MGMT1110 - Topic 4 (Organizational Culture)

Organizational Culture

Shared values within organization that influence the way organizational members act.

Organizational Culture Profile (OCP)

How each member percieves organizational values, how “shared” these perceptions are, and how much they align with the culture.

Dimensions of Organizational Culture Profile

• Innovation and Risk Taking

• Attention to Detail (degree of precision and analysis)

• Outcome Orientation (result vs process)

• People Orientation (effect on people)

• Team Orientation

• Aggressiveness

• Stability and Predictability (rule-oriented)

Person-organization fit

Level of congruence between values of organizational culture and individual values.

Benefits of cultural fit/person-organization fit

• Higher job satisfaction

• Better performance eval

• Lower likelihood of turnover

Artifacts

The visible, tangible manifestations of an organizational culture, such as office layout, symbols, vocabulary, and rituals.

Norms

The appropriate behaviors and attitudes that embody an organization's values.

Stories

Narratives of past events about an organization's founders, reactions to mistakes, or employee heroics that express and reinforce cultural values.

Rituals

Repetitive sequences of activities that express and reinforce the important values and goals of an organization.

Organizational Language

The unique terms used by an organization to describe key personnel, customers, processes, or products.

Material Artifacts

Physical elements such as office design, décor, and dress code that reflect an organization's culture.

Innovation and Risk Taking

A cultural dimension measuring the degree to which employees are encouraged to experiment with new ideas.

Attention to Detail

A cultural dimension measuring the degree to which employees are expected to exhibit precision, analysis, and attention to details.

Outcome Orientation

A cultural dimension measuring the degree to which managers focus on results rather than the processes used to achieve them.

People Orientation

A cultural dimension measuring the degree to which management decisions take into account their effects on people in the organization.

Team Orientation

A cultural dimension measuring the degree to which work is organized around teams rather than individuals.

Aggressiveness

A cultural dimension measuring the degree to which employees are aggressive and competitive.

Stability and Predictability

A cultural dimension measuring the degree to which an organization is predictable, rule-oriented, and bureaucratic.

Founder Influence

The significant impact an organization's founder has on its initial culture through their vision, hiring, practices, and role modeling.

Attraction-Selection-Attrition (ASA) Framework

A theory explaining how organizational culture is maintained through attracting, selecting, and retaining people who fit the culture.

Socialization

The process by which newcomers learn an organization's culture.

Culture Change

The process of modifying an organization's shared values and behaviors.

Unfreeze-Change-Refreeze Model

A three-step model for managing change:

• unfreezing the current state (convince organization change is needed, establish what is wrong)

• change the state (establish buy-in of change, implement, appoint people supporting, achieve small wins to persuade)

• refreeze (hold state, let people get used to it)

Kotter's Change Model

An eight-step process for leading successful organizational change.

• Establish Urgency

• Form powerful guiding coalition

• Create vision (directing change)

• Communicate the vision (& strategies to act)

• Empower others to act on vision (remove barriers)

• Plan for, create short-term wins

• Consolidate improvements and produce more change

• Institutionalise new changes

Leadership Tools (for change)

Methods such as vision, persuasion, and role modeling used to initiate cultural change.

Management Tools (for change)

Methods such as organizational structure, control systems, and incentives used to implement and support cultural change.

Power Tools (for change)

Methods such as coercion, threats, and punishment, used sparingly to enforce change when other methods fail.

Rigidity (Cultural)

A downside of strong culture where it becomes an impediment to organizational adaptation and innovation.

Cultural Incompatibility

A lack of alignment between the cultures of two organizations, often leading to issues during mergers and acquisitions.