Organizational Culture, Socialization & Mentoring Chapter 3 Organizational Culture, Socialization & Mentoring Organizational Culture: Definition and Context Developing High Performance Cultures The Organizational Socialization Process Embedding Organizational Culture Through Mentoring

Organizational Culture 3-2 Organizational Culture Organizational Culture is “The set of shared, taken-for-granted implicit assumptions that a group holds and that determines how it perceives, thinks about, and reacts to its various environments.”

Understanding Organizational Culture 3-3 Figure 3-1 Understanding Organizational Culture Organizational Culture Observable artifacts Espoused values Basic assumptions Group & Social Processes Socialization Mentoring Decision making Group dynamics Communication Influence & empowerment Leadership Antecedents Founder’s values Industry & business environment National culture Senior leaders’ vision and behavior Organizational Structure & Practices Reward systems Organizational design Collective Attitudes & Behavior Work attitudes Job satisfaction Motivation Organizational Outcomes Effectiveness Innovation & stress

Layers of Organizational Culture 3-4 Layers of Organizational Culture Observable Artifacts physical manifestations of an organization’s culture Values enduring belief in a mode of conduct or end-state Espoused Values stated values and norms that are preferred by an organization Enacted Values values and norms exhibited by employees Basic Assumptions unobservable—represent the core of organizational culture

Four Functions of Organizational Culture 3-4 Figure 3-2 Four Functions of Organizational Culture Organizational identity Sense-making device Collective commitment Organizational culture Social system stability

3-5 Table 3-1 Constructive Culture Constructive Culture employees are encouraged to interact with others and to work on tasks and projects that will assist in satisfying their needs to grow and develop High priority on constructive interpersonal relationships, and focus on work group satisfaction Affiliative Participative, employee centered, and supportive Humanistic-encouraging Value self-development and creativity Self-actualizing Goal and achievement oriented Achievement Organizational Characteristics Normative Beliefs

Passive Defensive Culture 3-6 Table 3-1 cont. Passive Defensive Culture Passive Defensive Culture overriding belief that employees must interact with others in ways that do not threaten their job security Negative reward system and Defensive avoid accountability Avoidance Nonparticipative, centralized decision making, and employees do what they are told Dependent Conservative, bureaucratic, and people follow the rules Conventional Avoid conflict, strive to be liked by others, and approval oriented Approval Organizational Characteristics Normative Beliefs

Aggressive-Defensive Culture 3-7 Table 3-1 cont. Aggressive-Defensive Culture Aggressive-Defensive Culture encourage employees to approach tasks in forceful ways in order to protect their status and job security Perfectionistic, persistent, and hard working Perfectionistic Winning is values and a win-lose approach is used Competitive Nonparticipative, take charge of Defensive subordinates, and responsive to superiors Power Confrontation and negativism rewarded Oppositional Organizational Characteristics Normative Beliefs

Evidence from Organizational Culture Research 3-8 Evidence from Organizational Culture Research Organizational culture was significantly correlated with employee attitudes and behavior Congruence between an individual’s values and the organization’s values was associated with organizational commitment, job satisfaction, intentions to quit, and turnover Organizational culture did not predict a company’s financial performance Mergers frequently failed due to incompatible cultures

Developing an Adaptive Culture 3-9 Figure 3-3 Early business leaders create an implement a business vision and strategy that fits the business environment well. Firm succeeds. Business leaders emphasize the importance of constituencies and leadership in creating the success. A strong culture emerges with a core that emphasizes service to customers, stockholders, and employees, as well as the importance of leadership. Subsequent top managers work to preserve the adaptive core of the culture. They demonstrate greater commitment to its basic principles than any specific business strategy or practice.

Embedding Culture in Organizations 3-10 Embedding Culture in Organizations Formal statements of organizational philosophy, mission, vision, values, and materials used for recruiting, selection and socialization The design of physical space, work environments and buildings Slogans, acronyms, and sayings Deliberate role modeling, training programs, teaching and coaching by managers and supervisors Explicit rewards, status symbols (e.g. titles), and promotion criteria Stories, legends, or myths about key people and events

Embedding Culture in Organizations Cont. 3-11 Embedding Culture in Organizations Cont. The organizational activities, processes, or outcomes that leaders pay attention to, measure, and control Leader reactions to critical incidents and organization crises The workflow and organizational structure Organizational systems and procedures Organizational goals and the associated criteria for recruitment, selection, development, promotion, layoffs, and retirement of people

Organizational Socialization 3-12 Figure 3-4 Organizational Socialization Phases Perceptual and Social Processes Anticipatory socialization learning that occurs prior to joining the organization Anticipating realities about the organization and the new job Anticipating organization’s needs for one’s skills and abilities Anticipating organization’s sensitivity to one’s needs and values

Organizational Socialization 3-13 Figure 3-4 cont. Organizational Socialization Phases Perceptual and Social Processes Encounter values, skills, and attitudes start to shift as new recruit discovers what the organization is truly like Managing lifestyle-versus-work conflicts Managing intergroup role conflicts Seeking role definition and clarity Becoming familiar with task and group dynamics

Organizational Socialization 3-14 Figure 3-4 cont. Organizational Socialization Phases Perceptual and Social Processes Change and acquisition recruit masters skills and roles and adjusts to work group’s values and norms Competing role demands are resolved Critical tasks are mastered Group norms and values are internalized

Organizational Socialization 3-15 Figure 3-4 cont. Organizational Socialization Outsider Phases Anticipatory socialization Encounter Change and acquisition Socialized Insider Behavioral Outcomes Performs role assignments Remains with organization Spontaneously innovates and cooperates Affective Outcomes Generally satisfied Internally motivated to work High job involvement

Socialization Tactics 3-16 Table 3-2 Socialization Tactics Tactic Description Consists of grouping newcomers & exposing them to a common set of experiences Collective Treating each newcomer individually and exposing him or her to more less unique experiences Individual Practice of segregating a newcomer from regular organization members during a defined socialization period Formal Not clearly distinguishing a newcomer from more experienced members Informal

Socialization Tactics 3-17 Table 3-2 cont. Socialization Tactics Tactic Description Refers to a fixed progression of steps that culminate in the new role Sequential Ambiguous or dynamic progression of steps that culminate in the new role Random Provides a timetable for the assumption of the role Fixed Does not provide a timetable for the assumption of the role Variable

Socialization Tactics 3-18 Table 3-2 cont. Socialization Tactics Tactic Description Newcomer is socialized by an experienced member Serial Does not use a role model Disjunctive Affirmation of newcomer’s incoming global and specific role identities and attributes Investiture Denial and stripping away of the newcomer’s existing sense of self and the reconstruction of the organization’s image Divestiture

3-19 Mentoring Mentoring is the process of forming and maintaining intensive and lasting developmental relationships between a variety of developers and a junior person

Functions of Mentoring 3-20 Functions of Mentoring Career Functions Sponsorship Exposure-and-Visibility Coaching Protection Challenging Assignments Psychological Functions Role Modeling Acceptance-and-Confirmation Counseling Friendship

Developmental Networks Associated with Mentoring 3-21 Figure 3-5 Developmental Networks Associated with Mentoring Developmental Relationship Strength Weak Ties Strong Ties Low Range • D2 • D2 Key: D = developer P = protege D1 • D1 • • P • P Developmental Relationship Diversity Receptive Traditional D1 • • D2 D1 • • D2 High Range • P • P D3 • • D4 D3 • • D4 Opportunistic Entrepreneurial

3-22 OB in Action Case Study Enron’s Organizational Culture Contributed to Its Financial and Legal Problems Questions for Discussion: Using Figure 3-1, explain how Enron’s culture influenced organizational structure and practices, group and social processes, collective attitudes and behavior, and ultimately organizational outcomes. How would you describe the type of organizational culture that existed at Enron? What are the shared things, sayings, doings, and feelings at Enron? Explain. Which of the techniques for embedding organizational culture were used at Enron? Explain.

Questions for Discussion Cont.: 3-23 OB in Action Case Study Enron’s Organizational Culture Contributed to Its Financial and Legal Problems Questions for Discussion Cont.: How were employees socialized to act entrepreneurial? Provide examples. How would you change the culture at Enron if you were its new CEO? Provide specific recommendations.

3-24 Ethical Dilemma Arthur Andersen’s Pursuit of Consulting Income Created Ethical Challenges in its Auditing Operations What would you have done if you were auditing Waste Management’s financial statements? Vigorously challenge Waste Management employees to correct their accounting practices. Go to your manager when you first realize Waste Management was not following generally accepted accounting principles and tell him/her that you will not work on this account until Waste Management changes its ways. Complete the work as best you can because your efforts contribute to Anderson’s financial goals. Invent other options. Discuss