HND – 13. Organizational Culture

1. HND – 13. Organizational Culture Lim SeiKee @ cK

2. Organizational Culture • A system of shared meaning held by members that distinguishes the organization from other organization. • Characteristics: • Innovation and risk taking • Attention to detail • Outcome orientation • People orientation • Team orientation • Aggressiveness • Stability

3. Organizational Culture Profile

4. How Organizational Cultures Have an Impact on Performance and Satisfaction

5. Do Organizations Have Uniform Cultures?

6. Do Organizations Have Uniform Cultures?

7. What Do Cultures Do? • Defines the boundary between one organization and others. • Conveys a sense of identity for its members. • Facilitates the generation of commitment to something larger than self-interest. • Enhances the stability of the social system.

8. Culture as a Liability • Barrier to change • Occurs when culture’s values are not aligned with the values necessary for rapid change • Barrier to diversity • Strong cultures put considerable pressure on employees to conform, which may lead to institutionalized bias • Barrier to acquisitions and mergers • Incompatible cultures can destroy an otherwise successful merger

9. Institutionalization • Operates to produce common understandings among members about what is appropriate and, fundamentally, meaningful behavior.

10. How Culture Begins • Stems from the actions of the founders: • Founders hire and keep only employees who think and feel the same way they do. • Founders indoctrinate and socialize these employees to their way of thinking and feeling. • The founders’ own behavior acts as a role model that encourages employees to identify with them and thereby internalize their beliefs, values, and assumptions.

11. Keeping Culture Alive • Selection • Concerned with how well the candidates will fit into the organization • Provides information to candidates about the organization • Top Management • Senior executives help establish behavioral norms that are adopted by the organization • Socialization • The process that helps new employees adapt to the organization’s culture

12. Socialization process • Prearrival – the period of learning that occurs before the new employee joins the organization. • Encounter – the stage in which a new employee sees what the organization is really like and confronts the possibility that expectations and reality may diverge. • Metamorphosis – the stage in which a new employee changes and adjusts to the job, work group and organization.

13. How Employees Learn Culture • Stories • Anchor the present into the past and provide explanations and legitimacy for current practices • Rituals • Repetitive sequences of activities that express and reinforce the key values of the organization • Material Symbols • Acceptable attire, office size, and executive perks that convey to employees who is important in the organization • Language • Jargon and special ways of expressing one’s self to indicate membership in the organization

14. Creating An Ethical Organizational Culture • Managerial Practices Promoting an Ethical Culture • Being a visible role model. • Communicating ethical expectations. • Providing ethical training. • Visibly rewarding ethical acts and punishing unethical ones. • Provide protective mechanisms.

15. Creating a Positive Organizational Culture • A positive organizational culture emphasizes building on employee strengths, rewards more than it punishes, and emphasizes individual vitality and growth. • A) Building on Employee Strengths • B) Rewarding More than Punishing • C) Emphasizing Vitality and Growth

16. A- Building on Employee Strengths • A positive organizational culture does emphasize showing workers how they can capitalize on their strengths. • Organizations must help their employees to discover the strengths.

17. B- Rewarding more than Punishing • Part of creating a positive organizational culture is “catching employees doing something right.” • It is important to not just focus on extrinsic rewards such as pay and promotions, but also power of smaller (and cheaper) rewards such as praise.

18. C- Emphasizing Vitality and Growth • A positive culture recognizes the difference between a job and a career. • It supports not only what the employee contributes to organizational effectiveness but also how the organization can make the employee more effective.

19. Creating a Customer-Responsive Culture • Key Variables Shaping Customer-Responsive Cultures • The types of employees hired by the organization. • Low formalization: the freedom to meet customer service requirements. • Empowering employees with decision-making discretion to please the customer. • Good listening skills to understand customer messages. • Role clarity that allows service employees to act as “boundary spanners.” • Employees who engage in organizational citizenship behaviors.

20. Spirituality and Organizational Culture • Characteristics: • Strong sense of purpose • Focus on individual development • Trust and openness • Employee empowerment • Toleration of employee expression

21. Why Spirituality Now? • Spirituality can counterbalance the pressures and stress of a turbulent pace of life. • Job demands have made the workplace dominant in many people’s lives, yet they continue to question the meaning of work. • The desire to integrate personal life values with one’s professional life. • An increasing number of people are finding that the pursuit of more material acquisitions leaves them unfulfilled.