CHAPTER FOUR

SOCIAL SYSTEMS AND

ORGANIZATIONAL CULTURE
 CHAPTER OBJECTIVE
• THE OPERATION OF SOCIAL SYSTEM
• THE PSYCHOLOGICAL CONTRACT
• SOCIAL CULTURES AND THEIR IMPACT
• THE VALUE OF CULTURAL DIVERSITY
• ROLE AND ROLE CONFLICT IN ORGANIZATIONS
• STATUS AND STATUS SYMBOLS
• ORGANIZATIONAL CULTURE AND ITS EFFECTS
• FUN WORKPLACE
 ORGANIZATION AND
CULTURE
• PRIMARY KEY TO THE COMPANY’S CULTURE RESIDES IN A
“COVENANT” THAT IS ESTABLISHED BETWEEN TOP
MANAGEMENT AND ALL EMPLOYEES.

• SOCIAL SYSTEM HAVE PROFOUND EFFECT ON THE WAYS

THAT EMPLOYEES WORK TOGETHER. CULTURES PROVIDE
BOTH DIRECT AND INDIRECT CUES TELLING WORKERS
HOW TO SUCCEED .
UNDERSTANDING A SOCIAL
SYSTEM
• SOCIAL SYSTEM IS A COMPLEX SET OF HUMAN
RELATIONSHIP INTERACTING IN MANY WAYS .
-MUTUALLY INDEPENDENT
- SYSTEM’S BOUNDARIES
• SOCIAL SYSTEM ARE OPEN SYSTEM THAT INTERACT
WITH THEIR SURROUNDINGS .

• SOCIAL EQUILIBRIUM A DYNAMIC CONCEPT , NOT A

STATIC ONE
 Functional
effects

The functional effect of failure is used when we have

computations that may fail with a specific type of value.
Either has two types of value

Dysfunctional
effects

The term dysfunctional is defined as "abnormal or impaired

function" on the part of an individual person between people in
any sort of relationship or amongst members of a family
 Psychological
contracts

Definition:
The psychological contract defines the conditions
of each employees psychological involvement both
contributions and expectations with the social
system.
Outline
s:
*Employees agree to give a certain amount of loyalty.
*Employees give extra effort,creativity.
*In return they expect more than economic reward from
the system.
 Economic
contacts

Definition:
The economic contract is an agreement between legal
persons specifying their mutual relation, rights and
obligations in order to realize certain economic aims

Outlines:
*Organization must met both psychological and
economic expectations

*Employees tend to experience satisfaction

*Employees stay with organization and perform well

*A desirable sense of mutuality has been reached

 Employee :
Employee : If expectations are met:
*Expected gains *High job satisfaction
*Intended *High performance
contribution *Continuance with
organization
If expectations are not
Psychological met:
contract *Low job satisfaction
*Low performance
*Possible separation

Economic Employer:
contract If expectations are
met:
*Employee retention
*Possible promotion
If expectations are not
Employer: met:
* Expected gains *Corrective
*Reward offered action;dicipline
*Possible separation
 SOCIAL CULTURE

A COMPLETE SET OF MEANINGS, HABITS, VALUES AND

BEHAVIORS ADOPTED BY ONE OR MORE SOCIAL FORMATION.
 KNOWLEDGE OF SOCIAL CULTURE IS ESPECIALLY IMPORTANT
BECAUSE MANAGERS NEED TO UNDERSTAND AND APPRECIATE
THE BACKGROUNDS AND BELIEFS OF ALL MEMBERS OF THEIR
WORK UNIT.
 PEOPLE LEARN TO DEPEND ON THEIR CULTURE.
 CULTURAL DIVERSITY

CULTURAL DIVERSITY IS THE EXISTENCE OF A VARIETY OF

CULTURAL GROUPS WITHIN A SOCIETY.
RICH VARIETY OF DIFFERENCES AMONG PEOPLE AT
WORK.
 DIFFERENCES BETWEEN
DISCRIMINATION AND PREJUDICE:

DISCRIMINATION PREJUDICE
 UNFAIR TREATMENT OF  A NEGATIVE ( OR POSITIVE )
MEMBERS OF A PARTICULAR ATTITUDE TOWARD A CERTAIN
GROUP BASED ON THEIR GROUP THAT IS APPLIED TO ITS
MEMBERSHIP IN THAT GROUP INDIVIDUAL MEMBERS
 PREJUDICE IS AN ATTITUDE
 DISCRIMINATION INVOLVES
ACTION AND BEHAVIOR  CAN BE CAUSED BY LACK OF
KNOWLEDGE, IGNORANCE AND
 CAN BE A RESULT OF PREJUDICE
STEREOTYPING
 LEGAL ACTION CAN BE TAKEN  LEGAL ACTION CAN NOT BE TAKEN
 Increased
productiv
Improv ity
e Improv
compan e
y creativi
reputati ty
on Benefits
of cultural
diversity
Reduce
employ in the Increas
ee work ed
turnove places profit
r
Impro
ve Improved
cultur employee
al engagem
ent
insigh
ts
 SOCIAL CULTURE
VALUES
THE WORK ETHIC

WORK ETHIC IS A BELIEF THAT

HARD WORK AND DILIGENCE
HAVE A MORAL BENEFIT
AND AN IMPORTANCE OF WORK
TO STRENGTHEN CHARACTER
AND INDIVIDUAL ABILITIES. IT
IS A SET OF VALUES CENTRED
ON IMPORTANCE OF WORK AND
MANIFESTED BY
DETERMINATION OR DESIRE TO
WORK HARD.
EXAMPLE'S OF GOOD ETHICS

1. BECAUSE OF STRONG WORK ETHIC, A MAN WAS KNOWN

AS A HARD WORKER THROUGHOUT.

2. THE LAZY STUDENT MUST IMPROVE HIS WORK ETHIC IF

HE PLANS TO PASS TO THE NEXT GRADE.

3. A GOOD ATTITUDE AND A SOLID WORK ETHIC ARE KEYS

THAT PEOPLE WITH MORAL BELIEFS HOLD IN THEIR HEARTS.
 SOCIAL
RESPONSIBILITY

SOCIAL RESPONSIBILITY IS A DUTY EVERY INDIVIDUAL

HAS TO PERFORM SO AS TO MAINTAIN A BALANCE
BETWEEN THE ECONOMY AND THE ECOSYSTEMS FOR
THE ORGANISATION.
 ROLE
• PATTERN OF ACTIONS EXPECTED OF PERSON
IN ACTIVITIES INVOLVING OTHERS.
• REFLECTS A PERSON IN THE SOCIAL SYSTEM,
WITH IT’S ACCOMPANYING RIGHTS AND
OBLIGATIONS POWER AND RESPONSIBILITIES.
• HAVING ROLES BOTH ON THE JOB AND AWAY
FROM IT FOR A PERSON.
• PREFORMS THIS FUNCTION IN SOCIAL
SYSTEM.
 Leader
er

A n
is

Co
v

r
Ad

su

A
An

m
A

e
Foll
owe Who is A
r bor dinate
an Su
employe A
e? Com
A h o lder Cha mittee
k
Stoc n
irpe
rso

A ork
Specialist
W
on
Pe aff
rs
St

er
A

Each Employee Performs

 ROLE PERCEPTIONS
• ACTIVITIES OF MANAGERS AND WORKERS ARE GUIDED BY IT.
• THEY SUPPOSED HOW TO ACT THEIR ROLES AND HOW OTHERS SHOULD ACT
WITH THEIR ROLES.
• MANAGERS CAN QUICKLY ADAPT THE CHANGING OF ROLE.
• SUPERVISORS ARE ALSO NEED TO CHANGE ROLES RAPIDLY.
• FOR INTERACT, AS A MANAGER AND AN EMPLOYEE, THEY NEED TO
UNDERSTAND AT LEAST THREE PERCEPTIONS:
I. MANAGER’S ROLE PERCEPTION AS REQUIRED BY THE JOB BEING
PERFORMED.
II. MANAGER’S PERCEPTION OF THE ROLE OF THE EMPLOYEE BEING
CONTACTED.
III.MANAGER’S PERCEPTION OF HIS OR HER ROLE AS LIKELY TO BE SEEN
BY THE EMPLOYEE.
• ONE CAN’T MEET THE NEEDS OF OTHERS UNLESS ONE CAN PERCEIVE WHAT
THEY EXPECT.
 Manager Employee
Manager’s
perception of own
A D Employee’s perception
of manager’s role
role

Manager’s Employee’s perception

perception of B E of own role
employee’s role

Manager’s
Employee’s
perception of the C F perception of the
manager’s role as
employee’s role as
seen by the
seen by the
employee
manager

The Complex Web of Manager – Employee Role

Perceptions
 MENTORS

• THIS IS ROLE MODEL.

• THEY TEACH, ADVICE, COACH, SUPPORT, ENCOURAGE, ACT AS
SOUNDING BOARDS, AND SPONSOR THEIR PORTAGES.
• THE ADVANTAGES OF SUCCESSFUL MENTORING PROGRAMS ARE
MANY.
• MENTORS ARE OLDER, EXPERIENCED, SUCCESSFUL
• THEY ARE RESPECTED BY THEIR PEERS FOR THEIR COMMITMENT,
EFFECTIVE COMMUNICATION, SHARING IDEAS, DEVELOPING
OTHERS.
• MENTORS ARE OFTEN NOT THE EMPLOYEE’S DIRECT SUPERVISOR.
• AT LAST, SOME SEVERAL PROBLEM CAN ARISE IN MENTORING
PROGRAMS.
 ROLE CONFLICT

• WHEN A PERSON CAN’T PLAY OTHERS DIFFERENT

PERCEPTION OR EXPECTATIONS, THEN ROLE CONFLICT
HAPPENED.
• IT MAKES DIFFICULT TO MEET ONE SET OF EXPECTATIONS
WITHOUT REJECTING ANOTHER.

Role Ambiguity
• Substantially unknown roles called role ambiguity.
• People are not sure about their act at this type of situation.
• Job satisfaction and organizational commitment will likely decline
due to role ambiguity
 STATUS
• STATUS IS THE SOCIAL RANK OF A
PERSON IN A GROUP.
• STATUS SYSTEM
• STATUS ANXIETY
• STATUS DEPRIVATION
 STATUS RELATIONSHIPS

• EFFECTS OF STATUS
• PARTICIPATIONS
• OPPORTUNITIES OF HIGHER RANKERS
• ISOLATION OF LOWER RANKERS
• INTERACTIONS
 STATUS SYMBOLS

• THE VISIBLE THINGS THAT ATTACH TO A

PERSON OF SOCIAL RANK.
• EXISTENCE (OFFICE ,SHOP ,WAREHOUSE )
• VARIATION (SUIT , JOB TITLE ,LOCATION )
• INFLUENCES OVER CUSTOMER
 Sources of status

There are numerous sources of status

but in a typical work situation several
sources are easily identified .
 Major sources of status are :
 Education
 Job level
 Ability
 Job skill
 Other sources of status are :
 Amount of pay
 Method of pay
 Seniority and age
 Stock option
 Significant of status

 Work hard to achieve success.

 Achieve company's goals
 Influences employee to transfer
 Serves to motivate
 Encouraged to qualify for high
status jobs.
 ORGANIZATIONAL CULTURE
 Social culture creates the wide -ranging
context in which organization operate.
 The important function of Organizational
culture is Employee Behavior
 Shared norms help define culture
 Benefit of Organizational culture
 CHARACTERISTICS OF ORGANIZATIONAL CULTURE

Distinctive : Culture has it own Independence

Stable: Changing slowly over time

Implicit: Unexplored there internal culture

Symbolic: Represent of underlying belief and value

 COMMUNICATING
AND CHANGING
CULTURE

ORGANIZATIONAL SOCIALIZATION: WHICH IS

CONTINUOUS PROCESS OF TRANSMITTING KEY
ELEMENTS OF AN ORGANIZATION’S CULTURE.

ORGANIZATIONAL INDIVIDUALIZATION : IT
OCCURS WHEN EMPLOYEES SUCCESSFULLY
EXERT INFLUENCE ON THE SOCIAL SYSTEM
AROUND THEM AT WORK.
FOUR COMBINATIONS OF
SOCIALIZATION AND
INDIVIDUALIZATION

Creative
Conformity Individualiza
tion

Isolation Rebellion
 Effectiveness of Methods for Changing
Organization Culture
Very
great

Great

Modera
te

Minimal

Communicate Train Formulate Reward Use stories Publicly Use

slogans Appoint manager
Top employees value behaviors recognize
of culture
Management statement heroes,
heroines
 FUN WORKPLACES

KEY FEATURES :

IT IS EASILY RECOGNIZED

 ITS MEANS DIFFERENT THINGS TO VARIOUS PEOPLE
 IT IS RELATIVELY EASY TO CREATE AT WORK
 IT ELICITS A BOARD RANGE OF PERSONAL AND
ORGANIZATIONAL
PAYOFFS.
THANK YOU