Organization Culture Social system

1. Social System
and
Organizational
Culture
REPORTER: RIZA PODIRSKY

2. Objectives
To be able to understand and reflect:
• Social System
• Social Cultures and their Impacts on
our behavior
• The Value of Cultural Diversity
• Importance of Role knowledge
• Status and Status Symbols
• Organizational Culture

3. “REFLECTION” Activity
Positive
 Very Industrious
 I like you
 You’re doing it well
Negative
 Your lazy!
 That is useless!
 I don’t like you!

4. Understanding
a Social System
WHAT IS A SOCIAL SYSTEM?

5. Social System
• is a “complex” set of human
relationships interacting in many
ways
Social System Presentation:

6. Why Complex?
1. behavior of one affects the
behavior of others
2. It is an “open system”

7. Social
Equilibrium/Disequilibrium
Equilibrium
• when there is a
dynamic working
balance among
its
interdependent
parts
Disequilibrium
• When the
interdependent
parts system are
working against
each other

8. Psychological and Economic
Contracts
• ECONOMIC CONTRACT- where time,
talent, energy are exchanged for
wages, hours and reasonable working
conditions.
• PSYCHOLOGICAL CONTRACT –the
conditions of each employee’s
psychological involvement-both
contributions and expectations- with
the social system

9. The Result of the Psychological
Contract & The Economic
Contract
Economic
Contract
Psychological
Contract
Employer:
• Expected
Gains
• Rewards
offered
Employee:
If expectations are
met:
 Job satisfaction
 High performance
 Loyalty
If not:
The opposite
Employer:
If expectations are met:
• Employee retention
• Possible promotion
If not:
 Corrective
Action;discipline
 Possible separation
Employee:
• Expected
Gains
• Intended
Contributions

10. Psychological contract builds upon
the concept of “exchange theory’
Whenever a continuing relationship
exists between two parties, each person
regularly examines the rewards and
costs of that interaction. In order to
remain positively attracted to the
relationship, both parties must believe
that a net positive ratio (rewards to
costs) exists from their perspective.

11. Social Culture

12. Social Culture
An environment of human-created
beliefs, customs, knowledge and
practices
• SOCIAL- is the behaviour of people
when they act in accordance with the
expectations of others
• CULTURE-is the conventional
behavior of her society and it
influences all her actions even though
it seldom enters her conscious
thoughts

13. Culture differences
Some of the ways in which culture differ
includes:
• Patterns of decision making
• Respect for authority
• Treatment for females
• Accepted leadership styles
**Manager’s must know

14. Cultural
Diversity

15. Cultural Diversity
Job related-
(organizationally
created)
• Types of work
• Rank
• Physical
proximity to one
another
Non job related-
(arise primarily from individual’s
personal background)
• Ethnicity
• Culture
• Socioeconomic
• Sex
• race

16. Culture Diversity
• Differences need to be recognized,
acknowledged, appreciated, and used
to collective advantage.
***
• Culture adaptable
• Culture dependent

17. Social Culture
Values

18. Social Culture Values
Work ethics
• Views work as very
important thing in
life
• Views work as a
desirable goal
• Likes work and is
satisfied with it
Social Responsibility
• Is the recognition that
organizations have
significant influence on
the social system and that
influence must be
properly considered and
balanced in all
organizational actions.

19. Work Ethics Declination
1. The proportion
of employees
having strong
work ethic
varies sharply
among sample
groups
2. The general level
of the work ethic
has declined
gradually over
many decades.

20. Role
What is a role?

21. Role
• is a pattern of expected actions
• It reflects a person’s position with its
accompanying
Rights and obligations
Power and responsibility
Function of Role in Social System:
“To anticipate other’s behavior”

22. Figure 4.2 Each employee
performs many roles
A leader An adviser A staff person
A Committee
chairperson
A specialist A golfer
A follower A worker A club
president
A stockholder A consumer An accountant
A spouse A subordinate A student
A parent A musician And more!!

23. Things to know
• Role Perception
• Role Flexibility
• Role conflict
• Role ambiguity
• Importance of mentorship program

24. Status

25. Status is social rank!!!
• The amount of the recognition, honor,
esteem, and acceptance given to a
person
Terms to remember
Status System/hierarchy
Status anxiety
Status deprivation

26. Status Relationship
(Effect of Status)
High status people
• More influential
• Received more privileges
• More participative in group
activities
• Interact more
• Opportunities for a better role in an
organization

27. Status Symbols
• are the visible, external things that attach to
a person or workplace and serve as evidence
of social rank
• are most in evidence among different levels
of managers

28. Typical Symbols of Status
• Furniture
• Interior decorations
• Location of workplace
• Facilities at workplace
• Quality and newness of equipment
used

29. Typical Symbols of Status
• Type of clothes normally worn
• Privileges given
• Job title or organizational level
• Employees
• Degree of financial discretion
• Organizational membership

30. Sources of Status
• Person’s abilities
• Job skills
• Type of work also
• Amount of pay
• Seniority
• Age
• stock options

31. Organizational
Culture
What is it?

32. Organizational Culture
• set of shared values and norms that
characterise a particular organization
• organizational culture is a set of shared
mental assumptions that guide
interpretation and action in organizations by
defining appropriate behavior for various
situations. (Ravasi and Schultz (2006) )

33. Importance of OC
• Gives an organizational identity to employee
• Provides a sense of security to its members
• Helps newer employees interpret what goes
on inside the organization
• Helps stimulate employees enthusiasm for
their tasks

34. Characteristics of Cultures
• Distinctive
• Stable
• Implicit
• Symbolic
• No one type is
best
• Integrated
• Accepted
• A reflection of
top management
• Subcultures
• Of varying
strength

35. Communicating and Changing
Culture
• People are generally more willing to
adapt and learn when they want to
please others, gain approval and learn
about their new work environment.
• Socialization affects employees
• Individualization affects the
organization

36. Four Combinations of Socialization
and Individualization
Conformity
Rebellion
Creative
Individualism
Isolation
High
High
Low
Low Individualization
(Impact of employee on
organizational culture deviation
from norms)
Socialization
(Impact of
organizational
culture on employee
acceptance of
norms)

37. References
• Newstrom 12th edition
• Wikipedia
• Merriam online dictionary
• http://ph.news.yahoo.com/company-
culture-giving-032710984--finance.html

38. Synthesis
“Life is a series of natural and
spontaneous changes. Don't resist
them; that only creates sorrow. Let
reality be reality. Let things flow
naturally forward in whatever way
they like.”
Lao Tzu

39. Thank you for
the time 
MAY GOD BLESS US ALL