Level 1

Prepared by: CDV First Prepared on: January 2013Copyright 2013 Asia Pacific Institute of Information Technology

Professional & Enterprise DevelopmentCT024-3-1

Organization StructureIntroduction to Organizations

Organization Socialization, Culture and Mentoring

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Structure of the Lesson

Defining and understanding organization and its culture

The role of socialization and mentoring in it.

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Learning Outcomes

• To define organizational culture & understand its three layers

• Discuss the four types of organizational culture associated with the competing values framework

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Key Terms You Must be Able to Use

If you have mastered this topic, you should be able to use the following terms correctly in your assignments and exams:

Organizational cultureClan cultureAdhocracy cultureMarket cultureHierarchy culture

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Organizational Culture: Definition & Context

Organization Culture •Set of shared, taken-for-granted implicit assumptions that a group holds and that determines how it perceives, thinks about, and reacts to its various environments.

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Organizational Culture

• When is an organization’s culture most apparent?

• They are through shared (objects), shared sayings (talk), shared doings (behavior) and shared feelings (emotions)

• One can collect cultural info within an organization by asking, observing, reading & feeling

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Organizational Culture

• Culture - a complex issue that essentially includes all of a group’s shared values, attitudes, beliefs, assumptions, artifacts, and behaviors.

• Decades of empirical research has established abundant links between organizational culture and organizational performance.

• Organizations recognize that it can be used for competitive advantage

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Con’t

• Example: By leveraging their culture of innovation toward product and internal processes, Apple has been able to survive — despite incredible competition — as well as venture into new and profitable markets.

• To use culture strategically, a company first needs to understand its culture.

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Characteristics of Organization Culture

1. Passed on to new employee through the process of socialization

2. It influences our behavior at work3. Operates at different levels. What is the culture at APU?Eg Level 1 instead of Year 1, Freshman or First Year

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Dynamics of Organizational Culture – Layers of Organizational Culture

1. Observable artifact •Artifacts consist of the physical manifestation of an organization’s culture.•This includes acronyms, dress code, awards, myths and stories told about the organization, published lists of values, observable rituals & ceremonies, etc. •This level includes visible behaviors exhibited by people and groups

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Dynamics of Organizational Culture – Layers of Organizational Culture

2. Espoused Values•Value : Enduring belief in a mode of conduct or end state•Values possess five key components. 1.Concepts or beliefs2.Pertain to desirable end-states or behaviors3.Transcend situations4.Guide selection or evaluation of behavior & events5.Ordered by relative importance

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Espoused Values – Con’t

• It represents the explicitly stated values and norms that are preferred by an organization.

• Established by the founder of a small/new company and by the top management team in a larger organization.

• It represents value aspirations that are explicitly communicated to employees, managers hope that those values will directly influence employee behaviors.

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Espoused Values

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Dynamics of Organizational Culture – Layers of Organizational Culture

3. Enacted Values•Represents the values and norms that actually are exhibited or converted into employee behavior.•Represents the values that employees ascribe to an organization based on their observations of what occurs on a daily basis.

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Espoused & Enacted Values

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Dynamics of Organizational Culture – Layers of Organizational Culture - Examples

1. An organization that hangs a Trust sign in its hallway as its driving principle BUT searches its staff’ belongings when they report for work?

2. A multinational that stresses work-life balance but schedules meetings over the weekends?

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Dynamics of Organizational Culture – Layers of Organizational Culture

4. Basic Assumptions•Are unobservable and represent the core of organizational culture e.g. integrity, courtesy•Organizational values that have been taken for granted over time that they become assumptions that guide organizational behavior. •They are highly resistant to change.

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Dynamics of Organizational Culture – Layers of Organizational Culture

• When basic assumptions are widely held among employees, people will find behavior based on an inconsistent value inconceivable.

• Example: Southwest Airlines operates according to basic assumptions that value employees’ welfare and high quality service

• Hence, employees at Southwest Airlines would be shocked to see management act in ways that did not value employee & customer needs eg rude and impolite towards customers, staff

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Four Functions of Organizational Culture

1. Gives members an organizational identity• Identity given to employees not only give

them a sense of uniqueness but instills values and how they react to overcome a particular challenge.

• Example: Southwest Airlines is known as a fun place to work, valuing staff satisfaction and customer loyalty over corporate profits

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Four Functions of Organizational Culture

2. Facilitate collective commitment• The unique identity formed, hence facilitates a

collective commitment by all members of the team (organization); as everyone practices the values and norms of the organization.

• Southwest Airlines Mission: Dedication to the highest quality of Customer Service delivered with warmth, friendliness

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Four Functions of Organizational Culture

3. Promote social system stability• Reflects the extent the work environment is

perceived as positive and reinforcing, and the extent to which conflict and change are effectively managed.

• Southwest has performance-based and service-based awards to reinforce and award employees

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Four Functions of Organizational Culture

4. Shapes behavior by helping members make sense of their surroundings.

• This function helps employees understand why the organization does what it does and how it intends to accomplish its long-term goals.

• Southwest’s vision to be the best short-haul, low-fare, high-frequency carrier in the US

• Staff understand why they need to achieve exceptional performance e.g. turning a plane in 20 mins to keep costs down

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Types of Organizational Culture

1. Clan Culture•Internal focus and values flexibility rather than stability and control•“Employee-focused” & strive to instill cohesion through consensus and job satisfaction through employee involvement•Devote resources to hiring and developing employees & views customers as partners•E.g. Southwest Airlines, Nucor, AirASia

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Types of Organizational Culture

2. Adhocracy Culture•External focus & values flexibility •Fosters creation of innovative products & services by being adaptable, creative & fast to respond to changes in the market place. •Does not rely on centralised power & authority •Encourages risk taking, thinks outside the box & experimentation (R & D)•Suited for new start-upsE.g. Apple, Intel, Microsoft

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Types of Organizational Culture

3. Market Culture•Strong external focus and values stability & control •Driven by competition & goal oriented•Customer and profits are priority due to focus on external environment•Employees are expected to react fast, work hard and deliver work on time eg Finance, Banking & IT Industry

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Types of Organizational Culture

4. Hierarchy Culture•Driving force within a hierarchical culture. •Internal focus & values stability and control over flexibility•Development of reliable internal process, extensive measurement & implementation of a variety of control mechanism. •Likely to use Total Quality Management (TQM)•Focused on Doing Things Right e.g. Exelon and Dell

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Q & A

Question and Answer Session

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Topic and Structure of next session

Next Session

Organizational Socialization and Mentoring