October 23 lecture 6.docx

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Western University
Management and Organizational Studies
Management and Organizational Studies 2181A/B

Lecture 6 October 23, 2013 Stanley Milgram Obedience Experiment Yale University – 1960s Social psychologist - Results revealed before S.P.E - Prediction from his students  no more than 3 out of 100 would deliver maximum shock - Blind obedience to authority (how the German’s could help with the extermination of the Jews) - Focused on the darker side of authority - People in state of conflict – lead to stress - 60-65% percent went all the way to the last shock (out of 40 participants – 26) - Many participants became very agitated (as well as the teacher) yet they continued Why such high level of obedience? 1) Physical presence of authority figure dramatically increased compliance (all compliance is conformity, but not all conformity is compliance) 2) Study sponsored by a respectable/authoritative institution  participants believe study “safe” 3) Selection of participants appears random – ignoring the role of bias, preference, treatment, etc. 4) Participants assume competence in those in positions of authority – “they must be legit” 5) The shocks painful… but they were told they wouldn’t be dangerous Application to OB - What can we apply to the workplace? (Milgram and SPE studies) - Leader or management perspective o You know people will follow you so in some circumstances of high stress you take advantage of that (happens in low stress as well) - Employee perspective o Feeling powerless, victimized … no control, abusive situations o Low self-esteem and self-worth– feel like it is the best that they can get so they stay o Begin to believe what others say negatively about them o By complying you can avoid punishment Define Organizational Culture - A system of shared values, beliefs, meaning and common perception held by members of an organization which distinguished it from other organizations - Culture is the soul of the organization – Henry Mintzberg - Gives it life force and holds in together - Corporate DNA Types of Culture - Strong - orgnaizational culture with intense and pervasive beliefs, values and assumptions - Doesn’t matter who you ask in the company, everyone knows about what your about - Weak - organizational culture that has yet to take hold either because its new or weak leadership EBM #1 Strong Cultures 1) An organization does not need to be big to have a strong culture 2) Strong cultures do not necessarily result in blind conformity – innovation (i.e. 3M culture to non- conform) 3) Strong belief that strong cultures are associated with greater success and effectiveness: a. High co-ordination; b. low conflict resolution; c. good financial success Tony Hsieh – Zappos online shoes - Allowing employees to be themselves, creating fun culture in the workplace - Fire or hire people based on if they are complying with values, rather than individual performances - They pay people $3000 to quit and leave – shows how much commitment an employee has Can you see culture? - Typically not written in a policy manual, but just as strong of a factor. There will be evidence around the office in the form of artifacts that act as metaphors for the core values and beliefs of the firm - Last coffee rule: drinking the last coffee, make a new pot Things you can see – material symbols, language, rituals and stories … artifacts that represent what is important Things you can’t – beliefs, values and assumption of the organizational culture Letting the Culture Control Under Such Circumstances - The corporate culture can be an unwritten way to approach vague or ambiguous situations - An informal culture can control behaviour sometimes more than the formal control systems #2 Culture as a Normative Order - Central norms (expectations) that exist in all societies #3 Culture as Promoting Innovation Norms promote creativity: 1. Rewards for change 2. Openness (listen better, open access, open communication and share info) 3. Risk taking (freedom to try things and fail, no punishment for failure) Why is Culture Important? 1. To assist a new strategic direction for the company 2. Culture to gain employee commitment Assisting corporate strategies – as firms grow and strategies change, the culture or social control system also needs to be realigned to reflect the new direction EBM #2 – Gaining employee commitment through culture - Organizational commitment – an individual’s psychological bond to the organization, including a sense of job involvement, loyalty and a belief in the values of the organization - A psychological contract is a person’s commitment to the organization… to stand by it, su
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