C H A P T E R 1 4 : O R G A N I Z AT I O N A L C U LT U R E March 27 2023 CHAPTER 12 REVIEW • Leadership: Influencing, motivating, and enabling others to contribute toward the effectiveness and success of the organization they belong in. • Four main theories and perspectives on leadership. 1. Transformational 2. Managerial 3. Implicit 4. Personal attributes • Cross Cultural and gender differences in leadership. ELEMENTS OF O R G A N I Z AT I O N A L C U LT U R E • Organizational culture has a powerful influence on a companies performance. • Organizational Culture: The values and assumptions shared within an organization. • Think of it as the companies “DNA” and “right way” of doing things. • Values are stable, evaluative beliefs that guide our preferences for outcomes or courses of action in a variety of situations. • Shared assumptions are non-conscious, taken for granted perceptions of behaviour that are considered the correct way to think towards problems and opportunities. TYPES OF CULTURES • Research states there can be many different types but there are seven common or universal ones. • 1. Innovation • 2. Stability • 3. Respect for people • 4. Outcome orientation • 5. Attention to detail • 6. Team Orientation • 7. Aggressiveness PROBLEM WITH RESEARCH • Research assumes that organizations have clear and defined cultures that are easy to see. • There could be elements of multiple cultures in an organization. • Organizations could also have subcultures, countercultures, and a variety of others. CULTURE AND ARTIFACTS • Shared values and assumptions are not easily measured through surveys or value statements. Artifacts are a way of demonstrating culture. • Artifacts: The observable symbols and signs of an organization’s culture. • Artifacts can be demonstrated through 1. Stories 2. Organizational language 3. Rituals/ceremonies 4. Physical structures/symbols IS OB CULTURE IMPORTANT? • “Culture is the secret ingredient to every great organization” • Under the right conditions companies are effective when they have strong cultures because of three important functions. • 1. Control system 2. Social glue 3. Sense-making ORGANIZATIONAL CULTURE ACTIVITY • 1. How would you describe the organizational culture in your current or most recent job? • 2. What is more important in life. A good culture or strong leadership? C H A P T E R 1 4 : O R G A N I Z AT I O N A L C U LT U R E March 29 2023 CULTURE CONTINGENCIES • The benefits of a strong culture depend on whether it’s values and assumptions are aligned with the external environment. • This alignment helps employees become more motivated and have clearer role perceptions. • The second contingency is making sure the culture is not cult like. • Finally having an adaptive culture helps with managing the external environment. MERGING ORGANIZATIONAL CULTURES Mergers and acquisitions often fail because the merging organizations have a culture clash. Organizational leaders can minimize cultural clashes by conducting a bicultural audit where they diagnose cultural relations between companies and determine if cultural clashes will occur. There are four different strategies for merging different organizational cultures. MERGING ORGANIZATIONAL CULTURES • 1. Assimilation • 2. Deculturation • 3. Integration • 4. Separation CHANGING AND STRENGTHENING CULTURE • Desired culture needs to be modelled and demonstrated through the actions of founders and leaders. • Align artifacts with the desired culture • Introduce culturally consistent rewards/recognition. • Support workforce stability and communication. • Use attraction, selection, and socialization for cultural “fit”. ORGANIZATIONAL SELECTION • Organizational socialization: The process by which individuals learn the values, expected behaviours, and social knowledge necessary to assume their roles in the organization. • It is a valuable set of practices to help companies change and strengthen their organizational culture. • It can help change employee values to be more aligned with the companies culture. • Very vital for newcomers. ORGANIZATIONAL SOCIALIZATION • There is a huge learning element to organizational socialization. • Employees tend to have a psychological contract and this is where their beliefs about the terms and conditions of a reciprocal exchange agreement between the employee and company. • Relational contracts are more powerful than transactional contracts. CLASS REVIEW/SUMMARY • 1. When merging organizational cultures what is the difference between assimilation and integration? • 2. In 2-3 sentences how would you summarize the organizational culture in your current or most recent job?