Unit

V CULTURE:
ORGANIZATIONAL
CREATION, MAINTENANCE
AND CHANGING
ORGANIZATIONAL CULTURE
ORGANIZATION
A consciously coordinated
social unit, composed of two or
more people, that functions on a
relatively continuous basis to
achieve a common goal or set of
goals.
INTRODUCTION TO ORGANIZATIONAL
CULTURE
In 1980s organization were only coordinating and
controlling a group of people
Just as individuals have personalities, so do
organizations- can be flexible, unfriendly or
supportive
Institutionalization
When an organization takes on a life of its own, apart from
any of its members, becomes valued for itself, and
acquires immortality.
Ex: Electronic Data systems created in 1960s Ross Perot- left
1987- started Perot Systems, but EDS continued to thrive
Sony, Gillette, McDonalds, and Disney- has existed beyond the
life of their founders
THE ORGANIZATIONS CULTURE
Organizational Culture
A system of shared meanings and common beliefs
held by organizational members that determines, in a
large degree, how they act towards each other.
The way we do things around here.
Values, symbols, rituals, myths, and practices
Implications:
Culture is a perception.
Culture is shared.
Culture is descriptive.
WHAT IS ORGANIZATIONAL CULTURE?/
WHAT ARE ITS CHARACTERISTICS?
Organizational Culture
A common perception held Characteristics:
by the organizations 1. Innovation and risk
members; a system of taking
shared meaning. 2. Attention to detail
3. Outcome orientation
Pattern of shared basic 4. People orientation
assumptions 5. Team orientation
6. Aggressiveness
7. Stability
7
THE MEANING OF POWER
Power is the capacity
of a person, team, or
organization to
influence others.
The potential to
influence others
Power requires one
persons perception of
dependence on
another person

8
Bases of Power

Types of Individual Power

Formal Power Informal Power

9
 Formal Power
Formal
Power

Legitimate Reward Coercive Informational

Power Power Power Power

10
 1. LEGITIMATE POWER
The power a person receives as a result of his or
her position in the formal hierarchy of an
organization
It represents the formal authority to control and
use organizational resources
Naina Lal Kidwai, Group GM, Country head of
HSBC

11
2. Reward Power
The power arises by capacity to give pay
raises, promotion, praise, interesting
projects, and other rewards to
subordinates.
Success in accessing and utilizing
rewards depends on managers skills.

12
3. Coercive Power
The power stems due to capacity to give
or withhold punishment, such as
suspension, termination, or even the
withholding of praise and goodwill.

Availability varies from one organization

and manager to another.

13
4. INFORMATIONAL POWER

The power that stems from access

to and control over information.
People may protect information in
order to increase their power.

14
Informal Power

INFORMAL

Referent Expert Charismatic

power power power

15
INFORMAL POWER- SOURCES
1. Expert Power
Informal power that stems from
superior ability or expertise.
2. Referent Power
Informal power that stems from
being liked, admired, and respected.
3. Charismatic Power
An intense form of referent power
that stems from an individuals
personality or physical or other
abilities, which induce others to
believe in and follow that person. 16
CONSEQUENCES OF POWER
Sources Consequences
of Power of Power

Expert
Power
Commitment
Referent
Power
Legitimate
Power Compliance

Reward
Power
Coercive Resistance
Power
17
DEPENDENCY: THE KEY TO POWER
The General Dependency Postulate
The greater Bs dependency on A, the greater the power
A has over B.
Possession/control of scarce organizational resources that
others need makes a manager powerful.
Access to optional resources (e.g., multiple suppliers)
reduces the resource holders power.
What Creates Dependency?
Importance of the resource to the organization
Scarcity of the resource
Non-substitutability of the resource
19
POWER TACTICS
Power Tactics- Influence Tactics:
Ways in which Legitimacy
individuals translate Rational persuasion
power bases into
Inspirational appeals
specific actions.
Consultation
Exchange
Personal appeals
Ingratiation
Pressure
Coalitions
20
1. Legitimacy:
Relying on ones authority position or stressing
that a request is in accordance with organizational
policies or rules.
2. Rational persuasion:
Presenting logical arguments and factual
evidence to demonstrate that a request is
.
reasonable.
3. Inspirational appeals:
Developing emotional commitment by
appealing to a targets values, needs, hopes, and
aspirations
4. Consultation:
Increasing the targets motivation and support 21
by involving him or her in deciding how the plan
or change will be done.
5. Exchange:
Rewarding the target with benefits or favors in
exchange for following a request.
6. Personal appeals:
Asking for compliance based on friendship or
loyalty.
7. Ingratiation:
Using flattery, praise, or friendly behavior prior to
making a request.
8. Pressure:
Using warnings, repeated demands, and threats.
9. Coalitions:
Enlisting the aid of other people to persuade the
target or using the support of others as a reason 22
for the target to agree.
USE OF POWER TACTICS: FROM MOST TO
LEAST POPULAR

23
POWER IN GROUPS: COALITIONS
Coalitions
Seek to maximize their
Clusters of individuals size to attain influence.
who temporarily come Seek a broad and
together to a achieve a diverse constituency
specific purpose. for support of their
objectives.
Occur more frequently
in organizations with
high task and resource
interdependencies.
Occur more frequently
if tasks are
standardized and 24

routine.