Chapter 4 2024 Motivation - Student version PDF

ECONOMICS AND BUSINESS ORGANISATION Daniel EVANS Bachelor ABM1 never stop daring audencia.com CHAPTER 4 : MOTIVATION never stop daring SUMMARY. What is motivation? I A. Determinants of performance B. Direction & Intensity...

ECONOMICS AND BUSINESS ORGANISATION Daniel EVANS Bachelor ABM1 never stop daring audencia.com CHAPTER 4 : MOTIVATION never stop daring SUMMARY. What is motivation? I A. Determinants of performance B. Direction & Intensity C. Process and Content Theories of Motivation II. Content Theories of Motivation A. Manifest Needs (Murray) B. Learned Needs (McClelland) C. Maslow’s Hierarchy of Needs D. Existence-Relatedness-Growth (ERG) Needs (Alderfer) E. Motivator-Hygiene Theory (Herzberg) III. Process Theories of Motivation A. Operant Conditioning (Skinner) B. Equity Theory (Adams) C. Goal Theory (Locke) D. Expectancy Theory (Vroom) IV. The role of corporate culture in employee involvement 3 LEARNING GOALS At the end of this chapter, students should be able to : Describe and apply the 5 core content theories of motivation (Murray, McClelland, Maslow, Alderfer and Herzberg) Compare and contrast the 5 core content theories of motivation (Murray, McClelland, Maslow, Alderfer and Herzberg Describe and apply the 4 core process theories of motivation (Operant conditioning, Equity Theory, Goal Theory and Expectancy Theory) Compare and contrast the 4 core process theories of motivation (Operant conditioning, Equity Theory, Goal Theory and Expectancy Theory) Describe Schein’s onion model of corporate culture and how it can impact motivation Explain the strategic impact of corporate culture 4 WHAT IS MOTIVATION ? never stop daring I. WHAT IS MOTIVATION ? Determinants of Performance Knowledge & Skills My goals & way to acheive them Resources, information 6  I. WHAT IS MOTIVATION ? Determinants of Performance Motivation : A force inside(satisfaction of needs, values,..) or outside (incentives) of the body that energizes, directs, and sustains human behavior. The word stems from its Latin root movere, which means “to move.” Motivation : How much effort/energy are you ready to exert to achieve a desired objective? 7 I. WHAT IS MOTIVATION ? Determinants of Performance 8 I. WHAT IS MOTIVATION ? Direction & Intensity : 2 major components of motivation Direction : Direction is what a person wants to achieve, what they intend to do. It implies a target that motivated people try to “hit.” (ex. A performance target) Careful : the employee’s target may not be the employer’s target. Manager need to make sure goals are clear and understood – role perception need to be accurate. Intensity: is what we think of as effort. It represents the energy we expend to accomplish something. If our efforts are getting nowhere, will we try different strategies to succeed? BOTH are important to create performance 9 I. WHAT IS MOTIVATION ? Direction & Intensity : 2 major components of motivation Direction : Direction is what a person wants to achieve, what they intend to do. It implies a target that motivated people try to “hit.” (ex. A performance target) Careful : the employee’s target may not be the employer’s target. Manager need to make sure goals are clear and understood – role perception need to be accurate. Intensity: is what we think of as effort. It represents the energy we expend to accomplish something. If our efforts are getting nowhere, will we try different strategies to succeed? BOTH are important to create performance 10 I. WHAT IS MOTIVATION ? Process and Content Theories of Motivation Process Theories : Process motivation theories address how people become motivated - that is, how people perceive and think about a situation. What’s going on in their minds – the rational process? They examine how a person's needs will affect his behavior in order to achieve a goal related to those needs. These theories are typically used in a workplace context. (How we perceive, think and behave in regards to motivation) A basic question : Why are behaviors initiated and why exert effort to hit the goal? Content Theories : content motivation theories focus on the content of what motivates people. (What motivates us) The basic premise of content theories is that humans have needs. When these needs are not satisfied, humans are motivated to satisfy the need. The need provides direction for motivation. They “propel” us. 11 II. CONTENT THEORIES never stop daring II. CONTENT THEORIES A. Manifest Needs (Murray) When a need has been energized (“I feel deficient”), we are motivated to satisfy it. We strive to make the need disappear. Hedonism, one of the first motivation theories, assumes that people are motivated to satisfy mainly their own needs (seek pleasure, avoid pain). Hedonism clarifies the idea that needs provide direction for motivation Once a need is satisfied  other needs take over. A manifest need is whatever need is motivating us at a given time. Manifest needs dominate our other needs. Only a few needs are expressed at a given time. A latent need cannot be inferred from a person’s behavior at a given time, yet the person may still possess that need. 13 II. CONTENT THEORIES A. Manifest Needs (Murray) When a need has been energized (“I feel deficient”), we are motivated to satisfy it. We strive to make the need disappear. Hedonism, one of the first motivation theories, assumes that people are motivated to satisfy mainly their own needs (seek pleasure, avoid pain). Hedonism clarifies the idea that needs provide direction for motivation Once a need is satisfied  other needs take over. A manifest need is whatever need is motivating us at a given time. Manifest needs dominate our other needs. Only a few needs are expressed at a given time. A latent need cannot be inferred from a person’s behavior at a given time, yet the person may still possess that need. 14 II. CONTENT THEORIES A. Manifest Needs (Murray) Instincts (primary needs) include physiological needs for food, water, sex (procreation), urination, and so on. Learned needs, which Murray called secondary needs, are learned throughout one’s life and are basically psychological in nature. They include such needs as the need for achievement, for love, and for affiliation. 15 II. CONTENT THEORIES A. Manifest Needs (Murray) Some employee needs are latent ! Assume that employees do not have certain needs because the employees never try to satisfy them at work is an error. Such needs may exist (latent needs); the work environment is simply not conducive to their manifestation (manifest needs). I have a need to achieve something new and innovate but I’ve never been given a challenging job to do… 17 II. CONTENT THEORIES B. Learned Needs (McClelland) McClelland’s Learned Needs Theory 3 key needs are learned in childhood and they can be taught (especially nAch) nAch Need for Achievement Need to excel at the task being performed. nAff Need for Affiliation Desire to establish and maintain warm/friendly relations with others. nPow Need for Power Need to control other things – especially people (most important for successful managers) 18 II. CONTENT THEORIES B. Learned Needs (McClelland) Dominant Characteristics Comments Motivator Need for Feels personally responsible to complete Important for jobs that require Achievement assigned task self-motivation and managing (nAch) Likes situations where probablity of success others is moderate. Perform well with minimal Likes regular feeedback on progress supervision – important in many Has need to set and accomplish goals businesses today. Takes calculated risks to accomplish goals Important for success of Often likes to work alone organizations Important for wide span of control Need for Wants to belong to the group Work well in teams but less so in Affiliation (nAff) Wants to be liked (goes along) isolation Favors collaboration vs competition Place in jobs that acquire or offer Doesn’t like risk/uncertainty high levels of interaction with people Are motivated when others depend on them Need for Power Wants to control and influence Seek persons with desire for (nPow) Likes to win 19 social power not personal Most important Enjoys competition (egoistic) power.(two faces of AND YOU ? - CHOOSE 1 OPTION FOR EACH LINE B. Learned Needs (McClelland) A B C When doing a job I need I prefer to work alone and I am uncomfortable when feedback be my own boss forced to work alone After starting a task, I am I enjoy a good argument I go out of my way to make uncomfortable until it is friends with new people finished I work better when there is Status symbols are I am always getting a deadline important to me involved with group projects I work best when there is I would rather give orders I am sensitive to others, some challenge involved than take them especially when they are angry I accept responsibility I am eager to be my own I get personally involved eagerly boss with my superiors I desire to out-perform I am concerned about my I am concerned about being others nAch reputationnPow or position nAff liked and accepted 20 II. CONTENT THEORIES C. Maslow’s Hierarchy of Needs Maslow’s Hierarchy of Needs Human needs are arranged hierarchically. Before one type of need can manifest itself, other needs need to be satisfied. 21 II. CONTENT THEORIES An overriding principle in this theory C. Maslow’s Hierarchy of Needs is that a person’s attention (direction) and energy (intensity) will focus on satisfying the lowest- level need that is not currently satisfied. When lower-level needs are not satisfied, we once again concentrate on that need. As managers, we seek to guide employees to the upper parts of the hierarchy, saitsfying lower needs first then higher ones. You can’t engage a worker in a challenge or new job responsibilities 22 II. CONTENT THEORIES C. Maslow’s Hierarchy of Needs In the workplace : Achievement concerns (autonomy, subject matter expertise) Respect and recognition (perks, job titles) Social concerns (cooperative peers, good boss) Stable work environment (benefits, work safety) Survival issues (salary, stable employment) 23 II. CONTENT THEORIES Maslow : https://www.youtube.com/watch?v=Bw7gG0U6DqM How Maslow’s hierarchy is applied to employees at Wegmans 24 II. CONTENT THEORIES D. Alderfer’s ERG Theory But for Maslow, does interaction with others satisfy our need for acceptance or need for recognition (a higher need) – not very clear. Alderfer extended Herzberg’s approach and compressed Maslow’s five need categories into three and detailed the movement between categories. Existence (E) Relatedness (R) Growth (G) 25 II. CONTENT THEORIES D. Alderfer’s ERG Theory These needs tend to be Where do I satisfied through one’s full involvement in invest energy? work and the work setting. These needs are satisfied through the exchange of thoughts and feelings with other people. These needs are satisfied by material conditions and not through interpersonal relations or personal involvement in the work setting. 26 II. CONTENT THEORIES 4 critical components of the D. Alderfer’s ERG Theory theory 1. Aspiration : by its nature, growth is intriniscally satisfying. Satisfaction 2. Satisfaction progression : as Frustration one level’s needs are met, energy is pointed to the next level (moving upward) (like Maslow) 3. Frustration : failing to meet a need makes it more important – more effort is exerted as we Satisfaction Frustration become frustrated. 4. Frustration regression : if we fail over and over we redirect energy and focus on a lower more concrete and verifiable level 27 II. CONTENT THEORIES What managers can do to support D. Alderfer’s ERG Theory need satisfaction ? 28 II. CONTENT THEORIES What managers can do to support D. Alderfer’s ERG Theory need satisfaction ? 29 II. CONTENT THEORIES D. Alderfer’s ERG Theory If employees are complaining about lack of social activities and bonuses linked to the quality of their work…. What needs are probably satisfied and what needs have yet to be satisfied? Where is motivation lacking? Existence needs? Relatedness needs? Growth needs ? 30 II. CONTENT THEORIES E. Herzberg’s Motivator-Hygiene Theory Jane works as an administrative assistant. Despite her hard work, she feels increasingly unmotivated and frustrated. Her office is cramped with outdated equipment that frequently malfunctions, making her tasks more difficult. Additionally, her salary is lower than the industry standard, and there have been no raises or bonuses in the past two years. To motivate her, her boss has given her challenging tasks and recognized her continued efforts to perform well – but Jane remains unmotivated. WHY ? 31 II. CONTENT THEORIES E. Herzberg’s Motivator-Hygiene Theory 2 sets of needs Motivators (growth needs or “satisfiers”) – relate to job being done and a sense of achievement as a result of performing them. Based on need to grow and self- actualization. These growth needs motivate us to perform well. Hygienes – (“dissatisfiers”) based on need to “avoid pain”. These needs must be met to avoid dissatisfaction and do NOT motivate. Not related to the work being done (content of the work) but are part of job context. 32 II. CONTENT THEORIES E. Herzberg’s Motivator-Hygiene Theory Managing DISSATISFACTION 2 sets of needs is not the same as managing SATISFACTION Motivators (growth needs or “satisfiers”) – relate to job being done and a sense of achievement as a result of performing them. Proper management of Based on need to grow and self- hygiene factors can prevent actualization. These growth needs motivate us to perform employee dissatisfaction, but well. that these factors can not Hygienes – (“dissatisfiers”) based on need to serve as a source of “avoid pain”. These needs must be met to avoid satisfaction or motivation. dissatisfaction and do NOT motivate. Not related to the work being done (content of the Good working conditions, for instance, will work) but are part of job context. keep employees at a job but won’t make 33 them work harder. But poor working conditions, which are job dissatisfiers, II. CONTENT THEORIES E. Herzberg’s Motivator-Hygiene Theory Herzberg’s Job Dissatisfaction Job Satisafction Two-Factor Principles ACTION : Influenced by Improving the Influenced by Hygiene motivator factors Motivator Factors increases job Factors Working satisfaction Achievement conditions ACTION: Recognition Coworker relations Improving the Responsibility Policies & rules hygiene factors Work itself Supervisor quality decreases job Advancement Base wage, salare dissatisfaction Personal Growth EXTRINSIC INTRINSIC FACTORS FACTORS 34 II. CONTENT THEORIES E. Herzberg’s Motivator-Hygiene Theory First, managers should Second, managers address the hygiene should address the factors. motivator factors. Intense dissatisfaction Increase satisfaction to distract from work and motivate high tend to de-motivate performance. 35 II. CONTENT THEORIES Summary McClelland Maslow Alderfer Herzberg Self- Intrinsic Motivation Achievemen Higher t Actualizatio Order n Growth Motivators Needs Power Esteem Affiliation Belonging Relatedness Lower Order Hygiene Safety Factors Needs Existence Physiologica l Extrinsic Motivation 36 III. PROCESS THEORIES never stop daring III. PROCESS THEORIES Why are behaviors initiated ? How do we choose a target? How do we decide on the effort given to achieve the target? 4 major theories (1)Operant conditioning (2)Equity (3)Goal (4)Expectancy. 38 III. PROCESS THEORIES A. Operant Conditioning (Skinner) People will do those things for which they are rewarded and will avoid doing things for which they are punished. This premise is sometimes called the “law of effect.” 39 III. PROCESS THEORIES A. Operant Conditioning (Skinner) General Operant Model: S → R → C Ways to Strengthen the S → R Link 1. S → R → C+ (Positive Reinforcement) S= Stimulus (homework to do (Negative R = Response (action) 2. S → R → C– C = Consequence Reinforcement) 3. S → R → (no C–) (Avoidance Learning) Ways to Weaken the S → R Link 1. S → R → (no C) (Nonreinforcement) 2. S → R → C– (Punishment) 40 III. PROCESS THEORIES Reinforcement occurs when a consequence makes it more likely the response/behavior will be repeated in the future. Positive reinforcement = add something positive Negative reinforcement = take away something negative or unpleasant (ex. reminding someone all the time to do something) Avoidance learning = behave in a way to avoid an undesired consequence (threat of negative consequences) (wake up before alarm) 41 III. PROCESS THEORIES Punishment occurs when a consequence makes it less likely the response/behavior will be repeated in the future. Punishment (but what should I actually do?) Non-reinforcement 42 In one Harris interactive survey, 58 percent of employees admitted to taking home office supplies from their workplaces. Other research studies put that number closer to 75 percent. So why do people steal office supplies ? 43 III. PROCESS THEORIES B. Adam’s Equity Theory Equity theory states that motivation is affected by the outcomes we receive for our inputs compared to the outcomes and inputs of other people. If an employee feels that their contributions and rewards are balanced compared to others, they are likely to feel satisfied and continue performing well. If they feel they are putting in more effort but receiving less in return than others, they may become demotivated, leading to decreased productivity, reduced quality of work, or even a decision to leave the company. 44  III. PROCESS THEORIES B. Adam’s Equity Theory Example : Income /Effort ratio Fair ? Fair ? 45 III. PROCESS THEORIES B. Adam’s Equity Theory Bob, who perceives that he is working harder but being paid less than Amy, might feel a sense of inequity and unfairness. What might he do? 1) Alter his inputs (ex. he works less, puts in less effort) 2) Alter his outcomes (ex. ask for an increase in pay, steal office supplies) 3) Alter Amy’s inputs (ex. tell Amy to « start working harder ! ») 4) Alter Amy’s outcomes (ex. have the boss reduce her pay..) 5) Distort perceptions of inputs or outcomes (Ex. « Amy has worked here longer than me, it’s acceptable she is paid more… ») 6) Choose a different referent other (Ex. « Compared to Jim and Sue, I’m paid well ») 46 WHAT DO YOU THINK? A mid-sized marketing firm "Creative Solutions" has recently lost several key clients, and the industry is facing economic challenges. In face of this top management sets a strategic goal to "increase market share by 20% within the next year." The management team is excited The management team about this ambitious target and hopes to motivate its communicates the goal to all employees in a company-wide employees with this goal. meeting. Progress will be checked quarterly. Do you think it will work? 47 III. PROCESS THEORIES C. Goal Theory (Locke) Goal theory states that people will perform better if they have difficult, specific, accepted performance goals or objectives Locke's research showed that the more difficult and specific a goal is, the harder people tend to work to achieve it. Specific and challenging (but not too challenging) (ex. Try to get 80% right on the quiz) goals led to higher performance than easy, or "do your best," goals. (creates a feeling of accomplishment) 48 III. PROCESS THEORIES C. Goal Theory (Locke) Effective Goal Setting Clarity. Set clear goals that use specific and measurable standards. For example, "reduce job turnover by 15 percent.” Challenge. BUT REALISTIC Commitment. To be effective, your team must understand and agree to the goals – team members are more likely to "buy into" a goal if they have been involved in setting it. Feedback. Feedback gives you the opportunity to clarify people's expectations and adjust the difficulty of their goals. Keep in mind that feedback doesn't have to come from other people. You can check how well you're doing by simply measuring your own progress. Task complexity. Take special care to ensure that work doesn't become too overwhelming when goals or assignments are highly complex. 49 III. PROCESS THEORIES C. Goal Theory (Locke) A mid-sized marketing firm "Creative Solutions" has recently lost several key clients, and the industry is facing economic challenges. In face of this top management sets a strategic goal to "increase market share by 20% within the next year." The management team is excited about this ambitious target and communicates the goal to all employees in a company- wide meeting. Progress will be checked quarterly. 50 SARAH’S PROMOTION Sarah is an experienced project manager at a tech company. A new senior management posit has opened up, and Sarah is considering whether to apply for it. She's reflecting on her chances of getting the promotion and whether it's worth the effort. "If I work really hard on my application and prepare thoroughly for the interview, can I perform well enough to be a strong candidate for the promotion?“ She estimates her chances of performing well to be 70% "If I perform well and show that I'm the best candidate, will the company actually promote me?“ Sarah considers the company’s history. She knows that sometimes internal politics can influence decisions. She estimates the likelihood to getting the promotion to be 50% "If I do get the promotion, will the benefits (like higher salary, prestige, and new responsibilities) be worth the extra stress and longer hours?“ She values the potential raise and the career advancement but is concerned about the increased stress. She weighs the positive and negative and decides that the promotion is moderately 51 valuable, rating it a 7 out of 10 III. PROCESS THEORIES D. Expectancy Theory (Vroom) Expectancy theory posits that we will exert much effort to perform at high levels so that we can obtain valued outcomes. It is the motivation theory that many organizational behavior researchers find most intriguing, in no small part because it is currently also the most comprehensive theory. 52 III. PROCESS THEORIES D. Expectancy Theory (Vroom) EFFORT or PERFORMA BEHAVIOU NCE REWARD R OUTCOME Expectancy Instrumentality Valence Perceived probability that Perceived probability that Value of expected effort will lead good good performance will outcome to the individual performance lead to desired outcomes If I work hard will If I get the job How much do I value get the job done will I be the proposed reward done ? rewarded ? ? MOTIVATION = Expectancy X Instrumentality X Valence 53  IV. THE ROLE OF CORPORATE CULTURE IN EMPLOYEE INVOLVEMENT never stop daring IV. THE ROLE OF CORPORATE CULTURE IN EMPLOYEE INVOLVEMENT A. Defining corporate culture By going to 2 companies in the same sector of activity, which have the same organizational structure and the same size, you will often notice a big difference in the atmosphere, the way in which people interact, etc. Just as each individual has personality traits, a company has a personality called organizational culture. 55 IV. THE ROLE OF CORPORATE CULTURE IN EMPLOYEE INVOLVEMENT A. Defining corporate culture It is the set of professional practices, values, mentalities, behaviors shared by the members of a company and which are oriented towards the achievement of common objectives. 56 IV. THE ROLE OF CORPORATE CULTURE IN EMPLOYEE INVOLVEMENT A. Defining corporate culture The components of culture: BELIEFS MYTHS VALUES SIGNS ROUTINES & & & & STORIES STANDAR SYMBOLS RITUALS DS 57 IV. THE ROLE OF CORPORATE CULTURE IN EMPLOYEE INVOLVEMENT B. The components of corporate culture Myths and stories about the organization and its founders: these Stories (legends) associated with the past are often linked to personalities who have marked the organization and serve to reinforce common values (all employees must take ownership of the company's history). Beliefs, values, standards of behavior: each group constructs a collective vision and rules that apply to everyone. If the group is united, it will know how to deal with any situation. 58 IV. THE ROLE OF CORPORATE CULTURE IN EMPLOYEE INVOLVEMENT B. The components of corporate culture Signs and symbols: they allow members of the organization to be distinguished from those outside it: Ex: clothing, language used, communication style used, layout of premises, logo, etc. Routines and rituals: actions that are repeated and which reinforce the values and objectives of the organization. Ex: Annual or quarterly high masses, holidays or other types of celebrations (hiring, promotion, retirement, etc.). It is a way of showing one's belonging to the organization. 59 IV. THE ROLE OF CORPORATE CULTURE IN EMPLOYEE INVOLVEMENT B. The components of corporate culture Some examples of corporate rites: Way to start the day: conviviality within each department, immediate start-up, debriefing at the start of the day, etc. Break management: à la carte break, ritualized collective breaks (each offers coffee and snacks, etc.). Lunch break: jointly without hierarchical distinction, by affinity group, individual… Ways of communicating: first name, familiarity, kiss, handshake, etc. Way to end the week : systematic meeting, friendly drink… 60 IV. THE ROLE OF CORPORATE CULTURE IN EMPLOYEE INVOLVEMENT B. The components of corporate culture We can add one last element in certain companies: taboos (events from the past that must be avoided because they evoke a failure or a difficult situation). Example: the failure of a product, the name of a colleague who moved to the competition and was brilliantly successful… 61 IV. THE ROLE OF CORPORATE CULTURE IN EMPLOYEE INVOLVEMENT B. The components of corporate culture Corporate culture depends on multiple factors: Company history The personality of the creator The job The size The culture of the country of establishment The culture of its members… 62 IV. THE ROLE OF CORPORATE CULTURE IN EMPLOYEE INVOLVEMENT B. The components of corporate culture The best-known model of organizational culture is that of Edgar Schein (1985). “All the fundamental hypotheses that a given group discovered, invented and developed by learning to resolve problems of adaptation to one's environment and internal integration. These assumptions have been suffi ciently tested to be considered valid and therefore to be taught to new members as the correct way to perceive, to think in relation to these problems.” 63  IV. THE ROLE OF CORPORATE CULTURE IN EMPLOYEE INVOLVEMENT B. The components of corporate culture The « onion » model visible The visible, tangible elements of an organization's culture. Artifacts are what you can ARTIFACTS see, hear, and feel when you first enter an organization. (structure, processes, dress code, logo, rituals,..) ESPOUSED These are the beliefs and values that the VALUES organization explicitly endorses. They are often expressed in official documents, speeches, or in the company's mission and vision statements. ASSUMPTIONS The core beliefs, perceptions, thoughts, and feelings that are deeply embedded in the invisible organizational culture. These assumptions are usually unconscious and taken for granted. 64  IV. THE ROLE OF CORPORATE CULTURE IN EMPLOYEE INVOLVEMENT B. The components of corporate culture The « onion » model visible By strategically managing artifacts, organizations can create an environment ARTIFACTS that supports and enhances motivational strategies. Ex. Collaborative spaces, compensation Employees aresystems, … more motivated when they ESPOUSED VALUES see that the organization genuinely practices what it preaches, rather than just paying lip service to values. Are espoused ASSUMPTIONS values aligned with basic assumptions? Understanding these assumptions helps invisible leaders align their motivational strategies with the underlying cultural values. 65 IV. THE ROLE OF CORPORATE CULTURE IN EMPLOYEE INVOLVEMENT C. The effects of corporate culture Culture can be a source of competitive advantage: Engagement & Motivation COMPAN Reduction of Y divergence CULTURE Conflict reduction & resolution 66 IV. THE ROLE OF CORPORATE CULTURE IN EMPLOYEE INVOLVEMENT C. The effects of corporate culture 1) At the internal level, the culture allows the involvement and motivation of employees: It makes it possible to unite the members of the company within a community without excluding their diversity. It is a factor in homogenizing behavior and involving employees. 67 IV. THE ROLE OF CORPORATE CULTURE IN EMPLOYEE INVOLVEMENT C. The effects of corporate culture 2) Culture reduces divergences and allows for better cohesion through adherence to common values. The company is a coalition of individuals with divergent interests: shareholders, managers, employees, supplier customers ( Cyert and March). However, when stakeholders agree on the values, it is not obligatory for management to formalize everything. Faced with a problem, the actors react in the same way. 68 IV. THE ROLE OF CORPORATE CULTURE IN EMPLOYEE INVOLVEMENT C. The effects of corporate culture 3) Culture reduces conflicts: Culture establishes the basis of power in the organization. It legitimizes its distribution. It establishes the rules of the game , a “social order » which reduces conflicts. 69 IV. THE ROLE OF CORPORATE CULTURE IN EMPLOYEE INVOLVEMENT C. The effects of corporate culture Be careful, however, when the culture is too strong, it can become an obstacle: rigidity of the company, refusal to change, etc. Nokia’s culture was Nokia’s cultural focus on its traditionally focused on existing technologies and its hardware innovation and resistance to adopting new Symbian operating software platforms systems, which were well- contributed to its decline in suited for feature phones. the smartphone market. The The company was slow to company eventually lost its adapt to the smartphone leading position and sold its revolution led by Apple and mobile phone business to Android. 70 Microsoft in 2014. IV. THE ROLE OF CORPORATE CULTURE IN EMPLOYEE INVOLVEMENT C. The effects of corporate culture The French sociologist Michel Crozier shows that corporate culture can become a powerful factor of resistance. We identify 3 main causes of resistance to change: The fear of the Unknown The fear of losing what you have acquired The belief that the change will not benefit the company 71 IV. THE ROLE OF CORPORATE CULTURE IN EMPLOYEE INVOLVEMENT C. The effects of corporate culture There are techniques to reduce resistance: Information The participation The negociation The constraint 72 Merci de votre attention. audencia.com