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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
Organization Theory
Historical Roots
Open system
Information Processing View
Contingency and Ecological
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
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
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
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
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
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.
First orderOr
Single - loop
Second order/Dentero
Or Double - loop
Distinction made by Chris Argyris and his Colleagues
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
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
GenerativeLearning
Adaptive Learning
Peter Senge and colleagues proceeded to portraythe learning organization from a system theoryperspective and made the important distinction.
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
It involves creativity and innovation, going beyond just adapting to change tobeing ahead of and anticipating change.
Generative Learning
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
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.
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.
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
Network Structure
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
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
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
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
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
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
Organizational Culture
Provides a sense of
Identity for members
Enhances commitment to
the organization’s mission
Clarifies and reinforces
standards of behavior
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
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
Why and How Does Organizational Culture Change?
Composition of the Workforce
Mergers and Acquisitions
Planned Organizational Change
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.
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?
Thank You