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.