Week 7 Assignment Course Project: Final Paper

MGT301PresentationPearson17eChapter16.pdf

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Organizational

Culture

Learning Objectives

 Describe the common characteristics of organizational

culture.

 Compare the functional and dysfunctional effects of

organizational culture on people and the organization.

 Identify the factors that create and sustain an

organization’s culture.

 Show how culture is transmitted to employees.

 Describe the similarities and differences in creating an

ethical culture, a positive culture, and a spiritual culture.

 Show how national culture can affect the way

organizational culture is transported to another country.

16-3

Common Characteristics of

Organizational Culture

A Definition of Organizational Culture

 Organizational culture refers to a system

of shared meaning held by members that

distinguishes the organization from other

organizations.

16-4

LO 1

Common Characteristics of

Organizational Culture Primary characteristics that capture the

essence of an organization’s culture:

 Innovation and risk taking

 Attention to detail

 Outcome orientation

 People orientation

 Team orientation

 Aggressiveness

 Stability 16-5

LO 1

Common Characteristics of

Organizational Culture Culture as a Descriptive Term

 Organizational culture is concerned with employees’ perceptions of the characteristics of the culture, not whether they like them.

Does it encourage teamwork?

Does it reward innovation?

Does it stifle initiative?

 It differs from job satisfaction:

Job satisfaction is evaluative.

Organizational culture is descriptive. 16-6

LO 1

Common Characteristics of

Organizational Culture Do Organizations Have Uniform Cultures?

 Most organizations have a dominant culture and numerous sets of subcultures.

 The dominant culture expresses the core values a majority of members share and that give the organization distinct personality.

Subcultures tend to develop in large organizations to reflect common problems, situations, or experiences that members face.

16-7

LO 1

Common Characteristics of

Organizational Culture

Strong versus Weak Cultures

Strong culture: core values are intensely

held and widely shared.

Culture versus Formalization

High formalization creates predictability,

orderliness, and consistency.

Formalization and culture are two different

roads to the same destination.

16-8

LO 1

What Do Cultures Do?

The Functions of Culture

Boundary-defining role.

Conveys a sense of identity for members.

Facilitates the generation of commitment.

Enhances the stability of the social system.

Serves as a sense-making and control

mechanism.

Defines the rules of the game.

16-9

LO 2

What Do Cultures Do?

The trend toward decentralized organizations

makes culture more important than ever, but

also makes establishing a strong culture more

difficult.

Individual-organization “fit”— whether the

applicant’s or employee’s attitudes and

behavior are compatible with the culture —

strongly influences who gets a job offer, a

favorable performance review, or a promotion.

16-10

LO 2

What Do Cultures Do?

Culture Creates Climate

 Organizational climate is shared

perceptions about the organization and work

environment.

Team spirit at the organizational level.

 Climates can interact with one another to

produce behavior.

 Climate also influences the habits people

adopt.

16-11

LO 2

What Do Cultures Do?

The Ethical Dimension of Culture

 Organizational cultures are not neutral in their ethical orientation, even when they are not openly pursuing ethical goals.

Over time, the ethical work climate (EWC), or the shared concept of right and wrong behavior in that workplace, develops as part of the organizational climate.

 The ethical climate reflects the true values of the organization and shapes the ethical decision making of its members.

16-12

LO 2

What Do Cultures Do?

Ethical climate theory (ECT) and the ethical climate index (ECI) categorize and measure the ethical dimensions of organizational cultures.

 Five climate categories: instrumental, caring, independence, law and code, and rules.

 Each explains the general mindset, expectations, and values of the managers and employees in relationship to their organization.

Ethical climate powerfully influences the way its individual members feel they should behave.

16-13

LO 2

What Do Cultures Do?

Studies of ethical climates and workplace

outcomes suggest that some climate

categories are likely to be found in certain

organizations.

By measuring the collective levels of moral

sensitivity, judgment, motivation, and character

of our organizations, we may be able to judge

the strength of the influence our ethical

climates have on us.

16-14

LO 2

What Do Cultures Do?

Sustainability: practices that can be maintained over very long periods of time because the tools or structures that support the practices are not damaged by the processes.

Social sustainability practices.

Sustainable management doesn’t need to be purely altruistic.

To create a truly sustainable business, an organization must develop a long-term culture and put its values into practice.

Like other cultural practices we’ve discussed, sustainability needs time and nurturing to grow.

16-15

LO 2

What Do Cultures Do?

Culture and Innovation

 The most innovative companies have open,

unconventional, collaborative, vision-driven,

and accelerating cultures.

 Startup firms often have innovative cultures.

They are usually small, agile, and focused

on solving problems in order to survive and

grow.

16-16

LO 2

What Do Cultures Do?

Culture as an Asset

 Culture can significantly contribute to an

organization’s bottom line in many ways.

 There are many more cases of business

success stories because of excellent

organizational cultures than there are of

success stories despite bad cultures, and

almost no success stories because of bad

ones.

16-17

LO 2

What Do Cultures Do?

Culture as a Liability

 Institutionalization

 Barriers to Change

 Barriers to Diversity

 Strengthening Dysfunctions

 Barriers to Acquisitions and Mergers

16-18

LO 2

Creating and

Sustaining Culture How a Culture Begins

 Ultimate source of an organization’s culture

is its founders.

 Founders have the vision of what the

organization should be.

Unconstrained by previous ideologies or

customs.

 New organizations are typically small, which

facilitates the founders’ imparting of their

vision on all organizational members. 16-19

LO 3

Creating and

Sustaining Culture

Culture creation occurs in three ways:

 Founders hire employees who think and feel

the way they do.

 Employees are indoctrinated and socialized

into the founders’ way of thinking.

 Founders’ own behavior encourages

employees to identify with them and

internalize their beliefs, values, and

assumptions.

16-20

LO 3

Creating and

Sustaining Culture Keeping a Culture Alive

 Selection

Identify and hire individuals with the

knowledge, skills, and abilities to perform

successfully.

Two-way street.

 Top Management

Establish norms of behavior.

16-21

LO 3

Creating and

Sustaining Culture

16-22

LO 3

Creating and

Sustaining Culture

16-23

LO 3

Creating and

Sustaining Culture

16-24

LO 3

Show How Culture Is

Transmitted to Employees

How Employees Learn Culture

 Culture is transmitted to employees through:

Stories

Rituals

Symbols

Material symbols

Language

16-25

LO 4

Influencing an

Organizational Culture

How can management create a more ethical

culture?

 Be a visible role model.

 Communicate ethical expectations.

 Provide ethics training.

 Visibly reward ethical acts and punish

unethical ones.

 Provide protective mechanisms.

16-26

LO 5

Influencing an

Organizational Culture There is a trend today for organizations to

attempt to create a positive organizational

culture:

 Emphasizes building on employee strengths.

 Rewards more than it punishes.

 Emphasizes individual vitality growth.

Positive culture is not a cure-all.

16-27

LO 5

Influencing an

Organizational Culture What Is Spirituality?

Workplace spirituality is not about organized

religious practices.

 It is not about God or theology.

Workplace spirituality recognizes that

people have an inner life that nourishes and is

nourished by meaningful work that takes

place in the context of community.

16-28

LO 5

Influencing an

Organizational Culture

16-29

LO 5

Influencing an

Organizational Culture

Characteristics of a Spiritual Organization

 Cultural characteristics present in spiritual

organizations include:

Benevolence

Strong sense of purpose

Trust and respect

Open-mindedness

16-30

LO 5

Identify Characteristics

of a Spiritual Culture Achieving a Spiritual Organization

 Many organizations have grown interested in spirituality but have had difficulty putting its principles into practice.

Leaders can demonstrate values, attitudes, and behaviors that trigger intrinsic motivation and a sense of calling through work.

Encouraging employees to consider how their work provides a sense of purpose through community building also can help achieve a spiritual workplace.

16-31

LO 5

Identify Characteristics

of a Spiritual Culture

Critics of spirituality in organizations focus on:

The question of scientific foundation: what

really is workplace spirituality?

Are spiritual organizations legitimate? Do

organizations have the right to impose

spiritual values on their employees?

The question of economics: are spirituality

and profits compatible?

16-32

LO 5

The Global Context

Organizational cultures often reflect national

culture.

One of the primary things U.S. managers can

do is to be culturally sensitive.

The management of ethical behavior is one

area where national culture can rub up against

corporate culture.

16-33

LO 6

Implications for Managers

16-34

Implications for Managers Realize that an organization’s culture is relatively

fixed in the short term. To effect change, involve top

management and strategize a long-term plan.

Hire individuals whose values align with those of the

organization; these employees will tend to remain

committed and satisfied. Not surprisingly, “misfits”

have considerably higher turnover rates.

Understand that employees’ performance and

socialization depend to a considerable degree on

their knowing what to do and not do. Train your

employees well and keep them informed of changes

to their job roles. 16-35

Implications for Managers

You can shape the culture of your work

environment, sometimes as much as it shapes

you. All managers can especially do their part

to create an ethical culture and to consider

spirituality and its role in creating a positive

organizational culture.

Be aware that your company’s organizational

culture may not be “transportable” to other

countries. Understand the cultural relevance of

your organization’s norms before introducing

new plans or initiatives overseas. 16-36