Lecture Notes Chapter 8 Organizational Culture Organizational Culture o Organizational culture is very complex o Simply stated organizational culture is the informal set of values and norms that controls the way people in an organization interact o Think of culture as the organization s personality the way an organization thinks and does things We need time to get to know a person before we know their You need to work within an organization for a while to personality understand the culture o Can be thought of as the way we do things around here o Culture is important because it defines and guides the organization in ways rules policies and procedures cannot o We now realize that culture is pervasive important to success and difficult to change Positive Effects of Organizational Culture o Organizational culture reduces turnover by establishing sense of identity If employees identify with the culture and enjoy the culture they are less likely to leave o Organizational culture enhances the stability of the social system serves in a boundary defining role o Organizational culture serves as a control mechanism that shapes attitudes and behaviors Negative Effects of Organizational Culture o Organizational culture becomes a barrier to change when business as usual becomes ineffective o Organizational culture is a barrier to diversity if the existing culture is monolithic o Organizational culture is a barrier to growth Opportunities for growth are examined in terms of their fit with the existing culture ASA Framework o The ASA framework is key to understanding how organizations create and sustain cultures over time o Over time organizations Attract similar individuals through the recruitment process Selects individuals that fit best with the culture Attrition occurs with the individuals who do not fit with the culture over time Leadership and Rewards o Leaders influence culture through role modeling and through their reactions to events and others within the organization o Rewards are important to individuals and they help shape the culture by indicating what is valued Seniority Performance Behaviors Cultural Change Process o Organizational culture acts as a stabilizing factor so it is an impediment to change o Cultural change process six steps 1 Create a sense of urgency 2 Change leaders and key personnel 3 Role model 4 Train 5 Change the reward system 6 Create new stories and symbols o To change an organization s culture is very difficult Often they will start by changing top managers to jump start the process If the new CEO comes from within the organization then the likelihood of cultural change is reduced If the new CEO comes from a different company then it is more likely that a major cultural change will occur Changing top managers is the best way to ensure that cultural change really takes place Chapter 9 Leading People and Organizations Leadership o Leadership can be defined as a something we do something we have Process Property o As a process leadership is the use of non coercive influence to direct and coordinate the activities of group members those who successfully use influence leadership is the set of characteristics attributed to o As a property o Leadership can be seen as a social influence process where we use non threatening behaviors to get things done Leadership vs Management o Management and leadership are distinct elements o Management involves formal power which is linked to the position held within the organization o Leadership relies on social influence which is linked to or given by the followers topics o Leadership and management are different but closely related Leadership should be considered an art Managers need to consider the process and properties of leadership Personality Traits o Personality is useful in understanding and predicting the general feelings and behaviors over time which makes it important to leadership o The personality traits considered to be the most important have been labeled as the big five Extroversion Neuroticism Agreeableness Conscientiousness Openness to experience o Since personality traits are relatively stable they are useful in predicting leadership Trait Approach o The trait approach to leadership attempts to identify stable and enduring traits that differentiate effective leaders from non effective leaders o Based on the trait approach leaders are thought to have more of these traits than non leaders Drive Desire to lead Cognitive ability Motivation Integrity Honesty o Based on the concept that people are born with the necessary traits to become good leaders Behavioral Approach o The behavioral approach to leadership identifies behaviors that differentiate effective leaders from non effective leaders o The behavior approach focuses on observable leader behaviors the action of the leader rather than on unobservable traits Task oriented behaviors People oriented behaviors o Based on the concept that good leaders use similar actions or behaviors and that we can train people to be good leaders Contingency Approach o The contingency approach features theories that emphasize the importance of contextual factors such as The leader s authority and discretion The nature of the work performed The nature of the external environment o The important aspect here is the interaction between the situational demands and the leader s chosen behaviors o Recognizes the interaction between the situation and the leader s behaviors Contemporary Leadership Leaders must use different behaviors in different situations o The LMX model of leadership stresses that leaders develop a unique working relationship with each of their subordinates forming High quality relationships with in group members Low quality relationships with out group members o Theory that leaders form unique relationships with employees that fall into either the in group or out group category More trusting relationship with in group members Out group members are just given the charge of completing their job o This is a very different approach because we are saying that leaders form this dynamic relationship with each and every employee o Transactional leadership can be considered a leading for stability where leaders focus on Contingent rewards Passive management by exception Active management by exception o Transactional leaders work to keep the trains running on time o Transactional leadership is focused on leaders that take on job focused behaviors This is not a poor form of
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