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Organizational Culture & Diversity Management What is Culture • Culture is defined as the set of values, guiding beliefs, understandings and ways of thinking that is shared by members of an organization The Function of Culture • Culture is the social glue that helps hold an organization together by providing appropriate standards for what employees should say or do. • It has a boundary defining role. • It conveys a sense of identity for organization members. • It facilitates the generation of commitment to something larger than ones own self interests. • It enhances social system stability. • It serves as a “sense –making” and control mechanism that guides and shapes the attitudes and behaviour of employees. Relationship Between Structure & Culture Organizational Culture • Behaviour • Central values • Shared normative beliefs • Assumptions Organizational Structure Questions for Reflection 1. Does behaviour reflect underlying values and beliefs? 2. Can organizational culture be managed? 3. What is the relationship between culture, HR outcomes, and competitive advantage? 4. How does diversity among employees affect work place culture? Culture - Strong vs. Weak • In strong cultures, key values are deeply held and widely shared • Strong cultures have greater influence on employees than do weak cultures • Employees are more committed to organizations with strong cultures • Strong cultures are associated with high organizational performance Identifying Culture • Rites and Ceremonies – sequences of activities • Stories – a narrative of significant vents or people • Symbols – essential in creating an organizations personality • Language – organizations develop unique jargon Major Factors Affecting Cultural Change in Organizations Large Business Moderate difficulty in implementing cultural change Great difficulty in implementing cultural change Relative ease in implementing cultural change Moderate difficulty in implementing cultural change Size and Complexity Small Business Low Cultural Homogeneity High Types of Cultures Constructive Culture • Members are encouraged to interact with others and to approach tasks in ways that help them meet their satisfaction needs; • Are characterised by achievement, self actualization, humanistic encouraging, and affiliative norms. Types of Cultures Passive/Defensive Cultures • Members believe they must interact with people in ways which will not threaten their own security; • Characterised by approval; • Conventional, dependant, and avoidance are norms. Types of Cultures Aggressive/Defensive Culture • Members are expected to approach tasks in forceful ways to protect their own status and security; • Characterised by oppositional, power, competitive and perfectionist norms. Discussion • “ The culture that may be managed is the manifestly observable behaviours not unobservable deep-seated attitudes of individuals” Ogbonna (1992) Business Strategy and Culture Innovation • Develop products or services that differ from competition Quality • Improve product service or quality Enhancement Cost Reduction Speed • Be the lowest cost producer of goods or provider of services • Be the fastest innovator, producer, distributor, responder. Dimensions of Organizational Culture • Refer to hand out • In groups discuss how the dimensions of organizational culture relate to the business strategy Normative Systems Model for Organizational Change • • • • Step 1 Step 2 Step 3 Step 4 • Refer to hand out Hand Out • Article Summary: Unexpected Consequences of Cultural Interventions What is ....Diversity Management? • a strategy that is intended to foster and maintain a positive workplace environment. • Usually initiated by Human Resources professionals and managed by department heads and supervisors. • an effective diversity management program will promote recognition and respect for the individual differences found among a group of employees. • The idea of this management style is to encourage employees to be comfortable with diversity in the workplace and develop an appreciation for differences in race, gender, background, sexual orientation or any other factors that may not be shared by everyone working in the same area of the company. Diversity Management • The underlying principle of diversity management has to do with acceptance. • While individuals retain their own sense of values and ethics, diversity management encourages people to recognize that not everyone is alike. • Rather than being intimidated or prejudiced by those differences, employees are encouraged to accept the fact that there are diverse interests, diverse values, and diverse physical and emotional characteristics present within the office environment. • Further, the diversity present in the office does not have to hamper productivity or create conflict. • Instead, the diversity may function as helpful attributes that promote the attainment of the goals and objectives of the department. Diversity Management Audit Questions for Discussion 1. Does behaviour reflect underlying values and beliefs? 2. Can organizational culture be managed? 3. What is the relationship between culture, HR outcomes, and competitive advantage? 4. How does diversity among employees affect work place culture ? What is the link? Today we discussed.... • • • • • • • • • • Culture defined Function of culture Relationship between culture & structure Strong vs weak culture Cultural identification Factors affecting culture in organizational change Dimensions of culture Systems model Diversity management audit Linkages between diversity management & culture