Organization Theory n Design

Organizational Culture n ethical Values

Ch. 10

By Kaleem a. Barlas

16-2

Learning Objectives Organizational CultureWhat is culture, emergence n purpose of culture, interpreting culture

Organizational design n Culture The adaptability culture, the mission culture, the clan culture, the

bureaucratic culture, cultural strength n organizational sub-culture

Organizational culture, Learning n Performance, Ethical Values n Social Responsibility

Sources of individual ethical principles, managerial ethics n social responsibility, does it pay to be good

Sources of Ethical Values in Organizations Personal Ethics, Orgs. Culture, Orgs. Systems, External Stake holders

16-3

Continued How leaders shape culture n ethicsValue-based leadership, Formal Structure n Systems

16-4

Organizational Culture

What is Culture?• Set of values

• Guiding beliefs

• Understanding that is shared by all the members

• Taught to new members• It represents the un-written feeling part of the

orgs.

16-5

Continued Visible culture • The way people dress• They way they act• Symbols• Stories n ceremonies • People share

16-6

Continued Invisible culture • Values • Assumptions • Beliefs• Thought process

16-7

Emergence n Purpose of Culture • Culture provides members with sense of orgs. Identity• Generates in them the commitment for their beliefs n values • It generally begins with founders • Early leaders who implement;

1) Ideas

2) Values

3) Vision

4) Philosophy

5) Business strategies

16-8

continued

Culture serves two cortical functions • To integrate members so that they know how to

relate to one an other• To help orgs. Adapt to external environment • Internal integration means collective identity• External adaptation how orgs. Deals with

outsiders • guides employees DM in absence of written

rules

16-9

Interpreting Culture • Rites n Ceremonies• Celebrating special events • Sharing an important understanding• Rites of passage facilitate employees into new social roles • Rites of renewed reflect training n development activities• Rites of integration create common bond n good feelings

Stories

16-11

• Narratives based upon true events• About co. heroes who served as models• Legends • Myths

Example

Employees at IBM are told a story about a female security guard who stopped IBM Chairman to enter the premises because he was not carrying security tag. She was appreciated by the chairman rather than be reprimanded

stories

16-12

Symbols

An other tool for interpreting culture is

Symbols. Ceremonies , stories, slogans,

And rites are all symbols. Physical

Symbols like special parking lots,

Computers , can interpreted what

Culture is being followed

16-13

Language

The final technique for influencing culture is language. Many co;s. use specific sayings , slogans, jargons, to convey special meaning to employees

Like Savour in Pakistan used for rice, sirf tum e tu ho etc.

Organization Design n CultureThe correct relationship among cultural value,

orgs. Strategy, structure, and the environment can enhance orgs performance

16-14

Contiuned • Culture can be assessed by many dimenssions such as;• Collaborations vs. isolation among people n departments• Importance of control n where the control is focused• Orgs. Time orientation short term or long term• The extent to which the competitive environment requires flexibility

or stability • The extent to which the org,s strategic focus or strengths are

The Adaptability Culture

16-15

• Focus on external environment • Flexibility n change to meet customers

needs • Entrepreneurial values, norms, n beliefs• IBM has shifted to adaptability culture to

support a new strategy that requires flexibility, speed n innovation

• Theta now believe in team work, creativity n innovation

16-16

The Mission Culture • The mission culture is focused

on clear vision, purpose n goals such as;

• Sales growth

• Profitability

• Market share

• Employees achieving orgs goals are duly rewarded

16-17

The Clan Culture • Taking care of employees • They must have what ever they need

to perform • Employees satisfaction is key factor

For any business success

Employees commitment is also very important

16-18

• internal focus for consistency, n stability

• Methodical approach• Established policies• High level of integration n

involvement of lower levels

The Bureaucratic Culture

Cultural Strength n Orgs. Sub-culture

16-19

• Strength mean degree of agreement among employees about importance of specific values

• If wide spread consensus exists the culture is strong

• Otherwise its weak• Strong cultures is linked with

linked with symbols, ceremonies' n stories

16-20

Organizational Culture , Learning n Performance

Culture can play a role in orgs. Learning, innovation, n facing challenges

It energizes, motivates, people to achieve higher standards of performance

It leads to collectivism,

Equality, change management

N breaking status quo

16-21

Ethical values n Social Responsibility

• Sources of individual ethical principles

• Ethics are personal • What is wrong n what is

right

History , local environment,

Society, individual ethics

16-22

Managerial Ethics n CSR

Strict ethical standards are becoming

Part policies n informal culture of

Many organizations its becoming legal requirement

16-23

Does it pay to be good • Sources of ethics • Personal ethics• Orgs. Culture • Orgs. System• External stake holders• How leaders shape culture n ethics• Value-based leadership• Formal structure n systems• Structure • Disclosure mechanism• Code of ethics • Training program S