ORGANIZATIONAL BEHAVIORW W W . P R E N H A L L . C O M / R O B B I N ST E N T H E D I T I O N

Besides your textbook concepts, you will also learn to:Understand the role of organizational cultureVision, mission ,valuesDominant, culture/sub-culturesMerging culturesCreativity and innovation in workplaceOrganizational socializationKeeping culture alive

L E A R N I N G O B J E C T I V E S

The Basic Functions of Organizational CultureOrganizationalCulture/basic functionsProvides asense ofidentity formembersEnhancescommitmentto the organizationsmissionClairifiesandreinforcesstandardsof behavior

Core Organizational Values Reflected in CultureSensitivity to needs of customers and employeesFreedom to initiate new ideasWillingness to tolerate taking risksOpenness to communication options

Organizational Culture

Todays Mergers and Acquisitions: Will They be Tomorrows Culture Clashes?This bank

Citicorp

Bank America

Bank One

First UnionMerged with

Travelers

Nations Bank

First Chicago NBD

CorestatesTo become

Citigroup

Bankamerica

Bank One

First Union

Components of CreativitySkills inthe TaskDomainSkills inCreativeThinkingIntrinsicMotivation

Skills in Innovation Management: A Careful Balancing ActGoalsLinked tocorporatemissionbut notoverlyspecificReward SystemsGenerouslyand fairlyreward onescontributorsbut not sospecific asto connecteverything tomoneyTime PressureSenseofurgencybut nottoo urgent

The Process of InnovationStage 1

Settingthe AgendaStage 2

Settingthe StageStage 3

ProducingtheIdeasStage 4

Testing andImplementingthe IdeasStage 5

OutcomeAssessmentEndEndSuccessFailureProgressMotivationIndividualor TeamProductivityResourcesSkills

Creating a Customer-Responsive CultureKey Variables Shaping Customer-Responsive CulturesThe types of employees hired by the organization.Low formalization: the freedom to meet customer service requirements.Empowering employees with decision-making discretion to please the customer.Good listening skills to understand customer messages.Role clarity that allows service employees to act as boundary spanners.Employees who engage in organizational citizenship behaviors.

Creating An Ethical Organizational CultureCharacteristics of Organizations that Develop High Ethical StandardsHigh tolerance for riskLow to moderate in aggressivenessFocus on means as well as outcomesManagerial Practices Promoting an Ethical CultureBeing a visible role model.Communicating ethical expectations.Providing ethical training.Visibly rewarding ethical acts and punishing unethical ones.

What Is Organizational Culture?Characteristics:Innovation and risk takingAttention to detailOutcome orientationPeople orientationTeam orientationAggressivenessStability

Institutionalization: A Forerunner of Culture

What Is Organizational Culture? (contd)

What Is Organizational Culture? (contd)Culture Versus FormalizationA strong culture increases behavioral consistency and can act as a substitute for formalization.Organizational Culture Versus National CultureNational culture has a greater impact on employees than does their organizations culture.Nationals selected to work for foreign companies may be atypical of the local/native population.

What Do Cultures Do?Cultures Functions:Defines the boundary between one organization and others.Conveys a sense of identity for its members.Facilitates the generation of commitment to something larger than self-interest.Enhances the stability of the social system.

What Do Cultures Do?Culture as a Liability:Barrier to changeBarrier to diversityBarrier to acquisitions and mergers

Creating a Customer-Responsive CultureManagerial Actions:Select new employees with personality and attitudes consistent with high service orientation.Train and socialize current employees to be more customer focused.Change organizational structure to give employees more control.Empower employees to make decision about their jobs.

Keeping Culture AliveSelectionConcerned with how well the candidates will fit into the organization.Provides information to candidates about the organization.Top ManagementSenior executives help establish behavioral norms that are adopted by the organization.SocializationThe process that helps new employees adapt to the organizations culture.

Stages in the Socialization Process

A Socialization ModelE X H I B I T18-2

Entry Socialization OptionsFormal versus InformalIndividual versus CollectiveFixed versus VariableSerial versus RandomInvestiture versus DivestitureE X H I B I T18-3

How Organization Cultures FormE X H I B I T18-4

How Employees Learn CultureStoriesRitualsMaterial SymbolsLanguage

Creating a Customer-Responsive CultureManagerial Actions (contd) :Lead by conveying a customer-focused vision and demonstrating commitment to customers.Conduct performance appraisals based on customer-focused employee behaviors.Provide ongoing recognition for employees who make special efforts to please customers.

Spirituality and Organizational CultureCharacteristics:Strong sense of purposeFocus on individual developmentTrust and opennessEmployee empowermentToleration of employee expression

How Organizational Cultures Have an Impact on Performance and SatisfactionE X H I B I T18-7

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