Organization Behaviour

7th March 2011

Culture
It is helpful....to think of culture as analogous to music:
(a) If another person hasnt heard a particular piece of music, it is impossible to describe. (b) Before the days of written scores, people had to learn informally by imitation.

(c) People were able to exploit the potential of music only when they started writing musical scores.

Culture What is
Shared system of meanings Relative
Perceptions of reality variable Nothing intrinsically superior/inferior

Learned About groups

Uniqueness in Mental Programming

Specific to Individual

Personality

Inherited and learned

Specific to Groups

Culture

Learned

Universal

Biological

Human Nature

What Culture is not

Right or Wrong

Inherited
About individual behaviour

Layers of Cultural Programming

Corporate culture

Practices

Corporate practices

Professional culture
Values

Professional ethics
Religious values Basic assumptions

National Culture

Classification of National Cultures

Pioneering work of Geert Hofestede

50 Countries
4 dimensions represent broad tendency to prefer certain stakes of affairs over others

Classification of National Cultures

Dimensions proposed by Hofestede:
1. 2. 3. 4. Power Distance Uncertainty Avoidance Individualism/Collectivism Masculinity/Feminity

Classification of National Cultures

1. POWER DISTANCE:
Inequality as irreducible Conditioned to accept Boss has more power
Opinions/decisions are right

Superiors/Subordinates unequal Hierarchy based on existential inequality

Business Areas Affected by Power Distance

Low Power Distance Less centralization Flatter organization pyramids Managers seen as making decisions after consulting with subordinates High Power Distance Greater centralization Steep organization pyramids Managers seen as making decisions autocratically and paternalistically

Business Areas Affected by Power Distance

Low Power Distance Close supervision negatively evaluated by subordinates Managers like to see themselves as practical and systematic, they admit a need for support Higher educated employees hold much less authoritarian values than lower educated ones High Power Distance Close supervision positively evaluated by subordinates Managers like to see themselves as benevolent decision-makers

Higher and lower educated employees hold similar values about authority

Classification of National Cultures

2. UNCERTAINTY AVOIDANCE
Lack of tolerance for ambiguity and rules Life-time employment high uncertainty avoidance cultures

Business Areas Affected by Uncertainty Avoidance

Low Uncertainty Avoidance Live by the day High uncertainty Avoidance Worry about the future

Less emotional resistance to change

Less hesitation to change Other criteria than seniority More risk taking Hope of success Conflict is natural Delegation to subordinates

More emotional resistance to change

Tendency to stay with same Seniority Less risk taking Fear of failure Conflict is undesirable Initiative kept under control

Intersection of Power Distance & Uncertainty Avoidance

0

Uncertainty Avoidance

Denmark India

56 50

Japan Guatemala

112 10 45 60 110

Power Distance

Classification of National Cultures

3.

INDIVIDUALISM/COLLECTIVISM
Concern for I than WE Individual characteristics take precedence over group membership

Business Areas Affected by Individualism

Low Individualism Involvement primary moral Employees expect organizations to look after them life family Organization influence members well-being Employees expect organization to defend their interests High Individualism Involvement primarily calculative Organizations not expected to look after employees Organization has moderate influence Employees expected to defend their own interests

Business Areas Affected by Individualism

Low Individualism Promotion based on seniority High Individualism Promotion based on market value Emphasis on individual initiative Everyone has a right to a private life

Emphasis on belonging to organization Private life invaded by organizations

Classification of Natural Cultures

4. MASCULINITY/FEMINITY
Extent of assertiveness vs. friendly atmosphere/getting along with boss/nurturance Definition of gender roles

Business Areas Affected by Masculinity

Low Masculinity Less occupational segregation by gender Belief in equality of the sexes Some young men and women want careers, others do not High Masculinity Some occupations are typically male, others female Belief in inequality of the sexes Young men expect to make a career, those who do not see themselves as failures Fewer women in more qualified, better-paid jobs Higher job stress More industrial conflict

More women in more qualified, better-paid jobs Lower job stress Less industrial conflict

Organization Culture and its Levels Came into prominence during 1970s
Search for keys to survival in competitive environment
In search of excellence during early 1980s. Indications that cultures were real & could be managed.

Organization Culture and its Levels

Pattern of basic assumptions that are considered valid and are taught to new members as the way to perceive, think and feel in the organization.

Organization Culture and its Levels

Artifacts Personal enactment Ceremonies and rites Stories Rituals Symbols Visible but often not decipherable

Values Testable in the physical environment Testable only by social consensus

Greater level of Awareness

Basic Assumptions Relationship to environment Nature of reality, time and space Nature of human nature Nature of human activity Nature of human relationships

Taken for granted Invisible Preconscious

Organization culture and its Levels

ARTIFACTS
Symbols in physical and social environment Personal Enactment Behaviour that reflects values Ceremonies Important activities enacted on important occasions; rewarding/recognizing employees Rites Rites of passage; Rites of enhancement; rites of renewal; Rites of integration, Rites of conflict reduction; Rites of degradation Stories Stories about boss; Getting fired; Employee relocation; Lower level employees can rise to top; Crisis situations; Status considerations when rules are broken Rituals Symbols Represent organizational identity

Organization Culture and its Levels

Values:
Deeper level of culture, belief about what should be or should not be. Often consciously articulated Difference between espoused and enacted values

Organization Culture and its Levels

Assumptions:
Deeply held beliefs that guide behaviour As deepest and fundamental essence of culture Often unconscious

Functions of Organization Culture

Serves 4 basic functions:
Provides sense of identity and increases commitment Is sense making device Reinforces values Serves as a control mechanism for shaping behaviour

Effects of Organization Culture

3 perspectives on relationship between organization culture and performance
Strong Culture perspective
Facilitates performance for 3 reasons: goal alignment, high motivation & control without oppression. What if strong culture takes the organization down the wrong path?

The fit perspective

Good only if it fits the strategy Study in USA showed cultures consistent with industry help managers take decisions. Doesnt explain how firms can adapt to environmental change.

Effects of Organization Culture

The Adaptation perspective

Cultures that help organizations adapt to environmental changes are associated with excellent performance Kotters study results were striking

Summarization of Kotters Study

Adaptive Organizational Culture Core Values Managers care deeply about customers, stockholders, and employees. They also strongly value people and processes that can create useful change. Managers pay close attention to all their constituencies, especially customers, and initiate change when needed, even if that entails taking some risks. Non-adaptive Organizational Culture Managers care mainly about themselves, their immediate work group. They value the orderly and risk reducing management process. Managers tend to behave somewhat insularly, politically, and bureaucratically.

Common behaviour

Leaders Role in Shaping Culture

5 elements in shaping Culture
What leaders pay attention to How leaders react to crisis How leaders behave How leaders allocate rewards How leaders hire and fire individuals

Career Planning & Development

How Do We Define CAREER

External Career Criteria Defines progression of steps through an occupation

CAREER

Internal Career Criteria Steps/stages that make up self concept of progression through an occupation

Career Management

How the external career as defined by the organization matches the internal career as defined by the employee.

Career & Life Transitions

Age
15-22 22-30

Stages Career
Pre-career Exploration Early career Trial Early career establishment

Life
Adolescence Youngadulthood transition Young Adulthood

Career Task
Right Career/ Education Variable Job Adjusting to work Area of competence Independent contributor

Psychological Issues Career

Discovering needs/ interests and abilities Overcoming insecurity/ inexperience Work with others Prof/organizational Commitment Feelings of failure

Life
Self identity Independence- support Balance needs with others Making commitment- Life style, values, child rearing Demands of adulthood

30-38

38-45

Mid career transition

Mid-Life Transition

Reassessing talents Mentoring others

Taking more responsibility Decision about future of business Selecting leaders

Leveling off Resolving work-life conflicts

Competition of young Wisdom knowledge balance Loss of power New sources of satisfaction Sense of worth

Changes in life Ambivalence towards children

Deeper relationship with spouse Loss-children leave home Developing new hobbies Awareness of death Come to terms with lifes choices

45-55

Middle career growth Late career Maintenance & Disengagement

Middle Adulthood Late Adulthood

55-62

Integrated HRD Model

(Conceptual Framework & System Linkages)
Business Plans and Strategies KRAs Integrated Performance Management System Career Planning & Development

Measures of Performance HR Planning Position Profiling

Multi-Rater Appraisal

Competency Mapping Drivers of Superior Performance

Potential Assessment (Assessment Centre)

Training Needs Identification

Talent Review Succession Planning

Career Management The Generic Matching Process

1.

Both the employee and organization gain more insight into:

The characteristic of external career The nature of work and organizational expectations The characteristics of the internal career

2. 3.

Organization must develop mechanisms for identifying mismatch. Organization must develop mechanisms for dealing with mismatch
Encourage change in the external career Encourage change in the internal career Seek new integrations, compromises and mutual change

Career Planning and Development

Career Paths Typology
Exit Senior Management

Career Path

LEVEL

TIME

Middle Management

Entry EXPERIENCE Functional Specialization Broad/General Management

Junior Management

Operations

Maintenance

Marketing

Logistics

Finance

HR

R&D

Career Anchor
Self Concept Insight from experience Maturity Real Occupational experience Talents, Motives, Values Talents, Motives, Values are interwined As people mature seek congruence Early years in organization crucial
Painful, full of surprises

With experience people make choices

Dominant interests emerge Basis for rational career choices

Career Anchor
Technical/Functional Competence
Talent/motivation for certain kind of work Turns them on Expertise Strong sense of identity

Life long specialization

Important challenging work Autonomy in execution May conflict with general management

Career Anchor
General Management Competence
Multi functional perspective
Specialization as trap Key motives leadership. Contribute to business

Need a mixture of talents

Analytical competence Interpersonal & intergroup competence

Emotional competence

Prefer integrative work, challenging opportunities

Career Anchor
Autonomy/Independence
Cant be bound by rules/procedures Overriding need:
Own thing Own speed Own standards

Organizational life
Intrusive Restrictive

Prefer independent careers Gravitate towards autonomous professions

Career Anchor
Security/Stability
Organize their career around
Safety Security

Seek predictability Prefer organization provide job tenure Satisfaction from identifying with organization Welcome golden handcuffs Exchange tenure with organizational direction/control Seek stable , predictable work Concerned about job context than content

Career Anchor
Entrepreneurial Creativity
Overriding Need
Create new business Create new products

Not necessarily creative people Urge to create new businesses

Money a measure of success

Evidence through education/early career stages Must constantly create, otherwise lose interest May be difficult to hold back

Career Anchor
Service/Dedication to Cause
Values embody their work Oriented to values than talent Career decisions based
On need to improve world Serving humanity

Prefer work that

Permits them to influence organizations Policies

Career Anchor
Pure Challenge
Perception can conquer anything Success as
Overcoming impossible obstacles Solving unsolvable problems Winning over tough opponents

Seek tougher challenges For some, challenge in interpersonal/competitive terms Challenge supremely important
Pay system/promotion subordinate

Can become irritable May gravitate towards GM anchor Managing them complex

Career Anchor
Lifestyle
Somewhat of a contradiction
Careers less important

But growing number of people

Seek meaningful careers

Career integrate with lifestyle

This anchor
Seeks flexibility Will work if options available Organizational attitude reflecting respect for non working roles/renegotiate psychological contract

Many implications for external career path

Are There Other Career Anchors?

Research indicates most people fit 8 Anchors.

However, scope for further investigations

Can a Person Have More than One Anchor

Some career situations allow for fulfillment of multiple talents. However, people must eventually choose.

Do Anchors Change?

Weight of evidence is on the side of stability.

Managing Ones Career Equation to Success Career Success = IQ + EQ + NQ IQ Pretty much a fixed capability EQ Some control over EQ NQ Greatest potential for exponential change
Quantity Relationships Diversity Quality

Thank You