Chapter 15 (Management)

How are cultures maintained? (15.4)

1. attraction-selection-attrition 2. New Employee Onboarding attraction-selection-attrition and onboarding processes Additionally, the influence of each factor on culture creation is reciprocal. For example, just as leaders may influence what type of values the company has, the culture may also determine what types of behaviors leaders demonstrate.

Key Takeaway (15.4)

Organization cultures are created by a variety of factors, including founders' values and preferences, industry demands, and early values, goals, and assumptions. Culture is maintained through attraction-selection-attrition, new employee onboarding, leadership, and organizational reward systems. Signs of a company's culture include the organization's mission statement, stories, physical layout, rules and policies, and rituals.

Service Oriented (15.3)

Employee empowerment and customer service focused

Creating New Symbols and Stories (15.5)

Replace the old and in with the new

Stable Cultures (15.3)

predictable, rule-oriented, and bureaucratic prevent quick action public sector too bureaucratic can be detrimental

Aggressive Cultures (15.3)

value competitiveness and outperforming competitors Fall short in CSR VERY competitive

Example of AVA (15.2)

Assumption: Happy employees benefit their organization Values: Social equality, high quality relationships, fun Artifacts: Open Door Policy

Levels of Organizational Culture (15.2)

Assumptions 1. reflect beliefs about human nature and reality Values 1. shared principles, standards, and goals. Artifacts 1. tangible aspects of organizational culture

Nordstrom

Awesome customer service

What Can Employees Do During Onboarding? (15.4)

Be proactive, seek feedback, build relationships 1. Feedback 2. Relationships

Physical Layout (15.4)

Buildings typically articulate the values of the company Where are the leaders offices?

Rules and Policies (15.4)

Companies create rules to determine acceptable and unacceptable behavior, and thus the rules that exist in a company will signal the type of values it has

Key Takeaway (15.3)

Culture can be understood in terms of seven different culture dimensions, depending on what is most emphasized within the organization. For example, innovative cultures are flexible and adaptable, and they experiment with new ideas, while stable cultures are predictable, rule-oriented, and bureaucratic. Strong cultures can be an asset or a liability for an organization but can be challenging to change. Organizations may have subcultures and countercultures, which can be challenging to manage.

Safety Culture (15.3)

Culture than emphasizes workplace safety Lots of safety training

Role Modeling (15.5)

Employees modify their own beliefs and behaviors to reflect those of the leader

Stories (15.4)

Engages employees, gets them to be innovative

Change leaders (15.5)

Find those that back the changes, remove the ones that dont back

What can organizations do during onboarding? (15.4)

Formal Orientation Program 1. indoctrinates new employees to the company culture, as well as introduces them to their new jobs and colleagues

Conclusion

To summarize, in this chapter we have reviewed what defines organizational culture, how it is created, and how it can be changed. Corporate culture may be the greatest strength or a serious limitation for a company, depending on whether the values held are in line with corporate strategy and environmental demands. Even though changing an organization's culture is difficult, success of the organization may require the change. Leaders, through their actions, role modeling, rule making, and story creation, serve as instrumental change agents.

Strong Culture (15.3)

one that is shared by organizational members if most employees in the organization show consensus regarding the values of the company, it is possible to talk about the existence of a strong culture Research shows that strong cultures lead to more stable corporate performance in stable environments However, in volatile environments, the advantages of culture strength disappear

Founder's Values (15.4)

particularly during its early years, is inevitably tied to the personality, background, and values of its founder or founders, as well as their vision for the future of the organization

Rituals (15.4)

refer to repetitive activities within an organization that have symbolic meaning

Organizational Culture (15.2)

refers to a system of shared assumptions, values, and beliefs that show employees what is appropriate and inappropriate behavior.

Mission Statement (15.4)

statement of purpose, describing who the company is and what it does An effective mission statement is well known by employees, is transmitted to all employees starting from their first day at work, and influences employee behavior.

Culture Change Steps (15.5)

1. Create a sense of urgency 2. Change leaders 3. Role Model 4. Train 5. Change the reward system

Attraction-Selection-Attrition (15.4)

1. Employees are attracted to orgs 2. Employees model themselves after the org, orgs assess fit 3. Attrition natural process where employees leave who dont fit Organizational Culture serves as a self-defending organism

How do cultures change? (15.5)

1. Experiencing failure 2. Mergers and Acquisitions

Organizational Culture Profile (OCP) (15.3)

1. Service Oriented 2. Team-Oriented 3. Outcome-Oriented 4. People-Oriented 5. Stable Cultures 6. Aggresive 7. Innovative 8. Detail Oriented

What can organizational insiders do during onboarding? (15.4)

Mentors 1. can be crucial to helping new employees adjust by teaching them the ins and outs of their jobs and how the company really operates Leadership 1. Leaders have a direct influence on culture 2. their behavior is incredibly important Reward Systems 1. Behaviors or results? Behavior: we may expect a culture that is relatively people or team oriented, and employees act as part of a family Performance: observe outcome-oriented and competitive cultures Behavior Standard: team-oriented culture

New Employee Onboarding (15.4)

Onboarding 1.refers to the process through which new employees learn the attitudes, knowledge, skills, and behaviors required to function effectively within an organization

Create a sense of urgency (15.5)

One way of doing this is to create a sense of urgency on the part of employees and explain to them why changing the fundamental way in which business is done is so important

Changing the Reward System (15.5)

The criteria with which employees are rewarded and punished have a powerful role in determining the cultural values in existence Incentivize teamwork or individual performance

Key Takeaway (15.2)

Organizational culture is a system of shared assumptions, values, and beliefs that help individuals within an organization understand which behaviors are and are not appropriate within an organization. Cultures can be a source of competitive advantage for organizations. Strong organizational cultures can be an organizing as well as a controlling mechanism for organizations. And finally, organizational culture consists of three levels: assumptions, which are below the surface, values, and artifacts.

Key Takeaway (15.5)

Organizations need to change their culture to respond to changing conditions in the environment, to remain competitive, and to avoid complacency or stagnation. Culture change often begins by the creation of a sense of urgency. Next, a change of leaders and other key players may enact change and serve as effective role models of new behavior. Training can also be targeted toward fostering these new behaviors. Reward systems are changed within the organization. Finally, the organization creates new stories and symbols.

Do Organizations Have a Single Culture? (15.3)

Subculture 1. A culture that emerges within different departments, branches, or geographic location Counterculture 1.as shared values and beliefs that are in direct opposition to the values of the broader organizational culture

Why does it matter? (15.2)

Unique cultures provide a competitive advantage Relationship between culture and performance Dependent on industry (High Tech - Innovativeness) Organizational culture is an effective tool for dictating employee behavior Culture is better than rules

Training (15.5)

Well-crafted training programs may be instrumental in bringing about culture change by teaching employees the new norms and behavioral styles

Key Takeaway (15.6)

Without a culture emphasizing the importance of integrity, honesty, and trust, the mandatory ethics training programs are often doomed to fail. The values, norms, and beliefs of a company may also be at least partially imposed by the national culture.

Detail-Oriented Cultures (15.3)

characterized in the OCP framework as emphasizing precision and paying attention to details Hospitality Customer focused

Team-Oriented Cultures (15.3)

collaborative and emphasize cooperation among employees Cross-training positive relationships and have meetings

Industry Demands (15.4)

despite some differences, many companies in the insurance and banking industries are stable and rule oriented, many companies in the high-tech industry have innovative cultures, and companies in the nonprofit industry tend to be people oriented The industry influence over culture is also important to know, because this shows that it may not be possible to imitate the culture of a company in a different industry, even though it may seem admirable to outsiders.

Outcome-Oriented Cultures (15.3)

emphasize achievement, results, and action as important values Outperform those that arent outcome focused Can be unethical through overrewarding

People-Oriented Cultures (15.3)

fairness, supportiveness, and respect for individual rights Turnover is better

Innovative Cultures (15.3)

flexible and adaptable, and experiment with new ideas