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ORGANIZATIONAL BEHAVIOR
W W W . P R E N H A L L . C O M / R O B B I N S
T E N T H E D I T I O N
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Besides your textbook concepts, you
will also learn to:
1. Understand the role of organizational culture
2. Vision, mission ,values
3. Dominant, culture/sub-cultures
4. Merging cultures
5. Creativity and innovation in workplace
6. Organizational socialization
7. Keeping culture aliveLEA
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The Basic Functions of Organizational Culture
Organizational
Culture/basic functions
Provides a
sense ofidentity for
members
Enhancescommitment
to the
organizations
mission
Clairifiesand
reinforces
standards
of behavior
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Core Organizational Values
Reflected in Culture
Sensitivity to needs of customers and employees
Freedom to initiate new ideas
Willingness to tolerate taking risks
Openness to communication options
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Organizational Culture
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Todays Mergers and Acquisitions: Will They be Tomorrows Culture Clashes?
This bank
Citicorp
Bank America
Bank One
First Union
Merged with
Travelers
Nations Bank
First Chicago NBD
Corestates
To become
Citigroup
Bankamerica
Bank One
First Union
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Components of Creativity
Skills in
the Task
Domain
Skills in
Creative
Thinking
Intrinsic
MotivationGreatest
creativity
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Skills in Innovation Management: A Careful Balancing Act
GoalsLinked to
corporate
mission
but not
overly
specific
Reward SystemsGenerously
and fairly
reward ones
contributors
but not so
specific as
to connect
everything to
money
Time PressureSense
of
urgencybut not
too urgent
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The Process of Innovation
Stage 1
Settingthe
Agenda
Stage 2
Settingthe
Stage
Stage 3
Producingthe
Ideas
Stage 4
Testing andImplementing
the Ideas
Stage 5
OutcomeAssessment
End
EndSuccess
Failure
Progress
Motivation
Individual
or TeamProductivity
Resources
Skills
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Creating a Customer-Responsive Culture
Key Variables Shaping Customer-ResponsiveCultures
1. The types of employees hired by the organization.
2. Low formalization: the freedom to meet customerservice requirements.
3. Empowering employees with decision-makingdiscretion to please the customer.
4. Good listening skills to understand customermessages.
5. Role clarity that allows service employees to act asboundary spanners.
6. Employees who engage in organizational citizenshipbehaviors.
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Creating An Ethical Organizational Culture
Characteristics of Organizations that DevelopHigh Ethical Standards
High tolerance for risk
Low to moderate in aggressiveness
Focus on means as well as outcomes
Managerial Practices Promoting an Ethical
Culture
Being a visible role model.
Communicating ethical expectations.
Providing ethical training.
Visibly rewarding ethical acts and punishing unethicalones.
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What Is Organizational Culture?
Characteristics:
1. Innovation and risktaking
2. Attention to detail
3. Outcome orientation
4. People orientation
5. Team orientation
6. Aggressiveness
7. Stability
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Institutionalization: A Forerunner of Culture
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What Is Organizational Culture? (contd)
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What Is Organizational Culture? (contd)
Culture Versus Formalization
A strong culture increases behavioral consistency andcan act as a substitute for formalization.
Organizational Culture Versus National Culture
National culture has a greater impact on employeesthan does their organizations culture.
Nationals selected to work for foreign companies maybe atypical of the local/native population.
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What Do Cultures Do?
Cultures Functions:
1. Defines the boundary between one
organization and others.2. Conveys a sense of identity for its members.
3. Facilitates the generation of commitment to
something larger than self-interest.
4. Enhances the stability of the social system.
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What Do Cultures Do?
Culture as a Liability:
1. Barrier to change
2. Barrier to diversity
3. Barrier to acquisitions and
mergers
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Creating a Customer-Responsive Culture
Managerial Actions:
Select new employees with personality and
attitudes consistent with high service
orientation.
Train and socialize current employees to be
more customer focused.
Change organizational structure to give
employees more control.
Empower employees to make decision about
their jobs.
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Keeping Culture Alive
Selection
Concerned with how well the candidates will fit into theorganization.
Provides information to candidates about theorganization.
Top Management
Senior executives help establish behavioral norms thatare adopted by the organization.
Socialization
The process that helps new employees adapt to theorganizations culture.
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Stages in the Socialization Process
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A Socialization Model
E X H I B I T 18-2
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Entry Socialization Options
Formal versus Informal
Individual versus Collective
Fixed versus Variable
Serial versus Random
Investiture versus Divestiture
E X H I B I T 18-3
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How Organization Cultures Form
E X H I B I T 18-4
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How Employees Learn Culture
Stories
Rituals
Material Symbols
Language
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Creating a Customer-Responsive Culture
Managerial Actions (contd) :
Lead by conveying a customer-focused vision
and demonstrating commitment to customers.
Conduct performance appraisals based oncustomer-focused employee behaviors.
Provide ongoing recognition for employees who
make special efforts to please customers.
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Spirituality and Organizational Culture
Characteristics:
Strong sense ofpurpose
Focus on individualdevelopment
Trust and openness
Employee
empowerment Toleration of employee
expression
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How Organizational Cultures Have an Impact
on Performance and Satisfaction
E X H I B I T 18-7