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Chapter 4: ORGANIZATIONAL PROCESS: ORGANIZATIONAL CULTURE 11 November 2017 / SGDU6033 ORGANIZATIONAL BEHAVIOR

Prepared by

  1. 823105 WAN MASITAH BINTI WAN MAJID
  2. 821458 SITI NAZIRAH BINTI ABU BAKAR
  3. 822109 NORZALINA BINTI ISMAIL
  4. 821660 AHMAD SABRI BIN MOHAMAD

For

DR NORAZLINDA BINTI SAAD

LECTURER SGDU6033 ORGANIZATIONAL BEHAVIOR

WHAT IS ORGANIZATIONAL CULTURE?

  • Organizational culture is a pattern of shared basic assumptions that a group working together for a common goal has created in learning to cope with the problems of external adaptation and internal integration.” It is about the correct way to think, talk, perceive, feel and act, in certain situations (Schein, 1985).
  • Organizational culture is a system of shared meaning held by members that distinguishes the organization from other organizations (Robbins & Judge, 2009). It is a set of assumptions, beliefs, values and norms shared by everyone in the organization.
  • Culture also includes the organization’s vision, values, norms, systems, symbols, language, assumptions, beliefs, and habits (Needle, 2004).
  • Simply stated, organizational culture is “the way things are done around here” (Deal & Kennedy, 2000).

4.1. ELEMENTS OF ORGANIZATIONAL CULTURE

Organizational culture model by Schein (1985)

Three Levels of Organizational Culture (Schein, 1985)

  1. The level of artifacts deals with what one feels, observes, and notes with all of one's senses as one enters a new culture. But as clear and palpable as those cues are, they are difficult to decipher unless one asks insiders what they mean.
  2. When we get explanations we usually elicit what I call the level of values, usually the espoused goals, ideals, norms, standards, moral principles, and other untestable premises. This is the level that is often tapped when we construct questionnaire surveys of culture.
  3. It is only if we dig beneath the surface of values by observing behavior carefully, noting anomalies, inconsistencies, or phenomena that remain unexplained that we elicit from the insiders their underlying assumptions. Such assumptions often start out historically as values, but, as they stand the test of time, they gradually become assumptions and come to be taken for granted.

The Elements

  • Artifacts
  1. Physical structures / Technology - buildings, classrooms, school climate, technology.
  2. Language - local dialects, multilanguage of multiracial and diverse cultural ethnicity.
  3. Rituals and celebrations - Celebrations, performances, and activities that foster and reinforce teamwork, esprit de corps, and a sense of inclusion. They are what make employees feel part of something bigger than themselves, that that something is worth being a part of. These can include annual parties, sales meetings, organizational retreats, or any other group activities, members of the organization who personify its values and highlight its vision.
  4. Stories, myths and legends - the good and the bad of the head teacher, the organizational history and other stories that embody the organizational culture and emphasize what the organization value.
  • Espoused Values
  1. Values. A value is a belief about the desirability of a mode, means, or end of action (Kluckhohn, 1951; Schwartz and Bilsky, 1987). It indicates the degree to which something is regarded as good versus bad. A value tends to be general rather than specific, transcending particular types of action and situations. As a general evaluative criterion, it is used to assess specific behaviors in specific situations.
  2. Norms. A norm is an evaluative belief. Whereas a value is a belief about the desirability of behavior, a norm is a belief about the acceptability of behavior (Gibbs, 1965; Marini, 1984). A norm indicates the degree to which a behavior is regarded as right versus wrong, allowable versus unallowable. It is an evaluative criterion that specifies a rule of behavior, indicating what a behavior ought to be or ought not to be. A prescriptive norm indicates what should be done, and a proscriptive norm indicates what should not be done. Because a norm is a behavioral rule, it produces a feeling of obligation. A value, in contrast, produces a feeling of desirability, of attraction or repulsion.
  3. Conscious Beliefs. Belief is the state of mind in which a person thinks something to be the case, with or without there being empirical evidence to prove that something is the case with factual certainty. Another way of defining belief sees it as a mental representation of an attitude positively oriented towards the likelihood of something being true.
  • Basic Assumptions
  1. Unconscious beliefs
  2. Perceptions can be defined as our recognition and interpretation of sensory information. Perception also includes how we respond to the information. We can think of perception as a process where we take in sensory information from our environment and use that information in order to interact with our environment. Perception allows us to take the sensory information in and make it into something meaningful

4.2. ORGANIZATIONAL CULTURE AND PERFORMANCE

Theory Z

William Ouchi (1993) examined high-producing companies in order to discover what, if anything, these firms had in common. To explain the success of these companies, Ouchi developed Theory Z. Theory Z is an extension of Douglas McGregor’s (1960) Theory X and Theory Y concepts. The principal difference is that McGregor’s Theory X and Theory Y formulation is an attempt to distinguish between the personal leadership styles of an individual supervisor, whereas Theory Z is concerned with the “culture of the whole organization.”

4.3. INFLUENCING CULTURE CHANGE

4.4. SOCIALIZATION AND CULTURE

Socialization Adam, Alvenfors (2010)

4.5. CHANGING AND STRENGTHENING ORGANIZATIONAL CULTURE

4.6. ORGANIZATIONAL CULTURE AND SOCIETAL VALUES

OUR VALUES DEFINE US
  • Societal values are the value systems of major groups of population (Hofstede, 1980; Doupnik and Tsakumis, 2004).

CONCLUSION

EFFECTS OF NEGATIVE SOCIETAL VALUES ON ORGANIZATIONS

  • Organizational culture has a profound effect on the ethical behavior of your employees. A positive corporate culture encourages employees to behave in responsible, ethical ways, resulting in a happy workplace, team collaboration and employee empowerment. Negative corporate cultures, on the other hand, promote unethical behavior, causing a wide variety of problems
  • Lack of Moral Leadership. When managers are unethical, employees will emulate the bad behavior. Eventually, the unethical environment will hinder business. For example, if managers take credit for subordinates’ work, some employees will start to imitate the behavior. Honest employees will begin to protect themselves by hiding their work from their colleagues and supervisors. The resulting lack of teamwork and collaboration will limit the company’s potential. In contrast, if managers model ethical behavior for employees and reward good behavior, the positive corporate culture will instill how ethical behavior makes good business sense and helps everyone succeed, according to the book “ORGB,” by Debra L. Nelson and James Campbell Quick.
  • Poor Discipline. A lax corporate culture makes it easy for unethical behavior to prosper. If your company doesn't act quickly to punish or remove unethical employees, they will run rampant over ethical employees. As a business owner, you have a responsibility to maintain order within your organization by disciplining employees who are ethically out of line and by rewarding ethical employees.
  • Lack of Discussion. Corporate cultures that discourage honest discussion allow unethical behavior to spread unimpeded. Instead, a company should encourage employees to report unethical behavior before it becomes a widespread problem. Providing whistleblowers with protection and encouraging employees to report problems help foster an organization that is ethical from top to bottom, according to the book “Organizational Behavior,” by Don Hellriegel and John W. Slocum
  • Behavior Driver. Any culture, including corporate culture, institutionalizes behavioral norms. This “herd mentality” can discourage innovative thinking and individual initiative, especially if the company doesn’t value adaptability.
  • Employees May not Accept it. Employees can be leaders, too, even without legitimate power. Employee relationships form a social system and an informal organization that underlies the formal structure of a small business. This social system is “one of the most important factors of organizational culture,” the book says. An owner should be aware that no matter how much certain values such as hard work or responsibility are touted, if employees model contrary behavior, the corporate culture hurts the company.
  • Tough to Change. The corporate culture gives employees a sense of identity and belonging that encourages participation in the company. A business doesn’t stand still, however. When an owner decides to make changes, it threatens employees’ identity. Some may see opportunity, but it’s natural for others to wonder what role they’ll have in the new situation. Others will fear a loss of status. Facing these uncertainties, employees may resent and resist change. Some may even become hostile.
  • Misalignment. No matter how glorious the words of a mission or vision statement, they cannot inspire employee action if the corporate culture will not support it. The culture provides the means of translating mission into action. Communication, relationships, interrelationships, empowerment, the sense that the true values of the organization are aligned with mission -- all these determine whether employees can fulfill an owner’s vision for the small business.

Wouldn't this be nice!

Vishen Lakhiani is an entrepreneur, author, and speaker. He is the founder and CEO of Mindvalley and the author of The Code of the Extraordinary Mind.

REFERENCES

  1. Edgar H. Shein (1988) "Organizational Culture" WP#2088-88
  2. Bruce M.Tharp (2009) Defining "Culture and Organizational Culture: From Anthropology to the Office" Haworth.
  3. Arthur W. Collins (1969) “The Journal of Philosophy” Vol. 66, No. 20, Sixty-Sixth Annual Meeting of the American Philosophical Association Eastern Division (Oct. 16, 1969), pp. 667-680
  4. Slađana Savović, (2017) "Organizational culture differences and post-acquisition performance: The mediating role of employee attitudes", Leadership & Organization Development Journal, Vol. 38 Issue: 5, pp.719-741
  5. Lunenberg, (2011) “Organizational Culture - Performance Relationships: Views of Excellence and Theory Z”, National Forum of Education, Administration and Supervision Journal, Vol 29
  6. Mingming Feng, Tony Kang, Sandeep Nabar, (2017) "National societal values and corporate governance", International Journal of Emerging Markets, Vol. 12 Issue: 2, pp.183-198
  7. Kluckhohn, Clyde 1951 "Values and Value-Orientations in the Theory of Action: An Exploration in Definition and Classification." In T. Parsons and E. A. Shils, eds., Toward a General Theory of Action. New York: Harper & Row.
  8. Marini, Margaret Mooney 1984 "Age and Sequencing Norms in the Transition to Adulthood." Social Forces 63:229–244.
  9. Debra L. Nelson, James Campbell Quick and Preetam Khandelwal, Organizational Behaviour: A South Asian Perspective. Delhi: Cengage Learning India, 2013, xxxv + 787 pp
  10. Hellriegel, D., Slocum, J. W., & Woodman, R. W. (2001). Organizational behavior (9th ed.). Cincinnati, Ohio: South-Western College Pub..
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