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Organization culture
- 1. Chapter 9, Stephen P. Robbins and Nancy Langton, Organizational Behaviour, Third Canadian Edition. Copyright © 2003 Pearson Education Canada Inc. Chapter 9 Organizational Culture
- 2. Chapter 9, Stephen P. Robbins and Nancy Langton, Organizational Behaviour, Third Canadian Edition. Copyright © 2003 Pearson Education Canada Inc. Organizational Culture • What is organizational culture? • When is organizational culture functional? Dysfunctional? • How do employees learn about the culture of their organization? Questions for Consideration Questions for Consideration
- 3. Chapter 9, Stephen P. Robbins and Nancy Langton, Organizational Behaviour, Third Canadian Edition. Copyright © 2003 Pearson Education Canada Inc. Henry Mintzberg on Culture • “Culture is the soul of the organization — the beliefs and values, and how they are manifested. I think of the structure as the skeleton, and as the flesh and blood. And culture is the soul that holds the thing together and gives it life force.”
- 4. Chapter 9, Stephen P. Robbins and Nancy Langton, Organizational Behaviour, Third Canadian Edition. Copyright © 2003 Pearson Education Canada Inc. Organizational Culture • The pattern of shared values, beliefs and assumptions considered to be the appropriate way to think and act within an organization. – Culture is shared – Culture helps members solve problems – Culture is taught to newcomers – Culture strongly influences behaviour
- 5. Chapter 9, Stephen P. Robbins and Nancy Langton, Organizational Behaviour, Third Canadian Edition. Copyright © 2003 Pearson Education Canada Inc. Exhibit 9-1 Layers of Culture Artifacts of Organizational Culture Material Symbols Language Rituals Stories Organizational Culture Beliefs Values Assumptions
- 6. Chapter 9, Stephen P. Robbins and Nancy Langton, Organizational Behaviour, Third Canadian Edition. Copyright © 2003 Pearson Education Canada Inc. Characteristics of Organizational Culture • Innovation and risk-taking – The degree to which employees are encouraged to be innovative and take risks. • Attention to detail – The degree to which employees are expected to exhibit precision, analysis, and attention to detail. • Outcome orientation – The degree to which management focuses on results or outcomes rather than on technique and process. • People orientation – The degree to which management decisions take into consideration the effect of outcomes on people within the organization.
- 7. Chapter 9, Stephen P. Robbins and Nancy Langton, Organizational Behaviour, Third Canadian Edition. Copyright © 2003 Pearson Education Canada Inc. Characteristics of Organizational Culture • Team orientation – The degree to which work activities are organized around teams rather than individuals. • Aggressiveness – The degree to which people are aggressive and competitive rather than easygoing. • Stability – The degree to which organizational activities emphasize maintaining the status quo in contrast to growth.
- 8. Chapter 9, Stephen P. Robbins and Nancy Langton, Organizational Behaviour, Third Canadian Edition. Copyright © 2003 Pearson Education Canada Inc. Cultural Artifacts • Stories • Rituals • Material Symbols • Language
- 9. Chapter 9, Stephen P. Robbins and Nancy Langton, Organizational Behaviour, Third Canadian Edition. Copyright © 2003 Pearson Education Canada Inc. Do Organizations Have Uniform Cultures? • Organizational culture represents a common perception held by the organization members. • Core values or dominant (primary) values are accepted throughout the organization. – Dominant culture • Expresses the core values that are shared by a majority of the organization’s members. – Subcultures • Tend to develop in large organizations to reflect common problems, situations, or experiences.
- 10. Chapter 9, Stephen P. Robbins and Nancy Langton, Organizational Behaviour, Third Canadian Edition. Copyright © 2003 Pearson Education Canada Inc. Exhibit 9-3 How Organizational Culture Forms Selection criteria Socialization Organization's culture Philosophy of organization's founders Top management
- 11. Chapter 9, Stephen P. Robbins and Nancy Langton, Organizational Behaviour, Third Canadian Edition. Copyright © 2003 Pearson Education Canada Inc. Keeping a Culture Alive • Selection – Identify and hire individuals who will fit in with the culture • Top Management – Senior executives establish and communicate the norms of the organization • Socialization – Organizations need to teach the culture to new employees
- 12. Chapter 9, Stephen P. Robbins and Nancy Langton, Organizational Behaviour, Third Canadian Edition. Copyright © 2003 Pearson Education Canada Inc. Exhibit 9-5 A Socialization Model Prearrival Encounter Metamorphosis Socialization Process Outcomes Commitment Productivity Turnover
- 13. Chapter 9, Stephen P. Robbins and Nancy Langton, Organizational Behaviour, Third Canadian Edition. Copyright © 2003 Pearson Education Canada Inc. Exhibit 9-6 Entry Socialization Options • Formal vs. Informal • Individual vs. Collective • Fixed vs. Variable • Serial vs. Random • Investiture vs. Divestiture
- 14. Chapter 9, Stephen P. Robbins and Nancy Langton, Organizational Behaviour, Third Canadian Edition. Copyright © 2003 Pearson Education Canada Inc. Exhibit 9-7 Culture Typology Fragmented Networked Low High Solidarity Mercenary Low High Communal Sociability
- 15. Chapter 9, Stephen P. Robbins and Nancy Langton, Organizational Behaviour, Third Canadian Edition. Copyright © 2003 Pearson Education Canada Inc. Culture’s Functions • Social glue that helps hold an organization together – Provides appropriate standards for what employees should say or do • Boundary-defining • Conveys a sense of identity for organization members
- 16. Chapter 9, Stephen P. Robbins and Nancy Langton, Organizational Behaviour, Third Canadian Edition. Copyright © 2003 Pearson Education Canada Inc. Culture’s Functions • Facilitates commitment to something larger than one’s individual self-interest • Enhances social system stability • Serves as a “sense-making” and control mechanism – Guides and shapes the attitudes and behaviour of employees
- 17. Chapter 9, Stephen P. Robbins and Nancy Langton, Organizational Behaviour, Third Canadian Edition. Copyright © 2003 Pearson Education Canada Inc. Culture as a Liability • Culture can have dysfunctional aspects in some instances – Culture as a Barrier to Change • When organization is undergoing change, culture may impede change – Culture as a Barrier to Diversity • Strong cultures put considerable pressure on employees to conform – Culture as a Barrier to Mergers and Acquisitions • Merging the cultures of two organizations can be difficult, if not impossible
- 18. Chapter 9, Stephen P. Robbins and Nancy Langton, Organizational Behaviour, Third Canadian Edition. Copyright © 2003 Pearson Education Canada Inc. How to Change Culture • Have top-management people become positive role models, setting the tone through their behaviour. • Create new stories, symbols, and rituals to replace those currently in vogue. • Select, promote, and support employees who espouse the new values that are sought. • Redesign socialization processes to align with the new values.
- 19. Chapter 9, Stephen P. Robbins and Nancy Langton, Organizational Behaviour, Third Canadian Edition. Copyright © 2003 Pearson Education Canada Inc. How to Change Culture • Change the reward system to encourage acceptance of a new set of values. • Replace unwritten norms with formal rules and regulations that are tightly enforced. • Shake up current subcultures through transfers, job rotation, and/or terminations. • Work to get peer group consensus through utilization of employee participation and creation of a climate with a high level of trust.
- 20. Chapter 9, Stephen P. Robbins and Nancy Langton, Organizational Behaviour, Third Canadian Edition. Copyright © 2003 Pearson Education Canada Inc. Summary and Implications • Employees form an overall subjective perception of the organization based on such factors as degree of risk tolerance, team emphasis, and support of people. – This overall perception becomes, in effect, the organization’s culture or personality. – These favourable or unfavourable perceptions then affect employee performance and satisfaction, with the impact being greater for stronger cultures. • Just as people’s personalities tend to be stable over time, so too do strong cultures. – This makes strong cultures difficult for managers to change.
- 21. Chapter 9, Stephen P. Robbins and Nancy Langton, Organizational Behaviour, Third Canadian Edition. Copyright © 2003 Pearson Education Canada Inc. Summary and Implications • One of the more important managerial implications of organizational culture relates to selection decisions. – Hiring individuals whose values don't align with those of the organization is not good. • An employee's performance depends to a considerable degree on knowing what he should or should not do.
- 22. Chapter 9, Stephen P. Robbins and Nancy Langton, Organizational Behaviour, Third Canadian Edition. Copyright © 2003 Pearson Education Canada Inc. Point-CounterPoint • Why Culture Doesn’t Change Culture develops over many years, and becomes part of how the organization thinks and feels Selection and promotion policies guarantee survival of culture Top management chooses managers likely to maintain culture • When Culture Can Change There is a dramatic crisis There is a turnover in leadership The organization is young and small There is a weak culture
Notas do Editor
- Material pertinent to this discussion is found on pages 323-333. Organizational culture is the pattern of shared values, beliefs, and assumptions considered to be the appropriate way to think and act within an organization. Seven key characteristics of what the organization values capture the essence of culture: (1) Innovation and risk taking, (2) Attention to detail, (3) Outcome orientation, (4) People orientation, (5) Team orientation, (6) Aggressiveness, and (7) Stability.
- Material pertinent to this illustration is found on page 353. The layers of culture include Displayed Layer 1) Artifacts Aspects of an organization’s culture that you see, hear, and feel Hidden Layer 2) Beliefs The understandings of how objects and ideas relate to each other 3) Values The stable, long-lasting beliefs about what is important 4) Assumptions The taken-for-granted notions of how something should be in an organization
- Material pertinent to this discussion is found on page 334.
- Material pertinent to this discussion is found on page 334.
- Material pertinent to this discussion is found on pages 335-338.
- Material pertinent to this discussion is found on pages 338-339. Most organizations have a dominant culture and numerous sets of subcultures. The first expresses the core values that are shared by a majority of members. Subcultures develop to reflect common problems, situations, or experiences that members face such as department or geographical differentiation.
- Material pertinent to this illustration is found on pages 339-340. As with most creations, culture begins with the organization's founders, who have a major impact in establishing the early culture. They are unconstrained by previous customs, their small size usually facilitates the founders' imposing their vision on other organization members, and they also have biases on how to get the idea fulfilled. They have a vision or mission of what the organization should be. Instructor can get students in the class who have some work experience to tell the ‘creation stories’ of organizations in which they have worked and discuss how those stories fit in with the organizational culture.
- Material pertinent to this discussion is found on pages 340-342.
- Material pertinent to this illustration is found on pages 344-345. Socialization can be conceptualized as a process composed of three stages: prearrival -- This first stage encompasses all the learning that occurs before a new member joins the organization. encounter -- In this second stage, the new employee sees what the organization is really like and confronts the possibility that expectations and reality may diverge. metamorphosis -- In this third stage, the relatively long-lasting changes take place. The new employee masters the skills required for his or her job, successfully performs his or her new roles, and makes the adjustments to his or her work group’s values and norms. This three-stage process has an impact on the new employee’s work productivity, commitment to the organization’s objectives, and eventual decision to stay with the organization. The Exhibit depicts this process.
- Material pertinent to this illustration is found on page 346. Formal vs. Informal The more a new employee is segregated from the ongoing work setting and differentiated in some way to make explicit his or her newcomer’s role, the more formal socialization is. Individual vs. Collective New members can be socialized individually. This describes how it’s done in many professional offices. They can also be grouped together and processed through an identical set of experiences, as in military boot camp. Fixed vs. Variable This refers to the time schedule in which newcomers make the transition from outsider to insider. A fixed schedule establishes standardized stages of transition. Variable schedules give no advanced notice of their transition timetable. Variable schedules describe the typical promotion system, where one is not advanced to the next stage until he or she is “ready.” Serial vs. Random Serial socialization is characterized by the use of role models who train and encourage the newcomer. Apprenticeship and mentoring programs are examples. In random socialization, role models are deliberately withheld. The new employee is left on his or her own to figure things out. Investiture vs. Divestiture Investiture socialization assumes that the newcomer’s qualities and qualifications are the necessary ingredients for job success, so these qualities and qualifications are confirmed and supported. Divestiture socialization tries to strip away certain characteristics of the recruit. Fraternity and sorority “pledges” go through divestiture socialization to shape them into the proper role.
- Material pertinent to this illustration is found on pages 346-347. Goffee and Jones have identified types of cultures, linking them to how people might fit in. They start with two dimensions that underly organizational culture. The first they call sociability. This is a measure of friendliness. The second is solidarity. It's a measure of task-orientation. From these two dimensions they identify four types of cultures: Networked culture (high on sociability; low on solidarity). These organizations view members as family and friends. People know and like each other. The major negative associated with this culture is that the focus on friendships can lead to a tolerance for poor performance and creation of political cliques. Mercenary culture (low on sociability; high on solidarity). These organizations are fiercely goal-focused. People are intense and determined to meet goals. Mercenary cultures aren't just about winning; they're about destroying the enemy. The downside of this culture is that it can lead to an almost inhumane treatment of people who are perceived as low performers. Fragmented culture (low on sociability; low on solidarity). These organizations are made up of individualists. There is little or no identification with the organization. In fragmented cultures, employees are judged solely on their productivity and the quality of their work. The major negatives in these cultures are excessive critiquing of others and an absence of collegiality. Communal culture (high on sociability; high on solidarity). This final category values both friendship and performance. People have a feeling of belonging but there is still a ruthless focus on goal achievement. The downside of these cultures is that they often consume one's total life. Their charismatic leaders frequently look to create disciples rather than followers, resulting in a work climate that is almost "cult-like."
- Material pertinent to this discussion is found on pages 349-350. Culture has a number of functions. It has a boundary defining role, it conveys a sense of identity, facilitates the generation of commitment to something larger than self-interest, enhances social system stability, and serves as a sense-making and control mechanism that guides and shapes the attitudes and behaviour of employees. An organization’s culture, when it is strong and consistent, also determines the image the organization presents outside to the greater world. A good example of this is Disney.
- Material pertinent to this discussion is found on pages 349-350.
- Material pertinent to this discussion is found on pages 350-352. Culture as a Liability occurs when the shared values are not in agreement with those that will further the organization's effectiveness. This occurs when the environment is dynamic, and the entrenched culture may no longer be appropriate. The culture at Enron became a liability as individuals put more and more effort into pretending that everything was going well.
- Supplemental material
- Supplemental material
- Material pertinent to this discussion is found on pages 353-354.
- Material pertinent to this discussion is found on pages 353-354.
- Material pertinent to this discussion is found on page 356. Point: The first argument, “Organizational Culture Doesn’t Change,” argues that culture is relatively unmanageable and very difficult to change. There are many forces that act to maintain it even when it needs changes. Change will occur only when the organization confronts a survival-threatening crisis. Counterpoint: The second argument, “How to Change an Organization's Culture,” is more optimistic about changing culture. The case presents examples that culture can be changed. The article offers eight actions that can lead to cultural change. This article echoes the first one in that it suggests that some dramatic crises or change in leadership can stimulate cultural change. As well, it is acknowledged that quick fixes should not be expected. It can take years to change a culture. The issue addressed here (can culture be changed?) is extremely important and likely to be the subject of debate for a number of years. If culture cannot be changed, it cannot be managed. It, therefore, becomes a constraint that management must work around. If it can be changed, managers can modify their culture to align with the organization's changing environment. Management scholars have a vested interest in promoting the argument that culture can be changed. The second article expands the notion of managers as directing the future of their organizations, not as impotent observers, but rather as people who take credit for successes and blame for failures.