9: Organizational culture

Chapter 9: Culture and Organizational Change and Development

Section 1: National Culture and Organizational Culture

• National Culture

  • Defining values dimensions crucial for global organizations include:

  • Leadership Roles and Expectations: Determines if leaders are expected to make decisions independently or involve employee opinions.

  • Individualism vs. Collectivism: Explores the balance between individual-oriented vs. group-oriented cultures within organizations.

  • Communication Style: Analyzes the organizational approach to communication among employees.

  • Decision-making and Conflict Handling: Differentiates between action-oriented decisions and indirect conflict management.

Section 2: Organizational Climate and Culture

• Organizational Climate:

  • Refers to the shared meaning and understanding of how tasks and interactions are perceived within an organization.

  • A climate is stronger within smaller work units that demonstrate:

  • Cohesion among members.

  • High levels of interaction.

  • High levels of information shared.

  • Consistent behaviors exhibited by leaders.

• Norms:

  • Defined as unwritten, shared expectations that dictate appropriate group behavior, significant when assessing an organization's climate.

  • Descriptive Norms: Arise through observational learning within the group.

  • Injunctive Norms: Develop to conform for social approval; certain behaviors receive rewards or criticisms.

  • Norms have the capability to either promote or deviate from overarching organizational goals.

Section 3: Layers of Organizational Culture

• Observable Artifacts: Visual structures and processes identifiable within an organization.

• Three Layers of Culture:

  • Espoused Values: These are the beliefs and concepts endorsed by management, indicating the organization's declared values.

  • Basic Assumptions: These are the underlying, often unspoken beliefs and values that are deeply ingrained and taken for granted within the organization.

Section 4: Competing Values Framework

• Differentiates organizational cultures according to their focus and values:

  • Clan Culture (Collaborative, Internal Focus): Emphasizes teamwork and a family-like atmosphere (e.g., Tom's of Maine: "We're in this together").

  • Hierarchy Culture (Controlling, Internal Focus): Prioritizes structure and control (e.g., Ford: "My way or the highway").

  • Adhocracy Culture (Creative, External Focus): Values innovation and flexibility (e.g., Tesla: "Risk it to get the biscuit").

  • Market Culture (Competitive, External Focus): Focuses on results and competition (e.g., Amazon: "We're in it to win it").

Section 5: The Importance of Fit

• Person-Organization Fit: Represents alignment between individual and organizational values, crucial for both employee satisfaction and organizational success.

  • Types of Fit:

  • Person-Organization Fit

  • Person-Vocation Fit

  • Person-Environment Fit

  • Person-Job Fit

• Impact on Outcomes:

  • Person-Organization Fit (P-O) is a strong predictor of employee turnover, underscoring its importance in retention strategies.

Section 6: Perceptions of Fit (Schneider's ASA Cycle)

• This cycle illustrates how individuals are attracted to organizations that align well with their own values and preferences through three processes:

  • Attraction: Individuals are drawn to organizations with similar values.

  • Selection: Organizations preferentially select individuals who fit their cultural and value systems.

  • Attrition: The inevitable turnover of employees who do not fit the organizational culture.

Section 7: Organizational Change

• Organizational Change: Refers to the methods utilized by organizations to adapt to evolving economic and social pressures.

  • Change Agents: Individuals responsible for managing and facilitating change initiatives within organizations.

Section 8: Managing Organizational Change

• Successful organizational change mandates strategic planning and execution, supported by various frameworks including:

  • Lewin's Change Model:

  1. Unfreezing: Establishing awareness of the need for change and reducing resistance.

  2. Change: Implementing new processes, behaviors, and systems.

  3. Refreezing: Stabilizing and reinforcing the new state.

  • Kotter's 8-Step Change Model:

  1. Establish urgency.

  2. Form coalitions.

  3. Create a vision.

  4. Communicate the vision.

  5. Empower others.

  6. Plan, create, and reward short-term successes.

  7. Consolidate improvements and adjust to change.

  8. Reinforce changes.

Section 9: Downsizing and Strategic Organizational Changes

• Downsizing: Also known as a reduction in force, involves eliminating jobs to cut payroll costs.

  • Distinction between horizontal and vertical cuts.

  • Employees left behind may experience "survivor guilt", affecting morale.

  • Jobs are eliminated without directly firing employees.

• Strategic Organizational Changes: Organizations utilize varied strategies to adapt to market conditions, including:

  • Downsizing: Reducing workforce while managing ongoing organizational morale.

  • Outsourcing: Transferring specific functions to external service providers.

  • Offshoring: Shifting operations to international territories.

  • Mergers and Acquisitions (M&A): Combining organizations to enhance competencies or market presence.

Section 10: Organization Development (OD)

• Organization Development: A field emphasizing data-driven efforts aimed at increasing organizational effectiveness and well-being systematically.

  • Change can manifest as either evolutionary or revolutionary.

  • Forms of OD:

  • Leadership Development: Focuses on enhancing leadership capabilities within organizations.

  • Team Building: Strategies designed to improve trust, collaboration, and coordination among team members.

  • Survey Feedback: Utilizes survey results to link organizational practices with performance outcomes.