Chapter 2 Organizational Culture

Organizational Culture

Shared assumptions, beliefs, and expectations guiding behavior in organizations.

Cultural Norms

Socially created standards of behavior.

Socialization

Process of learning organizational values and behaviors (formal or informal).

Cultural Fit

Alignment between individual and organizational values.

Subcultures

Unique but consistent with main culture.

Countercultures

Reject or oppose main organizational values.

Layers of Culture

Observable artifacts (logos, rituals, jargon), Shared values (beliefs, norms, mission, vision), Core values (deep assumptions, taken-for-granted truths)

Symbols

Objects, acts, or events that convey cultural meaning.

Rites and Rituals

Standardized activities that reinforce culture.

Strong vs. Weak Cultures

Strong = clear identity & unity; Weak = confusion & disagreement.

Espoused vs. Enacted Values

Espoused = stated values; Enacted = lived values.

Toxic Cultures

Dysfunctional, hostile, or abusive. Hustle culture, Blame culture, Clique culture, Authoritarian culture, Fear climate.

High-Performance Culture

Positive, values-driven, promotes well-being and performance.

Cultural Profile

Tool to understand and manage culture.

Organizational Strategy

Plan for achieving goals through resource allocation.

MBO (Management-by-Objectives)

Aligning employee goals with organizational objectives.

Strategic Planning

Process of defining direction and allocating resources.

Strategic Thinking (ST)

Future-oriented, innovative decision-making process.

Organizational Change

Modifying strategy, structure, or culture.

Adaptability

 Flexibility in adjusting to changes.

Agility

Ability to succeed in turbulent environments.

Dynamic Capability

Speed and responsiveness to change.

Stable Operating Core

Reliable foundation for consistency and productivity.

Burnout

Exhaustion from prolonged stress.

Org Chart

Diagram of reporting relationships.

Centralization

Decision-making concentrated at the top.

Decentralization

Decision-making distributed to lower levels.

Departmentalization

Grouping work units by function, division, or project.

Matrix Structure

Hybrid of functional and divisional structures.

Mechanistic Design

Bureaucratic, rule-heavy structure.

Organic Design

Flexible, adaptive structure.

Scrum

Agile framework for team-based work cycles.

Agile Design

Iterative, adaptive organizational model.

Holacracy

Decentralized, role-based organizational system.

Convergent Thinking

Narrowing to one solution.

Divergent Thinking

Expanding to many solutions.

Design Thinking

Structured creative problem-solving.

Incremental Innovation

Small improvements.

Radical Innovation

Major breakthroughs.

Disruptive Innovation

Industry-transforming changes.