MGMT 3000 CH 8: Organizational Culture (exam 2) PDF

MGMT 3000 CH 8: Organizational Culture (exam 2) Study online at https://quizlet.com/_9n8unf 1. Culture The way individuals in an organization uniquely and col- lectively think, feel, and act - Provides employees with a r...

MGMT 3000 CH 8: Organizational Culture (exam 2) Study online at https://quizlet.com/_9n8unf 1. Culture The way individuals in an organization uniquely and col- lectively think, feel, and act - Provides employees with a road map and a set of rules for how work gets done and how people interact in the firm - Responds to humans' basic need for stability, consisten- cy, and meaning - Needs to be externally relevant to ensure that the firm operates successfully as its environment changes 2. Culture and Firm A strong culture: Performance - Can lead to better levels of performance, higher financial metrics, and distinctive competitive advantage - Promotes ethical guidelines that define acceptable and unacceptable behavior, helping the organization require less coordination and monitoring - Clarifies roles by being explicit about what is expected in an organization Subcultures: Cultures that form around geographic or or- ganizational units in a company fixed mindset vs growth mindset 3. Subcultures Cultures that form around geographic or organizational units in a company 4. Understanding deciphering the roots of a firm's culture Culture - An appreciation of its values and philosophy or purpose - An understanding of the group's boundaries - An understanding of its power structure - An understanding of its work rules and norms - An evaluation of its reward and punishment system 5. The Impact of how agreement and intensity impact culture Values on Cul- ture (Figure 8.1) low intensity, low agreement = weak culture low intensity, high agreement = passive culture (all agree 1/7  MGMT 3000 CH 8: Organizational Culture (exam 2) Study online at https://quizlet.com/_9n8unf but not an intense set of values) high intensity, low agreement = competing forces (a lot of disagreement over what does values are) high intensity, high agreement = strong culture (what you want as long as it is good) 6. Netflix CEO Reed The actual company values, as opposed to the nice Hastings: Deci- sounding values, or shown by who gets rewarded, promot- phering a Firm's ed, and let go. True Values (and thus Culture) Actual company values are the behaviors and skills that are valued and fellow employees. 7. Levels of Organi- - Artifacts (Surface) zational Culture - Beliefs and values (Below the surface) - Assumptions (Farther below the surface) 8. Artifacts (Sur- Visible organizational structures, processes, and lan- face) guages - buildings, dress code, office design 9. Beliefs and val- The meanings that members of an organization attach to ues (Below the artifacts surface) 10. Assumptions A behavior derived from a belief held by a group that is no (Farther below longer visible, but has become deeply embedded in the the surface) organization - These are unconscious beliefs that organizational mem- bers are not even aware of until one of the beliefs is challenged. - Ex:, the way a law firm interacts with a client, handles client funds, etc. Informal Structures Built Around Assumptions - "Hidden" aspect of an organization - Develop over a period of time 2/7  MGMT 3000 CH 8: Organizational Culture (exam 2) Study online at https://quizlet.com/_9n8unf - Not listed in the firm's bylaws or management practices - Are affected by organizational changes 11. Developing Cul- 1. Role of Founders ture 2. Role of Organizational Leaders 3. Role of Teams 4. Cultural Socialization 12. Role of Founders - Their capacity to make assumptions stick (can insist on decisions that aren't financially amazing but that uphold cultural values) - Their encouragement of innovation (founders are the only people that can make risky decisions and not be accountable to anyone) - Their capacity to absorb the anxiety associated with risk 13. Role of Organiza- - Inspire all managers and employees to do their best. tional Leaders - Empower employees and managers to make indepen- dent decisions and to find ways to improve operations. - Reward achievement with pay based on performance, and continue raising the bar. - Reward achievement with nonpay perks such as new assignments and employee recognition. - Create a challenging work environment. - Establish and abide by a clear set of values. 14. Role of Teams they directly impact culture by the manner in which they: - encounter big problems - solve those problems - perceive the effects of their solutions ~The way teams work can become part of the organiza- tion's shared beliefs and values ~Teams that have good results can help create a team-based culture at a firm A course of action prescribed by a founder has to be tried 3/7  MGMT 3000 CH 8: Organizational Culture (exam 2) Study online at https://quizlet.com/_9n8unf and tested by employees before it becomes an integral part of an organization's culture 15. Cultural Social- Socialization: ization The process of understanding how work gets done and how individuals should interact in an organization (ex. orientation at uga) Organizational commitment: The desired end result of socialization whereby employ- ees become committed to the organization and its goals 16. The Process of Forms of cultural socialization: Cultural Social- - Statements of philosophy, creeds, and values ization - Design of physical spaces - Role modeling, leader examples, teaching, and coaching - Reward systems and norms - Stories, legends, myths, and parables - What leaders pay attention to, measure, and control - Leader reactions to critical incidents and crisis - Design of the organization - Criteria for recruiting, selecting, promoting, and manag- ing employees 17. Four Determi- - People nants of Culture - Formal organization (in the middle) (Figure 8.2) - Leader (Bob Iger vs Bob Cheapek) - Task Requirements (flying a plane or creating an ad) 18. Building Organi- - Compliance zational Commit- - Identification ment (Figure 8.3) - Internalization 19. Compliance Commitment to the firm based on a fair exchange, such as pay for services 20. Identification Commitment to the firm based on a sense of belonging 21. Internalization 4/7  MGMT 3000 CH 8: Organizational Culture (exam 2) Study online at https://quizlet.com/_9n8unf Commitment to the firm based on an alignment between the firm's values and the individual's values (ex. uga al- lumni) 22. Work culture working at Amazon vs Google vs Zappos 23. Culture and Cru- Evaluating culture in mergers and acquisitions cial Moments - Understanding the culture of the acquiring firm as well as the culture of the firm to be acquired - Combining the two cultures - Where are the similarities and differences? - What needs to change? - How will the value of both cultures be maximized? Key point for managers to keep in mind is that much of the value of an acquired firm may be in its culture - Internal integration (How work is accomplished in a firm) - External adaptation (How environmental changes impact a firm's strategy) 24. Internal integra- How work is accomplished in a firm tion 25. External adapta- How environmental changes impact a firm's strategy tion 26. Types of Cul- ~ Work Hard - Play Hard Culture tures ~ Tough-Guy, Macho Culture ~ Bet-Your-Company Culture ~ Process Culture 27. Work Hard - Play Where can you find this culture: Sales (among others) Hard culture - Employees themselves take few risks - Feedback on how well they are performing is almost immediate - Employees have high levels of energy and stay upbeat ~~~Heroes in such cultures are high volume salespeople What is unique about the culture? 5/7  MGMT 3000 CH 8: Organizational Culture (exam 2) Study online at https://quizlet.com/_9n8unf - Recognition that one person alone cannot make the company - Team effort and everyone is driven to excel - Contests among employees are common here, as they drive everyone to reach new heights 28. Tough-Guy, Ma- Where can you find this culture: entertainment industry, cho culture sports teams and advertising - Individualists who enjoy risk and who get quick feedback on their decisions. What is unique about the culture? - All-or-nothing culture: successful employees are the ones who enjoy excitement and work very hard to be stars and all others are second class citizens - Teamwork is not highly valued - Difficult environment for people who blossom slowly (higher turnover, which impedes efforts to build a cohesive culture) 29. Bet-Your-Compa- Where can you find this culture: pharmaceutical, oil & gas ny Culture companies, architectural firms and organizations in other large, capital-intensive industries What is unique about the culture? - long-term focused: decisions are high risk but employees may wait years before they know whether their actions actually paid off - collective belief in the need to plan, prepare and perform due diligence at all stages of decision making 30. Process Culture Where can you find this culture: large retailers, banks, insurance companies and government organizations - No single transaction has much impact on the organi- zation's success and it takes years to find out whether a decision was good or bad. What is special about the culture? - Employees find it very difficult to measure what they do 6/7 MGMT 3000 CH 8: Organizational Culture (exam 2) Study online at https://quizlet.com/_9n8unf so they focus instead on how they do things - High value on technical excellence - Pay attention to getting the process and the details right - Not always measuring the actual outcome 7/7