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.