Mahmood Qasim slides on organizational culture for organizational behaviour students

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Transcript of Mahmood Qasim slides on organizational culture for organizational behaviour students

Page 1: Mahmood Qasim slides on organizational culture for organizational behaviour students
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Organization Theory

Historical Roots

Open system

Information Processing View

Contingency and Ecological

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First orderOr

Single - loop

Second order/Dentero

Or Double - loop

A learning organization is the term given to a Company that facilitates the learning of its members and continuously transforms itself. Learning organizations develop as a

result of the pressures facing modern organizations and enables them to remain competitive in the business environment.  A learning organization has five main features; systems thinking, personal mastery, mental

models, shared vision and team learning.

Distinction made by Chris Argyris and his ColleaguesDistinction made by Chris Argyris and his ColleaguesDistinction made by Chris Argyris and his Colleagues

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The idea of the learning organization developedfrom a body of work called System Thinking.

This is a conceptual framework that allows people to study businesses as bounded objects.  Learning organizations use this method of thinking When

assessing their company and have information systems that measure the performance of the organization as

a whole and of its various components.  Systems thinking states that all the characteristics must be apparent at

once in an organization for it to be a learning organization.  If some of these Characteristics are missing

then the organization will fall short of its goal. However O’Keeffe believes that the characteristics of a learning organization are factors that are gradually

acquired, rather than developed simultaneously.

System ThinkingThe idea of the learning organization developed

from a body of work called System Thinking.This is a conceptual framework that allows people to

study businesses as bounded objects.  Learning organizations use this method of thinking when

assessing their company and have information systems that measure the performance of the organization as

a whole and of its various components.  Systems thinking states that all the characteristics must be apparent at

once in an organization for it to be a learning organization.  If some of these Characteristics are missing

then the organization will fall short of its goal. However O’Keeffe believes that the characteristics of a learning organization are factors that are gradually

acquired, rather than developed simultaneously.

System Thinking

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The commitment by an individual to the process of learning is known as personal mastery. There is a competitive

 advantage for an organization whose workforce can learn more quickly than the workforce of other organizations. Individual learning is acquired through staff training

and development,  however learning cannot be forced upon an individual who is not receptive to learning.

 Research shows that most learning in the workplace is incidental, rather than the product of formal training, therefore it is important to develop a culture where personal mastery is practiced in daily life. A learning

organization has been described as the sum of individual learning, but there must be mechanisms for individual learning to be transferred into organizational learning.

Personal Mastery

The commitment by an individual to the process of learning is known as personal mastery. There is a competitive

 advantage for an organization whose workforce can learn more quickly than the workforce of other organizations. Individual learning is acquired through staff training

and development,  however learning cannot be forced upon an individual who is not receptive to learning.

 Research shows that most learning in the workplace is incidental, rather than the product of formal training, therefore it is important to develop a culture where personal mastery is practiced in daily life. A learning

organization has been described as the sum of individual learning, but there must be mechanisms for individual learning to be transferred into organizational learning.

Personal Mastery

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The assumptions held by individuals and organizations are called mental models.  To become a learning organization, these models must be challenged.

Individuals tend to espouse theories, which are what they intend to follow, and theories-in-use, which

are what they actually do. Similarly, organizations tend to have ‘memories’ which preserve certain

behaviors, norms and values. In creating a learning environment it is important to replace confrontational

attitudes with an open culture that promotes inquiry and trust.  To achieve this, the learning

organization needs mechanisms for locating and assessing organizational theories of action. Unwanted values

need to be discarded in a process called ‘unlearning’.  Wang and Ahmed refer to this as ‘triple loop learning.’

Mental Models

The assumptions held by individuals and organizations are called mental models.  To become a learning organization, these models must be challenged.

Individuals tend to espouse theories, which are what they intend to follow, and theories-in-use, which

are what they actually do. Similarly, organizations tend to have ‘memories’ which preserve certain

behaviors, norms and values. In creating a learning environment it is important to replace confrontational

attitudes with an open culture that promotes inquiry and trust.  To achieve this, the learning

organization needs mechanisms for locating and assessing organizational theories of action. Unwanted values

need to be discarded in a process called ‘unlearning’.  Wang and Ahmed refer to this as ‘triple loop learning.’

Mental Models

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 The development of a shared vision is important in motivating the staff to learn, as it creates a common identity that

provides focus and energy for learning. The most successful visions build on the individual visions of the

employees at all levels of the organization,  thus the creation of a shared vision can be hindered by traditional

structures where the company vision is imposed from above. Therefore, learning organizations tend to have flat, decentralized organizational structure. The shared

vision is often to succeed against a competitor,  however Senge states that these are transitory goals and suggests that there should also be long term goals

that are intrinsic within the company

Shared Vision

 The development of a shared vision is important in motivating the staff to learn, as it creates a common identity that

provides focus and energy for learning. The most successful visions build on the individual visions of the

employees at all levels of the organization,  thus the creation of a shared vision can be hindered by traditional

structures where the company vision is imposed from above. Therefore, learning organizations tend to have flat, decentralized organizational structure. The shared

vision is often to succeed against a competitor,  however Senge states that these are transitory goals and suggests that there should also be long term goals

that are intrinsic within the company

Shared Vision

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 The accumulation of individual Learning constitutes Team Learning.  The benefit of team or shared learning is that

staff grow more quickly and the problem solving capacity of the organization is improved through better access to

knowledge and expertise.  Learning organizations have structures that facilitate team learning with features such

as boundary crossing and openness. Team learning requires individuals to engage in dialogue and discussion; therefore

team members must develop open communication, shared meaning, and shared understanding.  Learning organizations

typically have excellent knowledge management structures, allowing creation, acquisition, dissemination, and

implementation of this knowledge in the organization.

Team Learning.

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First orderOr

Single - loop

Second order/Dentero

Or Double - loop

Distinction made by Chris Argyris and his Colleagues

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Learning involves improving the organization’s capacity to achieveknown objectives. It is associated withroutine and behavioral learning. Undersingle-loop, the organization is learningwithout significant change in its basic

Assumptions.

Single – loop Learning

Learning involves improving the organization’s capacity to achieveknown objectives. It is associated withroutine and behavioral learning. Undersingle-loop, the organization is learningwithout significant change in its basic

assumptions.

Single – loop Learning

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Learning reevaluates the nature of theorganization’s objectives and the valuesand beliefs surrounding them. This type

of learning involves changing the organization’s culture. Importantly,

double – loop consists of the organization’slearning how to learn.

Double – loop Learning

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GenerativeLearning

Adaptive Learning

Peter Senge and colleagues proceeded to portraythe learning organization from a system theoryperspective and made the important distinction.

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It is only the first stage of the learning Organization, adapting to the environment

Changes. Adaptive changes such asImplementing TQM, Benchmarking,

Six Sigma, Customer Service Initiatives.

Adaptive Learning

It is only the first stage of the learning organization, adapting to the environment

changes. Adaptive changes such asimplementing TQM, benchmarking,

six sigma, customer service initiatives.

Adaptive Learning

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It involves creativity and innovation, going beyond just adapting to change tobeing ahead of and anticipating change.

Generative Learning

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Formulation and implementation of ideas take place at all levels of the

Organization.

There is a shared vision that can emerge from many places, but top management

is responsible for ensuring that this vision exists and is nurtured.

Each person is responsible for his or her own job responsibilities,

and the focus is ondeveloping individual

developing

Vision is providedby top management

Top management decides what is to be done, and

the rest of The organization acts on these ideas

Determination Of overall direction

Nature of organizational

thinking

Nature of organizational

thinking

Top management decides what is to be done, and

the rest of The organization acts on these ideas

Nature of organizational

thinking

Formulation and implementation of ideas take place at all levels of the

organization.

Top management decides what is to be done, and

the rest of The organization acts on these ideas

Nature of organizational

thinking

Each person is responsible for his or her own job responsibilities,

and the focus is ondeveloping individual

developing

Personnel understand their own jobs as well as the way in which their own work

interrelates with and influences that of other personnel.

Each person is responsible for his or her own job responsibilities,

and the focus is ondeveloping individual

developing

Formulation and

Implementation of ideas

Conflict are resolved through the use of collaborative learning and the integration

of diverse viewpoints of personnel throughout the organization.

Conflict are resolved through the use of

power and hierarchicalinfluence.

Conflict resolution

The role of the leader is to build a shared vision, empower the personnel, inspire commitment, and encourage effective

decision making throughout the enterprise through the use of empowerment

and charismatic leadership

The role of the leader Is to establish the organization’s vision, provide rewards and punishments as appropriate and maintain overall control

of employee activities.

Leadership and

motivation

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Modern Organization Design

Horizontal Organization

1. Organization revolves around the process,not the task.

2. The Hierarchy is flattened.3. Teams are used to manage everything.4. Customers drive performance.5. Team performance is rewarded.6. Suppliers and customer contact is maximized.7. All employees need to be fully informed and

trained.

NetworkOrganization

1. Network organization are based on cooperative, multidisciplinary teams and business networked together across the enterprise.

2. Rather than a rigid structure, it is a modularorganizational architecture in which businessteams operate as a network of what we callclient and server functions.

Horizontal Organization

1. Organization revolves around the process,not the task.

2. The Hierarchy is flattened.3. Teams are used to manage everything.4. Customers drive performance.5. Team performance is rewarded.6. Suppliers and customer contact is maximized.7. All employees need to be fully informed and

trained.

NetworkOrganization

1. Network organization are based on cooperative, multidisciplinary teams and business networked together across the enterprise.

2. Rather than a rigid structure, it is a modularorganizational architecture in which businessteams operate as a network of what we callclient and server functions.

Horizontal Organization

1. Organization revolves around the process,not the task.

2. The Hierarchy is flattened.3. Teams are used to manage everything.4. Customers drive performance.5. Team performance is rewarded.6. Suppliers and customer contact is maximized.7. All employees need to be fully informed and

trained.

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Virtual Organization

1. Virtual organization requires a strong information technology platform.2. The virtual organization is a temporary network

of companies that comes together quickly toexploit fast-changing opportunities.

3. Each partner contributes to the virtual organization what it is best at – its corecapabilities.

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Rather than the old inflexible hierarchical pyramid, network organization demand a flexible, spherical structure that can rotate competent,

self-managing teams and other resources around a common knowledgebase. Such teams, capable of quick action on the firm’s behalf both externally and internally, provide a distinct competitive advantage.

The Contrast Between the Hierarchical and Network Organization

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Network Structure

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Traditional Hierarchical Versus the Network Organization

Dimension / Characteristic

Traditional Organization

Network Organization

Structure

Scope

Resource Focus

State

Personal Focus

Key Drivers

Directions

Basis of Action

Individual Motivation

Learning

Relationships

Dominant Requirements

Employee Attitude

Hierarchical

Internal / Closed

Capital

Static, Stable

Managers

Reward & Punishment

Management Commands

Control

Satisfy Superiors

Specific Skills

Competitive (my turf)

Sound Management

Detachment (it’s a job)

Networked

External / Open

Human, Information

Dynamic, Changing

Professionals

Commitment

Self-management

Empowerment to act

Achieve team goals

Broader Competencies

Accomplishment, Competence Level

Structure

Structure

Structure

Basis for Compensation Position in Hierarchy

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This is a more usual type of redesign, whereby established companies such as General Electric return

to a previously successful design by eliminating unproductive structural additions and modifications

Companies reverting to bureaucratic procedures.

Three Types of radical Redesign of Today’s Organization

As the term implies, this means starting from just apiece of green field or from a clean slate,

breaking Completely from the classical structure and establishing A totally different design.For example: Google, Southwest Airlines

Greenfield Redesign

Rediscovery Redesign

In the network approach, the firm concentrates on where it can add the greatest value in the supply chain, and it outsource to upstream and/or downstream partners

who can do better job. This network of the firm its upstream and downstream partners can be optimally

effective and flexible. Another network approach is to require internal units of the firm to interact at Market prices – buy and sell to each other at prices equal to those that can be obtained by outsourcing partners.

Network Design

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The Organizational Culture Context

A cognitive framework consisting of attitudes, values, behavioral norms, and expectations shared by organization members.

Definition

1. Innovations: the extent to which people are expectedto be creative.

2. Stability: value a stable, predicted, rule-oriented environment

3. Orientation towards people: being fair, supportive, andshowing respect for individual’s right.

4. Result orientation: the strength for achievement.5. Easygoingness: extent to which atmosphere is relaxed.6. Attention to details: concern for being analytical7. Collaborative orientation: emphasis on working in teams

as opposed to individually.

Characteristics

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1. Reflects its core values, dominant perceptionthat are generally shared throughout the organization.

2. Core values shared by a majority of the members.

3. Dominant culture guide day-to-day behavior.

Dominant Culture Characteristics

The overall culture of an organization, reflected by core values that are shared throughout the organization

Dominant Culture Defined

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1. Values shared by minority of the members.2. Are results of problems or experiences that are

shared by members of a department or unit.3. These typically are distinguished with respect to

either functional differences or geographic distance. 4. They are usually formed to help the member of

a particular group deal with the specific day-to-dayproblems with which they are confronted.

5. They can weaken and undermine an organization if they are in conflict with the dominant culture .

Subculture Characteristics

Culture existing within parts of organizations ratherthan entirely through them. Members of subculturesshare values in addition to the core values of theirorganization as a whole.

Subculture Defined

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Subculture values:Sales Group

Honest representation

of products

Customer service

Open to new ideas

Subculture values:Engineering Group

Thorough product testing

Subculture values:Accounting Group

Honest representation

of products

High quality

Values of theDominant

Organizational Culture

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Organizational Culture

Provides a sense of

Identity for members

Enhances commitment to

the organization’s mission

Clarifies and reinforces

standards of behavior

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An organization that provides opportunities for people to master many different jobs and to move from one to the next.

Types of Organizational Culture

These organizations are concerned with getting people to fit in and be loyal. They highly value age and experience.

People in such organizationstend to be entrepreneurs who take risks and are handsomely rewarded for their Success.

These organizations offer challenges of seeing a company turn around Those who doesn’t mind lack of job security, for them such organizations are stimulating place to work.

Academy

Club

Baseball team Fortress

Coca-Cola, General Motors, IBM and P&G

Military, Delta Airlines and United Parcel Service.

Software development firms, investment banking, law,

accounting. Large Retailers

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Formation and Maintenance of Organizational Culture

Several factors contribute to the emergence and maintenance of organizational culture

Company Founder

Organizational Experience

Internal Interaction

Organizational Experience

Stories

Jargons

Ceremonies

Statements of principles

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Why and How Does Organizational Culture Change?

Composition of the Workforce

Mergers and Acquisitions

Planned Organizational Change

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Questions for Presentations

1. How does a learning organization differ from a traditional organization?

2. Briefly define the horizontal, network, and virtual organization design. How does these differ form the classical design? How do they better meet the challenges of the new environment?

3. What is meant by the term organizational culture? Define it and give some examples of its characteristics. How does a dominant culture differ form a subculture?

4. How do organizational cultures develop? What four steps commonly occur?

5. What kinds of events might be responsible for the changing of organizational culture? Explain why these events are likely to be so influential.

6. How do organizations go about maintaining their cultures? What steps are involved? Describe them.

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7. Characterize the culture of any organization with which you may be familiar by describing the core characteristics collectively valued by its members. Would you consider it an academy, club, baseball team or fortress?

8. Suppose you are founding a new company. Describe how you might either intentionally or unintentionally affect its culture. How might your influences linger within the organization long after you have left it?

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Thank You