Management - Culture Lecture Notes
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Transcript of Management - Culture Lecture Notes
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8/10/2019 Management - Culture Lecture Notes
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ORGANIZATIONAL CULTURE
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"...We believe that organizations
will ultimately get only as far as
their organizational cultures
take them."
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Dfinition
The basic pattern of shared assumptions,values, and beliefs considered to be the correctway of thinking about and acting on problems
and opportunities facing the organization.
The Philosophy that guides an Organizationspolicy towards employees & customers.
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ORGANIZATIONAL CULTURE
The culture of an organization represents certain predefined
policies which guide the employees and give them a sense ofdirection at the workplace.
The culture decides the way employees interact at their
workplace.
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IMPORTANCE OF ORGANIZATIONAL CULTURE
The Culture decides the way employeesinteract at their workplace.
The organization culture brings all the
employees on a common platform.
It is the culture of the organization whichextracts the best out of each team member
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IMPORTANCE(contd)
The culture of the workplace also goes a long way in promoting
healthy competition at the workplace.
The culture of an organization represents certain predefinedpolicies which guide the employees and give them a sense ofdirection at the workplace
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Organizational Culture
Organizational Culture A common perception held by the organizations members; a
system of shared meaning
Seven primary characteristics1. Innovation and risk taking
2. Attention to detail3. Outcome orientation4. People orientation5. Team orientation6. Aggressiveness7. Stability
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for example : When you shape a round finger, it
means zero in Indonesia but in Brazil that isrude.
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OVERVIEW OF TATA AND FORD
MOTORS
Jamsetji Nusserwanji Tata Henry Ford
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Do Organizations Have Uniform
Cultures?Culture is a descriptive term: it may act as a substitute for
formalization Dominant Culture
Expresses the core values that are shared by a majority ofthe organizations members
Subcultures Minicultures within an organization, typically defined by
department designations and geographical separation
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 andwidely shared
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What Do Cultures Do? Cultures Functions
1. Defines the boundary between oneorganization and others
2. Conveys a sense of identity for its members
3. Facilitates the generation of commitment tosomething larger than self-interest
4. Enhances the stability of the social system
5. Serves as a sense-making and controlmechanism for fitting employees in theorganization
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Culture as a Liability/Dysfunction
Institutionalization A company can become institutionalized where it is valued
for itself and not for the goods and services it provides
Barrier to change
Occurs when cultures values are not aligned with thevalues necessary for rapid change
Barrier to diversity Strong cultures put considerable pressure on employees to
conform, which may lead to institutionalized bias
Barrier to acquisitions and mergers Incompatible cultures can destroy an otherwise successful
merger
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Summary: How Organizational
Cultures Form
Organizational cultures are derived from the
founder
They are sustained through the selection
process, managerial action, and socialization
methods
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How Culture Begins (Building)
Stems from the actions of the founders: Founders hire and keep only employees who think
and feel the same way they do.
Founders instruct and socialize these employeesto their way of thinking and feeling.
The founders own behavior acts as a role modelthat encourages employees to identify with them
and thereby internalize their beliefs, values, andassumptions.
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Keeping a Culture Alive (Maintaining)
Three forces play a particularly important role insustaining a culture:
Selection Identify and select individuals who are high performers
and whose values are consistent with at least a goodportion of the organizations values
Top Management Through words and behaviors, senior executives establish
norms that filter through the organization
Socialization The process that helps new employees adapt to the
prevailing organizational culture
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How Employees Learn Culture
Stories Anchor the present into the past and provide explanations and
legitimacy for current practices
Rituals
Repetitive sequences of activities that express and reinforce thekey values of the organization
Material Symbols Acceptable attire, office size, lavishness of the office furnishings,
and executive perks that convey to employees who areimportant in the organization
Language Jargon and special ways of expressing ones self to indicate
membership in the organization
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Creating an Ethical Organizational
Culture
Characteristics of Organizations that Develop HighEthical Standards
Has high tolerance for risk
Low to moderate in aggressiveness
Focused on means as well as outcomes
Managerial Practices Promoting an Ethical Culture
Being a visible role model
Communicating ethical expectations
Providing ethical training
Visibly rewarding ethical acts and punishing unethical ones
Providing protective mechanisms
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