Organizational Behavior and

Organizational Change
Organizational Culture

Roger N. Nagel
Senior Fellow & Wagner Professor
Lehigh University
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CSE & Enterprise Systems Center

Lehigh University
Roger N. Nagel © 2006
 Topics This Presentation
‰ Organizational Culture
Characteristics
1. Innovation and risk taking eleventh edition

2. Attention to detail
3. Outcome orientation
organizational behavior
4. People orientation
5. Team orientation
6. Aggressiveness
stephenp. robbins
7. Stability
2

8. Agility
‰ Organizational Culture USA & “Organizational
“Organizationalbehavior”
behavior”
China Eleventh
EleventhEdition
Edition
‰ What Do Cultures Do? By
BySteve
SteveRobbins
Robbins
ISBN
ISBN0-13-191435-9
0-13-191435-9
‰ How Employees Learn Culture Reference
ReferenceBook
Book
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Roger N. Nagel © 2006
 What Is Organizational Culture?
Organizational Culture Characteristics:
Characteristics:
A common perception 1.1. Innovation
Innovationand
andrisk
risk
taking
held by the organization’s taking
members; a system of 2.2. Attention
Attentionto
todetail
detail
shared meaning. 3.3. Outcome
Outcomeorientation
orientation
4.4. People
Peopleorientation
orientation
5.5. Team
Teamorientation
orientation
6.6. Aggressiveness
Aggressiveness
7.7. Stability
Stability
8.8. Agility
Agility
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Roger N. Nagel © 2006
 Culture Characteristics A Closer look

1. Innovation and risk taking.

¾ The degree to which employees are encouraged to
do both
2. Attention to detail.
¾ Degree to which employees are expected to
exhibit precision, analysis, and attention to detail.
3. Outcome orientation.
¾ Degree to which management focuses on results
rather than on processes used to achieve them.
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Roger N. Nagel © 2006
 Culture Characteristics A Closer look

4. People orientation.
¾ Degree to which management decisions consider
the effect of outcomes on people within the
organization.
5. Team orientation.
¾ Degree to which work activities are organized
around teams rather than individuals.
6. Aggressiveness.
¾ Degree to which people are aggressive and
competitive.
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CSE & Enterprise Systems Center

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Roger N. Nagel © 2006
 Culture Characteristics A Closer look

7. Stability.
¾ Degree to which activities emphasize maintaining
the status quo.
8. Agility.
¾ Ability to change products or processes quickly
and easily in response to new strategies or market
demands [More on Agility soon]

CSE & Enterprise Systems Center

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Roger N. Nagel © 2006
 Typical Organizational Culture USA
Characteristics: IN USA
(high, moderate, low) Nagel Opinion
Innovation and risk taking high

Attention to detail low

Outcome orientation moderate

People orientation moderate
Team orientation moderate
Aggressiveness high
Stability moderate
Agility moderate
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CSE & Enterprise Systems Center

Lehigh University
Roger N. Nagel © 2006
 Typical Organizational Culture USA & China
Characteristics: IN USA IN China
(high, moderate, low) Nagel Opinion Your Opinion
Innovation and risk taking high

Attention to detail low

Outcome orientation moderate

People orientation moderate
Team orientation moderate
Aggressiveness high
Stability moderate
Agility moderate
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CSE & Enterprise Systems Center

Lehigh University
Roger N. Nagel © 2006
 Individual and Team Exercise

‰Fill in the typical organizational culture USA &

china table which follows by your self.
¾ For USA and China cultures use your best guess

CSE & Enterprise Systems Center

Lehigh University
Roger N. Nagel © 2006
 Typical Organizational Culture USA & China
Characteristics: IN USA IN USA In China
(high, moderate, low) Nagel Opinion Your Opinion Your Opinion
Innovation and risk taking high

Attention to detail low

Outcome orientation moderate

People orientation moderate
Team orientation moderate
Aggressiveness moderate
Stability moderate
Agility moderate
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CSE & Enterprise Systems Center

Lehigh University
Roger N. Nagel © 2006
 Individual and Team Exercise
‰ Read about organization A and organization
B in the two slides which follow.
‰ Fill in the table following the descriptions
using your opinion for the culture of
organization A and organization B by your
self

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CSE & Enterprise Systems Center

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Roger N. Nagel © 2006
 Contrasting Organizational Cultures
Organization A
This organization is a manufacturing firm. Managers are expected to fully document all decisions;
and “good managers” are those who can provide detailed data to support their recommendations.
Creative decisions that incur significant change or risk are not encouraged. Because managers of
failed projects are openly criticized and penalized, managers try not to implement ideas that deviate
much from the status quo. One lower-level manager quoted an often used phrase in the company: “If
it ain’t broke, don’t fix it.”
There are extensive rules and regulations in this firm that employees are required to follow.
Managers supervise employees closely to ensure there are no deviations. Management is concerned
with high productivity, regardless of the impact on employee morale or turnover.
Work activities are designed around individuals. There are distinct departments and lines of
authority, and employees are expected to minimize formal contact with other employees outside their
functional area or line of command. Performance evaluations and rewards emphasize individual
effort, although seniority tends to be the primary factor in the determination of pay raises and
promotions.

E X H I B I T 16–1
E X H I B I T 16–1
Page 487
Page 487
 Contrasting Organizational Cultures
Organization B
This organization is also a manufacturing firm. Here, however, management encourages
and rewards risk taking and change. Decisions based on intuition are valued as much as
those that are well rationalized. Management prides itself on its history of experimenting
with new technologies and its success in regularly introducing innovation products.
Managers or employees who have a good idea are encouraged to “run with it.” And failures
are treated as “learning experiences.” The company prides itself on being market-driven and
rapidly responsive to the changing needs of its customers.
There are few rules and regulations for employees to follow, and supervision is loose
because management believes that its employees are hardworking and trustworthy.
Management is concerned with high productivity, but believes that this comes through
treating its people right. The company is proud of its reputation as being a good place to
work.
Job activities are designed around work teams, and team members are encouraged to
interact with people across functions and authority levels. Employees talk positively about
the competition between teams. Individuals and teams have goals, and bonuses are based
on achievement of these outcomes. Employees are given considerable autonomy in
choosing the means by which the goals are attained. E X H I B I T 16–1
E X H I B I T 16–1
Page 487
Page 487
 Read about Organization A & B and Rate Them
Characteristics: Organization A Organization B
(high, moderate, low) Your Opinion Your Opinion
Innovation and risk taking
Attention to detail
Outcome orientation
People orientation
Team orientation
Aggressiveness
Stability
Agility
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CSE & Enterprise Systems Center

Lehigh University
Roger N. Nagel © 2006
 Individual and Team Exercise
‰ Fill in the tables which follows for your
organization
a. First characterize your organization as it is today,
and then indicate how you feel it should be in the
future.
b. On a separate piece of paper write down an
explanation of why you want to change your
organizational culture for any row in which you
have indicated a change is needed.

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CSE & Enterprise Systems Center

Lehigh University
Roger N. Nagel © 2006
 Your Organizational Culture Today and in Future
Characteristics: Your Organization Your Organization
(high, moderate, low) today Should be in future
Innovation and risk taking
Attention to detail
Outcome orientation
People orientation
Team orientation
Aggressiveness
Stability
Agility
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CSE & Enterprise Systems Center

Lehigh University
Roger N. Nagel © 2006
 Individual and Team Exercise
‰ Share your answers with your team
1. For USA and China cultures form a team consensus and
prepare to report it.
2. For organizations A and Organization B form a team
consensus and prepare to report it.
3. Share your organizational culture today and in the future
chart with our teammates.
a. discuss the characteristics you desire to change and your
reasons for the changes.
b. Provide feedback to each team member.
c. identify a list of characteristics which several of you all feel
must change and prepare to report them
d. Explain your groups reasons for each characteristic and
prepare to report them.
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CSE & Enterprise Systems Center

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Roger N. Nagel © 2006
 Read about Organization A & B and Rate Them
Characteristics: Organization A Organization B
(high, moderate, low) Nagel Opinion Nagel Opinion
Innovation and risk taking low high
Attention to detail high low
Outcome orientation low high
People orientation low high
Team orientation low high
Aggressiveness low moderate
Stability high low
Agility low high
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CSE & Enterprise Systems Center

Lehigh University
Roger N. Nagel © 2006
 Exercise A Team Reports
‰For USA and China cultures form a team consensus chart
with typical organizational culture in each country
‰For organizations A and organization B form a team
consensus chart with organization A & B ratings
‰Your organizational culture today and in the future
common list of characteristics which several of you feel
must change
¾Explain your reasons for each characteristic

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CSE & Enterprise Systems Center

Lehigh University
Roger N. Nagel © 2006
 Do Organizations Have Uniform Cultures?
Dominant Culture
Expresses the core values that
are shared by a majority of
the organization’s members.

Subcultures
Minicultures within an
organization, typically defined
by department designations
and geographical separation. 20

CSE & Enterprise Systems Center

Lehigh University
Roger N. Nagel © 2006
 Do Organizations Have Uniform Cultures?

Core Values
The primary or dominant values that are accepted
throughout the organization.

Strong Culture
A culture in which the
core values are intensely
held and widely shared.
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CSE & Enterprise Systems Center

Lehigh University
Roger N. Nagel © 2006
 What Do Cultures Do?

Culture’s
Culture’sFunctions:
Functions:
1.1. Conveys
Conveysaasense
senseof
ofidentity
identityfor
forits
itsmembers.
members.
2.2. Facilitates
Facilitatesthe
thegeneration
generationofofcommitment
commitmentto
to
something
somethinglarger
largerthan
thanself-interest.
self-interest.
3.3. Enhances
Enhancesthe
thestability
stabilityof
ofthe
thesocial
socialsystem.
system.
4.4. Serves
Servesas asaasense-making
sense-makingand
andcontrol
controlmechanism
mechanism
for
forfitting
fittingemployees
employeesininthe
theorganization.
organization.

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Roger N. Nagel © 2006
 What Do Cultures Do?
‰ Can define the boundary between one organization and others.
¾ When there are cultural incompatibilities
‰ Globally this is can significant concern
‰ Consider our USA vs. China chart
Characteristics: IN USA IN China
(high, moderate, low) Nagel Opinion Your Opinion
Innovation and risk taking high

Attention to detail low

Outcome orientation moderate

People orientation moderate
Team orientation moderate
Aggressiveness moderate
Stability moderate
Agility moderate 23

CSE & Enterprise Systems Center

Lehigh University
Roger N. Nagel © 2006
 Which if any should be dealt with
To be Supplier Collaborator Integrated subsidiary
Collaborator
Innovation and risk Nagel view
taking
Attention to detail
Outcome orientation
People orientation
Team orientation
Aggressiveness
Stability
Agility sometimes
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CSE & Enterprise Systems Center

Lehigh University
Roger N. Nagel © 2006
 What Do Cultures Do?

Culture
Cultureas
asaaLiability:
Liability:
1.1. Barrier
Barrierto
tochange.
change.
2.2. Barrier
Barrierto
todiversity
diversity
3.3. Barrier
Barrierto
tocollaboration
collaboration
4.4. Barrier
Barrierto
toacquisitions
acquisitionsand
andmergers
mergers

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Roger N. Nagel © 2006
 How Employees Learn Culture
•• Leaders
Leadersas
asrole
rolemodels
models
•• Behavior
Behaviorof
ofothers
others
•• Stories
Stories
•• Rituals
Rituals
•• Material
MaterialSymbols
Symbols
•• Language
Language

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CSE & Enterprise Systems Center

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Roger N. Nagel © 2006
 Creating An Ethical Organizational Culture

‰ Characteristics of Organizations that Develop High

Ethical Standards
¾ High tolerance for risk
¾ Low to moderate in aggressiveness
¾ Focus on means as well as outcomes
‰ Managerial Practices Promoting an Ethical Culture
¾ Being a visible role model.
¾ Communicating ethical expectations.
¾ Providing ethical training.
¾ Rewarding ethical acts and punishing unethical ones.
¾ Providing protective mechanisms.
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CSE & Enterprise Systems Center

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Roger N. Nagel © 2006
 Creating a Customer-Responsive Culture

‰ Shaping Customer-Responsive Cultures

1. The types of employees hired by the organization.
2. Low formalization: the freedom to meet customer
service requirements.
3. Empowering employees with decision-making
discretion to please the customer.
4. Good listening skills to understand customer
messages.
5. Employees who engage in organizational
citizenship behaviors.
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Roger N. Nagel © 2006
 Creating a Customer-Responsive Culture

‰Managerial Actions
¾ Actionable vision
» Lead by conveying a customer-focused vision
¾ Role model
» demonstrating commitment to customers.
» Provide ongoing recognition for employees who make
special efforts to please customers
¾ Provide an Agile organizational structure
» Empower employees to make appropriate decisions

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CSE & Enterprise Systems Center

Lehigh University
Roger N. Nagel © 2006
 Personal Exercise Choice A

‰ What cultural changes should you be making

to be a more effective in meeting your global
business goals
1. Identify your global business goals
2. Is our current culture an asset or a deficit in
meeting your global business goals
3. Explain how and or why (your answer in 2. above)
a. develop a plan for changes you need to make.
b. Identify benefits you expect, metrics for them
c. Obstacles you will face and how to overcome them.

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CSE & Enterprise Systems Center

Lehigh University
Roger N. Nagel © 2006
 Personal Exercise Choice B
‰ What cultural changes should you be making
to be a more effective in meeting your
domestic business goals
1. Identify your domestic business goals
2. Is our current culture an asset or a deficit in
meeting your domestic business goals
3. Explain how and or why (for your answer in 2.
above)
a. develop a plan for changes you need to make.
b. Identify benefits you expect, metrics for them
c. Obstacles you will face and how to overcome them.
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CSE & Enterprise Systems Center

Lehigh University
Roger N. Nagel © 2006
 XIE XIE
Roger N. Nagel
Wagner Professor and Senior Fellow
CSE Department &
The Enterprise Systems Center at Lehigh University
200 West Packer Avenue
Bethlehem, Pennsylvania, 18015
(610) 758-4086, (610) 868-0402 [fax]
Rnagel@lehigh.edu

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CSE & Enterprise Systems Center

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Roger N. Nagel © 2006