S24 Chapter 14.pdf

Chapter 14 Organizational Culture  Today Grading, administrative Chapter 14 Upcoming ©McGraw-Hill Education.  Chapter 14 - Outline 1. Identifying culture 2. Elements of culture 3. Cul...

Chapter 14 Organizational Culture  Today Grading, administrative Chapter 14 Upcoming ©McGraw-Hill Education.  Chapter 14 - Outline 1. Identifying culture 2. Elements of culture 3. Culture strength and effectiveness 4. Changing culture 5. Culture socialization ©McGraw-Hill Education.  How can we Describe Culture? “We are what we repeatedly do” -Aristotle Culture is a set of values and assumptions that inform consistent, observable patterns of the ‘right way’ to behave in an organization. Influenced by: structure process rewards leadership style ©McGraw-Hill Education.  Some Culture Truths & Challenges It’s part of the company’s DNA; engrained habits, almost impossible to change No consistent interpretation of its meaning Difficult to see our own culture objectively or clearly (enacted values vs espoused values) Cultures have fragments (subcultures, ‘cliques’) ©McGraw-Hill Education. © Clio  How do we Validate Culture? 1. Observation of employees & artifacts 2. Analyzing how decisions are made 3. Debriefing on employee actions ©McGraw-Hill Education.  Elements of Organizational Culture Physical Structures Artifacts of Language organizational Rituals and ceremonies culture Stories and legends ________________ ____________ Conscious beliefs Value judgments about what’s good and bad Implicit mental models Organizational of right behaviour culture ©McGraw-Hill Education. Jump to Appendix 1 long image description  Artifacts: Observable Symbols of Culture Language How employees address each other and outsiders, express emotions, describe stakeholders, etc. Leaders use language to anchor or change culture (e.g. WestJet communication style, J&J ‘urgency’) Rituals (Norms) Programmed routines - Engagement (Walmart greeters, town halls, signage) - Self-Presentation (dress codes) - Decision / work processes (empowerment, oversight, meetings) - Rewards & Celebrations ©McGraw-Hill Education.  Moose Ritual / Artifacts at Galvanize Galvanize employees often utter the phrase “put the moose on the table,” which means that an awkward but necessary topic needs to be discussed. The Vancouver- based software firm even has moose artifacts to remind everyone of this important practice. ©McGraw-Hill Education. ©Reven T.C. Wurman/Alamy  Artifacts Physical Structures Stories & Legends ©McGraw-Hill Education.  Organizational Culture Common Types Org Culture Dimensions Dimension Characteristics Experimenting, opportunity seeking, risk taking, few Innovation rules, low cautiousness Stability Predictability, security, rule-oriented Respect for people Fairness, tolerance Outcome Action oriented, high expectations, results oriented orientation Attention to detail Precise, analytic Team orientation Collaboration, people-oriented Aggressiveness Competitive, low emphasis on social responsibility Source: O’Reilly et al (1991) ©McGraw-Hill Education.  Culture Types: Netflix ©McGraw-Hill Education.  Organizational Subcultures Dominant culture: Values/assumptions shared most consistently and widely. - e.g. Teamwork orientation, Professional/traditional Subcultures: exist in smaller groups/departments throughout the organization Subcultures share core values, but they also take on their own additional characteristics - e.g. marketing teams, sales teams Countercultures are subcultures that oppose aspects of the dominant culture - e.g. ‘meetingless’ departments, asynchronous working ©McGraw-Hill Education.  Organizational Culture & Performance Purpose of Culture Control system: guides employees in how to act Social glue: reduces conflict, builds team cohesion, bond with organization Sense making: explains environment and events happening around them (moderately) Stronger culture can lead to better performance ©McGraw-Hill Education.  Organizational Culture Strength How widely and deeply employees hold the company’s dominant values and assumptions Most employees understand/embrace the culture Institutionalized through artifacts Long-lasting – possibly originate with founder(s) ©McGraw-Hill Education.  Metaphor Exercise: Does Humber College have a culture? ©McGraw-Hill Education.  Culture Effectiveness Model Culture strength advantages depend on: Environment fit Moderate strength Adaptive Functions of Organizational Strong Cultures Outcomes Control system Organizational Social glue performance Sense-making Employee well-being ©McGraw-Hill Education.  Changing/Strengthening Organizational Culture (1 of 3) Jump to Appendix 2 long image description ©McGraw-Hill Education.  Changing/Strengthening Organizational Culture (2 of 3) Founders/leaders communicate & model desired culture Founder’s values/personality Transformational leaders can reshape culture quickly (e.g. Elon Musk / Twitter) Leaders exhibit culture values Align artifacts with desired culture Artifacts keep culture in place Include processes, offices, language, etc ©McGraw-Hill Education.  Changing/Strengthening Organizational Culture (3 of 3) Introduce culturally consistent rewards Rewards are powerful artifacts Support workforce stability and communication High turnover weakens org culture Strong culture depends on visibility, communication Use attraction, selection, and socialization of new employees Recruit and retain for cultural fit Socialization = learn, adapt (values, systems, social processes etc) ©McGraw-Hill Education.  Merging Organizational Cultures 1. Assimilation: Acquired firm staff embrace acquiring culture. 2. Deculturation: Acquiring firm imposes its culture and practices. 3. Integration: Composite culture preserves best of past cultures. 4. Separation: Merged firms keep their own corporate cultures and practices. ©McGraw-Hill Education. ©alexmillos/Shutterstock  Organizational Socialization The process by which individuals learn the values, expected behaviours, and social knowledge necessary to assume their roles in the organization Learning Process Newcomers make sense of the organization’s physical, social, and strategic/cultural dynamics Understand expectations Form relationships Adjustment Process Newcomers adapt to new work roles, team norms, etc. Develop their social/workplace identity ©McGraw-Hill Education.  Stages of Socialization Pre-employment Role Management Stage Encounter Stage Outsider Newcomer Insider Gathering Observing Changing and practising roles and information ‘Reality Checks’ behaviour Forming Testing behaviours Strengthen psychological against relationships contract expectations Resolve conflicts with their non-work life ©McGraw-Hill Education.  Psychological Contracts Individual’s beliefs about the terms and conditions of a reciprocal exchange agreement between employee and employer. Transactional contracts: Short-term economic exchanges (Continuance commitment) Relational contracts: Long-term attachments (Affective commitment) ©McGraw-Hill Education.  Upcoming Review Chapter 14 Group Assignment due August 4 Note the tips given last week (see slides) Next Week Organizational Change – Chapter 15 In-Class Activity 4 – Culture Activity (based on Chapter 14) – course content allowed Final Exam Details ©McGraw-Hill Education.