Organization and Leadership Lecture 9

- Pattern of shared assumptions of a group that is given forward to new group members --> Assumptions learned in the progress of work which is thorughly valid for everyone

3 Levels of Culture: Artifacts (Surface-level and visivle results of culture e.g. dress code, rituals), Espoused Values (Collective feelings of how things should be e.g. fairness, ideologies, norms), Basic Underlying Assumptions (deeply rooted, not consciously perceptible e.g. relationship to other employees --> hierarchical vs. individualistic)

Content of Culture: depends very much on the specific field of an organization e.g. Audi is technology oriented (Lead in technology), Rynair is cost oriented (Fly cheaper) or Adidas innovation oriented (Impossible is nothing)

Identification Function:

- We feeling, social glue, differentiation between different companies, strong identification with company

Motivation Function:

- Culture provides meaning, common sense of orientation, commitment to core values lead to an increase in motivation to engage, increase employer attractiveness, retention of talent

Stability Function:

- Standard for employee attitudes and behavior, reduces complexity, avoiding debates od principles, promotes employee cohesion

Performance Function: 

- increases efficiency, creativity and performance

Institutionalization --> unquestioned actions, only engeaged to company but not to product/service

Barriers to change --> pragmatism and caution instead of technology and innovation

Barriers to diverstiy--> 1-dimensional thinking/acting, barrier for applicants with different characteristics

Barriers to A&M: compatibility with new merger? difficulties for synergies

- Fit of vlaues between employees and company

- Fit of value between copany and geoprahpical culture

5 Dimensions:

- Power Distance: degree to which less powerfuls of society accept and expect that power is unequally distributed

- Individualism vs. Collectivism: extent to which individuals are integrated into group

- Male vs. Female: Male societies focues on performance, material compensation etc. Femal on compassion, cohesion etc.

- Uncertainty avoidance: degree to which uncertainty is an uncomfortable feeling ->avoid uncertainty

Long vs Short Term Orientatin: Orientation towards future (modernity) or present (tradition)?

Objective: Improve understanding of cultural differences and its impact on leadership effectiveness

Used 9 dimensions to cluster the countries:

- Uncertainty avoidance, Power distance (unequal distribution of power), Institutional Collectivism (how a company practices encourage collective distribution of resources and action), Group Collectivism (Degree to which loayalty is expressed in a company), Gender Equality, Future Oriented Behavior, Performance Oriented, Humane Oriented Fairness etc.) and Assertiveness (being self-assured without aggresivness)

Countries divided into 10 Cluster according to geographical reasons e.g. N. America, Germanic Europe etc. --> Example G. Europe, AUT, NED, CH, GER; high performance oriented, assertiveness and uncertainty avoidance; aggressive competition, formal rules and planning, individualism

Reasons for development: 

-Economic Factors: Increase competition, globalization, strategic alliances, tech. developments etc.

-Socio-cultural: Value change, diverstiy, demographic change

-Organ. Interal: Strong growth, productivity problems, change at the top, high fluctuation, 

Step 1: Analysis of Organ. Culture: Leader surveys, analysis of documents (annual reports, corporate identiy etc.), company walks (assesing symbols of status, typical ways of behavior etc.) and observation of meeting (topics, interaction rituals etc.) --> Analyis Strong vs. Weak Culture: pattern of values, share ideas of value and how far are they habits, stability of culture? --> What we'd like to be in the future --> Customer focus!

Step 2: Systematic Culture Development: Starting points for Leaders

Use the triangle of levels:

- Influence Artifacts: adapt structures to organ. culture, highlight real events that go with specific values, write down values--> deal with the symbols, stories, employees etc. of the company--> Symbolic management means to consciously & specifically influence the artifacts within a company

- Influence espoused values and basic underlying assumptions: attention towards norms and values increases their impact if not observed, their unimportance is highlighted! During crisis, especially demonstrate values of company culture; Leaders act as role models; Cultural appropriate behavior is rewarded in/formal; targeted selection/dismissal of employees