1 Shaping Culture and Values Functions of Culture in business 1.Culture provides a sense of identity to members and increases commitment. 2.Culture provides.

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Shaping Culture and Shaping Culture and

ValuesValues

Functions of Culture in businessFunctions of Culture in business

1. Culture provides a sense of identity to members and increases commitment.

2. Culture provides a way for employees to interpret the meaning of organizational events.

3. Culture reinforces the values of the organization.

4. Culture serves as a control mechanisms for shaping behavior.

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The Concept of cultureThe Concept of culture

• Sir Edward Burnett Taylor (1832-1917)

• First alluded to in the Hawthorne studies by Elton Mayo

-established that workplaces are social environments

• The topic of corporate culture emerged in the 1970s

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Behavioral psychologyBehavioral psychologySociologySociology

Organization behaviorOrganization behaviorCommunicationCommunication

The wheel of culture.

An interdisciplinary analysis Culture Involves:

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CultureCulture

The set of key values, assumptions, understandings, and norms that is shared by members of an organization and taught to new members as correct

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Ex. 14.1Ex. 14.1 Levels of Corporate Culture Levels of Corporate Culture

Visible1. Artifacts such as

dress, office layout, symbols, slogans, ceremonies

Invisible

2. Expressed values, such as “The Penney Idea,” “The HP Way”

3. Underlying assumptions and deep beliefs, such as “people here care about one another like a family”

Deeper values and shared

understandings held by

organization members

Culture that can be seen at the surface level

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Importance of CultureImportance of Culture

• It integrates members so that they know how to relate to one another. (Internal)

– Guides day-to-day work– Determines how communication occurs in

the workplace – What behavior is acceptable– How power and status are allocated

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Importance of CultureImportance of Culture

• It helps the organization adapt to the external environment. (External)– How organization meets goals and deals with

outsiders– How organization responds to

customers/competitors

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Culture StrengthCulture Strength

The degree of agreement among employees about the importance of specific values and ways of doing things

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Ex. 14.2Ex. 14.2 Adaptive Versus Unadaptive Cultures Adaptive Versus Unadaptive CulturesAdaptive

Organizational CultureUnadaptive

Organizational Culture

Visible Behavior Leaders pay close attention to all their constituencies, especially customers, and initiate change when needed to serve their legitimate interests, even if it entails taking some risks

Managers tend to behave somewhat insularly, politically, and bureaucratically. As a result, they do not change their strategies quickly to adjust to or take advantage of changes in their business environments

Expressed Values Leaders care deeply about customers, stockholders, and employees. They also strongly value people and processes that can create useful change (e.g., leadership initiatives up and down the management hierarchy)

Managers care mainly about themselves, their immediate work group, or some product (or technology) associated with that work group. They value the orderly and risk-reducing management processes much more highly than leadership initiatives

Underlying Assumption

Serve whole organization, trust others

Meet own needs, distrust others

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Culture GapCulture Gap

• The difference between desired and actual values and behaviors– Exists in all organizations to some degree– Must pay attention to when people are

adhering to the wrong values– Difficulty in merging cultures

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High Performance CultureHigh Performance Culture

• Strong culture encourages adaptation

• Strong adaptive cultures often incorporate the following values– The whole is more important than the pars

and boundaries between parts are minimized– Equality and trust arte primary values– The culture encourages risk taking, change

and improvement

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Cultural LeadershipCultural Leadership

• Defines and uses signals and symbols to influence corporate culture– Articulates a vision for the organizational

culture that employees can believe in– The cultural leader heeds the day-to-day

activities that reinforce the cultural vision

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Ceremonies, Stories, and SymbolsCeremonies, Stories, and Symbols

Ceremonies– Planned activities that make up special events and

are generally conducted for the benefit of an audience

Stories– Narratives based on true events that are repeated

frequently and shared among employees

Symbols– A object, act, or event that conveys meaning to others

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Language, Selection, Socialization Language, Selection, Socialization and Daily Actionsand Daily Actions

• Specialized language – slogans or sayings to express key corporate values

• Selection – hiring the right people

• Socialization - the process by which a person learns the values, norms perspectives, and expected behaviors that enable him or her to successfully participate in the group or organization

• Daily actions – the signaling and support of important cultural values through a leader’s daily actions.

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Ex. 14.3Ex. 14.3 Four Corporate Cultures Four Corporate Cultures

External focus

Flexibility

Internal focus

Stability

Clan CultureValues: Cooperation

Consideration Agreement Fairness Social equality

Bureaucratic Culture

Values: Economy Formality Rationality Order Obedience

Adaptability CultureValues: Creativity

Experimentation Risk-taking Autonomy Responsiveness

Achievement Culture

Values: Competitiveness Perfectionism Aggressiveness Diligence Personal initiative

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EthicsEthics

The code of moral principles and values that governs the behavior of a person or group with respect to what is right and wrong

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Personal EthicsPersonal Ethics

• Employees learn from watching leaders

• Ethical leaders generate high trust and respect

• Based on courage, determination and self-sacrifice

• Must uphold commitment to values during difficult times

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Spiritual ValuesSpiritual Values

• Values and practices:– Integrity– Humility– Respect– Appreciation for the contributions of others– Fair treatment– Personal reflection

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Spiritual LeadershipSpiritual Leadership

• Create a vision through which organization participants experience a sense of spiritual expression through calling and membership

• Establish a corporate culture based on altruistic love

• Addresses followers’ higher order needs for membership and self-actualization

• Reduces negative feelings, emotions and conflicts