Copyright © 2011 by the McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill/Irwin Organizational Culture Chapter 2

2-2 Learning Objectives ■ Define the terms organization culture, socialization, and career ■ Explain why it is too simplistic for managers to state that they are creating a firm’s culture ■ Describe the relationship between a society’s culture and organizational culture ■ Explain why valuing diversity has become an important leadership requirement ■ Identify specific practices and programs used by organizations to facilitate socialization

2-3 Introduction Anthropologists propose that culture… ■ Is learned and shared ■ Defines the boundaries of different groups A national culture is the sum total of… ■ The beliefs, rituals, rules, customs, artifacts, and institutions that characterize the population of a nation

2-4 Introduction Managers must understand national and organizational cultures ■ Both affect how transactions are conducted Adaptation to new environments involves… ■ Learning new values ■ Processing information in new ways ■ Working within established norms, customs, and rituals

2-5 Culture and Societal Value Systems Organizations operate efficiently only when shared values exist among the employees Values are the conscious, affective desires or wants of people that guide behavior Values are a society’s ideas about what is right or wrong Passed along through education systems, religions, families, communities, organizations

2-6 Hofstede’s Cultural Dimensions Culture Power Distance Masculinity- Femininity Uncertainty Avoidance Individualism Short/Long Orientation

2-7 Cultural Dimensions Society’s values impact organizational values because of the interactive nature of work, leisure, family, and community.

2-8 Cultural Differences

2-9 The GLOBE Project

2-10 Organizational Culture Defined Culture can be sensed or felt, but not seen ■ Consists of attitudes, emotions, perceptions ■ Influences behavior, attitudes, and effectiveness There is no single definition of culture ■ Involves assumptions, adaptations, perceptions, and learning ■ Includes symbols, language, ideologies, rituals, and myths ■ Creates pattern of beliefs, values, expectations

2-11 Schein’s Definition of Culture Invented, discovered, or developed by a group As it learns to cope with the problems of external adaptation and internal integration A pattern of basic assumptions Is taught to new members as the correct way to perceive, think, and feel in relation to those problems Has worked well enough to be considered valid

2-12 Schein’s Three-Layer Organizational Model Examples of cultural attributes  Documents  Physical layouts  Furnishings  Language  Jargon  Work ethic and practice  Fair day’s work for fair day’s pay  Loyalty  Commitment  Helping others  Performance leads to rewards  Management equity  Competency counts Visible but often not decipherable Greater level of awareness Taken for granted, invisible, preconscious Layer III: Basic Assumptions Layer II: Values Layer I: Artifacts & Creations  Relationship to environment  Nature of reality, time, & space  Nature of human nature  Nature of human activity  Nature of human relations  Testable in the physical environment  Testable only by social consensus  Technology  Art  Visible and audible behavior patterns

2-13 Organizational Culture and Its Effects IndividualsGroups Organizational processes Organizational culture involves shared expectations, values, and attitudes, so it exerts influence on… Influence can be positive or negative, weak or strong

2-14 Organizational Culture and Its Effects Culture provides and encourages stability ■ The more employees share and accept the core values, the stronger the culture and the more influential it is on behavior C u l t u r e Motivation Efficiency

2-15 Creating Organizational Culture Can culture be created and imposed? ■ It is difficult to simply create core values ■ Imposed values are often met with resistance ■ Disparity between reality and a stated set of values creates confusion, irritation, skepticism ■ Cultures take time to evolve

2-16 Creating Organizational Culture Types of cultures ■ Customer-Service ■ Ethical ■ Diversity Benefits of a positive culture ■ Increased teamwork ■ Information sharing ■ Better employee morale A Supportive Organizational Climate helps

2-17 Influencing Culture Change Themes that appear in research… ■ Cultures are elusive and hidden, so they are hard to diagnose, manage, and change ■ Deliberate attempts to change culture are not really practical ■ Cultures sustain people through periods of difficulty and ward off anxiety ■ People naturally resist change to a new culture

2-18 Cultural Change Intervention Points

2-19 Sustaining the Culture Socialization ■ The process by which organizations bring new employees into the culture ■ A transmittal of values, assumptions, and attitudes ■ The goal is achieving person-organization fit

2-20 Socialization: The Process Model

2-21 Socialization: The Process Model Ways to Structure Socialization Collective Investiture Formal Serial Sequential Fixed

2-22 Career Stage Model of Socialization Socialization stages coincide with… Anticipatory Socialization Accommodation Role Management

2-23 Anticipatory Recruitment using realistic job previews Selection/placement using realistic career paths Accommodation Individualized orientation programs Social as well as technical skills training Supportive and accurate feedback Challenging work assignments Demanding but fair supervisors Role Management Provision of professional counseling Adaptive and flexible work assignments Sincere person-oriented managers Socialization Stages

2-24 Mentoring Mentor – a friend, coach, advisor or sponsor who supports, encourages, and helps a less experienced protégé.

2-25 Mentoring Functions Career Functions Sponsorship Exposure and visibility Coaching Production Challenging assignments Psychological Functions Role modeling Acceptance Confirmation Counseling Friendship

2-26 Mentoring Relationships Develop over time and go through distinct phases ■ Initiation ■ Cultivation ■ Separation ■ Redefinition

2-27 Mentoring Guidelines Do not dictate mentoring relationships Show mentors how to effectively mentor others Use mentoring stories in firm’s communications Explain the benefits/difficulties of mentoring those of different race and gender Have diversity among mentors Provide diversity training

2-28 Ways to Be a Great Mentor ■ Determine the most valuable technique ■ Don’t be afraid to be honest ■ Get a mentor yourself ■ Get mentorees to agree with your style of intervention ■ Don’t keep your feelings bottled up ■ Understand that mentoring is an important relationship, for both of you ■ Work at building trust and at feeling it yourself ■ Realize that this process will change both of you

2-29 Phases of the Mentor Relationship Initiation Cultivation Separation Redefinition

2-30 Diversity A vast array of physical and cultural differences ■ Constitutes the spectrum of human differences, including religious, cultural, and ethnic ■ Not the same as equal employment opportunity The challenge ■ Finding ways to integrate the increasing number and mix of people from diverse national cultures into the workplace

2-31 Diversity Enhanced decision making Better communication with customers More creative innovation

2-32 Workforce Diversity Issues Poor English language skills Increased training for jobs that require verbal skills Cultural awareness training for current workforce Learning which rewards each ethnic group values Creating career development programs that fit the skills, needs, values of ethnic groups Rewarding managers for recruiting, hiring, integrating diverse workforce Learning about diversities of age, gender, disability

2-33 Spirituality and Culture Employees have a personal or inner life It nourishes and is nourished by performing relevant, meaningful, challenging work Spirituality is not the same as religion Spirituality… a personal, private path that contains religious elements and points to a person’s self-inquiry Religion… a system of thought, set of doctrines and beliefs, prescribed code of conduct, product of a time/place

2-34 The Person and Spirituality Spirituality has not been given much research attention ■ Considered “soft” or “non-strategic” There is a long tradition in the U.S. of separating religion and government ■ It is logical to keep religion separate from non-government organizations as well

2-35 Spirituality and Work Dimensions Research Spirituality encourages… ■ Trust ■ Work/life balance ■ Empathy and compassion for others ■ The value of human assets ■ Development and self-actualization of people ■ Ethical behavior ■ Better results

2-36 Spirituality and Work Dimensions Research Alcoholics AnonymousRecovery YMCAEvolutionary Ben & Jerry’sSocially Responsible Kingston TechnologyValues-based Ag Reserves, Inc. (Mormon)Religion-based Workplaces Practicing Spirituality