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Lecture 13

BU398 Lecture 13: Chapter-9

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Jennifer Komar

Chapter 9 – Organizational culture and Ethnical Values Organizational Culture • Social capital – the quality of interactions among people and whether they share a common perspective o High social capital – relationships are based on trust, mutual understandings, and shared norms and values that enables people to cooperate their activities to achieve goals, e.g. having good relationships with customers or suppliers o You can build social capital by being open and honest and getting positive relationships among employees and with outsiders What is Culture? • Culture – set of values, norms, guiding beliefs, and understandings that is shared by members of an organization and is taught to new members • Two levels of culture exists o What you can see - Visible artifacts and observable behaviors, e.g. how people dress and act, and symbols, stories, and ceremonies o What you can’t see - Underlying values, assumptions, beliefs, and thought processes are the true culture that is hidden Emergence and Purpose of Culture • Cultures severs two critical functions in organization : o Internal integration – members develop a collective identify and know how to work together effectively o External adaptation – refers to how organizations meets goals and deals with outsiders, help the organization adapt to the external environment Interpreting Culture/signs of culture • Rites and ceremonies – these are special occasions that reinforce specific values o Types of Rites ▪ Passage – induction and basic training, e.g. Canadian military, helps facilitate transition of persons into social roles and statues that are new for them ▪ Enhancement – annual awards night, helps enhance social identities and increase status of employees ▪ Renewal – organization development activities , helps refurbish social structures and improve organization functioning ▪ Integration – office holiday party, it encourage and revive common feelings that bind members together and commit them to the organization • Stories – based on true events that are frequently shared among organizational employees and told to new employees to inform them about the organization • Symbols – something that represents another thing, e.g. ceremonies, stories, slogans, and rites are all symbols, as they symbolize deeper values of an organization o Can also represent negative elements of an organization culture, e.g. Enron, premium parking spots that cost a lot, shows that symbols were power wealth, and winning at any cost • Language – specific saying, slogan, metaphor, or other form of language to convey special meaning to employees, e.g. “our driving force is people”, this emphasize the importance of treating employees as well as they are expected to treat customer, from Averitt Express a trucking company Organizational Design and Culture • Two specific dimensions to access culture: o The extent to which the competitive environment requires flexibility or stability o The extent to which the organization’s strategic focus and strength are internal or external • Four categories related to the fit among cultural values, strategy, structure, and environment: o Adaptability culture – strategic focus on the external environment through flexibility and change to meet customer needs. This culture encourages entrepreneurial values, norms and beliefs o Mission culture – concerned with serving specific customers in the external environment but in a stable environment is suited to the mission culture, clear vision to achieve goals such as sales growth to help achieve the purpose of the company o Clan culture – primary focus on the involvement and participation of the internal organization’s members and in a flexible environment (rapidly changing environment), this culture focuses on the needs of employees as the route to high performance o Bureaucratic culture – has an internal focus and a consistency orientation for a stable environment, established policies and practices are ways to achieve goals A Culture of Discipline – everyone is focused on doing whatever is needed to keep them successful • Characteristics of a discipline culture: o Level 5 leadership – a person with an almost complete lack of personal ego, coupled with a strong will and ambition for the success of the organization o Right values – leaders build a culture based on values of individual freedom and responsibility as around the framework of the organization purpose, goals, a and systems o Right people in the right jobs – self-disciplined people who embody values that fit the culture o Knowing where to go – understanding these three questions: what they can be the best in the world at, what they are deeply passionate about, and what makes economic sense for the organization Culture Strength and Organizational subcultures • Culture strength – refers to the degree of agreement among members of an organization about the specific values, if little agreement exists, the culture is weak • Subcultures – an office, b
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