Organizational Behaviour 2nd European Edition Chapter 3 Organizational Culture Organizational Culture Is ‘The set of shared, taken-for-granted implicit assumptions that a group holds and that determines how it perceives, thinks about and reacts to its various environments.’ - Edgar Schein A Typology of Organizational Values Unequal or Centralized Power Equal or Decentralized Power Organization Power Structure Elite Equitable Meritocractic Endorsed Values Discouraged Endorsed Values Values Discouraged Values Authority Performance rewards Teamwork Participation Commitment Affiliation Authority Performance rewards Teamwork Participation Commitment Affiliation A Typology of Organizational Values (continued) Unequal or Centralized Power Equal or Decentralized Power Organization Power Structure Leadership Egalitarian Collegial Endorsed Values Discouraged Endorsed Values Values Discouraged Values Authority Performance rewards Teamwork Commitment Affiliation Participation Teamwork Participation Commitment Affiliation Authority Performance rewards A Model for Observing and Interpreting General Manifestations of Organizational Culture Culture • Important shared understandings Interpret • Infer meanings Objects • Shared things Talk • Shared sayings Generate Behaviour • Shared doings Emotion • Shared feelings Source: ‘Implications of Corporate Culture: A Manager’s Guide to Action,’ by Vijay Sathe. Receive • Ask • Observe • Read • Feel Four Functions of Organizational Culture Organizational identity Sense-making device Organizational culture Social system stability Collective commitment Types of Organizational Culture Type of Culture Normative Belief Characteristics Constructive Achievement Goal and achievement oriented Constructive Self-actualizing Value self-development and creativity Constructive Humanisticencouraging Participative, employee centred and supportive Constructive Affiliative High priority on constructive interpersonal relationships, and focus on work group satisfaction Types of Organizational Culture (continued) Type of Culture Normative Belief Characteristics PassiveDefensive Approval Avoid conflict, strive to be liked by others and approval oriented PassiveDefensive Conventional Conservative, bureaucratic and people follow the rules PassiveDefensive Dependent Non-participative, centralized decision making and employees do what they are told PassiveDefensive Avoidance Negative reward system and avoid accountability Type of Culture Normative Belief AggressiveDefensive AggressiveDefensive Oppositional AggressiveDefensive Competitive AggressiveDefensive Perfectionistic Power Characteristics Confrontation and negativism rewarded Non-participative, take charge of subordinates and responsive to superiors Winning is values and a win-lose approach is used Perfectionistic, persistent and hard working Developing an Adaptive Culture Early business leaders create and implement a business vision and strategy that fits the business environment well. Firm succeeds. Business leaders emphasize the importance of constituencies and leadership in creating the success. A strong culture emerges with a core that emphasizes service to customers, stockholders and employees, as well as the importance of leadership. Subsequent top managers work to preserve the adaptive core of the culture. They demonstrate greater commitment to its basic principles than any specific business strategy or practice. Embedding Organizational Culture Formal statements of organizational philosophy, mission, vision, values and materials used for recruiting, selection and socialization The design of physical space, work environments and buildings Slogans, language, acronyms and sayings Deliberate role modelling, training programmes, teaching and coaching by managers and supervisors Explicit rewards, status symbols (e.g. titles) and promotion criteria Stories, legends and myths about key people and events Embedding Organizational Culture (continued) The organizational activities, processes or outcomes that leaders pay attention to, measure and control Leader reactions to critical incidents and organizational crises The workflow and organizational structure Organizational systems and procedures Organizational goals and the associated criteria used for recruitment, selection, development, promotion, lay-offs and retirement of people A Model of Organizational Socialization Phases 1. Anticipatory socialization Learning that occurs prior to joining the organization Perceptual and Social Processes • Anticipating realities about the organization and the new job • Anticipating organization’s need for one’s skills and abilities • Anticipating organization’s sensitivity to one’s needs and values A Model of Organizational Socialization (cont.) Phases 2. Encounter Values, skills and attitudes start to shift as new recruit discovers what the organization is truly like Perceptual and Social Processes • Managing lifestyleversus-work conflicts • Managing inter-group role conflicts • Seeking role definition and clarity • Becoming familiar with task and group dynamics A Model of Organizational Socialization (cont.) Phases 3. Change and acquisition Recruit masters skills and roles and adjusts to work group’s values and norms Perceptual and Social Processes • Competing role demands are resolved • Critical tasks are mastered • Group norms and values are internalized A Model of Organizational Socialization (continued) Phases Outsider 1. Anticipatory socialization 2. Encounter 3. Change and acquisition Behavioural Outcomes • Performs role assignments • Remains with organization • Spontaneously innovates and co-operates Socialized Insider Affective Outcomes • Generally satisfied • Internally motivated to work • High job involvement Mentoring The process of forming and maintaining an intensive and lasting developmental relationship between a senior person (the mentor) and a junior person. Functions of Mentoring Career Functions - Sponsorship - Exposure and visibility - Coaching - Protection - Challenging assignments Psychosocial Functions - Role modelling - Acceptance and confirmation - Counselling - Friendship Phases of the Mentor Relationship Phase Definition Initiation A period of six months to a year during which time the relationship gets started and begins to have importance for both managers. Cultivation A period of two to five years during which time the range of career and psychosocial functions provided expand to a maximum. Phases of the Mentor Relationship (continued) Phase Separation Definition A period of six months to two years after a significant change in the structural role relationship and/or in the emotional experience of the relationship. Redefinition An indefinite period after the separation phase, during which time the relationship is ended or takes on significantly different characteristics, making it a more peer-like friendship.
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