Management Exam 2 chapters 8 13 Chapter 8 Organizational Culture Organizational culture is very important to a company s success Organizational Culture Organizational culture is very complex Simply stated organizational culture is the informal set of values and norms that controls the way people in an organization interact Think of culture as the organizations personality the way an organization thinks and does things Thought of as the way we do things around here We need time to get to know a person before we know much about their personality the same can be said for culture o Work there for awhile to understand the culture Culture is important because it defines and guides the organization in ways rules policies and procedures cannot We now realize that culture is pervasive important to success and difficult to change Ex Nordstroms Positives Negatives Organizational culture reduces turnover by establishing sense of identity Organizational culture enhances the stability of the social systems serves in a boundary defining role Organizational culture serves as a control mechanism that shapes attitudes and behaviors If employees identify with the culture and enjoy the culture they are less likely to leave reducing turnover Organization culture becomes a barrier to change when business as usual becomes ineffective Organization culture is a barrier to diversity if the existing culture is monolithic Organization culture is a barrier to growth opportunities for growth are examined in terms of their fit with the existing culture All organizations need to change but this is a barrier for change ex Male dominated culture Growth they have to discuss culture before they can expand o Effected by location for example ASA Framework The ASA framework is key to understanding how organizations create and sustain cultures over time Overtime organizations o Attracts similar individuals through the recruitment process o Selects individuals that fit best with the culture o Attrition occurs with the individuals who don t fit with the culture overtime Hiring and retaining employees is a way that organizations are able to maintain their culture They will recruit only employees that will fit with the culture and select only those that closely fit the culture Overtime sort out those who maintain that culture or don t Leaders influence culture through role modelling and through their reactions to events and others within the organization Rewards are important to individuals and they help shape the culture by indicating what is valued Employees look to leaders for guidance and cues they also look and receive cues from the reward system o If they notice that less than ethical behavior is rewarded then they believe that its part Leadership and Rewards o Seniority o Performance o Behaviors of the culture Cultural Change Process Organization culture acts as a stabilizing factor so it s an impediment to change Cultural change process 6 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 Very difficult to change culture o Change top managers first best way o More likely that a major change will occur if the CEO comes from outside Chapter 9 Leading People and Organizations chapter 10 in book Leadership is something that all organizations need Leadership Leadership can be defined as a o Process something we do o Property something we have As a process leadership is the use of non coercive influence to direct and coordinate the activities of group members As a property leadership is the set of characteristics attributed to those who successfully use influence There is no widely accepted definition for leadership think of it as a social influence process use non threatening behaviors to get things done Leadership V Management Management and leadership are distinct elements Management involves formal power which is linked to the position held within the organization Leadership relies on social influence which is linked to or given by the followers Leadership and management are related o Management using formal power and authority to get things done o Leadership should be considered an art and managers need to understand the process and property of leadership Personality Traits Personality is useful in understanding and predicting the general feelings and behaviors overtime which makes it important to leadership The personality traits considered to be the most important have been labeled as the Big Five Since personality traits are relatively stable they are useful in predicting leadership To some degree all the Big 5 traits are important a well rounded leader needs a good mix Trait Approach The trait approach to leadership attempts to identify stable and enduring traits that differentiate effective leaders from non effective leaders Based on the Trait approach leaders are thought to have more of these traits than non leaders o Extroversion o Neuroticism o Agreeableness o Conscientiousness o Openness to experience o Drive o Desire to lead o Cognitive ability o Motivation o Integrity o Honesty Think of leadership studies as representative progression moving from the trait approach to leader behaviors to the situation approach then the contemporary issues of leadership The trait approach of leadership is based on the concept that people are born with the necessary traits to become great leaders o Either you were born with the traits or not Behavioral Approach The behavioral approach to leadership identifies behaviors that differentiate effective leaders from non effective leaders The behavior approach focuses on observable leader behaviors the action of the leader rather than on unobservable traits o Task oriented behaviors o People oriented behaviors The behavioral approach is based on the concept that leaders use similar actions and behaviors and that we can train people to be good leaders Born with those traits or you can learn Contingency Approach The contingency approach features theories that emphasize the importance of contextual factors such as o The leaders authority and discretion o The nature of the work performed o The nature of the external environment The important aspect here is the interaction between the situational demands and the leaders chosen behaviors The contingency approach recognizes the interaction between the situation and the leaders behavior The LMX model of leadership stresses that leaders
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