Organizational Culture Organizational Culture Inventory Measures shared beliefs

Organizational Culture

Organizational Culture Inventory Measures shared beliefs, values and expectations within an organization n Provides a revealing look at: n what behaviours are rewarded? n how motivated and satisfied are employees? n how effectively they perform? n

The Circumplex 12 1 11 2 10 3 9 4 8 5 7 6

Task Orientation versus People Orientation 12 1 11 2 10 Task 9 3 People 4 8 5 7 6

Job Satisfaction versus Coping with Change 12 11 1 2 10 Satisfaction 3 9 Coping 4 8 7 5 6

Three Styles of the Circumplex Striking the “Right” Balance Constructive Style n Passive/Defensive Style n Aggressive/Defensive Style n

Measuring Organizational Culture n OCI Ideal n n The set of behaviours that allow individuals to excel in their jobs OCI Actual n The set of behaviours that presently exists and are “rewarded” in the organization

Ideal Organizational Culture Ideal Culture Profile 12 11 1 2 10 As reported by over 5000 individuals in describing the “ideal” or “best place to work” culture. 3 9 4 8 7 5 6

OCI ACTUAL How can we move closer to our IDEAL culture? OCI IDEAL

Subcultures An organization can have several cultures or what are known as subcultures. n Subcultures are smaller cultures that develop within a larger organizational culture that are based on differences in training, occupation, or departmental goals. n

Subcultures n Effective organizations develop an overarching culture to manage differences between subcultures.

Subculture Profiles Organization Department A Department B

The “Strong Culture” Concept An organizational culture with intense beliefs, values, and assumptions. n A strong culture provides great consensus concerning “what the organization is about” or what it stands for. n Weak cultures are fragmented and have less impact on organizational members. n

The “Strong Culture” Concept An organization does not have to be big to have a strong culture. n Strong cultures do not necessarily result in blind conformity. n Strong cultures are associated with greater success and effectiveness. n

Factors Promoting Constructive Norms Member Level Goal Setting Job Design Motivational Processes Manager Level Sources of Power/Influence Developmental Discussions Methods of Reinforcement Organizational Level Respect for Members Employee Involvement Communication

Member Level Goal Setting n n n Set jointly by managers & employees Challenging but realistic Accepted by those responsible for accomplishing them

Member Level Job Design n n Autonomy (members decide how to carry out their work) Skill variety (members use a number of different skills) Task significance (members understand how work affects others) Feedback (members able to assess quality of their work)

Member Level Motivational Processes n n See performance increase when extra effort is made Recognize for improving job performance Receive meaningful rewards for performance Believe high performers are rewarded more than average performers

Manager Level Sources of Power & Influence n n Expertise Respectability Empowering orientation Good citizenship

Manager Level Performance Appraisal n n n Progressive Performance Appraisal Based on real measures of performance Reflective of performance rather than favoritism

Manager Level Methods of Reinforcement n n Recognize effort and improvement in performance Use a variety of performance incentives

Organizational Level Respect for Members n n n Members are treated fairly regardless of their race, gender, or age All members are treated with respect and dignity Opportunities for training and advancement are fair and equitable

Organizational Level Employee Involvement n n n Encourage members to be actively involved in improving the organization and increase productivity Show interest in employees’ suggestions Implement good ideas offered

Organizational Level Communication n n Downward communications that are specific, timely, and straight from the source Upward communications that are understood and acted upon

Prescription for Change Working Toward A Constructive Goal

Setting Your Goals for Constructive Environment n. Specific n. Measurable n. Attainable n. Realistic n. Time Bound

A Process PLAN ACT DO CHECK

Outcomes Associated with the Cultural Styles Constructive Passive/ Defensive Aggressive/ Defensive ++ -++ -- ++ 0 ++ + 0 0 0 ++ ++ - + 0 + Individual Level Member Satisfaction Person/Norm Conflict Motivation Group/Unit Level Group Motivation Work Avoidance Co-operation/Teamwork Organizational Level Perceived Client Satisfaction Reputation for Customer Service Turnover Rate Key: + Positive correlation 0 No correlation - Negative correlation

Factors Reinforcing the Cultural Styles Constructive Passive/ Defensive Aggressive/ Defensive ++ ++ ++ -0 - Clarity of Goals Set Participatively ++ + 0 -- 0 - Monetary Rewards Praise Criticism Other Punishment ++ ++ --- 0 ++ + + 0 ++ ++ Person-Centred Task-Centred ++ 0 -++ 0 0 ++ 0 + Job Level Autonomy Significance Complexity of People-Related Activities Goal Characteristics Reward/Punishment Practices Leadership Styles Structural Characteristics Shared Influence Centralization Standardization Key: + Positive correlation 0 No correlation - Negative correlation

Goal Setting Clear, challenging goals —set participatively Less effective goals and goal setting

Rewards vs. Punishment Organizations emphasizing rewards Organizations emphasizing punishment

Quality of Customer Service Superior customer service Poor customer service

Role Conflict “Inconsistent Messages” Low role conflict High role conflict

High vs. Low Satisfaction with Organization High commitment and satisfaction with quality improvement Low commitment and satisfaction