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a strategic approach to organizational culture

Learning Objectives

Define the terms organizational culture and socialization Explain the difference in how some employees talk about a positive culture and others describe a negative culture Describe the impact of an organizations culture on individual and team behavior

CULTURE

What do we mean by organizational culture? What is included in this term?

What is Organizational Culture?

As defined by Edgar Schein


A pattern of basic assumptions invented, discovered or developed by a given group As it learns to cope with the problems of adaptation and integration That has worked well enough to be considered valid Taught to new members as the correct way to perceive, think, and feel in relation to those problems

Organizational Culture & Its Effects

Organizational culture involves shared


Expectations Values Attitudes

It exerts influence on

Individuals Groups Organizational processes

Organizational Culture Characteristics


Passed

on to new employees through the process of socialization Influences our behavior at work Operates at different levels

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What Do Cultures Do?

Cultures Functions
1.

Defines the boundary between one organization and others

2.
3.

Conveys a sense of identity for its members


Facilitates the generation of commitment to something larger than self-interest Enhances the stability of the social system Serves as a sense-making and control mechanism for fitting employees in the organization

4. 5.

Organizational Culture Characteristics

Organizational Culture

Provides guidance on the following seven primary characteristics;


1. Innovation and risk taking 2. Attention to detail 3. Outcome orientation 4. People orientation 5. Team orientation 6. Aggressiveness 7. Stability

Core of a Positive Culture


Sense of history, communications Positive problem solving Stores about founders/leaders Leadership, role modeling Norms, values, expectations Historical foundation Understanding what is expected

Reward systems Career management, job security Recruiting and staffing Socialization of new staff members Training and development Member contact Participative decision making Intergroup coordination Personal exchange

Being part of a group

Cohesive organizational culture

Interpersonal, intergroup relationships

Organizational Culture

Values

The conscious, affective desires or wants of people that guide their behavior Societys ideas about right and wrong Passed from one generation to the next

Organizations operate well only when shared values exist among employees

Personal values guide both on- and off-the-job behavior

Organizational Subcultures

Many may exist under the dominant corporate culture

Some have positive effects, others negative Programmers work in a subculture under the dominant culture of Microsoft; each organizational division has a subculture, which may also have subcultures Seldom investigated prior to mergers Has caused many to fail

Cultural conflict

Organizational Cultures

Culture is a descriptive term: Dominant Culture

Expresses the core values that are shared by a majority of the organizations members Minicultures within an organization, typically defined by department designations and geographical separation The primary or dominant values that are accepted throughout the organization A culture in which the core values are intensely held and widely shared

Subcultures

Core Values

Strong Culture

How Organizational Culture Is Formed

Stems from the actions of the founders:

Founders hire and keep only employees who think and feel the same way they do. 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.

Keeping Culture Alive

Selection

Concerned with how well the candidates will fit into the organization Provides information to candidates about the organization Senior executives help establish behavioral norms that are adopted by the organization The process that helps new employees adapt to the organizations culture
2009 Prentice-Hall Inc. All rights reserved. 17-14

Top Management

Socialization

Stages in the Socialization Process

Prearrival The period of learning prior to a new employee joining the organization Encounter When the new employee sees what the organization is really like and confronts the possibility that expectations and reality may diverge Metamorphosis When the new employee changes and adjusts to the work, work group, and organization

Organizational Types of Culture


Formal Control Orientation

Clan Culture

Entrepreneurial Culture

Flexible

Stable

Bureaucratic Culture Internal

Market Culture

External

Forms of Attention

Organizational Types of Culture

Bureaucratic Culture

Emphasizes rules, policies, procedures, chain of command, central decision making

Clan Culture

A working family, tradition and rituals, teamwork and spirit, self-management, social influence

Organizational Types of Culture

Entrepreneurial Culture Innovation, creativity, risk taking, aggressively seeking opportunities Change, individual initiatives, autonomy are standard practices Market Culture Emphasis on increased sales and market share, financial stability, profitability Workers have contractual relationship Little feeling of teamwork, cohesiveness

Merging Cultures

Less than 25% of all mergers and acquisitions are successful


Analytical analysis to pursue a merger is usually based on financial criteria Culture is a soft criteria that isnt considered

Merging Cultures

Merging firms should consider


Values, expectations, styles, goals Information technology systems Compensation and rewards systems The human resource talent pool Both the dominant and subcultures

Influencing Culture Change

Cultures are elusive and hidden


They cannot be adequately diagnosed, managed, or changed Deliberate attempts at culture change are not practical

Cultures sustain people through periods of difficulty and anxiety

Because culture provides continuity and stability, people naturally resist change

Outcomes Associated with Organizational Culture


1. 2.

Significantly correlated with employee behavior and attitudes Congruence between an individuals values and the organizations values was associated with 1) organizational commitment, 2) job satisfaction, 3) low intention to quit, and 4)low turnover

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Question?
Amy recently started a new job. Everyone she interviewed with seemed very personable and easy-going. She was quite surprised when during her first week on the job she witnessed a loud and argumentative confrontation in the hallway between two of her coworkers. People seem so different than the way she expected them to be. Amy is in which stage of the socialization process? A. Change and acquisition B. Anticipatory socialization C. Adaptive D. Encounter
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Apple Computers

What artifacts of Apple are famous & which do you know of ? What is its culture? How do you know? Are employees a competitive advantage? Why or why not? Do they have a high-involvement management approach?