Shaping Culture and Values

1. Shaping Culture and Values

2. Functions of Culture in business • Culture provides a sense of identity to members and increases commitment. • Culture provides a way for employees to interpret the meaning of organizational events. • Culture reinforces the values of the organization. • Culture serves as a control mechanisms for shaping behavior.

3. The Concept of culture • Sir Edward Burnett Taylor (1832-1917) • First alluded to in the Hawthorne studies by Elton Mayo -established that workplaces are social environments • The topic of corporate culture emerged in the 1970s

4. The wheel of culture. An interdisciplinary analysis Culture Involves: Behavioral psychologySociologyOrganization behaviorCommunication

5. Culture The set of key values, assumptions, understandings, and norms that is shared by members of an organization and taught to new members as correct

6. Ex. 14.1 Levels of Corporate Culture Culture that can be seen at the surface level Visible • Artifacts such as dress, office layout, symbols, slogans, ceremonies Invisible • Expressed values, such as “The Penney Idea,” “The HP Way” • Underlying assumptions and deep beliefs, such as “people here care about one another like a family” Deeper values and shared understandings held by organization members

7. Importance of Culture • It integrates members so that they know how to relate to one another. (Internal) • Guides day-to-day work • Determines how communication occurs in the workplace • What behavior is acceptable • How power and status are allocated

8. Importance of Culture • It helps the organization adapt to the external environment. (External) • How organization meets goals and deals with outsiders • How organization responds to customers/competitors

9. Culture Strength The degree of agreement among employees about the importance of specific values and ways of doing things

10. Ex. 14.2 Adaptive Versus Unadaptive Cultures

11. Culture Gap • The difference between desired and actual values and behaviors • Exists in all organizations to some degree • Must pay attention to when people are adhering to the wrong values • Difficulty in merging cultures

12. High Performance Culture • Strong culture encourages adaptation • Strong adaptive cultures often incorporate the following values • The whole is more important than the pars and boundaries between parts are minimized • Equality and trust arte primary values • The culture encourages risk taking, change and improvement

13. Cultural Leadership • Defines and uses signals and symbols to influence corporate culture • Articulates a vision for the organizational culture that employees can believe in • The cultural leader heeds the day-to-day activities that reinforce the cultural vision

14. Ceremonies, Stories, and Symbols Ceremonies • Planned activities that make up special events and are generally conducted for the benefit of an audience Stories • Narratives based on true events that are repeated frequently and shared among employees Symbols • A object, act, or event that conveys meaning to others

15. Language, Selection, Socialization and Daily Actions • Specialized language – slogans or sayings to express key corporate values • Selection – hiring the right people • Socialization - the process by which a person learns the values, norms perspectives, and expected behaviors that enable him or her to successfully participate in the group or organization • Daily actions – the signaling and support of important cultural values through a leader’s daily actions.

16. Ex. 14.3 Four Corporate Cultures Flexibility Clan Culture (Impoverished Ldr) Adaptability Culture (Enlightened Ldr) Values: Cooperation Consideration Agreement Fairness Social equality Values: Creativity Experimentation Risk-taking Autonomy Responsiveness External focus Internal focus Bureaucratic Culture (Exploitive Ldr) Achievement Culture (Supportive Ldr) Values: Economy Formality Rationality Order Obedience Values: Competitiveness Perfectionism Aggressiveness Diligence Personal initiative Stability

17. Ethics The code of moral principles and values that governs the behavior of a person or group with respect to what is right and wrong

18. Personal Ethics • Employees learn from watching leaders • Ethical leaders generate high trust and respect • Based on courage, determination and self-sacrifice • Must uphold commitment to values during difficult times

19. Values • Fundamental beliefs that an individual considers to be important, that are relatively stable over time, and that have an impact on attitudes and behavior. • End Values • Sometimes called terminal values, these are beliefs about the kind of goals or outcomes that are worth trying to pursue. • Instrumental Values • Beliefs about the types of behavior that are appropriate for reaching goals.

20. Spiritual Values • Values and practices: • Integrity • Humility • Respect • Appreciation for the contributions of others • Fair treatment • Personal reflection

21. Spiritual Leadership • Create a vision through which organization participants experience a sense of spiritual expression through calling and membership • Establish a corporate culture based on altruistic love • Addresses followers’ higher order needs for membership and self-actualization • Reduces negative feelings, emotions and conflicts