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Chapter 5

This document discusses organizational culture and social responsibility. It defines organizational culture as the shared values and norms that guide member behavior. Culture can provide competitive advantages and increase effectiveness. Values are desired outcomes while norms are standards of acceptable behavior. Culture is transmitted through socialization tactics that influence how newcomers learn roles. An organization's culture emerges from its founders' values, members' characteristics, ethics policies, property rights distribution, and structure. Culture can be managed by changing these influencing factors. The document also discusses social responsibility and why organizations should act in socially responsible ways to benefit workers and society.

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Khaleel Abdo
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42 views

Chapter 5

This document discusses organizational culture and social responsibility. It defines organizational culture as the shared values and norms that guide member behavior. Culture can provide competitive advantages and increase effectiveness. Values are desired outcomes while norms are standards of acceptable behavior. Culture is transmitted through socialization tactics that influence how newcomers learn roles. An organization's culture emerges from its founders' values, members' characteristics, ethics policies, property rights distribution, and structure. Culture can be managed by changing these influencing factors. The document also discusses social responsibility and why organizations should act in socially responsible ways to benefit workers and society.

Uploaded by

Khaleel Abdo
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PDF, TXT or read online on Scribd
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Organizational Theory

CH.5: Creating And Managing Organizational Culture


Part (4)
1

CH.5: Creating and Managing Organizational Culture


(Part 4)

What is Organizational Culture?

♣ Organizational culture:
The set of shared values and norms that controls organizational members’
interactions with each other and with people outside the organization

 Can be a source of competitive advantage.


 Can be used to increase organizational effectiveness.

♣ Values:
General criteria, or guiding principles that people use to determine which types
of behaviors, events, situations, and outcomes are desirable or undesirable.

(1) Terminal value: A desired end state or outcome that people seek to achieve.
(2) Instrumental value: A desired mode of behavior.

♣ Norms:
Standards or styles of behavior that are considered acceptable or typical for a
group of people.

MR. KH. A.
2

What is The Difference Between Values and Norms?

Exercise:

MR. KH. A.
3

Terminal and Instrumental Values in an Organization’s


Culture:

♣ Standard Operating Procedure (SOP):


is a set of step-by-step instructions compiled by an organization to help workers
carry out routine operations.

 People draw on these cultural values to guide their actions and decisions
when faced with uncertainty and ambiguity.
 Important influence on members’ behavior and response to situations.

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4

How is an Organization’s Culture Transmitted to its


Members?

● The ability of an organization’s culture to motivate employees and increase


organizational effectiveness is directly related to the way in which members
learn the organization’s values.

Socialization and Socialization Tactics

● From the organization’s perspective, the most effective way for newcomers to
learn appropriate values is through socialization.

♣ Socialization:
The process by which members learn and internalize the values and norms of an
organization’s culture.

♣ Role Orientation:
The characteristic way in which newcomers respond to a situation

 There are 12 socialization tactics that influence a newcomer’s role


orientation.
 The use of different sets of these tactics leads to two different role
orientations: institutionalized and individualized.

♣ An Institutionalized Role Orientation:


results when individuals are taught to respond to a new context in the same
way that existing organizational members respond to it.

MR. KH. A.
5

♣ An Individualized Role Orientation:


encourages obedience and conformity to rules and norms. It results when
individuals are allowed and encouraged to be creative and to experiment with
changing norms and values so an organization can better achieve its values.

● The following list contrasts the tactics used to socialize newcomers to an


institutionalized orientation with those tactics used to develop an
individualized orientation:

MR. KH. A.
6

1. Collective vs. Individual.


 Collective tactics: provide newcomers with common learning experiences
to produce a standardized response to a situation.
 Individual tactics: each newcomer’s learning experiences are unique, and
newcomers can learn new, appropriate responses for each situation.

2. Formal vs. Informal.


 Formal tactics: separate newcomers from existing organizational members
during the learning process.
 Informal tactics: newcomers learn on the job.

3. Sequential vs. Random.


 Sequential tactics: provide newcomers with explicit information about the
sequence in which they will perform new activities or occupy new roles as
they advance in an organization.
 Random Tactics: training is based on the interests and needs of individual
newcomers because there is no set sequence to the newcomers’ progress in the
organization.

4. Fixed vs. Variable.


 Fixed tactics: give newcomers precise knowledge of the timetable
associated with completing each stage in the learning process.
 Variable tactics: provide no information about when newcomers will
reach a certain stage in the learning process; once again, training depends on
the needs and interests of the individual.

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7

5. Serial vs. Disjunctive.


 Serial Tactics: use existing organizational members as role models and
mentors for newcomers.
 Disjunctive Tactics: require newcomers to figure out and develop their
own way of behaving; they are not told what to do.

6. Divestiture vs. Investiture.


 Divestiture Tactics: newcomers receive negative social support—that is,
they are ignored or neglected—and existing organizational members withhold
support until newcomers learn to conform to established norms.
 Investiture Tactics: newcomers immediately receive positive social
support from other organizational members and are encouraged to be
themselves.

Where an Organization’s Culture Comes From?

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8

(1) Characteristics of People within the Organization:

 Companies attract, hire, and retain people with different values,


personalities, and ethics.
 People are drawn to companies with values similar to their own.
 As people and values become more similar, organizational culture becomes
more unique.

 The founder of an organization has a substantial influence on the


organization’s initial culture because of his or her personal values and beliefs.
 Founders set the part for the later development of a culture because they not
only establish the new organization’s values but hire its first members.

(2) Organizational Ethics:

 Many cultural values derive from the personality and beliefs of the founder
and the top management team and are in a sense out of the control of the
organization (out control).

 An organization can, however, deliberately and purposefully develop some


cultural values to control members’ behavior, ethical values, for instance.

♣ Organizational Ethics:
the moral values, beliefs, and rules that establish the appropriate way for
organizational members to deal with one another and with the organization’s
stakeholders and can be of three types: social, professional, and ethical.

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9

Factors Influencing the Development of Organizational Ethics:

(3) Property Rights:

♣ Property Rights:
Rights that an organization gives to members to receive and use organizational
resources.

● The distribution of property rights to different stakeholders determines:


 How effective an organization is.
 The culture that emerges in the organization.

● Top managers often have strong property rights because they are given large
amounts of organizational resources, such as high salaries, the rights to large
stock options, or golden drops to foster motivation to work hard on behalf of the
organization and its other stakeholders.

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10

● Top managers are in a strong position to establish the terms of their own
employment and the property rights received by others.

● Changing property rights changes the corporate culture by changing the


instrumental values that motivate and coordinate employees

● An organization’s workforce may be given strong property rights, such as a


guarantee of lifetime employment and involvement in an employee stock
ownership plan (ESOP) or in a profit-sharing plan, though this is not too
common.

(4) Organizational Structure:

Mechanistic vs. Organic


 Mechanistic – Certainty and stability are desired goals
 Organic – Innovation and flexibility are desired end states

Centralized vs. Decentralized


 Decentralized – Encourages and rewards creativity and innovation.
 Centralized – Reinforces obedience and accountability.

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11

Can Organizational Culture be Managed?

● Some ways culture can be changed:


 Redesign structure
 Revise property rights used to motivate people
 Change the people – especially top management

Social Responsibility

A manager’s duty or obligation to make decisions that encourage, protect,


enhance, and promote the welfare and well-being of stakeholders and society as
a whole.

Approaches to Social Responsibility

 Obstructionist approach: The low end of the organization’s commitment to


social responsibility
 Defensive approach: Indicates a commitment to ethical behavior
 Accommodative approach: The acknowledgment of the need to support
social responsibility
 Proactive approach: Actively embrace the need to behave in socially
responsible ways.

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12

Why Be Socially Responsible?

● Workers and society benefit directly because organizations bear some of the
costs of helping workers

1- Quality of life as a whole would be higher as a climate of caring is


encouraged

2- It is the right thing to do Companies that act responsibly toward their


stakeholders benefit from increasing business and see their profits rise

● Often when an organization is acting illegally, a careful worker may inform


authorities regarding this and be penalized by the company.

♣ Whistle-Blower:
Informing (by an employee) an outside person or agency, about an
organization’s illegal or immoral behavior

● Managers’ own ethics influence their behavior


 Their own values strongly influence whether they will take a proactive
approach to social responsibility

MR. KH. A.

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