Climate also influences the habits people adopt

13 LO 2 Compare the Functional and Dysfunctional Effects of Organizational Culture on People and the Organization Ø The Ethical Dimension of Culture Ø Organiza1onal cultures are not neutral in their ethical orienta1on, even when they are not openly pursuing ethical goals. Ø Over 1me, the ethical work climate (EWC), or the shared concept of right and wrong behavior in that workplace, develops as part of the organiza1onal climate. Ø The ethical climate reflects the true values of the organiza1on and shapes the ethical decision making of its members

14 LO 2 Compare the Functional and Dysfunctional Effects of Organizational Culture on People and the Organization Ø Ethical climate theory (ECT) and the ethical climate index (ECI) categorize and measure the ethical dimensions of organiza1onal cultures. Ø Five climate categories are prevalent: instrumental, caring, independence, law and code, and rules. Ø Each explains the general mindset, expecta1ons, and values of the managers and employees in rela1onship to their organiza1on. Ø Ethical climate powerfully influences the way its individual members feel they should behave

15 LO 2 Compare the Functional and Dysfunctional Effects of Organizational Culture on People and the Organization Ø Studies of ethical climates and workplace outcomes suggest that some climate categories are likely to be found in certain organiza1ons. Ø By measuring the collec1ve levels of moral sensi1vity, judgment, mo1va1on, and character of our organiza1ons, we may be able to judge the strength of the influence our ethical climates have on us

16 LO 2 Compare the Functional and Dysfunctional Effects of Organizational Culture on People and the Organization Ø Culture and Innova1on Ø The most innova1ve companies have open, unconven1onal, collabora1ve, vision- driven, and accelera1ng cultures. Ø Startup firms o6en have innova1ve cultures. Ø They are usually small, agile, and focused on solving problems in order to survive and grow

17 LO 2 Compare the Functional and Dysfunctional Effects of Organizational Culture on People and the Organization Ø Culture as an Asset Ø Culture can significantly contribute to an organiza1on s bofom line in many ways. Ø There are many more cases of business success stories because of excellent organiza1onal cultures than there are of success stories despite bad cultures, and almost no success stories because of bad ones

18 LO 2 Compare the Functional and Dysfunctional Effects of Organizational Culture on People and the Organization Ø Culture as a Liability Ø Ins1tu1onaliza1on Ø Barriers to Change Ø Barriers to Diversity Ø Barriers to Acquisi1ons and Mergers 16-18

19 LO 3 Identify the Factors that Create and Sustain an Organization s Culture Ø How a Culture Begins Ø Ul1mate source of an organiza1on s culture is its founders. Ø Founders have the vision of what the organiza1on should be. Ø Unconstrained by previous ideologies or customs. Ø New organiza1ons are typically small, which facilitates the founders impar1ng of their vision on all organiza1onal members

20 LO 3 Identify the Factors that Create and Sustain an Organization s Culture Ø Culture crea1on occurs in three ways: 1. Founders hire employees who think and feel the way they do. 2. Employees are indoctrinated and socialized into the founders way of thinking. 3. Founders own behavior encourages employees to iden1fy with them and internalize their beliefs, values, and assump1ons

21 LO 3 Identify the Factors that Create and Sustain an Organization s Culture Ø Keeping a Culture Alive Ø Selec1on Ø Iden1fy and hire individuals with the knowledge, skills, and abili1es to perform successfully. Ø Two- way street. Ø Top Management Ø Establish norms of behavior

22 LO 3 Identify the Factors that Create and Sustain an Organization s Culture 16-22

23 LO 3 Identify the Factors that Create and Sustain an Organization s Culture 16-23

24 LO 4 Show How Culture Is Transmitted to Employees Ø How Employees Learn Culture Ø Culture is transmifed to employees through: Ø Stories Ø Rituals Ø Symbols Ø Language 16-24

25 LO 5 Demonstrate How An Ethical Culture Can Be Created Ø The organiza1onal culture most likely to promote high ethical standards is: Ø High in risk tolerance. Ø Low to moderate in aggressiveness. Ø Focused on means as well as outcomes. Ø Managers are: Ø Supported for taking risks and innova1ng. Ø Discouraged from unbridled compe11on. Ø Guided to heed not just to what goal is achieved but also how

26 LO 5 Demonstrate How An Ethical Culture Can Be Created Ø How can management create a more ethical culture? Ø Be a visible role model. Ø Communicate ethical expecta1ons. Ø Provide ethics training. Ø Visibly reward ethical acts and punish unethical ones. Ø Provide protec1ve mechanisms

27 LO 6 Describe a Positive Organizational Culture Ø There is a trend today for organiza1ons to afempt to create a posi(ve organiza(onal culture: Ø Emphasizes building on employee strengths. Ø Rewards more than it punishes. Ø Emphasizes individual vitality growth. Ø Posi1ve culture is not a cure- all

28 LO 7 Identify Characteristics Ø What Is Spirituality? of a Spiritual Culture Ø Workplace spirituality is not about organized religious prac1ces. Ø It is not about God or theology. Ø Workplace spirituality recognizes that people have an inner life that nourishes and is nourished by meaningful work that takes place in the context of community

29 LO 7 Identify Characteristics of a Spiritual Culture 16-29

30 LO 7 Identify Characteristics Ø Characteris1cs of a Spiritual Organiza1on Ø Cultural characteris1cs present in spiritual organiza1ons include: Ø Benevolence of a Spiritual Culture Ø Strong sense of purpose Ø Trust and respect Ø Open- mindedness 16-30

31 LO 7 Identify Characteristics of a Spiritual Culture Ø Achieving a Spiritual Organiza1on Ø Many organiza1ons have grown interested in spirituality but have had difficulty pudng its principles into prac1ce. Ø Leaders can demonstrate values, adtudes, and behaviors that trigger intrinsic mo1va1on and a sense of calling through work. Ø Encouraging employees to consider how their work provides a sense of purpose through community building also can help achieve a spiritual workplace

32 LO 7 Identify Characteristics Ø Cri1cisms of Spirituality of a Spiritual Culture Ø Cri1cs of spirituality in organiza1ons focus on: 1. The ques1on of scien1fic founda1on: what really is workplace spirituality? 2. Are spiritual organiza1ons legi1mate? Do organiza1ons have the right to impose spiritual values on their employees? 3. The ques1on of economics: are spirituality and profits compa1ble? 16-32

33 LO 8 Show How National Culture May Affect the Way Organizational Culture Is Transported To Another Country Ø Organiza1onal cultures o6en reflect na1onal culture. Ø One of the primary things U.S. managers can do is to be culturally sensi1ve. Ø The management of ethical behavior is one area where na1onal culture can rub up against corporate culture. Ø U.S. employees are not the only ones who need to be culturally sensi1ve

34 Implications for Managers 16-34

35 Implications for Managers Ø Realize that an organiza1on s culture is rela1vely fixed in the short term. To effect change, involve top management and strategize a long- term plan. Ø Hire individuals whose values align with those of the organiza1on; these employees will tend to remain commifed and sa1sfied. Ø Understand that employees performance and socializa1on depend to a considerable degree on their knowing what to do and not do. Train your employees well and keep them informed of changes to their job roles

36 Implications for Managers Ø As a manager, you can shape the culture of your work environment, some1mes as much as it shapes you. All managers can especially do their part to create an ethical culture and to consider spirituality and its role in crea1ng a posi1ve organiza1onal culture. Ø Be aware that your company s organiza1onal culture may not be transportable to other countries. Understand the cultural relevance of your organiza1on s norms before introducing new plans or ini1a1ves overseas

37 All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted, in any form or by any means, electronic, mechanical, photocopying, recording, or otherwise, without the prior written permission of the publisher. Printed in the United States of America