MGT Chapter 14

Organizational culture operates on three levels

(1) observable artifacts; (2) espoused values; and (3) basic underlying assumptions.

Organizational culture

the set of shared, taken-for-granted implicit assumptions that a group holds and that determines how it perceives, thinks about, and reacts to its various environments.

Organizational culture influences

the type of organizational structure adopted by a company and a host of internal processes implemented in pursuit of organizational goals

Four important characteristics of organizational culture

(1) it is a shared concept; (2) it is learned over time; (3) it influences our behavior at work;(4) it impacts outcomes at multiple levels.

Five elements drive organizational culture

1) the founder's values; (2) the industry and business environment; (3) the national culture; (4) the organization's vision and strategies; and (5) the behavior of leaders.

Four truths about culture change

1.Leaders are the architects and developers of organizational change. 2.Changing culture starts with one of the three levels of organizational culture: artifacts, espoused values, basic underlying assumptions. 3.Consider how closely the current change aligns with the organization's vision and strategic plan. 4.Use a structured approach when implementing culture change.

Outcomes Associated with Organizational Culture

Organizational culture is related to measures of organizational effectiveness. Employees are more satisfied and committed to organizations with clan cultures. Innovation and quality can be increased by building characteristics associated with clan, adhocracy, and market cultures. Financial performance is not strongly related to organizational culture. Market cultures tend to have more positive organizational outcomes.

organizational socialization

The process by which a person learns the values, norms, and required behaviors which permit them to participate as a member of an organization

Sustainability

a company's ability to make a profit without sacrificing the resources of its people, the community, and the planet

Vision

a long-term goal that describes what an organization wants to become

Organizational structure and internal processes then affect

a variety of group and social processes, which impact employees' work attitudes and behaviors and a variety of organizational outcomes.

Espoused values

the explicitly stated values and norms that are preferred by an organization

Strategic plan

outlines an organization's long-term goals and the actions necessary to achieve those goals.

Jane works in an organization where quality and efficiency are highly valued. This organization's culture is likely A.hierarchy. B.adhocracy. C.goal-driven. D.clan. E.market.

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Which level of organizational culture is the hardest to change? A.artifacts B.transactional C.enacted values D.espoused values E.basic underlying assumptions

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Four Functions of Organizational Culture

1. Establishes organizational identity. 2. Encourages collective commitment. 3. Ensures social system stability, which reflects the extent to which the work environment is perceived as positive and reinforcing, and the extent to which conflict and change are effectively managed. 4. Acts as sense-making device, by helping members make sense of their surroundings by helping employees understand why the organization does what it does and how it intends to accomplish its long-term goals.

Subcultures

Often not a single homogeneous culture Rather, multiple subcultures that either intensify the existing cultural understanding and practices or diverge from them

The three-phase model of organizational socialization

Anticipatory socialization Encounter Change and acquisition

What research tells us

Effective onboarding programs result in increased retention, productivity, and rates of task completion for new hires. Many organizations use socialization tactics to reinforce a culture that promotes ethical behavior. Managers need to help new hires integrate with the culture to overcome stress associated with a new environment. Support for the stage model is mixed, different techniques are appropriate for different people at different times. Managers should pay attention to the socialization of diverse employees

Phase 2: Encounter

Employees come to learn what the organization is really like. Organizations use onboarding programs.

Phase 3: Change and acquisition

Employees master important tasks and roles and adjust to their group's values and norms.

Subcultures often form around

Functional or occupational groups or work roles Divisions or departments Geographical areas Products, markets, technology Levels of management

Level 2: Espoused Values

It is important to distinguish between values that are espoused versus those that are enacted.

Phase 1: Anticipatory socialization

Occurs before an individual actually joins an organization Information learned about careers and organizations Learned from: Current employees Social media Internet

More on Espoused values

generally established by the founder of a new or small company and by the top management team in a larger organization. represent aspirations that are explicitly communicated to employees, managers hope that those values will directly influence employee behavior, but this does not always happen

Realistic job previews

mitigate unrealistic expectations formed during this phase Higher performance Lower quit rates

More on Artifacts

most visible level of culture and include such things as acronyms, manner of dress, awards, myths and stories told about the organization, published lists of values, observable rituals and ceremonies, special parking spaces, decorations, and so on. Easier to change than the less visible aspects of organizational culture.

Enacted values

the values and norms that actually are exhibited or converted into employee behavior

Level 3: Basic Underlying Assumptions

organizational values that have become so taken for granted over time that they become assumptions that guide organizational behavior.

Level 1: Observable Artifacts Artifacts:

physical manifestations of an organization's culture

Competing values framework (CVF):

provides a practical way for managers to understand, measure, and change organizational culture.

More on Basic Underlying Assumptions

represent deep-seated beliefs that employees have about their company and thus constitute the core of organizational culture. highly resistant to change More companies have basic underlying assumptions about sustainability.

More on Enacted values

represent the values that employees ascribe to an organization based on their observations of what occurs on a daily basis. It is important for managers to reduce gaps between espoused and enacted values because they can significantly influence employee attitudes and organizational performance.

The CVF indicates

that organizations vary along two fundamental dimensions or axes: The first dimension is the extent to which an organization focuses its attention and efforts on internal dynamics and employees or outward toward its external environment and its customers and shareholders. The second dimension is the organization's preference for flexibility and discretion or control and stability.