Creating

1
Creating Managing Organizational Culture

• Chapter 7

2
Organizational Culture

• Definition
• Importance?
• Terminal values- desired outcome reflected by
  mission statement official goals
• (Quality, reliability, innovation)
• Instrumental values- desired behavior reflected
  by norms, rules SOPs
• (Respect authority, honesty, creativity, safety,
  risky)
• Culture can be Core competence, cause of
  merger failure, cause of unethical behavior, or
  decline.

3
Socialization

• How the culture is learned internalized
  (outsider ? insider)
• Observation, mentors
• Stories, myths
• Training or orientation
• Ceremonial rites (promotion, departure, parties,
  awards, titles, press releases)
• Observable artifacts (dress code, office décor)
• Technical language or Jargon
• Status symbols.

4
Socialization

• Role orientation
• The way newcomers are taught to respond to a
  situation
• Institutionalized role orientation
• Encourages obedience, conformity
• Disadvantages?
• Individualized role orientation
• Encourages creativity, risk taking,
  experimentation, individuality

5
Socialization Tactics

• Institutionalized vs. Individualized
• Collective vs. individual (learning experience)
• Formal vs. informal (segregation?)
• Sequential vs. random (assumption of roles)
• Fixed vs. variable (time table)
• Serial vs. disjunctive (role models)
• Divestiture vs. investiture. (support given?)

6
Sources of Organizational Culture

• Characteristics (personality, values) of the
  people within the organization its founders
• 2. Organizational ethics values? influenced by
  society, profession, individuals
• 3. Organizational structure
• 4. Property rights ?

7
Property Rights

• The rights the org gives to members to obtain/use
  resources (shapes norms, values, motivation,
  attitudes, reward system)
• Which SH have strongest rights?
• Managers rights
• D/M authority, stock options, large salaries,
  control over resources, status, power
• Workforce rights
• Severance pay, lifetime employment, pension,
  benefits, stock, bonuses, salaries, participation
  in D/M
• --Your organization?

8
Property Rights

• PR given? loyalty, commitment
• PR not given (too weak)? hostility, turnover
• Problems with mergers?
• Must be assigned on basis of performance!!
• What happens when PR too strong?
• Entitlement mentality (Apple)
• Conflict, power struggles
• Members pursue own interests
• Reduced innovation (no motivation
• to perform).

9
How does Organizational Structure Affect OC?

• Mechanistic structure with centralized decision
  making
• Organic structure with decentralized decision
  making
• What types of values behaviors
• do we see in these structures?

10
How to Change OC?

• Redesign structure
• Revise property rights
• Change top-management team
• Change methods of reward promotion
• Change code of ethics (or espoused values)
  provide training
• Change observable artifacts.
• Why would we want to change it?