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Organizational Culture

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ninth edition

STEPHEN P. ROBBINS

MARY COULTER

Chapter

3
© 2007 Prentice Hall, Inc. All rights reserved.

Organizational Culture and Environment: The Constraints

PowerPoint Presentation by Charlie Cook The University of West Alabama

A Question of Culture . . .

Q: What makes up the culture of a country?

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3–2

The Organization’s Culture
• Organizational Culture
 A system of shared meanings and common beliefs held by organizational members that determines, in a large degree, how they act towards each other.  “The way we do things around here.”


Values, symbols, rituals, and practices

 Implications:


Culture is a perception.




Culture is shared.
Culture is descriptive.

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3–3

Exhibit 3–2 Dimensions of Organizational Culture

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3–4

Exhibit 3–4 Strong versus Weak Organizational Cultures

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3–5

Benefits of a Strong Culture
• Creates a stronger employee commitment to the organization.

• Aids in the recruitment and socialization of new employees.
• Fosters higher organizational performance by instilling and promoting employee initiative.

© 2007 Prentice Hall, Inc. All rights reserved.

3–6

Functional versus Dysfunctional Cultures
• Functional Cultures
 Are cultures well-suited to their environment or industry.


Ex: A highly-innovative company in the high-tech industry, or a customer-focused company in the high-end lodging industry.

• Dysfunctional Cultures
 Are cultures which are poorly-suited to their environment.


Ex: A company which is slow to react to marketplace changes, or a company which has low concern for employees or customers.

© 2007 Prentice Hall, Inc. All rights reserved.

3–7

Organizational Culture
• Sources of Organizational Culture
 The organization’s founder


Vision and mission The way things have been done

 Past practices of the organization


 The behavior of top management

• Continuation of the Organizational Culture
 Recruitment of like-minded employees who “fit”

 Socialization of new employees to help them adapt to the culture

© 2007 Prentice Hall, Inc. All rights reserved.

3–8

How Employees Learn Culture
• Stories
 Narratives of significant events or actions of people that convey the spirit of the organization

• Rituals
 Repetitive sequences of activities that express and reinforce the values of the organization

• Material Symbols
 Physical assets distinguishing the organization

• Language
 Acronyms and jargon of terms, phrases, and word meanings specific to an organization

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3–9

Exhibit 3–5 How an Organization’s Culture Is Established and Maintained

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3–10

Exhibit 3–7 Suggestions for Managers: Creating a More Ethical Culture

• Be a visible role model. • Communicate ethical expectations.

• Provide ethics training.
• Visibly reward ethical acts and punish unethical ones. • Provide protective mechanisms so employees can discuss ethical dilemmas and report unethical behavior without fear.

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3–11

Exhibit 3–8 Suggestions for Managers: Creating a More CustomerResponsive Culture • Hire service-contact people with the personality and attitudes consistent with customer service—friendliness, enthusiasm, attentiveness, patience, concern about others, and listening skills. • Train customer service people continuously by focusing on improving product knowledge, active listening, showing patience, and displaying emotions.

• Socialize new service-contact people to the organization’s goals and values.
• Design customer-service jobs so that employees have as much control as necessary to satisfy customers.

• Empower service-contact employees with the discretion to make day-to-day decisions on job-related activities.
• As the leader, convey a customer-focused vision and demonstrate through decisions and actions the commitment to customers.
© 2007 Prentice Hall, Inc. All rights reserved. 3–12

Spirituality and Organizational Culture
•Workplace Spirituality
 The recognition that people have an inner life that nourishes 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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3–13

Benefits of Spirituality
• Improved employee productivity • Reduction of employee turnover • Stronger organizational performance • Increased creativity • Increased employee satisfaction • Increased team performance • Increased organizational performance

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3–14

Exhibit 3–9 The External Environment

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3–15

How the Environment Affects Managers
• Environmental Uncertainty
 The extent to which managers have knowledge of and are able to predict change their organization’s external environment is affected by:


Complexity of the environment: the number of components in an organization’s external environment. Degree of change in environmental components: how dynamic or stable the external environment is.



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3–16

Competitors
• Competitive Intelligence (CI) • Fuld & Company (www.fuld.com)

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3–17

Exhibit 3–12 Organizational Stakeholders

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3–18

ninth edition

STEPHEN P. ROBBINS

MARY COULTER

THANK YOU FOR YOUR PARTICIPARTION
© 2007 Prentice Hall, Inc. All rights reserved. PowerPoint Presentation by Charlie Cook The University of West Alabama

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