Organizational Behavior and

Organizational Change
Organizational Culture
Roger N. Nagel
Senior Fellow & Wagner Professor
Lehigh University
1
CSE & Enterprise Systems Center
Lehigh University

Roger N. Nagel 2006

Topics This Presentation

Organizational Culture
Characteristics
1.
2.
3.
4.
5.
6.
7.
8.

Innovation and risk taking

Attention to detail
Outcome orientation
People orientation
Team orientation
Aggressiveness
Stability
Agility

Organizational Culture USA &

China
What Do Cultures Do?
How Employees Learn Culture

eleventh edition

organizational behavior

stephenp. robbins
2

Organizational
Organizationalbehavior
behavior
Eleventh
EleventhEdition
Edition
By
BySteve
SteveRobbins
Robbins
ISBN
ISBN0-13-191435-9
0-13-191435-9
Reference
ReferenceBook
Book
2

CSE & Enterprise Systems Center

Lehigh University

Roger N. Nagel 2006

What Is Organizational Culture?

Organizational Culture

Characteristics:
Characteristics:

A common perception
held by the organizations
members; a system of
shared meaning.

1.1. Innovation
Innovationand
andrisk
risk
taking
taking
2.2. Attention
Attentionto
todetail
detail
3.3. Outcome
Outcomeorientation
orientation
4.4. People
Peopleorientation
orientation
5.5. Team
Teamorientation
orientation
6.6. Aggressiveness
Aggressiveness
7.7. Stability
Stability
8.8. Agility
Agility
Page 485
Page 485

CSE & Enterprise Systems Center

Lehigh University

Roger N. Nagel 2006

Culture Characteristics A Closer look

1. Innovation and risk taking.
The degree to which employees are encouraged to
do both

2. Attention to detail.
Degree to which employees are expected to
exhibit precision, analysis, and attention to detail.

3. Outcome orientation.
Degree to which management focuses on results
rather than on processes used to achieve them.
4
CSE & Enterprise Systems Center
Lehigh University

Roger N. Nagel 2006

Culture Characteristics A Closer look

4. People orientation.
Degree to which management decisions consider
the effect of outcomes on people within the
organization.

5. Team orientation.
Degree to which work activities are organized
around teams rather than individuals.

6. Aggressiveness.
Degree to which people are aggressive and
competitive.
5
CSE & Enterprise Systems Center
Lehigh University

Roger N. Nagel 2006

Culture Characteristics A Closer look

7. Stability.
Degree to which activities emphasize maintaining
the status quo.

8. Agility.
Ability to change products or processes quickly
and easily in response to new strategies or market
demands [More on Agility soon]
6
CSE & Enterprise Systems Center
Lehigh University

Roger N. Nagel 2006

Typical Organizational Culture USA

Characteristics:

IN USA

(high, moderate, low)

Nagel Opinion

Innovation and risk taking

high

Attention to detail

low

Outcome orientation
People orientation
Team orientation
Aggressiveness
Stability
Agility

moderate
moderate
moderate
high
moderate
moderate
7

CSE & Enterprise Systems Center

Lehigh University

Roger N. Nagel 2006

Typical Organizational Culture USA & China

Characteristics:

IN USA

IN China

(high, moderate, low)

Nagel Opinion

Your Opinion

Innovation and risk taking

high

Attention to detail

low

Outcome orientation
People orientation
Team orientation
Aggressiveness
Stability
Agility

moderate
moderate
moderate
high
moderate
moderate
8

CSE & Enterprise Systems Center

Lehigh University

Roger N. Nagel 2006

Individual and Team Exercise

Fill in the typical organizational culture USA &

china table which follows by your self.
For USA and China cultures use your best guess

9
CSE & Enterprise Systems Center
Lehigh University

Roger N. Nagel 2006

Typical Organizational Culture USA & China

Characteristics:

IN USA

(high, moderate, low)

Nagel Opinion

Innovation and risk taking

high

Attention to detail

low

Outcome orientation
People orientation
Team orientation
Aggressiveness
Stability
Agility

moderate

IN USA

In China

Your Opinion Your Opinion

moderate
moderate
moderate
moderate
moderate
10

CSE & Enterprise Systems Center

Lehigh University

Roger N. Nagel 2006

Individual and Team Exercise

Read about organization A and organization
B in the two slides which follow.
Fill in the table following the descriptions
using your opinion for the culture of
organization A and organization B by your
self

11
CSE & Enterprise Systems Center
Lehigh University

Roger N. Nagel 2006

Contrasting Organizational Cultures

Organization A
This organization is a manufacturing firm. Managers are expected to fully document all decisions;
and good managers are those who can provide detailed data to support their recommendations.
Creative decisions that incur significant change or risk are not encouraged. Because managers of
failed projects are openly criticized and penalized, managers try not to implement ideas that deviate
much from the status quo. One lower-level manager quoted an often used phrase in the company: If
it aint broke, dont fix it.
There are extensive rules and regulations in this firm that employees are required to follow.
Managers supervise employees closely to ensure there are no deviations. Management is concerned
with high productivity, regardless of the impact on employee morale or turnover.
Work activities are designed around individuals. There are distinct departments and lines of
authority, and employees are expected to minimize formal contact with other employees outside their
functional area or line of command. Performance evaluations and rewards emphasize individual
effort, although seniority tends to be the primary factor in the determination of pay raises and
promotions.
E X H I B I T 161
E X H I B I T 161
Page 487
Page 487

Contrasting Organizational Cultures

Organization B
This organization is also a manufacturing firm. Here, however, management encourages
and rewards risk taking and change. Decisions based on intuition are valued as much as
those that are well rationalized. Management prides itself on its history of experimenting
with new technologies and its success in regularly introducing innovation products.
Managers or employees who have a good idea are encouraged to run with it. And failures
are treated as learning experiences. The company prides itself on being market-driven and
rapidly responsive to the changing needs of its customers.
There are few rules and regulations for employees to follow, and supervision is loose
because management believes that its employees are hardworking and trustworthy.
Management is concerned with high productivity, but believes that this comes through
treating its people right. The company is proud of its reputation as being a good place to
work.
Job activities are designed around work teams, and team members are encouraged to
interact with people across functions and authority levels. Employees talk positively about
the competition between teams. Individuals and teams have goals, and bonuses are based
on achievement of these outcomes. Employees are given considerable autonomy in
choosing the means by which the goals are attained.
E X H I B I T 161
E X H I B I T 161
Page 487
Page 487

Read about Organization A & B and Rate Them

Characteristics:
(high, moderate, low)

Organization A
Your Opinion

Organization B
Your Opinion

Innovation and risk taking

Attention to detail
Outcome orientation
People orientation
Team orientation
Aggressiveness
Stability
Agility
14
CSE & Enterprise Systems Center
Lehigh University

Roger N. Nagel 2006

Individual and Team Exercise

Fill in the tables which follows for your
organization
a. First characterize your organization as it is today,
and then indicate how you feel it should be in the
future.
b. On a separate piece of paper write down an
explanation of why you want to change your
organizational culture for any row in which you
have indicated a change is needed.

15
CSE & Enterprise Systems Center
Lehigh University

Roger N. Nagel 2006

Your Organizational Culture Today and in Future

Characteristics:
(high, moderate, low)

Your Organization
today

Your Organization
Should be in future

Innovation and risk taking

Attention to detail
Outcome orientation
People orientation
Team orientation
Aggressiveness
Stability
Agility
16
CSE & Enterprise Systems Center
Lehigh University

Roger N. Nagel 2006

Individual and Team Exercise

Share your answers with your team
1. For USA and China cultures form a team consensus and
prepare to report it.
2. For organizations A and Organization B form a team
consensus and prepare to report it.
3. Share your organizational culture today and in the future
chart with our teammates.
a. discuss the characteristics you desire to change and your
reasons for the changes.
b. Provide feedback to each team member.
c. identify a list of characteristics which several of you all feel
must change and prepare to report them
d. Explain your groups reasons for each characteristic and
prepare to report them.
17
CSE & Enterprise Systems Center
Lehigh University

Roger N. Nagel 2006

Read about Organization A & B and Rate Them

(high, moderate, low)

Organization A
Nagel Opinion

Organization B
Nagel Opinion

Attention to detail
Outcome orientation
People orientation
Team orientation
Aggressiveness

low
high
low
low
low
low

high
low
high
high
high
moderate

high
low

low
high

Characteristics:
Innovation and risk taking

Stability
Agility

18
CSE & Enterprise Systems Center
Lehigh University

Roger N. Nagel 2006

Exercise A Team Reports

For USA and China cultures form a team consensus chart
with typical organizational culture in each country
For organizations A and organization B form a team
consensus chart with organization A & B ratings
Your organizational culture today and in the future
common list of characteristics which several of you feel
must change
Explain your reasons for each characteristic
19
CSE & Enterprise Systems Center
Lehigh University

Roger N. Nagel 2006

Do Organizations Have Uniform Cultures?

Dominant Culture
Expresses the core values that
are shared by a majority of
the organizations members.

Subcultures
Minicultures within an
organization, typically defined
by department designations
and geographical separation.
CSE & Enterprise Systems Center
Lehigh University

20

Roger N. Nagel 2006

Do Organizations Have Uniform Cultures?

Core Values
The primary or dominant values that are accepted
throughout the organization.

Strong Culture
A culture in which the
core values are intensely
held and widely shared.
21
CSE & Enterprise Systems Center
Lehigh University

Roger N. Nagel 2006

What Do Cultures Do?

Cultures
CulturesFunctions:
Functions:
1.1. Conveys
Conveysaasense
senseof
ofidentity
identityfor
forits
itsmembers.
members.
2.2. Facilitates
Facilitatesthe
thegeneration
generationof
ofcommitment
commitmentto
to
something
somethinglarger
largerthan
thanself-interest.
self-interest.
3.3. Enhances
Enhancesthe
thestability
stabilityof
ofthe
thesocial
socialsystem.
system.
4.4. Serves
Servesas
asaasense-making
sense-makingand
andcontrol
controlmechanism
mechanism
for
forfitting
fittingemployees
employeesin
inthe
theorganization.
organization.
Page 489
Page 489

CSE & Enterprise Systems Center

Lehigh University

Roger N. Nagel 2006

22

What Do Cultures Do?

Can define the boundary between one organization and others.
When there are cultural incompatibilities
Globally this is can significant concern
Consider our USA vs. China chart

CSE & Enterprise Systems Center

Lehigh University

Characteristics:

IN USA

IN China

(high, moderate, low)

Nagel Opinion

Your Opinion

Innovation and risk taking

high

Attention to detail

low

Outcome orientation
People orientation
Team orientation
Aggressiveness
Stability
Agility

moderate
moderate
moderate
moderate
moderate
moderate

Roger N. Nagel 2006

23

Which if any should be dealt with

To be

Supplier

Innovation and risk

taking
Attention to detail

Collaborator

Integrated subsidiary
Collaborator
Nagel view

Outcome orientation
People orientation
Team orientation
Aggressiveness
Stability
Agility

sometimes
24

CSE & Enterprise Systems Center

Lehigh University

Roger N. Nagel 2006

What Do Cultures Do?

Culture
Cultureas
asaaLiability:
Liability:
1.1. Barrier
Barrierto
tochange.
change.
2.2. Barrier
Barrierto
todiversity
diversity
3.3. Barrier
Barrierto
tocollaboration
collaboration
4.4. Barrier
Barrierto
toacquisitions
acquisitionsand
andmergers
mergers

Page 491
Page 491

CSE & Enterprise Systems Center

Lehigh University

Roger N. Nagel 2006

25

How Employees Learn Culture

Leaders
Leadersas
asrole
rolemodels
models
Behavior
Behaviorof
ofothers
others
Stories
Stories
Rituals
Rituals
Material
MaterialSymbols
Symbols
Language
Language

Page 498
Page 498

CSE & Enterprise Systems Center

Lehigh University

Roger N. Nagel 2006

26

Creating An Ethical Organizational Culture

Characteristics of Organizations that Develop High
Ethical Standards
High tolerance for risk
Low to moderate in aggressiveness
Focus on means as well as outcomes

Managerial Practices Promoting an Ethical Culture

Being a visible role model.

Communicating ethical expectations.
Providing ethical training.
Rewarding ethical acts and punishing unethical ones.
Providing protective mechanisms.

CSE & Enterprise Systems Center

Lehigh University

Page 500
Page 500

Roger N. Nagel 2006

27

Creating a Customer-Responsive Culture

Shaping Customer-Responsive Cultures
1. The types of employees hired by the organization.
2. Low formalization: the freedom to meet customer
service requirements.
3. Empowering employees with decision-making
discretion to please the customer.
4. Good listening skills to understand customer
messages.
5. Employees who engage in organizational
citizenship behaviors.
Page 501
Page 501

CSE & Enterprise Systems Center

Lehigh University

Roger N. Nagel 2006

28

Creating a Customer-Responsive Culture

Managerial Actions
Actionable vision
Lead by conveying a customer-focused vision

Role model
demonstrating commitment to customers.
Provide ongoing recognition for employees who make
special efforts to please customers

Provide an Agile organizational structure

Empower employees to make appropriate decisions

29
CSE & Enterprise Systems Center
Lehigh University

Roger N. Nagel 2006

Personal Exercise Choice A

What cultural changes should you be making
to be a more effective in meeting your global
business goals
1. Identify your global business goals
2. Is our current culture an asset or a deficit in
meeting your global business goals
3. Explain how and or why (your answer in 2. above)
a. develop a plan for changes you need to make.
b. Identify benefits you expect, metrics for them
c. Obstacles you will face and how to overcome them.
30
CSE & Enterprise Systems Center
Lehigh University

Roger N. Nagel 2006

Personal Exercise Choice B

What cultural changes should you be making
to be a more effective in meeting your
domestic business goals
1. Identify your domestic business goals
2. Is our current culture an asset or a deficit in
meeting your domestic business goals
3. Explain how and or why (for your answer in 2.
above)
a. develop a plan for changes you need to make.
b. Identify benefits you expect, metrics for them
c. Obstacles you will face and how to overcome them.
31
CSE & Enterprise Systems Center
Lehigh University

Roger N. Nagel 2006

XIE XIE
Roger N. Nagel
Wagner Professor and Senior Fellow

CSE Department &

The Enterprise Systems Center at Lehigh University
200 West Packer Avenue
Bethlehem, Pennsylvania, 18015
(610) 758-4086, (610) 868-0402 [fax]
Rnagel@lehigh.edu
32
CSE & Enterprise Systems Center
Lehigh University

Roger N. Nagel 2006