Presentation on theme: "Leadership and Organizational"— Presentation transcript:
1 Leadership and Organizational Organizational Theory, Design, and Change Fifth Edition Gareth R. JonesChapter 05Leadership and OrganizationalCulture
2 Organizational Culture DefinitionThe set of shared values and norms that controls organizational members’ interactions with each other and with people outside the organization.Material Culture: All tangible elements of a society – from a nail to space shuttleNon-material Culture: All non-tangibles of a society – language, dance, music, religion
3 Organizational Culture Based on enduring values embodied in organizational norms, rules, standard operating procedures, and goalsPeople draw on these cultural values to guide their actions and decisions when faced with uncertainty and ambiguityImportant influence on members’ behavior and response to situations
4 Strong CulturesA strong culture can be a dangerous thing in the hands of managers or owners who do not behave ethically.A strong culture can also be a source of competitive advantageFacilitators of mutual adjustment in the organizationIs also a form of informal organization that facilitates working of the organizational structure
5 How is an Organization’s Culture Transmitted to its Members? Socialization: the process by which members learn and internalize the values and norms of an organization’s culture.Role orientation: the characteristic way in which newcomers respond to a situationInstitutionalized role orientation: results when individuals are taught to respond to a new context in the same way that existing organizational members respond to it.Individualized role orientations: results when individuals are allowed and encouraged to be creative and to experiment with changing norms and values.
6 How Socialization Tactics Shape Employees’ Role Orientation
7 How is an Organization’s Culture Transmitted to its Members? Institutionalized VS individualized orientation:Collective vs. individualCollective tactics: provide newcomers with common learning experiences designed to produce a standardized response to a situationIndividual tactics: each newcomer’s learning experiences are unique, and newcomers can learn new, appropriate responses for each situation
8 How is an Organization’s Culture Transmitted to its Members? Formal vs. informalFormal tactics: segregate newcomers from existing organizational members during the learning processInformal tactics: newcomers learn on the job, as members of a teamSequential vs. randomSequential tactics: provide newcomers with explicit information about the sequence in which they will perform new activities or occupy new roles as they advance in an organizationRandom tactics: training is based on the interests and needs of individual newcomers because there is no set sequence to the newcomers’ progress in the organization
9 How is an Organization’s Culture Transmitted to its Members? Fixed vs. variableFixed tactics: give newcomers precise knowledge of the timetable associated with completing each stage in the learning processVariable tactics: provide no information about when newcomers will reach a certain stage in the learning processSerial vs. disjunctiveSerial tactics: When these tactics are employed, existing organizational members act as role models and mentors for newcomersDisjunctive processes: require newcomers to figure out and develop their own way of behaving.
10 How is an Organization’s Culture Transmitted to its Members? Divestiture vs. investitureDivestiture: newcomers receive negative social support and existing organizational members withhold support until newcomers learn the ropes and conform to established normsInvestiture: newcomers immediately receive positive social support from other organizational members and are encouraged to be themselves
11 How is an Organization’s Culture Transmitted to its Members? Stories, Ceremonies, and Organizational LanguageOrganization ritesRites of passage: mark an individual’s entry to, promotion in, and departure from the organizationRites of integration: shared announcements of organizational success, office parties and cookoutsRites of enhancement: public recognition and reward for employee contributions
12 How is an Organization’s Culture Transmitted to its Members? Organizational Rites
14 Where Does Organizational Culture Come From? Characteristics of people within the organizationThrough a process of hiring people that match existing culture and attrition, people become more and more similar over timeOrganizational ethicsThe moral values, beliefs, and rules that establish the appropriate way for organizational stakeholders to deal with one another and with the environmentDerived from the personality and beliefs of the founder and top management
15 Where Does Organizational Culture Come From? Property rights: Rights that an organization gives to members to receive and use organizational resourcesOrganizational structureMechanistic vs. OrganicMechanistic - predictability and stability are desired goals.Organic – innovation and flexibility are desired end states.Centralized vs. DecentralizedDecentralized - encourages and rewards creativity and innovation.Centralized – reinforces obedience and accountability
16 Can Organizational Culture be Managed? Changing a culture can be very difficultHard to understand how the previous four factors interactMajor alterations are sometimes neededSome ways culture can be changed:Organizational EthicsRedesign structureRevise property rights used to motivate peopleChange the people – especially top management
17 Social Responsibility A very important consequence of the values and norms of its culture is an organization’s stance with regard to social responsibility.Social Responsibility: Refers to a manager’s duty or obligation to make decisions that nurture, protect, enhance, and promote the welfare and well-being of stakeholders and society as a whole.
18 Approaches to Social Responsibility Obstructionist approach: the low end of the organization’s commitment to social responsibility.Managers choose to behave unethically and illegallyDefensive approach: a minimal commitment to ethical behaviorManagers attempt to stay within the law but do not attempt social responsibility beyond what is required by law
19 Approaches to Social Responsibility Accommodative approach: the acknowledgment of the need to support social responsibilityManagers want to make the right choices when called on to do so.Proactive approach: actively embrace the need to behave in socially responsible waysManagers go out of their way to learn about the needs of different stakeholder groupsWilling to utilize organizational resources to promote the interests not only of stockholders, but of other stakeholders.
21 Why Be Socially Responsible? Workers and society benefit directly because organizations bear some of the costs of helping workers.Quality of life as a whole would be higher as a climate of caring is encouraged.It is the right thing to do.Companies that act responsibly toward their stakeholders benefit from increasing business and see their profits rise.
22 Why Be Socially Responsible? Whistle-blower: a person who reports illegal or unethical behaviorTakes a stand against unscrupulous managers or other stakeholdersEvidence suggests that managers who behave socially responsibly will, in the long run, benefit all organizational stakeholders.