kill me

What is 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

Four characteristics of organizational culture

• It’s a shared concept (Espoused vs shared values)

• It is learned over time

• It influences our behavior at work

• It impacts outcomes at multiple levels

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Drivers of Culture

The founder’s values, the industry/business environment, the national culture, and the organization’s vision and strategies

Organizational Culture

Clan Adhocracy, Market Hierarchy

Organizational Structure and Internal Processes

The way that reporting relationships are organized

Group and Social Processes

The way that people interact with each other

3 levels of organizational culture

Observable artifacts, espoused vs. enacted values, basic underlying assumptions

Observable artifacts

The physical manifestation of an organization’s culture

Espoused vs. enacted values

Espoused values: the EXPLICITLY STATED values and norms that are PREFERRED by an organization

Enacted values: values and norms that are EXHIBITED OR CONVERTED into employee behavior

Basic underlying assumptions

Organizational values that have become taken for granted and are highly resistant to change

Culture as an asset, Strategic Alignment

Articulate and reinforce clear values that enact strategic choice, aligning business strategy with culture

Culture as an asset, Employee Behaviors

Reward and promote employee behaviors consistent with values

Culture as an asset, Firm Performance

Organizational performance improves, Employee attitudes will improve

What is involved in the decision making process?

The process of choosing a course of action for dealing with a problem or opportunity, Decision making is the one truly distinctive characteristic of managers

One dimensional vs. multidimensional thinking

making a decision based on ONE factor (mmm steak) vs making a decision SEVERAL factors (what is cheap and tasty)

Immediate vs Extended

Threat happening RN vs threat happening OVER TIME

System 1 Characteristics, way of thinking/making decisions

• Automatic

• Fast

• Little or no effort

• No sense of voluntary control

System 2 Characteristics, way of thinking/making decisions

1. Attentional

2. Slow

3. Effortful

4. Subjective experience of choice

Rational Decision-Making

This explains how managers SHOULD make decisions assuming managers are completely objective and possess complete information :

Stage 1: Identify the problem/opportunity

Stage 2: Generate alternative solutions

Stage 3: Evaluate alternatives and select a solution

Stage 4: Implement and evaluate the solution chosen

Rational Decision Making Pros/Cons

The quality of the decision is likely to be enhanced and greater responsibility accompanies this approach, HOWEVER we are RARELY RATIONAL when making decisions in complex situations or the conditions for optimization are hard to meet, given cost, time, and resource constraints

Simon’s Normative Model - “Satisfactory is good enough!”

Actual decisions are often generally nonrational, guided by bounded rationality, results in satisficing when arriving at a solution

Unfreezing

Create the motivation to change

Refreezing

Support and reinforce the change

Team Cohesion

Degree to which team members are attracted to the team and value team membership

Team Potency

The belief that the team is strong, their perceptions of the degree to which the team has the ability to perform

GroupThink

Team members are unable to dissent, no one is challenging each other or the leader to take a different course of action

Social Loafing

Individuals exerting less effort when they work in a team than when they work alone

Distributive Strategy

Integrative Strategy

use this strategy f it’s someone you want to have a long term relationship with

BATNA

Best Alternative to Negotiated Agreement

Resistance Point

The worst deal ur willing to accept

Target

Ideal goal - ambitious

Intuitive Based Nonrational Decision Making