eleventh organizational ior editi on behav stephen p robbins Chapter 16 Organizational Culture ORGANIZATIONAL BEHAVIOR S T E P H E N P R O B B I N S E L E V E N T H © 2005 Prentice Hall Inc All rights reserved E D I T I O N WWW PRE N HALL C OM / ROB BI N S PowerPoint Presentation by Charlie Cook OBJECTIVES LEARNING After studying this chapter, you should be able to: Describe institutionalization and its relationship to organizational culture Define the common characteristics making up organizational culture Contrast strong and weak cultures Identify the functional and dysfunctional effects of organizational culture on people and the organization Explain the factors determining an organization’s culture © 2005 Prentice Hall Inc All rights reserved 16– O B J E C T I V E S (cont’d) LEARNING After studying this chapter, you should be able to: List the factors that maintain an organization’s culture Clarify how culture is transmitted to employees Outline the various socialization alternatives available to management Describe a customer-responsive culture 10 Identify characteristics of a spiritual culture © 2005 Prentice Hall Inc All rights reserved 16–4 Institutionalization: Institutionalization: AAForerunner Forerunner of of Culture Culture Institutionalization When an organization takes on a life of its own, apart from any of its members, becomes valued for itself, and acquires immortality © 2005 Prentice Hall Inc All rights reserved 16–5 What What Is Is Organizational Organizational Culture? Culture? Organizational Culture A common perception held by the organization’s members; a system of shared meaning Characteristics: Characteristics: 1.1 Innovation Innovationand andrisk risk taking taking 2.2 Attention Attentionto todetail detail 3.3 Outcome Outcomeorientation orientation 4.4 People Peopleorientation orientation 5.5 Team Teamorientation orientation 6.6 Aggressiveness Aggressiveness 7.7 Stability Stability © 2005 Prentice Hall Inc All rights reserved 16– Contrasting Contrasting Organizational Organizational Cultures Cultures Organization A This organization is a manufacturing firm Managers are expected to fully document all decisions; and “good managers” are those who can provide detailed data to support their recommendations Creative decisions that incur significant change or risk are not encouraged Because managers of failed projects are openly criticized and penalized, managers try not to implement ideas that deviate much from the status quo One lower-level manager quoted an often used phrase in the company: “If it ain’t broke, don’t fix it.” There are extensive rules and regulations in this firm that employees are required to follow Managers supervise employees closely to ensure there are no deviations Management is concerned with high productivity, regardless of the impact on employee morale or turnover Work activities are designed around individuals There are distinct departments and lines of authority, and employees are expected to minimize formal contact with other employees outside their functional area or line of command Performance evaluations and rewards emphasize individual effort, although seniority tends to be the primary factor in the determination of pay raises and promotions © 2005 Prentice Hall Inc All rights reserved E X H I B I T 16–1 E X H I B I T 16–1 16–7 Contrasting Contrasting Organizational Organizational Cultures Cultures (cont’d) (cont’d) Organization B This organization is also a manufacturing firm Here, however, management encourages and rewards risk taking and change Decisions based on intuition are valued as much as those that are well rationalized Management prides itself on its history of experimenting with new technologies and its success in regularly introducing innovation products Managers or employees who have a good idea are encouraged to “run with it.” And failures are treated as “learning experiences.” The company prides itself on being market-driven and rapidly responsive to the changing needs of its customers There are few rules and regulations for employees to follow, and supervision is loose because management believes that its employees are hardworking and trustworthy Management is concerned with high productivity, but believes that this comes through treating its people right The company is proud of its reputation as being a good place to work Job activities are designed around work teams, and team members are encouraged to interact with people across functions and authority levels Employees talk positively about the competition between teams Individuals and teams have goals, and bonuses are based on achievement of these outcomes Employees are given considerable autonomy in choosing the means by which the goals are attained © 2005 Prentice Hall Inc All rights reserved E X H I B I T 16–1 (cont’d) E X H I B I T 16–1 (cont’d) 16–8 Do Do Organizations Organizations Have Have Uniform Uniform Cultures? Cultures? Dominant Culture Expresses the core values that are shared by a majority of the organization’s members Subcultures Minicultures within an organization, typically defined by department designations and geographical separation © 2005 Prentice Hall Inc All rights reserved 16–9 Do Do Organizations Organizations Have Have Uniform Uniform Cultures? Cultures? (cont’d) (cont’d) Core Values The primary or dominant values that are accepted throughout the organization Strong Culture A culture in which the core values are intensely held and widely shared © 2005 Prentice Hall Inc All rights reserved 16– 10 What What Do Do Cultures Cultures Do? Do? Culture Cultureas asaaLiability: Liability: 1.1 Barrier Barrierto tochange change 2.2 Barrier Barrierto todiversity diversity 3.3 Barrier Barrierto toacquisitions acquisitionsand andmergers mergers © 2005 Prentice Hall Inc All rights reserved 16– 13 How How Culture Culture Begins Begins Founders hire and keep only employees who think and feel the same way they 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 © 2005 Prentice Hall Inc All rights reserved 16– 14 Keeping Keeping Culture Culture Alive Alive Selection – Concern 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 © 2005 Prentice Hall Inc All rights reserved 16– 15 Stages Stages in in the the Socialization Socialization Process Process Prearrival Stage The period of learning in the socialization process that occurs before a new employee joins the organization Encounter Stage The stage in the socialization process in which a new employee sees what the organization is really like and confronts the possibility that expectations and reality may diverge Metamorphosis Stage The stage in the socialization process in which a new employee changes and adjusts to the work, work group, and organization © 2005 Prentice Hall Inc All rights reserved 16– 16 AASocialization Socialization Model Model © 2005 Prentice Hall Inc All rights reserved 16– 17 E X H I B I T 16–2 E X H I B I T 16–2 Entry Entry Socialization Socialization Options Options •• Formal Formalversus versusInformal Informal •• Individual Individualversus versusCollective Collective •• Fixed Fixedversus versusVariable Variable •• Serial Serialversus versusRandom Random •• Investiture Investitureversus versusDivestiture Divestiture © 2005 Prentice Hall Inc All rights reserved Source: Based on J Van Maanen, “People Processing: Strategies of Organizational Socialization,” Organizational Dynamics, Summer 1978, pp 19–36; and E H Schein, Organizational Culture,” American Psychologist, February 1990, p 116 16– 18 E X H I B I T 16–3 E X H I B I T 16–3 How How Organization Organization Cultures Cultures Form Form © 2005 Prentice Hall Inc All rights reserved 16– 19 E X H I B I T 16–4 E X H I B I T 16–4 How How Employees Employees Learn Learn Culture Culture •• Stories Stories •• Rituals Rituals •• Material MaterialSymbols Symbols •• Language Language © 2005 Prentice Hall Inc All rights reserved 16– 20 Creating Creating An An Ethical Ethical Organizational Organizational Culture Culture Characteristics of Organizations that Develop High 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 Rewarding ethical acts and punishing unethical ones Providing protective mechanisms © 2005 Prentice Hall Inc All rights reserved 16– 21 Creating Creating aa Customer-Responsive Customer-Responsive Culture 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 © 2005 Prentice Hall Inc All rights reserved 16– 22 Creating CreatingaaCustomer-Responsive Customer-Responsive Culture Culture(cont’d) (cont’d) Managerial ManagerialActions Actions:: •• Select Selectnew newemployees employeeswith withpersonality personalityand and attitudes attitudesconsistent consistentwith withhigh highservice service orientation orientation •• Train Trainand andsocialize socializecurrent currentemployees employeesto tobe be more morecustomer customerfocused focused •• Change Changeorganizational organizationalstructure structureto togive give employees employeesmore morecontrol control •• Empower Empoweremployees employeesto tomake makedecision decisionabout about their theirjobs jobs © 2005 Prentice Hall Inc 16– All rights reserved 23 Creating CreatingaaCustomer-Responsive Customer-Responsive Culture Culture(cont’d) (cont’d) Managerial ManagerialActions Actions(cont’d) (cont’d):: •• Lead Leadby byconveying conveyingaacustomer-focused customer-focusedvision vision and anddemonstrating demonstratingcommitment commitmentto tocustomers customers •• Conduct Conductperformance performanceappraisals appraisalsbased basedon on customer-focused customer-focusedemployee employeebehaviors behaviors •• Provide Provideongoing ongoingrecognition recognitionfor foremployees employeeswho who make makespecial specialefforts effortsto toplease pleasecustomers customers © 2005 Prentice Hall Inc All rights reserved 16– 24 Spirituality Spirituality and and Organizational Organizational Culture Culture Workplace Spirituality The recognition that people have an inner life that nourishes and is nourished by meaningful work that takes place in the context of the community Characteristics: Characteristics: • • Strong Strongsense senseof ofpurpose purpose • • Focus Focuson onindividual individualdevelopment development • • Trust Trustand andopenness openness • • Employee Employeeempowerment empowerment • • Toleration Tolerationof ofemployee employeeexpression expression © 2005 Prentice Hall Inc All rights reserved 16– 25 Reasons Reasons for for the the Growing Growing Interest Interest in in Spirituality Spirituality As a counterbalance to the pressures and stress of a turbulent pace of life and the lack of community many people feel and their increased need for involvement and connection Formalized religion hasn’t worked for many people 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 Job demands have made the workplace dominant in many people’s lives, yet they continue to question the meaning of work © 2005 Prentice Hall Inc All rights reserved 16– 26 E X H I B I T 16–5 E X H I B I T 16–5 How How Organizational Organizational Cultures Cultures Have Have an an Impact Impact on on Performance Performance and and Satisfaction Satisfaction © 2005 Prentice Hall Inc All rights reserved 16– 27 E X H I B I T 16–6 E X H I B I T 16–6 [...]... Processing: Strategies of Organizational Socialization,” Organizational Dynamics, Summer 19 78, pp 19 – 36; and E H Schein, Organizational Culture,” American Psychologist, February 19 90, p 11 6 16 – 18 E X H I B I T 16 –3 E X H I B I T 16 –3 How How Organization Organization Cultures Cultures Form Form © 2005 Prentice Hall Inc All rights reserved 16 – 19 E X H I B I T 16 –4 E X H I B I T 16 –4 How How Employees... meaning of work © 2005 Prentice Hall Inc All rights reserved 16 – 26 E X H I B I T 16 –5 E X H I B I T 16 –5 How How Organizational Organizational Cultures Cultures Have Have an an Impact Impact on on Performance Performance and and Satisfaction Satisfaction © 2005 Prentice Hall Inc All rights reserved 16 – 27 E X H I B I T 16 6 E X H I B I T 16 6 ... process in which a new employee changes and adjusts to the work, work group, and organization © 2005 Prentice Hall Inc All rights reserved 16 – 16 AASocialization Socialization Model Model © 2005 Prentice Hall Inc All rights reserved 16 – 17 E X H I B I T 16 –2 E X H I B I T 16 –2 Entry Entry Socialization Socialization Options Options •• Formal Formalversus versusInformal Informal •• Individual Individualversus... organization © 2005 Prentice Hall Inc All rights reserved 16 – 12 What What Do Do Cultures Cultures Do? Do? Culture Cultureas asaaLiability: Liability: 1. 1 Barrier Barrierto tochange change 2.2 Barrier Barrierto todiversity diversity 3.3 Barrier Barrierto toacquisitions acquisitionsand andmergers mergers © 2005 Prentice Hall Inc All rights reserved 16 – 13 How How Culture Culture Begins Begins Founders hire... organization’s culture – Nationals selected to work for foreign companies may be atypical of the local/native population © 2005 Prentice Hall Inc All rights reserved 16 – 11 What What Do Do Cultures Cultures Do? Do? Culture’s Culture’sFunctions: Functions: 1. 1 Defines Definesthe theboundary boundarybetween betweenone oneorganization organization and andothers others 2.2 Conveys Conveysaasense senseof ofidentity... training Rewarding ethical acts and punishing unethical ones Providing protective mechanisms © 2005 Prentice Hall Inc All rights reserved 16 – 21 Creating Creating aa Customer-Responsive Customer-Responsive Culture Culture Key Variables Shaping Customer-Responsive Cultures 1 The types of employees hired by the organization 2 Low formalization: the freedom to meet customer service requirements 3 Empowering... please the customer 4 Good listening skills to understand customer messages 5 Role clarity that allows service employees to act as “boundary spanners.” 6 Employees who engage in organizational citizenship behaviors © 2005 Prentice Hall Inc All rights reserved 16 – 22 Creating CreatingaaCustomer-Responsive Customer-Responsive Culture Culture(cont’d) (cont’d) Managerial ManagerialActions Actions:: •• Select... currentemployees employeesto tobe be more morecustomer customerfocused focused •• Change Changeorganizational organizationalstructure structureto togive give employees employeesmore morecontrol control •• Empower Empoweremployees employeesto tomake makedecision decisionabout about their theirjobs jobs © 2005 Prentice Hall Inc 16 – All rights reserved 23 Creating CreatingaaCustomer-Responsive Customer-Responsive... ongoingrecognition recognitionfor foremployees employeeswho who make makespecial specialefforts effortsto toplease pleasecustomers customers © 2005 Prentice Hall Inc All rights reserved 16 – 24 Spirituality Spirituality and and Organizational Organizational Culture Culture Workplace Spirituality The recognition that people have an inner life that nourishes and is nourished by meaningful work that takes place in the... Employees Learn Learn Culture Culture •• Stories Stories •• Rituals Rituals •• Material MaterialSymbols Symbols •• Language Language © 2005 Prentice Hall Inc All rights reserved 16 – 20 Creating Creating An An Ethical Ethical Organizational Organizational Culture Culture Characteristics of Organizations that Develop High Ethical Standards – High tolerance for risk – Low to moderate in aggressiveness – Focus