Managing Culture, Design and Change

Transcription

1 Gloryson Chalil Managing Culture, Design and Change Session 8: Organizational Culture November 27, 2012 Managing Culture, Design and Change 1

2 Organizational Structure: Specialization& Coordination Informal Network Informal organization as the nervous system Formal organization is designed for standard modes of operation Network analysis: Advise network: problem solving, technical info. Trust network: political information, time of crisis Communication network: talk about work related matters on regular basis November 27, 2012 Managing Culture, Design and Change 2

3 Set of shared values and norms that control organizational members interaction with each other and with people outside the organization. It controls the way - the members make decisions - they interpret the environment - they process the information - they behave November 27, 2012 Managing Culture, Design and Change 3

4 Facets of Organizational Culture November 27, 2012 Managing Culture, Design and Change 4

5 Artifacts of Organizational Culture Physical Structures Language Rituals and Ceremonies Stories and Legends Organizational Culture Values/Norms Assumptions November 27, 2012 Managing Culture, Design and Change 5

6 Values Manifestation Realization Assumption Interpretation Artifacts Symbolization Symbols November 27, 2012 Managing Culture, Design and Change 6

7 Organizational Values Organizational Values Terminal Values Desired end states or outcomes Instrumental Values Desired modes of behavior Specific norms, rules and SOP s November 27, 2012 Managing Culture, Design and Change 7

8 Competing value framework FLEXIBILITY Human Relations Model Clan Culture Human Resource Development Open Systems Model Adaptability Culture (M) Flexibility, Readiness (M) Cohesion Morale (E) Growth, Resource acquisition INTERNAL (M) Communication Information Mgmt. (E) Stability Control EXTERNAL (E) Productivity, Efficiency (M) Planning, Evaluation Goal setting Internal Process Model Bureaucratic Culture STABILITY Rational Goal Model Mission Culture November 27, 2012 Managing Culture, Design and Change 8

9 Artifacts of Organizational Culture Physical Structure -- May shape and reflect culture -- Office design conveys cultural meaning -- Furniture, office size, wall hangings Organizational Language -- Phrases and special vocabulary as cultural symbols Rituals and Ceremonies -- Programmed routines, Ceremonial rites (Rites of passage, Rites of integration, Rites of enhancement) Stories and Legends November 27, 2012 Managing Culture, Design and Change 9

10 Organizational Subcultures Dominant culture and Subculture Reasons for subcultures Subcultures as countercultures Whether we should encourage/discourage it? Functions of subcultures Surveillance and critique over dominant order Spawning ground for emerging values November 27, 2012 Managing Culture, Design and Change 10

11 Strong and Weak Cultures Rigid constraining rules Dark blue suits, black shoes (lace ups) Constant evaluation of performance Obedience to company rules, norms Respect for partners and tradition Main business is accounting Whether strong culture is always good? November 27, 2012 Managing Culture, Design and Change 11

12 Culture as a source of C.A. Whether Tata Steel has a culture that will lead to competitive advantage? Culture that is valuable Culture that is rare Culture that is imperfectly imitable What does it mean with respect to Tata Steel? Today s valuable culture may become a liability tomorrow November 27, 2012 Managing Culture, Design and Change 12

13 Transmitting Organizational Culture Socialization: Process of learning and internalizing the values and norms of the organization (members) Collective Formal Sequential Fixed Serial Divestiture Individual Informal Random Variable Disjunctive Investiture Exercise: Identify the process followed by your firm November 27, 2012 Managing Culture, Design and Change 13

14 Transmitting Organizational Culture Stages of Socialization: Pre-Employment Stage Outsider Gathering information Forming psychological contract Encounter Stage Newcomer Testing expectations Role Management Insider Changing roles and behavior Resolving conflicts November 27, 2012 Managing Culture, Design and Change 14

15 Source of Organizational Culture Property rights system Organizational ethics Organizational Culture Organizational structure Characteristics of the people within November 27, 2012 Managing Culture, Design and Change 15

16 Source of Organizational Culture Characteristics of the people within - Philosophy of the founder(s) - Kinds of people getting attracted Changing the culture by changing the people - One reason for VRS - Example of P&G (Jager, 1999) Consensus, obedience to hierarchy, respect to authority & participative decision making to. Stretch, innovation and speed November 27, 2012 Managing Culture, Design and Change 16

17 Source of Organizational Culture Organizational Ethics The moral values, believes and rules that determine the appropriate way for the dealings of the stakeholders Social ethics Organizational Ethics Professional ethics Individual ethics November 27, 2012 Managing Culture, Design and Change 17

18 Source of Organizational Culture Property Rights The rights given to the members to receive and use organizational resources Managers Rights: Large salary, decision making, control over organizational resources, stock options, golden parachutes Work force rights? Long term employment, participation in decision making, layoff notification, pension/gratuity, bonus, retrenchment compensation etc., How to assign property rights? ICICI new mergers/acquisitions November 27, 2012 Managing Culture, Design and Change 18

19 Source of Organizational Culture Organizational Structure Formal system of task and authority relationships that an organization establishes to control its activities Different structures giving rise to different cultures Mechanistic End state: Stability/Predictability Cautious Obedient Respecting traditions Organic structures Flexibility/Innovation Creative Risk taking Examples of HP, 3M Vs Army, Nuclear power plants November 27, 2012 Managing Culture, Design and Change 19