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1 Shaping Culture and Values Functions of Culture in business 1.Culture provides a sense of identity to members and increases commitment. 2.Culture provides.

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Presentation on theme: "1 Shaping Culture and Values Functions of Culture in business 1.Culture provides a sense of identity to members and increases commitment. 2.Culture provides."— Presentation transcript:

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2 1 Shaping Culture and Values

3 Functions of Culture in business 1.Culture provides a sense of identity to members and increases commitment. 2.Culture provides a way for employees to interpret the meaning of organizational events. 3.Culture reinforces the values of the organization. 4.Culture serves as a control mechanisms for shaping behavior. 2

4 The Concept of culture Sir Edward Burnett Taylor (1832-1917) First alluded to in the Hawthorne studies by Elton Mayo -established that workplaces are social environments The topic of corporate culture emerged in the 1970s 3

5 4 Behavioral psychology Sociology Organization behavior Communication The wheel of culture. An interdisciplinary analysis Culture Involves:

6 5 Culture The set of key values, assumptions, understandings, and norms that is shared by members of an organization and taught to new members as correct

7 6 Ex. 14.1 Levels of Corporate Culture Visible 1.Artifacts such as dress, office layout, symbols, slogans, ceremonies Invisible 2.Expressed values, such as “The Penney Idea,” “The HP Way” 3.Underlying assumptions and deep beliefs, such as “people here care about one another like a family” Deeper values and shared understandings held by organization members Culture that can be seen at the surface level

8 7 Importance of Culture It integrates members so that they know how to relate to one another. (Internal) –Guides day-to-day work –Determines how communication occurs in the workplace –What behavior is acceptable –How power and status are allocated

9 8 Importance of Culture It helps the organization adapt to the external environment. (External) –How organization meets goals and deals with outsiders –How organization responds to customers/competitors

10 9 Culture Strength The degree of agreement among employees about the importance of specific values and ways of doing things

11 10 Ex. 14.2 Adaptive Versus Unadaptive Cultures Adaptive Organizational Culture Unadaptive Organizational Culture Visible Behavior Leaders pay close attention to all their constituencies, especially customers, and initiate change when needed to serve their legitimate interests, even if it entails taking some risks Managers tend to behave somewhat insularly, politically, and bureaucratically. As a result, they do not change their strategies quickly to adjust to or take advantage of changes in their business environments Expressed Values Leaders care deeply about customers, stockholders, and employees. They also strongly value people and processes that can create useful change (e.g., leadership initiatives up and down the management hierarchy) Managers care mainly about themselves, their immediate work group, or some product (or technology) associated with that work group. They value the orderly and risk- reducing management processes much more highly than leadership initiatives Underlying Assumption Serve whole organization, trust others Meet own needs, distrust others

12 11 Culture Gap The difference between desired and actual values and behaviors –Exists in all organizations to some degree –Must pay attention to when people are adhering to the wrong values –Difficulty in merging cultures

13 12 High Performance Culture Strong culture encourages adaptation Strong adaptive cultures often incorporate the following values –The whole is more important than the pars and boundaries between parts are minimized –Equality and trust arte primary values –The culture encourages risk taking, change and improvement

14 13 Cultural Leadership Defines and uses signals and symbols to influence corporate culture –Articulates a vision for the organizational culture that employees can believe in –The cultural leader heeds the day-to-day activities that reinforce the cultural vision

15 14 Ceremonies, Stories, and Symbols Ceremonies –Planned activities that make up special events and are generally conducted for the benefit of an audience Stories –Narratives based on true events that are repeated frequently and shared among employees Symbols –A object, act, or event that conveys meaning to others

16 15 Language, Selection, Socialization and Daily Actions Specialized language – slogans or sayings to express key corporate values Selection – hiring the right people Socialization - the process by which a person learns the values, norms perspectives, and expected behaviors that enable him or her to successfully participate in the group or organization Daily actions – the signaling and support of important cultural values through a leader’s daily actions.

17 16 Ex. 14.3 Four Corporate Cultures External focus Flexibility Internal focus Stability Clan Culture (Impoverished Ldr) Values: Cooperation Consideration Agreement Fairness Social equality Bureaucratic Culture (Exploitive Ldr) Values: Economy Formality Rationality Order Obedience Adaptability Culture (Enlightened Ldr) Values: Creativity Experimentation Risk-taking Autonomy Responsiveness Achievement Culture (Supportive Ldr) Values: Competitiveness Perfectionism Aggressiveness Diligence Personal initiative

18 17 Patterns of Leadership How do Organizations become what they are: “PRIMARILY BY IT’S LEADERS” Thru -

19 18 Patterns of Leadership “PRIMARILY BY IT’S LEADERS” Thru 1)Exploitive Leadership

20 19 Patterns of Leadership “PRIMARILY BY IT’S LEADERS” Thru 1)Exploitive Leadership 2)Impoverished Leadership

21 20 Patterns of Leadership “PRIMARILY BY IT’S LEADERS” Thru 1)Exploitive Leadership 2)Impoverished Leadership

22 21 Patterns of Leadership “PRIMARILY BY IT’S LEADERS” Thru 1)Exploitive Leadership 2)Impoverished Leadership 3)Supportive Leadership

23 22 Patterns of Leadership “PRIMARILY BY IT’S LEADERS” Thru 1)Exploitive Leadership 2)Impoverished Leadership 3)Supportive Leadership 4)Enlightened Leadership

24 23 Ethics The code of moral principles and values that governs the behavior of a person or group with respect to what is right and wrong

25 24 Personal Ethics Employees learn from watching leaders Ethical leaders generate high trust and respect Based on courage, determination and self- sacrifice Must uphold commitment to values during difficult times

26 25 Organizational Values The enduring beliefs that have worth, merit and importance for the organization

27 26 Values-Based Leadership A relationship between leaders and followers that is based on shared, strongly internalized values that are advocated and acted upon by the leader

28 27 Values Fundamental beliefs that an individual considers to be important, that are relatively stable over time, and that have an impact on attitudes and behavior. End Values –Sometimes called terminal values, these are beliefs about the kind of goals or outcomes that are worth trying to pursue. Instrumental Values –Beliefs about the types of behavior that are appropriate for reaching goals.

29 28 Spiritual Values Values and practices: –Integrity –Humility –Respect –Appreciation for the contributions of others –Fair treatment –Personal reflection

30 29 Spiritual Leadership Create a vision through which organization participants experience a sense of spiritual expression through calling and membership Establish a corporate culture based on altruistic love Addresses followers’ higher order needs for membership and self-actualization Reduces negative feelings, emotions and conflicts


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