Organization Culture and Development Chapter 19

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Organization Culture and DevelopmentChapter 19

• MGMT 3140
• Prof. T. A. Sgritta

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Overview Organization Culture and Development

• Determining organization
• Understanding culture
• Managing culture
• Organization development

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Opening Comments

• Relax, this isnt brain surgery.
• Education reimbursements
• War room

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Organizational Culture

• The informal set of values, norms, and beliefs
  that control the way people and groups in an
  organization interact with each other and with
  people outside the organization.

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External Adaptation

• Employee understanding of the real mission
• Employees role in the organization
• 3M corporate example

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How 3M Built a Culture for Innovation

• How does 3Ms culture affect creativity?
• Cultural values and norms
• Empowerment
• Recognition
• 15 of time for personal projects
• Failure is not a bad word

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Internal Integration

• Norms required to be a member
• Developing acceptable behavior
• Allocation of power and status
• Communications and guidelines for friendship

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Building Blocks of Organizational Culture

• Characteristics of people within the organization
• Organizational ethics
• Employment relationship
• Organizational structure
• National culture

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What are Organizational Values?

• Guiding principles people use to determine which
  types of behaviors, events, situations, and
  outcomes are desirable or undesirable
• Terminal
• Instrumental

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Terminal and Instrumental Values

• Terminal
• Quality
• Responsibility
• Innovativeness
• Excellence
• Economy
• Morality
• Profitability

• Instrumental
• Working hard
• Respecting traditions
• Respecting authority
• Being conservative
• Being frugal
• Being creative
• Being honest

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Sources of Values

• The founder of the organization and his or her
  personal values and beliefs have a substantial
  influence on an organizations culture and the
  norms, stories, myths, and legends that develop
  in a company.
• Ethical values are the moral values and norms
  that establish the appropriate way for an
  organization and its members to deal with each
  other and with those outside the organization.

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Other Cultural Considerations

• Subcultures
• Counterculture
• Local culture (status)
• Culture of diversity
• Mergers (including mergers of equals

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Figure Ways of Transmitting Organizational Culture
Formal socialization practices
Ceremonial Rites and Ceremonies
The organizational language
Employees learn through
Signs, symbols, stories
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Hofstedes Model of National Culture

• Individualism vs. Collectivism
• Power Distance
• Achievement vs. Nurturing Orientation
• Uncertainty Avoidance
• Long-term vs. Short-term Orientation

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Individualism vs. Collectivism

• Individualism
• Individual achievement
• Freedom
• Competition
• Example
• United States

• Collectivism
• Group harmony
• Cohesiveness
• Consensus
• Cooperation
• Example
• Japan

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Power Distance

• High
• Inequalities exist
• Gap between rich and poor
• Example
• Guatemala
• Malaysia

• Low
• Social welfare programs reduce gaps
• Example
• France
• Germany

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Power Distance Evidence

• Tax structure
• Income
• Property
• Inheritance
• Titles
• Communication (business, personal)

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Achievement vs. Nurturing Orientation

• Achievement
• Assertiveness
• Performance
• Success
• Competition
• Results-oriented
• Example
• Japan
• United States

• Nurturing
• Quality of life
• warm personal relationships
• Service
• Caring
• Example
• Denmark
• Sweden

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Uncertainty Avoidance

• Low
• Easygoing
• Value diversity
• Tolerant of differences
• Example
• United States
• Hong Kong

• High
• Rigid
• Intolerant
• Conformity
• Structure
• Example
• Japan

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Long-Term vs. Short-Term Orientation

• Long-term
• Thrift
• Persistence
• High savings rate
• Patience
• Example
• Japan
• Hong Kong

• Short-term
• Personal stability
• Happiness
• Living in the present
• Example
• United States
• France

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Culture Dimensions
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Work Force Differences

• Expatriates
• Foreign nationals
• Stability of workforce
• Labor relations
• Non-programmed decision policy

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Global Businesses

• Shoes
• American watches

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Global Strategy and Structure

• One of the main challenges facing global
  organizations is the tension between
  globalization (the need to view the world as a
  single market) and customization (the need to be
  responsive to consumer tastes in individual
  countries).
• Strategies organizations have adopted to address
  this challenge include
• International Strategy
• Multidomestic Strategy
• Transnational Strategy

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Global Intelligence

• Where do you go to find information on another
  country?
• What information do you need?

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Managing Organizational Culture

• Tough to do!
• Management philosophy

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Organizational Development

• A series of behavioral science techniques and
  methods that managers can use in their action
  research program to increase the adaptability of
  their organization and its problem solving
  capabilities.

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Organization Development Assumptions

• Individual
• Group
• Organization

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Organization Development Principles

• Outcome goals
• Process goals
• Empowerment and management acceptance of
  empowerment

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Action Research

• A strategy for generating and acquiring
  knowledge (data) that managers can use to define
  an organizations desired future state and to
  plan a change program that allows the
  organization to reach that state.

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Action Research
Insert Figure 19.3 here
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O.D. Techniques to Deal with Resistance to Change

• Education and Communication
• Participation and Empowerment
• Facilitation
• Bargaining and Negotiation
• Manipulation
• Coercion

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OD Organization Interventions to Promote Change

• Survey feedback
• Confrontation meetings
• Structural redesign
• Collateral organization

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OD Group Interventions to Promote Change

• Team building
• Process consultation
• Intergroup team building

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OD Individual Interventions to Promote Change

• \Role negotiation
• Job redesign
• Career planning