Chapter 9 1 What is the Nature of Organizational Culture a Organizational culture is the personality of the organization i Organizational culture 1 The system of shared beliefs and values that develops within an organization and guides the behavior of its members 2 The way we do things here 3 Also known as corporate culture 4 Strong impact on performance and quality of work b Managers must experience i Develop culture ii Encourage innovation iii Manage change c Organizational culture shapes behavior and influences performance i Organizational culture helps to 1 Shape attitudes 2 Reinforce beliefs 3 Direct behavior 4 Establish performance expectations and the motivation to fulfill them ii Helps every member understand what is right and what is wrong in terms of personal behavior iii Strong cultures 1 Clear well defined performance driven and widely shared by members 2 Fit the nature of the business and the talents of the employees while keeping a clear performance vision front and center 3 Encourage positive behaviors and discourage dysfunctional ones 4 Created through socialization a Process of helping new members learn the culture of an organization as well as the behaviors shared amongst members b Begins with education and continues with an employer s orientation and training programs d The observable culture is what you see and hear as an employee or customer i Observable culture 1 What you see in people s behaviors and hear in their conversations a Reflected in how people dress and speak to and behavior towards one another and towards their customers 2 Found in stories tales about events conveying core values heroes people who display core values rituals celebration of heroes and events displaying core values and symbols language and other symbols conveying core values e The core culture is found in the underlying values of the organization i Core culture 1 Found in the underlying values of the organization 2 Consists of core values a Beliefs and values shared by organization members about the right ways to behave b Often emphasize performance excellence innovation social responsibility integrity worker involvement customer service and teamwork 3 Value statements are often found on websites mission statements and executive statements f Value based management supports a strong organizational culture i Value based management 1 When managers practice core values model them for others and communicate and reinforce them in all that they do 2 Actively develops communicates and enacts shared values ii Symbolic leader 1 Uses language and symbols and actions to communicate establish and maintain a desired organizational culture 2 Act and talk the language of the organization 3 Use language metaphors or positive examples from another context iii Workplace spirituality 1 Involves practices that create meaning and shared community among organizational members 2 Tries to enhance work experience by bringing meaning to work and engaging each other with a sense of shared community 2 How do organizations support and achieve innovation a Organizations pursue process product and business model innovations i Innovation 1 Process of taking a new idea and putting it into practice 2 Three forms a Process innovations b Product innovations i Result in better ways of doing things i Result in the creation of new or improved goods and services c Business model innovations i Result in new ways of making money for the firm b Green innovations pursue and support the goals of sustainability i Green sustainable innovation 1 Reduces the carbon footprint of an organization or its products a Emerging quite frequently now as businesses strive to create new products and production methods with minimal environmental impact c Social innovations seek solutions to important societal problems i Social innovation Innovation driven by a social conscience 1 2 Stems from creativity in social entrepreneurship a Pursues innovative ways to solve pressing social b Social entrepreneurs try to make the world a problems better place d Commercializing innovation turns ideas into salable products 1 Requires encouragement and support for invention and i Management of innovation application ii Commercializing innovation 1 Process of turning ideas into salable products a Idea creation i Discovering a potential product or way to modify an existing one b Initial experimentation in prototype form c Feasibility determination i Sharing the idea with others and testing it i Testing the practicality and financial viability of the new product i Commercializing the product for sale to d Final application 2 Reverse innovation customers Trickle up innovation a b Recognizes the potential for valuable innovations to be launched from lower organizational levels and diverse locations including emerging markets e Innovative organizations share many common characteristics 1 Strategy includes innovation 2 Culture values innovation 3 Structures support innovation 4 Management supports innovation 5 Staffing for creativity and innovation ii Skunkworks 1 Special creative units set free from the normal structure for the purpose of innovation 3 How do managers lead the processes of organizational change i Change leader 1 Managers who act as change agents by trying to change the behavior of another person or a social system ii While it is obvious that most people should be change leaders people often like to stick to the status quo 1 Change leaders a Confident of ability b Willing to take risks c Seize opportunity d Expect surprise e Make things happen 2 Status quo managers a Threatened by change b Bothered by uncertainty c Prefer predictability d Support the status quo e Wait for things to happen b Organizations pursue both transformational and incremental changes i Transformational change organization 1 Results in a major and comprehensive redirection of the a New vision new strategy new culture new structure and even new people b Main reason for failure bad implementation 2 Guidelines for Leading Large Scale Transformational Change a Establish a sense of urgency for change b Form a powerful coalition to lead the change c Create and communicate a change vision d Empower others to move change forward e Celebrate short term wins and recognize those f Build off successes align people and systems who help with new ways g Stay with it keep the message consistent champion the vision ii Incremental change performance 1 Bends and adjusts existing ways to improve
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