Organizational Behavior: An Experiential Approach 7/E Joyce S. Osland, David A. Kolb, and Irwin M. Rubin 1 ©20 01 by Prentice Hall, Inc. Chapter 14

Organizational Behavior: An Experiential Approach 7/E Joyce S. Osland, David A. Kolb, and Irwin M. Rubin 2 ©20 01 by Prentice Hall, Inc. Objectives Define organizational culture and explain its function Explain how it evolves and is transmitted Describe the characteristics of a strong culture Describe how leaders can manage culture

Organizational Behavior: An Experiential Approach 7/E Joyce S. Osland, David A. Kolb, and Irwin M. Rubin 3 ©20 01 by Prentice Hall, Inc. Organizational Culture Pattern of shared values and beliefs that produce certain norms of behavior

Organizational Behavior: An Experiential Approach 7/E Joyce S. Osland, David A. Kolb, and Irwin M. Rubin 4 ©20 01 by Prentice Hall, Inc. Uncovering Levels of Culture Visible organizational structures and processes Strategies, goals, philosophies Unconscious, taken-for-granted beliefs, perceptions, thoughts, and feelings Artifacts Espoused Values Basic Underlying Assumptions

Organizational Behavior: An Experiential Approach 7/E Joyce S. Osland, David A. Kolb, and Irwin M. Rubin 5 ©20 01 by Prentice Hall, Inc. Sources of Culture Values of founder or strong leaders Learned solutions to problems over time

Organizational Behavior: An Experiential Approach 7/E Joyce S. Osland, David A. Kolb, and Irwin M. Rubin 6 ©20 01 by Prentice Hall, Inc. Transmitting Culture Via Socialization Stories Symbols Jargon Rituals and Ceremonies Statements of Principles

Organizational Behavior: An Experiential Approach 7/E Joyce S. Osland, David A. Kolb, and Irwin M. Rubin 7 ©20 01 by Prentice Hall, Inc. Functions of Organizational Culture Provides a sense of identity Generates commitment Helps people make sense of what’s going on Serves as a control mechanism

Organizational Behavior: An Experiential Approach 7/E Joyce S. Osland, David A. Kolb, and Irwin M. Rubin 8 ©20 01 by Prentice Hall, Inc. Strong Cultures Have more values and beliefs that are more widely shared and more ordered - - greater intensity and shared consensus of shared values-- than weak cultures

Organizational Behavior: An Experiential Approach 7/E Joyce S. Osland, David A. Kolb, and Irwin M. Rubin 9 ©20 01 by Prentice Hall, Inc. Characteristics of Strong Cultures Easily identified dominant values Selection process targets people who fit the culture Socialization and training teach newcomers “the ropes” Employees who don’t fit are fired Rewards for acting in accordance with the culture Leaders and managers send clear signals about desired values and norms

Organizational Behavior: An Experiential Approach 7/E Joyce S. Osland, David A. Kolb, and Irwin M. Rubin 10 ©20 01 by Prentice Hall, Inc. Strong Cultures Advantages Clear sense of purpose More value-driven decision making Employee commitment Disadvantages Pressure for conformity Resistance to change

Organizational Behavior: An Experiential Approach 7/E Joyce S. Osland, David A. Kolb, and Irwin M. Rubin 11 ©20 01 by Prentice Hall, Inc. HOW LEADERS CREATE AND MODIFY CULTURE What they pay attention to, measure, and control regularly Their reaction to critical incidents and crises Deliberate role modeling, teaching, and coaching

Organizational Behavior: An Experiential Approach 7/E Joyce S. Osland, David A. Kolb, and Irwin M. Rubin 12 ©20 01 by Prentice Hall, Inc....HOW LEADERS CREATE AND MODIFY CULTURE Criteria for recruitment, selection, promotion, retirement, and termination Criteria used to allocate scarce resources Criteria for allocating rewards and status

Organizational Behavior: An Experiential Approach 7/E Joyce S. Osland, David A. Kolb, and Irwin M. Rubin 13 ©20 01 by Prentice Hall, Inc. Organization Stages of Development Size Small Large 1. Entrepreneurial Stage 4. Elaboration Stage 3. Formalization Stage 2. Collectivity Stage Renewal Decline Continuing maturity