Organizational Culture

1
Organizational Culture Change
2
Organizational Culture

• The shared values, beliefs, and traditions that
  exist among individuals in organizations
• A system of shared values and beliefs that
  influence worker behavior

3
Dimensions of Culture

• Values - the philosophy of the organization
• Organizational Stories
• Degree of Stability
• Resource Allocation where does organization
  spend its money?
• Rights Rituals

4
Creating Sustaining Culture

• The Founders
• Selection
• Top Management
• Socialization
• Culture of society
• Industry
• Firms code of conduct

5
Consequences of Organizational Culture

• Productivity, Quality, Morale
• Competitive Advantage
• Compatibility of Mergers Acquisitions
• Direction of Leadership Activity

• Barrier to Change
• Barrier to Diversity

6
Forces for Organizational Change

• Nature of the Work Force
• Technology
• Economic Shocks
• Social Trends
• World Politics

7
Empowerment

• To give authority to, or authorize to participate
  in and make decisions
• Increases motivation and satisfaction
• Not always best for organization
• Not always desired by individual

8
Levels of Input

• Absolute
• Shared/Participative/Team
• Advisory
• Ownership of Own Product
• Following

9
Downsizing

• Often a reactive response to organizational
  decline, but sometimes done proactively in
  response to future competitive threats
• One-third of all households have experienced a
  job loss by a family member
• Research indicates that downsizing does not
  appear to lead to increases or decreases in
  financial performance (Cascio, 1994)

10
Downsizing

• Possible outcomes
• Profit increase/decrease
• Productivity increase/decrease
• Negative effects on survivors - decreases in
  loyalty, morale, satisfaction
• Negative effects on customers, potential employees

11
Variations in how organizations downsize

• Communication one-on-one, HR, email, memo,
  phone call, group meeting
• Notice period WARN Act requires 60 days
• Reason given profit decline, restructuring,
  economy
• Steps taken prior to layoff attrition,
  employment freeze, elimination of contractors,
  encouraging use of vacation

12
Variations in how organizations downsize (cont.)

• Criteria used to deselect tenure, job
  performance, job function
• Employee input
• Assistance offered severance pay, extended
  benefits, references, priority consideration for
  other job, outplacement assistance