organizational culture advanced organization theory thursday, october 22, 2015thursday, october 22,...

Organizational cultureOrganizational culture

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Organizational cultureOrganizational culture

Organizational culture has been defined as patterns of shared values and Organizational culture has been defined as patterns of shared values and beliefs over time which produce behavioral norms that are adopted in beliefs over time which produce behavioral norms that are adopted in solving problems (Owens 1987, Schein 1990). Schein (1985) has also solving problems (Owens 1987, Schein 1990). Schein (1985) has also noted that culture is a body of solutions to problems which have worked noted that culture is a body of solutions to problems which have worked consistently and are therefore taught to new members as the correct way to consistently and are therefore taught to new members as the correct way to perceive, think about, and feel in relation to those problems. In fact, these perceive, think about, and feel in relation to those problems. In fact, these shared philosophies, assumptions, values, expectations, attitudes, and shared philosophies, assumptions, values, expectations, attitudes, and norms bind an organization together (Kilman et al. 1985). Thus, the set of norms bind an organization together (Kilman et al. 1985). Thus, the set of integrated concepts becomes the manner or strategies through which an integrated concepts becomes the manner or strategies through which an organization achieves its specific goals. It can therefore be postulated that organization achieves its specific goals. It can therefore be postulated that an organization's collective culture influences both the attitudes and an organization's collective culture influences both the attitudes and subsequent behaviors of its employees, as well as the level of performance subsequent behaviors of its employees, as well as the level of performance the organization achieves. the organization achieves.


Schein (1990) has noted that culture is thought to Schein (1990) has noted that culture is thought to permeate the organization on at least three permeate the organization on at least three fundamental levels. At the surface, one may fundamental levels. At the surface, one may observe visible artifacts of the organization, that observe visible artifacts of the organization, that is, its structure, technology, rules of conduct, is, its structure, technology, rules of conduct, dress codes, records, physical layout, stories, and dress codes, records, physical layout, stories, and rituals. Beneath this dimension is a second level, rituals. Beneath this dimension is a second level, organizational values, and, finally, underlying organizational values, and, finally, underlying assumptions about the nature of organizational assumptions about the nature of organizational "reality" that are deeper manifestations of values. "reality" that are deeper manifestations of values. Of course, investigating processes of culture at Of course, investigating processes of culture at the latter level is more difficult, as they cannot be the latter level is more difficult, as they cannot be directly observed and measured. directly observed and measured.


Systems of cultureSystems of culture

Allaire and Firsirotu (1984) have also suggested that three interrelated sets of Allaire and Firsirotu (1984) have also suggested that three interrelated sets of systems help identify organizational culturesystems help identify organizational culture

The first is a sociocultural systemThe first is a sociocultural system

organizational belief systemorganizational belief system

collective individualscollective individuals


sociocultural systemsociocultural system

is composed of the perceived functioning of formal organizational is composed of the perceived functioning of formal organizational structures, strategies, policies, and management practices structures, strategies, policies, and management practices relative to the work structure in the organization. Because these relative to the work structure in the organization. Because these activities have been consistently successful, they become activities have been consistently successful, they become regular practice. This aspect of organizational culture reflects regular practice. This aspect of organizational culture reflects the orientation of classical management theory toward the goals the orientation of classical management theory toward the goals of the organization and how tasks must be best organized to of the organization and how tasks must be best organized to meet those goals (Mackenzie 1986, Thompson 1967). Leaders meet those goals (Mackenzie 1986, Thompson 1967). Leaders make important decisions about the work structure of make important decisions about the work structure of organizations that fundamentally shape how workers go about organizations that fundamentally shape how workers go about doing their jobs. In managing the core technology of the doing their jobs. In managing the core technology of the organization, leaders help crystyalize production goals, achieve organization, leaders help crystyalize production goals, achieve more certainty in how to achieve goals, and develop strategies more certainty in how to achieve goals, and develop strategies to organize the work force to translate goals into outcomes to organize the work force to translate goals into outcomes (Bossert et al. 1982, Mackenzie 1986, March and Simon 1959). (Bossert et al. 1982, Mackenzie 1986, March and Simon 1959).


organizational belief systemorganizational belief system

embodies the myths, values, and idealogies of the embodies the myths, values, and idealogies of the organization. Researchers have suggested that developing organization. Researchers have suggested that developing this aspect of culture is a powerful function of this aspect of culture is a powerful function of organizational management. Leaders attempt to clarify organizational management. Leaders attempt to clarify values and to define the organization's purposes. This values and to define the organization's purposes. This domain emphasizes communication of goals and production domain emphasizes communication of goals and production results, both internally and externally (Heck, Larsen, and results, both internally and externally (Heck, Larsen, and Marcoulides 1990; Reynolds 1986). For example, Bolman Marcoulides 1990; Reynolds 1986). For example, Bolman and Deal (1984) have noted the "mythological" roles often and Deal (1984) have noted the "mythological" roles often played by leaders as ceremonial heads of organizations, in played by leaders as ceremonial heads of organizations, in an effort to clarify role responsibilities, teach organizational an effort to clarify role responsibilities, teach organizational values, and promote the organization's mission. These values, and promote the organization's mission. These symbolic behaviors may represent attempts to transmit symbolic behaviors may represent attempts to transmit organizational values at deeper levels of inculturation. organizational values at deeper levels of inculturation.


one co-effect of the socialization of organizational values is one co-effect of the socialization of organizational values is organizational climate, or the perceptions held by organizational climate, or the perceptions held by participants as to the nature of the organization. Employees participants as to the nature of the organization. Employees have a variety of perceptions about how well the work have a variety of perceptions about how well the work environment of the organization is functioning including the environment of the organization is functioning including the quality of social interactions, recognition of their work-quality of social interactions, recognition of their work-related efforts, the types of communication channels open related efforts, the types of communication channels open to them, access to technology and resources, and demands to them, access to technology and resources, and demands or stress placed upon them by the organization. Besides or stress placed upon them by the organization. Besides managing the core technology of the organization, leaders managing the core technology of the organization, leaders also may have some impact on building a productive also may have some impact on building a productive organizational climate through the emphasis of particular organizational climate through the emphasis of particular sets of organizational values, and the amount of effort sets of organizational values, and the amount of effort expended in this domain is predictive of organizational expended in this domain is predictive of organizational outcomes (e.g., Heck et al. 1990, Owens 1987). Part of the outcomes (e.g., Heck et al. 1990, Owens 1987). Part of the leader's role in managing this subsystem may also include leader's role in managing this subsystem may also include "buffering" the organization from outside influences, so that "buffering" the organization from outside influences, so that goals may be attained and input from the environment is goals may be attained and input from the environment is channeled constructively. channeled constructively.


collective individualscollective individuals

The last domain of culture suggested by Allaire and Firsirotu (1984) The last domain of culture suggested by Allaire and Firsirotu (1984) is the collective individuals, with their unique experiences, belief is the collective individuals, with their unique experiences, belief systems, goals, and personalities. While such attitudes and values systems, goals, and personalities. While such attitudes and values may be at least partially shaped by the organization's belief may be at least partially shaped by the organization's belief system, individuals may be thought of as possessing a wide range system, individuals may be thought of as possessing a wide range

of perceptions about social, political, and work-related issues. Though of perceptions about social, political, and work-related issues. Though the goal is to socialize employees to perpetuate the organizational the goal is to socialize employees to perpetuate the organizational culture, the process does not always have uniform effects on culture, the process does not always have uniform effects on individuals. Fuller et al's (1982) concept of organizational efficacy individuals. Fuller et al's (1982) concept of organizational efficacy further suggests that management behavior may to some extent be further suggests that management behavior may to some extent be

constrained by the often divergent goals, attitudes, and decisions of constrained by the often divergent goals, attitudes, and decisions of individual workers. The attitudes and values of employees individual workers. The attitudes and values of employees individually, as well as about organizational climate, therefore, may individually, as well as about organizational climate, therefore, may be important variables that affect organizational performance. be important variables that affect organizational performance.


Dimensions of cultureDimensions of culture

power Distancepower DistanceUncertainty AvoidanceUncertainty Avoidance Individualism, CollectivismIndividualism, CollectivismMasculinity and its opposite pole Masculinity and its opposite pole

FemininityFemininity


power Distancepower Distance

can be defined as the degree of can be defined as the degree of inequality among people which the inequality among people which the population of a country considers as population of a country considers as normal: from relatively equal (that is, normal: from relatively equal (that is, small power distance) to extremely small power distance) to extremely unequal (large power distance)unequal (large power distance)


Uncertainty AvoidanceUncertainty Avoidance

it can be defined as the degree to which people in a country prefer it can be defined as the degree to which people in a country prefer structured over unstructured situations. Structured situations are structured over unstructured situations. Structured situations are those in which there are clear rules as to how one should those in which there are clear rules as to how one should behave. These rules can be written down, but they can also been behave. These rules can be written down, but they can also been unwritten and imposed by tradition. In countries which score unwritten and imposed by tradition. In countries which score high on uncertainty avoidance, people tend to show more high on uncertainty avoidance, people tend to show more nervous energy, while in countries which score low, people are nervous energy, while in countries which score low, people are more easygoing.more easygoing.

A (national) society with strong uncertainty avoidance can be A (national) society with strong uncertainty avoidance can be called rigid; one with weak uncertainty avoidance, flexible. One called rigid; one with weak uncertainty avoidance, flexible. One way of way of

describing countries where uncertainty avoidance is strong, is to describing countries where uncertainty avoidance is strong, is to say that in these countries a feeling prevails of "what is different, say that in these countries a feeling prevails of "what is different, is dangerous." In weak uncertainty avoidance societies, the is dangerous." In weak uncertainty avoidance societies, the feeling would rather be "what is different, is curious".feeling would rather be "what is different, is curious".


Individualism, CollectivismIndividualism, Collectivism

Individualism, is the degree to which people in a country prefer Individualism, is the degree to which people in a country prefer to act as individuals rather than as members of groups. The to act as individuals rather than as members of groups. The opposite of individualism can be called Collectivism, so opposite of individualism can be called Collectivism, so collectivism is low individualism. In collectivist societies a collectivism is low individualism. In collectivist societies a child learns to respect the group to which it belongs, usually child learns to respect the group to which it belongs, usually the family, and to differentiate between in-group members the family, and to differentiate between in-group members and out-group members (that is, all other people). When and out-group members (that is, all other people). When children grow up they remain members of their group, and children grow up they remain members of their group, and they expect the group to protect them when they are in they expect the group to protect them when they are in trouble. In return, they have to remain loyal to their group trouble. In return, they have to remain loyal to their group throughout life. In individualist societies, a child learns very throughout life. In individualist societies, a child learns very early to think of itself as "I" instead of as part of "we". It early to think of itself as "I" instead of as part of "we". It expects one day to have to stand on its own feet and not get expects one day to have to stand on its own feet and not get protection from its group anymore; and therefore it also does protection from its group anymore; and therefore it also does not feel a need for strong loyalty. not feel a need for strong loyalty.


Masculinity and FemininityMasculinity and Femininity

is the degree to which values like assertiveness, performance, success and is the degree to which values like assertiveness, performance, success and competition, which in nearly all societies are associated with the role of men, competition, which in nearly all societies are associated with the role of men, prevail over values like the quality of life, maintaining warm personal prevail over values like the quality of life, maintaining warm personal relationships, service, care for the weak, and solidarity, which in nearly all societies relationships, service, care for the weak, and solidarity, which in nearly all societies are more associated with the role of women. Women's roles differ from men's roles are more associated with the role of women. Women's roles differ from men's roles in all countries; but in some societies, the differences are larger than in others. If in all countries; but in some societies, the differences are larger than in others. If the differences are large, the dominant values are "masculine," and the society can the differences are large, the dominant values are "masculine," and the society can be called "tough" to its people: it becomes a performance society. In a masculine be called "tough" to its people: it becomes a performance society. In a masculine society, even the women have fairly tough values, but not as much as the men. If in society, even the women have fairly tough values, but not as much as the men. If in a country the differences between women's roles and men's roles are relatively a country the differences between women's roles and men's roles are relatively small, the dominant values are more "feminine," and the society is more "tender" to small, the dominant values are more "feminine," and the society is more "tender" to its people: it becomes a welfare society. In a feminine culture, even the men have its people: it becomes a welfare society. In a feminine culture, even the men have fairly tender values. One consequence of the fact that in masculine countries the fairly tender values. One consequence of the fact that in masculine countries the values of men and women are more different than in feminine countries, is that values of men and women are more different than in feminine countries, is that women's values differ less across countries than men's values. women's values differ less across countries than men's values.


Culture and organizational modelsCulture and organizational models


From the four dimensions of national cultures Power Distance From the four dimensions of national cultures Power Distance and Uncertainty Avoidance affect both the way in which and Uncertainty Avoidance affect both the way in which people organize themselves and the way in which they write people organize themselves and the way in which they write about organizing. The two dimensions cover the two crucial about organizing. The two dimensions cover the two crucial questions which have to be answered in any effort at questions which have to be answered in any effort at organizing. Power Distance deals with who will decide what; organizing. Power Distance deals with who will decide what; Uncertainty Avoidance with establishing predictability of Uncertainty Avoidance with establishing predictability of outcomes, with the need for structures and rules. outcomes, with the need for structures and rules.


Cultures and Organization Theories Cultures and Organization Theories

Not only the people within organizations, but also those writing about Not only the people within organizations, but also those writing about organizing are children of a culture; they grew up in families, went to organizing are children of a culture; they grew up in families, went to schools, and worked for employers. Their experiences represent the schools, and worked for employers. Their experiences represent the material on which their thinking and writing has been based. As stated material on which their thinking and writing has been based. As stated earlier, organization theorists are as perfectly human and as culturally earlier, organization theorists are as perfectly human and as culturally biased as other mortals. biased as other mortals.


Pyramid : FayolPyramid : Fayol

In Fayol's conception the authority is both in the In Fayol's conception the authority is both in the person and in the rules (the statute). We person and in the rules (the statute). We recognize the model of the organization as a recognize the model of the organization as a pyramid of people with both personal power pyramid of people with both personal power and formal rules as principles of coordination.and formal rules as principles of coordination.


Machine : WeberMachine : Weber

Max Weber (1864-1920) was a German academic with a Max Weber (1864-1920) was a German academic with a university training in law and some years' experience as a civil university training in law and some years' experience as a civil servant. He became a professor of economics and a founder of servant. He became a professor of economics and a founder of German sociology. In his own design for an organization German sociology. In his own design for an organization Weber describes the bureaucracy. The word nowadays has a Weber describes the bureaucracy. The word nowadays has a distinctly negative connotation, but to Weber it represented the distinctly negative connotation, but to Weber it represented the ideal type for any large organization. In Weber's conception ideal type for any large organization. In Weber's conception the real authority is in the rules. The power of the "officials" is the real authority is in the rules. The power of the "officials" is strictly delimited by these rules. We recognize the model of strictly delimited by these rules. We recognize the model of the organization as a well-oiled machine which runs according the organization as a well-oiled machine which runs according to the rules.to the rules.


Market : TaylorMarket : Taylor

Frederick Winslow Taylor ( 1856-1915) was an American engineer who, Frederick Winslow Taylor ( 1856-1915) was an American engineer who, contrary to Fayol, had started his career in industry as a worker. He contrary to Fayol, had started his career in industry as a worker. He attained his academic qualifications through evening studies. From Chief attained his academic qualifications through evening studies. From Chief Engineer in a steel company he became one of the first management Engineer in a steel company he became one of the first management consultants. Taylor was not really concerned with the issue of authority at consultants. Taylor was not really concerned with the issue of authority at all; his focus was on efficiency. all; his focus was on efficiency.


In the conception of Taylor and Follett the authority is In the conception of Taylor and Follett the authority is neither in the person nor in the rules, butneither in the person nor in the rules, but,, as Follett as Follett puts it, in the situation. We recognize the model of puts it, in the situation. We recognize the model of the organization as a market, in which market the organization as a market, in which market conditions dictate what will happen.conditions dictate what will happen.


Family : Sun yat -senFamily : Sun yat -sen

Sun Yat-sen (1866-1925) is a scholar from the fourth quadrant of the Power Sun Yat-sen (1866-1925) is a scholar from the fourth quadrant of the Power Distance X Uncertainty Avoidance matrix, from China. He received a Distance X Uncertainty Avoidance matrix, from China. He received a Western education in Hawaii and Hong Kong and became a political Western education in Hawaii and Hong Kong and became a political revolutionary. As China started industrialization much later than the West revolutionary. As China started industrialization much later than the West there is no atheorist of industrial organization contemporary with Fayol, there is no atheorist of industrial organization contemporary with Fayol, Weber, and Taylor. However, Sun was concerned with organization, albeit Weber, and Taylor. However, Sun was concerned with organization, albeit political. He wanted to replace the ailing government of the Manchu political. He wanted to replace the ailing government of the Manchu emperors by a modern Chinese state. He eventually became for a short emperors by a modern Chinese state. He eventually became for a short period nominally the first President of the Chinese Republic.period nominally the first President of the Chinese Republic.



Sun's design for a Chinese form of government represents an integration of Western and traditional Chinese elements. From the West, he introduced the "Trias Politica": the Executive, Legislative, and Judicial branches. However, unlike in the West, all three are placed under the authority of the President. Two more Branches are added, both derived from Chinese tradition and bringing the total up to five: the Examination Branch (determining access to the Civil Service) and the Control Branch, supposed to audit the government. This remarkable mix of two systems is formally the basis of the present government structure of Taiwan, which has inherited Sun's ideas through the Kuomintang party. It stresses the authority of the President (large Power Distance): the legislative and judicial powers, which in the West are meant to guarantee Government by Law, are made dependent on the ruler and paralleled by the examination and control powers which are based on Government of Man (weak Uncertainty Avoidance).

Organizational cultures and performanceOrganizational cultures and performance

Organization structureOrganization structure

This construct reflects the structure and operational processes This construct reflects the structure and operational processes of an organization. the construct includes the relative size of an organization. the construct includes the relative size and complexity of the administrative hierarchy, as well as and complexity of the administrative hierarchy, as well as whether the organization is primarily manufacturing or whether the organization is primarily manufacturing or service-oriented. The construct is measured by the service-oriented. The construct is measured by the complexity evident in the organization's resource and complexity evident in the organization's resource and communication flow patterns (XI: Complexity), the extent of communication flow patterns (XI: Complexity), the extent of breadth and depth evident in the organization's hierarchy breadth and depth evident in the organization's hierarchy (X2: Sophistication), and the relative focus of the (X2: Sophistication), and the relative focus of the organization with respect to its output (X3:Product/Service organization with respect to its output (X3:Product/Service Line).Line).


Task organizationTask organization

This construct represents the typical strategies, policies, and actions used by This construct represents the typical strategies, policies, and actions used by the organization in achieving its production goals. The construct is the organization in achieving its production goals. The construct is measured by the diversity and intensity of methods used in selecting new measured by the diversity and intensity of methods used in selecting new employees (Yl: Selection), the quality and diversity of methods used in employees (Yl: Selection), the quality and diversity of methods used in judging employee performance (Y2: Evaluation), the propriety of criteria judging employee performance (Y2: Evaluation), the propriety of criteria and practices for renumeration (Y3: Compensation), the extent that and practices for renumeration (Y3: Compensation), the extent that members are dedicated to performing their organizational goales (Y4: members are dedicated to performing their organizational goales (Y4: Performance), the extent that managers take personal interest in the welfare Performance), the extent that managers take personal interest in the welfare and performance of their employees (YS: Mentoring) and utilize effective and performance of their employees (YS: Mentoring) and utilize effective methods of selecting decision-making alternatives (Y6: Decision Making), methods of selecting decision-making alternatives (Y6: Decision Making),


Organization climateOrganization climate

This construct is described by the perceptions of workers about a variety of This construct is described by the perceptions of workers about a variety of conditions concerning the work environment. It is measured by the conditions concerning the work environment. It is measured by the awareness among employees of the nature of the organization's output as a awareness among employees of the nature of the organization's output as a blend of product and service (Y8: Industry Role), the opinion among blend of product and service (Y8: Industry Role), the opinion among employees of the ease with which communications and resources are employees of the ease with which communications and resources are transmitted among the organization's elements (Y9: Flow Mechanisms), transmitted among the organization's elements (Y9: Flow Mechanisms), the perceptions among employees of the quality of interactions and the perceptions among employees of the quality of interactions and recognition within and across organizational levels, as well as how the recognition within and across organizational levels, as well as how the needs of individuals are a concern to the organization (Y10: Organizational needs of individuals are a concern to the organization (Y10: Organizational Life), the awareness among employees of the organization's use of Life), the awareness among employees of the organization's use of available technology and adoption of new ideas (Y11: Technology), and available technology and adoption of new ideas (Y11: Technology), and the perceptions of how much the organization exerts pressures on the perceptions of how much the organization exerts pressures on individuals yet is sensitive to the effect of stress (Y12: Stress).individuals yet is sensitive to the effect of stress (Y12: Stress).


Organization valuesOrganization values

This latent variable describes the principles, idealogies, and values that an This latent variable describes the principles, idealogies, and values that an organization holds as desirable in the practice of serving its clients. It is organization holds as desirable in the practice of serving its clients. It is measured by the emphasis the organization places on risk-taking, and its measured by the emphasis the organization places on risk-taking, and its acceptance of occasional failure as a result (X4: Risk), the emphasis the acceptance of occasional failure as a result (X4: Risk), the emphasis the organization places on protecting its employees in the workplace (XS: organization places on protecting its employees in the workplace (XS: Safety), the emphasis the organization places on productivity and Safety), the emphasis the organization places on productivity and efficiency (X6: Efficiency), on integrity and orderliness of performance efficiency (X6: Efficiency), on integrity and orderliness of performance (X7: Professionalism), on rapid response to expanding market (X7: Professionalism), on rapid response to expanding market opportunities, advertising, public image, and community service opportunities, advertising, public image, and community service (X8:Marketing & Image), and on creating new outputs and improving (X8:Marketing & Image), and on creating new outputs and improving existing ones (X9: Research & Development).existing ones (X9: Research & Development).


Employee attitudesEmployee attitudes

This construct reflects the beliefs of employees about a variety of issues This construct reflects the beliefs of employees about a variety of issues related to social, political and organizational concerns, some of which may related to social, political and organizational concerns, some of which may be influenced by the organization and some of which may be separately be influenced by the organization and some of which may be separately determined.regard it is measured by the extent that employees resent recent determined.regard it is measured by the extent that employees resent recent organizational policies in acceptance of minorities (Y13: organizational policies in acceptance of minorities (Y13: Prejudice/Tolerance), regard nationalism as important (Y14: Nationalism), Prejudice/Tolerance), regard nationalism as important (Y14: Nationalism), regard common courtesy and punctuality as important work attributes regard common courtesy and punctuality as important work attributes (Y15:Social Amenities), regard dedication and commitment to the (Y15:Social Amenities), regard dedication and commitment to the organization as important (Y16: Commitment), and the extent to which organization as important (Y16: Commitment), and the extent to which employees perceive that management involves them in the decision-employees perceive that management involves them in the decision-making process (Y 17: Involvement).making process (Y 17: Involvement).


Organization performanceOrganization performance

This construct reflects the extent of goal achievement in the organization's This construct reflects the extent of goal achievement in the organization's workforce, capital, marketing, and fiscal matters. It is measured by the workforce, capital, marketing, and fiscal matters. It is measured by the extent of sales fulfillment, as measured by gross revenue relative to the extent of sales fulfillment, as measured by gross revenue relative to the value of the product (or service) line (Y18: Volume), the extent of value of the product (or service) line (Y18: Volume), the extent of penetration into the organization's potential customer base (Y19: Share), penetration into the organization's potential customer base (Y19: Share), the extent of revenue surplus over expense resulting from organizational the extent of revenue surplus over expense resulting from organizational operations (Y20: Profit), and the extent of surplus in relation to risk, as operations (Y20: Profit), and the extent of surplus in relation to risk, as measured by gross profit relative to assets and equity invested (Y21: measured by gross profit relative to assets and equity invested (Y21: Return).Return).


organizational culture advanced organization theory thursday, october 22, 2015thursday, october 22,...

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