Chapter 11

Organizational Culture

Shared values and patterns of belief and behavior accepted and practiced by members of an organization.

Adaptive Cultures

Willingness to embrace change consistent with core values, emphasizing innovation and encouraging initiative.

Inert Cultures

Conservative cultures that maintain existing resources and resist change.

Cultural Strength

Characterized by deeply rooted values regulating firm behavior (strong culture) or lacking widely accepted values (weak culture).

Diversity

Extent of differences among individuals in an organization, with inconclusive links to firm performance.

Shaping the Culture

Complex process involving deliberate role modeling, strategic reactions to incidents, and modifying procedures to align with desired cultural attributes.

Global Concerns

Need to tailor organizational values and norms to fit unique cultures of countries where the organization operates.

Strategic Leadership

Involves creating vision, developing strategies, and empowering individuals to implement strategies beyond managerial leadership.

Leadership Style

Distinctive pattern of behavior when governing and making decisions, including transactional and transformational styles.

Transformational Leadership

Inspires involvement in a mission, associated with innovation and seeking dramatic changes in organizational performance.

Emotional Intelligence

Collection of psychological attributes like motivation and empathy, tied to a leader's likelihood of success.

Executing Strategic Change

A 3-step process involving recognizing the need for change, creating a shared vision, and institutionalizing the change with top management commitment.