Business Forum 312
Chapter Four Social Systems and Organizational Culture
Organizational
Behavior
John W. Newstrom
Human Behavior at
Work
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Learning Objectives
The operation of a social system
The psychological contract
Social cultures and their impact
The value of cultural diversity
Role and role conflict in organizations
Status and status symbols
Organizational culture and its effects
Fun workplaces
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Social System
Complex set of interacting human relationships
Behavior of one member impacts others
Open system: Engages in exchanges with its environment
Social equilibrium: Interdependent parts of a system that are in dynamic working balance
When parts work against each other, disequilibrium occurs
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Functional and Dysfunctional Effects
Functional effects: When change is favorable for the system
Employees are creative and seek to improve the quality of the product or service
Dysfunctional effects: When change is unfavorable for the system
Employees are absent frequently and resistant to organizational changes
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Figure 4.1 - The Results of the Psychological Contract and the Economic Contract
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Psychological Contract
Conditions of each employee’s psychological involvement with the social system
To prevent breakdowns, employers should:
Clarify employees’ expectations and perceptions
Discuss mutual obligations
Exercise caution when conveying promises
Provide detailed explanations for unfulfilled promises
Alert employees to the realistic prospects of reneging
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Exchange Theory
When a continuing relationship exists between two parties, each person regularly examines the rewards and costs of that interaction
To remain positive about the relationship, both parties must believe in the existence of a net positive ratio
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Social Culture
Environment of human-created beliefs, customs, knowledge, and practices
Essential for all roles in an organization
Managers - To understand the backgrounds and beliefs of their employees
Employees - To capitalize on the opportunities it presents and avoid negative consequences
One-culture dependency may create intellectual blinders
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Cultural Diversity
Rich variety of differences among people at work
Formation of groups is determined by:
Job-related conditions
Non-job-related conditions
Discrimination: Biased or unfair action
Prejudice: Biased attitude or feeling
The law focuses on actions and not feelings
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Valuing Diversity
Recognizing, acknowledging, appreciating, and using cultural differences to collective advantage
Requires:
Inclusion - Active desire to use diverse talents and strengths
Cultural competency - Skill needed to accomplish inclusion
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Work Ethic
Viewing work as a very important and desirable goal in life
Employees with strong work ethics:
Like work and derive satisfaction from it
Have stronger commitment to the organization and its goals
Varies in a group depending on personal background, type of work, and geographical location
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Work Ethic
Declined over the decades due to:
Difference in attitudes among younger employees
Emergence of competing social values
Leisure ethic
Desire for community and connectedness
Entitlement
Social policy and tax laws changes
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Social Responsibility
Recognition that organizations have significant influence on a nation’s social system
Influence must be properly considered and balanced in all organizational actions
Leads organizations to:
Adopt a broader view of their role within a social system
Accept their interdependence with the social system
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Role
Pattern of actions expected of a person in activities involving others
Reflects a person’s position in the social system
Role perceptions: How one is to act in his/her own roles and how others should act in their roles
Role flexibility - Ability to adapt to many different roles
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Figure 4.2 - Each Employee Performs Many Roles
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Figure 4.3 - The Complex Web of Manager–Employee Role Perceptions
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Mentors
Role models who guide other employees by sharing valuable advice on roles to play and behaviors to avoid
Advantages of mentoring programs
Stronger employee loyalty
Faster movement up the learning curve
Succession planning through development of replacements
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Mentors
Increased level of goal accomplishments
Objective analysis of protégé’s strengths and weaknesses
Drawbacks - Assigning mentors could lead to:
Resentment
Abuse of power
Unwillingness to serve
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Mentors
Having more than one mentor per protégé helps in situations where:
Some mentors are more effective role models than others
Mentor’s advice might hinder the protégé’s development
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Mentors
Gender differences in mentor–protégé relationship leads to complex issues
Mentor is transferred or leaves the organization
Reverse mentoring: Newer employees are more proficient in certain domains and demonstrate their skills to senior individuals
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Figure 4.4(a) - Tips for Protégés Using Mentors
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Figure 4.4(b) - Tips for Mentors Who Have Protégés
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Role Conflict and Ambiguity
Role conflict: Experienced when others have different perceptions or expectations of one’s role
Results in work-life conflict
Role ambiguity: Exists when roles are inadequately defined or substantially unknown
Employees are more satisfied when their roles are clearly defined by job descriptions and statements of performance expectations
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Status
Ranks are assigned in relation to others in the group
Status systems
Getting highly upset over one’s own status
Status anxiety
Loss of status
Status deprivation
Provides a system by which people can relate to one another in an organization
Status relationships
Visible external things that attach to a person or workplace and serve as evidence of social rank
Status symbols
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Figure 4.5 - Typical Symbols of Status
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Figure 4.6 - Major Sources of Status on the Job
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Significance of Status
Status obsession is a source for employee problems and conflict
Influences the kind of transfers and job assignments employees prefer
Helps determine informal leaders
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Significance of Status
Motivates those seeking to advance in the organization
Status seekers are encouraged to qualify themselves for high-status jobs
Status seekers - Desire high-status jobs regardless of other working conditions
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Organizational Culture
Set of assumptions, beliefs, values, and norms shared by an organization’s members
Provides organizational identity to employees
Source of stability and continuity
Provides context for new employees
Helps stimulate employee enthusiasm for work
Attracts attention and conveys a vision
Identifies and rewards high-producing and creative individuals
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Figure 4.7 - Characteristics of Organizational Cultures
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Products of Successful Cultures
Better cooperation
Acceptance of decision making and control
More effective communication
Higher commitment to the employer
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Methods of Measuring Organizational Culture
Examination of stories, symbols, rituals, and ceremonies
Interviews and open-ended questionnaires
Examination of corporate philosophy statements
Survey employees, seeking their perceptions
Become a member of the organization and engage in participant observation
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Communicating and Changing Culture
Channels of communication - Formal, informal, and unintentional
Organizational socialization: Continuous process of transmitting key elements of an organization’s culture to its employees
Signature experiences: Convey a key element of the firm’s culture and vividly reinforce its values
Clearly defined dramatic devices
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Communicating and Changing Culture
Storytelling: Way to forge a culture and build organizational identity
Effectively taps into the emotions of an audience and creates shared meaning and purpose
Key means for achieving socialization
Individualization: Employees exert influence on the social system by deviating from the culture
Counterculture: Subgroup of individuals within a larger culture
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Figure 4.8 - Four Combinations of Socialization and Individualization
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Figure 4.9 - Effectiveness of Methods for Changing Organizational Culture
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Fun Work Environment
Organizational culture in which supervisors encourage, initiate, and support a variety of playful and humorous activities
Key features
Easy to recognize
Varies from person to person
Easy to create
Elicits many personal and organizational payoffs
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Fun Work Environment
Categories
Recognizing personal milestones through unique methods
Hosting special social events
Celebrating professional achievements
Games and friendly competitions
Entertainment
Use of humor in correspondence
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Fun Work Environment
Employee benefits
Decreases stress
Reduces boredom
Stimulates friendships
Increases satisfaction
Produces beneficial physiological results
Corporate benefits
Rise in employee enthusiasm and creativity
Attracting and retaining employees is easier
Company’s values and norms become clearer
Energized employees improve customer satisfaction
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Figure 4.10 - Guidelines for Fun-Oriented Managers
Source: Bob Pike, Robert C. Ford, and John W.Newstrom, The Fun Minute Manager, Minneapolis: CTT Press, 2009, p. 88.
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