Section 2.docx

21 Pages
Unlock Document

Human Resources and Organizational Behaviour
HROB 2100
Sara Mann

Section 2: Organizational Culture Chapter 4: Organizational Culture What is Organizational Culture? -culture provides stability to organization & gives employees clear understanding of “way things are done around here” -culture sets tone for how organizations operate and how individuals within organisation interact Organizational culture-pattern of shared values, beliefs & assumptions considered to be appropriate way to think & act in organization -key features of culture: -shared by members of organization -helps members of organization solve & understand things encountered (internally & externally) -assumptions, beliefs, & expectations are taught to new members of organization & strongly influence how people perceive, think, feel & behave within the organization -not every group has culture (high turnover will may not develop culture) Levels of Culture Artifacts- aspects of organizations culture that you see, hear, feel -(two offices with different dress codes, two offices with different wall art paintings/work memos) Beliefs-understanding of how objects & ideas relate to each other Values- stable, long-lasting beliefs about what is important (furniture company promotes corporate values: “demonstrate integrity in all relationships, promote dignity & value of each other, respect environment, support out community & strive for excellence in all we do”) Assumptions-taken-for-granted notions of how something should be Characteristics if Culture -seven primary characteristics that capture organisations culture(based on low-to-high continuum) ● Innovation & Risk Taking- degree employees are encouraged to be innovative & take risks ●Attention to Detail- degree employees are expected to work with precision, analysis & attention to detail ●Outcome Orientation- degree management focuses on results or outcomes, rather than techniques & processes used to achieve these outcomes ●People Orientation- degree management decisions take into consideration effect of outcomes on people in organization ● Team Orientation- degree work activities are organized around teams rather than individuals ●Aggressiveness- degree people are aggressive & competitive rather than easygoing & s supportive ●Stability- degree organizational activities emphasize maintaining status quo in contrast to growth Culture’s Functions -culture can influence ethical behaviour(lower-level employees see manager padding reports, sends message that their firm tolerates dishonesty; firms that record individual sales may encourage unhealthy competition among sales staff) -has boundary-defining role because it creates distinction between one organization and others -conveys sense of identity to organization members -helps create commitment to something larger than individual’s self-interest -enhances stability; social glue that helps hold organization together by providing appropriate standards for what employees should say and do -serves as control mechanism that guides & shapes the attitudes & behaviour of employees, & helps them make sense of the organization Contrasting Organizational Cultures Organization A Organization B -managers must fully document all decisions -management encourages & rewards risk-taking and -creative decisions, change, & risks are not charge encouraged -employees are encouraged to ‘run with’ ideas, & -extensive rules & regulations exist for all failures are treated as learning experiences employees -employees have few rules and regulations to follow -productivity is valued over employee morale -productivity is balanced with treating its people right -employees are encouraged to stay within their -team members are encouraged to interact with people own department at all levels of function -individual effort is encouraged -many rewards are team-based Uniform Cultures -different level or backgrounds in organizations should have the same perception of the culture -subcultures can exist in organizations (different departments have subcultures) Dominant cultures- system of shared meaning that expresses the core values shared by majority of organization members Subcultures-mini-cultures in organization (usually defined by department designations & geographical separation) Core values- primary (dominant) values that are accepted throughout organization Reading Organizations Culture Strong culture- culture in which core values are intensely held & widely shared (members who accept core values, show greater commitment to those values, create stronger culture) *Stories- circulate through organization typically telling about founders, rule breaking, rags-to-riches successes, reductions in workforce relocation of employees, reactions to past mistakes, & organizational coping *Rituals- repetitive sequences of activities that express and reinforce the key values of the organization; what goals are more important; and which people are important, and which ones are expendable (chants) *Material Symbols- convey to employees, customers, & clients who’s important, degree of egalitarianism desired by top management & the kinds of behavior that are appropriate (layout of corporate headquarters, types of cars given to top executives, size of offices, elegance of furnishings, dress code, signs, brochures, advertisements) *Language- many organizations use language as way to identify members of culture or subcultures, by learning the language, members show they accept culture there in -organizations develop unique terms, acronyms, jargon, that often confusing to new members, but soon, over time, becomes fully part of their language Numerous studies have shown that effective leadership occurs in a culture with: -Clearly defined jobs -Communicating and listening -Credibility -Trust developed from honesty and sincerity Creating & Sustaining Organizations Culture -once organizations culture’s established, it rarely fades away The Liabilities of Organizational Culture Culture as a Barrier to Change: -culture’s liability when shared values no longer further organizations effectiveness -(when company goes through rapid change, the organization’s entrenched culture may no longer be appropriate) -employees are less likely to have shared values when organizations environment is dynamic Culture as a Barrier to Diversity -management wants new employees to share core cultural values, but also hire people so they are acknowledged that they support differences in workplace -strong cultures pressure employees to conform, removing unique strengths different backgrounds bring; bad when they support institutional bias or become insensitive to people who are different Culture as a Barrier to Mergers & Acquisitions -while financial statement & product lines have been initial attraction of mergers & acquisitions, whether merger or acquisition works has more to do with how well organizations cultures match up Strategies for Merging Cultures -organizations use several strategies when considering how to merge cultures of two organizations: ●Assimilation- new organization takes culture of one of the merging organizations -works best when one organization has weak culture; -rarely works when culture is imposed on organization ●Separation- organizations stay separate and keep individual culture -works best when organizations have little overlap in industries in which they operate ●Integration- new cultures formed by merging each organizations culture -works best when aspects of each organization’s culture could be improved Bicultural audit- examination of differences between two potential merger partners prior to merger to determine whether the cultures will be able to work together (through interviews, questionnaire, focus groups, differences in values, visions, structure, management practices & behaviours are examined) -can bridge cultural gaps by: -defining structure that is appropriate for both organizations, along with a reorganization plan -identify & implement management style that is appropriate for both organizations -reinforce internal communication to make sure employees are kept aware of changes that will occur -getting agreement on what will be considered in performance evaluations (including expected behaviours & performance criteria) Changing Organizational Culture -changing culture of organization is difficult & requires many other aspects of organization to change at the same time, especially reward structure (changed measured in years) -John Kotter made list of failures that occur when managers try to initiate change: -inability to create sense of urgency about need for change -failure to create coalition for managing change process -absence of vision for change -not effectively communicating vision -not removing obstacles that could impede achievement of vision -failure to provide short-term and achievable goals -tendency to declare victory too soon -not anchoring the changes in organizations culture -two kinds of changes organizations can make to their culture are: 1. Creating an Ethical Culture -content & strength of culture influence ethical climate & ethical behavior of members -organizational culture that’s most likely to shape high ethical standards is one that’s high in risk tolerance, low-moderate in aggressiveness & focuses on means as well as outcomes -practices management can implement to create more ethical culture: -be visible role model- employees look up to top management behavior as benchmark for defining appropriate behavior (when managers are seen taking ethical high rode, they provide positive message for all employees) -communicate ethical training- ethical ambiguities can be minimized be creating & disseminating organizational code of ethics -should state organizations primary values & ethical rules employees are expected to follow -provide ethics training- set up seminars, workshops, & training programs to reinforce organizations standards of conduct, clarify practices that aren’t allowed and address possible ethical dilemmas -visibly reward ethical acts & punish unethical ones- performance appraisals of managers should include a point-by-point evaluation of how their decisions measured against the organization’s code of ethics -appraisals must include means taken to achieve goals as well as the ends themselves -provide protective mechanisms- organization needs to provide formal mechanisms so employees can discuss ethical dilemmas & report unethical behavior without fear of reprimand (may include appointing ethics counselor, ombudsperson, or ethics officer) 2. Creating a Positive Organizational Culture Positive organizational culture- emphasizes building on employee’s strengths, rewards more than punishes, & emphasizes individual vitality & growth positive shows employees how they can capitalize on their strengths Rewarding More Often Than Punishing: -there’s of course time & place for punishment, but also for rewards -many firms use pay & promotion, but forget about power of smaller (cheaper) rewards like praise -many managers don’t praise because they think either employees will coast or think it isn’t valued Emphasizing Vitality & Growth: -employees need to see themselves as more than just tools or parts of the organization -positive culture shows interest in what the employee does to contribute to organizational effectiveness & what the organization does to contribute to employee growth -employees should feel that they are learning and growing on the job Limits of Positive Culture: -not all cultures value being positive as much as US & Canada does -benefits to establishing positive culture, but organization needs to be careful to be objective & not pursue past the point of effectiveness Chapter 5: Decision Making, Creativity, and Ethics How Should Decisions Be Made? Decision- choice made from two or more alternatives -decision making occurs as reaction to problem or opportunity Problem- discrepancy between some current state of affairs & some desired state, requiring consideration of alternative courses of action Opportunity- occurs when something unplanned happens,make thoughts about new ways of proceeding -decision making happens at all levels of organization -top management-determines things such as organizations goals, what products or services to offer, how best to finance operations, where to locate new high-tech research & development facilities -middle & lower management- determines things such as production schedules, select new employees, decide how pay raises are to be allocated Rational Decision Making Process: Rational- choices that are consistent & value-maximising with specified constraints Rational decision-making process- six step decision-making model that describes how individuals should behave in order to maximise some outcome Assumptions of the Decision-Making Model: -problem clarity: problem’s clear & unambiguous ( decision maker is assumed to have complete information regarding decision situation) -known options: assumed decision maker can identify all relevant criteria and can list all the workable alternatives, and aware of all the possible consequences of each alternative -clear preferences: rationality assumes that criteria & alternatives can be ranked & weighted to reflect their importance -constant preferences: assumed that specific decision criteria are constant & that the weights assigned to them are stable over time -no time or cost constraints: decision maker can obtain full information about criteria & alternatives because its assumed there are no time or cost constraints -maximum payoff: decision maker will choose alternative that yields highest perceived value How Individuals Actually Make Decisions -rational model provides fairly accurate description of decision process when decision makers are faced with simple problem with few alternatives -most decisions don’t follow rational decision process because people are usually content to find acceptable or reasonable solutions to their problems rather than optimizing one Bounded Rationality In Considering Alternatives Bounded rationality- limitations on a person’s ability to interpret, process & act on information -difficult for individuals to identify & consider every possible alternative available to them, instead they identify limited list of most conspicuous choices (usually represent familiar criteria & previously tested solutions) -settle on alternative that’s “good enough” & meets acceptable level of performance Satisfice- to provide solution that is both satisfactory & sufficient -(rather than mangers interviewing 10 applicants at once and choosing the best one, they interview one at a time until they find someone that is “good enough”- first candidate who meets minimum criteria for job) Intuition -least rational way of making decision, but doesn’t necessarily make it wrong -can improve decision making Intuitive decision making- subconscious process created out of a person’s many experiences -because so unquantifiable hard to know when hunches are right or wrong Judgment Shortcuts -attempting to make shortcuts in decision making process leads to systematic biases & errors Overconfidence Bias- arises from being far too optimistic about one’s own performance -individuals whose intellectual & interpersonal abilities are weakest are most likely to overestimate their performance & ability -most likely to occur when organizational members are considering issues/problems that are outside their area of expertise Anchoring Bias- tendency to fixate on initial information, from which one then fails to adequately adjust for subsequent information -occurs because mind gives disproportionate amount of emphasis to first information it receives -anytime negotiation takes place, so does anchoring Confirmation Bias- tendency to seek out information that reaffirms past choices & to discount information that contradicts past judgments -we selectively gather information (not objectively as rational decision making process assumes) -tend to accept at face value information that confirms our perceived views (skeptical of those that challenge these views) -information we gather is typically biased toward supporting views we already hold -influences where we go to collect evidence (tend to seek sources most likey to tell us what we want to hear) Availability Bias- tendency to base judgments on information that’s readily available rather than complete data -events that evoke emptions, are vivid, occurred more recently tend to be remembered -tend to overestimate unlikely events (airplane crashes compared with more likely events, car crashes) -explains why managers, when doing performance appraisals, tend to give more weight on recent behaviours of an employee, than those of 6 months ago Escalation of Commitment- increased commitment to a previous decision despite negative information -staying with decision even when there’s clear evidence that it’s wrong -avoid having to admit they made mistake, and hat their initial decision was wrong -many organizations suffer because manager was determined to prove their original decision was right by continuing to commit resources to what was a lost cause from the beginning Randomness Error- tendency of individuals to believe that they can predict the outcome of random events -humans have difficulty dealing with change, most like to believe they have some control over world & our destiny -decision making becomes impaired when wethry to create meaning out of random events -(“I never make decisions on Friday the 13 ) -some decision makers become controlled by their superstitions, making it hard for them to change their routines or objectively process new information Winners Curse- tendency for winning participants in an auction to pay too much for the item they won -some buyers underestimate value of an item & others will overestimate it (winner’s one who overestimates it the most) -unless bidders dramatically undervalue, winner will pay too much (winner’s curse gets stronger when number of bidders increases) Hindsight Bias- tendency to believe falsely, after an outcome of an event is actually known, that one could have accurately predicted that outcome -“what is clear in hindsight, is rarely clear before the fact” -reduces ability to learn from the past, permits us to think that we are better at making predictions than we actually are, and can result in out being more confident about accuracy of future decisions than we have the right to be Improving Decision Making through Knowledge Management Knowledge management (KM)- process of organizing & distributing an organizations collective wisdom so that the right information gets to the right people at the right time -KM provides organization with competitive edge & improved organizational performance because it makes employees smarter -KM is increasingly important today because: -organizations that can quickly & effectively tap into their employees collective experiences and wisdom are more likely to outsmart their competition -as baby-boomers begin to leave workforce, there is an increasing awareness that they represent a wealth of knowledge that will be lost if there are no attempts to capture it -well designed KM system reduces redundancy & makes organization more efficient (when employees in large organization undertake new project, they need to start from scratch. They can access what previous employees have learned and avoid making previous mistakes) -organizations need to develop computer databases of pertinent infor that employees can readily access -organizations need to create culture that promotes, values, & rewards sharing knowledge -people can be reluctant to share information, because knowledge is power, but KM will not work unless culture supports information sharing -organization needs to develop mechanisms to allow employees who have built up valuable expertise & insights to share with others Group Decision Making -many decisions in firms are made by groups, teams, committees “two heads are better than one” Strengths Weaknesses -groups generate more complete information & -time consuming (typically take more time to reach knowledge (by combining recourses of several solution than individuaso not always efficient individuals) -conformity pressures in groups (desire by group -groups bring increased diversity of views members to be accepted and considered asset to group can (opportunity to consider more approaches & alternatives)result in squashing any overt disagreement) -group will almost always outperform individual -can be dominated by one of a few members (groups -groups generate higher-quality decision overall effectiveness will suffer) -group decisions tend to be accurate, creative & lead -group decisions suffer from ambiguous responsibility to increased acceptance of a solution (many decisions (in individual decision, it’s clear who’s accountable for final outcome) fail after there made because people don’t accept them) Group Vs. Individual Decision Making Criteria of Effectiveness Groups Individuals More complete information   Diversity of views Decision quality  Accuracy & Creativity  Degree of acceptance  Speed  Efficiency  Groupthink Groupthink- phenomenon in which group pressures for conformity prevent the group from critically appraising unusual, minority, or unpopular views -deterioration in individuals mental efficiency, reality testing, & moral judgment as result of group pressures -symptoms of groupthink phenomenon: -illusion of invulnerability- group members become overconfident among themselves, allowing them to take extraordinary risks -assumption of morality- group members believe highly in the moral rightness of the group’s objectives & do not feel the need to debate the ethics of their actions -rational resistance- group members rationalise any resistance to the assumptions, members behave so as to reinforce those assumptions continually -peer pressure-group members apply direct pressures on those who momentarily express doubts about any of the groups shared views or who question the validity of arguments supporting the alternative favoured by the majority -minimised doubts- the groups members who have doubts or hold differing points of view seek to avoid deviating from what appears to be group consensus by keeping silent about misgivings & even minimising to themselves the importance of their doubts -illusion of unanimity- if someone does not speak, its assumed the abstention becomes viewed as a yes vote -individuals who hold position that’s different from dominant majority are pressured to suppress, withhold or modify their true feelings & beliefs -to minimize group think, managers can: -monitor group size- more intimidated & hesitant as group size increases, & individuals feel less personal responsibility when groups get larger than 10 -encourage leaders to play an impartial role- leaders should actively seek input from all members & avoid expressing their own opinions, especially in the early stages of deliberation -appoint 1 group member to play devil’s advocate-members role is to overtly challenge majority position & offer divergent perspectives -stimulate active discussion of diverse alternatives to encourage dissenting views & more objective evaluations Groupshift -in some cases, group decisions are more conservative than individual decisions, but more often are riskier Groupshift- phenomenon in which initial positions of individual group members become exaggerated because of the interactions of the group -group discussion leads to significant shift in positions of members toward more extreme position in direction in which they were already leaning before the discussion (conservatives become cautious; aggressive types assume more risk) -discussion creates familiarity among members & as they become more comfortable with each other they become bolder and more daring -group decisions exaggerate initial position of the individual members -shift has been shown more often to be toward greater risk -pre-discussion inclinations help determine whether group will shift toward greater risk or caution Group Decision-Making Techniques -groups can use variety of techniques to stimulate decision making; Interacting Groups: members interact with each other face to face, relying on verbal & nonverbal interaction to communicate to each other -often censor themselves & pressure individual members toward conformity of opinion Brainstorming: idea-generation process that specifically encourages any & all alternatives, while withholding any criticism -meant to overcome pressures for conformity in interacting group’ -encourages any & all alternatives while withholding any criticism of those alternatives -typically group leader states problem and all members say as many alternatives they can in given time period where no criticism is allowed, and all alternatives are recorded for later discussion and analysis -variant is electronic brainstorming -generates ideas, but not efficiently because everyone is talking at once, blocking thought process and impeding the sharing of ideas Nominal Group Techniques: method in which individual members meet face to face to pool their judgments in a systematic but independent fashion - nominal-“in name only” -members are present in meeting, but operated independently -problems presented and: -members meet as group, but before discussion takes place, each member writes down their ideas on the problem -after the silent period, each member presents one idea to the group, until all the ideas have been presented and recorded (no discussion takes place until all ideas have been recorded) -the group then discusses ideas for clarity & evaluates them -each group member silently & independently ranks the ideas and the idea with the highest aggregate ranking determines the final decision Electronic Meetings (computer-assisted gro:members interact on computers, allowing for anonymity of comments & aggregation of votes -most recent approach to decision making -blends nominal group technique with sophisticated computer technology -up to 50 people sit at horseshoe-shaped table with computers in front of them -advantages: anonymity, honesty, speed -participants anonymously type message they want and it flashes on screens of all members, allowing people to be brutally honest without penalty -fast, because chit-chat is eliminated Evaluating Group Effectiveness Type of Group Effectiveness of Criteria Interacting Brainstorming Nominal Electronic Number & Quality of ideas Low Moderate High High Social Pressure High Low Moderate Low Money Costs Low Low Low High Speed
More Less

Related notes for HROB 2100

Log In


Don't have an account?

Join OneClass

Access over 10 million pages of study
documents for 1.3 million courses.

Sign up

Join to view


By registering, I agree to the Terms and Privacy Policies
Already have an account?
Just a few more details

So we can recommend you notes for your school.

Reset Password

Please enter below the email address you registered with and we will send you a link to reset your password.

Add your courses

Get notes from the top students in your class.