Week 7

Leadership and Power Power does not require goal compatibility. Power influences in all directions; leadership downward. Power focuses more on tactics and leadership more on style.

Empowerment Helping others acquire and use power to make decision affecting. themselves and their work. Planning participation at all levels. Responsibility w/authority.

Organizational Politics- exercise of power Managing influence to obtain: self-interest &/or personal goals by unauthorized means or unsanctioned ends. Need to avoid confrontation & work together. Creative compromise. Balance of individual & collective interests.

Functions of Organizational Politics Handle lack of resources. Deal with change. Self-protection. Managerial effectiveness.

Power & Resource Dependencies Political power=negotiation, coalition Control strategic or scarce resources. External negotiation for resources. Politics: the foundation of all organizations.

Analyzing an Organization’s Culture ARTIFACTS CULTURE VALUES ASSUMPTIONS

The Translation of Artifacts Into Meanings is a Dynamic Process MANIFESTATION REALIZATION SYMBOLIZATIONINTERPRETATION Perceptions Emotions Cognition Rites Myths Rituals Stories SymbolsMeanings

Creating a Culture EXTERNAL ADAPTATION AND SURVIVAL Primary Task Core Mission Group Functions Goals Means to Goals Measuring Achievements Remedial or Repaid Strategies INTERNAL INTEGRATION Common Language Group Boundaries Power and Status Intimacy, Friendship, and Love Rewards and Punishments Ideology

An Organization’s Culture Sustains Itself by Socializing People to “Fit in” With the Culture and Removing People Who Deviate from It Hiring and socializing members who “fit in” with the culture Culture Removal of members who deviate from the culture Justifications of Behavior Cultural Communications Behavior

Socialization Strategies StrategyDefinitionExample Collective Individual Formal Informal Puts newcomers through a common set of experiences as part of a group Processes recruits singly and in isolation from each other Segregates newcomers from regular organizational members Treats newcomers as the same as other members Freshman orientation On-the-job training Basic military training Transferred employees

Managers can Choose Among Several Types of Socialization Strategies (Cont.) StrategyDefinitionExample Sequential steps Non-sequential steps Tournament Contest Requires entrant to move through a series of discrete and identifiable steps to achieve a defined role Achieves a defined role in one transitional stage Separates clusters of recruits into different programs on the basis of presumed differ- ences Avoids sharp distinctions between clusters of recruits Specialized medical training Promotion Academic tracked programs Law school

Managers can Choose Among Several Types of Socialization Strategies (Cont.) StrategyDefinitionExample Fixed Variable Serial Disjunctive Gives the recruit complete knowledge of time required to complete passage Offers a timetable that does not fix the length of sociali- zation Provides experienced mem- bers as role models for new- comers Has no role models available for newcomers Six-week training program Doctoral program Apprentice program First holder of a newly defined job

Managers can Choose Among Several Types of Socialization Strategies (Cont.) Strategy Definition Example Investiture Divestiture Ratifies and documents the usefulness of personal characteristics of new recruits Seeks to deny and strip away recruits’ personal characteristics New faculty orientation Training for the priesthood

Organizational culture: the system of shared beliefs and values that develops within an organization and guides the behavior of its members. In business setting, this system is often referred to as the corporate culture.

Why Organizational Culture Matters? Can have a significant impact on firm’s long-term performance Can inhibit successful mergers and acquisitions

Levels of Cultural Analysis l Observable culture l Shared values l Common assumptions

Diagnosing Culture Study the physical setting Read what the company says about itself Test how the company greets strangers Interview people Observe how people spend their time Look at the content of what is discussed Understand career path progression Pay attention to stories and anecdotes

Subculture: unique patterns of values and philosophies within a group that are not consistent with the dominant culture of the larger organization or social system (e.g., different function, location, and customers) Countercultures : the patterns of values and philosophies that outwardly reject those of the larger organization or social system

Functions of Organizational Culture External adaptation Internal integration Bringing executives and employees together

Observable Aspects of Organizational Culture Stories, rites, rituals, and symbols Rites: standardized and recurring activities used at special times to influence the behaviors and understanding of organizational members Rituals: system of rites Symbols: any object, act or event that serves to transmit cultural meaning Shared meanings : a sense of broader purpose workers infuse into their tasks as a result of interaction with one another and reinforcement Cultural rules and roles : expectations for behavior within an organization

How do Organizations Transmit their Culture? Through stories, myths, heroes Through a mission statement Through explicit training and development Through signs and symbols

How leaders embed and communicate culture Attention, measurement, and control. Reaction to critical incidents and organizational crises. Role modeling, teaching, and coaching. Allocation of rewards and status. Recruitment, selection and promotion. Physical space, facade, and building. Formal statement of values and philosophy. Stories about important events and people.

Managing/Changing Culture: Process Issues Is there peer consensus in the need to actively manage or change the culture? Is there trust among employees? Do employees feel secure? Is the effort focused, i.e., concentrating on a few key values or norms? Is there a champion for the effort? What kinds of rituals and symbols are used to symbolize the importance of key values? How are cultural values formally and informally transmitted to employees in this organization? Is there periodic review of the degree of alignment between structure and culture?

Why & How Organizational Culture Changes Composition of the Workforce Female head designer at Ford Mergers and Acquisitions Boeing McDonnell Douglas Planned Organizational Change IBM (flattened the organization)

The Importance of Corporate Culture Corporate culture is important for strategy implementation through shaping employee behavior and building employee commitment STRATEGY STRUCTURECULTURE PEOPLE

Organizational Design The process of coordinating the structural elements of organizations in the most appropriate manner. Classical Approach One best way Weber Neoclassical Approach Human Relations – Hawthrone Studies

The Contingency Approach Environment Mechanistic Organic Research supports the idea that organizational effectiveness is related to the degree to which structure is matched to environment.

Boundaryless Organization Internal & External Barriers Eliminate Chain of Command Empowered Teams Spans of Control Unlimited

Modular Organizations Outsource noncore functions Central Hub Surrounded by specialists

Virtual Organization Evolving network of companies. Partner to achieve objectives – then disband. Give up control and become part of a new organization.