Professional Documents
Culture Documents
managers try not to implement ideas that deviate much from the status
quo.
One lower-level manager quoted an often used phrase in the company: If
it aint broke, dont fix it.
There are extensive rules and regulations in this firm that employees are
required to follow.
Managers supervise employees closely to ensure there are no deviations.
Management is concerned with high productivity, regardless of the impact
on employee morale or turnover.
Work activities are designed around individuals.
There are distinct departments & lines of authority, and employees are
expected to minimize formal contact with other employees outside their
functional area / line of command.
Performance evaluations and rewards emphasize individual effort, although
seniority tends to be the primary factor in the determination of pay raises
and promotions.
Organization B
This organization is also a manufacturing firm.
Here, however, management encourages and rewards risk taking and
change.
Decisions based on intuition are valued as much as those that are well
rationalized.
Management prides itself on its history of experimenting with new
technologies and its success in regularly introducing innovation products.
Managers or employees who have a good idea are encouraged to run with
it. And failures are treated as learning experiences.
The company prides itself on being market-driven and rapidly responsive to
the changing needs of its customers.
There are few rules and regulations for employees to follow, and
supervision is loose because management believes that its employees are
hardworking and trustworthy.
Defining Boundaries
Conveying Identity
Promoting Commitment
Controlling Behavior
a) Defining Boundaries
Culture has a boundary-defining role.
Culture creates distinctions between one organization and others.
b) Conveying Identity
Culture conveys a sense of identity for organization members.
Who receives a job offer to join the organization, who is appraised as a high
performer, and who gets the promotion is strongly influenced by the
individual-organization fit.
c) Promoting Commitment
Culture facilitates the generation of commitment to something larger
than self-interest.
d) Controlling Behavior
Culture serves as a sense-making and control mechanism that guides
and shapes the attitudes and behavior of employees for fitting
employees in the organization
Every organization develops a core set of assumptions, understandings,
and implicit rules that govern day-to-day behavior in the workplace.
Culture enhances the stability of the social system.
Dysfunctional Effects or Culture as liability
Following are the functional effects of Culture:
a) Barrier to change
b) Barrier to diversity
c) Barrier to acquisitions and mergers
a) Barrier to change
When cultures are strong, they can become a barrier to change.
Barrier to change occurs when cultures values may not align with the
values needed to embrace or facilitate the change.
This is most likely to occur when an organizations environment is dynamic.
b) Barrier to diversity
Strong cultures put considerable pressure on employees to conform, which
may lead to institutionalized bias.
Cultures that may pressure employees to conform can be a barrier to
hiring, developing, and promoting a diverse workforce.
Organizations seek out and hire diverse individuals because of their
alternative strengths.
c) Barrier to acquisitions and mergers
Historically, the key factors that management looked at in making
acquisition/ merger decisions:
Financial advantages
Product synergy
Cultural compatibility has become the primary concern.
Incompatible cultures can destroy an otherwise successful merger.
Finally, if a merger or acquisition occurs, one of the most difficult things to
do is to merge the two cultures, causing many mergers to fail.
c) Socialization methods
The process that helps new employees adapt to the organizations culture
Stages in the Socialization Process
The socialization process has the following three stages as shown in the figure:
a) Pre-arrival Stage
b) Encounter Stage
c) Metamorphosis Stage
a) Pre-arrival Stage
The period of learning in the socialization process that occurs before a new
employee joins the organization.
b) Encounter Stage
The stage in the socialization process in which a new employee sees what
the organization is really like and confronts the possibility that expectations
and reality may diverge.
c) Metamorphosis Stage
The stage in the socialization process in which a new employee changes
and adjusts to the work, work group, and organization.
Chapter # 16 Organizational Culture
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Socialization Outcomes:
Higher productivity
Greater commitment
Lower turnover
Summary: How Organizational Cultures Form
Organizational cultures are derived from the founder
They are sustained through managerial action
Stories
Rituals
Material Symbols
Language
a) Stories
They can gain an understanding of culture by hearing stories that present
the past and provide explanations for current practices.
b) Rituals
Rituals, or repetitive sequences of activities, can reinforce the key values of
the organization and provide insight into the culture.
c) Material Symbols
Material symbols such as dress codes, formal or informal, office size or
style, and perks for key employees can denote who is important in an
organization.
d) Language
Language is another way to learn about organizational culture as
employees will express themselves in certain ways to indicate membership
in the organization.
Jargon and special ways of expressing ones self to indicate membership in
the organization.
Chapter # 16 Organizational Culture
Page 11
Managerial Actions:
i.
ii.
iii.
iv.
v.
vi.
vii.
Select new employees with personality and attitudes consistent with high
service orientation.
Train and socialize current employees to be more customers focused.
Change organizational structure to give employees more control.
Empower employees to make decisions about their jobs.
Lead by conveying a customer-focused vision and demonstrating
commitment to customers.
Conduct performance appraisals based on customer-focused employee
behaviors.
Provide ongoing recognition for employees who make special efforts to
please customers.