ENTREPRENEURIAL CULTURE AND CLIMATE BY PROF DR ZAIDATOL AKMALIAH LOPE PIHIE FAKULTI PENGAJIAN PENDIDIKAN UNIVERSITI PUTRA MALAYSIA zalp@educ.upm.edu.my

STRONG CULTURE IMPLIES THAT MOST MANAGERS AND EMPLOYEES SHARE A SET OF CONSISTENT VALUES AND METHODS OF DOING WORK

RELATIONSHIP BETWEEN ORGANIZATIONAL CULTURE AND PERFORMANCE Organizational culture can have a significant impact on a firm’s long-term economic performance. Organizational culture will probably be an even more important factor in determining the success or failure of firms in the next decade. Organizational cultures that inhibit strong long-term financial performance are not rare; they develop easily, even in firms that are filled with reasonable and intelligent people. Although tough to change, organizational cultures can be made more performance enhancing if managers understand what sustains a culture.

CHANGING CULTURE Changing … core values shared by employees Capitalize on dramatic opportunities Combine caution with optimism Understand resistance to cultural challenge Change many elements but maintain some continuity. Recognize the importance of implementation Modify socialization tactics. Find and cultivate innovative leadership

CHANGING BEHAVIOR The goal of many cultural change efforts is to produce high involvement type of work culture. Change program focus on behavior ( Figure 1) tend to rely on active involvement and participation by many employees. Successfully changing behaviors can improve individual and team processes in decision making, problem identification, problem solving, communication, working relationships, and the like. Four approaches to organizational change that initially focus on people are survey feedback, team building, process consultation, and quality of work life programs.

THE TEAM PERFORMANCE CURVE FIGURE 1

CHARACTERISTICOF HIGH PERFORMANCE – HIGH COMMITMENT WORK SYSTEM Delegation People who have the most relevant and timely information or the most appropriate competencies for a task are given responsibility for decisions and actions. Teamwork across boundaries All employees in the organization are focused on the product and serving customers for the product, rather than their functions or departments.

Empowerment Everybody is expected to accept and exercise the responsibility necessary to their jobs and help others accomplish theirs. Providing opportunities to be responsible empowers people- the opposite of limiting roles and contributions. No one feels free to say, “It’s not my job.”

Integration of people and technology People are in charge of the technology, instead of technology being in charge of the people. A shared sense of purpose People in the work culture share a vision of the organization’s purpose and the methods for accomplishing this purpose.

HOW ORGANIZATIONAL CULTURES ARE DEVELOPED, MAINTAINED AND CHANGED? Organizational cultures represents a complex pattern of beliefs, expectations, ideas, values, attitudes, and behaviors shared by the members of an organization. More specifically, organizational cultures includes; Routine behavior when people interact, such as organizational rituals and ceremonies and the language commonly used The norms that are shared by teams throughout the organization, such as “product quality” or “price leadership The philosophy that guides an organization’s policies towards its employees and customers

The rules of the game for getting along in the organization or the “ropes” that a newcomer must learn in order to become an accepted member The feeling or climate conveyed in an organization by the physical layout and the way in which managers and employees interact with customers and other outsiders.

LEVELS OF ORGANIZATIONAL CULTURE Cultural Symbols Shared Behaviors Cultural Values Shared Assumption FIGURE 2

Activity Discuss all the elements: Shared Assumption Cultural Values Shared behavior Cultural Symbols Explain all here.

Organizational Behavior CORPORATE CULTURE Top Management A top manager or team develops and attempts to implement a shared vision and business strategy Organizational Behavior Implementation is successful. Employees behave in ways that are in agreement with the shared values and business strategy Results The organization is successfully based on standard financial and performance indicators Cultures A culture emerges that reflects the vision, strategy, experiences of people in the organization. This culture describes the behaviors that are acceptable an unacceptable and the traditions that will be maintained.

METHODS OF MAINTAINING ORGANIZATIONAL CULTURE What managers and teams pay attention to Reactions to organizational crises Managerial role modeling Criteria for Rewards Criteria for selection and promotion Organizational rites, ceremonies, stories Recruitment of employees who fit the culture Organizational Culture Removal of employees who deviate from the culture

CHANGING ORGANIZATIONAL CULTURE Successfully changing organizational cultures requires; Understanding the old culture first because a new culture can’t be developed unless managers and employees understand where they’re starting from Providing support for employees and teams who have ideas