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Principles of Management
Organizational
Culture
and Environment
CHAPTER-4
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AFTER STUDYING THIS CHAPTER, YOU SHOULD BE ABLE TO:
Define, What is Organizational Culture.
Recognize the characteristics and importance of
organizational culture. Asses how Culture effects a manager's performance.
Describe current issues in organizational culture.
Understand external environment of an organization.
Articulate the differences between the functioning ofGroups and Team
Asses how Teams are an essential part of modernorganisational life and their impact on organizationalculture.
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The Manager:
Omnipotent or Symbolic
?
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34
Omnipotent View of Management
Managers are directly responsible for an organizationssuccess or failure.
The quality of the organization is determined by the qualityof its managers.
Managers are held accountablefor an organizations performanceyet it is difficult to attribute
good or poor performancedirectly to their influenceon the organization.
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Symbolic View of Management
Much of an organizations success or failure is dueto external forces outside of managers control.
The ability of managers to affect outcomes is
influenced and constrained by external factors. The economy, customers, governmental policies,
competitors, industry conditions,technology, and the actions ofprevious managers
Managers symbolize control andinfluence through their action.
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Parameters of Managerial Discretion
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Organizational Culture
A system of shared meanings and commonbeliefs held by organizational members thatdetermines, in a large degree, how they act
towards each other.
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The Organizations Culture
The way we do things around here.
Values, symbols, rituals, myths, and practices Implications:
Culture is a perception.
Culture is descriptive.
Culture is shared.
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Dimensions of Organizational Culture
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How an Organizations Culture Is Established andMaintained
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Strong versus Weak Cultures
Strong Cultures Are cultures in which key values are deeply held and widely
held.
Have a strong influence on organizational members.
Factors Influencing the Strength of Culture
Size of the organization
Age of the organization
Rate of employee turnover
Strength of the original culture
Clarity of cultural values and beliefs
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Benefits of a Strong Culture
Creates a stronger employee commitment to theorganization.
Aids in the recruitment and socialization of newemployees.
Fosters higher organizationalperformance by instilling and
promoting employee initiative.
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Strong versus Weak Organizational Cultures
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How Employees Learn Culture
Stories
Narratives of significant events or actions of people thatconvey the spirit of the organization
Rituals
Repetitive sequences of activities that express and reinforcethe values of the organization
Material Symbols
Physical assets distinguishing the organization
Language
Acronyms and jargon of terms, phrases, and word meaningsspecific to an organization
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How Culture Affects Managers
Cultural Constraints on Managers
Whatever managerial actions the organization recognizes asproper or improper on its behalf
Whatever organizational activities the organization valuesand encourages
The overall strength or weakness of the organizationalculture
Simple rule for getting ahead in an organization:
Find out what the organization rewards and do those things.
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External Environment
Those factors and forces outside theorganization that affect the organizations
performance.
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Components of the External Environment
Specific environment: External forces that have a direct and immediate impact on
the organization.
General environment: Broad economic, socio-cultural, political/legal,
demographic, technological, and global conditions that mayaffect the organization.
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Specific environment
Customer
Supplier
Pressure Group
Competitors
General environment
Economical condition
Political
Condition
Social culturalCondition
TechnologicalCondition
DemographicCondition
Global Condition
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How the Environment Affects Managers
Environmental Uncertainty
The extent to which managers have knowledge of
and are able to predict change their organizationsexternal environment is affected by:
Complexity of the environment: the number ofcomponents in an organizations external environment.
Degree of change in environmental components: howdynamic or stable the external environment is.
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Stakeholder Relationships
Stakeholders
Any constituencies in the organizations environment thatare affected by the organizations decisions and actions
Why Manage Stakeholder Relationships?
It can lead to improved organizational performance.
Its the right thing to do given the interdependence of the
organization and its external stakeholders.
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Organizational Stakeholders
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CURRENT OrganizationCultural Issues
Creating an Ethical Culture
Creating an Innovative Culture
Creating a Customer-Responsive Culture
Spirituality and Organizational Culture
Team Work Culture
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Creating an Ethical Culture
High in risktolerance
Low to moderateaggressiveness
Focus on means aswell as outcomes
Creating an Innovative Culture
Challenge andinvolvement
Freedom
Trust and openness Idea time
Playfulness/humor
Conflict resolution
Debates
Risk-taking
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Hiring the right type of employees (ones with astrong interest in serving customers)
Having few rigid rules, procedures, and regulations
Using widespread empowerment of employees
Having good listening skills in relating to customersmessages
Providing role clarity to employees to reduce
ambiguity and conflict and increase job satisfaction Having conscientious, caring employees willing to
take initiative
Creating a Customer-Responsive Culture
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Spirituality and Organizational Culture
Workplace Spirituality
The recognition that people have an inner life thatnourishes and is nourished by meaningful work that
takes place in the context of community.
Characteristics of a Spiritual Organization
Strong sense of purpose
Focus on individual development
Trust and openness
Employee empowerment
Toleration of employees expression
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DevelopingGroup Vs Team
Culture
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GROUPS:
Two or more interacting and
interdependentindividuals who come together to
achieve particular
GOAL
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WHY PEOPLE JOIN GROUPS:
Security
Status
Self-esteem
Affiliation Power
Goal achievement
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TYPES OF WORK GROUP
WORK
GROUP
FORMAL
GROUP
INFORMAL
GROUP
COMMAND
TASK
GROUP
TEMPORARYTASK GROUP
PERMANENT
TASK GROUP
FRIENDSHIP
GROUP
INTREST
GROUP
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STAGES OF WORK GROUP:
Stage # 4Performing
Stage # 5Adjourning
Stage # 6Mourning/Grieving
Stage # 3
Norming
Stage # 2
Storming
Stage # 1
Forming
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The degree to which group members are attracted toa group and share the group goals.
High Low
HIgh
LOw
Strong increasein Productivity
Decrease inproductivity
Moderate increaseIn productivity
No significanteffect
in Productivity
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Lack of trust among group members.
Lack of cooperation/Cohesion. Authoritative behavior of leader.
Conflicts and disputes among group members.
Diverging objectives.
WHY GROUPS SOMETIMES FAIL
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Turning Groups into
Effective Team
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Team
A smaller number of people withcomplementary skills who are committed to acommon purpose, set of performance goals,
and approaches for which they hold
themselves mutually accountable.
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DIFFERENCE BETWEEN GROUPS AND TEAMS
Shared Vision.
Team Spirit.
Sharing and caring Attitude.
Setting performance goals.
Mutually accountable for results.
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Why move to team working?
Teamwork can increase competitiveness by:
Improving productivity
Improving quality and encouraginginnovation
Taking advantage of the opportunitiesprovided by technological advances
Improving employee motivation andcommitment
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Interpersonal Skills Required by a Leader in Managing and
developing Trust among Teams
Appropriate questioning.
Weltanschauung.
Group discussions.
Friendly climate.
Use of consensus method.
Involvement of team members in setting goals.
Implement meeting guidelines.Encourage self respect
Identify and deal with dysfunctional behaviors
Celebrating teams achievement and accomplishments
Use different techniques to motivate team members
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Characteristics ofEffective
TEAM
?
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How Teams can have a good fight
Work with more, rather than less, information.
Develop multiple alternatives to enrich debate. Establish common goals.
Inject humor into workplace.
Maintain a balance of power.
Resolve issues without facing a consensus.