cloe sem 2_organizational culture (1)

8/16/2019 CLOE Sem 2_organizational Culture (1)

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Organizational Culture

DEFINITIONCurs 1


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Exercise• Defne your own business, in as

many aspects as possible• resent your business• !omewor"# I$enti%y in a boo"&mo'ie

t(e type o% business t(at youcreate$, an$ $escribe (ow t(e mainc(aracters be(a'e


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Do all organizations (a'et(e same culture)• *re you going to t(e mall in t(e same

way as you go to t(e c(urc()• *re t(ere rules o% con$uct)• *re t(ere $i+erent be(a'iours)• *re t(ere $i+erent expectations)•

(oul$ you learn (ow to -oin a newgroup& a new business& a new place)


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.(at loo"s li"e t(eorganizational culture)

• *s a uni/ue personality• !ow people are grouping•

!ow t(e $ecision0ma"ing processeswor"• !ow people be(a'e


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!ow we $efne t(eorganizational culture)

• .(at are t(e un$erlying 'alues,assumptions, expectations

• .(at is t(e general p(ilosop(y base$on w(ic( t(e organization wasestablis(

• !ow is t(is p(ilosop(y is connecte$to t(e organizational i$entity


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DEFINITION• The system of beliefs, values,

assumptions and subsequentunderstandings andinterpretations of theorganizational reality, that areshared among all members of

the organization• Such system dictates all the

organizational behaviour and

climate


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E2 T3*ITCurs 4


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e'en "ey traits

1. Innovation 63is" Orientation72. Attention to etail 6 recision

Orientation7!. "mphasis on

#utcome 6*c(ie'ementOrientation7

$. "mphasis on %eople 6FairnessOrientation7

&. Team'or( 6CollaborationOrientation7


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FO8ND*TION OF OCCurs 9


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Foun$ations o% organizationalculture

• Anthropology – understandingvalues & beliefs , andhow theyaffect the structure and functioning of thesociety

• Sociology – focusing on thecauses and consequencesof culture and the culture’s myths and rituals

• Social psychology – explaining why organizationalculture affects employees so strongly

• Economics – most organizationsvalue their cultureonly if it helps the organization to becomeproductive andprofitable


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Organizational culture 0 :*;8E

Fraya Andrews (1991) – !irtually e!ery author who has writtenabout culture has come up with anew definition"Common threads:

•

Involving organizationalvalues – right#wrong,acceptable#unacceptable• $alues are ta en for granted , not really written down• !rgani"ational !alues are transferred to employee#s values•

$alues are transmitted symbolically• Attempts ofpromoting the values• A set ofshared meanings• $eading people inunderstanding and acting according to

acceptable !isions, !alues, positions and standards


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Organizational culture, some$efnitions

• %ettigrew(19%9) –meanings collectively accepted , and theorganizationacts on behalf of these, unifying patterns (&awson and'hen, 199 )

• Asocial construct• ifferent organizationalfunctions – structure stability• Expressed in a diversity of ways – stories, symbols, actions, legends,

rituals, *nowledge, rules that are culti!ated"• Schein (199+) – themost common aspects of organizational culture

are the 'basic assumptions(• )ormally communicated, but also based on tacit assumptions• *atch (199%) – theindividual contributionshapes the shared

organi"ational meanings• avenport (199 ) – people usemetaphors (dense meanings ) to


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*pproac(es on organizationalculture 6I7

+, -heory . – illiam -. !uchi (19 1) – analyzing the culture of anumber of companies and identifyingthe optimum culture

/, 0anagement excellence – /om %eters and 0obert

1aterman (19 +) – management e cellence is brought aboutby 2 cultural attributes3, 4ites and rituals – /. 2. eal and A. A.5ennedy (19 +)6, Schein (199+),Schult" (1993),*arrison (1993) –

organizations display + main organizational orientationsspecificto an organizational culture –tas s and relationships


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* 3O*C!ECurs <


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*pproac(es on organizationalculture 6I7

+, -heory . – illiam -. !uchi (19 1) – analyzing the culture of anumber of companies and identifyingthe optimum culture

/, 0anagement excellence – /om %eters and 0obert

1aterman (19 +) – management e cellence is brought aboutby 2 cultural attributes3, 4ites and rituals – /. 2. eal and A. A.5ennedy (19 +)6, Schein (199+),Schult" (1993),*arrison (1993) –

organizations display + main organizational orientationsspecificto an organizational culture –tas s and relationships


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E3 ECTI:E 1


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T(eory = 6I7

• !uchi was among the first researchers in the field oforganizational culture

• -hree types of companies – American, 4apanese and

/ype 5• 'ince 19%6s, 7apanese companies to challenge the

American success• 4apanese automobile, electronics, manufacturing

industries reputed for 7uality, reliability, !alue andser!ice

• /he success was attributed to cultural specifics ,

through theories promoted in 19 6s and 1996s


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T(eory = 6II7 7

• 8uchi reinforces the findings of0aslow about /heory5 (mass therapy)

• *ierarchy of personal needs :hysiological, 'ecurity,

;elongingness, 2steem, 'elf actualizion• ;lending the -heory 8 (employees ha!e negative

tendencies that are to be controlled and eliminated)and the -heory 9 (employees are important humanbeings , ha!ing needs of self esteem and selfactualization that are to be addressed)

• /heory 5 – wa – the harmony andthe "eal are *eyprinciples of 4apanese companies


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T(eory = 6III7

• Seven differentcultural values <• =ommitment to employees $-!• 2!aluation – slow• =areers – moderately speciali"ed• =ontrol –implicit and formali"ed control• >ecision ma*ing –collective• 0esponsibility –individual• =oncern for people –holistic• 'ome cultural aspects are more 4apanese li*e, some

are American


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E3 ECTI:E 4


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>anagement Excellence II7

• Eight attributes of successful firms throughmoti!ating employees to feel as winners<

• ias for action – without postponing• Close to customer – true appreciation• Autonomy and entrepreneurship – ris* creati!ity• %roductivity through people – respect• *ands;on management – direct connection• Stic to the nitting – to the reputed brand• Simple form, lean staff – easy controlled•

$oosely and tightly organizations – culture focus


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E3 ECTI:E 9


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3ites an$ 3ituals II7

• eal and 5ennedy (19 +) –organi"ationalculture has 6 ey elements <

•


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E3 ECTI:E <


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Organizational culture as a 'ariable

• Smircich (19 ?) – culture as avariable correlating withperformance and leadership

• @anagers’ and employees’actions are in direct connection

with cultural aspects• $eadership is e!idently connected withcultural traits suchas rituals, norms, !alues, symbols, heroes, aso

• owe!er, the former theories ofgaining effectiveness

through empoweringa strong culture are not yet generallyaccepted• 0ather, changing organi"ational culture is !iewed as apart of the overall organi"ational change

• Also,organi"ational performance and employees


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T2 E OF O3?*NI=*TIONCurs @


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Types o% organizational cultures•

>imensions• – flexibility( liberty, discretion)vs stability (

control)• – internal focus ( integration)vs external focus (

differentiation, competition)• Clan culture• *ierarchy culture• Adhocracy culture• 0ar et culture(Cameron and =uinn , +66B)

+ A- f, i/ A 0#+ A+ f,e/

0I" A +0 s,i/

3A 4"T s,e/


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Impact o% culture types on !3>6people7

• Clan culture – 0@responds to employees needs andencourages creativity . 0ole reengineering of human resources. 0ole


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Can cultures be c(ange$)

• 8rganizational culture isnot easily changed• 0anaging the symbols that are important• =reating new heroes and especially narratives that

establish new beliefs? rituals? truths? values• Communicating values through networ*s at formal and

informal le!el ( cultural networ*s")• 0otivating people that embrace new values• Encouraging new approaches and supporting new set;

ups• ;uilding a collaborative culture•

Supporting sub;cultures ( oisnier , Chatman , +66+)

I % l i


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Impact o% culture on commitment6 a$ma an$ Nair, 4AAB7

%ublic institutions• Adhocracy – significant impact onnormative

commitment•

*ierarchy (dominant) –reduces continuance andnormative commitment

%rivate organi"ations•

Clan culture – stimulates allthree types of commitment• 0ar et culture (dominant) –reduces affective

commitment

D-hree types of commitment – affective, continuance and


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>ET* !O3Curs


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>etap(ors an$ organizationalculture 6I7

• Culture as a root metaphor• En!iting toreflectivity (Alvesson , +66+)• /he theory claims that organi"ation is a culture , insteadof the organizationhas a culture

• !rgani"ations shaped as cultures• Symbolic constructs• 'Expressive( manifestations (Smircich , 19 ?)• 8rganizational culture isnot @ust another piece of thepu""le , it is the puzzle"

(%acanows yand !# onnell;-ru@illo, 19 ?)

Org ni tion l c lt re s


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Organizational culture as ametap(or 6II7

+, Compass (guiding and differentiating good" and wrong"!alues)

/, Social glue (integrating organi"ational people, normes andobGecti!es throughshared values & norms

3, Sacred cow (ideali"ation of a collecti!e !ision on success)6, Affect;regulator (attempt of creatingsocial consistencythroughmanaging emotions )

B, isorder and ambiguity (culture isthe @ungleitself)

, linders (unconscious !alues forcing the collective psycheinto a standardised prison )

D, Exchange;regulator (controlling through amain paradigm )2, 1orld closure (fixed interpretive schemes promoted by

management)


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Organizational CultureT3ON? *ND .E*

C8;T83ECurs

trong cultures an$ wea" culture


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trong cultures an$ wea culture6I7

• En astrong culture, employeesattitudes and behaviours are

go!erned by their alignment to the organi"ational values• A strong culture implies acoherent set of beliefs? values?

assumptions and practices? embraced by the mostmembers

• Control is exercised through !alues and commitment to!alues

• 5ilmann , Saxton and Serpa (19 B) –members pressureeach other to align to the norms

• En a wea culture, the staff is not congruent with theorganizational !alues

• Control needs extensive regulation>bureaucracy

(5umar , +61+)

trong cultures 's wea" cultures


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trong cultures s wea cultures6II7

• An organization withstrong culture andhigh ethicalstandards has a positive impact on organi"ationaldevelopment (;yrne, +66+)

• A strong culture also displays a per!asi!eness ofconsistent beliefs, !alues, attitudes, assumptions,actions and practices• 2arly theories – a strong culture isbeneficial , as itfosters motivation? identity? solidarity? loyalty

• /hat led to internal integration and smooth

coordination• owe!er, there are dysfunctions brought about by thepressure , control and manipulation? instead of and agoal oriented !iew

(5umar

, +61+)


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Dillemas o% organizational cultur

• 1. )ormal !s informal• +.Control !s autonomy• ?. Effectiveness !s uncertainty ambiguity• H.Exploitation !s exploration• 3. 0otivation !s dissatisfaction• B.$oyalty !s conditional support• %.Strong identity (cohesion) !s flexible loose

organizationaldefinition• .Consensus !s two;way communication


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?eert !o%ste$e• T(e cultural aspects wit(in t(e organizations• Exten$e$ to general 6national7 cultural patterns• ase$ on a stu$y $e'elope$ in A countries• imensions5• ower Distance In$ex 6 DI7• In$i'i$ualism 's Collecti'ism 6ID:7• >asculinity 's Femininity 6>* 7• 8ncertainty *'oi$ance 68*I7•

3ecently a$$e$#• ;ong Term Orientation 6;TO7• In$ulgence 's 3estraint 6IND7• (ttp#&&geert0(o%ste$eGcom&$imensionsG(tml

http://geert-hofstede.com/dimensions.htmlhttp://geert-hofstede.com/dimensions.htmlhttp://geert-hofstede.com/dimensions.htmlhttp://geert-hofstede.com/dimensions.html


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!o%ste$e


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!o%ste$e


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!o%ste$e


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cloe sem 2_organizational culture (1)

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