Organizational Culture, Socialization, and Mentoring Chapter 3 McGraw-Hill/Irwin Copyright © 2010 by the McGraw-Hill Companies, Inc. All rights reserved. © 2008The McGraw-Hill Companies, Inc. All rights reserved. Ch. 3 Learning Objectives 1. Define organizational culture and discuss its three layers. 2. Discuss the difference between espoused and enacted values. 3. Describe the four functions of organizational culture. 4. Discuss the four types of organizational culture associated with the competing values framework. 5. Summarize the seven conclusions derived from research about the outcomes associated with organizational culture. 3-2 Ch. 3 Learning Objectives 6. Review the three caveats about culture change. 7. Summarize the methods used by organizations to change organizational culture. 8. Describe the three phases in Feldman’s model of organizational socialization. 9. Discuss the various socialization tactics used to socialize employees. 10. Explain the four developmental networks associated with mentoring. 3-3 Organizational Culture Shared values and beliefs that underlie a company’s identity What types of organizational cultures have you worked in? How does the organization’s culture manifest itself? 3-4 Understanding Organizational Culture Antecedents Organizational Culture • Founder’s values • Industry & business environment • National culture • Senior leaders’ vision and behavior • Observable artifacts • Espoused values Organizational Structure & Practices • Reward systems • Organizational design • Socialization • Mentoring • Decision making • Group dynamics • Communication • Basic assumptions Organizational Outcomes Group & Social Processes Collective Attitudes & Behavior • Effectiveness • Work attitudes • Innovation & stress • Job satisfaction • Influence & empowerment • Leadership • Motivation 3-5 Layers of Organizational Culture Observable artifacts •Examples? Values – enduring belief in a mode or conduct or end-state •What is the difference between espoused and enacted values? 3-6 Layers of Organizational Culture Values (con’t) •Sustainability – ability to make a profit without sacrificing the resources of its people, the community and the planet •Safeco, Microsoft, and Unilever Basic Assumptions •Certain actions would be inconceivable in this culture 3-7 Test Your Knowledge Which of the following is most resistant to change? a. Observable artifacts b. Espoused values c. Enacted values d.Basic assumptions 3-8 Four Functions of Organizational Culture 3-9 Your Opinion Do organization’s have predominantly one culture? •A=Yes, B=No 3-10 Competing Values Framework 3-11 Competing Values Framework Clan Culture: internal focus, values flexibility • Valero Energy; Southwest Airlines; Nucor • “employee focused” Adhocracy Culture: external focus, values flexibility • GE, W.L. Gore, & Intel • Adaptable to changes in marketplace 3-12 Competing Values Framework Market Culture: external focus, values stability and control • Home Depot - Rewards results, productivity, customer satisfaction Hierarchy Culture: internal focus, values stability and control • Exelon; Dell • Efficiency, timeliness, and reliability are measured 3-13 Your Opinion Is there one best type of organizational culture? • A=Yes, B=No Why or why not? 3-14 Outcomes Associated with Culture 3-15 Process of Culture Change Ensure alignment of vision, strategic plans, and culture • Vision: long-term goal describing “what” an organization wants to become • Strategic plan: A long-term plan outlining actions needed to achieve desired results 3-16 Embedding Culture in Organizations Formal statements of organizational philosophy • Mission, vision, values Design of physical space • Open floor plan ~ Intel Slogans & sayings • Progress is our most important product. ~ General Electric 3-17 Embedding Culture in Organizations Deliberate role modeling, training Explicit rewards, status symbols • Measuring “How” not just “What” Language • Jargon that defines our culture, creates shared understanding Stories, legends, myths • The Nike Story: Just Tell It (Fast Company, 2000) 3-18 Embedding Culture in Organizations Organizational activities, processes, or outcomes leaders attend to Leader reactions to critical incidents Workflow and organizational structure Organizational systems and procedures Organizational goals and criteria for managing human resources 3-19 Organizational Socialization Phases 1) Anticipatory socialization learning that occurs prior to joining the organization Perceptual and Social Processes Anticipating realities about the organization and the new job Anticipating organization’s needs for one’s skills and abilities Anticipating organization’s sensitivity to one’s needs and values 3-20 Organizational Socialization Phases 2) Encounter values, skills, and attitudes start to shift as new recruit discovers what the organization is truly like Perceptual and Social Processes Managing lifestyleversus-work conflicts Managing intergroup role conflicts Seeking role definition and clarity Becoming familiar with task and group dynamics 3-21 Organizational Socialization Phases 3) Change and acquisition recruit masters skills and roles and adjusts to work group’s values and norms Perceptual and Social Processes Competing role demands are resolved Critical tasks are mastered Group norms and values are internalized 3-22 Organizational Socialization Outsider Phases 1) Anticipatory socialization 2) Encounter 3) Change and acquisition Behavioral Outcomes Socialized Insider Affective Outcomes Performs role assignments Generally satisfied Remains with organization Internally motivated to work Spontaneously innovates and cooperates High job involvement 3-23 Socialization Tactics 3-24 Mentoring Mentoring is the process of forming and maintaining developmental relationships between a mentor and a junior person 3-25 Functions of Mentoring Career Functions • In what ways can mentoring assist in one’s career progression? Psychological Functions • How can mentoring serve a psychological function? 3-26 Developmental Networks Associated with Mentoring Developmental Relationship Strength Developmental Relationship Diversity Weak Ties Strong Ties • D2 Low Range • D2 Key: D1 • •P D1 • Receptive D1 • High Range D1 • • P Opportunistic D = developer P = protege Traditional • D2 D3 • •P • D2 • P • D4 D3 • • D4 Entrepreneurial 3-27