MGMT 3720 Lecture 9 Outline of Last Lecture Chapter 15- Foundations of organization structureI. 6 elements of an organization’s structureII. Characteristics of a bureaucracyIII. Matrix organizationIV. Virtual organizationV. Boundaryless organizationsVI. How organizational structures differ and contrasting mechanistic and organic modelsVII. Behavioral implications of different organizational designsOutline of Current Lecture Chapter 16- Organizational CultureI. Common characteristics of organizational cultureII. Functional and dysfunctional effectsIII. Factors that create and sustain organizational cultureIV. How culture is transmitted to employeesV. How an ethical culture can be createdVI. Positive organizational cultureVII. Spiritual cultureVIII. National culture effectThese notes represent a detailed interpretation of the professor’s lecture. GradeBuddy is best used as a supplement to your own notes, not as a substitute.Current LectureOrganizational culture- a system of shared meaning held by members that distinguish the organization from other organizations. “This is how we do things here, how we reward, punish, etc. that makes us unique”Seven primary characteristics that give a good summary or idea of an organization’s culture: (Each of the characteristics exists on a continuum from low to high)1. Innovation and risk taking- the degree to which employees are encouraged to be both innovative and take risks2. Attention to detail- the degree to which employees are expected to show precision, analysis, and attention to detail3. Outcome orientation- the degree to which management focuses on results rather than on processes used to obtain the results.4. People orientation- the degree to which management decisions consider the effect of outcomes on people within the organization5. Team orientation- the degree to which work activities are organized around teams rather than individuals6. Aggressiveness- the degree to which people are aggressive and competitive. 7. Stability- the degree to which activities emphasize maintaining the status quo. *Organizations differ in at least these waysFour different types of culture based on competing values:1.The collaborative and cohesive clan (individuals are linked closely with a common goal or characteristic) - Job attitudes were especially positive in clan-based cultures2.The innovative and adaptable adhocracy3.The controlled and consistent hierarchy4.The competitive and customer focused market- Innovation was especially strong and financial performance was especially good in market cultures.Culture as a Descriptive TermOrganizational culture is concerned with employees’ perceptions of the characteristics of the culture, not whether they like them. - Does it encourage teamwork? - Does it reward innovation? - Does it stifle initiative? *It differs from job satisfaction:- Job satisfaction is evaluative. - Organizational culture is descriptive. Do Organizations Have Uniform Cultures?Most organizations have a dominant culture and numerous sets of subcultures. - Dominant culture expresses the core values a majority of members share and that give the organization distinct personality. (It is the “shared meaning” aspect of culture that makes it such a potent device for guiding and shaping behavior)- Subcultures tend to develop in large organizations to reflect common problems, situations, or experiences that members face. - Subcultures can influence member behavior tooStrong versus Weak CulturesStrong culture – core values are intensely held and widely shared. - The more members accept the core values, and the greater their commitment to those values, the stronger the culture is. The unanimity of purpose builds cohesiveness, loyalty, and organizational commitment, and in doing so, reduces employee turnover. - The stronger an organization’s culture, the less management needs to develop formal rules and regulationsCulture versus FormalizationHigh formalization- creates predictability, orderliness, and consistency.Formalization and culture are two different techniques to obtain the same results.*BOTH formalization AND strong culture effect, drive, and control behavior.What role does culture perform? Cultures can be positive or negative for organizations.The Functions of Culture:- Boundary-defining role- Conveys a sense of identity for members- Facilitates the generation of commitment (characteristic of spirituality)- Enhances the stability of the social system- Serves as a sense-making and control mechanism- Defines the rules of the game-Today’s trend toward decentralized organizations makes culture more important than ever, but ironically it also makes establishing a strong culture more difficult. -When formal authority and control systems are reduced, a culture’s shared meaning points everyone in the same direction. -Employees organized in teams may show greater allegiance to their team and its values than tothe values of the organization as a whole. -In virtual organizations, the lack of frequent face-to-face contact makes establishing a common set of norms very difficult. -Strong leadership that communicates frequently about common goals and priorities is especially important in innovative organizations.Individual–organization “fit”—that is, whether the applicant’s or employee’s attitudes and behavior are compatible with the culture—strongly influences who gets a job offer, a favorable performance review, or a promotion. Culture Creates ClimateOrganizational climate- the shared perceptions organizational members have about their organization and work environment.* This aspect of culture is like team spirit at the organizational level. When everyone has the same general feelings about what’s important or how well things are working, the effect of these attitudes will be more than the sum of the individual parts. A positive overall workplace climate has been linked to higher customer satisfaction and financial performance. Climates can interact with one another to produce behavior. Example: a positive climate for worker empowerment can lead to higher levels of performance in organizations that also have aclimate for personal accountability. Climate also influences the habits people adopt. Example: If the climate for safety is positive, everyone wears safety gear and follows safety procedures even if individually they wouldn’t normally think very often about being safe. Positive safety climate decreases the