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Chapter 15
organizational culture
| Question | Answer |
|---|---|
| organizational culture | system of shared values, norms, and assumptions that guide people’s attitudes and behavior and influences how they perceive and react to their environment |
| when a positive culture becomes strong enough | employee interactions become more efficient relationships improve, employees cooperate to achieve common goals |
| when culture supports business strategy | the firm can become high performing |
| Common organizational culture themes include | ethics, innovation, being casual or formal, and collaborations |
| Cultures are made up of | formal and informal practices espoused values and norms and assumptions |
| culture is the shared | values, norms, and assumptions that guide behaviors in an organization |
| artifacts | are the physical manifestations of the culture including open offices, awards, ceremonies, and formal lists of values |
| Observable artifacts - easily identified | Dress code Ceremonies, rituals and rewards Myths, stories, and Heroes |
| Espoused values and norms | the preferred values and norms explicitly states by the organization |
| example of espoused values and norms | ethical behavior |
| Enacted values and norms | values and norms that employees exhibit based on their observations of what actually goes on in the organization |
| examples of values and norms | if a companies top managers engage in illegal or unethical behavior |
| the difference between that espoused value an its enacted values | creates a gap that can negatively affect employee attitudes and company performance |
| help align espoused and enacted values and norms | performance management, feedback, and compensation systems |
| Assumptions | those organizational values that have become so taken for granted over time that they become the core of the company’s culture |
| formal practices that influence culture | compensation strategies like profit sharing, benefits, training and development programs, and even use of teleconferencing to enable some employees to work from home |
| informal practices | open-door management” to promote upward communication and the sharing of ideas, employees helping each other, and employees of different ranked eating lunch together to share ideas |
| does culture matter | culture matters to organizations because it influences employees’ discretionary behaviors, including what they do in situation when the rules and expectations are unclear or when there is no direct supervision |
| actively managing culture, your organization and its employees | will be more likely to deliver on strategic objectives over the long run |
| culture boosts organizational performance when it | is strategically relevant is strong emphasizes innovation and change to adapt to a changing environment |
| a company’s culture should | reinforce its business strategy and can give a firm competitive advantage |
| culture is a source of competitive advantage | creating culture that supports sharing and helping other employees can have positive performance results |
| organizational culture can be strong or weak | strong cultures clarify appropriate behavior, are widely shared, and are internally consistent |
| strong cultures can enhance organizational performance in two ways | they improve performance by energizing employees strong cultures improve performance by coordinating employee behavior |
| a strong positive culture promotes | employee commitment to the firm’s value system and helps to align employee and company values |
| in a strong negative culture | employees have shared norms and values that are not consistent with the organization wants or values, employee reactions to the a managers arrival would be |
| example of negative culture | "Heads up, the manager is coming - Look busy!” |
| example of positive culture | employees working together on a Saturday morning to plant trees in a local park as part of a community service campaign sponsored by their employer |
| strong cultures can... | create difficulty in its ability to evolve |
| a company with a weaker culture (but not too weak) | should be able to more quickly adapt to different circumstances |
| culture is like the glue that holds things together in an organization | if it is too weak, it does not effectively guide employees |
| long term financial performance is highest for organizations with | an adaptive culture receptive to change and innovation |
| understanding your corporate culture can create | a personal competitive advantage by reducing the chances of your offending superior or making a social blunder |
| organizational culture is influenced in part by industry | different industries have different organizational cultures |
| How Leaders Create and Maintain Culture 1 | develop a clear sense of mission and values about what the company should be, and communicate it to employees through what you pay attention to, measure, and control |
| 2 | select employees who can share, express, and reinforce the desired values in order to help build the desired culture |
| 3 | use daily routines and concrete actions and behaviors to demonstrate and exemplify appropriate values and beliefs |
| 4 | consistently role-model behaviors that reinforce the culture |
| 5 | make your HR management procedures and criteria consistent |
| 6 | communicate your priorities in the way that you reward employees |
| 7 | nurture traditions and rituals that express, define, and reinforce the culture |
| MANAGING ORGANIZATIONAL CULTURE | managers must first be fully aware of the culture’s values and what behaviors or actions those values support |
| easier + faster to | alter employee behavior than to change history, traditions, and values that already exist |
| managers must first be fully aware of | the culture’s values and what behaviors or actions those values support |
| socialization | the process through which individuals become social beings |
| organizational socialization | the process through which employees learn about the firms culture and pass their knowledge and understanding on to others |
| socialization programs do not necessarily change people's values | but make employees more aware of the differences between personal and organizational values and help develop ways to cope |
| new employees see in the behavior of experiences people | new employes develop a repertoire of stories they can use to guide their actions |
| not all firms have cultural values that are | consistent with high performance |
| if the firm has performance-reducing values | top managers should try to change their organizations culture |
| organizational culture resists change for all the reasons that it is a powerful influence on behavior | it embodies the firm's basic values, it is often take for granted, and it is typically the most effectively communicated through stories or symbols |
| when managers attempt to change organization culture | they are attempting to change people's basic assumptions about what is and isn't appropriate behavior |
| culture | system of shared values, norms, and assumptions that guide people’s attitudes and behavior |
| roles of subcultures | exert even a greater influence upon their members in terms of behavior than the dominant culture |
| difference between strong and weak cultures | strong culture exists when employees respond to stimuli because they are aligned with company values Weak Culture is when there is minimal congruence with organizational principles and control must be applied through complex procedures and bureaucracy |
| benefits of a strong culture | increased productivity improved employees' health and wellness reduced absenteeism and turnover rates increased customer satisfaction higher levels of innovation enhanced employee engagement and retention rates |
| how culture impacts the major human resource functions of organizations | organizational cultures where employee engagement is common, it is more likely to have higher employee satisfaction and encouragement than the ones that do not favor employee involvement |
| values | the regard that something is held to deserve; the importance, worth, or usefulness of something |
| why is it important for managers/leaders to consider employee values | Values help organizations determine a range of acceptable behaviors, defining for leaders and employees alike which actions are encouraged and which are unacceptable |
| the role of person-organizational fit in creating and sustaining an organization’s culture | influences important organizational outcomes including job performance, retention, job satisfaction, and organizational commitment |
| 6 cultural dimensions put forth by Hofestede | Individualism Power distance long/short term values Indulgence collectivism uncertainty avoidance |
| typical profile of USA on the 6 dimensions | ID/C - H P - M L/S - L U - H IN - |
| drawbacks of a strong culture | stifle innovation and adaptability unethical behavior |
| Individualism | exists to the extent that people in a culture define themselves primarily as individuals rather than as part of one or more groups or organizations. |
| Power distance | is the extent to which people accept as normal an unequal distribution of power. |
| long/short term values | include focusing on the future, working on projects that have a distant payoff, persistence, and thrift. |
| Indulgence | is free gratification of basic and natural human desires related to enjoying life and having fun. |
| collectivism | characterized by tight social frameworks in which people tend to base their identities on the group or organization to which they belong |
| uncertainty avoidance | which might also be called preference for stability, is the extent to which people feel threatened by unknown situations |
Created by:
szander