Culture & Values in Organisation

8/13/2019 Culture & Values in Organisation

1/27

ORGANIZATIONAL CULTURE


2/27

What is Organizational Culture?

Shared values,

ways of thinking,

attitudes, and guiding beliefs

That are relevant to, and supportive of,

the organization and its goals. Unfortunately many organizational cultures arenot the most appropriate ones for the organization

and its situation.


3/27

The Purpose of Culture

To help integrate organizationalmembersso that they know how to relateand work together effectively.

To help the organization to best adapt toits mission and to its environment.


4/27

John Chambers: CEO of Cisco Systems(June 2010 interview)

When I started (At Cisco in 1995), I viewed my job as

three main areas: vision and strategy of the company,

development and recruitment of the team to implement

that vision and strategy, and the need to communicate all

of the above.

Within four or five years I realized there was something

that many of us do not understand when we take a

leadership role:cu l ture

. Great companies have verystrong and great cultures.

A huge part of a leadership role is to drive the culture of

the company and to reinforce it.


5/27

EFFECTS OF CULTURE

Determines how people communicate

Determines how people interact

Determines how people relate to oneanother

Guides day-to-day working relationships

Determines what is appropriate behavior Determines how power and status are

allocated


6/27

Levels of Corporate CultureThe Iceberg Analogy

Observable Symbols

Ceremonies, Stories, Slogans,

Behaviors, Dress,

Physical Settings

Invisible Aspects

Underlying Values,

Assumptions,

Beliefs, Attitudes,Feelings


7/27

Rites and Ceremonies

Rites of Passage Facilitates transition into or out of the organization EG: freshman week and senior week

Rites of Integration

Encourages common feelings of group identity EG: homecoming / sporting events

Rites of Renewal Improve organizational functioning

EG: team building Rites of Enhancement

Enhance social identities common feelings EG: Student awards and recognition / deans list


8/27

Organizational Rites and Their Social Consequences

Type of Rite Example Social Consequences

PassageInduction and basic training; US

Army

Facilitate transition of personinto new social roles andstatuses

Enhancement Annual awards nightEnhance social identities andincrease status of members

RenewalOrganizational developmentactivities

Refurbish social structures andimprove organizationfunctioning

Integration Office holiday party

Encourage and revive common

feelings that bind memberstogether and commit them tothe organization

Source:Adapted from Harrison M. Trice and Janice M. Beyer,Studying Organizational Cultures through Rites and Ceremonials,Academy of Management Review9 (1984), 653-659. Used with permission.


9/27

Stories, Symbols, & Language

They reinforce existing culture, but they dont

create culture by themselves.

Employees learn more from observed behavior.

Slogans, stories and symbols are useful in

reinforcing desired behaviors.

The really important thing is for managers to

display the desired values and beliefs in theirday-to-day behaviors.


10/27

Organizational Chart for Nordstrom

Directors

Store Mgrs,Buyers,

MerchandiseMgrs.

Dept Managers

Sales & Sales Support

Customers


11/27

Determinants of Culture

Stable but with a clear

external vision and

orientation.

MISSION

Highly organic andfocused on adapting tothe externalenvironment.

ADAPTABILITY

Internal efficiency &stability. Mechanistic,conformity, highintegration,collaborationBUREAUCRACTIC

People oriented, familyatmosphere dealingwith external change.Clan controls.

CLAN CULTURE

ENVIRONMENT

STRATEGY

Externalfocus

Internalfocus

Stable Dynamic

Stability Flexibility

NEEDS based on the environment


12/27

The Learning Organizations Culture

Each employee considers how his or her actions

will affect others and the organization.

A culture of equality: All employees aretreated equally without status differences.

A culture of risk-taking, adaptation, and

continual improvement. The status quo is

always being questioned.


13/27

SUB CULTURES

Organizations can have different sub culturesjust as they have different sub structures.

Organic departments/divisions may well havedifferent cultures than mechanistic ones.

EG: The culture of accounting students versus theculture of art students.


14/27

Cultural Strength

Measured by the degree of agreement aboutshared values.

A strong culture is associated with increased

frequency of the visible elements. A strong culture can be very hard to change

unless it is a culture of change.

The Learning Organization must have a strong culturethat is supportive of risk taking, adaptation,improvement and change


15/27

Environment- Strategy - CultureThe match between strategy, environment, and culture is very important.

Environment

Culture

Strategy

Corporate culture

should embodywhat the

organization

needs to be

effective within its

environment.

Since we have little, if any, influence on the externalenvironment, we need to create an organizationalculture that fits with the strategy and environment.


16/27

ETHICS versus MORALS

Ethics:A system of moral principles.

Morals:Have to do with right and wrong

behavior. (Our principles and valuesgoverning right and wrong behavior.)

LawsEthics(moral

principles)


17/27

QUIZ

Your Friend has an open box of cookiessitting out, but he or she is not there tooffer you one.

Would you eat one?

Two?

Three?The entire box?


18/27

Have you ever said I love you.when youdidnt mean it?

Never

Once

Twice

All the time

QUIZ


19/27

A very good friend asks you if you think she isattractive. You think she is ugly as a wart.

What would you say?

You find a bag with $1000 in unmarked bills. Noone saw you pick it up. There is a receipt inside

with the owners name and address.What would you do?

QUIZ


20/27

Ethical Conundrums

Is ethics a matter of degree?

Can the same behavior be

ethical in one situation andunethical in another?

Should everyone have the

same ethics?


21/27

Forces That Shape ManagerialEthics

Is a

Decision

or Behavior

Ethical and

Socially

Responsible?

Beliefs and Values

Moral Development

Ethical Framework

Personal Ethics

Structure

Policies, Rules

Code of Ethics

Reward System

Selection, Training

Organizational Systems

Government Regulations

Customers

Special Interest Groups

Global Market Forces

External Stakeholders

Rituals, Ceremonies

Stories, Heroes

Language, Slogans

SymbolsFounder, History

Organizational Culture


22/27

Formal Structure andSystems of the Organization

Ethics committee:A cross-functionaloversight group.

Chief Ethics Officer: Oversees ethicsprograms.

Code of ethics:A formal statement of the

organizations values regarding ethics andsocial responsibility

Training programs


23/27

How Leaders Shape Culture

By what they do.

The examples they set

The types of people they hire

By what they say.

Formal policies, codes of ethics, etc.

By what the organization does.

Ethical training, ethics committees

VALUE-BASED LEADERSHIP


24/27

Managerial work can be viewed as

managing myth, symbols, and

labels because managers traffic so

often in images, the appropriate rolefor the manager may be evangelist

rather than accountant.

Karl Weick


25/27

Ralph Davis CEO, Travel Insurance Services

Many years ago, I came back to my office after a

seven week absence, having entrusted the business to

those I hired. It was a mess. Cliques; infighting; no more

family team that I had developed.

I called each individual into my office and asked

what happened. Every person pointed to someone

else. Essentially, everyone was at fault for participating,

yet no one took responsibility for their individual actions.

So, I fired them all! Best thing I ever did.


26/27

Travel Insurance Services - The AftermathA conversation with the CEO

Next morning, I walked in and found a banner with everyone'ssignature and apology...and a request to be rehired.

Iaccepted the apologies, rehired everyone. A few week's later Ilet go the office manager who was the chief culprit.

One quit because ofthe manager's firing. Two years later, thequitter called me and took me to lunch. She apologized forquitting, realized she'd backed the wrong horse.Wasn'tasking for her job, but wanted me to know about

her conclusion.Never had the problem again. Some of the people are still

with my old company.

Davis sold the company and retired in 2004


27/27

Update:Travel Insurance Services

The NASDAQ listed company that ultimately purchased mybusiness told

everyone two months later: Your business is about revenue, THEN

relationships. So much for today's MBAs running corporate

America. When I was asked to produce my legacy notes, i.e. explain how

I got to run a profitable company, my first sentence was,

"It's all about relationships. Revenue will come later. By relationships, I mean(1) take care of the employees; (2) help them take care of the prospect and

client; (3) then the shareholders will be taken care of. That's what made my

company successful; that's why you're happy with your profitable

purchase".Never again heard from them. They've refused to use me as a consultant,

which has led them to lose major business unnecessarily, and 25% of

the seasoned employees have left.

Culture & Values in Organisation

Documents

Transcript of Culture & Values in Organisation