1. Copyright ©2010 Pearson Education, Inc. Publishing as Prentice Hall 15-1 Essentials of Organizational Behavior, 10/e Stephen P. Robbins & Timothy A. Judge Chapter 15 Organizational Culture

2. Copyright ©2010 Pearson Education, Inc. Publishing as Prentice Hall 15-2 After studying this chapter, you should be able to: 1.Define organizational culture and describe its common characteristics. 2.Explain the factors that create and sustain an organization’s culture. 3.Show how culture is transmitted to employees. 4.Demonstrate how an ethical culture and a positive culture can be created. 5.Show how national culture may affect the way organizational culture is transported to a different country.

3. Copyright ©2010 Pearson Education, Inc. Publishing as Prentice Hall 15-3 Organizational Culture A system of shared meaning held by members that distinguishes the organization from other organizations Composed of seven key characteristics

4. Copyright ©2010 Pearson Education, Inc. Publishing as Prentice Hall 15-4 Seven Characteristics of Organizational Culture 1.Innovation and Risk Taking 2.Attention to Detail 3.Outcome Orientation 4.People Orientation 5.Team Orientation 6.Aggressiveness 7.Stability

5. Copyright ©2010 Pearson Education, Inc. Publishing as Prentice Hall 15-5 Culture Is a Descriptive Term Culture Organizational culture is concerned with how employees perceive an organization’s culture, not whether or not they like it Descriptive Job Satisfaction Measures affective responses to the work environment: concerned with how employees feel about the organization Evaluative

6. Copyright ©2010 Pearson Education, Inc. Publishing as Prentice Hall 15-6 Do Organizations Have Uniform Cultures? The 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 of members

7. Copyright ©2010 Pearson Education, Inc. Publishing as Prentice Hall 15-7 Strong Cultures In a strong culture, the organization’s core values are both strongly held and widely shared Strong cultures will:  Have great influence on the behavior of its members  Increase cohesiveness  Result in lower employee turnover

8. Copyright ©2010 Pearson Education, Inc. Publishing as Prentice Hall 15-8 Culture’s Five Basic Functions Defines Boundaries Gives a Sense of Identity Generates Commitment Beyond Oneself Enhances Social Stability Making sense and Control

9. Copyright ©2010 Pearson Education, Inc. Publishing as Prentice Hall 15-9 Culture as a Liability Barrier to Change  Culture is slow to change – even in a changing environment Barrier to Diversity  Culture seeks to minimize diversity  Can bring out bias and prejudice Barrier to Acquisitions and Mergers  Most mergers fail due to culture differences

10. Copyright ©2010 Pearson Education, Inc. Publishing as Prentice Hall 15-10 Creating Culture Ultimate source of an organization’s culture is its founders Founders create culture in three ways:  By hiring and keeping those who think and feel the same way they do  “Forcing” employees to their way of thinking and feeling  Acting as a role model and encouraging employees to identify with them

11. Copyright ©2010 Pearson Education, Inc. Publishing as Prentice Hall 15-11 Keeping a Culture Alive Selection – seek out those who fit in Top Management – establish norms of behavior by their actions Socialization – help new employees adapt to the existing culture

12. Copyright ©2010 Pearson Education, Inc. Publishing as Prentice Hall 15-12 How Organization Cultures Form Success in employee socialization depends on management’s selection of socialization method and the closeness of new employees’ values to those of the organization

13. Copyright ©2010 Pearson Education, Inc. Publishing as Prentice Hall 15-13 How Employees Learn Culture Culture is transmitted to employees through:  Stories – provide explanations  Rituals – reinforce key values  Material Symbols – show importance  Language – identify and segregate members

14. Copyright ©2010 Pearson Education, Inc. Publishing as Prentice Hall 15-14 Creating an Ethical Organizational Culture A strong culture with high risk tolerance, low-to-moderate aggressiveness, and focuses on means as well as outcomes is most likely to shape high ethical standards  Managers must be visible role models  Communicate ethical expectations  Provide ethical training  Visibly reward ethical acts and punish unethical ones  Provide protective mechanisms

15. Copyright ©2010 Pearson Education, Inc. Publishing as Prentice Hall 15-15 Creating a Positive Organizational Culture A positive culture is one that emphasizes the following: Building on Employee Strengths Rewarding More Than Punishing Emphasizing Vitality and Growth of the Employee

16. Copyright ©2010 Pearson Education, Inc. Publishing as Prentice Hall 15-16 Global Implications National and Organizational Cultures: Organizations exist in a global context Must be aware of local and national cultures Suggestions and Observations: Organizations heavily dependent on foreign markets and labor National culture does influence organizational culture All managers must be culturally sensitive

17. Copyright ©2010 Pearson Education, Inc. Publishing as Prentice Hall 15-17 Implications for Managers Create the culture you want when the organization is small and new If established culture needs to be changed, expect it to take years

18. Copyright ©2010 Pearson Education, Inc. Publishing as Prentice Hall 15-18 Keep in Mind… Organizational culture is concerned with how employees perceive the culture, not whether or not they like it Ethical and positive organizational cultures can be created – methods differ National culture influences organizational culture

19. Copyright ©2010 Pearson Education, Inc. Publishing as Prentice Hall 15-19 Summary 1.Defined organizational culture and described its common characteristics. 2.Explained the factors that created and sustained an organization’s culture. 3.Showed how culture was transmitted to employees. 4.Demonstrated how an ethical culture and a positive culture could be created. 5.Showed how national culture might affect the way organizational culture is transported to a different country.

20. Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall 16-20 Essentials of Organizational Behavior, 10/e Stephen P. Robbins & Timothy A. Judge Chapter 16 Organizational Change

21. Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall 16-21 Idea Champions Managers who actively and enthusiastically promote an idea, build support, overcome resistance, and ensure that innovation is implemented  Have high self-confidence, persistence, energy, and acceptance of risk  Use inspiration and vision to gain commitment  Have decision-making discretion

22. Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall 16-22 Contemporary Issues Technology in the Workplace Work Stress Creating Learning Organizations

23. Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall 16-23 Work Stress Dynamic condition in which an individual is confronted with an opportunity, constraint, or demand related to what is desired and for which the outcome is perceived to be both uncertain and important Types:  Challenge Stress – may improve performance  Hindrance Stress – comes from obstacles to achieving goals – mostly negative

24. Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall 16-24 Managing Stress Organizational  Employee Selection  Organizational Communication  Goal-setting Programs  Job Redesign Personal Counseling Time Management Physical Activity Managers have no direct control on personal stress and there are ethical considerations about intruding into employees’ personal lives

25. Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall 16-25 CREATING A CULTURE OF LEARNING Five Basic Characteristics of a Learning Organization People in a learning organization: 1.Are willing to put aside their old ways of thinking 2.Learn to be open with each other 3.Understand how the organization really works 4.Can form a plan or vision that everyone agrees on 5.Can work together to achieve that vision

26. Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall 16-26 Global Implications Is managing change culture bound? 1.Do people believe change is possible? Yes, when people believe they control their environment 2.If it’s possible, how long will it take to bring about? Short-term focus cultures want fast results 3.Is resistance to change greater in some cultures than in others? Yes, traditional cultures resist change

27. Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall 16-27 Global Implications Continued 4.Does culture influence how change efforts will be implemented? Yes, high power distance cultures are autocratic 5.Do successful idea champions do things differently in different cultures? Yes, idea champions modified techniques based on culture Does stress vary across cultures?  The conditions that lead to stress may vary, but the personality effects, outcomes, and reduction methods do not

28. Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall 16-28 Implications for Managers Managers must continually act as change agents Organizations and their members tend to resist change Changes are often stressful, but not all stress is harmful

29. Copyright ©2010 Pearson Education, Inc. Publishing as Prentice Hall 15-29 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.