Chapter 7new

Chapter 7Creating and Managing Organizational Culture: 

Chapter 7 Creating and Managing Organizational Culture What’s on the agenda? What is organizational culture? How is culture transmitted? Where does culture come from? Can organizational culture be managed? Corporate social responsibility

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Organizational culture is the set of shared values and norms that control organizational member’s interactions with each other and with people outside the organization. What are organizational values, and how do they affect behavior? Terminal values are desired end states or outcomes that people seek to achieve. Instrumental values are desired modes or patterns of behavior. In other words, terminal values are “what we want to be,” and instrumental values are “how we’re going to get there.”

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An organization’s culture is transmitted to its members through socialization processes. Socialization is the process by which members learn and internalize the values and norms of an organization’s culture. Van Mannen and Schein’s socialization model explains how people can be guided to the values desired by the organization The V-S model of socialization explains how people are guided towards particular role orientations. Role orientation is the characteristic way in which newcomers respond to a situation. There are two basic types of role orientation.

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An institutionalized role orientation results when individuals are taught to respond to a new context in the same way that existing members respond to it. An individualized role orientation results when individuals are allowed and encouraged to be creative and experimental when responding to a new situation. There are various tactics that can be used to socialize newcomers to a particular role orientation, depending on what the organization desires from its members. How these tactics shape employee’s role orientation is summarized in Table 7.1.

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Organizational Theory

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These specific socialization tactics are not the only paths that allow organizational culture to be transmitted to members. Organizations also use stories, ceremonies, and language to convey cultural values.

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Organizational Theory TABLE 5.2 Organizational Rites Type of rite Example of rite Purpose of rite Rite of passage Induction and Learn and internalize basic training norms and values Rite of integration Office Christmas party Build common norms and values Rite of enhancement Presentation of annual Motivate commitment to award norms and values Rite of degradation Firing of top executive Change or reaffirm norms and values

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Organizational stories and language are important media for communicating culture. Stories provide important clues about the kinds of behaviors that the organization values and frowns on. Organizational culture develops from the interaction of four factors:

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Organizational Theory FIGURE 7.2 Where an Organization’s Culture Comes From

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Corporate social responsibility is an organization’s moral responsibility to stakeholder groups that are affected by the organization’s actions. An organization can adopt a narrow or a broad stance on social responsibility. An organization with a narrow stance on social responsibility believes it is being responsible as long as it acts within the law and plays by the rules of the game. An organization with a broad stance on social responsibility views itself as a moral agent and examines every situation from a moral perspective.