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Chapter 16 Organizational Culture. Objectives. Define organizational culture and explain its function Explain how organizational culture evolves and is transmitted Contrast the characteristics of strong and weak cultures Explain the relationship between strong cultures and high performance.

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slide1

Chapter 16

Organizational Culture

objectives
Objectives
  • Define organizational culture and explain its function
  • Explain how organizational culture evolves and is transmitted
  • Contrast the characteristics of strong and weak cultures
  • Explain the relationship between strong cultures and high performance

16 -1

Organizational Behavior: An Experiential Approach 8/E

Joyce S. Osland, David A. Kolb, Irwin M. Rubin and Marlene E. Turner

objectives1
…Objectives
  • Describe the importance of organizational justice
  • Explain the impact of organizational culture in mergers
  • Describe how leaders can manage culture
  • Identify the four stages in the organizational life cycle

16 -2

Organizational Behavior: An Experiential Approach 8/E

Joyce S. Osland, David A. Kolb, Irwin M. Rubin and Marlene E. Turner

organizational culture defined
Organizational Culture - Defined

Pattern of shared values and beliefs that produce certain norms of behavior

16 -3

Organizational Behavior: An Experiential Approach 8/E

Joyce S. Osland, David A. Kolb, Irwin M. Rubin and Marlene E. Turner

uncovering levels of culture

Basic Underlying Assumptions

Uncovering Levels of Culture

Visible organizational structures and processes

Artifacts

Espoused Values

Strategies, goals, philosophies

Unconscious, taken-for-granted beliefs, perceptions, thoughts, and feelings

16 -4

Organizational Behavior: An Experiential Approach 8/E

Joyce S. Osland, David A. Kolb, Irwin M. Rubin and Marlene E. Turner

types f cultures
Types f Cultures
  • Dominant culture – manifests the values shared by a majority of the organization's members
  • Subculture – shares the dominant culture’s core values as well as other values that characterize their own department, geographical unit, etc.
  • Counterculture – its values are in opposition to those of the dominant culture

16 -5

Organizational Behavior: An Experiential Approach 8/E

Joyce S. Osland, David A. Kolb, Irwin M. Rubin and Marlene E. Turner

functions of organizational culture
Functions of Organizational Culture
  • Provide a sense of identity
  • Generate commitment
  • Helps make sense of occurrences
  • Control mechanism

16 -6

Organizational Behavior: An Experiential Approach 8/E

Joyce S. Osland, David A. Kolb, Irwin M. Rubin and Marlene E. Turner

sources of culture
Sources of Culture
  • Beliefs, values and assumptions of founders, leaders
  • Learning experiences of group members as their organization evolves
  • New beliefs, values, and assumptions brought in by new members and leaders

16 -7

Organizational Behavior: An Experiential Approach 8/E

Joyce S. Osland, David A. Kolb, Irwin M. Rubin and Marlene E. Turner

strong cultures defined
Strong Cultures - Defined

Strong cultures have core values and beliefs that are intensely held, more widely shared and more ordered than weak cultures

16 -8

Organizational Behavior: An Experiential Approach 8/E

Joyce S. Osland, David A. Kolb, Irwin M. Rubin and Marlene E. Turner

characteristics of strong cultures
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 cultural values
  • Leaders and managers send clear signals about desired values and norms

16 -9

Organizational Behavior: An Experiential Approach 8/E

Joyce S. Osland, David A. Kolb, Irwin M. Rubin and Marlene E. Turner

strong cultures
Advantages

High performance under certain conditions

Clear sense of purpose

More value-driven decision making

Employee commitment

Loyalty

Pride

Disadvantages

Pressure for conformity

Resistance to change

Strong Cultures

16 -10

Organizational Behavior: An Experiential Approach 8/E

Joyce S. Osland, David A. Kolb, Irwin M. Rubin and Marlene E. Turner

strong cultures and performance
Strong Cultures and Performance
  • Strong Culture
  • Focus on Key Constituencies
  • Leadership at all Levels

High Performance

16 -11

Organizational Behavior: An Experiential Approach 8/E

Joyce S. Osland, David A. Kolb, Irwin M. Rubin and Marlene E. Turner

the importance of fit

People

Strategy

Culture

Organization’s task

Environment

The Importance of Fit

16 -12

Organizational Behavior: An Experiential Approach 8/E

Joyce S. Osland, David A. Kolb, Irwin M. Rubin and Marlene E. Turner

transmitting culture via
Transmitting Culture Via
  • Socialization
  • Stories
  • Symbols
  • Jargon
  • Rituals and Ceremonies
  • Statements of Principles

16 -13

Organizational Behavior: An Experiential Approach 8/E

Joyce S. Osland, David A. Kolb, Irwin M. Rubin and Marlene E. Turner

socialization defined
Socialization - Defined

Socialization is the systematic process by

which organizations bring new members into

their cultures

16 -14

Organizational Behavior: An Experiential Approach 8/E

Joyce S. Osland, David A. Kolb, Irwin M. Rubin and Marlene E. Turner

seven steps of socialization
Seven Steps of Socialization

Reinforcing

folklore

Humility-inducing

experiences

Careful selection

of candidates

In-the-trenches

training

Careful attention

to rewards & control

systems

Consistent role

models

Careful adherence

to core values

16 -15

Organizational Behavior: An Experiential Approach 8/E

Joyce S. Osland, David A. Kolb, Irwin M. Rubin and Marlene E. Turner

organizational justice
Organizational Justice
  • Distributive Justice - Fair distribution of resources (pay, rewards, promotions and dispute resolutions)
  • Procedural Justice - Fair decision-making procedures regarding resource distribution
  • Interactional Justice - Fair treatment from others

16 -16

Organizational Behavior: An Experiential Approach 8/E

Joyce S. Osland, David A. Kolb, Irwin M. Rubin and Marlene E. Turner

outcomes of organizational justice
Outcomes of Organizational Justice
  • Higher performance
  • Compliance
  • Trust
    • Cooperation with coworkers
    • Organizational citizenship behavior
    • Less turnover
    • Less absenteeism
    • Less employee silence
    • Less counterproductive behaviors

16 -17

Organizational Behavior: An Experiential Approach 8/E

Joyce S. Osland, David A. Kolb, Irwin M. Rubin and Marlene E. Turner

outcomes of organizational justice1
Increased

Performance

Compliance

Trust in managers

Cooperation with coworkers

Organizational citizenship behavior

Decreased

Less turnover

Less absenteeism

Less employee silence

Less counterproductive behaviors

…Outcomes of Organizational Justice

16 -18

Organizational Behavior: An Experiential Approach 8/E

Joyce S. Osland, David A. Kolb, Irwin M. Rubin and Marlene E. Turner

mergers and culture
Mergers and Culture
  • 50% failure rate on mergers and acquisitions
  • To ensure a successful merger
    • Analyze cultural compatibility of both organizations beforehand
    • Develop shared values rather than imposing the values of one firm on the other

16 -19

Organizational Behavior: An Experiential Approach 8/E

Joyce S. Osland, David A. Kolb, Irwin M. Rubin and Marlene E. Turner

how leaders create and modify culture primary mechanisms
How Leaders Create and Modify Culture – Primary Mechanisms
  • What they regularly pay attention to, measure, and control
  • Their reaction to critical incidents and crises
  • Criteria used to allocate scarce resources

16 -20

Organizational Behavior: An Experiential Approach 8/E

Joyce S. Osland, David A. Kolb, Irwin M. Rubin and Marlene E. Turner

how leaders create and modify culture
…How Leaders Create and Modify Culture
  • Deliberate role modeling, teaching, and

coaching

  • Criteria for allocating rewards and status
  • Criteria for recruitment, selection, promotion and termination

16 -21

Organizational Behavior: An Experiential Approach 8/E

Joyce S. Osland, David A. Kolb, Irwin M. Rubin and Marlene E. Turner

how leaders create and modify culture secondary mechanisms
How Leaders Create and Modify Culture - Secondary Mechanisms
  • Organizational design
  • Systems and procedures
  • Rites and rituals
  • Design of physical space, facades, buildings
  • Stories about important events and people
  • Formal statements of organizational philosophy, creeds, and charters

16 -22

Organizational Behavior: An Experiential Approach 8/E

Joyce S. Osland, David A. Kolb, Irwin M. Rubin and Marlene E. Turner

organization stages of development

Large

Renewal

Continuing maturity

Decline

Size

Small

1.

Entrepreneurial Stage

2.

Collectivity Stage

3.

Formalization Stage

4.

Elaboration Stage

Organization Stages of Development

16 -23

Organizational Behavior: An Experiential Approach 8/E

Joyce S. Osland, David A. Kolb, Irwin M. Rubin and Marlene E. Turner

how can you renew a mature organization
How Can You Renew a Mature Organization?
  • Instill a customer perspective and focusing on customer demands
  • Increase their capacity for change
  • Alter both hardware and software within the organization
  • Create empowered employees who act as leaders at all organizational levels

16 -24

Organizational Behavior: An Experiential Approach 8/E

Joyce S. Osland, David A. Kolb, Irwin M. Rubin and Marlene E. Turner