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Chapter 3 – Org Culture and Environment
Symbolic versus omnipotent view of management Definition of organizational culture Seven dimensions of organizational culture Strong versus weak cultures Source of culture How employees learn culture General and specific environments Environmental uncertainty matrix Organizational stakeholders
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The Manager: Omnipotent or Symbolic?
Omnipotent View of Management Managers are directly responsible for an organization’s success or failure. The quality of the organization is determined by the quality of its managers.
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The Manager: Omnipotent or Symbolic?
Symbolic View of Management Organization’s success or failure due largely to forces outside managers’ control Managers’ ability to affect organization is constrained by: The economy, customers, governmental policies, competitors, industry conditions, technology, and the actions of previous managers Managers merely symbolize control
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The Organization’s 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 way we do things around here.” Values, symbols, rituals, myths, and practices
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Levels of Organizational Culture
Architecture Material symbols Dress Behavior Rules Stories, myths, legends Language Favorite topics of conversation Rituals, ceremonies Beliefs Norms Values Assumptions Observable Unobservable
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HP’s Organizational Culture
College campus No doors/Open door policy First-name basis Flexible hours Company socials MBWA Profit sharing Job security No theft Trust and respect for individuals Achievement and contribution Uncompromising integrity Teamwork Flexibility and innovation Observable Unobservable
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Dimensions of Organizational Culture
Exhibit 3.2
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Strong vs. Weak Culture Strong - Key values are deeply and widely held
Strong influence on employees
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Benefit of Strong Culture
Higher employee commitment Higher organizational performance Easier recruitment and socialization of new members
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Factors Influencing Strength of Culture
Size Age Rate of employee turnover Strength of original culture Clarity of cultural values and beliefs
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Sources of Organizational Culture
The organization’s founder Vision and mission Past practices of the organization The way things have been done The behavior of top management
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Continuation of Organizational Culture
Recruitment of like-minded employees who “fit” Socialization of new employees to help them adapt to the culture
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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
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Simple Rule for Getting Ahead
Find out what the organization rewards and do those things!
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Examples of How Culture Influences Management Practice
Fitting in… Look busy even if you’re not. Work late, even if the office closes at 5:00 Don’t question the boss’s decisions Managing… Don’t “re-engineer” in a democracy Don’t take risks in a conservative organization Don’t “go it alone” if teamwork counts
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The External Environment
Exhibit 3.8
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Defining the External Environment
The forces and institutions outside the organization that potentially can affect the organization’s 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.
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California State University
ENVIRONMENTAL FORCE Hewlett-Packard Los Angeles County California State University Economy Technology Customer demands Geo-political situation Competition Globalization Demographics Public accountability Rules and regulations The Board The Media Housing costs
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How the Environment Affects Managers
Environmental Uncertainty The extent to which managers have knowledge of and are able to predict change their organization’s external environment is affected by: Complexity of the environment: the number of components in an organization’s external environment. Degree of change in environmental components: how dynamic or stable the external environment is.
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Geo-political situation
Complexity and Dynamism (Speed of Change and Unpredictability) at the Three Giants FORCE HP LAC CSU Economy Technology Customer demands Geo-political situation Competition Globalization Demographics Public accountability Rules and regulations The Board The Media Housing costs
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Environmental Uncertainty Matrix
Exhibit 3.10
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