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Presentation Slides to Accompany Organizational Behavior 10 th Edition Don Hellriegel and John W. Slocum, Jr. Prepared by Michael K. McCuddy Valparaiso University. Chapter 15 —Cultivating Organizational Culture. Learning Objectives for Cultivating Organizational Culture.

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Presentation Slidesto AccompanyOrganizational Behavior10th EditionDon Hellriegel and John W. Slocum, Jr.

Prepared by

Michael K. McCuddy

Valparaiso University

Chapter 15—Cultivating Organizational Culture


Learning objectives for cultivating organizational culture
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


Components of organizational culture
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


Layers of organizational culture
Layers of Organizational Culture

Cultural Symbols

Shared Behaviors

Cultural Values

Shared Assumptions

Chapter 15: Cultivating Organizational Culture


Issues associated with external adaptation and survival
Issues Associated withExternal 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


Issues associated with internal integration
Issues Associated withInternal 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


How cultures emerge
How Cultures Emerge

  • Top Management

  • Agrees on shared assumptions of human behavior

  • Develops a shared vision of cultural values

  • Culture

  • Strong culture emerges

  • Traditions are maintained

  • Socialization practices for new employees

  • Behaviors

  • Employees behave in ways that are consistent with shared values and assumptions

  • Results

  • Financial performance

  • Market share

  • Employee commitment

Chapter 15: Cultivating Organizational Culture


Methods of maintaining organizational culture
Methods of MaintainingOrganizational 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

Removal of

employees who

deviate from

the culture

Recruitment of

employees who

fit the culture

Organizational

Culture

Chapter 15: Cultivating Organizational Culture


Organizational rites and ceremonies
Organizational Rites and Ceremonies

POSSIBLE

CONSEQUENCES

TYPE

EXAMPLE

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

Enhance power and identity;

emphasize value of proper

behavior

Rites of enhancement

Mary Kay Cosmetics

Company ceremonies

Encourage common feelings

that bind members together

Rites of integration

Office party

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


Requirements for successfully changing organizational culture
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


Framework of types of cultures
Framework of Types of Cultures Culture

Flexible

Clan

Culture

Entrepreneurial

Culture

Formal

Control

Orientation

Bureaucratic

Culture

Market

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


Attributes of a bureaucratic culture
Attributes of a Bureaucratic Culture 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


Attributes of a clan culture
Attributes of a Clan Culture 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


Attributes of a clan culture1
Attributes of a Clan Culture 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


Attributes of an entrepreneurial culture
Attributes of an CultureEntrepreneurial 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


Attributes of a market culture
Attributes of a Market Culture 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


Attributes of a market culture1
Attributes of a Market Culture 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


Organizational uses of culture
Organizational Uses of Culture 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


Organizational uses of culture1
Organizational Uses of Culture 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


Relationship between culture and performance
Relationship Between Culture Cultureand 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


Relationship between culture and performance1
Relationship Between Culture Cultureand 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


Effects of organizational culture on employee behavior and performance
Effects of Organizational Culture on CultureEmployee 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


Effects of organizational culture on ethical behavior
Effects of Organizational Culture Cultureon 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


How employees can change unethical behavior
How Employees Can Change CultureUnethical 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


Actions for creating a culture that encourages ethical behavior
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


Guidelines for managing cultural diversity
Guidelines for Managing behaviorCultural 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


Slide 15 22 steps in socialization
Slide 15.22 behaviorSteps in Socialization

7. Role model to sustain culture

6. Rituals, taboos, rites, and stories to reinforce culture

5. Adoption of cultural value policies

Removal of employees 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 who do not “fit” culture

1. Careful selection

Chapter 15: Cultivating Organizational Culture


Slide 15 23 possible outcomes of the socialization process
Slide 15.23 behaviorPossible Outcomes of the Socialization Process

  • Job satisfaction

  • Role clarity

  • High work motivation

  • Understanding of culture, perceived control

  • High job involvement

  • Commitment to organization

  • Tenure

  • High performance

  • Internalized values

  • Job dissatisfaction

  • Role ambiguity and conflict

  • Low work motivation

  • Misunderstanding, tension, perceived lack of control

  • Low job involvement

  • Lack of commitment to organization

  • Absenteeism, turnover

  • Low performance

  • Rejection of values

Successful socialization is

reflected in:

Unsuccessful socialization is

reflected in:

Chapter 15: Cultivating Organizational Culture


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