Principles of Management. Mason Carpenter, Talya Bauer, and Berrin Erdogan

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Mason Carpenter, Talya Bauer, and Berrin Erdogan

Principles of

Management

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Chapter 8 Organizational Culture

 Describe what

organizational culture is and why it is important for an organization

 Understand the dimensions

that make up a company’s culture

 Assess whether a culture is

weak or strong

 Understand factors that

create culture

 Understand culture change

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UNDERSTANDING ORGANIZATIONAL CULTURE The P-O-L-C Framework

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WHAT IS ORGANIZATIONAL CULTURE?

A ______ of shared

_________, values,

and beliefs that

show people what

is __________ and

__________

behavior

It is related to the _____ of the three facets comprising the P-O-L-C function of Organizing The culture of the organization is closely _____ to organizational design

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WHY DOES ORGANIZATIONAL CULTURE MATTER?

An organization’s culture may be one of

its strongest assets or its biggest liability

Organizational culture is an effective control mechanism dictating employee behavior Culture, or shared values within the organization, may

be related to increased performance

Organizations which have a rare and

hard to imitate culture may enjoy a

competitive advantage

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Basic

assumptions lie

below awareness. Assumptions are taken for granted, and reflect beliefs

about human nature and reality

At the second level, values exist.

Values are shared principles, standards, and goals Artifacts are on the surface, or visible, tangible aspects of organizational culture

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Discussion

• Why do companies need culture?

• Give an example of a company culture being a

strength and also a weakness.

• In what ways does culture serve as a

controlling mechanism?

• If assumptions are below the surface, why do

they matter?

• Share examples of artifacts you have noticed at

different organizations.

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Which values characterize an organization’s culture?

Dimensions of Culture Organizational Culture Profile (OCP)

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Innovative Cultures

W. L. Gore

Genentech

Google

Flexible

Adaptable

Experiment

with new

ideas

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Bill Gates co-founder of Microsoft

Microsoft has been described as having an aggressive culture

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Outcome-oriented cultures • A culture that emphasizes __________, ________, and _______ as important values Stable Cultures • Companies that are stable are ________, rule-oriented, and bureaucratic People-oriented cultures • These organizations value _______, supportiveness, and _________ individual rights

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Southwest is a team-oriented culture

Team-oriented

cultures are

collaborative

and emphasize

cooperation

among

employees

© 2010 Jupiterimages Corporation

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The growth in the number of passengers flying with Southwest Airlines

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Detail-oriented culture

A culture that is

characterized in

the OCP

framework as

emphasizing

precision and

paying attention

to details

© 2010 Jupiterimages Corporation

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STRENGTH OF CULTURE

Walt Disney created a strong culture which survives today

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Challenges of a Strong Culture

Difficult to change

Can be a liability during a

merger as each separate culture

must merge together

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Discussion

• Think about an organization you are familiar with. Based on the dimensions of OCP, how would you characterize its

culture?

• Out of the culture dimensions described, which dimension do you think would lead to higher levels of employee

satisfaction and retention? Which one would be related to company performance?

• What are pros and cons of an outcome oriented culture? • When bureaucracies were first invented, they were

considered quite innovative. Do you think that different

cultures are more or less effective at different points in time and in different industries? Why or why not?

• Can you imagine an effective use of subcultures within an organization?

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Creating and Maintaining

Organizational Culture

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Founder Values and Preference

 The social activism of Ben

and Jerry’s was instilled in the company because

founders strongly believed in these issues

 Social activism helped

distinguish Ben and Jerry’s from larger corporate

brands

 The values were retained as

part of the corporate

culture and taught to new members as the right way to do business

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HOW ARE CULTURES MAINTAINED?

attraction

selection

attrition

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Learning Culture Through Onboarding

The _______ through

which new employees

learn the ________,

knowledge, skills, and

behaviors required to

function ________

within an organization

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Onboarding Methods

Use of formal

orientation programs

Mentoring by

supervisors and

coworkers

Role modeling by

visible leaders

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Rewards Influence Culture

The types of __________ that are rewarded or ignored set the _____ for the culture Behaviors? Results? __________? __________?

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Tradition is important at Mary Kay Cosmetics

Pink Cadillacs are given to top performers at large annual events

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Discussion

• Do you think it is a good idea for companies to emphasize person-organization fit when hiring new employees? What advantages and disadvantages do you see when hiring people who fit with company values?

• What is the influence of company founders on company culture? Give examples based on your personal knowledge.

• What are the methods companies use to aid with employee onboarding? What is the importance of onboarding for organizations?

• What type of a company do you feel you would fit in? What type of a culture would be a misfit for you? In your past work experience, were there any moments when you felt that you did not fit in? Why?

• What is the role of physical layout as an indicator of company culture? What type of a physical layout would you expect from a company that is people oriented? Team oriented? Stable?

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Successful culture change requires managers to be

proficient with all of the P-O-L-C functions

Planning

1. Vision & Mission

2. Strategizing

3. Goals & Objectives

Organizing

1. Organization Design 2. Culture 3. Social Networks

Leading

1. Leadership 2. Decision Making 3. Groups/Teams 4. Motivation

Controlling

1. Systems/Processes 2. Strategic Human Resources

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Discussion

• Can new employees change a company’s culture?

If so, how?

• Are there any conditions under which change is

not possible? If so, what would such conditions

be?

• Have you ever observed a change process at an

organization you were involved with? If so, what

worked well and what didn’t?

• What recommendations would you have for

someone considering a major change of culture

within their own organization?

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DEVELOPING YOUR PERSONAL SKILLS:

LEARNING TO FIT IN

Do your research Observe the physical environment Read between the lines Reflect on how you are

treated Ask questions

Listen to

your gut

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Applying Onboarding in Your New Job

Gather information Manage your first impression Invest in relationship development Seek feedback Show success early on

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Discussion

• What clues does your college or school give

about its culture?

• What are four things you could do today to

learn more about an organization you are

interested in?

• Imagine that your good friend is starting a

new job next week. What recommendations

would you give your friend to help him or her

do a great job onboarding into the

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