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Organizational Culture, Socialization, and Mentoring

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1 Organizational Culture, Socialization, and Mentoring
Chapter Two Organizational Culture, Socialization, and Mentoring McGraw-Hill/Irwin Copyright © 2010 The McGraw-Hill Companies, Inc. All rights reserved.

2 After reading the materials in this chapter, you should be able to:
Discuss the layers and functions of organizational culture. Describe the general types of organizational culture and their associated characteristics. Summarize the process by which organizations change their cultures. Describe the three phases in Feldman’s model of organizational socialization. Discuss the various tactics used to socialize employees. Explain the four types of developmental networks derived from a developmental network model of mentoring 2-2

3 Organizational Culture
set of shared, taken-for-granted implicit assumptions that a group holds and that determines how it perceives, thinks about and reacts to its various environments 2-3

4 Organizational Culture Characteristics
Passed on to new employees through the process of socialization Influences our behavior at work Operates at different levels 2-4

5 A Conceptual Framework for Understanding Organizational Culture
Figure 2-1 2-5

6 Layers of Organizational Culture
Observable artifacts Consist of the physical manifestation of an organization’s culture Acronyms, manner of dress, awards, myths and stories, published lists of values, observable rituals and ceremonies, special parking spaces, and decorations 2-6

7 Question? Every month, Bombay Bazaar awards an "Employee of the Month" award to one employee and as a reward offers a $100 check and an assigned parking space with the employees' name for the month. This is an example of which of these? Basic underlying assumption Externally enacted values Observable artifacts Socialization The correct answer is ”C” See page AACSB:  Group-individual dynamics Bloom's Taxonomy:  Application Difficulty:  Hard 2-7 7

8 Layers of Organizational Culture
Enacted values represent the values and norms that actually are exhibited or converted into employee behavior Based on observable behavior 2-8

9 Layers of Organizational Culture
Basic assumptions Constitute organizational values that have become so taken for granted over time that they become assumptions that guide organizational behavior 2-9

10 Four Functions of Organizational Culture
Figure 2-2 2-10

11 Competing Values Framework
The Competing Values Framework is a framework for categorizing organizational culture. As you can see, this framework is based on two continuum’s of organizational effectiveness. One axis pertains to whether an organization focuses its attention and efforts on internal dynamics and employee or outward toward its external environment and its customers and shareholders. The second axes shows an organization’s preference for flexibility or control and stability. These axes create four types of organizational cultures that are based on different core values and criteria for assessing organizational effectiveness. The first is the clan culture. This culture is characterized has having an internal focus and valuing flexibility. This type of organization encourages collaboration between employees and is committed to having a cohesive work group and high job satisfaction. The adhocracy culture has an external focus and values flexibility. This type of culture fosters creation of innovative products and services by being adaptable, creative, and fast to respond to changes in the market place. Centralized power and authority would not be effective structures in an adhocracy. These organizations promote creativity, innovation, and knowledge sharing. The market culture has a strong external focus and values stability and control. This type of culture focuses on the customer over employee development and satisfaction because the goal of managers is to drive towards productivity, profits, and customer satisfaction. This culture rewards employees who deliver results. The hierarchy culture has an internal focus and a formalized, structured work environment. It will tend to have reliable internal processes and control mechanisms (e.g., Dell whose focus is on cost-cutting and efficiency.) This categorization shows how an organization’s core values affect it’s culture. Many companies struggle with attempting to embody conflicting values (e.g., Ritz Carlton values both employees and customers by empowering employees and providing high quality customer service) Figure 2.3 2-11 11

12 Question? Fredhandbag Photography is a family-owned business. All of the employees are encouraged to speak up with any ideas to improve the business. What type of culture does this resemble? Clan Adhocracy Hierarchy Market The correct answer is “A” – clan culture. See previous slide. 2-12 12

13 Outcomes Associated with Organizational Culture
Significantly correlated with employee behavior and attitudes Congruence between an individual’s values and the organization’s values was associated with organizational commitment, job satisfaction, intention to quit, and turnover 2-13

14 Outcomes Associated with Organizational Culture (cont.)
There is not a clear pattern of relationships between organizational culture and outcomes such as service quality, customer satisfaction, and an organization’s financial performance Mergers frequently failed due to incompatible cultures 2-14

15 The Process of Culture Change
Organizational members teach each other about the organization’s preferred values, beliefs, expectations, and behaviors 2-15

16 The Process of Culture Change
Formal statements of organizational philosophy, mission, vision, values, and materials used for recruiting, selection and socialization The design of physical space, work environments, and buildings Slogans, language, acronyms, and sayings Deliberate role modeling, training programs, teaching and coaching by managers and supervisors Explicit rewards, status symbols (e.g., titles), and promotion criteria 2-16

17 The Process of Culture Change
Stories, legends, and myths about key people and events The organizational activities, processes, or outcomes that leaders pay attention to, measure, and control Leader reactions to critical incidents and organizational crises The workflow and organizational structure Organizational systems and procedures Organizational goals and the associated criteria used for recruitment, selection, development, promotion, layoffs, and retirement of people 2-17

18 Organizational Socialization
process by which a person learns the values, norms, and required behaviors which permit him to participate as a member of the organization 2-18

19 A Model of Organizational Socialization
Figure 2-4 2-19

20 Phase 1: Anticipatory Socialization
Occurs before an individual joins an organization Involves the information people learn about different careers, occupations, professions, and organizations 2-20

21 Phase 2: Encounter Employees learn what the organization is really like and reconcile unmet expectations Onboarding – programs aimed at helping employees integrate, assimilate, and transition to new jobs 2-21

22 Question? Amy recently started a new job. Everyone she interviewed with seemed very personable and easy-going. She was quite surprised when during her first week on the job she witnessed a loud and argumentative confrontation in the hallway between two of her coworkers. People seem so different than the way she expected them to be. Amy is in which stage of the socialization process?  Change and acquisition Anticipatory socialization Adaptive Encounter The correct answer is “D” – encounter. See slide 2-23. AACSB: Reflective thinking Difficulty: Medium Learning Objective: 4 Type: Application 2-22 22

23 Phase 3: Change and Acquisition
Requires employees to master important tasks and roles and to adjust to their work group’s values and norms 2-23

24 Practical Application of Socialization Research
Managers should avoid a haphazard approach to organizational socialization Managers play a key role during the encounter phase Organization can benefit by training new employees to use proactive socialization behaviors Managers should pay attention to the socialization of diverse employees 2-24

25 Socialization Tactics

26 Question? Army recruits must attend boot camp before they can work alongside established soldiers. This is an example of _________ socialization. Collective Individual Formal Disjunctive The correct answer is “C” – formal. See previous slide. 2-26 26

27 Embedding Organizational Culture through Mentoring
the process of forming and maintaining developmental relationships between a mentor and a junior person 2-27

28 Developmental Networks Underlying Mentoring
Diversity of developmental relationships reflects the variety of people in a network used for developmental assistance 2-28

29 Developmental Networks Associated with Mentoring
2-29 Figure 2-5

30 Question? Troy received a job offer straight out of college and moved to Omaha, Nebraska a year ago. He has been introduced to numerous people in his workplace, his community, and his church. Although it's nice to see a familiar face, he doesn't see them too often and feels like he doesn't know them very well. Which type of developmental network best describes Troy's situation?  Counseling Receptive Traditional Opportunistic The correct answer is “D” – opportunistic. See previous slide. AACSB: Reflective thinking Difficulty: Hard Learning Objective: 6 Type: Application 2-30 30

31 Mentoring Developmental relationship strength reflects the quality of relationships among the individual and those involved in his developmental network 2-31

32 Personal and Organizational Implications
Job and career satisfaction are likely to be influenced by the consistency between an individual’s career goals and the type of developmental network at his disposal 2-32

33 Personal and Organizational Implications
A developer’s willingness to provide career and psycho-social assistance is a function of the protégé’s ability, potential, and the quality of the interpersonal relationship 2-33

34 Building an Effective Mentoring Network
Become the perfect protégé Engage in 360-degree networking Commit to assessing, building, and adjusting the mentor network Develop diverse, synergistic connections Realize that change is inevitable and that all good things come to an end 2-34

35 Supplemental Slides Slides contain extra non-text examples to integrate and enhance instructor lectures Slide 38: Mentoring Slides 39: Management in the Movies: Hoosiers Slide 40: Starbucks Canada Slide 41: Mentoring Pitfalls Slide 42: Implications For Mentoring Minorities Slide 43-44: Video discussion slides 2-35

36 Mentoring See Belle Rose Ragins’s article abstract on barriers to mentoring at Human Relations Online 2-36

37 Management in the Movies Hoosiers – “Warm Welcome”
In this scene, Coach Dale has been invited to meet and greet with some of the men of the town. Discussion Questions What are some of the aspects of the town culture? How well does Coach Dale accept this organizational socialization? How do the men communicate the culture to Coach Dale? Relevant Concepts Organizational culture Organizational socialization Values Stories and language Overview This clip should be used to illustrate the different aspects of organizational culture. This scene shows the men of the town grilling Coach Dale about his preferences for coaching the basketball team. It includes the values of the men, such as the discussion of the man-to-man vs. zone defense. There are examples of norms, language and stories. This is also a good example of organizational socialization. Students may want to discuss organizations they have belonged to and some examples of socialization. Discussion Questions What are some aspects of the town culture? The town is passionate about its basketball team. Smoking is an acceptable social behavior. No one likes change. The men believe they should have some input in how the team is coached. How well does Coach Dale accept this organizational socialization? He listens to what they have to say, but does not respond to questions about how to coach the team. He seems to have little interest in adopting the culture of the town. How do the men communicate the culture to Coach Dale? The men communicate verbally to Coach Dale. They let him know directly their expectation for the team. 2-37 37

38 Example: Starbucks Canada
Measures status of corporate culture using “The Partner View Survey” every 18 months 90% response rate Corrective action or changes taken Result: lower turnover, higher satisfaction 2-38

39 50% of 500 biggest businesses in US offer mentoring
Mentoring Pitfalls 50% of 500 biggest businesses in US offer mentoring Relationships can sour if: Pair is incompatible There is a lack of respect/credibility Clear goals are not established There is no consensus on when to end the relationship Source: BusinessWeek, January 29, 2007, Mentoring Can Be Messy, Susan Berfield 50% of 500 biggest businesses in US offer mentoring Relationships can sour if: Pair is incompatible – sometimes people have different styles, work attitudes, career motives There is a lack of respect/credibility – some mentees become disillusioned by his/her mentor Clear goals are not established – relationship can be very beneficial for both parties but some structure around what is to be accomplished and some formality around the relationship tends to yield better results There is no consensus on when to end the relationship – sometimes the mentor is reluctant to see the mentee “grow up” and is hurt when the mentee is ready to move on Source: BusinessWeek, January 29, 2007, Mentoring Can Be Messy, Susan Berfield 2-39 39

40 Implications For Mentoring Minorities
Mentors must fully appreciate the roles they play: Coach Advocate Counselor Understand the importance of these roles at each stage of a protégé’s career Mentor must also be aware of challenges race can present to protégé’s career Notes: Topic Covered: Mentoring/minorities According to research by David Thomas, whites and minorities do not climb the corporate ladder at the same rate. Promising white professionals enter a fast track early in their careers, arriving in middle management long before their peers Promising minority professionals arrive in the corporate fast track much later in their careers, usually after their arrival in middle management Promising minorities who advance the furthest all share one characteristic: a strong network of mentors and corporate sponsors nurturing their professional development. See above slide for implications for mentors Slides concerning Thomas’s research findings continue Source: “The Truth About Mentoring Minorities—Race Matters,” David Thomas. Harvard Business Review, April 2001 pp 2-40 40

41 Video Case: Johnson & Johnson Credo
What makes Johnson & Johnson’s credo stand out from those espoused by other companies? How does the credo guide the actions of the employees at Johnson & Johnson? Why would the basic premises of the credo be able to remain so constant after nearly 70 years? What are the basic values expressed by the credo? Why are they important to Johnson & Johnson’s success? J&J employees live out the credo, not just espouse it. The credo is a very strong set of values premises on responsibility and respect. The employees use those values as a moral compass in making decisions on behalf of the company. The premises were able to remain constant because they are basis statements of responsibility and respect - two premises that transcend time and societal change. The vales expressed are respect, service, and responsibility. They are important because they have allowed J&J customers to build trust and respect for the company and their products over the years. 2-41 41

42 Video Case: New Belgium Brewery
What is different about New Belgium Brewery’s culture? Employees at New Belgium Brewery appear to be highly engaged in their jobs. Why is this? How does the culture at New Belgium Brewery contribute to their level of financial success? Is open books management a management system all organizations should consider? Why or why not? They have a flat, functional departmentalized culture that uses a team environment to decentralize decision making. Employees are highly engaged because they feel a “vested interest” in the success of the firm. This is achieved through the open books management program as well as the employee-ownership program. Culture contributes to their financial success through decentralized decision making. Each employee feels as though they are an area leader allowing them to make decisions without having to ask someone’s approval. This speeds up problem solving and engages the employees creativity in coming up with good solutions to the problems they face. Open books management is certainly not for all organizations. Many organizations simply do not have a culture or atmosphere that would foster the types of relations New Belgium Brewery has with its employees that allows open books management to work. 2-42 42

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