1. Principles of Management Organizational Culture and Environment CHAPTER-4

2. 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.

3. The Manager: Omnipotent or Symbolic ?

4. 3–4 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. Managers are held accountable for an organization’s performance yet it is difficult to attribute good or poor performance directly to their influence on the organization.

5. Symbolic View of Management Much of an organization’s 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.

6. Parameters of Managerial Discretion

7. 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.

8. The Organization’s 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.

9. Dimensions of Organizational Culture

10. How an Organization’s Culture Is Established and Maintained

11. 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

12. 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.

13. Strong versus Weak Organizational Cultures

14. 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

15. 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.

16. External Environment Those factors and forces outside the organization that affect the organization’s performance.

17. 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.

18. Specific environment CustomerSupplierPressure GroupCompetitors General environment Economical condition Political Condition Social cultural Condition Technological Condition Demographic Condition Global Condition

19. 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.

20. Stakeholder Relationships  Stakeholders Any constituencies in the organization’s environment that are affected by the organization’s decisions and actions  Why Manage Stakeholder Relationships? It can lead to improved organizational performance. It’s the “right” thing to do given the interdependence of the organization and its external stakeholders.

21. Organizational Stakeholders

22. CURRENT Organization Cultural Issues Creating an Ethical CultureCreating an Innovative Culture Creating a Customer-Responsive Culture Spirituality and Organizational Culture Team Work Culture

23. Creating an Ethical Culture High in risk tolerance Low to moderate aggressiveness Focus on means as well as outcomes Creating an Innovative Culture Challenge and involvement Freedom Trust and openness Idea time Playfulness/humor Conflict resolution Debates Risk-taking

24. 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 Creating a Customer-Responsive Culture

25. 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

26. D eveloping G roup Vs Team C ulture

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

28. WHY PEOPLE JOIN GROUPS: Security Status Self-esteem Affiliation Power Goal achievement

29. TYPES OF WORK GROUP WORK GROUP FORMAL GROUP INFORMAL GROUP COMMAND TASK GROUP TEMPORARY TASK GROUP PERMANENT TASK GROUP FRIENDSHIP GROUP INTREST GROUP

30. STAGES OF WORK GROUP: Stage # 4 Performing Stage # 5 Adjourning Stage # 6 Mourning/Grieving Stage # 3 Norming Stage # 2 Storming Stage # 1 Forming

31. Basic Work Group Concept  Role  Norms  Conformity  Group Status  Group Size  social loafing  Individualism  Collectivism  Cohesiveness

32. The degree to which group members are attracted to a group and share the group goals. HighLow HIghHIgh LOwLOw Strong increase in Productivity Decrease in productivity Moderate increase In productivity No significant effect in Productivity

33.  Lack of trust among group members.  Lack of cooperation/Cohesion.  Authoritative behavior of leader.  Conflicts and disputes among group members.  Diverging objectives. WHY GROUPS SOMETIMES FAIL

34. Turning Groups into Effective Team

35. 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.

36. DIFFERENCE BETWEEN GROUPS AND TEAMS Shared Vision. Team Spirit. Sharing and caring Attitude. Setting performance goals. Mutually accountable for results.

37. 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

38. 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

39. Characteristics of Effective TEAM ?

40. 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.