Principles of Management

Organizational Culture and Environment

CHAPTER-4

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 of Groups and Team Asses how Teams are an essential part of modern organisational life and their impact on organizational culture.

The Manager: Omnipotent or Symbolic

Omnipotent View of Management

Managers are directly responsible for an organizations success or failure. The quality of the organization is determined by the quality of its managers.

Managers are held accountable for an organizations performance yet it is difficult to attribute good or poor performance directly to their influence on the organization.

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Symbolic View of Management

Much of an organizations success or failure is due to 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 of previous managers

Managers symbolize control and influence through their action.

Parameters of Managerial Discretion

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 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.

Dimensions of Organizational Culture

How an Organizations Culture Is Established and Maintained

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

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.

Strong versus Weak Organizational Cultures

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

How Culture Affects Managers

Cultural Constraints on Managers
Whatever managerial actions the organization recognizes as proper or improper on its behalf Whatever organizational activities the organization values and encourages The overall strength or weakness of the organizational culture Simple rule for getting ahead in an organization:
Find out what the organization rewards and do those things.

External Environment

Those factors and forces outside the organization that affect the organizations performance.

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 may affect the organization.

Specific environment
Customer Supplier Pressure Group Competitors

General environment
Economical condition

Political
Condition Social cultural Condition Technological Condition Demographic Condition

Global Condition

How the Environment Affects Managers

Environmental Uncertainty
The extent to which managers have knowledge of and are able to predict change their organizations external environment is affected by:
Complexity of the environment: the number of components in an organizations external environment. Degree of change in environmental components: how dynamic or stable the external environment is.

Stakeholder Relationships
Stakeholders
Any constituencies in the organizations environment that are 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.

Organizational Stakeholders

CURRENT Organization Cultural Issues

Creating an Ethical Culture

Creating an Innovative Culture

Creating a Customer-Responsive Culture

Spirituality and Organizational Culture

Team Work Culture

Creating an Ethical Culture

Creating an Innovative Culture

High in risk tolerance Low to moderate aggressiveness Focus on means as well as outcomes

Challenge and involvement Freedom Trust and openness Idea time Playfulness/humor Conflict resolution Debates Risk-taking

Creating a Customer-Responsive Culture

Hiring the right type of employees (ones with a strong interest in serving customers)
Having few rigid rules, procedures, and regulations Using widespread empowerment of employees

Having good listening skills in relating to customers messages

Providing role clarity to employees to reduce ambiguity and conflict and increase job satisfaction

Having conscientious, caring employees willing to take initiative

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

Developing Group Vs Team Culture

GROUPS:
Two or more interacting and interdependent individuals who come together to achieve particular

GOAL

WHY PEOPLE JOIN GROUPS:

Security Status Self-esteem Affiliation Power Goal achievement

TYPES OF WORK GROUP

COMMAND

WORK GROUP

FORMAL GROUP TASK GROUP INFORMAL GROUP INTREST GROUP FRIENDSHIP GROUP

TEMPORARY TASK GROUP PERMANENT TASK GROUP

STAGES OF WORK GROUP:

Stage # 1 Forming

Stage # 2 Storming

Stage # 3 Norming

Stage # 4 Performing

Stage # 5 Adjourning

Stage # 6 Mourning/Grieving

Basic Work Group Concept

Role Norms Conformity Group Status Group Size social loafing Individualism Collectivism Cohesiveness

The degree to which group members are attracted to a group and share the group goals.

High

Low

H I g h L O w

Strong increase in Productivity

Moderate increase In productivity

Decrease in productivity

No significant effect in Productivity

WHY GROUPS SOMETIMES FAIL

Lack of trust among group members. Lack of cooperation/Cohesion. Authoritative behavior of leader. Conflicts and disputes among group members. Diverging objectives.

Turning Groups into Effective Team

Team
A smaller number of people with complementary skills who are committed to a common purpose, set of performance goals, and approaches for which they hold themselves mutually accountable.

DIFFERENCE BETWEEN GROUPS AND TEAMS

Shared Vision. Team Spirit. Sharing and caring Attitude. Setting performance goals. Mutually accountable for results.

Why move to team working?

Teamwork can increase competitiveness by:
Improving productivity Improving quality and encouraging innovation Taking advantage of the opportunities provided by technological advances Improving employee motivation and commitment

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

Characteristics of Effective TEAM

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.