Chapter 7_Organizational Culture

8/3/2019 Chapter 7_Organizational Culture

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CHAPTER 7

ORGANIZATIONALCULTURE

PREPARED BY :

NORHASLINDA BINTI MOHD ROSLINIZREEN FARA BINTI MD RAZALI


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CHAPTER OBJECTIVES

Understand the concept of organizational

culture

Identify the determinants of organizational

culture

Recognize effective organizational culturemanagement


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CONCEPT OF ORGANIZATIONALCULTURE


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WHAT IS ORGANIZATIONAL CULTURE?

A system of shared actions, values, and beliefs

that develop within an organization and guides

the behavior of its members.


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WHY IT IS IMPORTANT TO HAVE CULTURE

IN AN ORGANIZATION?

1. It creates distinctions between one organization and

others

1. It conveys a sense of identity for organizations

members

1. It facilitates commitment rather than ones individual

self-interest


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External adaption - Deals with reaching goals,

the tasks to be accomplished, methods used to

achieve goals and method used of coping success

and failure.

vOC function through shared experiences,members of the organization may develop

common views as guidance to their day-to-day

activities


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Internal integration - Deals with the creation of

a collective identity and with ways of working

and living together

v OC function through dialogues and

interaction, members of the organization beginto characterize their environment and

background


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SUBCULTURE VS COUNTERCULTURESUBCULTURE : Groups of individuals that have their

own values and philosophy that is not consistent with

the organizations dominant values and philosophy

Example : In the Boeing Renton, there are strong

stress engineers and liaison engineers that

specialized in solving knotty technical issue to ensurethe Boeing planes are safe. However, these groups of

engineers also share in the dominant values of

Boeing.


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COUNTERCULTURE: Groups of individuals where the

patterns of values and philosophy reacts against the

larger organization or social system

Example : The punk movement of the seventies and

early eighties sought to be anti-establishment and

anti-capitalist.

SUBCULTURE VS COUNTERCULTURE


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NATIONAL CULTURE VS

CORPORATE CULTURENATIONAL CULTURE : Is the nation shared values,preferences, and behaviors of population groups in a

given country.

CORPORATE CULTURE : Is the shared actions, values,

and beliefs that develop within an organization.

DIFFERENCES : According to Hofstede, differences

between national cultures are mainly found in the

VALUES of the different cultures, whereas


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LAYERS OF CULTURAL ANALYSIS


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OBSERVABLE CULTURE : The way things are done

in the organization can be sees, hears and feels


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v Sagais an embellished heroic account of the story of

the founding of an organization.

v Rite and Rituals: Rites are standardized and recurring

activities that are used at special times to influencethe behaviors and understanding of organizational

members whereas the rituals are the system of the

rites.

Example : In a Japanese company, they usually start

their workdays together with group exercises.


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v Cultural symbol is any object, act, or event

that serves to transmit cultural meaning.

Example : The corporate uniform worn by Pos

Laju delivery personnel.

v Cultural Rules and Rolesare the part ofnormative controls of the organization and

appear from its daily routine such as the

presentation and methods of communicating


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Shared Values: Linking people together and can

provide a powerful motivational mechanism for

members

Shared Values and Meanings: help turn routine

activities into valuable and important actions. This

mean by what tasks a person performs not only

workable but must be correct, right and important.

However, not all members agree with the shared

values but they have been exposed to and often told

that they are important.


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COMMON ASSUMPTION : Are the taken-for-

granted truths that collections of corporate

members share as a result of their jointexperience.Organizational Mythsis a commonly held cause effectrelationship or assertion by senior management that

cannot be supported empirically because they areunproven and often unstated beliefs that are accepted

uncritically. Myth can be real or imaginary, might not

have ever happened but it could have happened, can be

positive or negative. However, this myth can help peoplemake sense of their world.

Example : The senior managers of Cisco systems often


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DETERMINANTS OF

ORGANIZATIONAL CULTURE


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Determinants are the factors that influence

organizational culture


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ManagingOrganizational Culture


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Managing OrganizationalCulture


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Management Philosophy

Definition:Links key goal-related strategic issues with key

collaboration issues and come up with a series ofgeneral ways by which the firm will manage its

affairs.Set of common values or ideas espoused by

members of organization about best managementpractices.

Way top-management addresses the question ofexternal adaptation.

Well-developed Management Philosophy is

Building R i f i d


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Building, Reinforcing andChanging Culture

Modify visible aspect of culture directly:language, stories, rites, rituals and sagas.

Change lesson drawn from common stories andencourage individuals to see the reality that they see.

Create new rites and rituals.

Foster culture that have balance emphasis on:

Overcome external adaptation and internalintegration

Linkages between corporate culture and financeperformance

Stockholders or customer associated with long-term


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One of the key ways management influenceculture, by establishing reward systems.

Match overall strategy of the firm and reinforce theculture emerging from day-to-days activities.

2 patterns of reward systems, strategies andcorporate culture which are common, they are:

Hierarchy-based rewards

Performance-based rewards


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RewardSystem

Hierarchy-based rewardsystem

Performance-basedreward system

Strategy Steady-state strategy Evolution and change

strategyCorporateculture

Clan culture:Long-term commitmentFraternal r/shipMutual interests

Collegiality with heavypressures to conformfrom peersSuperiors acting asmentors

Market culture:Contractual link betweenemployee and employerFocused on short-term

performanceStressed individualinitiative with very littlepressure from peers toconformSupervisors acting as

resource allocators

Industry Type Power generation,chemicals, mining and

pharmaceuticals industry

Restaurants, consumerproducts, industrial

services.


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Direct attempts by senior management to altervalues and assumptions of individuals by re-socializing.

Re-socializing: change their heart so that their mindand actions would follow with goals to establish aclear, consistent organization-wide consensus.

Results: Impossible and Undesirable approach.

This is because, changing peoples value from topdown without changing how the organization operatesand recognizes the importance of individuals does notwork very well.

Revitalize an organization by dictating majorchanges and ignoring shared values.

Results: Although things may change a bit on thesurface, a deeper look often show resisting change and


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References

1. Schermerhorn, J.R., Hunt, J.G., andOsborn, R.N. (2005). OrganizationalBehavior (11th Edition). New York: JohnWiley & Sons, Inc.

2. Kerr, J. & Slocum, J.W. (2005). Managingcorporate culture through rewardsystems. Academy of ManagementExecutive, 19(4), 131-138.

3. Willcoxson, L. & Millett, B. (2000). TheManagement of Organizational Culture.Australian Journal of Management &Organisational Behaviour, 3(2), 91-99.

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