SOCIAL SYSTEM SOCIAL SYSTEM & & ORGANIZATIONAL ORGANIZATIONAL CULTURECULTURE

UNDERSTANDING A SOCIAL UNDERSTANDING A SOCIAL SYSTEMSYSTEM

•A social system is a complex set of human relationships interacting in many ways.

Within a single organization, the social system includes all the people in it and their relationships to one another and to the outside world. Two points stand out in the complex interactions among people in a social system.

•First, the behavior of any one member can have an impact, directly or indirectly, on the behavior of any other.

•A second important point revolves around a system’s boundaries.

SOCIAL EQUILIBRIUMSOCIAL EQUILIBRIUM•A system is said to be in social equilibrium when there is a dynamic working balance among its interdependent parts.

•Equilibrium is a dynamic concept not a static one.

When minor changes occur in a social system, they are soon absorbed by adjustments within the system and equilibrium is regained. On the other hand, a single significant change (a shock, such as the resignation of a key executive) or a series of smaller but rapid changes may throw an organization out of balance, seriously reducing its forward progress until it can reach a new equilibrium. In a sense, when it is in disequilibrium, its parts are working against one another instead of in harmony.

Here is an example:American automobile manufacturers have

faced a significant challenge in responding to the design, quality, and cost advantages of international automakers such as Toyota, Nissan, Honda and Mazda. In particular the U.S companies sometimes found that it took them much longer to bring a new car to market (total time from its conception to early production)

Among many reasons offered is the internal struggle among seemingly competing units of an auto firm, such as product, design, factory engineering, and sales and marketing .An unfortunate and unproductive, disequilibrium sometimes exists. To combat this problem, Ford Motor Company creates cross-functional teams of line managers charged with the task of speeding product development. These teams are housed in the same work area, which makes communication much easier. They also share a common goal –reduction of product development costs by 20 percent. In this way, Ford maintains a more productive equilibrium within its system and keeps the functional subgroups working together.

FUNCTIONAL AND FUNCTIONAL AND DSYFUNCTIONAL EFFECTSDSYFUNCTIONAL EFFECTS

A change such as the introduction of cross-functional design teams has a functional effect when it is favorable for the system. When an action or a change creates unfavorable effects, such as a decline in productivity, for the system it has a dysfunctional effect.

Psychological and Psychological and Economic ContractsEconomic Contracts

When employees join an organization, they make unwritten When employees join an organization, they make unwritten psychological contract with it, although often they are not psychological contract with it, although often they are not conscious of doing so. The psychological contact defines the conscious of doing so. The psychological contact defines the conditions of each employee’s psychological involvement –conditions of each employee’s psychological involvement –both contributions and expectations- with the social system.both contributions and expectations- with the social system.

Employees agree to give a certain amount of loyality , creativity Employees agree to give a certain amount of loyality , creativity and extra effort but in return they expect more than economic and extra effort but in return they expect more than economic rewards from the system.rewards from the system.

If the organization honors only the economic contract and not If the organization honors only the economic contract and not the psychological contract, employees tend to have lower the psychological contract, employees tend to have lower satisfaction becouse not all their expectations are being met.satisfaction becouse not all their expectations are being met.

The Result of the The Result of the Psychological Contract Psychological Contract & & The Economic ContractThe Economic Contract

Employee:-Expected gains-Intended contributions

Employer:-Expected gains-Rewards ofered

Psychological Contract

Economic Contract

Employee:If expectations are met

-High job satisfaction

-High performance-Continuance with organization

If expectations are not met-Low job satisfaction-Low performance-Possible separation

Employer:If expectations are met-Employee retention-Possible promotion

If expectations are not met:-Corrective action; discipline-Possible separation

Social CultureSocial Culture

Whenever people act in accordance with the expectations of others their behavior is social.

Cultural DiversityCultural DiversityEmployees in almost any organization are divided into Employees in almost any organization are divided into subgroups of various kinds. Formation of groups is subgroups of various kinds. Formation of groups is determined bye two broad sets of conditions.determined bye two broad sets of conditions.

•job-related (organizationally created) differences and job-related (organizationally created) differences and similarities, such as type of work, rank in organization and similarities, such as type of work, rank in organization and physical proximity to one another , sometimes causes people physical proximity to one another , sometimes causes people to align themselves into groups.to align themselves into groups.

•non-job-related conditions (those related to culture, ethnicity, non-job-related conditions (those related to culture, ethnicity, socioeconomics, sex and race) arise primarily from an socioeconomics, sex and race) arise primarily from an individual’s personal background; these conditions are highly individual’s personal background; these conditions are highly important for legal, moral and economic reasons.important for legal, moral and economic reasons.

Potential Social Benefits of Potential Social Benefits of EEO (Equal Employment EEO (Equal Employment Opportunity Opportunity <<EEOEEO>> ) )

More useful contrbiutors to society (fewer on welfare)

EEO

Better self-image for citizens

Higher national output

Equal citizen access to job

Reinforcement of social objectives (the American dream)

Higher family earnings

Better use of labor force

Social Culture ValuesSocial Culture ValuesThe work Ethic for many years the culture of much of the western The work Ethic for many years the culture of much of the western world has emphasized work as a desirable and fulfilling activity. world has emphasized work as a desirable and fulfilling activity. This attitude is also strong in parts of Asia, such as Japan. The This attitude is also strong in parts of Asia, such as Japan. The result of this cultural emphasis is a work ethnic for many people result of this cultural emphasis is a work ethnic for many people meaning that they view work as very important and as a desirable meaning that they view work as very important and as a desirable goal in life. They tend to like work and derive satisfaction from it. goal in life. They tend to like work and derive satisfaction from it. They usually have a stronger commitment to the organization and They usually have a stronger commitment to the organization and to its goals than do other employees. These characteristics of the to its goals than do other employees. These characteristics of the work ethnic make it highly appealing to employers.work ethnic make it highly appealing to employers.

Social ResponsibilitySocial Responsibility

Every action that organizations take involves costs as well as benefits. In recent there has been a strong social drive to improve the cost - benefit relationships to make it possible for society to gain benefits from organizations and for the benefits to be fairly distributed .Social responsibility is the recognition that organizations have significant influence must be properly considered and balanced in all organizational actions.

STATUSSTATUS

Status is the social rank of a person in a group. It is a mark of the amount of recognition, honor, and acceptance given to a person. Within groups, differences in status apparently have been recognized ever since civilization began. Wherever people gather into groups, status distinctions are likely to arise, because they enable people to affirm the different characteristics and abilities of group members.

Status RelationshipsStatus RelationshipsHigh status people within a group usually have more power and influence than those with low status. They also receive more privileges from their group and tend to participate more in group activities. They interact more with their peers than with those of lower rank.

Basically, high status gives people opportunity to play a more important role in an organization. As a result, lower status members tend to feel isolated from the mainstream and to show more stress symptoms than higher-ranked members.

Status SymbolsStatus Symbols

The status system reaches its ultimate end with status symbols. These are the visible, external things that attach to a person or workplace and serve as evidence of social rank. They exist in the office, shop, warehouse, refinery or wherever work groups congregate. They are most in evidence among different levels of managers, because each successive level usually has the authority to provide itself with surroundings just a little different from those of people lower in the structure.

Typical Symbols of StatusTypical Symbols of Status•Furniture such as mahogany desk or a conference table.•Interior decorations, such as carpeting draperies and artwork•Location of workplace, such as a corner office or an office having a window with a view•Facilities at workplace, such as a computer terminal or fax machine•Quality and newness of equipment used, such as a new vehicle or tools •Type of clothes normally worn, such as a suit•Privileges given, such as a club membership or company automobile•Job title or organizational level, such as vice president•Employees assigned such as a private secretary•Degree of financial discretion, such as authorizing up to $5000 expenditures•Organizational membership, such as a position on the executive committee

Sources of StatusSources of StatusThe sources of status are numerous, but in a typical work situation several sources are easily identified. A person’s abilities, job skills and type of work also are major sources of status.

Other sources of status are amount of pay, seniority, age and stock options. Pay gives economic recognition and an opportunity to have more of the amenities of life, such as travel.

Seniority and age often earn for their holder certain privileges, such as first choice of vacation dates, or the respect of coworkers for their longevity at work.

Significance of StatusSignificance of Status•Status is significant to organizational behavior in several ways.Status is significant to organizational behavior in several ways.

•When employees are consumed by the desire for status, it often is When employees are consumed by the desire for status, it often is the source of employee problems and conflicts that management the source of employee problems and conflicts that management needs to solve.needs to solve.

ORGANIZATIONAL ORGANIZATIONAL CULTURECULTURE

Social (natural) culture creates the wide ranging context in which organizations operate. It provides the complex social system of laws values and customs in which organizational behavior occurs.

Organizational Culture is the set of assumptions, beliefs, values and norms that are shared by an organization’s members.

This culture may be have been consciously created by its key members or it may have simply evolved across time.

Characteristics of Characteristics of CulturesCultures

Organizations like fingerprints and snowflakes are unique. Each has its own history patterns of communication systems and procedures mission statements and visions stories and myths which in their totality constitute its distinctive culture. Cultures are relatively stable in nature, usually changing only slowly over time. Expectations to this condition may occur when a major crisis threatens a firm or when two organizations merge with each other (requiring a careful blending of the two so as to avoid culture clash)

Measuring Organizational Measuring Organizational CultureCultureSystematic measurement and comparison of cultures is difficult at best. Most early attempts by researchers relied on examination of stories, symbols, rituals and ceremonies to obtain clues and construct a composite portrait.

•Distinctive•Stable•Implicit•No one type is best•Integrated•Accepted•A reflection of top management•Subcultures•Of varying strength

Communicating and Changing Culture

If organizations are consciously create and manage their cultures, If organizations are consciously create and manage their cultures, they must be able to communicate them to employees, especially the they must be able to communicate them to employees, especially the newly hired ones. People are generally more willing to adapt when newly hired ones. People are generally more willing to adapt when they wthey wanant to please others, gain approval and learn about their new t to please others, gain approval and learn about their new work environment.work environment.