Presentation on theme: "Chapter 16 Organizational Culture"— Presentation transcript:
1 Chapter 16 Organizational Culture Essentials ofOrganizational Behavior12eStephen P. Robbins & Timothy A. JudgeChapter 16Organizational Culture
2 After studying this chapter, you should be able to: Define organizational culture and describe its common characteristics.Compare the functional and dysfunctional effects of organizational culture on people and the organization.Identify the factors that create and sustain an organization’s culture.Show how culture is transmitted to employees.Demonstrate how an ethical culture can be created.Show how national culture may affect the way organizational culture is transported to a different country.
3 Organizational Culture Organizational culture: A system of shared meaning held by members that distinguishes the organization from other organizationsOrganizational culture is an important concept in studying how organizations behave. Culture is defined as a common perception held by the members of the organization or a sense of shared meaning.
4 Seven Characteristics of Organizational Culture Innovation and risk takingAttention to detailOutcome orientationPeople orientationTeam orientationAggressivenessStabilitySeven primary characteristics define organizational culture. They are: innovation and risk taking, attention to detail, outcome orientation, people orientation, team orientation, aggressiveness and stability.
5 Culture Is a Descriptive Term Job SatisfactionOrganizational culture is concerned with how employees perceive an organization’s culture, not whether or not they like itDescriptiveMeasures affective responses to the work environment: concerned with how employees feel about the organizationEvaluativeCulture is concerned with the way employees perceive their culture, not whether they like it or not. Job satisfaction, in contrast, is evaluative in nature and gets at how employees respond to certain factors in their work context.
6 Do Organizations Have Uniform Cultures? The dominant culture expresses the core values that are shared by a majority of the organization’s membersSubcultures tend to develop in large organizations to reflect common problems, situations, or experiences of membersSubcultures mirror the dominant culture but may add to or modify the core valuesMost large organizations have both a dominant culture and several subcultures. The dominant culture reflects the core values that are shared by the majority of employees in the organization. Subcultures reflect common problems or experiences shared by employees in the same department or location.
7 Strong CulturesIn a strong culture, the organization’s core values are both intensely held and widely sharedStrong cultures willHave great influence on the behavior of membersIncrease cohesivenessResult in lower employee turnoverA strong culture is one in which the core values are intensely held and shared by most.Strong cultures will have a great influence on the behavior of members and increase cohesiveness which should result in lower employee turnover.
8 Culture’s Five Basic Functions Defines boundariesConveys a sense of identityGenerates commitment beyond oneselfEnhances social stabilitySense-making and control mechanismCultures take on distinct functions. Cultures define the boundary between one organization and others. They also convey a sense of identity for the members of the organization. If the cultures are strong they can facilitate a continuous commitment to something larger than self-interest over an extended period of time. Cultures also help people know what to expect in the organization and can thereby enhance the stability of the social system. Culture can also serve as a sense-making and control mechanism for fitting employees into the organization.
9 Culture as a Liability Barrier to change Barrier to diversity Culture is slow to change – even in a dynamic environmentBarrier to diversityCulture seeks to minimize diversityCan embed prevalent bias and prejudiceBarrier to acquisitions and mergersMost mergers fail due to cultural incompatibilityCulture can also be a hindrance to an organization. A company can become institutionalized when people value the organization more than what they provide. When cultures are strong they can become a barrier to change as their values may not align with the values needed to embrace or facilitate the change. Cultures that may pressure employees to conform can be a barrier to hiring, developing, and promoting a diverse workforce. Finally, if a merger or acquisition occurs one of the most difficult things to do is to merge the two cultures. Many mergers fail because of culture clashes.
10 Creating CultureUltimate source of an organization’s culture is its foundersFounders create culture in three waysBy hiring and keeping those who think and feel the same way they doIndoctrinating and socializing those employees to their way of thinking and feelingActing as a role model and encouraging employees to identify with themCultures start from the very beginning of the organization with the founders. Founders will tend to hire and keep employees who view things in a similar fashion. They will also try to get employees to think about things the way they do and socialize them to their point of view and ways of doing things. This is done so that the founders’ behavior will become the behavior to model after in order to succeed in the organization and to fit in.
11 Keeping a Culture Alive Selection – seek out those who fit inTop management – establish norms of behavior by their actionsSocialization – help new employees adapt to the existing cultureA culture is kept alive in three main ways. The first is to find those who fit into the culture and hire them. Second, it is critical that top management establish norms of behavior by how they act. Finally, socialization into the culture helps new employees adapt to the way things are done.
12 A Socialization ModelPre-arrival – initial knowledge about the organization and own unique ideasEncounter – exposed to the organizationMetamorphosis – member changed to fit within the organizationThe socialization process involves a few steps. The employee will learn about the organization through literature, interviews and other people in the prearrival stage. Once the employee starts interacting with other employees, the employee enters the encounter stage where he or she sees what the organization is really like. Expectations are measured against reality during this stage, and a misalignment may emerge. During the third stage, metamorphosis, the new employee adjusts to the organization and work.
13 Dimensions of Socialization Programs Intense ProgramsModerate ProgramsFormal – new workers separated for trainingCollective – group basisFixed – planned activitiesSerial – role models usedDivestiture – strip away characteristics to build up new onesInformal – new workers immediately put to workIndividual – one-on-oneVariable – no timetablesRandom – on your ownInvestiture – accepts and confirms existing characteristicsThere are a number of possible socialization programs. Each organization needs to select one that best fits its culture. When the socialization process matches an organization’s culture it will have positive outcomes including higher productivity, greater commitment, and lower turnover.
14 How Organization Cultures Form Success in employee socialization depends on management’s selection of socialization methods and the closeness of new employees’ values to those of the organizationOrganizational cultures begin with the founder of the organization, and continues through the hiring of people who see things similarly and are enforced through top management and socialization.
15 How Employees Learn Culture Culture is transmitted to employees through:Stories – provide explanationsRituals – reinforce key valuesMaterial symbols – convey importanceLanguage – identify and segregate membersEmployees learn the organizational culture through a number of avenues. They can gain an understanding of culture by hearing stories that present the past and provide explanations for current practices. Rituals, or repetitive sequences of activities, can reinforce the key values of the organization and provide insight into the culture. Material symbols such as dress codes, formal or informal, office size or style and perks for key employees can denote who is important in an organization.Language is another way to learn about organizational culture as employees will express themselves in certain ways to indicate membership in the organization.
16 Creating an Ethical Organizational Culture A strong culture with high risk tolerance, low- to-moderate aggressiveness, and a focus on means as well as outcomes is most likely to shape high ethical standardsManagers must be visible role modelsCommunicate ethical expectationsProvide ethical trainingVisibly reward ethical acts and punish unethical onesProvide protective mechanismsAs cultures are created, it is important to incorporate ethics into cultural norms early on. Certain characteristics will help develop high ethical standards such as a high tolerance for risk so people are not afraid to make mistakes; low to moderate in aggressiveness so that unethical behaviors are avoided, and a focus on the means as well as the outcomes so that ethics is embedded in both.Managers must be visible role models and communicate ethical expectations. Training on ethical behavior and guidelines must be done and ethical acts must be rewarded while unethical acts need to be punished. In addition, protective mechanisms must be in place to assist the workers in behaving ethically.
17 Creating a Positive Organizational Culture A positive culture is one that emphasizesBuilding on employee strengthsRewarding more than punishingEmphasizing vitality and growth of the employeeA positive organizational culture is one that builds on employee strengths so that employees can develop and grow. It also rewards more than it punishes, so employees are not afraid to try new things and feel good about what they are contributing. Finally it emphasizes individual vitality and growth so that employees are operating at full potential.
18 Global Implications National and organizational cultures Organizations exist in a global contextMust be aware of local and national culturesSuggestions and observationsOrganizations heavily dependent on foreign markets and laborNational culture does influence organizational cultureAll managers must be culturally sensitiveOrganizational culture still exists within a local culture, and that can’t be ignored. It is important that managers increase their ability to become more culturally sensitive through active listening, adjusting communication to the culture in which they are operating, and avoiding controversial topics in their discussions.
19 Implications for Managers Changing organizational culture is not easy, expect it to take yearsHire people who “fit”Ensure that employees know the right way to do their jobWork to create an ethical cultureCultures begin with the founders of the organization and are very difficult to change once they become embedded. In order to maximize employee outcomes it is important to hire people who fit in the organization and help them become socialized into the corporate culture. Managers can reinforce culture through their actions.If you want to change an established culture it will take a long time.
20 Keep in Mind…Organizational culture develops over time and reflects deeply held values to which employees are strongly committedEthical and positive organizational cultures can be created – methods differNational culture influences organizational cultureAs you think about culture remember that organizational culture depends on employees perceptions. However, with effort ethical and positive organizational cultures can be created, although the methods will vary by context. National culture can influence organizational culture and should be taken into consideration when making cultural changes.
21 SummaryDefined organizational culture and described its common characteristics.Compared the functional and dysfunctional effects of organizational culture on people and the organization.Explained the factors that created and sustained an organization’s culture.Showed how culture was transmitted to employees.Demonstrated how an ethical culture could be created.Showed how national culture might affect the way organizational culture is transported to a different country.
22 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.