Chapter 15: Organizational Culture

radical innovation (sometimes called disruptive innovation)

a major breakthrough that changes or creates whole industries

organizational culture

a system of shared values, norms, and assumptions that guide members' attitudes and behaviors

four levels of culture

artifacts, assumptions, espoused values, and enacted values

passive conflict management norms

avoid addressing conflict

incremental innovation

continues the technical improvement and extends the applications of radical and systems innovations

systems innovation

creates a new functionality by assembling parts in new ways

4 types of conflict cultures

dominating, passive-agressive, collaborative, and avoidant

intrapreneurship

entrepreneurial activity that takes place within the context of a large organization

disagreeable conflict management norms

resolve conflict competitively

agreeable conflict management norms

resolve conflict in a cooperative manner

active conflict management norms

resolve conflict openly

conflict culture

shared norms for managing conflict

3 elements of managing organization culture

taking advantage of the existing culture, teaching the organizational culture, and changing the organization culture

culture of inclusion

the extent to which majority members value efforts to increase minority representation, and whether the qualifications and abilities of minority members are questioned

artifacts

the physical manifestation of the culture including open offices, awards, ceremonies, and formal lists of values

espoused values and norms

the preferred values and norms explicitly stated by the organization

innovation

the process of creating and doing new things that are introduced into the marketplace as products, processes, or services

organizational socialization

the process through which employees learn about the firm's culture and pass their knowledge and understanding on to others

socialization

the process through which individuals become social beings

assumptions

those organizational values that have become so taken for granted over time that they become the core of the company's culture

enacted values and norms

values and norms that employees exhibit based on their observations of what actually goes on in the organization