Robbins: Organizational Behavior

Chapter Eighteen

ORGANIZATIONAL CULTURE
LEARNING OBJECTIVES After studying this chapter, students should be able to: 1. 2. 3. !. #. '. ). *. -. 1/. Describe institutionalization and its relationship to organizational culture. Define the common characteristics making up organizational culture. Contrast strong and eak cultures. "dentify the functional and dysfunctional effects of organizational culture on people and the organization. $%plain the factors determining an organization&s culture. (ist the factors that maintain an organization&s culture. Clarify ho culture is transmitted to employees. +utline the ,arious socialization alternati,es a,ailable to management. Describe a customer.responsi,e culture. "dentify characteristics of a spiritual culture.

CHAPTER OVERVIEW $%hibit 1*.) depicts organizational culture as an inter,ening ,ariable. $mployees form an o,erall sub0ecti,e perception of the organization based on such factors as degree of risk tolerance, team emphasis, and support of people. 1his o,erall perception becomes, in effect, the organization&s culture or personality. 1hese fa,orable or unfa,orable perceptions then affect employee performance and satisfaction, ith the impact being greater for stronger cultures. 2ust as people&s personalities tend to be stable o,er time, so too do strong cultures. 1his makes strong cultures difficult for managers to change. 3hen a culture becomes mismatched to its en,ironment, management ill ant to change it. 4o e,er, as the 5oint.Counterpoint debate for this chapter demonstrates, changing an organization&s culture is a long and difficult process. 1he result, at least in the short term, is that managers should treat their organization&s culture as relati,ely fi%ed. +ne of the more important managerial implications of organizational culture relates to selection decisions. 4iring indi,iduals hose ,alues do not align ith those of the organization is likely to lead to employees ho lack moti,ation and commitment and ho are dissatisfied ith their 0obs and the organization. 6ot surprisingly, employee 7misfits8 ha,e considerably higher turno,er rates than indi,iduals ho percei,e a good fit. 3e should also not o,erlook the influence socialization has on employee performance. An employee&s performance depends to a considerable degree on kno ing hat he should or should not do. 9nderstanding the right ay to do a 0ob indicates proper socialization. :urthermore, the appraisal of an indi,idual&s performance includes ho ell the person fits into the organization. Can he or she get along ith co orkers; Does he<she ha,e acceptable ork habits and demonstrate the right attitude; 1hese =ualities differ bet een 0obs and organizations. :or instance, on some 0obs, employees ill be e,aluated more fa,orably if they are aggressi,e and out ardly indicate that they are ambitious. +n another 0ob, or on the same 0ob in another organization, such an approach may be e,aluated negati,ely. As a result, proper socialization becomes a significant factor in influencing both actual 0ob performance and ho it is percei,ed by others.

WEB EXERCISES At the end of each chapter of this instructor&s manual, you ill find suggested e%ercises and ideas for researching the 333 on +> topics. 1he e%ercises 7$%ploring +> 1opics on the 3eb8 are set up so that you can simply photocopy the pages, distribute them to your class, and make assignments accordingly. ?ou may ant to assign the e%ercises as an out.of.class acti,ity, or as lab acti,ities ith your class. 3ithin the lecture notes the graphic ill note that there is a 333 acti,ity to support this material.

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Robbins: Organizational Behavior CHAPTER NOTES "nstitutionalization: A :orerunner of Culture 1. @ie ing organizations as culturesA here there is a system of shared meaning among membersAis a relati,ely recent phenomenon. 9ntil the mid.1-*/s, organizations ere rational means by hich to coordinate and control people. 2. +rganizations ha,e personalities too, 0ust like indi,iduals: Notes:

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1hey can be rigid or fle%ible, unfriendly or supporti,e, inno,ati,e or conser,ati,e. Beneral $lectric offices and people are different from the offices and people at Beneral Cills. 4ar,ard and C"1 are in the same businessAeducationAbut each has a uni=ue character.

3. 1he origin of culture as an independent ,ariable affecting an employee&s attitudes and beha,ior can be traced back more than #/ years ago to the notion of institutionalization. !. 3hen an organization becomes institutionalized, it is ,alued for itself, not merely hat it produces:

"t ac=uires immortality. "t redefines itself.

#. "nstitutionalization produces common understandings about hat is appropriate and, fundamentally, meaningful beha,ior. '. Acceptable modes of beha,ior become largely self.e,ident to its members. 1his is essentially the same thing that organizational culture does. 3hat "s +rganizational Culture; 1. Organizational cultureA7a system of shared meaning held by members that distinguishes the organization from other organizations.8 2. 1his system of shared meaning is a set of key characteristics that the organization ,alues. 1he research suggests se,en primary characteristics: Notes:

"nno,ation and risk taking Attention to detail +utcome orientation 5eople orientation 1eam orientation Aggressi,eness Dtability

3. $ach e%ists on a continuum from lo to high. Appraising the organization on these gi,es a composite picture of the organization&s culture. 1his is the basis for:

Dhared understanding that members ha,e. 4o things are done. 1he ay members are supposed to beha,e.

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Robbins: Organizational Behavior A. Culture Is a Descriptive Term 1. +rganizational culture is concerned ith ho employees percei,e its characteristics, not if they like them. Eesearch on organizational culture has sought to measure ho employees see their organization. 2. 2ob satisfaction seeks to measure affecti,e responses to the ork en,ironment, such as ho employees feel about the organization&s e%pectations, re ard practices, etc. 3. +rganizational culture is descripti,e, hile 0ob satisfaction is e,aluati,e. B. Do Organizations ave !ni"orm Cultures# 1. "ndi,iduals ith different backgrounds or at different le,els in the organization ill tend to describe the organization&s culture in similar terms. 2. 1here can be subcultures. Cost large organizations ha,e a dominant culture and numerous sets of subcultures. 3. A dominant culture e%presses the core ,alues that are shared by a ma0ority: Notes:

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An organization&s culture is its dominant culture. 1his macro ,ie of culture that gi,es an organization its distinct personality.

!. Dubcultures tend to de,elop in large organizations to reflect common problems, situations, or e%periences that members face:

Defined by department designations and geographical separation "t ill include the core ,alues plus additional ,alues uni=ue to members of the subculture. 1he core ,alues are essentially retained but modified to reflect the subculture.

#. "f organizations had no dominant culture and ere composed only of numerous subcultures, the ,alue of organizational culture as an independent ,ariable ould be significantly lessened:

"t is the 7shared meaning8 aspect of culture that makes it such a potent de,ice for guiding and shaping beha,ior. 3e cannot ignore the reality that many organizations also ha,e subcultures that can influence the beha,ior of members.

C. $trong vs. %ea& Cultures 1. 1he argument is that strong cultures ha,e a greater impact on employee beha,ior and are more directly related to reduced turno,er:

1he organization&s core ,alues are both intensely held and idely shared. A strong culture ill ha,e a great influence on the beha,ior of its members because the high degree of shared.ness and intensity creates an internal climate of high beha,ioral control.

2. +ne specific result of a strong culture should be lo er employee turno,er. A high agreement about hat the organization stands for builds cohesi,eness, loyalty, and organizational commitment.

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Robbins: Organizational Behavior D. Culture vs. 'ormalization 1. A strong organizational culture increases beha,ioral consistency. A strong culture can act as a substitute for formalization. 2. 4igh formalization in an organization creates predictability, orderliness, and consistency. 3. A strong culture achie,es the same end ithout the need for ritten documentation. 1herefore, formalization and culture are t o different roads to a common destination. E. Organizational Culture vs. National Culture 1. 6ational cultures must be taken into account if accurate predictions are to be made about organizational beha,ior in different countries. 2. Does national culture o,erride an organization&s culture; 1he research indicates that national culture has a greater impact on employees than does their organization&s culture. 3. 1his has to be =ualified to reflect the self.selection that goes on at the hiring stage. 1he employee selection process ill be used by multinationals to find and hire 0ob applicants ho are a good fit to their organization&s dominant culture. 3hat Do Cultures Do; A. Culture(s 'unctions 1. "t has a boundary.defining role. "t creates distinctions bet een one organization and others. 2. "t con,eys a sense of identity for organization members. 3. Culture facilitates commitment to something larger than one&s indi,idual self. interest. !. Culture is the social glue that helps hold the organization together. "t enhances social system stability. #. Culture ser,es as a sense.making and control mechanism that guides and shapes the attitudes and beha,ior of employees. 1his last function is of particular interest to us: Notes: Notes:

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Culture by definition is elusi,e, intangible, implicit, and taken for granted. $,ery organization de,elops a core set of assumptions, understandings, and implicit rules that go,ern day.to.day beha,ior in the orkplace.

'. 1he role of culture in influencing employee beha,ior appears to be increasingly important. 1he shared meaning of a strong culture ensures that e,eryone is pointed in the same direction. ). 3ho recei,es a 0ob offer to 0oin the organization, ho is appraised as a high performer, and ho gets the promotion is strongly influenced by the indi,idual. organization 7fit.8

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Robbins: Organizational Behavior

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Instructor Note: At this point in the lecture you may ant to introduce the 1$AC $F$EC"D$: Rate )our Classroom Culture found in the te%t and at the end of the chapter notes. B. Culture as a *iabilit+ 1. 3e are treating culture in a non0udgmental manner. 2. Culture enhances organizational commitment and increases the consistency of employee beha,ior, but there are potentially dysfunctional aspects of culture. 3. Barrier to change: Notes:

Culture is a liability hen the shared ,alues are not in agreement ith those that ill further the organization&s effecti,eness. 1his is most likely to occur hen an organization&s en,ironment is dynamic. 1his helps to e%plain the challenges that e%ecuti,es at companies like Citsubishi, Beneral Cotors, $astman Godak, Gellogg, and >oeing ha,e had in recent years in adapting to uphea,als in their en,ironment.

!. Barrier to ,iversit+:

4iring ne employees ho, because of race, gender, disability, or other differences, are not like the ma0ority of the organization&s members creates a parado%. Canagement ants ne employees to accept the organization&s core cultural ,alues but, at the same time, they ant to support the differences that these employees bring to the orkplace. Dtrong cultures put considerable pressure on employees to conform. 1hey limit the range of ,alues and styles that are acceptable. +rganizations seek out and hire di,erse indi,iduals because of their alternati,e strengths, yet these di,erse beha,iors and strengths are likely to diminish in strong cultures. Dtrong cultures, therefore, can be liabilities hen: b. 1hey effecti,ely eliminate the uni=ue strengths that di,erse people bring to the organization. b. 1hey support institutional bias or become insensiti,e to people ho are different.

#. Barrier to ac-uisitions an, mergers:

4istorically, the key factors that management looked at in making ac=uisition<merger decisions: a. :inancial ad,antages b. 5roduct synergy

Cultural compatibility has become the primary concern. 3hether the ac=uisition actually orks seems to ha,e more to do ith ho ell the t o organizations& cultures match up.

Instructor Note: At this point in the lecture you may ant to introduce the C?14 +E DC"$6C$: 7$uccess Bree,s $uccess. found in the te%t and belo . A suggestion for a class e%ercise follo s.

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Robbins: Organizational Behavior

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M TH OR SCIENCE! H /$uccess Bree,s $uccess. Benerally speaking, success creates positi,e momentum. 5eople like being associated ith it. Cicrosoft&s incredible success in the 1--/s made it a highly desirable place to ork, but success often breeds failure, especially in organizations ith strong cultures. +rganizations that ha,e tremendous successes begin to belie,e in their o n in,ulnerability. 1he corporate high ay is littered ith companies that let arrogance undermine pre,ious successes. 2C 5enney and Dears once ruled the retail department.store market. 3al.Cart did a pretty effecti,e 0ob of humbling them. Beneral Cotors e%ecuti,es ignored the aggressi,e efforts by 2apanese auto firms to penetrate its markets. 1he result; BC&s market share has been in a free fall for three decades. 1oyota, once one of those aggressi,e 2apanese firms, itself became a casualty of its o n successes. Cotorola dominated orld markets for semiconductors and analog cellular phones, but the company became arrogant. "n the first =uarter of 2//1 it lost I2/' million and as cutting 22,/// 0obs. C"#ss E$erc%se: 1. Assign as an outside research pro0ect: 2. Di,ide the class into teams, and assign each team a company that as successful and that failed Jsome should be companies that then reco,ered from failureK. Dome suggestions: 1e%as "nstruments 3ool orth Chrysler American Cotors Dears G.Cart 3. Dtudents should prepare a 1/.to 1#.minute oral report that summarizes: 1he key success factors that made the companies po erful leaders. 1hree.to.fi,e ma0or e,ents or factors that changed or reshaped these companies& business en,ironment. 1he key or ma0or mistakes the company made in dealing ith these changes. 3here the company is today. "f it failed, hy did it failL if it reco,ered, hat did it do to reco,er; !. After students present their reports, discuss the commonalities in these ,arious situations.

Creating and Dustaining Culture A. o0 a Culture Begins

Notes:

1. An organization&s culture comes from hat it has done before and the degree of success it has had. 1he ultimate source of an organization&s culture is its founders.

2. 1he founders of an organization traditionally ha,e a ma0or impact on that

organization&s early culture:

1hey had the ,isionL they are unconstrained by pre,ious customs or ideologies. 1he small size of ne organizations facilitates the founders& imposition of the ,ision on all organizational members.

3. Culture creation occurs in three ays:

:irst, founders hire and keep only employees ho think and feel the ay the ay they do.

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Robbins: Organizational Behavior A. o0 a Culture Begins 1cont.2 Notes:

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Decond, they indoctrinate and socialize these employees to their ay of thinking and feeling. 1he founders& o n beha,ior acts as a role model that encourages employees to identify ith them and thereby internalize their beliefs, ,alues, and assumptions.

!. 3hen the organization succeeds, the founders& entire personality becomes embedded in the culture of the organization. B. 3eeping a Culture Alive 1. 1here are practices ithin the organization that act to maintain it by gi,ing employees a set of similar e%periences. 2. 1hree forces play a particularly important part in sustaining a culture: selection practices, the actions of top management, and socialization methods. 3. $election

1he e%plicit goal of the selection process is to identify and hire indi,iduals ho ha,e the kno ledge, skills, and abilities to perform the 0obs ithin the organization successfully. 1he final decision as to ho is hired ill be significantly influenced by the decision maker&s 0udgment of ho ell the candidates ill fit into the organization. 1his results in the hiring of people ho ha,e ,alues consistent ith those of the organization. Additionally, the selection process pro,ides information to applicants about the organization. Delection, therefore, becomes a t o. ay street. $%ampleAapplicants for entry.le,el positions in brand management at 5rocter M Bamble N5MBO. $ach encounter seeks corroborating e,idence of the traits that the firm belie,es correlate highly ith 7 hat counts8 for success at 5MB.

!. Top management

1he actions of top management, hat they say and ho they beha,e, establish norms that filter do n through the organization as to: a. b. c. d. Eisk taking. 4o much freedom managers should gi,e their employees. 3hat is appropriate dress. 3hat actions ill pay off in terms of pay raises, promotions, and other re ards.

#. $ocialization

6e employees are not fully indoctrinated in the organization&s culture. 1hey are unfamiliar ith the organization&s culture and are potentially likely to disturb the beliefs and customs that are in place. Docialization is the organization helping ne culture. employees adapt to its

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Robbins: Organizational Behavior B. 3eeping a Culture Alive 1cont.2 Notes:

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All Carines must go through boot camp, here they 7pro,e8 their commitment. At the same time, the Carine trainers are indoctrinating ne recruits in the 7Carine ay.8 At Dtarbucks, all ne employees go through 2! hours of training co,ering e,erything necessary to make them bre ing consultants. "n addition, they learn the Dtarbucks philosophy, the company 0argon, and e,en ho to help customers make decisions about beans, grind, and espresso machines. 1he most critical socialization stage is at the time of entry into the organization: a. 1his is hen the organization seeks to mold the outsider into an employee. b. 1he organization socializes e,ery employee throughout his<her entire career.

'. Docialization is a process made up of three stages: pre.arri,al, encounter, and metamorphosis.

1he first stage, pre4arrival, encompasses all the learning that occurs before a ne member 0oins. 1he pre.arri,al stage recognizes that each indi,idual arri,es ith a set of ,alues, attitudes, and e%pectations about both the ork to be done and the organization: a. "n many 0obs, particularly professional ork, ne members ill ha,e undergone a considerable degree of prior socialization in training and in school. b. 1he selection process informs prospecti,e employees about the organization as a hole and acts to ensure the inclusion of the 7right type8Athose ho ill fit in.

"n the second stage, encounter, the ne employee sees hat the organization is really like and confronts the possibility that e%pectations and reality may di,erge. a. 1he indi,idual confronts the possible dichotomy bet een his<her e%pectationsAabout his<her 0ob, co orkers, boss, and the organization in generalAand reality. b. "f e%pectations are accurate, this stage merely reaffirms them. c. 3here e%pectations and reality differ, the ne employee must undergo socialization that ill detach him<her from his<her pre,ious assumptions and replace them ith another set that the organization deems desirable. d. At the e%treme, a ne member may become totally disillusioned and resign.

"n the third stage, metamorphosis, the relati,ely long.lasting changes take place. 1he ne employee masters the skills re=uired for his<her 0ob, successfully performs his<her ne roles, and makes the ad0ustments to his<her ork group&s ,alues and norms. a. 1he more management relies on socialization programs that are formal, collecti,e, fi%ed, serial, and emphasize di,estiture, the greater the likelihood that ne comers& differences and perspecti,es ill be stripped a ay and replaced by standardized and predictable beha,iors. 140

Robbins: Organizational Behavior B. 3eeping a Culture Alive 1cont.2 b. Cetamorphosis and the entry socialization process is complete hen the ne member has become comfortable ith the organization and his 0ob. Notes:

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4e has internalized the norms of the organization and his ork group and understands and accepts these norms. $%hibit 1*.! sho s successful metamorphosis should ha,e a positi,e impact on the ne employee&s producti,ity and his commitment to the organization, and reduce his propensity to lea,e the organization. Notes:

4o

$mployees (earn Culture

A. $tories 1. During the days hen 4enry :ord "" as chairman of the :ord Cotor Co., the message as 4enry :ord "" ran the company. 2. 6ordstrom employees are fond of the story hen Cr. 6ordstrom instructed the clerk to take the tires back and pro,ide a full cash refund. After the customer had recei,ed his refund and left, the perple%ed clerk looked at the boss. 7>ut, Cr. 6ordstrom, e don&t sell tiresP,8 7" kno ,8 replied the boss, 7but e do hate,er e need to do to make the customer happy. 3. Dtories such as these typically contain a narrati,e of e,ents about the organization&s founders, rule breaking, rags.to.riches successes, reductions in the orkforce, relocation of employees, reactions to past mistakes, and organizational coping. !. 1hey anchor the present in the past and pro,ide e%planations and legitimacy for current practices:

:or the most part, these stories de,elop spontaneously. Dome organizations actually try to manage this element of culture learning.

B. Rituals 1. Eituals are repetiti,e se=uences of acti,ities that e%press and reinforce the key ,alues of the organization, hat goals are most important, hich people are important, and hich are e%pendable. 2. College faculty members undergo a lengthy ritual in their =uest for permanent employmentAtenure. 1he astute faculty member ill assess early on in the probationary period hat attitudes and beha,iors his or her colleagues ant and ill then proceed to gi,e them hat they ant. 3. +ne of the best.kno n corporate rituals is 3al.Cart&s company chant. 3.A.( s=uiggle C.A.E.1P as Dam 3alton&s ay to moti,ate his orkforce. Instructor Note: At this point in the lecture you may ant to introduce the 5+"61AC+961$E 5+"61: Organizational Cultures Can(t Be Change, found in the te%t and at the end of these chapter notes. A suggestion for a class e%ercise follo s.

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Robbins: Organizational Behavior C. 5aterial $+mbols 1. 1he head=uarters of Alcoa does not look like your typical head office operation: Notes:

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1here are fe indi,idual offices. 1he informal corporate head=uarters con,eys to employees that Alcoa ,alues openness, e=uality, creati,ity, and fle%ibility.

2. Dome corporations pro,ide their top e%ecuti,es ith a ,ariety of e%pensi,e perks. +thers pro,ide fe er and less elaborate perks. 3. 1he layout of corporate head=uarters, the types of automobiles top e%ecuti,es that are gi,en, and the presence or absence of corporate aircraft are a fe e%amples of material symbols. !. 1hese material symbols con,ey to employees ho is important, the degree of egalitarianism desired by top management, and the kinds of beha,ior that are appropriate. D. *anguage 1. Cany organizations and units use language as a ay to identify members of a culture or subculture. >y learning this language, members attest to their acceptance of the culture and help to preser,e it. 2. +rganizations, o,er time, often de,elop uni=ue terms to describe e=uipment, offices, key personnel, suppliers, customers, or products that relate to its business. 3. 6e employees are fre=uently o,er helmed ith acronyms and 0argon that, after si% months on the 0ob, ha,e become fully part of their language. !. +nce assimilated, this terminology acts as a common denominator that unites members of a gi,en culture or subculture. Creating an $thical +rganizational Culture 1. 1he content and strength of a culture influences an organization&s ethical climate and the ethical beha,ior of its members. 2. An organizational culture most likely to shape high ethical standards is one that&s high in risk tolerance, lo to moderate in aggressi,eness, and focuses on means as ell as outcomes. 3. "f the culture is strong and supports high ethical standards, it should ha,e a ,ery po erful and positi,e influence on employee beha,ior. !. 3hat can management do to create a more ethical culture; #. Be a visible role mo,el. $mployees ill look to top.management beha,ior as a benchmark for defining appropriate beha,ior. '. Communicate ethical e6pectations. $thical ambiguities can be minimized by creating and disseminating an organizational code of ethics. ). 7rovi,e ethical training. 9se training sessions to reinforce the organization&s standards of conductL to clarify hat practices are and are not permissibleL and to address possible ethical dilemmas. *. 8isibl+ re0ar, ethical acts an, punish unethical ones. 5erformance appraisals of managers should include a point.by.point e,aluation of ho his or her decisions measure against the organization&s code of ethics. Notes:

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Robbins: Organizational Behavior Creating an $thical +rganizational Culture 1cont.2 -. 7rovi,e protective mechanisms. 1he organization needs to pro,ide formal mechanisms so that employees can discuss ethical dilemmas and report unethical beha,ior ithout fear of reprimand. 1his might include creation of ethical counselors, ombudsmen, or ethical officers. Notes:

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Instructor Note: At this point in the lecture you may ant to introduce the +> "6 14$ 6$3D: Enron an, the Creation o" an !nethical Culture found in the te%t and belo . A suggestion for a class e%ercise follo s.

OB IN THE NEWS H Enron an, the Creation o" an !nethical Culture $nron Corp., hich in December 2//1 became the largest.e,er 9D bankruptcy, did not fail solely because of improper accounting practices, although that as certainly a ma0or contributor. "t also failed because it had a culture that pushed e%ecuti,es into unethical beha,ior. During $nron&s heyday in the late 1--/s, the press regularly praised the company for its entrepreneurial culture: smart, sassy, creati,e, and risk.taking. A post.mortem analysis re,eals a different cultureAan unrelenting emphasis on earnings gro th and indi,idual initiati,e. "nstead of re arding ne ideas, the company encouraged unethical corner.cutting. 4o ; :irst, it pressured e%ecuti,es to make their numbers. Decond, it instilled la% controls o,er ho those numbers ere created. 1hird, it bred a 7yes.man8 culture among e%ecuti,es. 5eople ere afraid to speak out on =uestionable practices for fear that it ould ad,ersely affect their performance e,aluations and the size of their bonuses. :ourth, bonuses and money became the Almighty Bod. 1he company sought out and re arded people ho placed a high ,alue on money. 2eff Dkilling, the C$+ ho created $nron&s in.your.face culture, is =uoted as saying 7all that matters is money. ?ou can buy loyalty ith money.8 :ifth, although managers ere supposed to be graded on team ork, the culture as hea,ily built around star players, ith little ,alue attached to team.building. 1he organization re arded highly competiti,e people ho ere less likely to share po er, authority, or information. :inally, the company continually set itself ildly optimistic e%pectations for gro th and then dro,e e%ecuti,es to find ays to meet them. 7?ou&,e got someone at the top saying the stock price is the most important thing, hich is dri,en by earnings,8 said one insider. 73hoe,er could pro,ide earnings =uickly ould be promoted.8 +ne former $nron employee summed up the $nron culture this ay: 7"f your boss as JfudgingK, and you ha,e ne,er orked any here else, you 0ust assume that e,erybody fudges earnings. +nce you get there and you realized ho it as, do you stand up and lose your 0ob; "t as scary. "t as easy to get into Q3ell, e,erybody else is doing it, so maybe it isn&t so bad.& 8
$ources: >ased on 3. Rellner, 72eff Dkilling: $nron&s Cissing Can,8 Business %ee&, :ebruary 11, 2//2, pp. 3*H!/L and 2. A. >yrne, 71he $n,ironment 3as Eipe for Abuse,8 Business %ee&, :ebruary 2#, 2//2, pp. 11*H2/.

C"#ss E$erc%se: 1. +rganize students into small discussion groups or assign this as a 0ournal acti,ity. 2. Ask students to re,ie the case and de,elop a list of strategies that, if had they been an $nron employee, they could ha,e employed to not allo themsel,es to be caught up in the unethical beha,ior. 3. 4a,e students be specificAit is not enough to say, 7"t ill ne,er happen to me.8 Dome strategies might include: (earn ho to talk ith superiors about these matters in a professional manner. Eecognizing hen " disagree ith superiors and my ,alue system is threatened Ackno ledge 7red.flags8 hen they appear. Do not accept rationalizations such as 7e,erybody is doing it.8 De,elop a close confident outside the organization ho " can do an 7ethical audit8 ith hom ould " not be immediately impacted should " lose my 0ob. $%ample: minister, trusted friend. De,elop relationships ith others in the organization ho think like " do in these matters so " do not feel isolated in my feelings. 1ake a class or read about ethical issues to better frame my thoughts. Al ays ha,e three months e%penses in sa,ings so " ha,e the freedom to lea,e at a moments notice. 143

Robbins: Organizational Behavior !. 5ut the responses on the board and discuss ith the students ho important it is to ha,e a plan.

Chapter Eighteen difficult these situations can be and ho

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Robbins: Organizational Behavior Creating a Customer.Eesponsi,e Culture Cost organizations are attempting to create a customer.responsi,e culture because they recognize that this is the path to customer loyalty and long.term profitability. A. 3e+ 8ariables $haping Customer4Responsive Cultures 1. A re,ie of the e,idence finds that half.a.dozen ,ariables are routinely e,ident in customer.responsi,e cultures. 2. 'irst is the type of employees themsel,es. Duccessful, ser,ice.oriented organizations hire employees ho are outgoing and friendly. 3. $econ, is lo formalization. Der,ice employees need to ha,e the freedom to meet changing customer ser,ice re=uirements. Eigid rules, procedures, and regulations make this difficult. !. Thir, is an e%tension of lo formalizationAit is the idespread use of empo erment. $mpo ered employees ha,e the decision discretion to do hat is necessary to please the customer. #. 'ourth is good listening skills. $mployees in customer.responsi,e cultures ha,e the ability to listen to and understand messages sent by the customer. '. 'i"th is role clarity. Der,ice employees act as 7boundary spanners8 bet een the organization and its customers. 1hey ha,e to ac=uiesce to the demands of both their employer and the customer. ). :inally, customer.responsi,e cultures ha,e employees ho e%hibit organizational citizenship beha,ior. 1hey are conscientious in their desire to please the customer. B. 5anagerial Action 1. 1here are a number of actions that management can take if it ants to make its culture more customer.responsi,e. 2. $election Notes:

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1he place to start in building a customer.responsi,e culture is hiring ser,ice.contact people ith the personality and attitudes consistent ith a high ser,ice orientation. Dtudies sho that friendliness, enthusiasm, and attenti,eness in ser,ice employees positi,ely affect customers& perceptions of ser,ice =uality. Canagers should look for these =ualities in applicants.

3. Training an, $ocialization

Canagement is often faced ith the challenge of making its current employees more customer.focused. "n such cases, the emphasis ill be on training rather than hiring. 1he content of these training programs ill ,ary idely but should focus on impro,ing product kno ledge, acti,e listening, sho ing patience, and displaying emotions. All ne ser,ice.contact people should be socialized into the organization&s goals and ,alues. Eegular training updates in hich the organization&s customer focused ,alues are restated and reinforced is an important strategy. 145

Robbins: Organizational Behavior B. 5anagerial Action 1cont.2 !. $tructural Design Notes:

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+rganization structures need to gi,e employees more control. 1his can be achie,ed by reducing rules and regulations. $mployees are better able to satisfy customers hen they ha,e some control o,er the ser,ice encounter.

#. Empo0erment

$mpo ering employees ith the discretion to make day.to.day decisions about 0ob.related acti,ities

'. *ea,ership

$ffecti,e leaders in customer.responsi,e cultures deli,er by con,eying a customer.focused ,ision and demonstrate by their continual beha,ior that they are committed to customers.

). 7er"ormance Evaluation

$,idence suggests that beha,ior.based performance e,aluations are consistent ith impro,ed customer ser,ice. >eha,ior.based e,aluations appraise employees on the basis of ho they beha,e or actAon criteria such as effort, commitment, team ork, friendliness, and the ability to sol,e customer problemsArather than on the measurable outcomes they achie,e. >eha,ior based e,aluations gi,e employees the incenti,e to engage in beha,iors that are conduci,e to impro,ed ser,ice =uality and gi,es employees more control o,er the conditions that affect their performance e,aluations.

*. Re0ar, $+stems

"f management ants employees to gi,e good ser,ice, it has to re ard good ser,ice. "t should include ongoing recognition and it needs to make pay and promotions contingent on outstanding customer ser,ice.

Instructor Note: At this point in the lecture you may ant to introduce the CAD$ $F$EC"D$: Tr+ing to ,o the Impossible at 95 found in the te%t and at the end of the chapter notes. A suggestion for a class e%ercise follo s. Dpirituality and +rganizational Culture A. %hat is $piritualit+# 1. %or&place spiritualit+ is not about organized religious practices. "t is not about Bod or theology. 2. %or&place spiritualit+ recognizes that people ha,e an inner life that nourishes and is nourished by meaningful ork that takes place in the conte%t of community. Notes:

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Robbins: Organizational Behavior B. %h+ $piritualit+ No0# 1. 4istorical models of management and organizational beha,ior had no room for spirituality. 1he myth of rationality assumed that the ell.run organization eliminated feelings. 2. An a areness of spirituality can help you to better understand employee beha,ior. C. Characteristics o" a $piritual Organization 1. Dpiritual organizations are concerned ith helping people de,elop and reach their full potential. 2. +rganizations that are concerned ith spirituality are more likely to directly address problems created by ork<life conflicts. 3. 3hat differentiates spiritual organizations from their non.spiritual counterparts; !. $trong $ense o" 7urpose Notes:

Chapter Eighteen

Dpiritual organizations build their cultures around a meaningful purpose. :or e%ample, >en M 2erry&s 4omemade has closely intermeshed socially responsible beha,ior into its producing and selling of ice cream.

#. 'ocus on In,ivi,ual Development

Dpiritual organizations recognize the orth and ,alue of people. 1hey are not 0ust pro,iding 0obs. 1hey seek to create cultures in hich employees can continually learn and gro . Eecognizing the importance of people, they also try to pro,ide employment security.

'. Trust an, Openness

Dpiritual organizations are characterized by mutual trust, honesty, and openness. Canagers aren&t afraid to admit mistakes. 1hey tend to be e%tremely up front ith their employees, customers, and suppliers.

). Emplo+ee Empo0erment

Canagers in spiritually based organizations are comfortable delegating authority to indi,idual employees and teams. 1hey trust their employees to make thoughtful and conscientious decisions.

*. Toleration o" Emplo+ee E6pression

1hey allo people to be themsel,esAto e%press their moods and feelings ithout guilt or fear of reprimand.

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Robbins: Organizational Behavior D. Criticisms o" $piritualit+ 1. Critics of the spirituality mo,ement in organizations ha,e focused on t o issues: Notes:

Chapter Eighteen

:irst is the =uestion of legitimacy. Dpecifically, do organizations ha,e the right to impose spiritual ,alues on their employees; Decond is the =uestion of economics. Are spirituality and profits compatible;

2. 1his criticism is undoubtedly ,alid hen spirituality is defined as bringing religion and Bod into the orkplace. 4o e,er, the goal is limited to helping employees find meaning in their ork li,es and to use the orkplace as a source of community. 3. 1he issue of hether spirituality and profits are compatible ob0ecti,es is certainly rele,ant for managers and in,estors in business. A recent research study by a ma0or consulting firm found that companies that introduced spiritually based techni=ues impro,ed producti,ity and significantly reduced turno,er. !. Another study found that organizations that pro,ide their employees ith opportunities for spiritual de,elopment outperformed those that did not. #. +ther studies also report that spirituality in organizations as positi,ely related to creati,ity, employee satisfaction, team performance, and organizational commitment.

&UESTIONS 'OR REVIEW 1. %hat(s the ,i""erence bet0een :ob satis"action an, organizational culture# Ans(er H +rganizational culture is concerned ith ho employees percei,e the characteristics of an organization&s culture, not ith hether or not they like them. 1hat is, it is a descripti,e term. 1his is important because it differentiates this concept from that of 0ob satisfaction. Eesearch on organizational culture has sought to measure ho employees see their organization: Does it encourage team ork; Does it re ard inno,ation; Does it stifle initiati,e; "n contrast, 0ob satisfaction seeks to measure affecti,e responses to the ork en,ironment. "t is concerned ith ho employees feel about the organization&s e%pectations, re ard practices, and the like. Although the t o terms undoubtedly ha,e o,erlapping characteristics, keep in mind that the term organizational culture is descripti,e, hile :ob satis"action is e,aluati,e. 2. Can an emplo+ee survive in an organization i" he;she re:ects its core values# E6plain. Ans(er H +rganizational culture is a system of shared meaning held by members that distinguishes the organization from other organizations. 1his system of shared meaning is a set of key characteristics that the organization ,alues. +rganizational culture is concerned ith ho employees percei,e its characteristics, not if they like them. 2ob satisfaction seeks to measure affecti,e responses to the ork en,ironmentAho employees feel about the organization&s e%pectations, re ard practices, and the like. 1herefore, if an indi,idual does not fit the organization&s culture, the indi,idual ill ha,e some significant difficulty in sur,i,ing, let alone gro ing. 1he dominant culture e%presses the core ,alues that are shared by a ma0ority. 6ot sharing those ,alues places the employee on the outside socially and organizationally.

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3. %hat ,e"ines an organization(s subcultures# Ans(er H Dubcultures tend to de,elop in large organizations to reflect common problems, situations, or e%periences that members face. 1hey are defined by department designations and geographical separation. "t ill include the core ,alues plus additional ,alues uni=ue to members of the subculture. 1he core ,alues are essentially retained but modified to reflect the subculture. Cany organizations also ha,e subcultures that can influence the beha,ior of members. !. Contrast organizational culture 0ith national culture. Ans(er H 1he opening e%ample in the te%t sho ed ho 2apan&s national culture as closely intert ined ith corporate culture. 6ational cultures must be taken into account if accurate predictions are to be made about organizational beha,ior in different countries. 1he research indicates that national culture has a greater impact on employees than does their organization&s culture. 1his has to be =ualified to reflect the self. selection that goes on at the hiring stage. 1he employee selection process ill be used by multinationals to find and hire 0ob applicants ho are a good fit ith their organization&s dominant culture. 6ational culture is one&s primary culture generally has deep roots. +rganizational culture is something one subscribes to and may adapt to, and e,en be some hat affected by, but only to the degree it fits one&s o n national culture. #. o0 can culture be a liabilit+ to an organization# Ans(er H 3hile organizational culture enhances organizational commitment and increases the consistency of employee beha,ior, there are potentially dysfunctional aspects of culture. "t can be a barrier to change hen the shared ,alues are not in agreement ith those that ill further the organization&s effecti,eness. 1his is most likely to occur hen an organization&s en,ironment is dynamic. "t is inherently a barrier to di,ersity because hiring ne employees ho Nbecause of race, gender, disability, or other differencesO are not like the ma0ority of the organization&s members creates a parado%. Canagement ants ne employees to accept the organization&s core cultural ,alues but, at the same time, ants to support the differences that these employees bring to the orkplace. Dtrong cultures, therefore, can be liabilities hen they effecti,ely eliminate the uni=ue strengths that di,erse people bring to the organization or if they support institutional bias or become insensiti,e to people ho are different. :inally, strong cultures can be a barrier to ac=uisitions and mergers. 4istorically, the key factors that management looked at in making ac=uisition<merger decisions ere financial ad,antages and product synergy. Cultural compatibility has become the primary concern. 3hether the ac=uisition actually orks seems to ha,e more to do ith ho ell the t o organizations& cultures match up. '. o0 ,oes a strong culture a""ect an organization(s e""orts to improve ,iversit+# Ans(er H "t is inherently a barrier to di,ersity because hiring ne employees ho Nbecause of race, gender, disability, or other differencesO are not like the ma0ority of the organization&s members creates a parado%. Canagement ants ne employees to accept the organization&s core cultural ,alues but, at the same time, they ant to support the differences that these employees bring to the orkplace. Dtrong cultures put considerable pressure on employees to conform. 1hey limit the range of ,alues and styles that are acceptable. An organization can use its strong culture to enhance di,ersity if it seeks out and hires di,erse indi,iduals because of their alternati,e strengths. "f they effecti,ely encourage the uni=ue strengths that di,erse people bring to the organization, they eliminate any institutional bias or insensiti,ity to people ho are different. ). %hat bene"its can socialization provi,e "or the organization# 'or the ne0 emplo+ee# Ans(er H Cost of the benefits are mutual rather than distinct. 6e employees are not fully indoctrinated in the organization&s culture. 1hey are unfamiliar ith the organization&s culture and are potentially likely to disturb the beliefs and customs that are in place. $ocialization is the organization helping ne employees adapt to its culture. Cetamorphosis and the entry socialization process is complete hen the ne member has become comfortable ith the organization and his 0ob. $%hibit 1*.2 sho s ho successful metamorphosis should ha,e a positi,e impact on the ne employee&s producti,ity and his commitment to the organization, and reduce his propensity to lea,e the organization.

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Robbins: Organizational Behavior *.

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o0 is language relate, to organizational culture# Ans(er H Cany organizations and units ithin organizations use language as a ay to identify members of a culture or subculture. >y learning this language, members attest to their acceptance of the culture and, in so doing, help to preser,e it. +rganizations, o,er time, often de,elop uni=ue terms to describe e=uipment, offices, key personnel, suppliers, customers, or products that relate to their business. 6e employees are fre=uently o,er helmed ith acronyms and 0argon that, after si% months on the 0ob, ha,e become fully part of their language. +nce assimilated, this terminology acts as a common denominator that unites members of a gi,en culture or subculture. o0 can management create an ethical culture# Ans(er ) An organizational culture most likely to shape high ethical standards is one that is high in risk tolerance, lo to moderate in aggressi,eness, and focuses on means as ell as outcomes. "f the culture is strong and supports high ethical standards, it should ha,e a ,ery po erful and positi,e influence on employee beha,ior. An organization can create an ethical culture by doing the follo ing: Be a visible role mo,el. $mployees ill look to top.management beha,ior as a benchmark for defining appropriate beha,ior. Communicate ethical e6pectations. $thical ambiguities can be minimized by creating and disseminating an organizational code of ethics. 7rovi,e ethical training. 9se training sessions to reinforce the organization&s standards of conduct, to clarify hat practices are and are not permissible, and to address possible ethical dilemmas. 8isibl+ re0ar, ethical acts an, punish unethical ones. 5erformance appraisals of managers should include a point.by.point e,aluation of ho his or her decisions measured against the organization&s code of ethics. 7rovi,e protective mechanisms. 1he organization needs to pro,ide formal mechanisms so that employees can discuss ethical dilemmas and report unethical beha,ior ithout fear of reprimand. 1his might include creation of ethical counselors, ombudsmen, or ethical officers.

-.

1<. %hat criticisms have been targete, against bringing spiritualit+ to the 0or&place# Ans(er H Critics of the spirituality mo,ement in organizations ha,e focused on t o issues: 1O Do organizations ha,e the right to impose spiritual ,alues on their employees; and 2O Are spirituality and profits compatible; 1his criticism is undoubtedly ,alid hen spirituality is defined as bringing religion and Bod into the orkplace. 4o e,er, the goal is limited to helping employees find meaning in their ork li,es and to use the orkplace as a source of community. 1he issue of hether spirituality and profits are compatible ob0ecti,es is certainly rele,ant for managers and in,estors in business. A recent research study by a ma0or consulting firm found that companies that introduced spiritually based techni=ues impro,ed producti,ity and significantly reduced turno,er.

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Robbins: Organizational Behavior &UESTIONS 'OR CRITICAL THIN*ING

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1. Is socialization brain0ashing# E6plain. Ans(er H ?es and no. ?es, in that it is helping or coercing the indi,idual into ad0usting his<her beha,ior to match the e%pectations of the organization. +n the other hand, socialization is necessary in order to ork together. "magine a kindergarten class if the students ere not socialized. 6o matter ho good a 0ob the organization does in recruiting and selection, ne employees are not fully indoctrinated in the organization&s culture. Cost importantly, because they are unfamiliar ith the organization&s culture, ne employees are potentially likely to disturb the beliefs and customs that are in place. 1he organization ill, therefore, ant to help ne employees adapt to its culture. 2. I" management sought a culture characterize, as innovative an, autonomous= 0hat might its socialization program loo& li&e# Ans(er H Douth est&s. 1hey ould encourage risk.taking, pro,ide a ma%imum of freedom to managers and employees, and tie re ards, raises, and promotions to inno,ati,e beha,ior, initiati,e, and inno,ation. 3. Can +ou i,enti"+ a set o" characteristics that ,escribes +our college(s culture# Compare +our assessment 0ith those o" several o" +our peers(. o0 closel+ ,o the+ agree# Ans(er H 1he ans er ill ,ary by school. 1he key is conducting an open discussion and not reacting to students& assessments, yet making them defend them ith some ob0ecti,e e,idence, not 0ust sub0ecti,e e%perience. !. To,a+(s 0or&"orce is increasingl+ ma,e up o" part4time or contingent emplo+ees. Is organizational culture reall+ important i" the 0or&"orce is mostl+ comprise, o" temporaries# Ans(er ) "t can be argued that organizational culture is particularly important ith a temporary or contingent orkforce because it helps to con,ey a sense of identity for organization members. "t is the social glue that helps hold the organization together and it enhances social system stability. 1he shared meaning of a strong culture ensures that e,eryone is pointed in the same direction. #. /%e shoul, be oppose, to the manipulation o" in,ivi,uals "or organizational purposes= but a ,egree o" social uni"ormit+ enables organizations to 0or& better.. Do +ou agree or ,isagree 0ith this statement# %hat are its implications "or organizational culture# Discuss. Ans(er H Dtudents& responses ill ,ary.

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POINT+COUNTERPOINT ) Organizational Cultures Can(t Be Change, POINT An organization&s culture is made up of relati,ely stable characteristics. 1here are a number of forces continually operating to maintain a gi,en culture. 1hese ould include ritten statements about the organization&s mission and philosophy, the design of physical spaces and buildings, the dominant leadership style, hiring criteria, past promotion practices, entrenched rituals, popular stories about key people and e,ents, the organization&s historic performance e,aluation criteria, and the organization&s formal structure. Delection and promotion policies are particularly important de,ices that ork against cultural change. $mployees chose the organization because they percei,ed their ,alues to be a 7good fit8 ith the organization. 1hey become comfortable ith that fit and ill strongly resist efforts to disturb the e=uilibrium. +ur argument should not be ,ie ed as saying that culture can ne,er be changed. 4o e,er, anything less than a crisis is unlikely to be effecti,e in bringing about cultural change. COUNTER POINT Changing an organization&s culture is e%tremely difficult, but cultures can be changed. A dramatic crisis. 1his is the shock that undermines the status =uo and calls into =uestion the rele,ance of the current culture. 1urno,er in leadership. 6e top leadership, hich can pro,ide an alternati,e set of key ,alues, may be percei,ed as more capable of responding to the crisis. ?oung and small organizations. 1he younger the organization is, the less entrenched its culture ill be. 3eak culture. 1he more idely held a culture is and the higher the agreement among members on its ,alues, the more difficult it ill be to change. Con,ersely, eak cultures are more amenable to change than strong ones. "f the abo,e conditions e%ist, the follo ing actions may lead to change. 6e stories and rituals need to be set in place by top managementL employees should be selected and promoted by those ho espouse the ne ,aluesL the re ard system needs to be changed to support the ne ,aluesL and current subcultures need to be undermined through transfers, 0ob rotation, and terminations. C"#ss E$erc%se: 1. As a class, discuss and decide hat the culture is of your college or uni,ersity. Dtudents may ha,e a ,ery different perspecti,e than you do as faculty, so choose hich 7organization8 you are assessingAthe one ,isible to students or to faculty. 2. +nce the culture is identified, discuss ith students hat ould be in,ol,ed in changing the culture of your college or uni,ersity. $%plain to students, for the sake of the e%ercise, that they should consider that the culture is in need of change in order to deal ith the ne dynamics facing institutions of higher education. ?ou should choose a contrasting culture to the one identified in the students& earlier discussion. 3. 1his discussion should consider: 1he current culture and target culture. 3hat change techni=ues could be used. 3hat elements of culture maintenance need to be addressed in the change effort. 3ho ould resist this change and hy. 3. 1he discussion should help students realize the effort in,ol,ed in changing organization culture and help them decide hich side of this debate they most identify ith.

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Robbins: Organizational Behavior TEAM EXERCISE ) Rate )our Classroom Culture

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Pur,ose: 1his e%ercise ill raise students& a areness of the elements of organizational culture and increase their sensiti,ity to the issues in,ol,ed in e,aluating it. T%-e: 3/ minutes Instruct%ons: 1. (isted here are 1! statements. 9sing the fi,e.item scale Nfrom Dtrongly Agree to Dtrongly DisagreeO, respond to each statement by circling the number that best represents your opinion. Dtrongly Dtrongly Agree Agree 6eutral DisagreeDisagree a. " feel comfortable challenging statements made by my instructor. b. Cy instructor hea,ily penalizes assignments that are not turned in on time. c. Cy instructor belie,es that it&s final results that count. d. Cy instructor is sensiti,e to my personal needs and problems. e. A large portion of my grade depends on ho ell " ork ith others in the class. f. " often feel ner,ous and tense hen " come to class. g. Cy instructor seems to prefer stability o,er change. h. Cy instructor encourages me to de,elop ne and different ideas. i. Cy instructor has little tolerance for sloppy thinking. 0. Cy instructor is more concerned ith ho " came to a conclusion than the conclusion itself. k. Cy instructor treats all students alike. l. Cy instructor fro ns on class members helping each other ith assignments. m. Aggressi,e and competiti,e people ha,e a distinct ad,antage in this class. n. Cy instructor encourages me to see the orld differently. Instruct%ons .cont%nue/0: 2. Calculate your total score by adding up the numbers you circled. 3. ?our score ill fall bet een 1! and )/. A high score N!- or abo,eO describes an open, risk.taking, supporti,e, humanistic, team.oriented, easy. going, gro th.oriented culture. A lo score N3# or belo O describes a closed, structured, task.oriented, indi,idualistic, tense, and stability. oriented culture. 6ote that differences count. Do, a score of '/ is a more open culture than one that scores #/. !. Also, realize that one culture is not preferable o,er the other. #. 1he 7right8 culture depends on you and your preferences for a learning en,ironment. '. :orm teams of fi,e.to.se,en members each. Compare your scores. 4o closely do they align; Discuss and resol,e discrepancies. >ased on your team&s analysis, hat type of student do you think ould perform best in this class; # # # # # # # # # # # # # # ! ! ! ! ! ! ! ! ! ! ! ! ! ! 3 3 3 3 3 3 3 3 3 3 3 3 3 3 2 2 2 2 2 2 2 2 2 2 2 2 2 2 1 1 1 1 1 1 1 1 1 1 1 1 1 1

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Robbins: Organizational Behavior CASE EXERCISE ) Tr+ing to Do the Impossible at 95

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:e companies ha,e had a rougher time adapting to a changing en,ironment than Beneral Cotors. 1he company is truly a te%tbook e%ample of corporate entrenchment. As far back as the 1-'/s, the riting as on the all that BC&s ay of operatingAslo , deliberate decision makingL layer.upon.layer of hierarchyL focus on cost. cutting rather than on ne product designL and management.by.committeeA as failing. :rom a 9.D. automobile market share of nearly #/ percent in the late 1-#/s, the company as do n to under 3/ percent by the year 2///. BC&s rigid and insular culture, dri,en by financial considerations, allo ed both foreign and domestic competitors to steal a ay customers ith ne productsAlike fuel.efficient compacts, mini,ans, D9@s, and eye. catching roadsters. A good part of BC&s culture can be e%plained by the company&s historic selection and promotion policies. "t hired its future e%ecuti,es fresh out of school. 1hey then shaped these recruits into the BC mentality. 1he company resisted ideas and inno,ations that ere 7not de,eloped here.8 $%ecuti,es firmly belie,ed, to the point of arrogance, that the BC system as superior to all others. 5romotions fa,ored financial and engineering types, and indi,iduals ith these backgrounds rose to fill the company&s top spots. BC rarely hired senior e%ecuti,es from outside the company ranks. "n addition, BC encouraged its e%ecuti,es to socialize off the 0ob ith other BC people. 1his further insulated top e%ecuti,es and resulted in a senior management team that sa the orld through similar lenses. "n the fall of 2//1 BC Chief $%ecuti,e Eichard 3agoner hired former Chrysler e%ecuti,e Eobert (utz as ,ice chairman. 4is primary task as to change BC&s organizational culture. 3agoner ackno ledged that BC&s cultureAdominated by finance.types, engineers, and manufacturing personnelA as content to turn out unimaginati,e cars. 1he committee system Nstacked to fa,or the company&s accounting mentalityO further hindered creati,e endea,ors. :or instance, hene,er designers and engineers ould disagree about a design, the engineers Nand their obsession ith cost minimizationO ould al ays in. 1his largely e%plained hy the company&s cars looked bo%y and so similar. 3agoner has essentially gi,en (utz a free hand to do hate,er he needs to change tradition.bound BC. (utz faces a formidable task. 1his is a huge company. Dales are I1*/ billion a year. "t employs 3'3,/// people. 1his is also the place here the 7BC nod8 is endemic: BC lifers usually 0ust nod at the ne guy and go on doing things as they ere, but (utz has the ad,antage of coming to BC ith a sterling reputation. 4e is a true 7car guy,8 ho single.handedly pushed through e%citing ne products at Chrysler like the @iper, the 5ro ler, and the 51 Cruiser. (utz has chosen an incremental strategy for implementing change. 4e is not chopping heads and bringing in loyalists. Eather, he is relying on the same designers and engineers ho ha,e been turning out duds for years. 4e is gi,ing more clout to the designers and marketing people. 4e&s o,erseen a reorganization that has engineering and design di,isions no reporting to 0ust one person. 4e&s encouraging people to =uestion past practices, to speak out on issues, and challenge company doctrine. And BC brass is no spending more time dri,ing competitors& cars than their o nA hile (utz points out ho most of them best BC. C"#ss E$erc%se: Di,ide students into groups to ans er the follo ing =uestions found at the end of the case: 1. Describe the /ol,. 95 culture. Ans(er ) Dlo , deliberate decision makingL layer.upon.layer of hierarchyL focus on cost.cutting rather than on ne product designL and management.by.committee. 2. %hat speci"ic "orces create, this culture# Ans(er ) $%ecuti,es belie,ed that the BC system as superior to all others. 1op e%ecuti,es ere insulated, hich resulted in a senior management team that sa the orld through similar lenses. 3. Describe the ne0 culture that *utz is tr+ing to create. Ans(er ) 4e&s encouraging people to =uestion past practices, to speak out on issues, and challenge company doctrine. !. Do +ou thin& *utz 0ill succee, or "ail in his e""ort to change 95(s culture# %h+# Ans(er ) Dtudents ans ers ill ,ary.
$ource: 5arts of this case are based on E. Ceredith, 7Car Buy,8 'orbes, 2anuary 21, 2//2, pp. #/H#1.

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Exploring OB Topics on the World Wide Web

Dearch $ngines are our na,igational tool to e%plore the 333. Dome commonly used search engines are: .goto.com .google.com .e%cite.com .lycos.com .hotbot.com .looksmart.com
1.

3hat do you think it ould be like orking for the 74appiest 5lace on $arth;8 +f course, it is Disney (andP Disney is hugeAso much more than theme parks. Bo to: http:<<disney.go.com<disneycareers<inde%.html to get a fla,or of hat their corporate culture might be like. Click on the links found at the bottom of the page. +ne e,en references cultureA but it is not necessarily referring to corporate culture. >e prepared to talk about hat you learned about the Disney corporation in class. 1ake a 7 eb alk8 and learn about organizational culture. "t can be found at: http:<< .oise.utoronto.ca<S,s,ede<culture.htm . 1here are a ,ariety of linksApick topics that are of interest to you and e%plore. 3rite a short t o page reaction paper about hat you learned on your 0ourney and bring it to class for more discussion. 4o does a change agent go about changing the corporate culture; 1he task, no doubt, is ne,er easy, but the follo ing eb site offers a process to follo at: http:<< .hcgnet.com<html<articles<changingCulture.html . Eead through the article and try to think of a time hen an organization you ere in,ol,ed ith under ent change. 1ake the steps outlined in the article and apply them to your e%perience. 3rite a brief commentary on each step ould apply to your situation. >ring it to class and be prepared to discuss your case. 4o does one differentiate bet een a strong and a eak culture; 1he Denison +rganizational Culture Dur,ey can be found at: http:<< .denisonculture.com<culture<cultureTmain.html . "t is an internal tool used by organizations. 1he page pro,ides information about the sur,ey and a model of strong ,s. eak organizational cultures. 3rite a paragraph or t o on ho you think this information might be helpful to organizations. Career >liss. Eeally; Bo to: http:<< .spiritualityof ork.com<organization.html to learn more about Dpirituality at 3ork. 3hile there take the 71/ Dteps to Career >liss8 sur,ey and see hat results you obtain. Also on the page is a list of benefits to employers ho incorporate spirituality principles into the corporate culture. 3rite a short paper of the concept of Dpirituality at 3ork. 3hat do you think managers ha,e to gain; $mployees; "s there a do nside; 9se ideas from the ebsite as a start for organizing your paper. >ring it to class for further discussion.

2.

3.

4.

5.

'. >ecoming a more customer.responsi,e organization can be a difficult culture change. (earn ho CE4C did it at: http:<< .cio.com<archi,e</#1#/1<changeTcontent.html . 1his organization featured in this article demonstrates ho difficult the process can be, but also ho re arding the changes e,entually can be. (ook at the model of key ,ariables to creating a more customer responsi,e corporate culture found in the te%t. "n the article, find e%amples of those ,ariables as CE4C under ent the change process and list. >ring it to class for further discussion.

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