ORGANIZATIONAL BEHAVIOR

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T

OBJECTIVES
LEARNING

Besides your textbook concepts, you

will also learn to:
1. Understand the role of organizational culture
2. Vision, mission ,values
3. Dominant, culture/sub-cultures
4. Merging cultures
5. Creativity and innovation in workplace
6. Organizational socialization
7. Keeping culture alive

The Basic Functions of Organizational Culture

Organizational
Culture/basic functions

Provides a
sense of
identity for
members

Enhances
commitment
to the
organizations
mission

Clairifies
and
reinforces
standards
of behavior

Core Organizational Values

Reflected in Culture

Sensitivity to needs of customers and employees

Freedom to initiate new ideas
Willingness to tolerate taking risks
Openness to communication options

Organizational
Organizational Culture
Culture

Todays Mergers and Acquisitions: Will They be Tomorrows Culture Clashes?

This bank

Merged with

To become

Citicorp

Travelers

Citigroup

Bank America

Nations Bank

Bankamerica

Bank One

First Chicago NBD

Bank One

First Union

Corestates

First Union

Components of Creativity

Skills in
the Task
Domain

Greatest
creativity

Skills in
Creative
Thinking

Intrinsic
Motivation

Skills in Innovation Management: A Careful Balancing Act

Linked to
corporate
mission

Goals

but not
overly
specific

Generously
and fairly
reward ones
contributors

Reward Systems

but not so
specific as
to connect
everything to
money

Sense
of
urgency

Time Pressure
but not
too urgent

The Process of Innovation

Stage 1

Stage 2

Stage 3

Stage 4

Setting
the
Agenda

Setting
the
Stage

Producing
the
Ideas

Testing and
Implementing
the Ideas

Motivation

Individual
or Team
Productivity
Resources
Skills

Stage 5

Progress

Success
Outcome
Assessment
Failure

End
End

Creating
Creating aa Customer-Responsive
Customer-Responsive Culture
Culture
Key Variables Shaping Customer-Responsive
Cultures
1. The types of employees hired by the
organization.
2. Low formalization: the freedom to meet customer
service requirements.
3. Empowering employees with decision-making
discretion to please the customer.
4. Good listening skills to understand customer
messages.
5. Role clarity that allows service employees to act
as boundary spanners.
6. Employees who engage in organizational
citizenship behaviors.

Creating
Creating An
An Ethical
Ethical Organizational
Organizational Culture
Culture
Characteristics of Organizations that Develop
High Ethical Standards
High tolerance for risk
Low to moderate in aggressiveness
Focus 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.

What
What Is
Is Organizational
Organizational Culture?
Culture?

Characteristics:
Characteristics:
1.1. Innovation
Innovationand
andrisk
risk
taking
taking
2.2. Attention
Attentionto
todetail
detail
3.3. Outcome
Outcomeorientation
orientation
4.4. People
Peopleorientation
orientation
5.5. Team
Teamorientation
orientation
6.6. Aggressiveness
Aggressiveness
7.7. Stability
Stability

Institutionalization:
Institutionalization: AAForerunner
Forerunner of
of Culture
Culture

What
What Is
Is Organizational
Organizational Culture?
Culture? (contd)
(contd)

What
What Is
Is Organizational
Organizational Culture?
Culture? (contd)
(contd)
Culture Versus Formalization
A strong culture increases behavioral
consistency and can act as a substitute for
formalization.

Organizational Culture Versus National Culture

National culture has a greater impact on
employees than does their organizations
culture.
Nationals selected to work for foreign companies
may be atypical of the local/native population.

What
What Do
Do Cultures
Cultures Do?
Do?

Cultures
CulturesFunctions:
Functions:
1.1. Defines
Definesthe
theboundary
boundarybetween
betweenone
one
organization
organizationand
andothers.
others.
2.2. Conveys
Conveysaasense
senseof
ofidentity
identityfor
forits
itsmembers.
members.
3.3. Facilitates
Facilitatesthe
thegeneration
generationof
ofcommitment
commitmentto
to
something
somethinglarger
largerthan
thanself-interest.
self-interest.
4.4. Enhances
Enhancesthe
thestability
stabilityof
ofthe
thesocial
socialsystem.
system.

What
What Do
Do Cultures
Cultures Do?
Do?

Culture
Cultureas
asaaLiability:
Liability:
1.1. Barrier
Barrierto
tochange
change
2.2. Barrier
Barrierto
todiversity
diversity
3.3. Barrier
Barrierto
toacquisitions
acquisitionsand
and
mergers
mergers

Creating
Creating aa Customer-Responsive
Customer-Responsive Culture
Culture
Managerial
ManagerialActions:
Actions:
Select
Selectnew
newemployees
employeeswith
withpersonality
personalityand
and
attitudes
attitudesconsistent
consistentwith
withhigh
highservice
service
orientation.
orientation.
Train
Trainand
andsocialize
socializecurrent
currentemployees
employeesto
tobe
be
more
morecustomer
customerfocused.
focused.
Change
Changeorganizational
organizationalstructure
structureto
togive
give
employees
employeesmore
morecontrol.
control.
Empower
Empoweremployees
employeesto
tomake
makedecision
decisionabout
about
their
theirjobs.
jobs.

Keeping
Keeping Culture
Culture Alive
Alive
Selection
Concerned with how well the candidates will fit
into the organization.
Provides information to candidates about the
organization.

Top Management
Senior executives help establish behavioral
norms that are adopted by the organization.

Socialization
The process that helps new employees adapt to
the organizations culture.

Stages
Stages in
in the
the Socialization
Socialization Process
Process

AASocialization
Socialization Model
Model

EXHIBIT

18-2

Entry
Entry Socialization
Socialization Options
Options

Formal
Formalversus
versusInformal
Informal
Individual
Individualversus
versusCollective
Collective
Fixed
Fixedversus
versusVariable
Variable
Serial
Serialversus
versusRandom
Random
Investiture
Investitureversus
versusDivestiture
Divestiture

EXHIBIT

18-3

How
How Organization
Organization Cultures
Cultures Form
Form

EXHIBIT

18-4

How
How Employees
Employees Learn
Learn Culture
Culture
Stories
Stories
Rituals
Rituals
Material
MaterialSymbols
Symbols
Language
Language

Creating
Creating aa Customer-Responsive
Customer-Responsive Culture
Culture
Managerial
ManagerialActions
Actions(contd)
(contd)::
Lead
Leadby
byconveying
conveyingaacustomer-focused
customer-focusedvision
vision
and
anddemonstrating
demonstratingcommitment
commitmentto
tocustomers.
customers.
Conduct
Conductperformance
performanceappraisals
appraisalsbased
basedon
on
customer-focused
customer-focusedemployee
employeebehaviors.
behaviors.
Provide
Provideongoing
ongoingrecognition
recognitionfor
foremployees
employeeswho
who
make
makespecial
specialefforts
effortsto
toplease
pleasecustomers.
customers.

Spirituality
Spirituality and
and Organizational
Organizational Culture
Culture

Characteristics:
Characteristics:
Strong
Strongsense
senseof
of
purpose
purpose
Focus
Focuson
onindividual
individual
development
development
Trust
Trustand
andopenness
openness
Employee
Employee
empowerment
empowerment
Toleration
Tolerationof
ofemployee
employee
expression
expression

How
How Organizational
Organizational Cultures
Cultures Have
Have an
an Impact
Impact
on
on Performance
Performance and
and Satisfaction
Satisfaction

EXHIBIT

18-7