Understanding Organizational Behavior ppt
- 2. TABLE OF CONTENTS • What is organizational culture • How employees learn culture • Creating and sustaining culture • What do cultures do • Influencing organizational culture • Changes • Approaches to managing organizational change • Summary
- 3. 01 . Definition: Organizational culture refers to the shared values, beliefs, behaviors, and norms that shape how members of an organization interact and work together. It influences everything from decision-making and communication styles to how employees relate to one another and to customers. what is organizational culture
- 4. Organizational Culture A common perception held by the organization's members a system of shared meaning. Seven primary characteristics: 1. Innovation and risk taking 2. Attention to detail 3. Outcome orientation 4. People orientation 5. Team orientation 6. Aggressiveness 7. Stability 02 .
- 5. Types of Organizational Culture (based on the Competing Values Framework): 1. Clan Culture: Friendly, family-like; focuses on mentoring and collaboration. 2. Adhocracy Culture: Innovative and dynamic; encourages creativity and risk- taking. 3. Market Culture: Results-oriented; competitive with a focus on goals and performance. 4. Hierarchy Culture: Structured and controlled; values efficiency, stability, and consistency. 03 .
- 6. Do organization have uniform culture? Culture is descriptive term it may act as a substitute for formulation • Dominant culture: express the core value that are shared by a majority of the organization's members • Sub culture: mini culture within an organization, typically defined by department designations and geographical separation • Core value: the primary or dominant value that are accepted throughout the organizations • Strong culture: A culture in whish the core values are intensely held and widely shared 04 .
- 7. Strong VS weak Culture Strong culture: Shared core values deeply rooted across all levels; leads to consistent behavior. Weak culture: Values are inconsistent or fragmented; often leads to confusion or conflict. Example: Google has a strong culture of innovation, where experimentation is expected. 05 .
- 8. Culture VS Formalization 1. Organizational Culture: The shared values, beliefs, and norms that shape how people behave in an organization. Example: A tech startup that values innovation might encourage employees to take risks and challenge ideas —even without a formal rule saying so. 2. Formalization Definition: The degree to which rules, procedures, and job descriptions are written and enforced in an organization. Example: A manufacturing company with detailed safety protocols and job descriptions to ensure compliance and efficiency. 06 .
- 9. Culture as a liability: Institutionalization: A company can became Institutionalized where it is valued for itself and not for the good and services it provides. • Barrier to change: Occurs when culture's values are not aligned with the values necessary for rapid change • Barrier to diversity: Strong cultures put considerable pressure on employee to confirm which may lead to institutionalized bias. • Barrier to acquisitions and merger: Incompetible culture can destroy an otherwise successful merger. 07 .
- 10. Creating & Sustaining Culture How a culture begins: Created by founders and early leadership through vision and practices. Keeping a culture Alive: • Hiring people who fit the culture • Training Orientation and train employees • Leading by example Leadership behavior as role models Example: Hyundai’s strict culture came from its founder; it slowly changed with new leadership. 08 .
- 11. What Cultures Do & Global Impact 1. Functions of Culture • Sets clear rules and expected behavior • Builds teamwork and shared values • Guides decision-making and daily actions • Improves commitment and stability 2. Culture Creates Climate • Climate = how employees feel at work • Positive culture = higher job satisfaction, motivation, and teamwork Affects customer satisfaction and company performance. 3. Culture as an Asset • Ethical Culture & Climate Guides what’s right and wrong • Sustainable Culture & Climate Support long term values like social responsibility, ethics, and environmental care. 09 .
- 12. Organizational Culture - Asset or Liability? Morgan Stanley Case (Asset): • Follows honest and green values. • Makes smart investments in companies that care about people and the planet. • Builds trust and grows in a positive way. Culture as a liability (A Problem): • Unfair or negative behavior can hurt the company. • Can lead to mistakes, unhappy workers, and bad news. • A company’s culture should be kind, clear, and well- managed. Key Message: A company’s culture can make it better or worse—so it’s important to get it right. 10.
- 13. Influencing Organizational Culture Organizations shape their culture using these 10 tools: 1. Formal statements (vision, mission, values) 2. Physical space design (open or closed spaces) 3. Slogans, acronyms, and sayings 4. Role modeling, training, and coaching 5. Rewards and promotion systems 6. Stories and myths about past events 7. Activities and regular practices 8. Leader reactions during crises 9. Systems and procedures Example: Apple hires people who fit their culture. 10. Goals and performance measures 11 .
- 14. c What is Change? 12 . What is Organizational Change? • Change means making something different • Can be planned or unplanned • Happens in structure, people, or technology • Needed for growth and survival • Comes with challenges
- 15. The Nature of Change • Change is constant and can happen quickly • It comes from both inside (new goals, leadership) and outside (market, economy) • It’s often unpredictable and can bring uncertain results • Organizations must be flexible and ready 13 .
- 16. Resistance and Politics in Change • People resist change for many reasons: o Fear of losing something o Not understanding the change o Feeling stressed or confused • Politics happen when people use power to protect their interests • Informal groups can slow down or block change 14 .
- 17. Kurt Lewin’s 3-Step Change Model Kurt lewin’s theory of change is a foundational framework for understanding organizational change. Three key stages for effectively implementing change: Unfreeze This is the preparation stage. It involves breaking down the existing status quo before building a new way of operating. Change (Transition/Move)The organization introduces the new processes, behaviors, or ways of thinking. Refreeze This phase ensures the change is solidified and becomes the new norm. Managing Organizational Change – Key Approaches 15 .
- 18. Kotter's 8 step change model: John Kotter introduced the kotter’s 8 step change model to improve an organization's ability to change & to increase its chances of success The 8 steps are: 1. Create a sense of urgency: Identify the need for change. 2. Form a powerful coalition: Build a team to lead the change. 3. Create a vision for change: Define a clear direction. 4. Communicate the vision: Share the vision with stakeholders. 5. Remove obstacles: Identify and address barriers. 6. Create short-term wins: Achieve early successes. 7. Build on the change: Consolidate gains and continue progress. 8. Anchor the changes: Make the change a part of the culture. 16 .
- 19. Action Research Action research is a method to identify and solve problems by actively participating in the research process. Simple Example; A school wants to improve student attendance. Steps 1. Identify the problem: Low student attendance. 2. Plan: Develop strategies (e.g., rewards, mentorship). 3. Act: Implement strategies. 4. Observe: Track attendance and feedback. 5. Reflect: Evaluate effectiveness and adjust. 17 .
- 20. Change Paradox: The change paradox is the idea that: Two Contrasting Needs 1. Stability: We need things to stay the same for comfort and routine. 2. Change: We need change to grow, improve, and adapt to new situations. Balancing Act Finding a balance between stability and change can be challenging, but it's necessary for success. 18 .
- 21. Organizational Development (OD) OD is a planned effort to improve an organization's effectiveness and efficiency . Objectives: 1. Improve performance: Enhance productivity and efficiency. 2. Increase adaptability: Respond to changing environments. 3. Enhance employee engagement: Boost morale and motivation. 4. Foster innovation: Encourage creativity and growth. 5. Build leadership: Develop effective leaders. 19.