MAN 3025 - Module 6 Notes

Corporate Strategy

1. Organization Culture

2. Human Resource Practices

3. Organizational Structure

Organizational Culture (Corporate 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

• Social glue for understanding; if you don’t create a culture for people to produce their best work, then you’ve created nothing

Organizational Structure

a formal system of task and reporting relationships that coordinate and motivates an organization’s members so that they can work together to achieve the organization’s goals

Human Resource Practices

all of the activities an organization uses to manage its human capital, including staffing, appraising, training and development, and compensation

• Focuses on ensuring that employees have the necessary skills, motivation, and opportunities to contribute the organization

Three Levels of Organizational Culture

1. Observable artifacts

2. Espoused values

3. Basic Assumptions

Observable Artifacts

physical manifestations

• Ex. Manner of dress, awards, myths, and stories about the company, rituals, and ceremonies, decorations as well as behaviors exhibited by managers and employees.

Espoused Values

the explicitly stated values and norms preferred by an organization

• Ex. Exploring its website for mission, visions, and values statements

Enacted Values

the values and norms actually exhibited in the organization

Basic Assumptions

the unobservable yet core values of an organization’s culture that are often taken for granted; unwritten rules or old assumptions left unchecked

• Very difficult to change

How is Employee Culture Established

(1) symbols, (2) stories, (3) heroes, (4) rites and rituals, and (5) organizational scoialization

Symbol

an object or action that represents an idea or qualityS

Story

an object or action that represents an idea or quality

Heroes

a person whose accomplishments embody the values of the organizationR

Rites and Rituals

the activities and ceremonies, planned and unplanned that celebrate important occasions and accomplishments in organizational lifeO

Organizational Socialization

the process by which people learn the values, norms, and required behaviors that permit them to participate as members of an organization

1. Anticipatory Socialization - before you join the organization (learn from career advisors, web sources, or current employees)

2. Encounter Phase - when you are first hired (onboarding)

3. Change and Acquisition Phase - when you have developed a strong sense of your work role (comfortable with the necessary skills and tasks: goal setting, norms, employee feedback, etc.)

Competing Values Framework

measure, understand, and change organizational culture

1. Clan (top left)

2. Adhocracy (top right)

3. Market (bottom right)

4. Hierarchy (bottom left)

• Horizontal Dimension = focuses attention and efforts inward on internal dynamics and employees vs outward on its customers and sharehodlers

• Vertical Dimension = decentralized decision making vs centralized authority

Clan Culture

internal focus and values flexibility rather than stability and control

ex. Devote lottos time to training and developing their employees

Adhocracy Culture

an external focus and values flexibility

ex. Encourage employees to be creative, adaptable, and quick to respond to changes (start-ups, firms undergoing constant change, etc.)

Market Culture

strong external focus and values stability and control

ex. Customer productivity takes precedence over employee development and satisfaction; are expected to work hard

• More positive organizational outcomes

Hierarchy Culture

an internal focus and values stability and control over flexibility

ex. Formalized, structured work environments with a lot go rules

• Mostly about maintaining the status quo

Person-Organization (P-O) Fit

assessing how well you fit in with the organization

• Know the organization’s culture