Organizational Behavior Chapter 16: Organizational Culture

Stories

1. Stories such as these circulate through many organizations, these stories serve to connect the present with the past and validate the current practices being followed. 2. the common stories that circulate within organizations. These stories often touch upon various aspects of the organization's history. These narratives might delve into the origins and vision of the organization, highlighting the people who laid its foundation. Stories about instances when rules were bent or broken, revealing the organization's flexibility or challenges. Inspirational tales of individuals who started with humble beginnings but achieved remarkable success within the organization. Accounts related to downsizing or layoffs, reflecting the organization's adaptability during tough times. Stories about employees moving to different locations. Narratives about how the organization handles stress, crises, or unexpected situations. Employees also create their own narratives about how they came either to fit or not to fit with the organization during the process of socialization, including first days on the job, early interactions with others, and first impressions of organizational life.

Material Symbols

1. The layout of corporate headquarters, the types of automobiles top executives are given, and the presence or absence of corporate aircraft are a few examples of material symbols. 2. These material symbols silently express information about the organization's identity and priorities.

Prearrival

1. the learning phase during socialization that happens before a new employee officially starts working at the organization. It's like getting prepared and familiarized before stepping into the workplace. 2. everyone comes into the organization with their own beliefs, attitudes, and ideas about how things should be done at work and what the organization is like. 3. Newcomers to high-profile organizations with strong market positions have their own assumptions about what it's like to work there. a. For example, Most new recruits will expect Nike to be dynamic and exciting, and a stock brokerage firm to be high in pressure and rewards.

Encounter

1. this is the point during socialization when a new employee gets a firsthand look at what the organization is truly like. They come face-to-face with the potential differences between their initial expectations and the actual reality of working there. It's like lifting the curtain and seeing what's behind it! 2. when a new employee joins the organization, During this stage, they come face-to-face with the reality of their job, colleagues, boss, and the overall organization. They might find that their initial expectations don't quite match what's actually happening. If their expectations were accurate, this stage just confirms what they already thought. It's like a reality check for newcomers! 3.Sometimes, when a new employee feels really disappointed or let down, they might decide to quit. But there are ways to prevent this! When organizations hire, choose, and help new employees get used to the job (like by showing them what it's really like), it can greatly reduce the chances of them leaving. Plus, having friendly colleagues who guide them along the way makes newcomers feel more committed. It's like having a supportive team to help them learn the ropes!

Metamorphosis

1. this stage is when a new employee starts adapting and getting used to their job, the people they work with, and the overall organization. It's like settling into their role and becoming part of the team! 2. when a new employee faces issues they've noticed during the encounter stage, they enter this stage. Here, they adapt and transform, resolving any challenges they encountered earlier. It's like their journey from a caterpillar to a butterfly within the organization! 3. how we help new employees adjust to an organization—the way we introduce them and get them accustomed—has a big effect on how well they fit in. Two Bundles of Socialization Practices

Dominant culture

A culture that expresses the core values that are shared by a majority of the organization's members that give the organization its distinct personality.

Barriers to Diversity

Hiring new employees who differ from the majority in race, age, gender, disability, or other characteristics creates a paradox: Management wants to demonstrate support for the differences these employees bring to the workplace, But on the other hand, these newcomers must also fit in with the organization's existing culture. Second, As people adapt to the organization's ways, their diverse behaviors and strengths may fade. This can turn a strong organizational culture into a liability, as it might erase the benefits of having a diverse workforce. Third, If an organization's culture tolerates prejudice, bias, or insensitivity, it can undermine the formal diversity policies the company has in place.

Can a strong Culture be a liability?

Institutionalization Barriers to Change Barriers to Diversity Strengthening Dysfunctions Barriers to Acquisitions and Mergers.

Rituals

Repetitive sequences of activities that express and reinforce the key values of the organization, which goals are most important, which people are important, and which are expendable. Some companies have nontraditional rituals to help support the values of their cultures.

Core Values

The primary or dominant values that are accepted throughout the organization.

Creating Culture

a. Culture creation occurs in three ways. i. 1st) hire and keep employees who think and feel the same way they do ii. 2nd) when an organization wants its employees to adopt specific beliefs and emotions, they actively teach and influence them to think and feel in a particular way. It's like shaping their mindset and attitudes to align with the organization's culture. iii. 3rd) when an organization's founders (the people who started it) behave in a certain way, employees tend to adopt their beliefs, values, and assumptions. And when the organization does well, these founders' personalities become a part of the organization's culture. It's like their influence leaves a lasting mark! 1. For example, the fierce, competitive style and disciplined, authoritarian nature of Hyundai, the giant Korean conglomerate, exhibits the same characteristics often used to describe founder Chung Ju-Yung.66 Other founders with sustaining impact on their organization's culture include Bill Gates at Microsoft, Ingvar Kamprad at IKEA, Herb Kelleher at Southwest Airlines, Fred Smith at FedEx, and Richard Branson at the Virgin Group. iv. Original culture derives from founder's philosophy.

Culture's Transmission

a. Culture is transmitted to employees in several forms, the most potent being stories, rituals, material symbols, and language.

The 7 traits of an organization's culture.

a. Innovation and risk taking i. which employees are encouraged to be innovative and take risks. b. Attention to detail i. which employees are expected to exhibit precision, analysis, and attention to detail. c. Outcome orientation i. which management focuses on results or outcomes rather than on the techniques they used to achieve them. d. People orientation i. which management decisions take into consideration the effect of outcomes on people within the organization. e. Team orientation i. which work activities are organized around teams rather than individuals. f. Aggressiveness i. which people are aggressive and competitive rather than easygoing. g. Stability i. which organizational activities emphasize maintaining the status quo in contrast to growth.

Two Bundles of Socialization Practices

a. Institutional Practices i. These involve formal, collective, fixed, and serial socialization programs. When management emphasizes removing newcomers' unique differences and they conform to standardized, predictable behaviors. These practices are common in organizations like police departments and fire departments that prioritize rule-following and order. ii. when an organization has strong practices in place, it helps employees fit well within the organization and makes them more committed to their work. It's like having a solid foundation for a successful partnership! b. Individual Practices i. These programs are variable, casual, personalized, and unpredictable. ii. they focus on starting something new. Newcomers are encouraged to think creatively about their roles and how they work. It's like giving them the freedom to explore fresh ideas and approaches! iii. These practices are common in research and development, advertising, and filmmaking rely on these individualized approaches. c. The three-part entry socialization process is complete when new members have learned and embraced the organization's rules and customs. Feel capable in their role. And Experience trust and appreciation from their colleagues. Finally, they know what is expected of them and what criteria will be used to measure and evaluate their work.

Sustainability

a. Maintaining organizational practices over a long period of time because the tools or structures that support them are not damaged by the processes. b. Social Sustainability i. organization's actions can impact the social systems around it over time. It also considers how changes in those social systems might, in turn, affect the organization itself

actions of top management

a. The actions of top management have a major impact on the organization's culture. b. senior executives use their words and actions to set the rules and expectations within an organization. They decide things like whether it's okay to take risks, how much freedom managers can give employees, what's considered appropriate attire, and what behaviors lead to pay raises and promotions. i. For example, The culture of supermarket chain Wegmans—which believes driven, happy, and loyal employees are more eager to help one another and provide exemplary customer service—is a direct result of the beliefs of the Wegman family. Their focus on fine foods separates Wegmans from other groceries—a focus maintained by the company's employees, many of whom are hired based on their interest in food. Top management at the company believes in taking care of employees to enhance satisfaction and loyalty. For example, Wegmans has paid more than $105 million in educational scholarships for more than 33,000 employees since 1984. Top management also supports above average pay for employees, which results in annual turnover for full-time employees at a mere 5 percent (the industry average is 27 percent). Wegmans regularly appears on Fortune's 100 Best Companies to Work For list (number 2 in 2017), in large measure because top management sustains the positive organizational culture begun by its founding members.

Selection/Socialization Process

a. The selection process can help inform prospective employees about the organization as a whole. b. One major purpose of a business school, for example, is to socialize students to the attitudes and behaviors that companies desire in future employees. c. They are three stages of socialization as a process: i. Prearrival ii. Encounter iii. Metamorphosis

Workplace Spirituality

a. the recognition that people have an inner emotional and mental life. This inner life is nurtured by engaging in meaningful work, and this work happens within the context of a community. i. Characteristics of a Spiritual Organization 1. Benevolence a. Spiritual organizations value kindness toward others and the happiness of employees and other organizational stakeholders. 2. Strong sense of purpose. a. Spiritual organizations build their cultures around a meaningful purpose. Although profits may be important, they're not the primary value. 3. Trust and respect. a. Spiritual organizations are characterized by mutual trust, honesty, and openness. Employees are treated with esteem and value, consistent with the dignity of each individual. 4. Open-mindedness a. Spiritual organizations value flexible thinking and creativity among employees.

Create a positive organizational culture

a. three kinds of traits that we think of as creating a positive organizational culture. b. building on employee strengths i. A positive workplace culture acknowledges problems but also encourages employees to use their strengths for success. ii. Wouldn't it be better to be in an organizational culture that helped you discover your strengths and how to make the most of them. c. rewards more than it punishes i. Although most organizations are sufficiently focused on extrinsic rewards such as pay and promotions, appreciate the small wins too. Recognize and celebrate employees' good work. ii. Managers often hold back on praising employees because they fear it might backfire or think it's not essential, but this can have unintended consequences. d. emphasizes individual vitality and growth i. Organizations won't benefit fully: Companies won't get the best results or advantages. Recognize and appreciate each employee's unique contributions: Instead, organizations should acknowledge and value what each employee brings to the table. Everyone has something special to offer. ii. A positive workplace culture recognizes that work is more than just a job; it's about personal growth and having a fulfilling career.

Barriers to Acquisitions and Mergers.

i. Back in the day, when companies considered merging or acquiring another, they mainly focused on money (financial advantage) and whether their products would work well together (product synergy). ii. Nowadays, the biggest concern is whether the two organizations' cultures fit together. iii. If the cultures don't mesh well, it's like mixing oil and water. Both organizations' cultures can become a problem for the new combined entity.

Keeping a Culture Alive

i. The selection process, performance evaluation criteria, training and development activities, and promotion procedures ensure those hired fit in with the culture, reward those employees who support it, and penalize those who challenge it. ii. Three forces play a particularly important part in sustaining a culture: 1. selection practices a. the main purpose of the selection process is to find and hire people who have the right knowledge, skills, and abilities to do their job effectively within the organization. b. the ultimate choice—which is heavily shaped by the decision maker's assessment of how well potential candidates align with the organization—identifies individuals whose values closely match those of the organization, at least to a significant extent. c. the selection process not only helps organizations choose candidates but also gives applicants insights. If an applicant feels that their values don't align well with the organization's, they can voluntarily withdraw from consideration. d. the selection process works both ways allowing employer and applicant to avoid a mismatch and to sustain an organization's culture by removing those who might attack or undermine its core values, for better or worse.

Strengthening Dysfunctions

i. We've talked about cultures that are built on positive values and attitudes. Everyone in an organization shares positive values and attitudes, it propels the group forward with strength and momentum. ii. However, if a culture revolves around negativity and dysfunctional management, it can be just as powerful—but in a harmful way. Imagine it like a toxic force pulling downward. iv. Negative attitudes within groups lead to negative outcomes. So, culture has a big influence on individuals—for better or worse.

Institutionalization

i. When a company can thrive on its own, separate from its founders or specific people, it has become institutionalized. ii. Value Beyond Goods or Services: Some organizations are special because they exist, not just because of what they do. Their presence matters beyond practical goals. iii. Persistence: Even if an organization's original reasons don't matter anymore, it keeps going because it has become something more than its initial purpose. iv. Implicit Behaviors: in certain organizations, the usual ways of acting become so natural to the people involved that they do them almost automatically. This can make the organization stable, but it might also block new ideas and creativity.

Subcultures

i. it tend to develop in large organizations. They in emerge in response to shared challenges or experiences encountered by members working in the same department or location. Essentially, they are like smaller cultural groups that form within the larger organizational context. ii. If organizations were composed only of it, the dominant organizational culture would be significantly less powerful. It is the shared meaning" within a culture which gives it significant power to influence and shape people's behavior. That's what allows us to say, for example, that the Zappos culture values customer care and dedication over speed and efficiency, which explains the behavior of Zappos executives and employees. iii. You can form stronger bonds sometimes with it, then with the organization's overall dominant culture.

Strong culture

i. it's possible to differentiate between strong and weak cultures. If most employees have the same opinions about the organization's mission and values, the culture is strong; if opinions vary widely, the culture is weak. iii. In it the organization's core values are both intensely held and widely shared. iv. The more members who accept the core values and the greater their commitment, the stronger the culture and the greater its influence on member behavior. For example, Nordstrom employees know exactly what is expected of them, for example, and these expectations go a long way toward shaping their behavior. vi. Such complete agreement of purpose builds cohesiveness, loyalty, meaning, and organizational commitment. A study of nearly 90,000 employees from 137 organizations found that culture strength or consistency was related to numerous financial outcomes when there was a strong sense of mission and high employee involvement.

Organizational Culture

is a system of shared meaning held by members that distinguishes the organization from other organizations. Those two words, shared meaning, are your keys terms to remembering organizational culture. Seven primary characteristics seem to capture the essence of an organization's culture: i. Innovation and risk taking ii. Attention to detail iii. Outcome orientation iv. People orientation v. Team orientation vi. Aggressiveness vii. Stability

Language

it plays a crucial role within organizations. Identification: it helps employees connect with the organization's culture. It's like a secret code that binds them together. Acceptance: When people use specific terms or phrases, they are acknowledging and embracing the organization's values and practices. Preservation: By using certain language, members actively maintain and safeguard the organization's unique identity.

Barriers to Change

when an organization's culture (which includes its shared beliefs and practices) doesn't align with what helps the organization succeed, it becomes a problem rather than an asset. When organization's surroundings are changing quickly. However, the deeply ingrained culture within the organization might not be suitable anymore. While consistency in behavior is valuable when things are stable, it can become a hindrance during times of change, making it hard for the organization to adapt.

Culture Functions

a. Boundary-defining role i. means there are distinctions between your organization and others. b. Conveys a sense of identity for members i. For example, if you have a team jersey, You are saying that there are certain qualities in which I believe I am part of this. So that tells the world something about you. c. Facilitates the generation of commitment i. committing into something that's larger than individual self-interest. d. Enhances the stability of the social system i. Culture is the social glue that helps hold the organization together by providing standards for what employees should say and do. e. Serves as a sense-making and control mechanism i. that guides and shapes employees' attitudes and behavior.

socialization methods

a. A process that adapts employees to the organization's culture. b. even if the organization does a great job hiring and selecting new employees, those employees still require assistance to fit in with the existing culture. This assistance is provided through socialization practices—ways of helping them adjust and become part of the team. c. Socialization can help alleviate the problem many employees report when their new jobs are different from what they expected. i. For example, the consulting firm Booz Allen Hamilton begins its process of bringing new employees onboard even before their first day of work. New recruits go to an internal Web portal to learn about the company and understand the culture. After they start work, a social networking application links them with more established members of the firm and helps ensure that the culture is reinforced over time. Clear Channel Communications, Facebook, Google, and other companies are adopting fresh onboarding (new hire acclimation) procedures, including assigning "peer coaches," holding socializing events, personalizing orientation programs, and giving out immediate work assignments. "When we can stress the personal identity of people, and let them bring more of themselves at work, they are more satisfied with their job and have better results," researcher Francesca Gino of Harvard said.

1. Creating an Ethical Organizational Culture

a. Be a visible role model. i. Employees observe top management: When employees look at how their leaders behave, they consider it a standard for what is considered appropriate behavior. Lead by example, regardless of your position, and spread positivity to shape a better workplace. b. Communicate ethical expectations. i. When you're a leader, be clear about what's right and wrong by sharing a code of ethics with everyone in the organization. c. Provide ethical training i. Arrange workshops to remind people of the rules, clarify what's okay, and tackle ethical challenges. d. Visibly reward ethical acts and punish unethical ones. i. As a leader, judge your team's actions based on ethics, reward good behavior, and address unethical conduct openly. e. Provide protective mechanisms. i. Organizations should set up safe ways for people to discuss ethical problems and report wrongdoing, without worrying about reprisals. Ethical counselors can play a key role in maintaining a positive ethical environment.