copyright © 2013 pearson education, inc., publishing as prentice hall12-1 managing behavior in...

Copyright © 2013 Pearson Education, Inc., publishing as Prentice Hall 12-1

Managing Behavior In Organizations

Sixth Edition

Jerald Greenberg

Organizational Culture, Creativity and Innovation

Chapter Twelve


Learning Objectives DEFINE organizational culture and IDENTIFY its core

characteristics

DESCRIBE the major types of organizational culture identified in the competing values framework

IDENTIFY the factors responsible for creating organizational culture, for transmitting it, and for getting it to change

DEFINE creativity and DESCRIBE the basic components of individual and team creativity

DESCRIBE various approaches to promoting creativity in organizations

IDENTIFY the basic components of general innovation, its various forms, and the stages of the innovation process


Three Good Reasons Why You Should Care About . . . Culture, Creativity,

Innovation1. Organizational culture exerts profound

influences on employees, both positive and negative

2. Managers play pivotal roles in developing, transmitting, and changing organizational culture

3. Individual and team creativity is an important determinant of an organization’s capacity to be innovative. This, in turn, plays an important role in organizational success


Organizational Culture

Organizational culture is a cognitive framework consisting of assumptions and values shared by organization members


Core Cultural Characteristics

Sensitivity to othersInterest in new ideasWillingness to take risksThe value placed on people

– Toxic organizational cultures - people do not feel valued

– Healthy organizational cultures - people are treated well and are inspired

Openness of available communication options

Friendliness and congeniality


Core Cultural Characteristics


Strength of Organizational Culture

Strong culture - exerts a major influence on the behavior of individuals in the organizations– Values are held intensely and shared widely

Weak culture - has a limited impact on the way people behave

Stronger organizational cultures are more common in smaller, newer organizations


Organizational Culture: One or Many?

Subcultures - cultures existing within parts of organizations rather than entirely throughout them

Dominant Culture - the distinctive, overarching “personality” of an organization , which reflects its core values– Reflects core values


The Role of Organizational Culture

Cultures serve the following vital functions:Provide a sense of identity for membersGenerate commitment to the organization’s

missionClarify and reinforce standards of behavior


The Role of Organizational Culture

Organizational Culture: • Provides a sense of identity for members • Enhances commitment to the organization’s mission • Clarifies and reinforces standards of behavior


The Competing Values Framework

Competing values framework ― cultures of organizations differ with respect to two sets of opposite values

1. Flexibility and discretion as opposed to stability, order, and control

2. Attention to internal affairs as opposed to what’s going on in the external environment


The Competing Values Framework

Four unique types of organizational culture:

1. Hierarchy culture ― internal focus, stability, and control

2. Market culture ― stability and control, but external in their orientation culture

3. Clan culture ― strong internal focus with high degrees of flexibility and discretion

4. Adhocracy culture ― flexibility yet attending to the external environment


Creating Organizational Culture

Two key factors:1. Company founders

2. Experiences with the external environment Organizational memory – information from an

organization’s history that its leaders draw upon later as needed


Founders and Organizational Culture

Development of Organizational Culture:

Step 1: Founder has idea for new business

Step 2: Founder brings in others who share his or her version of the business

Step 3: Members of this group act in concert to develop the business

Step 4: As the business grows, others are told about the company’s vision and its beginnings


Transmitting Organizational Culture Symbols ― material objects that connote meanings

that extend beyond their intrinsic content Slogans – send messages about the cultures of the

organizations that use them Jargon - the special language that defines a culture Ceremonies ― special events that commemorate

corporate values Stories ― illustrate key aspects of an organization’s

culture; telling them can effectively introduce those values to employees

Statements of principle ― define culture in writing


Slogans and Organizational Culture


Stories and Organizational Culture

New employees at Nike are told stories that transmit the company’s underlying cultural values. The themes of some of the most important ones are summarized here, along with several of the ways the company helps keep its heritage alive.

New employees are told the following…• Founder Phil Knight was a middle-distance runner who started the business by selling

shoes out of his car.• Knight’s running coach and company cofounder, Bill Bowerman, developed the

famous “waffle sole” by pouring rubber into the family waffle iron.• The late Steve Prefontaine, coached by Bowerman, battled to make running a

professional sport and was committed to helping athletes.

To ensure that these tales of Nike’s heritage are kept alive, the company…• Takes new hires to the track where Bowerman coached and the site of Prefontaine’s

fatal car crash.• Has created a “heritage wall” in its Eugene, Oregon, store. • Requires salespeople to tell the Nike story to employees of the retail stores that sell

its products.


How Culture Changes

Composition of the workforceMergers and acquisitions

Culture clashes ― merger of two organizations with incompatible cultures

Strategic organizational change Responding to the Internet


Creativity is the process by which individuals or teams produce novel and useful ideas

Components of individual and team creativity include:Domain-relevant skills - the capacity to perform

a given taskCreativity-relevant skills - the capacity to

approach things in novel ways Intrinsic task motivation - the motivation to do

work because it is interesting, engaging, or positively challenging

Creativity


Components of Creativity

Creativity:• Skills in the task domain • Skills in creative thinking • Intrinsic task motivation


Creativity-relevant skills ― special skills that foster creativityBreak mental sets and take new perspectives

Divergent thinking ― process of reframing familiar problems in unique ways

Understand complexitiesKeep options open and avoid premature

judgmentsFollow creativity heuristics ― strategies that

help approach tasks in novel waysUse productive forgetting ― ability to abandon

unproductive ideas and temporarily put aside stubborn problems until new approaches can be considered

Creativity-Relevant Skills


Triggering Divergent ThinkingTo encourage divergent thinking, exercises often are conducted in which people are asked open-ended questions to which there are no correct answers. Responses are free to fall outside normal ways of thinking. The following are typical examples: • List various uses for hat other than wearing it• Make as many sentences as you can that include the following words: melon,

consider, flower, paper. • How could you turn a cardboard box into a temporary tent for use on a camping trip in

the woods? • Think carefully about a stone. Then indicate what you believe to be its hidden

meanings. • If you were going to host a party for a group of elves, what would you serve (in

additon to those cookies they make)? • Your car is stuck in a ditch along a deserted road and you do not have a cell phone.

Using only the things likely to be found around the car, how could you summon help?


A Model of the Creative Process

Step 1: Prepare to be creative

Step 2: Allow idea to incubate

Step 3: Document insight

Step 4: Verify ideas


Training People to be Creative

Think outside the boxEncourage openness to experienceSend employees on thinking expeditions

Set creative goals


Developing Creative Environments

Ensure autonomyProvide exposure to other creative

peopleAllow ideas to cross-pollinateMake jobs intrinsically interestingSet your own creative goalsSupport creativity at high organizational

levels


InnovationInnovation - the successful

implementation of creative ideas within an organization

Building blocks:Motivation to innovateResources to innovateInnovation management

GoalsRewardsTime Pressure


Five Most Innovative Companies


Major Forms of Innovation Impact on existing business

– Sustaining innovation – the “better mousetrap”– Disruptive innovation – completely changes the market

Degree of uncertainty– Incremental innovation – slow and steady approach to

innovation– Radical innovation – quantum leaps in innovation

Source of innovation – Manufacturer innovation – occurs when an individual or

organization develops an innovation for the purpose of selling it– End-user innovation – involves getting inspiration from users

of goods or services


Targets of Innovation Product innovation – introducing goods that are new

or substantially improved Service innovation – introducing services that are new

or substantially improved Process innovation – creating new or significantly

improved production or delivery methods Marketing innovation – coming up with new and/or

improved marketing methods Supply chain innovation – developing quicker and

more accurate ways to get products from suppliers into the hands of customers

Business model innovation - revising how business is done

Organizational innovation – changing key organizational practices


The Process of Innovation Stage 1: Setting the agenda

– Creating a mission statement - provides overall direction and general goals

Stage 2: Setting the stage– Using skills for innovation management– Full use of human and financial resources

Stage 3: Producing the ideas– Individual and small group creativity– Coming up with new ideas and testing them

Stage 4: Testing and implementing the ideas– Other parts of the organization get involved

Stage 5: Outcome assessment– Assessing the new idea

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