Organizational Behavior: An Experiential Approach 7/E Joyce S. Osland, David A. Kolb, and Irwin M. Rubin 1 ©20 01 by Prentice Hall, Inc. Chapter 14

Organizational Behavior: An Experiential Approach 7/E Joyce S. Osland, David A. Kolb, and Irwin M. Rubin 2 ©20 01 by Prentice Hall, Inc. Objectives Define organizational culture and explain its function Explain how it evolves and is transmitted Describe the effects of a strong culture Describe how leaders can manage culture

Organizational Behavior: An Experiential Approach 7/E Joyce S. Osland, David A. Kolb, and Irwin M. Rubin 3 ©20 01 by Prentice Hall, Inc. Organizational Culture Pattern of shared values and beliefs that produce certain norms of behavior

Organizational Behavior: An Experiential Approach 7/E Joyce S. Osland, David A. Kolb, and Irwin M. Rubin 4 ©20 01 by Prentice Hall, Inc. Sources of Culture Values of founder or strong leaders Learned solutions to problems over time

Organizational Behavior: An Experiential Approach 7/E Joyce S. Osland, David A. Kolb, and Irwin M. Rubin 5 ©20 01 by Prentice Hall, Inc. Functions of Organizational Culture Provides a sense of identity Generates commitment Serves as a control mechanism

Organizational Behavior: An Experiential Approach 7/E Joyce S. Osland, David A. Kolb, and Irwin M. Rubin 6 ©20 01 by Prentice Hall, Inc. Transmitting Culture Via Socialization Stories Symbols Jargon Rituals and Ceremonies Statements of Principles

Organizational Behavior: An Experiential Approach 7/E Joyce S. Osland, David A. Kolb, and Irwin M. Rubin 7 ©20 01 by Prentice Hall, Inc. Uncovering Levels of Culture (Surface to Deep Culture) Visible organizational structures and processes Strategies, goals, philosophies Unconscious, taken-for-granted beliefs, perceptions, thoughts, and feelings Artifacts Espoused Values Basic Underlying Assumptions

Organizational Behavior: An Experiential Approach 7/E Joyce S. Osland, David A. Kolb, and Irwin M. Rubin 8 ©20 01 by Prentice Hall, Inc. Strong Cultures Have more values and beliefs of high -- intensity = degree of commitment to the norms (evoking approval/disapproval) -- consensus = degree of agreement about the norms

Organizational Behavior: An Experiential Approach 7/E Joyce S. Osland, David A. Kolb, and Irwin M. Rubin 9 ©20 01 by Prentice Hall, Inc. Strong Cultures Advantages Clear sense of purpose More value-driven decision making Employee commitment Disadvantages Pressure for conformity Resistance to change

Organizational Behavior: An Experiential Approach 7/E Joyce S. Osland, David A. Kolb, and Irwin M. Rubin 10 ©20 01 by Prentice Hall, Inc. HOW LEADERS CREATE AND MODIFY CULTURE What they pay attention to, measure, and control regularly Their reaction to critical events and crises Deliberate role modeling, teaching, and coaching

Organizational Behavior: An Experiential Approach 7/E Joyce S. Osland, David A. Kolb, and Irwin M. Rubin 11 ©20 01 by Prentice Hall, Inc....HOW LEADERS CREATE AND MODIFY CULTURE Criteria for recruitment, selection, promotion, retirement, and termination Criteria used to allocate scarce resources Criteria for allocating rewards and status

Organizational Behavior: An Experiential Approach 7/E Joyce S. Osland, David A. Kolb, and Irwin M. Rubin 12 ©20 01 by Prentice Hall, Inc. Top Management’s: *Beliefs *Values *Actions “Perceived” Values, Philosophy *Consistent *Intensity *Consensus Communication *Credible *Consistent *Salient Rewards *Money *Promotion *Approval

Organizational Behavior: An Experiential Approach 7/E Joyce S. Osland, David A. Kolb, and Irwin M. Rubin 13 ©20 01 by Prentice Hall, Inc. Characteristics of Strong Cultures Easily identified dominant values Selection process targets people who fit the culture Socialization and training teach newcomers “the ropes” Employees who don’t fit are fired Rewards for acting in accordance with the culture Leaders and managers send clear signals about desired values and norms

Organizational Behavior: An Experiential Approach 7/E Joyce S. Osland, David A. Kolb, and Irwin M. Rubin 14 ©20 01 by Prentice Hall, Inc. Organization Stages of Development Size Small Large 1. Entrepreneurial Stage 4. Elaboration Stage 3. Formalization Stage 2. Collectivity Stage Renewal Decline Continuing maturity

Organizational Behavior: An Experiential Approach 7/E Joyce S. Osland, David A. Kolb, and Irwin M. Rubin 15 ©20 01 by Prentice Hall, Inc. Five Phases of Growth

Organizational Behavior: An Experiential Approach 7/E Joyce S. Osland, David A. Kolb, and Irwin M. Rubin 16 ©20 01 by Prentice Hall, Inc. Organizational Practices in the Five Phases of Growth

Organizational Behavior: An Experiential Approach 7/E Joyce S. Osland, David A. Kolb, and Irwin M. Rubin 17 ©20 01 by Prentice Hall, Inc. Three Cultures of Management Engineering culture Executive Culture Operator culture

Organizational Behavior: An Experiential Approach 7/E Joyce S. Osland, David A. Kolb, and Irwin M. Rubin 18 ©20 01 by Prentice Hall, Inc. Assumptions of the Operator Culture Enterprise’s success depends on people’s knowledge, skill, learning ability, and commitment. Required knowledge and skills are “local” and based on core technology.

Organizational Behavior: An Experiential Approach 7/E Joyce S. Osland, David A. Kolb, and Irwin M. Rubin 19 ©20 01 by Prentice Hall, Inc....Assumptions of the Operator Culture Operators need the capacity to learn and to deal with surprises. Work must be done in a collaborative manner that values communication, openness, mutual trust, and commitment.

Organizational Behavior: An Experiential Approach 7/E Joyce S. Osland, David A. Kolb, and Irwin M. Rubin 20 ©20 01 by Prentice Hall, Inc. Assumptions of the Engineering Culture Engineers are proactively optimistic that they can and should master nature. Engineers are stimulated by puzzles and problems with pragmatic, perfect, and “people free” solutions.

Organizational Behavior: An Experiential Approach 7/E Joyce S. Osland, David A. Kolb, and Irwin M. Rubin 21 ©20 01 by Prentice Hall, Inc....Assumptions of the Engineering Culture The ideal world is made of elegant machines and processes working in perfect precision and harmony without human intervention. Engineers are safety oriented and overdesign for safety. Engineers prefer linear, simple cause- and-effect, quantitative thinking.

Organizational Behavior: An Experiential Approach 7/E Joyce S. Osland, David A. Kolb, and Irwin M. Rubin 22 ©20 01 by Prentice Hall, Inc. Assumptions of the Executive Culture Financial focus Self-image: the Embattled Lone Hero Hierarchical and individual focus Task and control focus