ibus 681, dr. yang1 organizational culture chapter 13

IBUS 681, Dr. Yang 1

Organizational Culture

Chapter 13


Learning ObjectivesDefine organizational culture and know why it is importantDistinguish among organizational, national, and global culture and understand the relationships among themEvaluate the culture-free approach to understanding organizational culture


Learning Objectives (cont.)Identify levels of organizational culture

Know what organizational culture does

Discuss the cultural dimensions and typology approaches to understanding organizational culture

Understand how organizational culture can be managed


Organizational CultureA pattern of basic assumptions - invented, discovered, or developed by a given group as it learns to cope with its problems of external adaptation and internal integration

That has worked well enough to be considered valid and, therefore, to be taught to new members as the correct way to perceive, think, and feel in relation to those problems (Schien, 1985).


National and Global CultureRelationship between national and corporate culture is complex:

“Logic of industrialization" may affect all organizations the same way National culture and other elements in an organization's environment may determine internal organizational culture Globalization also affects organizational culture


Henry Ford, founder of the Ford Motor Company said:

Getting together is beginningKeeping together is progressWorking together is success


National and Global CultureOne can not understand what’s going on inside an organizational culture without understanding what exists outside the boundary.

National culture provides basic assumptions that legitimize and guide organizational behavior.Industrialization promotes changes in national culture.Globalization increases awareness of successful practices elsewhere. Modern communication enhances connections among manufacturers, merchants, financiers, consumers, etc. globally.MNCs seek consistency and shape organizational culture on a global basis.


Culture-Free ApproachIt argues that technology, policies, rules, organizational structure, and other variables that contribute to efficiency and effectiveness make national culture irrelevant for management.

McDonald’s fast food service World Disney IKEA

Disney Paris Ears


Understanding Organizational Culture

Organizations are culture free in some respects, but culture bound in many others (Trice & Beyer, 1993). Global, national, and organizational elements interact to influence organizational culture and behavior.


McDonald's RestaurantsMoscow or some others

Types of the restaurant Food adaptationService adaptationPerceptions of jobsWorkplace cultureEmployee commitment

U.S.Fast food life styleConvenience Temporary jobsHigh turnover rateStandard food items


Levels of Organizational Culture

Artifacts Espoused ValuesActual ValuesBasic Underlying Assumptions

Subcultures


Artifacts


Microsoft’s Mission:

To enable people and businesses throughout the world to realize their full potentials


Great People with Great ValuesDelivering on our mission requires great people who are bright, creative, and energetic, and who share the following values:

Integrity and honesty. Passion for customers, partners, and technology. Open and respectful with others and dedicated to making them better. Willingness to take on big challenges and see them through. Self-critical, questioning, and committed to personal excellence and self-improvement. Accountable for commitments, results, and quality to customers, shareholders, partners, and employees.


National Vs. Organizational Culture

National cultureBroader More complexInfluence org. culturePrimary and secondary socialization

Organizational culture

NarrowerManageable Secondary socializationSubcultures


What Organizational Culture DoesFUNCTIONS

Provides an external identityCreates a sense of commitmentActs as source of high reliabilityDefines an interpretive schemeActs as a social control mechanism

FUNCTIONSProvides an external identityCreates a sense of commitmentActs as source of high reliabilityDefines an interpretive schemeActs as a social control mechanism

DYSFUNCTIONSCan create barriers to changeCan create conflict within the organizationSubcultures can change at different rates than other units

DYSFUNCTIONSCan create barriers to changeCan create conflict within the organizationSubcultures can change at different rates than other units


Some Underlying Dimensions of Organizational CultureDimension Questions to be answered

1. The organization’s relationship to its environment

2. The nature of human activity

3. The nature of reality and truth

Does the organization perceive itself to be dominant, submissive, harmonizing, searching out a niche?

Is it the “correct” way for humans to behave to be dominant/proactive, harmonizing, or passive/fatalistic?

How do we define what is true and what is not true; and how is truth ultimately determined both in the physical and social world?


Dimension Questions to be answered

4. The nature of time

5. The nature of human nature

What is our basic orientation in terms of past, present, and future, and what kinds of time units are most relevant for the conduct of daily affairs?

Are humans basically good, neutral, or evil, and is human nature perfectible or fixed?

Some Underlying Dimensions of Organizational Culture (cont.)


Some Underlying Dimensions of Organizational Culture (cont.)

Dimension Questions to be answered

6. The nature of human relationships

7. Homogeneity versus diversity

What is the “correct” way for people to relate to each other, to distribute power and affection? Is life competitive or cooperative? Is the best way to organize society on the basis of individualism or groupism? Is the best authority system autocratic/paternalistic or collegial/participative?

Is the group best off if it is highly diverse or if it is highly homogeneous, and should individuals in a group be encouraged to innovate or conform?


Trompenaars’ Four Corporate Cultures

Family CultureEiffel Tower CultureGuided Missile CultureIncubator Culture

Characteristics of Trompenaars’ Four Types of Corporate Culture

Variables Family Eiffel TowerGuided Missile

Incubator

Relationship between employees

Diffuse relationships to organic whole to which one is bonded

Specific role in mechanical system of required interactions

Specific tasks in cybernetic system targeted upon shared objectives

Diffuse, spontaneous relationships growing out of shared creative process

Attitudes toward authority

Status is ascribed to parent figures who are close and powerful

Status is ascribed to superior roles, which are distant yet powerful

Status is achieved by project group members who contribute to targeted goals

Status is achieved by individuals exemplifying creativity and growth

Ways of thinking and learning

Intuitive, holistic, lateral, and error-correcting

Logical, analytical, vertical, and rationally efficient

Problems centered, professional, practical, cross-disciplinary

Process oriented, creative, an hoc, inspirational

Attitudes towards people

Family members Human resources Specialists and experts

Co-creators

Ways of changing

“Father” changes course

Change rules and procedures

Shift aim as target moves

Improvise and attune

Ways of motivating and rewarding

Intrinsic satisfaction in being loved and respected

Promote to greater position, larger role

Pay or credit for performance and problems solved

Participating in the process of creating new realities

Management style

Management by subjectives

Management by job description

Management by objectives

Management by enthusiasm

Criticism and conflict resolution

Turn other cheeks, save others’ faces, do not lose power game

Criticism is accusation of irrationalism unless there are procedures to arbitrate conflict

Constructive task-related only, then admit error fast and correct

Must improve creative idea, not negate it


Managing and Changing Organizational Culture

Leadership and organizational cultureElements of culture leaders can change

Employee selection criteriaSocialization of new membersMeaning of workArtifacts/surface manifestations of culture


Convergence or Divergence?IndustrializationEmphasis on standardizationOrganizational strategies for managing culture globallyEmphasis on consistency across borders

MNCsGlobal institutions

IndustrializationEmphasis on standardizationOrganizational strategies for managing culture globallyEmphasis on consistency across borders

MNCsGlobal institutions

Use of organizational culture as a competitive toolImpact of diverse national cultures on organizational cultureBenefits in specific and culturally sensitive ways

SeniorityJob security Group versus individual

Use of organizational culture as a competitive toolImpact of diverse national cultures on organizational cultureBenefits in specific and culturally sensitive ways

SeniorityJob security Group versus individual


Implications for ManagersFor managerial effectiveness, it is helpful to analyze organizational cultures in order to coordinate activities or change them;Understand what levels of culture can be influenced and how;Know how national culture and organizational culture can interact to influence management philosophy and employee behaviors.Person-culture fit for individual career success

ibus 681, dr. yang1 organizational culture chapter 13

Documents

organizational culture

yang4 organizational

global culture

culturefree approach

managed slide

yang2 learning objectives

yang3 learning objectives

problems schien