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Unit V Organisational Culture, Organisational Development And Stress Management For Organisational Theory And Behaviour Mcom Sem 1 Delhi University Notes

Unit V Organisational Culture, Organisational Development And Stress Management For Organisational Theory And Behaviour MCOM Sem 1 Delhi University :  Here our cakart team members provides you Unit V Organisational Culture, Organisational Development And Stress Management For Organisational Theory And Behaviour MCOM Sem 1 Delhi University Complete Notes in pdf format. Download here Unit V Organisational Culture, Organisational Development And Stress Management For Organisational Theory And Behaviour MCOM Sem 1 Delhi University Notes and read well.

After studying this unit, the students should be able to understand the concept of organizational culture, its determinants, organizational development and various intervention techniques of OD. Students shall also learn the basic concepts of stress at work and various other issues related to stress.

Download here Unit V Organisational Culture, Organisational Development And Stress Management For Organisational Theory And Behaviour Mcom Semester 1 Delhi University Notes in pdf format 

Unit Outline

Chapter­1 ORGANIZATIONAL CULTURE

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1.1 Organizational Culture as a concept

1.2 Definitions of Organizational Culture

1.3 Determinants of Organizational Culture

Chapter­2 Organizational Development

2.1 Organizational Development as a concept

2.2 Intervention Techniques

Chapter­3 Stress

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3.1 Stress as a Concept

3.2 Factors to Stress

3.3 Consequences of Stress

3.4 Management of Stress

Unit V Organisational Culture, Organisational Development And Stress Management For Organisational Theory And Behaviour Mcom Sem 1 Delhi University Notes

Unit V Organisational Culture, Organisational Development And Stress Management For Organisational Theory And Behaviour MCOM Sem 1 Delhi University :

ORGANIZATION CULTURE AS A CONCEPT

In a fundamental sense, a culture exists when people come to share a common frame of reference for interpreting and reacting towards one another and towards the world in which they live. This common frame of reference includes language, values, beliefs and interpretation of experiences. It is reflected in customs, folkways, communication and observable features of the community including rituals, rites, celebrations, legends, myths and heroic saga.

The first step towards understanding the essence of organization’s culture is to appreciate that it is a concept rather than a thing. This distinction is crucial. A thing can be discovered and truth established about it, for example, through empirical research. However, a concept is created in people’s mind – that is, it must be conjured up, defined and refined. There is no final authoritative source or experiment to settle disagreements about what it is or what comprises it. In organizational studies, theorists have come up with different ways of defining organization culture. Smircich (1983) pointed out, that both fundamentalist and interpretivist scholars have written about and produced studies on organization culture, but she argues that these two groups understand organizational culture in entirely different ways. To a functionalist, a culture is something that an organization has – “a set of characteristics that an organization possesses.” The interpretivist sees culture “as the essence of organizational life”. It is described according to the meanings and the ways in which the culture itself is enacted or performed through communication.

People get affected by the culture in which they live. Values, beliefs, expected behavior of a family are taught to its members through the process of socialization within the family. The same is true for the organizations. When people join an organization they have certain values and beliefs but they may not be sufficient for achieving organizational goals. Hence, they are required to adapt to the culture of the organization. Every organization has missions and goals and to attain these, it adapts unique modes and methods of operations. In the process of achieving the corporate mission, participants internalize organizational values and norms to give meaningful expressions to the same in their day-to-day activities. Thus all the members of an organization come to adapt shared values, beliefs, norms, attitudes, ways of doing things and practices which are unique to the organization. This is called the culture of the organization. As Hagberg & Heifetz (1998) concede that:

“Culture drives the organization and it’s actions”. It is somewhat like “the operating system” of the organization. It guides how employees think, act and feel.”

1.2 DEFINITIONS OF ORGANIZATIONAL CULTURE

Organization culture has been defined, by scholars in varied ways and numerous definition of culture have been proposed. A few of these insights are:

Porter, Lawler & Hackman (1975) identify organization culture as:

“A set of customs and typical patterns of ways of doing things. The force, pervasiveness and nature of such model, beliefs and values vary considerably from organization to organization. Yet it is assumed that an organization that has any history at all has developed some sort of culture and that this will have a vital impact on the degree of success of any effort to improve or alter the organization.”

Edgar H. Schein (1984) defines organization culture as:

“A set of basic assumptions that a given group has invented, discovered or developed in learning to cope with its problems of external adaptations and internal integration that have worked well enough to be considered valid, and therefore, to be taught to new members as a correct way to percieve, think and feel in relation to these problems.”

According to Daniel R. Denison (1990):

“Organization culture refers to the underlying values, beliefs and principles that serve as a foundation for organization’s management systems, as well as the set of management practices and behaviors that both exemplify and reinforce those basic principles.”

Thus, though organization culture is defined by different people in different ways, most of the definitions stress on the importance of shared norms and values in the study of culture. The core of the culture is formed by values which are not visible but shared by people even when membership in the group changes. Organization culture has many characteristics. Based on the varied definitions of culture, Amarchand (1992) identified the following seven distinct characteristics of organization culture. Culture is ­

  • Learned
  • Rooted in the traditions of the organization
  • Shared by the people of the organization
  • Transgenerational
  • Cumulative
  • Symbolic in nature
  • Multifaceted (i.e. it is composed of several elements put together)

Unit V Organisational Culture, Organisational Development And Stress Management For Organisational Theory And Behaviour Mcom Sem 1 Delhi University Notes

Unit V Organisational Culture, Organisational Development And Stress Management For Organisational Theory And Behaviour MCOM Sem 1 Delhi University : A critical examination of the deliberations presented above seems to suggest that culture determines the important issues within the organization. It identifies the principal goals, work methods and behaviours, work rules, individual interaction patters in which they address each other and the ways in which personal relationships are conducted. Sinha (1980) identified that in complex organizations there may be subcultures, which may be different from each other. Different units of a corporate body may develop different cultures. In the same organization, finance, production, marketing, personnel and maintenance groups may hold different values and world-views and hence, while sharing parts of the organization culture, these may have different specific patterns.

J. Chatman & Caldwell has suggested the following seven primary characteristics that capture the essence of an organization’s culture:

1              Innovation and Risk Taking The degree to which employees are encouraged to be innovative and take risks.

2              Attention to detail –The degree to which employees are expected to exhibit precision, analysis, and attention to detail.

3              Outcome Orientation –The degree to which management focuses on results or outcomes rather than on the techniques and processes used to achieve these outcomes.

4              People Orientation –The degree to which management decisions take into consideration the effect of outcomes on people within the organization.

5              Team Orientation –The degree to which work activities are organized around teams rather than individuals.

6              Aggressiveness –The degree to which people are aggressive and competitive rather than easygoing.

7              Stability The degree to which organizational activities emphasize maintaining the status quo in contrast to growth.

Model to describe Organisational Culture in organisations

Several models have been developed to describe the relationships between phenomena and variables of organisational culture. The model of organisational culture as part of organisation reality developed by Sathe (1985), focuses on the influence of leadership, organisation systems and personnel on the actual and expected behaviour patterns, the effectiveness thereof for the organisation and the level of personnel satisfaction brought about by these behaviour patterns. The criticism of this model is that it does not examine the influence of external factors on the organisational culture. Schein’s (1985) model depicts the levels of organisational culture, viz., artifacts, values and basic assumptions and their interaction. Schein’s model is criticised for not addressing the active role of assumptions and beliefs in forming and changing organisational culture (Hatch, 1993). Some researchers see organisational culture in organisations against the background of the systems theory developed by Ludwig von Bertalanffy (1950) and adapted by several authors such as Katz and Kahn who initially applied the systems theory to organisations in 1966 (French and Bell, 1995), Kast and Rosenzweig (1985) and Kreitner and Kinicki (1992) for application in the organisational development field. The systems approach offers a holistic approach, but also emphasises the interdependence between the different sub­systems and elements in an organisation, which is regarded as an open system (French and Bell, 1995). The organisation system model explains the interaction between the organisational subsystems (goals, structure, management, technology and psycho-sociology). This complex interaction, which takes place on different levels, between individuals and groups within the organisation, and with other organisations and the external environment, can be seen as the primary determinant of behaviour in the workplace. The patterns of interaction between people, roles, technology and the external environment represent a complex environment which influences behaviour in organisations.

Against this background and the work of Schein (1985), Martins (1987) developed a model to describe organisational culture based on the typical ideal organisation and the importance of leadership in creating an ideal organisational culture. Martins’ model is based on the interaction between the organisational sub-systems (goals and values, structural, managerial, technological and psychosociological sub-systems), the two survival functions, namely the external environment (social, industrial and corporate culture) and the internal systems (artifacts, values and basic assumptions), and the dimensions of culture. The dimensions of culture encompass the following (Martins, 1987, 1997):

  • Mission and vision (determines personnel’s understanding of the vision, mission and values of the organisation and how these can be transformed into measurable individual and team goals and objectives). External environment (determines the degree of focus on external and internal customers and also employees’ perception of the effectiveness of community involvement).
  • Means to achieve objectives (determines the way in which organisational structure and support mechanisms contribute to the effectiveness of the organisation).
  • Image of the organisation (focuses on the image of the organisation to the outside world and whether it is a sought-after employer).
  • Management processes (focuses on the way in which management processes take place in the organisation. It includes aspects such as decision making, formulating goals, innovation processes, control processes and communication).
  • Employee needs and objectives (focuses on the integration of employees’ needs and objectives with those of the organisation as perceived by employees/personnel). Interpersonal relationships (focuses on the relationship between managers and personnel and on the management of conflict).
  • Leadership (focuses on specific areas that strengthen leadership, as perceived by personnel).

Unit V Organisational Culture, Organisational Development And Stress Management For Organisational Theory And Behaviour Mcom Sem 1 Delhi University Notes

Unit V Organisational Culture, Organisational Development And Stress Management For Organisational Theory And Behaviour MCOM Sem 1 Delhi University : This model is a comprehensive model which encompasses all aspects of an organisation upon which organisational culture can have an influence, and vice versa. This model can therefore be used to describe organisational culture in an organisation and thus be used as background to determine which determinants of organisational culture influence the degree of creativity and innovation in organisations.

Increasing Importance of Organizational Culture

Schein (1992) suggests that organizational culture is even more important today than it was in the past. Increased competition, globalization, mergers, acquisitions, alliances, and various workforce developments have created a greater need for:

  • Coordination and integration across organizational units in order to improve efficiency, quality, and speed of designing, manufacturing, and delivering products and services
  • Product innovation
  • Strategy innovation
  • Process innovation and the ability to successfully introduce new technologies, such as Information Technology
  • Effective management of dispersed work units and increasing workforce diversity
  • Cross-cultural management of global enterprises and/or multi-national partnerships
  • Construction of meta-or hybrid-cultures that merge aspects of cultures from what were distinct organizations prior to an acquisition or merger
  • Management of workforce diversity
  • Facilitation and support of teamwork.

1.3 DETERMINANTS OF ORGANIZATIONAL CULTURE

The forces which play a particularly important part in sustaining a culture identified and explained by Robbins are as given below:

  • Selection practices of the Management
  • Actions of Top Management
  • Socialization Methods

Selection practices of the Management –The explicit goal of the selection process is to identify and hire individuals who have the knowledge, skills, and abilities to perform the jobs within the organization successfully. Generally, more than one candidate is identified who meets any given job’s requirement. When that point is reached, it would be naïve to ignore that the final decision as to who is hired will be significantly influenced by the decision maker’s judgment of how well the candidates will fit into the organization. This attempt to ensure a proper match, whether purposely or inadvertently, results in the hiring of people who have values essentially consistent with those of the organization, or at least a good portion of those values (Schneider). Selection process also provides information to applicants about the organization so that candidates can decide whether to be associated with the organization or not. Therefore, selection process sustains an organization’s culture by selecting out those individuals who might attack or undermine its core values.

Actions of Top Management –A major impact of actions of top management can also be seen on organizational culture (Hambrick and Mason). Through what they say and how they behave, senior executives establish norms that filter down through the organization as to whether risk taking is desirable; how much freedom managers should give their subordinates; what is appropriate dress; what actions will pay off in terms of pay raises, promotions, and other rewards; and the like.

Socialization –It is observed that new employees are not fully in coordination with the organization’s culture. As they are unfamiliar with the organization’s culture, they are likely to disturb the beliefs and customs that are in place. Therefore, the organizations want to help their employees adapt to its culture and the process that adapts employees to the organization’s culture is known as socialization (Allen and Meyer). Organizational socialization is a process of work adjustment that affects how long an individual remains employed with the organization. It describes how people learn to fit into a new organization or job. It is a process by which an individual learns appropriate attitudes, behaviors and knowledge associated with a particular role in an organization (Chao, O’Leary-Kelly, Wolf, Klein, and Gardner). The general theory asserts that people who are well socialized into an organization are more likely to stay and develop their careers with that organization. Building a competent workforce, one where people believe they fit in well with their organizations, is often viewed as a competitive edge in today’s business.

Unit V Organisational Culture, Organisational Development And Stress Management For Organisational Theory And Behaviour MCOM Sem 1 Delhi University : For organizations, a competent and committed workforce minimizes costly turnover and selection expenses. Moreover, individual employee attributes associated with successful organizational socialization can accumulate across the organization to positively effect organizational performance and effectiveness. Organizational socialization is a primary process to facilitate work adjustment for new employees or for employees taking on new roles.

For individuals, a good fit within the organization can lead to several positive benefits. People who are well socialized are more committed to their organizations, more satisfied with their jobs, and earn more than people who don’t learn to fit in with their organizations. Furthermore, people who are well socialized are less likely to quit their jobs and more likely to build successful careers within the organization. The extent to which both organizational and individual socialization processes support a good person-organization fit will define the extent to which that individual has been successfully socialized. According to Mannen and Schien the process of socialization can be conceptualized as a process made up of three stages:

  • Prearrival Stage –The period of learning in the socialization process that occurs before a new employee joins the organization.
  • Encounter Stage –The stage in the socialization process in which a new employee sees what the organization is really like and confronts the possibility that expectations and reality may diverge.
  • Metamorphosis Stage –The stage in the socialization process in which a new employee adjusts to his or her work group’s values and norms.

What is learned in organizational socialization?

There are several models of socialization content describing what a newcomer learns during the adjustment process. Chao, O’Leary-Kelly, Wolf, Klein, and Gardner developed six content areas for organizational socialization and developed scales to research learning in these areas:

  • Performance proficiency,
  • Language,
  • People,
  • Politics,
  • Organizational goals and values, and

Unit V Organisational Culture, Organisational Development And Stress Management For Organisational Theory And Behaviour MCOM Sem 1 Delhi University Notes

Unit V Organisational Culture, Organisational Development And Stress Management For Organisational Theory And Behaviour MCOM Sem 1 Delhi University :  History. Performance proficiency involves learning to perform a job successfully. Language involves learning special acronyms and terminology used by the organization. The people dimension includes learning to get along with other organizational members. Politics involves learning formal and informal power structures. Organizational goals and values involve understanding the organization’s culture. Finally, history involves learning about the organization’s past as well as the specific history associated with the newcomer’s business unit. Organizational newcomers generally scored lower on these dimensions than organizational insiders. Furthermore, people who were better socialized, tend to be more satisfied with their jobs, more involved in their careers, and earned more income than people who were less well socialized. Perhaps most interesting is the finding that people who don’t perceive themselves to fit with the organization’s goals and values are most likely to quit their jobs and change organizations. Regardless of how people learn in these content areas, mastery was associated with greater socialization and greater socialization was associated with positive job and career outcomes.

Unit V Organisational Culture, Organisational Development And Stress Management For Organisational Theory And Behaviour Mcom Sem 1 Delhi University Notes

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