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Transcript of Organizational Behavior and Organizational Change Organizational ...
CSE & Enterprise Systems CenterLehigh University
1
Roger N. Nagel © 2006
Organizational Behavior andOrganizational ChangeOrganizational Culture
Roger N. NagelSenior Fellow & Wagner Professor
Lehigh University
CSE & Enterprise Systems CenterLehigh University
2
Roger N. Nagel © 2006
Topics This PresentationOrganizational Culture Characteristics
1. Innovation and risk taking2. Attention to detail3. Outcome orientation4. People orientation5. Team orientation6. Aggressiveness7. Stability8. Agility
Organizational Culture USA & ChinaWhat Do Cultures Do?How Employees Learn Culture
“Organizational behavior”Eleventh Edition
By Steve RobbinsISBN 0-13-191435-9
Reference Book
“Organizational behavior”Eleventh Edition
By Steve RobbinsISBN 0-13-191435-9
Reference Book
2
o r g a n i z a t i o n a l b e h a v i o ro r g a n i z a t i o n a l b e h a v i o r
stephen p. robbins
e l e v e n t h e d i t i o ne l e v e n t h e d i t i o n
CSE & Enterprise Systems CenterLehigh University
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Roger N. Nagel © 2006
What Is Organizational Culture?
Characteristics:1. Innovation and risk
taking2. Attention to detail3. Outcome orientation4. People orientation5. Team orientation6. Aggressiveness7. Stability8. Agility
Characteristics:1. Innovation and risk
taking2. Attention to detail3. Outcome orientation4. People orientation5. Team orientation6. Aggressiveness7. Stability8. Agility
Organizational Culture
A common perception held by the organization’s members; a system of shared meaning.
Page 485Page 485
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Roger N. Nagel © 2006
Culture Characteristics A Closer look
1. Innovation and risk taking. The degree to which employees are encouraged to do both
2. Attention to detail. Degree to which employees are expected to exhibit precision, analysis, and attention to detail.
3. Outcome orientation. Degree to which management focuses on results rather than on processes used to achieve them.
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Roger N. Nagel © 2006
Culture Characteristics A Closer look
4. People orientation. Degree to which management decisions consider the effect of outcomes on people within the organization.
5. Team orientation. Degree to which work activities are organized around teams rather than individuals.
6. Aggressiveness. Degree to which people are aggressive and competitive.
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Roger N. Nagel © 2006
Culture Characteristics A Closer look
7. Stability. Degree to which activities emphasize maintaining the status quo.
8. Agility.Ability to change products or processes quickly and easily in response to new strategies or market demands [More on Agility soon]
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Roger N. Nagel © 2006
Typical Organizational Culture USA
moderateAgilitymoderateStability
highAggressivenessmoderateTeam orientationmoderatePeople orientationmoderateOutcome orientation
lowAttention to detail
highInnovation and risk taking
IN USA Nagel Opinion
Characteristics:(high, moderate, low)
CSE & Enterprise Systems CenterLehigh University
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Roger N. Nagel © 2006
Typical Organizational Culture USA & ChinaIN China
Your Opinion
moderateAgilitymoderateStability
highAggressivenessmoderateTeam orientationmoderatePeople orientationmoderateOutcome orientation
lowAttention to detail
highInnovation and risk taking
IN USA Nagel Opinion
Characteristics:(high, moderate, low)
CSE & Enterprise Systems CenterLehigh University
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Roger N. Nagel © 2006
Individual and Team Exercise
Fill in the typical organizational culture USA & china table which follows by your self.
For USA and China cultures use your best guess
CSE & Enterprise Systems CenterLehigh University
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Roger N. Nagel © 2006
Typical Organizational Culture USA & China
moderateAgility
IN USA Your Opinion
moderateStabilitymoderateAggressivenessmoderateTeam orientationmoderatePeople orientationmoderateOutcome orientation
lowAttention to detail
highInnovation and risk taking
In ChinaYour Opinion
IN USA Nagel Opinion
Characteristics:(high, moderate, low)
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Roger N. Nagel © 2006
Individual and Team ExerciseRead about organization A and organization B in the two slides which follow.Fill in the table following the descriptions using your opinion for the culture of organization A and organization B by your self
Contrasting Organizational Cultures
E X H I B I T 16–1 Page 487
E X H I B I T 16–1 Page 487
Organization AThis organization is a manufacturing firm. Managers are expected to fully document all decisions; and “good managers” are those who can provide detailed data to support their recommendations. Creative decisions that incur significant change or risk are not encouraged. Because managers of failed projects are openly criticized and penalized, managers try not to implement ideas that deviate much from the status quo. One lower-level manager quoted an often used phrase in the company: “If it ain’t broke, don’t fix it.”
There are extensive rules and regulations in this firm that employees are required to follow. Managers supervise employees closely to ensure there are no deviations. Management is concerned with high productivity, regardless of the impact on employee morale or turnover.
Work activities are designed around individuals. There are distinct departments and lines of authority, and employees are expected to minimize formal contact with other employees outside their functional area or line of command. Performance evaluations and rewards emphasize individual effort, although seniority tends to be the primary factor in the determination of pay raises and promotions.
Contrasting Organizational CulturesOrganization BThis organization is also a manufacturing firm. Here, however, management encourages and rewards risk taking and change. Decisions based on intuition are valued as much as those that are well rationalized. Management prides itself on its history of experimenting with new technologies and its success in regularly introducing innovation products. Managers or employees who have a good idea are encouraged to “run with it.” And failures are treated as “learning experiences.” The company prides itself on being market-driven and rapidly responsive to the changing needs of its customers.
There are few rules and regulations for employees to follow, and supervision is loose because management believes that its employees are hardworking and trustworthy. Management is concerned with high productivity, but believes that this comes through treating its people right. The company is proud of its reputation as being a good place to work.
Job activities are designed around work teams, and team members are encouraged to interact with people across functions and authority levels. Employees talk positively about the competition between teams. Individuals and teams have goals, and bonuses are based on achievement of these outcomes. Employees are given considerable autonomy in choosing the means by which the goals are attained.
E X H I B I T 16–1 Page 487
E X H I B I T 16–1 Page 487
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Roger N. Nagel © 2006
Read about Organization A & B and Rate Them
Agility
Organization BYour Opinion
StabilityAggressivenessTeam orientation
People orientationOutcome orientation
Attention to detailInnovation and risk taking
Organization AYour Opinion
Characteristics:(high, moderate, low)
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Roger N. Nagel © 2006
Individual and Team ExerciseFill in the tables which follows for your organizationa. First characterize your organization as it is today,
and then indicate how you feel it should be in the future.
b. On a separate piece of paper write down an explanation of why you want to change your organizational culture for any row in which you have indicated a change is needed.
CSE & Enterprise Systems CenterLehigh University
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Roger N. Nagel © 2006
Your Organizational Culture Today and in Future
Agility
Your OrganizationShould be in future
StabilityAggressivenessTeam orientation
People orientationOutcome orientation
Attention to detailInnovation and risk taking
Your Organizationtoday
Characteristics:(high, moderate, low)
CSE & Enterprise Systems CenterLehigh University
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Roger N. Nagel © 2006
Individual and Team ExerciseShare your answers with your team
1. For USA and China cultures form a team consensus and prepare to report it.
2. For organizations A and Organization B form a team consensus and prepare to report it.
3. Share your organizational culture today and in the future chart with our teammates.a. discuss the characteristics you desire to change and your
reasons for the changes. b. Provide feedback to each team member.c. identify a list of characteristics which several of you all feel
must change and prepare to report themd. Explain your groups reasons for each characteristic and
prepare to report them.
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Roger N. Nagel © 2006
Read about Organization A & B and Rate Them
highlowAgilitylow
moderatehighhighhighlowhigh
Organization BNagel Opinion
highStabilitylowAggressivenesslowTeam orientationlowPeople orientationlowOutcome orientationhighAttention to detaillowInnovation and risk taking
Organization ANagel Opinion
Characteristics:(high, moderate, low)
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Roger N. Nagel © 2006
Exercise A Team ReportsFor USA and China cultures form a team consensus chart with typical organizational culture in each countryFor organizations A and organization B form a team consensus chart with organization A & B ratingsYour organizational culture today and in the future common list of characteristics which several of you feel must change
Explain your reasons for each characteristic
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Roger N. Nagel © 2006
Do Organizations Have Uniform Cultures?Dominant Culture
Expresses the core values that are shared by a majority of the organization’s members.
Subcultures
Minicultures within an organization, typically defined by department designations and geographical separation.
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Roger N. Nagel © 2006
Do Organizations Have Uniform Cultures?
Core Values
The primary or dominant values that are accepted throughout the organization.
Strong Culture
A culture in which the core values are intensely held and widely shared.
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Roger N. Nagel © 2006
What Do Cultures Do?
Culture’s Functions:1. Conveys a sense of identity for its members.
2. Facilitates the generation of commitment to something larger than self-interest.
3. Enhances the stability of the social system.
4. Serves as a sense-making and control mechanism for fitting employees in the organization.
Culture’s Functions:1. Conveys a sense of identity for its members.
2. Facilitates the generation of commitment to something larger than self-interest.
3. Enhances the stability of the social system.
4. Serves as a sense-making and control mechanism for fitting employees in the organization.
Page 489Page 489
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Roger N. Nagel © 2006
What Do Cultures Do?
Can define the boundary between one organization and others.When there are cultural incompatibilities
Globally this is can significant concernConsider our USA vs. China chart
IN ChinaYour Opinion
moderateAgilitymoderateStabilitymoderateAggressivenessmoderateTeam orientationmoderatePeople orientationmoderateOutcome orientation
lowAttention to detail
highInnovation and risk taking
IN USA Nagel Opinion
Characteristics:(high, moderate, low)
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Roger N. Nagel © 2006
Which if any should be dealt withIntegrated
Collaborator
sometimesAgility
Collaborator
StabilityAggressiveness
Team orientation
People orientation
Outcome orientation
Attention to detail
Innovation and risk taking
subsidiarySupplierTo be
Nagel view
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Roger N. Nagel © 2006
What Do Cultures Do?
Culture as a Liability:1. Barrier to change.
2. Barrier to diversity
3. Barrier to collaboration
4. Barrier to acquisitions and mergers
Culture as a Liability:1. Barrier to change.
2. Barrier to diversity
3. Barrier to collaboration
4. Barrier to acquisitions and mergers
Page 491Page 491
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Roger N. Nagel © 2006
How Employees Learn Culture
• Leaders as role models• Behavior of others• Stories• Rituals• Material Symbols• Language
• Leaders as role models• Behavior of others• Stories• Rituals• Material Symbols• Language
Page 498Page 498
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Roger N. Nagel © 2006
Creating An Ethical Organizational Culture
Characteristics of Organizations that Develop High Ethical Standards
High tolerance for riskLow to moderate in aggressivenessFocus on means as well as outcomes
Managerial Practices Promoting an Ethical CultureBeing a visible role model.Communicating ethical expectations.Providing ethical training.Rewarding ethical acts and punishing unethical ones.Providing protective mechanisms.
Page 500Page 500
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Roger N. Nagel © 2006
Creating a Customer-Responsive Culture
Shaping Customer-Responsive Cultures1. The types of employees hired by the organization.2. Low formalization: the freedom to meet customer
service requirements.3. Empowering employees with decision-making
discretion to please the customer.4. Good listening skills to understand customer
messages.5. Employees who engage in organizational
citizenship behaviors.Page 501Page 501
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Roger N. Nagel © 2006
Creating a Customer-Responsive Culture
Managerial ActionsActionable vision
» Lead by conveying a customer-focused vision Role model
» demonstrating commitment to customers.» Provide ongoing recognition for employees who make
special efforts to please customersProvide an Agile organizational structure
» Empower employees to make appropriate decisions
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Roger N. Nagel © 2006
Personal Exercise Choice A
What cultural changes should you be making to be a more effective in meeting your global business goals1. Identify your global business goals2. Is our current culture an asset or a deficit in
meeting your global business goals3. Explain how and or why (your answer in 2. above)
a. develop a plan for changes you need to make.b. Identify benefits you expect, metrics for themc. Obstacles you will face and how to overcome them.
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Roger N. Nagel © 2006
Personal Exercise Choice B
What cultural changes should you be making to be a more effective in meeting your domestic business goals1. Identify your domestic business goals2. Is our current culture an asset or a deficit in
meeting your domestic business goals3. Explain how and or why (for your answer in 2.
above) a. develop a plan for changes you need to make.b. Identify benefits you expect, metrics for themc. Obstacles you will face and how to overcome them.
CSE & Enterprise Systems CenterLehigh University
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Roger N. Nagel © 2006
XIE XIERoger N. Nagel
Wagner Professor and Senior Fellow CSE Department &
The Enterprise Systems Center at Lehigh University 200 West Packer Avenue
Bethlehem, Pennsylvania, 18015(610) 758-4086, (610) 868-0402 [fax]