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Microsoft PowerPoint Presentation to Accompany
Organizational
BehaviorSEVENTH EDITION
Gregory Moorhead and Ricky W. Griffin
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Chapter 18
Organization Culture
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Learning Objectives
Define organization culture and explain how itaffects employee behavior.
Summarize the historical development oforganization culture.
Describe two different approaches to culture inorganizations.
Identify two emerging issues in organizationculture.
Describe the relationships among organizationculture, creativity, and innovation.
Discuss the key elements of managing theorganization culture.
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The Nature of Organization Culture
What Is Organization Culture?
There is no single widely accepted definition.
The set of values that helps the organizationsemployees understand which actions areconsidered acceptable and which actions are
considered unacceptable.
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The Nature of Organization Culture[continued]
Definitions of culture have three things incommon:
They define culture in terms of the values thatindividuals in organizations use to prescribe
appropriate behavior. They assume that values are usually taken for
granted.
They emphasize the stories and other symbolic
means through which the values typically arecommunicated.
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Historical Foundations
Social science disciplines have contributedto the understanding of organizationculture. These disciplines include:
Anthropology (the study of human cultures).
Sociology (the study of people in socialsystems).
Social Psychology (the study of groups and
the influence of social factors on individuals). Economics (attempts to link the cultural
attributes of firms with their performance).
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Culture Versus Climate
Culture The study of organizational culture was based
in anthropology and sociology.
Typically refers to:
The historical context of a situation and
The impact of the context on the behavior ofemployees
Is the means through which employees learnand communicate what is acceptable andunacceptable in the organization.
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Culture Versus Climate [continued]
Climate The study of climate was based in psychology.
Usually refers to:
Current atmosphere in the organization and
The linkage among work groups, employees, andwork performance
Is more easily manipulated than culture.
Does not deal with values and norms.
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Creating the Organization Culture
Creating an organizations culture Is the process of linking its strategic values
with its cultural values, much as the structureof the organization is linked to its strategy.
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Table 18.2 Creating Organization Culture
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Creating the Organization Culture
Step 1: Formulate Strategic Values
Strategic values are the basic beliefs about anorganizations environment that shape its strategy.
Step 2: Develop Cultural Values
Cultural values are morals that employees need tohave and act on for the organization to carry out itsstrategic values.
Step 3: Create Vision
After developing its strategic and cultural values, theorganization must establish a vision of theorganizations direction.
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Creating the Organization Culture[continued]
Step 4: Initiate Implementation Strategies Implementation strategies cover many factors,
from developing the organization design torecruiting and training employees who share
the values and will carry them out.
Step 5: Reinforce Cultural Behavior
The final step is to reinforce the behaviors of
employees as they act out the cultural valuesand implement the organizations strategies.
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Approaches to Describing Organizational Culture
The Ouchi Framework William G. Ouchi developed a list of seven points to compare the
cultures of U.S. firms, Japanese firms, and Type Z firmsTable 18.3 The Ouchi Framework
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The Ouchi Framework: Attributes ofa Type Z Firm
Commitment
Is committed to retaining employees.
Evaluation
Assesses workers long term performance based onboth qualitative and quantitative information.
Careers
Emphasizes broad rather than narrow career paths.
Control
Exercises control through informal, implicitmechanisms.
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The Ouchi Framework: Attributes ofa Type Z Firm [continued]
Decision making Requires that decision making occur in groups and be
based on full information sharing and consensus.
Responsibility Expects individual to take responsibility for decisions.
Concern for people
Emphasizes a holistic concern for people.
Type Z and performance Cultural differences can account for performance
differences in companies.
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The Peters and Waterman ApproachTom Peters and Robert Waterman
Sampled highly successful U.S. firms and
sought to describe management practices thatled to their success.
Published In Search of Excellencewhich ledto the development of their list of excellentorganization values
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The Peters and Waterman Framework Table 18.4
E i I i O i ti
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Emerging Issues in OrganizationCulture
Innovation The process of creating and doing new thingsthat are introduced into the marketplace asproducts, processes, or services.
Innovation involves every aspect of theorganization: research and development,manufacturing, and marketing.
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Emerging Issues in OrganizationCulture [continued]
Types of Innovation
Radical innovation is a major breakthrough that
changes or creates whole industries. Systems innovation creates a new functionality by
assembling parts in new ways.
Incremental innovation continues the technical
improvement and extends the applications ofradical and systems innovation.
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Emerging Issues in OrganizationCulture [continued]
Innovation (continued)
New Ventures
Intrapreneurship is entrepreneurial activity that
takes place within the context of a largeorganization.
Corporate Research
Internal innovations that support current
businesses by providing incremental innovationsand keeping products technologically advanced.
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Emerging Issues in OrganizationCulture [continued]
Empowerment The process of enabling workers to set theirown work goals, make decisions, and solveproblems within their sphere of responsibility
and authority.
Procedural Justice
The extent to which the dynamics of an
organizations decision-making processes arejudged to be fair by those who are mostaffected by them.
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Managing Organizational Culture
Taking Advantage of the Existing Culture
Developing an understanding of howorganizational values operate in the firm.
Using the values in managing othersbehaviors in the firm.
Communicating the values to lower-level
managers for use as guides to their decisionmaking.
O l l
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Managing Organizational Culture[continued]
Teaching the Organizational Culture
Socialization
Is the process through which individuals become
social beings.
Organizational Socialization
Is the process through which employees learnabout their firms culture and pass their knowledgeand understanding onto others.
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Managing Organizational Culture:Changing the Organizational Culture
[continued]Managing Symbols
Organizational culture is understood andcommunicated through the use of stories andother symbolic media.
Managers should substitute stories and mythsthat support new cultural values for those that
support old ones.
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Managing Organizational Culture:Changing the Organizational Culture
[continued]The Difficulty of Change
Increases with managers tendencies to revertto old ways, causing lower-level employees to
lose faith in the change.
The Stability of Change
The self-reinforcing nature of value systems
makes change difficult to implement. New ideas and beliefs can be as stable and
influential as old ones.