Social System and Organizational

Culture

REPORTER: RIZA PODIRSKY

ObjectivesTo be able to understand and reflect:

• Social System • Social Cultures and their Impacts on

our behavior• The Value of Cultural Diversity• Importance of Role knowledge• Status and Status Symbols• Organizational Culture

“REFLECTION” ActivityPositive Very Industrious I like you You’re doing it wellNegative Your lazy! That is useless! I don’t like you!

Understanding a Social System

WHAT IS A SOCIAL SYSTEM?

Social System• is a “complex” set of human

relationships interacting in many ways

Social System Presentation:

Why Complex?1. behavior of one affects the behavior

of others

2. It is an “open system”

Social Equilibrium/Disequilibrium

Equilibrium• when there is a

dynamic working balance among its interdependent parts

Disequilibrium

• When the interdependent parts system are working against each other

Psychological and Economic Contracts

• ECONOMIC CONTRACT- where time, talent, energy are exchanged for wages, hours and reasonable working conditions.

• PSYCHOLOGICAL CONTRACT –the conditions of each employee’s psychological involvement-both contributions and expectations- with the social system

The Result of the Psychological Contract & The Economic Contract

Economic Contract

Psychological Contract

Employer:• Expected

Gains• Rewards

offered

Employee:If expectations are met: Job satisfaction High performance LoyaltyIf not:The opposite

Employer:If expectations are met:• Employee retention• Possible promotionIf not: Corrective

Action;discipline Possible separation

Employee:• Expected

Gains• Intended

Contributions

Psychological contract builds upon the concept of “exchange theory’Whenever a continuing relationship exists between two parties, each person regularly examines the rewards and costs of that interaction. In order to remain positively attracted to the relationship, both parties must believe that a net positive ratio (rewards to costs) exists from their perspective.

Social Culture

Social CultureAn environment of human-created beliefs, customs, knowledge and practices

• SOCIAL- is the behaviour of people when they act in accordance with the expectations of others

• CULTURE-is the conventional behavior of her society and it influences all her actions even though it seldom enters her conscious thoughts

Culture differencesSome of the ways in which culture differ includes:• Patterns of decision making• Respect for authority• Treatment for females• Accepted leadership styles**Manager’s must know

Cultural Diversity

Cultural Diversity

Job related-(organizationally created)

• Types of work • Rank• Physical

proximity to one another

Non job related-(arise primarily from individual’s personal background)• Ethnicity

• Culture• Socioeconomic• Sex • race

Culture Diversity• Differences need to be recognized,

acknowledged, appreciated, and used to collective advantage.

***• Culture adaptable • Culture dependent

Social Culture Values

Social Culture ValuesWork ethics

• Views work as very important thing in life

• Views work as a desirable goal

• Likes work and is satisfied with it

Social Responsibility

• Is the recognition that organizations have significant influence on the social system and that influence must be properly considered and balanced in all organizational actions.

Work Ethics Declination1. The proportion

of employees having strong work ethic varies sharply among sample groups

2. The general level of the work ethic has declined gradually over many decades.

RoleWhat is a role?

Role• is a pattern of expected actions• It reflects a person’s position with its

accompanyingRights and obligationsPower and responsibility

Function of Role in Social System:

“To anticipate other’s behavior”

Figure 4.2 Each employee performs many roles

A leader An adviser A staff personA Committee chairperson

A specialist A golfer

A follower A worker A club president

A stockholder A consumer An accountantA spouse A subordinate A studentA parent A musician And more!!

Things to know• Role Perception• Role Flexibility• Role conflict• Role ambiguity• Importance of mentorship program

Status

Status is social rank!!!• The amount of the recognition, honor,

esteem, and acceptance given to a person

Terms to rememberStatus System/hierarchyStatus anxietyStatus deprivation

Status Relationship(Effect of Status)

High status people • More influential• Received more privileges• More participative in group activities• Interact more• Opportunities for a better role in an

organization

Status Symbols• are the visible, external things that attach to

a person or workplace and serve as evidence of social rank

• are most in evidence among different levels of managers

Typical Symbols of Status• Furniture• Interior decorations• Location of workplace• Facilities at workplace• Quality and newness of equipment

used

Typical Symbols of Status• Type of clothes normally worn• Privileges given• Job title or organizational level• Employees • Degree of financial discretion• Organizational membership

Sources of Status• Person’s abilities• Job skills • Type of work also• Amount of pay• Seniority• Age • stock options

Organizational Culture

What is it?

Organizational Culture• set of shared values and norms that

characterise a particular organization• organizational culture is a set of shared

mental assumptions that guide interpretation and action in organizations by defining appropriate behavior for various situations. (Ravasi and Schultz (2006) )

Importance of OC• Gives an organizational identity to employee• Provides a sense of security to its members• Helps newer employees interpret what goes

on inside the organization• Helps stimulate employees enthusiasm for

their tasks

Characteristics of Cultures• Distinctive• Stable• Implicit• Symbolic • No one type is

best

• Integrated• Accepted• A reflection of top

management• Subcultures• Of varying

strength

Communicating and Changing Culture• People are generally more willing to

adapt and learn when they want to please others, gain approval and learn about their new work environment.

• Socialization affects employees• Individualization affects the

organization

Four Combinations of Socialization and Individualization

Conformity

Rebellion

Creative Individualism

Isolation

High

HighLow

Low Individualization(Impact of employee on

organizational culture deviation from norms)

Socialization(Impact of

organizational culture on employee

acceptance of norms)

References• Newstrom 12th edition• Wikipedia• Merriam online dictionary• http://ph.news.yahoo.com/company-culture-

giving-032710984--finance.html

Synthesis“Life is a series of natural and

spontaneous changes. Don't resist them; that only creates sorrow. Let

reality be reality. Let things flow naturally forward in whatever way

they like.” 

Lao Tzu

Thank you for the time MAY GOD BLESS US ALL