CHAPTER OBJECTIVES
Understand the concept of organizational
culture culture
management
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WHAT IS ORGANIZATIONAL CULTURE? A system of shared actions, values, and beliefs that develop within an organization and guides the behavior of its members.
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External adaption - Deals with reaching goals, the tasks to be accomplished, methods used to achieve goals and method used of coping success and failure.
v OC function through shared experiences,
members of the organization may develop common views as guidance to their day-to-day activities
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Internal integration - Deals with the creation of a collective identity and with ways of working and living together
v OC function through dialogues and
interaction, members of the organization begin to characterize their environment and background
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SUBCULTURE VS COUNTERCULTURE
SUBCULTURE : Groups of individuals that have their own values and philosophy that is not consistent with the organizations dominant values and philosophy
Example : In the Boeing Renton, there are strong stress engineers and liaison engineers that specialized in solving knotty technical issue to ensure the Boeing planes are safe. However, these groups of engineers also share in the dominant values of Boeing. 4/29/12
COUNTERCULTURE: Groups of individuals where the SUBCULTUREand philosophy reacts against the patterns of values VS COUNTERCULTURE larger organization or social system
Example : The punk movement of the seventies and early eighties sought to be anti-establishment and anti-capitalist.
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between national cultures are mainly found in the 4/29/12 VALUES of the different cultures, whereas
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OBSERVABLE CULTURE : The way things are done in the organization can be sees, hears and feels
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Saga is an embellished heroic account of the story of the founding of an organization. Rite and Rituals : Rites are standardized and recurring activities that are used at special times to influence the behaviors and understanding of organizational members whereas the rituals are the system of the rites.
Cultural symbol is any object, act, or event that serves to transmit cultural meaning.
Cultural Rules and Roles are the part of normative controls of the organization and appear from its daily routine such as the presentation and methods of communicating 4/29/12
Shared Values: Linking people together and can provide a powerful motivational mechanism for members
Shared Values and Meanings: help turn routine activities into valuable and important actions. This mean by what tasks a person performs not only workable but must be correct, right and important.
However, not all members agree with the shared values but they have been exposed to and often told that they are important.
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COMMON ASSUMPTION : Are the taken-forgranted truths that collections of corporate members share as a result of their joint experience. Myths is a commonly held cause effect Organizational
relationship or assertion by senior management that cannot be supported empirically because they are unproven and often unstated beliefs that are accepted uncritically. Myth can be real or imaginary, might not have ever happened but it could have happened, can be positive or negative. However, this myth can help people make sense of their world.
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Management Philosophy
Definition:
Links key goal-related strategic issues with key
collaboration issues and come up with a series of general ways by which the firm will manage its affairs.
Set of common values or ideas espoused by
external adaptation.
4/29/12 Well-developed Management Philosophy is
integration
Linkages between corporate culture and finance
performance
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Hierarchy-based reward Performance-based system reward system Steady-state strategy Clan culture: Long-term commitment Fraternal r/ship Mutual interests Collegiality with heavy pressures to conform from peers Superiors acting as mentors Evolution and change strategy Market culture: Contractual link between employee and employer Focused on short-term performance Stressed individual initiative with very little pressure from peers to conform Supervisors acting as resource allocators
Industry Type Power generation, Restaurants, consumer chemicals, mining and products, industrial 4/29/12 pharmaceuticals industry services.
and actions would follow with goals to establish a clear, consistent organization-wide consensus.
Results: Impossible and Undesirable approach. This is because, changing peoples value from top
down without changing how the organization operates and recognizes the importance of individuals does not work very well.
Revitalize an organization by dictating major
References
1. Schermerhorn, J.R., Hunt, J.G., and
Osborn, R.N. (2005). Organizational Behavior (11th Edition). New York: John Wiley & Sons, Inc. corporate culture through reward systems. Academy of Management Executive, 19(4), 131-138.
Management of Organizational Culture. Australian Journal of Management & Organisational Behaviour, 3(2), 91-99. 4/29/12