Organizational Culture, Socialization & Mentoring Chapter 3 Organizational Culture, Socialization & Mentoring

Organizational Culture 3-2 Organizational Culture Organizational Culture is “The set of shared, taken-for-granted implicit assumptions that a group holds and that determines how it perceives, thinks about, and reacts to its various environments.” McGraw-Hill © 2004 The McGraw-Hill Companies, Inc. All rights reserved.

3 Organizational Cultures SAS Free on-site medical care Unlimited sick days Heavily subsidized day care Ski trips, trainers, classes Rand Merchant Bank The Complete Book of Rules Amazon.com 1960s drab office building Desks made of doors Monitors on telephone books

Understanding Organizational Culture 3-3 Figure 3-1 Understanding Organizational Culture Organizational Culture Observable artifacts Espoused values Basic assumptions Group & Social Processes Socialization Mentoring Decision making Group dynamics Communication Influence & empowerment Leadership Antecedents Founder’s values Industry & business environment National culture Senior leaders’ vision and behavior Organizational Structure & Practices Reward systems Organizational design Collective Attitudes & Behavior Work attitudes Job satisfaction Motivation Organizational Outcomes Effectiveness Innovation & stress McGraw-Hill © 2004 The McGraw-Hill Companies, Inc. All rights reserved.

Layers of Organizational Culture 3-4 Layers of Organizational Culture Observable Artifacts physical manifestations of an organization’s culture Values enduring belief in a mode of conduct or end-state Espoused Values stated values and norms that are preferred by an organization Enacted Values values and norms exhibited by employees Basic Assumptions unobservable—represent the core of organizational culture McGraw-Hill © 2004 The McGraw-Hill Companies, Inc. All rights reserved.

Manifestations of Culture Shared things (objects) Shared sayings (talk) Language Stories Shared doings (behavior) Rituals Ceremonies Shared feelings (emotions)

Four Functions of Organizational Culture 3-4 Figure 3-2 Four Functions of Organizational Culture Organizational identity Sense-making device Collective commitment Organizational culture Social system stability McGraw-Hill © 2004 The McGraw-Hill Companies, Inc. All rights reserved.

3-5 Table 3-1 Constructive Culture Constructive Culture employees are encouraged to interact with others and to work on tasks and projects that will assist in satisfying their needs to grow and develop High priority on constructive interpersonal relationships, and focus on work group satisfaction Affiliative Participative, employee centered, and supportive Humanistic-encouraging Value self-development and creativity Self-actualizing Goal and achievement oriented Achievement Organizational Characteristics Normative Beliefs McGraw-Hill © 2004 The McGraw-Hill Companies, Inc. All rights reserved.

Passive Defensive Culture 3-6 Table 3-1 cont. Passive Defensive Culture Passive Defensive Culture overriding belief that employees must interact with others in ways that do not threaten their job security Negative reward system and Defensive avoid accountability Avoidance Nonparticipative, centralized decision making, and employees do what they are told Dependent Conservative, bureaucratic, and people follow the rules Conventional Avoid conflict, strive to be liked by others, and approval oriented Approval Organizational Characteristics Normative Beliefs McGraw-Hill © 2004 The McGraw-Hill Companies, Inc. All rights reserved.

Aggressive-Defensive Culture 3-7 Table 3-1 cont. Aggressive-Defensive Culture Aggressive-Defensive Culture encourage employees to approach tasks in forceful ways in order to protect their status and job security Perfectionistic, persistent, and hard working Perfectionistic Winning is values and a win-lose approach is used Competitive Nonparticipative, take charge of Defensive subordinates, and responsive to superiors Power Confrontation and negativism rewarded Oppositional Organizational Characteristics Normative Beliefs McGraw-Hill © 2004 The McGraw-Hill Companies, Inc. All rights reserved.

Evidence from Organizational Culture Research 3-8 Evidence from Organizational Culture Research Organizational culture was significantly correlated with employee attitudes and behavior Congruence between an individual’s values and the organization’s values was associated with organizational commitment, job satisfaction, intentions to quit, and turnover Organizational culture did not predict a company’s financial performance Mergers frequently failed due to incompatible cultures Strong cultures have a stronger impact on employee behavior than do weaker cultures McGraw-Hill © 2004 The McGraw-Hill Companies, Inc. All rights reserved.

Specific types of cultures Control culture – values role of senior executives to lead the organization Performance culture – values individual and organizational performance Relationship culture – values nurturing and well-being Responsiveness culture – values ability to keep in tune with external environment

Culture and Financial Performance Strength perspective – strong culture creates goal alignment, motivation, needed structure & controls Fit perspective – culture must align with business or strategic context Adaptive perspective – good cultures help firms adapt to environmental changes

Organizational Socialization 3-12 Figure 3-4 Organizational Socialization Phases Perceptual and Social Processes Anticipatory socialization learning that occurs prior to joining the organization Anticipating realities about the organization and the new job Anticipating organization’s needs for one’s skills and abilities Anticipating organization’s sensitivity to one’s needs and values McGraw-Hill © 2004 The McGraw-Hill Companies, Inc. All rights reserved.

Organizational Socialization 3-13 Figure 3-4 cont. Organizational Socialization Phases Perceptual and Social Processes Encounter values, skills, and attitudes start to shift as new recruit discovers what the organization is truly like Managing lifestyle-versus-work conflicts Managing intergroup role conflicts Seeking role definition and clarity Becoming familiar with task and group dynamics McGraw-Hill © 2004 The McGraw-Hill Companies, Inc. All rights reserved.

Organizational Socialization 3-14 Figure 3-4 cont. Organizational Socialization Phases Perceptual and Social Processes Change and acquisition recruit masters skills and roles and adjusts to work group’s values and norms Competing role demands are resolved Critical tasks are mastered Group norms and values are internalized McGraw-Hill © 2004 The McGraw-Hill Companies, Inc. All rights reserved.

Organizational Socialization 3-15 Figure 3-4 cont. Organizational Socialization Outsider Phases Anticipatory socialization Encounter Change and acquisition Socialized Insider Behavioral Outcomes Performs role assignments Remains with organization Spontaneously innovates and cooperates Affective Outcomes Generally satisfied Internally motivated to work High job involvement McGraw-Hill © 2004 The McGraw-Hill Companies, Inc. All rights reserved.

Socialization Tactics 3-16 Table 3-2 Socialization Tactics Tactic Description Consists of grouping newcomers & exposing them to a common set of experiences Collective Treating each newcomer individually and exposing him or her to more less unique experiences Individual Practice of segregating a newcomer from regular organization members during a defined socialization period Formal Not clearly distinguishing a newcomer from more experienced members Informal McGraw-Hill © 2004 The McGraw-Hill Companies, Inc. All rights reserved.

Socialization Tactics 3-17 Table 3-2 cont. Socialization Tactics Tactic Description Refers to a fixed progression of steps that culminate in the new role Sequential Ambiguous or dynamic progression of steps that culminate in the new role Random Provides a timetable for the assumption of the role Fixed Does not provide a timetable for the assumption of the role Variable McGraw-Hill © 2004 The McGraw-Hill Companies, Inc. All rights reserved.

Socialization Tactics 3-18 Table 3-2 cont. Socialization Tactics Tactic Description Newcomer is socialized by an experienced member Serial Does not use a role model Disjunctive Affirmation of newcomer’s incoming global and specific role identities and attributes Investiture Denial and stripping away of the newcomer’s existing sense of self and the reconstruction of the organization’s image Divestiture McGraw-Hill © 2004 The McGraw-Hill Companies, Inc. All rights reserved.

3-19 Mentoring Mentoring is the process of forming and maintaining intensive and lasting developmental relationships between a variety of developers and a junior person McGraw-Hill © 2004 The McGraw-Hill Companies, Inc. All rights reserved.

Functions of Mentoring 3-20 Functions of Mentoring Career Functions Sponsorship Exposure-and-Visibility Coaching Protection Challenging Assignments Psychological Functions Role Modeling Acceptance-and-Confirmation Counseling Friendship McGraw-Hill © 2004 The McGraw-Hill Companies, Inc. All rights reserved.