Archive for November, 2008
November 29, 2008 at 8:27 am
· Filed under Administration, Businesss, Determinants of Organizational Culture, Management, Organization, Organizational Climate ·Tagged Organization, Management, Organizational Climate, Determinants of Organizational Culture, Administration, Organizational Policy, Managerial Values, Organizational Structure, Businesss
We continue our talk on Organization Structure which is the part of Organizational Policies. How does one know whether an organization should be categorized as System 1 or 2 or 3 or 4? It depends on the way following processes are perceived and rated in an organization:
· Leadership process
· Motivation process
· Communication process
· Decision-making process
· Goal-setting process
· Control process
Employees of an organization rate these processes on a rating scale, asking questions like the following:
· Hoe much confidence is shown in subordinates?
· Where is responsibility felt for achieving organization goals?
· How well superiors know problems faced by subordinates?
· How much covert resistance to goals is present?
· At what levels are decisions formally made?
· Is there an informal organization resisting the formal one?
Based on the answers to these questions, an organization can be classified as system 1 or 2 or 3 or 4. A bureaucratic structure is likely to be rated as System 2 or System 3. A System 4 organization will have a distinct OC where the main theme would be strong involvement and self-control of all organization members at all levels in all basic organizational processes.
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November 28, 2008 at 6:32 am
· Filed under Administration, Businesss, Consultative Organization, Determinants of Organizational Culture, Management, Managerial Values, Organization, Organizational Climate, Organizational Policy, Organizational Structure ·Tagged Management, Determinants of Organizational Culture, Organizational Policy, Organizational, Managerial Values, Organizational Structure, Consultative Organization
Organizational Policies
Specific organizational policies can influence a specific dimension of OC to quite an extent. For example, if the company policy states that layoffs will be used only as a last resort to cope with business downturn, then it would, in general, foster an internal environment that is supportive and humanistic. Similarly if you are working in a company where it is agreed that the first beneficiaries of increased profit, then the OC will be characterized by High Reward Orientation and probably by High Progressiveness and Development.
Managerial Values
The values held by executives have a strong influence on OC because values lead to actions and shape decisions. Values add to perceptions of the organization as impersonal, paternalistic, formal, informal, hostile or friendly. You will learn more about managerial values under the topic: Managerial Ethos
Organization Structure
The design or structure of an organization affects the perception of its internal environment. For example, a bureaucratic structure has an OC much different from a System 4 organization. What is a System 4 organization? According to Rensis Likert, all organizations can be classified into four major groups, depending upon the way basic organizational processes are conducted. These major groupings are as follows:
System 1 – Exploitative Authoritative
System 2 – Benevolent Authoritative
System 3 – Consultative
System 4 – Participative
We will discuss descriptively on Organizational Structure in our next post.
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November 25, 2008 at 5:13 am
· Filed under Businesss ·Tagged Determinants of Organizational Culture, Economic Conditions, Economic Cycle, Leadership Style, Management, Motivation, Organization
Today, we will discuss on Economic Conditions and Leadership Style
Economic Conditions
Several dimensions of OC are influenced by an organization’s position on the economic cycle. The economic condition of any organization influences whether its budget should be “tight” or “loose”. In times of prosperity- when budgets are more loose than tight – the organizations tends to be more adventuresome. On the other hand, tight budget would lead to an air of caution and conservatism within an organization. Few managers are willing to suggest new programmes (probably deserving merit) when the order from above is to exercise tight control over expenses. So, dimensions of OC like “Risk-taking”, “Control”, Progressiveness and Development” etc. are directly influenced by economic conditions.
Leadership Style
The leadership style prevailing in an organization has a profound influence in determining several dimensions of OC. The influence is so pervasive that you may often wonder whether OC is product of the philosophy and practices of prominent persons in an organization.
Consider, for example, the results of an experimental study where three organizations were “created” by simulation. All these three Organization-A, B and C-were identical in terms of nature of business, size of the organizations, characteristics of employee, and initial economic condition. The major difference among these organizations was the “leadership style”. Organization A was characterized by authoritarian style with high power motivation. Organization B was characterized by democratic style with affiliation motivation. Organization C was characterized by goal directed style with achievement motivation. The meaning of these different leadership styles and their effects on different dimensions of OC can be influence more dimensions of OC than another style.
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November 21, 2008 at 11:16 am
· Filed under Administration, Businesss, Determinants of Organizational Culture, Factor of Organizational Culture, Finance, Management, Organization, Organizational Climate ·Tagged Administration, Determinants of Organizational Culture, Factor of Organizational Culture, Management
At the very onset of this topic, it is useful to distinguish determinants and dimensions of OC. Determinants are the causes, while dimensions are the components of OC. You may say, determinants are those which influence whereas dimensions are those which are influenced.
Although OC refers to the internal environment of an organization, the nature of OC is determined by a variety of internal and external factors. One of the basis premises of organizational behavior is that outside environmental forces influence events within organizations. After acknowledging the dynamics of internal as well as external factors in this section, we will consider in greater detail the following seven internal factors. You will find these factors as determinants of OC in the following order:
1. Economic Condition
2. Leadership Style
3. Organizational Policies
4. Managerial Values
5. Organizational Structure
6. Characteristics of Members
7. Organizational Size
We will discuss on each factor in our next post.
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November 14, 2008 at 12:47 pm
· Filed under Businesss, Dimensions of Organizational Culture, Finance, Management, Organization, Organizational Climate ·Tagged Dimensions of Organizational Culture, Management, Organization
Today, we are discussing in briefly about common dimensions here.
Individual Autonomy: This refers to the individual’s freedom to exercise his or her responsibility. In other words, individual autonomy is the degree to which employees are free to manage themselves; to have considerable decision making power; and not to be continually accountable to higher management.
Position Structure: This refers to the extent of direct supervision, formalizations and centralization in an organization. In other words, position structure is the degree to which objectives of the job and methods for accomplishing it are established and communicated to the individual by supervisors.
Reward Orientation: This refers to the degree to which an organization rewards individuals for hard work or achievement. An organization which orients people to perform better and rewards them for doing so, will have an OC characterized by high reward orientation.
Consideration, Warmth and Support: This refers to the extent of stimulation and support received by an individual from other organization members. In other words, if there is a sense of team spirit among the members of an organization, the OC is likely to be perceived as considerate, warm and supportive.
Conflict: This refers to the extent to conflict present between individuals and the willingness to be honest and open about interpersonal differences.
Progressiveness and Development: This aspect refers to the degree to which organization conditions foster the development of the employees, allow scope for growth and application of new ideas methods.
Risk Taking: The degree to which an individual feels free to try out new ideas and otherwise take risks without fears of reprisal, ridicule or other form of punishments, indicate the risk-taking dimension of OC. This dimension is akin to “cautious” versus “venturesome” quality of an organization.
Control: This dimension refers to the degree to which control over the behavior of organizational members is formalized. In a highly bureaucratic organization, control systems are well defined. In a low- control organization, most of the controls are self-regulated, i.e., individuals monitor their own behavior. You can think of this dimension as “tightness” versus “looseness” of an organization.
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November 13, 2008 at 9:30 am
· Filed under Administration, Businesss, Dimensions of Organizational Culture, Management, Organization, Organizational Climate ·Tagged Dimensions of Organizational Culture, Organization, Organizational Climate, Organizational culture
You have seen that OC refers to a set of some commonly experienced stable characteristics of an organization which constitutes the uniqueness of that organization and differentiates it from other. You might have faced some difficulty in identifying this set of characteristics because you do not yet know the various dimensions or factors of OC in which you should look for these characteristics. In the last two decades, extensive studies have been conducted which have helped us to identify some key factors of OC. Some of these common dimensions are listed below:
- Individual Autonomy
- Position Structure
- Reward Orientation
- Consideration, Warmth and Support
- Conflict
- Progressiveness and Development
- Risk Taking
- Control
These eight dimension account for most of the research findings, but they do not account for all that we intuitively feel to be present in the “Climate” or “Culture” of an organization. For example, you may perceive an organization culture to be “paternalistic”, or a climate to be “impersonal”. Though the fourth OC dimension (considerations, warmth and support) may cover both these different qualities, yet the “richness” that you find in the two qualities is not fully reflected in that dimension. However, the identification of these eight dimension (which are not absolutely independent of each other) do help us mapping measuring OC.
We will discuss descriptively on each dimensions in next post..
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