UGBA 105 - Final Exam 2023 Complete
Organizational Culture
The set of shared values, beliefs, and norms that influences the way employees think,
feel, and behave toward each other and toward people outside the organization
The shared assumptions that people and groups learn to follow as they attempt to
address issues and problems
An organization's culture controls the way employees perceive and respond to the
people and situation around them and how they use this information to make decisions
Values
General criteria, standards, or guiding principles people use to determine which types of
behavior, events, situations, and outcomes are desirable or undesirable
Terminal Values
A desired end state or outcome people seek to achieve
• Ex. Quality, responsibility, innovativeness, etc
Instrumental Values
A desired mode or type of behavior
• Ex. Working hard, respecting authority, being frugal
Norms
Standards or styles of behavior considered acceptable or typical for a group of people
who perform a certain job
Informal rules of conduct that emerge over time to encourage employees to cultivate
the work attitudes and behaviors important to an organization
Members learn from each other how to perceive and respond to various situations in
ways that are consistent with an organization's accepted values
Socialization and Tactics
To learn an organization's culture, new workers must obtain information about cultural
values, and do so through formally participating in an organization's socialization
program, and informally by observing and working with other employees
Organizational Rites and Ceremonies
Rites of passage mark an individual's entry to, promotion in and departure from the
organization
Rites of integration, such as shared announcements of org. success, office parties,
and company cookouts, build and reinforce common bonds between members
Rites of enhancement, like awards dinners, newspaper releases, and employee
promotions give an organization the opportunity to publicly acknowledge and reward
employee contributions and enhance commitment to its values
The Organizational Language
Stories about organizational heroes provide important clues about cultural values and
norms.
The characteristic names or phrases a company uses to frame and describe events
provide important clues about norms and values
• Many orgs use technical language to facilitate cooperation between their employees
• Jargon, the shorthand words and phrases used to save time, is developed by
specialized work groups such as the military, sport teams, hospitals etc
, Language also consists of how people dress and how they address each other
• Its become more common for business casual and dress down days
Organizational Symbols
Often used to communicate an organizations cultural values and norms to its members
and to others outside the organization
For example, the size of people's offices, their location on what floor, and the luxury
of the furniture symbolize the cultural values an organization holds
Peter's and Waterman's: Value Set 1
Values that promote a bias of action
• The emphasis is on autonomy and entrepreneurship and employees are encouraged
to take risks
• Managers are also hands on and make decisions where the effects are felt, not
isolated away
Peter's and Waterman's: Value Set 2
Stems from the nature of an organization's mission
• A company must stick with what it does best and protect and expand its expertise over
core or central activities such as the technology that drives its new products or services
• A company must establish close relationships with its customers
Peter's and Waterman's: Value Set 3
How to operate the organization
• Every company needs to design their org structure so employees are motivated to
work hard and do their best.
• High performance results when the values and norms of its culture demonstrate
respect and appreciation for employees
• Orgs should have the minimum number of hierarchical levels and managers necessary
Hofstede's: Individualism versus collectivism
• In countries where individualism prevails, values of individual achievement, freedom,
and competition are stressed.
o Ex. US
• In countries where collectivism prevails, values of group harmony, cohesiveness, and
consensus are very strong
o Ex. Japan
Hofstede's: Power distance
• The degree to which a country accepts the fact that differences in its citizen's physical
and intellectual capabilities give rise to inequalities in their well being.
• The degree to which a country accepts economic and social differences as being
natural
• Countries that allow inequalities to persist have high power distance
o These inequalities will grow
• Countries that dislike the development of of large inequality gaps have low power
distance
o They use taxation and social welfare programs to reduce inequality
Hofstede's: Achievement versus nurturing orientation
• Countries that are achievement oriented value assertiveness, performance, success,
and competition and are results oriented
o Ex. Japan and US
, • Countries that are nurturing oriented value the quality of life, warm personal
relationships, and service and care for the weak.
o Ex. Netherlands, Sweden
Hofstede's: Uncertainty avoidance
• Countries low on uncertainty avoidance are easy going, value diversity, and are
tolerant of differences in what people believe and do.
o Ex. US and hong kong
• Countries high on uncertainty avoidance tend to be rigid and intolerant.
o Ex. Japan and france
Hofstede's: Long-term versus short term orientation
• A long term orientation is likely a result of values that include thrift and persistence,
o Ex. Japan and hong kong
• A short term orientation is a result of values that express a concern for maintaining
personal stability or happiness and for living in the present
o Ex. US, and France
Power
The ability of one person or group to cause another person or group to do something
they otherwise might not have done
Organizational Politics
Activities in which managers engage to increase their power and to pursue goals that
favor their individual and group interests
Managers at all levels engage in political behavior to gain promotion of to influence
decision making in their favor
Political Decision Making
Decision making characterized by active disagreement over which org goals to pursue
and how to pursue them, can lead to a more effective use of org. resources
Formal Power
Based on the authority that stems froma person's position in an org's hierarchy
Legitimate Power
The power to control and use org resources to accomplish org goals
• Legit power is the ultimate source of an individual's power in an org
• The greater a manager's legitimate power, the more accountable and responsible they
are for using company resources to improve company performance
Reward Power
The power to give pay raises, promotion, praise, interesting projects, and other rewards
to subordinates
• as long as subordinates value the rewards, a manager can use this power to influence
and control their behavior
Coercive Power
The power to give or withhold punishment
• punishments range from suspensions to demotion or termination
Information Power
The power that stems from access to and control over information
• the more managers are able to access and control important information, the greater
their informative power
Organizational Culture
The set of shared values, beliefs, and norms that influences the way employees think,
feel, and behave toward each other and toward people outside the organization
The shared assumptions that people and groups learn to follow as they attempt to
address issues and problems
An organization's culture controls the way employees perceive and respond to the
people and situation around them and how they use this information to make decisions
Values
General criteria, standards, or guiding principles people use to determine which types of
behavior, events, situations, and outcomes are desirable or undesirable
Terminal Values
A desired end state or outcome people seek to achieve
• Ex. Quality, responsibility, innovativeness, etc
Instrumental Values
A desired mode or type of behavior
• Ex. Working hard, respecting authority, being frugal
Norms
Standards or styles of behavior considered acceptable or typical for a group of people
who perform a certain job
Informal rules of conduct that emerge over time to encourage employees to cultivate
the work attitudes and behaviors important to an organization
Members learn from each other how to perceive and respond to various situations in
ways that are consistent with an organization's accepted values
Socialization and Tactics
To learn an organization's culture, new workers must obtain information about cultural
values, and do so through formally participating in an organization's socialization
program, and informally by observing and working with other employees
Organizational Rites and Ceremonies
Rites of passage mark an individual's entry to, promotion in and departure from the
organization
Rites of integration, such as shared announcements of org. success, office parties,
and company cookouts, build and reinforce common bonds between members
Rites of enhancement, like awards dinners, newspaper releases, and employee
promotions give an organization the opportunity to publicly acknowledge and reward
employee contributions and enhance commitment to its values
The Organizational Language
Stories about organizational heroes provide important clues about cultural values and
norms.
The characteristic names or phrases a company uses to frame and describe events
provide important clues about norms and values
• Many orgs use technical language to facilitate cooperation between their employees
• Jargon, the shorthand words and phrases used to save time, is developed by
specialized work groups such as the military, sport teams, hospitals etc
, Language also consists of how people dress and how they address each other
• Its become more common for business casual and dress down days
Organizational Symbols
Often used to communicate an organizations cultural values and norms to its members
and to others outside the organization
For example, the size of people's offices, their location on what floor, and the luxury
of the furniture symbolize the cultural values an organization holds
Peter's and Waterman's: Value Set 1
Values that promote a bias of action
• The emphasis is on autonomy and entrepreneurship and employees are encouraged
to take risks
• Managers are also hands on and make decisions where the effects are felt, not
isolated away
Peter's and Waterman's: Value Set 2
Stems from the nature of an organization's mission
• A company must stick with what it does best and protect and expand its expertise over
core or central activities such as the technology that drives its new products or services
• A company must establish close relationships with its customers
Peter's and Waterman's: Value Set 3
How to operate the organization
• Every company needs to design their org structure so employees are motivated to
work hard and do their best.
• High performance results when the values and norms of its culture demonstrate
respect and appreciation for employees
• Orgs should have the minimum number of hierarchical levels and managers necessary
Hofstede's: Individualism versus collectivism
• In countries where individualism prevails, values of individual achievement, freedom,
and competition are stressed.
o Ex. US
• In countries where collectivism prevails, values of group harmony, cohesiveness, and
consensus are very strong
o Ex. Japan
Hofstede's: Power distance
• The degree to which a country accepts the fact that differences in its citizen's physical
and intellectual capabilities give rise to inequalities in their well being.
• The degree to which a country accepts economic and social differences as being
natural
• Countries that allow inequalities to persist have high power distance
o These inequalities will grow
• Countries that dislike the development of of large inequality gaps have low power
distance
o They use taxation and social welfare programs to reduce inequality
Hofstede's: Achievement versus nurturing orientation
• Countries that are achievement oriented value assertiveness, performance, success,
and competition and are results oriented
o Ex. Japan and US
, • Countries that are nurturing oriented value the quality of life, warm personal
relationships, and service and care for the weak.
o Ex. Netherlands, Sweden
Hofstede's: Uncertainty avoidance
• Countries low on uncertainty avoidance are easy going, value diversity, and are
tolerant of differences in what people believe and do.
o Ex. US and hong kong
• Countries high on uncertainty avoidance tend to be rigid and intolerant.
o Ex. Japan and france
Hofstede's: Long-term versus short term orientation
• A long term orientation is likely a result of values that include thrift and persistence,
o Ex. Japan and hong kong
• A short term orientation is a result of values that express a concern for maintaining
personal stability or happiness and for living in the present
o Ex. US, and France
Power
The ability of one person or group to cause another person or group to do something
they otherwise might not have done
Organizational Politics
Activities in which managers engage to increase their power and to pursue goals that
favor their individual and group interests
Managers at all levels engage in political behavior to gain promotion of to influence
decision making in their favor
Political Decision Making
Decision making characterized by active disagreement over which org goals to pursue
and how to pursue them, can lead to a more effective use of org. resources
Formal Power
Based on the authority that stems froma person's position in an org's hierarchy
Legitimate Power
The power to control and use org resources to accomplish org goals
• Legit power is the ultimate source of an individual's power in an org
• The greater a manager's legitimate power, the more accountable and responsible they
are for using company resources to improve company performance
Reward Power
The power to give pay raises, promotion, praise, interesting projects, and other rewards
to subordinates
• as long as subordinates value the rewards, a manager can use this power to influence
and control their behavior
Coercive Power
The power to give or withhold punishment
• punishments range from suspensions to demotion or termination
Information Power
The power that stems from access to and control over information
• the more managers are able to access and control important information, the greater
their informative power
