Organizational Culture Lecture Notes

These vocabulary flashcards cover the key concepts of organizational culture, case studies of the Taj Mumbai and Nordstrom, and the three pillars of building and auditing culture as discussed in the lecture.

Organizational Culture

The simplest definition is 'the way we do things around here,' which acts as a substitute for formal rules, regulations, and policies.

Informal Leaders

People who step up into leadership roles during situations of ambiguity even if they are not formally designated as leaders by the organization.

26/11 Terrorist Attack

The 2008 attack in which 10 different sites in India were targeted, including the iconic Taj Mahal Palace Hotel in Mumbai.

The Kitchen Brigade (Taj Mumbai)

The group of chefs who formed a human chain to escort guests through fire exits during the 2008 terrorist attack; several lost their lives protecting guests.

Strategy-Culture Alignment

The principle that culture must support the organization's strategy (how the company competes), rather than vice-versa.

Recruitment and Selection (Pillar of Culture)

The first of three focus areas for building culture; at the Taj, this involved recruiting from smaller cities based on values and character rather than just test scores.

Training and Development (Pillar of Culture)

The second focus area for culture; includes socialization processes like the Taj's 18-month program where managers ask, 'What did you see, and what did you learn?'

Reward Systems (Pillar of Culture)

The third focus area for culture; involves signaling which behaviors are valued through promotions, raises, or timely personal feedback.

The Star System

The Taj reward system for non-managers where points are awarded by guests, fellow employees, or managers for going above and beyond the call of duty.

Visible Artifacts

In Ed Schein’s model, these are observable cultural aspects like dress code, architecture, furniture, and formal policies.

Espoused Beliefs

The values an organization claims to care about, typically found on websites, mission statements, and core value lists on the walls.

Underlying Values

The unspoken or unwritten rules about how an organization truly works and what it prioritizes, regardless of what is officially stated.

Strong Culture

A state where artifacts, espoused values, and underlying assumptions are in alignment and values are intensely held across the organization.

Nordstrom's One Rule

The historic employee handbook guideline that stated: 'Use good judgment in all situations.'

Agency Problem

The challenge of getting an employee to care about a business as if they owned it; addressed at Nordstrom through high levels of empowerment.

The 20/60/20 Boat Analogy

A management concept where 20% of people are superstars (front), 60% are the 'middle' who need support, and 20% (back) are actively hindering the organization.

Culture Audit

A structured process of describing current culture, identifying an ideal culture, and addressing the 'gaps' that most affect performance or results.

Sphere of Influence

The specific area, such as a team or department, where an individual has the power to modify or cultivate culture even if they don't control the whole organization.