Management Chapter 5
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What is Organisational Culture?
- The internal environment of an organisation includes its culture.
- Organisational culture is the set of values, norms, standards for behaviour and shared expectations that influence the ways individual people, groups and teams interact with each other and cooperate to achieve organisational goals
- �When organisational members share an intense commitment to cultural values, beliefs and routines, a strong organisational culture exists.
- �When members are not committed to a shared set of values, beliefs and routines, organisational culture is weak.
Is it desirable to have a strong organisational culture
Generally yes because it is believed that employees will be more loyal to the company.
Organizational culture characteristics
- Organizational culture provides umbrella of values and norms but subcultures are likely to exist
- Strong organizational cultures are generally linked to higher organizational effectiveness
- Strength--degree to which core values are shared
- Often plan heavy emphasis on socialization of new members
- Are only successful if also adaptive
What are the Elements of organisational culture including the artifacts of organisational culture and the OrganizationalCulture?
- Artifacts: Above the surface
- Physical Structures
- Rituals and Ceremonies
- Stories and Legends
- Organizational Culture: below the surface
What are four factors creating a strong organisational culture
- 1. Values of the founders
- 2. Socialism
- 3. Ceremonies and rites
- 4. Stories and language
What are ceremonies and rites and language Ceremonies:
- Rites of passage: determine how individuals enter, advance within or leave the organisation
- Rites of integration: build and reinforce common bonds among organisational members
- Rites of enhancement: let organisations publicly recognise and reward employees contributions and thus strengthen their commitment to organisational values
- Especially war stories about how to get ahead, what is considered funny, and so on.
- Consider attitudes to time, the way people dress, even furniture arrangements!
Management influence on culture
- Founders personal values and beliefs have a major influence
- ASA framework (Attraction-Selection-Attrition)
- Attraction---Founders are attracted to managers with a similar personality/orientation.
- Selection--- Founders will select managers with a similar personality/orientation.
- Attrition---New managers learn what values/beliefs are appropriate to progress in the organisation. Those who fit or are similar are more likely to stay in organisation, those who do not will leave
- Partly explains effect of managers personality and other personal characteristics on organisational culture
- This may or may not benefit the organisation in the long term
- Organisational effectiveness may be impaired from a lack of diversity/perspectives and become resistant to change
Managing organisational change
- Driven by factors in internal and external environments of organisations
- Inability to change or change quickly enough is likely to result in business death
- Important skill for managers to develop
- Often difficult process due to resistance and conflict
What are external forces for change?
- 1. Globalization
- 2. Workforce diversity
- 3. Changing technology
- 4. Ethical Behaviour
What are the internal forces for change?
- 1. Declining effectiveness
- 2. Company Crisis
- 3. Changing work climate
- 4. Changing employee expectations
A systems view of organisations shows why managing change is rarely easy - what are the four steps in the cycle of the relationship between organisational conflict, politics and change.
- Signal to managers that there is a need for -- organisational change -- can alter the goals, interests and priorites of different individuals and groups and lead to -- organisational conflict and politics (which feeds back to signalling the manager that there is a need for) What are the 4 steps in the organisational change process?
- 1. Assess the need for change
- - Recognise that there is a problem
- - identify the source of the problem
- 2. Decide on the change to make
- - Decide what there organisation's ideal future state would be
- - Identify obstacles to change
- 3. Implement the change
- - Decide Whether change will occur from the top down
- - Introduce and manage change
- 4. Evaluate the change
- - Compare pre-change performace with post-change performance
- - Use benchmarking
Resistance to change includes
- 1. Fear of the unknown
- 2. Fear of loss
- 3. fear of failure
- 4. Disruption of interpersonal relationships
- 5. Personality conflicts.
- 6. Politics
- 7. Cultural assumptions and values
Force field analysis of decision to engage in exercise
- forces for change : weight gain, minimally passing treadmill test, feel lethargic; have no energy, family history of cardiovascular disease, new physically demanding job.
- Forces for status quo: lack of time, no exercise facility at work, spouse/partner hates to exercise, no interest in physical activity or sports, did not pass physical education class in high school.
- It is important to find an equilibrium between them
which change is quicker top down or bottom up change?
Top down change is usually quicker
What is involved in the Dunphy and Stace model of managing change?
- 1. How much TIME do we have?
- 2. What is the SCALE of change?
- 3. What STYLE of management/leadership is required?
- 4. How much commitment do we need?
- 5. How much power/authority do I have?
What are the four different styles of organisational change strategies?
- Type 1 - participative evolution
- Type 2 - Charismatic transformation
- Type 3 - Forced Evolution
- Type 4 - Dictatorial transformation
What is diversity?
It is a host of individual differences that make us similar and different from each other
Why is Diversity not an issue in management?
- 1. Countries are becoming more diverse (immigration)
- 2. It has implications for workforce and marketplace (immigrants and working globally)
What�is the anti discrimination law related to race, color, descent and nationality
Racial Discrimination Act (1975)
what is the anti discrimination law related to Sex, marital status, pregnancy, sexual harassment, dismissal due to family
Sex Discrimination Act (1984)
What is the anti-discrimination law related to Disabilities (physical, emotional), physical disfigurement, and HIV/AIDS
Disability Discrimination (1992)
NSW (Anti-Discrimination Act, 1977
Race, colour, ethnicity, religion, sex, marital status, actual or perceived disability, age, actual or perceived homosexuality or transgender status, actual or perceived care giver responsibility
Direct violation of one of the anti discrimination laws that results in unfair treatment
Effect of requirement unfairly violates the rights of group of people and if requirement is not considerable reasonable or relevant for the job- For example, height requirement for police or fire fighters
Emphasizes awareness and understanding (attitudes)
Creates an environment (culture) that enables all people to perform up to their maximum potential (focus on behavior)
Steps to manage diversity effectively
- Secure top management commitment
- Strive to increase the accuracy of perceptions
- Increase diversity awareness
- Increase diversity skills
- Encourage flexibility
- Pay attention to how organisational members are evaluated
- Consider the numbers
- Empower employees to challenge discriminatory behaviours, actions and remarks
- Reward employees for effectively managing diversity
- Provide training utilising a multi- pronged, ongoing approach
- Encourage mentoring of diverse employees
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