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Cultivating Organizational Culture

VIEWS: 29 PAGES: 28

									Presentation Slides
to Accompany
Organizational Behavior
10th Edition
Don Hellriegel and John W. Slocum, Jr.

Chapter 15—Cultivating Organizational Culture




                           Prepared by
                       Michael K. McCuddy
                       Valparaiso University
              Slide 15.1
  Learning Objectives for Cultivating
        Organizational Culture
 Explain how organizational cultures are formed,
  sustained, and changed
 Describe four types of organizational culture
 Discuss how organizational culture can influence
  ethical behaviors of managers and employees
 Explain why fostering cultural diversity is important
 Describe the process of organizational socialization
  and its affect on culture

                     Chapter 15: Cultivating
                     Organizational Culture          260
            Slide 15.2
Components of Organizational Culture

 Routine ways of communicating
 Norms shared by individuals and teams
 Dominant values held by an organization
 Guiding philosophy for management’s
  policies and decision making
 Rules of the game for getting along in the
  organization
 Climate of the organization
                 Chapter 15: Cultivating
                 Organizational Culture     261
           Slide 15.3
Layers of Organizational Culture

                                      Cultural
                                      Symbols

                          Shared
                         Behaviors

             Cultural
             Values

      Shared
    Assumptions

            Chapter 15: Cultivating
            Organizational Culture               262
               Slide 15.4
        Issues Associated with
    External Adaptation and Survival
 Identifying the organization's primary mission and selecting

  strategies to pursue it

 Setting specific targets

 Determining how to pursue the goals, including selecting

  an organizational structure and reward system

 Establishing criteria to measure how well individuals,

  teams, and departments are accomplishing their goals

                        Chapter 15: Cultivating
                        Organizational Culture               263
                   Slide 15.5
            Issues Associated with
              Internal Integration
 Identifying methods of communication and developing a

  shared meaning for important concepts

 Establishing criteria for membership in groups and teams

 Determining rules for acquiring, maintaining, and losing

  power and status

 Developing systems for encouraging desirable behaviors

  and discouraging undesirable behaviors


                       Chapter 15: Cultivating
                       Organizational Culture                264
                        Slide 15.6
                   How Cultures Emerge

Top
Management           Behaviors                Results          Culture
• Agrees on          • Employees              • Financial      • Strong culture
shared               behave in ways           performance      emerges
assumptions of       that are                                  • Traditions are
                                              • Market share
human behavior       consistent with                           maintained
                     shared values            • Employee
• Develops a                                                   • Socialization
                     and                      commitment
shared vision of                                               practices for
                     assumptions
cultural values                                                new employees




                             Chapter 15: Cultivating
                             Organizational Culture                        265
                Slide 15.7
          Methods of Maintaining
          Organizational Culture
      Methods of Maintaining Organizational Culture
         •What managers and teams pay attention to
         •Reactions to organizational crises
         •Managerial role modeling
         •Criteria for rewards
         •Criteria for selection and promotion
         •Organizational rites, ceremonies, stories



Recruitment of                                 Removal of
employees who        Organizational            employees who
fit the culture         Culture                deviate from
                                               the culture

                     Chapter 15: Cultivating
                     Organizational Culture              266
                  Slide 15.8
     Organizational Rites and Ceremonies
                                                                   POSSIBLE
    TYPE                       EXAMPLE                           CONSEQUENCES

Rites of passage         Basic training, U.S. Army             Facilitate transition into new
                                                               roles; minimize differences in
                                                               way roles are carried out
Rites of degradation     Firing a manager                      Reduce power and identity;
                                                               reaffirm proper behavior

Rites of                 Mary Kay Cosmetics                    Enhance power and identity;
enhancement              Company ceremonies                    emphasize value of proper
                                                               behavior

Rites of integration     Office party                          Encourage common feelings
                                                               that bind members together
        Source: Adapted from Trice, H. M., and Beyer, J. M. The Cultures of Work Organizations.
        Englewood Cliffs, N.J.: Prentice-Hall, 1993, 111.

                                     Chapter 15: Cultivating
                                     Organizational Culture                                 267
               Slide 15.9
      Requirements for Successfully
     Changing Organizational Culture
 Understand the old culture first

 Support employees and teams who have ideas for a better
  culture and are willing to act on those ideas
 Find the most effective subculture in the organization and
  use it as a model
 Help employees and teams do their jobs more effectively

 Use the vision of a new culture as a guide for change

 Recognize that significant cultural change takes time

 Live the new culture

                         Chapter 15: Cultivating
                         Organizational Culture                268
                 Slide 15.10
         Framework of Types of Cultures

                Flexible                   Clan                     Entrepreneurial
                                          Culture                       Culture
     Formal
    Control
   Orientation                         Bureaucratic                        Market
                                         Culture                           Culture
                   Stable
                                          Internal                        External
                                                         Forms of
                                                         Attention
Source: Adapted from Hooijberg, R., and Petrock, F. On cultural change: Using the competing values framework to help
leaders execute a transformational strategy. Human Resource Management, 1993, 32, 29-50; Quinn, R. E. Beyond Rational
Management: Mastering the Paradoxes and Competing Demands of High Performance. San Francisco: Jossey-Bass, 1988.
                                        Chapter 15: Cultivating
                                        Organizational Culture                                        269
              Slide 15.11
 Attributes of a Bureaucratic Culture
 Long-term concerns are predictability,
  efficiency, and stability
 Members value standardized goods and
  services
 Managers view their roles as being good
  coordinators, organizers, and enforcers of
  written rules and standards
 Tasks, responsibilities, authority, rules, and
  processes are clearly defined
                   Chapter 15: Cultivating
                   Organizational Culture          270
               Slide 15.12
       Attributes of a Clan Culture

 Members understand that contributions to the
  organization exceed any contractual
  agreements
 A clan culture achieves unity with a long and
  thorough socialization process
 Members share feelings of pride in
  membership, as well as feelings of personal
  ownership of a business, a product, or an
  idea
                  Chapter 15: Cultivating
                  Organizational Culture      271
        Slide 15.12 (continued)
      Attributes of a Clan Culture

 Peer pressure to adhere to important
  norms is strong
 Success is assumed to depend
  substantially on sensitivity to customers
  and concern for people
 Teamwork, participation, and
  consensus decision making are
  believed to lead to success

                Chapter 15: Cultivating
                Organizational Culture    272
               Slide 15.13
             Attributes of an
         Entrepreneurial Culture
 There is a commitment to experimentation,
  innovation, and being on the leading edge
 This culture does not just quickly react to
  changes in the environment—it creates
  change
 Effectiveness depends on providing new and
  unique products and rapid growth
 Individual initiative, flexibility, and freedom
  foster growth and are encouraged and well
  rewarded
                   Chapter 15: Cultivating
                   Organizational Culture       273
              Slide 15.14
     Attributes of a Market Culture

 Contractual relationship between individual
  and organization
 Independence and individuality are valued
  and members are encouraged to pursue their
  own financial goals
 Does not exert much social pressure on an
  organization’s members, but when it does,
  members are expected to conform

                  Chapter 15: Cultivating
                  Organizational Culture        274
        Slide 15.14 (continued)
     Attributes of a Market Culture

 Superiors’ interactions with subordinates
  largely consist of negotiating performance–
  reward agreements and/or evaluating
  requests for resource allocations
 Has a weak socialization process
 Few economic incentives are tied directly to
  cooperating with peers
 Often tied to monthly, quarterly, and annual
  performance goals based on profits

                  Chapter 15: Cultivating
                  Organizational Culture         275
              Slide 15.15
     Organizational Uses of Culture

 Organizational culture has the potential to
  enhance organizational performance,
  individual satisfaction, and a variety of
  expectations, attitudes, and behaviors in
  organizations
 If an organization’s culture is not aligned with
  the changing expectations of internal and/or
  external stakeholders, the organization’s
  effectiveness can decline
                   Chapter 15: Cultivating
                   Organizational Culture        276
        Slide 15.15 (continued)
     Organizational Uses of Culture

 Organizational culture and performance are
  related, although the evidence regarding the
  exact nature of this relationship is mixed
 Organizational culture affects employee
  behavior and performance
 Assessing which attributes of an
  organization’s culture need to be preserved
  and which ones need to be modified is a
  constant organization need
                  Chapter 15: Cultivating
                  Organizational Culture         277
              Slide 15.16
     Relationship Between Culture
           and Performance

 Organizational culture can have a significant
  impact on a firm’s long-term economic
  performance
 Organizational culture will probably be an
  even more important factor in determining
  success or failure of firms during the next
  decade
                   Chapter 15: Cultivating
                   Organizational Culture       278
        Slide 15.16 (continued)
     Relationship Between Culture
           and Performance
 Organizational cultures that inhibit strong
  long-term financial performance are not rare;
  they develop easily, even in firms that are
  filled with reasonable and intelligent people
 Although tough to change, organizational
  cultures can be made more performance
  enhancing if managers understand what
  sustains a culture

                   Chapter 15: Cultivating
                   Organizational Culture       279
              Slide 15.17
 Effects of Organizational Culture on
 Employee Behavior and Performance
 Allows employees to understand the firm’s history
  and current methods of operation
 Fosters commitment to corporate philosophy and
  values
 Serves as a control mechanism for employee
  behaviors
 Certain cultural types may produce greater
  effectiveness and productivity
                    Chapter 15: Cultivating
                    Organizational Culture       280
              Slide 15.18
   Effects of Organizational Culture
          on Ethical Behavior

 A culture emphasizing ethical norms provides
  support for ethical behavior
 Top managers play a key role in fostering
  ethical behavior by exhibiting correct behavior
 The presence or absence of ethical behavior
  in managerial actions both influences and
  reflects the culture
                   Chapter 15: Cultivating
                   Organizational Culture      281
             Slide 15.19
       How Employees Can Change
          Unethical Behavior
 Secretly or publicly reporting unethical actions to
  a higher level within the organization
 Secretly or publicly reporting unethical actions to
  someone outside the organization
 Secretly or publicly threatening an offender or
  responsible manager with reporting unethical
  actions
 Quietly or publicly refusing to implement an
  unethical order or policy
                     Chapter 15: Cultivating
                     Organizational Culture         282
               Slide 15.20
   Actions for Creating a Culture that
     Encourages Ethical behavior
 Be realistic in setting values and goals regarding
  employee relationships
 Encourage input from organization members
  regarding appropriate values and practices for
  implementing the culture
 Opt for a “strong” culture that encourages and
  rewards diversity and principled dissent
 Provide training on adopting and implementing
  the organization’s values
                    Chapter 15: Cultivating
                    Organizational Culture         283
                   Slide 15.21
             Guidelines for Managing
                Cultural Diversity
 Organization members must:
    Understand the nature of diversity and value a variety of opinions
     and insights
    Recognize the learning opportunities and challenges presented by
     the expression of different perspectives
 The organizational culture must:
    Foster expectations for high standards of performance and ethics for
     everyone
    Stimulate personal development
    Encourage openness
    Make workers feel valued
 The organization must have a well-articulated and widely
  understood mission
                            Chapter 15: Cultivating
                            Organizational Culture                        284
                            Slide 15.22
                       Steps in Socialization

                                                   7. Role model to
                                                   sustain culture
                                         6. Rituals, taboos,
                                         rites, and stories to
                                         reinforce culture
                                5. Adoption of                        Removal of employees
                                cultural value policies               who deviate from culture

                         4. Rewards that
                         sustain the culture

               3. Training to develop
               capabilities consistent
               with culture
       2. Challenging early
       work assignments

                                                                      Removal of candidates
1. Careful selection                                                  who do not ―fit‖ culture


                                    Chapter 15: Cultivating
                                    Organizational Culture                                285
                   Slide 15.23
            Possible Outcomes of the
              Socialization Process
Successful socialization is             Unsuccessful socialization is
reflected in:                           reflected in:
 Job satisfaction                      Job dissatisfaction
 Role clarity                          Role ambiguity and conflict
 High work motivation                  Low work motivation
 Understanding of culture,             Misunderstanding, tension,
    perceived control                       perceived lack of control
   High job involvement                   Low job involvement
   Commitment to                          Lack of commitment to
    organization                            organization
   Tenure                                 Absenteeism, turnover
   High performance                       Low performance
   Internalized values                    Rejection of values
                           Chapter 15: Cultivating
                           Organizational Culture                       286

								
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