CHAPTER 4 SOCIAL SYSTEMS AND ORGANIZATIONAL STRUCTURE
SOCIAL SYSTEM
- A complex set of human relationship interacting in many ways.
- Open Systems that interact w/ their surroundings
SOCIAL EQUILIBRIUM
- Systems interdependent parts are in dynamic working balance.
FUNCTIONAL AND DYSFUNCTIONAL EFFECTS
Functional Effect favorable for the system
Dysfunctional Effect action or change creates unfavorable effects
PSYCHOLOGICAL & ECONOMIC CONTRACTS
Psychological Contract defines the conditions of each employees
psychological involvement
Exchange Theory suggest that whenever a continuing relationship exists
between two parties, each person regularly examine the rewards and costs
of that interaction.
Economic Contract -
SOCIAL CULTURE environment of human-created beliefs, customs,
knowledge and practices.
Cultural Diversity rich variety of differences among people at work
raises the issue of fair treatment for workers who are not in positions of
authority.
Discrimination exhibited as an action
Prejudice attitude
Work Ethic viewing work as very important and as a desirable goal in
life.
Social Responsibility - recognition that organizations have significant
influence on the social system and that influence must be properly
considered and balanced in organizational actions.
Role pattern of actions expected of a person in activities involving
others.
Role Perceptions how they think they are supposed to act in their own
roles and how others should act in their roles.
Mentor role model who guides another employee by sharing valuable
advice on roles to play and behaviors to avoid.
Role Conflict when others have a different perceptions or
expectations of a persons role, that person tends to experience
Role Ambiguity people are not sure how they should act in situation of
this type.
Status social rank of a person in a group.
2 TYPES OF STATUS
1. Achieved anything you have acquired
2. Ascribed anything that is unplanned and learned
Status System define the individuals rank relative to others in the
group.
Status Anxiety becoming seriously upset over their status
Status deprivation Losing Face loss of status
Status Symbols visible, external things that attach to a person or
workplace and serve as evidence of social rank.
ORGANIZATIONAL CULTURE set of assumptions, beliefs, values and norms
that are shared by an organizations members.
CHARACTERISTICS OF ORGANIZATIONAL CULTURES
Distinctive Integrated
Stable Accepted
Implicit A reflection of top management
Symbolic Subcultures
No one type is best Of Varying Strengths
9 TYPES OF ORGANIZATONAL CULTURE
1. Normative - acc. to the norms and rules defined
2. Pragmatic - Customer satisfaction is the main motive
3. Academy employees stick to org. and grow w/ it.
E.g. hospitals, universities, and large corporations.
4. Baseball - employees - most treasured possession of the organization
E.g. advertising and investment banking
5. Club - individuals are hired as per their specialization, educational
qualification and interests
E.g. law firms, the military
6. Fortress - undergoes massive changes; E.g. loans and savings, large car
companies
7. Macho - employees is reviewed from time to time and their work is
thoroughly monitored
8. Work-hard - strong client relationship
9. Process - acc. to laws

Organizational Socialization - continuous process of transmitting key

elements of an organizations culture to its employees.
Storytelling a way to forge a culture and build organizational identity.
Individualization occurs when employees successfully exert influence on
the social system around them at work by challenging the culture or
deviating from it.
Socialization VS Individualization
Socialization impact of organizational culture on employee; acceptance of
norms
Individualization impact of employee on organizational culture; deviation
from norms
3 STEPS/PROCESS OF SOCIALIZATION
1. Pre-arrival - encompasses the learning before a new member joins the
organization
2. Encounter - The employee compares her expectations to organizational
reality
3. Metamorphosis already adopt the culture; Employee attitudes and
behavior change

4 COMBINATIONS OF SOCIALIZATION and INDIVIDUALIZATION