SR

Week 5 Workplace Psychology: Culture, Change, and Development

  • Learning Objectives

    • Understand cultural differences across nations and their impact on individuals and organizations.
    • Understand the concept of fit and its relevance for individuals and organizations.
    • Differentiate between organizational climate and culture, exploring their importance.
    • Discuss the rationale for organizational change and its models.
    • Explain concepts such as downsizing, outsourcing, offshoring, and mergers/acquisitions.
    • Describe practices in organization development.
  • Organizational Culture

    • Definition: A pattern of shared basic assumptions developed by a group to cope with external adaptation and internal integration, which is taught to new members.
    • Quote: "Culture eats strategy for breakfast".
  • Cross-Cultural Dimensions

    • Power Distance:
    • High: Acceptance of inequality and power hierarchies.
    • Low: Preference for egalitarian structures.
    • Individualism vs. Collectivism:
    • Individualism: Emphasizes personal goals.
    • Collectivism: Emphasizes group loyalty and harmony.
    • Masculinity vs. Femininity:
    • Masculine cultures value competitiveness and assertiveness.
    • Feminine cultures value cooperation and compassion.
    • Uncertainty Avoidance:
    • High: Need for order and avoidance of ambiguity.
    • Low: Acceptance of change and risks.
    • Long-term vs. Short-term Orientation:
    • Long-term: Emphasis on sustainability and future success.
    • Short-term: Focus on immediate gratification and past/present norms.
    • Indulgence vs. Restraint:
    • Indulgent cultures prioritize leisure and enjoyment.
    • Restrained cultures emphasize suppression of desires and work focus.
  • Cultural Tightness vs. Looseness

    • Tight societies: Stronger norms and behavioral expectations.
    • Loose societies: Weaker norms, allowing more individual freedom and diversity.
  • Socialization Process

    • Definition: The process through which individuals learn and internalize the culture of their society.
    • Socialization molds compliance with cultural norms, impacting perceptions of other cultures.
  • Organizational Climate vs. Culture

    • Climate: Shared meanings regarding how things are done in an organization.
    • Culture: Encompasses language, beliefs, and values that explain why things are done a certain way.
    • Schein's Model of Organizational Culture:
    • Observable Artifacts: Visible structures and processes.
    • Espoused Values: Officially stated norms and values.
    • Basic Assumptions: Deeply ingrained beliefs that are often unexamined.
  • Competing Values Framework

    • Differentiates organizational values into four categories:
    • Collaborative (Clan): Emphasizes teamwork and cohesion.
    • Controlling (Hierarchy): Focus on structure and control.
    • Creative (Adhocracy): Values innovation and risk-taking.
    • Competition (Market): Prioritizes performance and competitiveness.
  • Fit:

    • Importance of person-organization fit for employee retention, job performance, and work attitudes.
    • Attraction-Selection-Attrition (ASA) cycle: Similar values lead to employee retention and cultural perpetuation.
  • Organizational Change

    • Definition: Methods through which organizations adapt to changing conditions.
    • Common Models:
    • Lewin's 3-Step Model: Unfreeze, Change, Refreeze.
    • Kotter's 8-Step Model: Establish urgency, form coalitions, create and communicate vision, empower action, plan and implement, consolidate gains.
  • Types of Changes:

    • Downsizing: Job reductions to cut costs; may involve horizontal or vertical cuts.
    • Outsourcing & Offshoring: Transfer of work to external contractors or to locations with cheaper labor.
    • Mergers & Acquisitions: Combining organizations can lead to cultural shifts.
  • Organization Development (OD):

    • Focus on data-driven interventions to improve organizational effectiveness.
    • Key Elements: Problem identification, planning, organization-wide focus, and effective interventions.
    • Intervention Types: Leadership development, team building, employee surveys.
  • Conclusion:

    • Understanding organizational culture and the dynamics of change is crucial for enhancing workplace effectiveness and employee satisfaction.