Organizational Culture

4 Outcomes Associated with Organizational Culture

1) Employees are more satisfied and committed to organizations with Clan cultures 2) Innovation and quality can be increased by building Clan, Adhocracy, and Market cultures 3) Financial performance is NOT strongly related to organizational culture 4) Market cultures tend to have more positive organizational outcomes

What are the 5 elements that drive Organizational Culture? (acronym)

1) Founder's values 2) Industry and business environment 3) National culture 4) Organization's vision and strategies 5) Behavior of leaders **FINOB

Define organizational culture, and describe the four important characteristics of organizational cultures. (acronym)

Organizational culture is the set of shared, taken-for-granted implicit assumptions that a group holds and that determines how it perceives, thinks about, and reacts to its various environments. 4 Characteristics: 1) Shared concept (beliefs/values are shared among a group of people) 2) Learned over time (passed on to new employees through the process of socialization and mentoring) 3) Influences our behavior at work (culture > strategy any day) 4) Impacts outcomes at multiple levels (Culture affects outcomes at the individual, group/team, and organizational levels) **SLII (like "sly")

Identify and describe three levels of organizational culture.

Organizational culture operates on three levels: (1) Observable Artifacts (the physical manifestation of an organization's culture; artifacts are easier to change than less visible aspects of organizational culture) (2) Espoused Values (abstract ideas that guide one's behavior across all situations; recognize the difference between Espoused values (values explicitly stated by the organization) and Enacted values (values actually lived out by employees)) (3) Basic Underlying Assumptions (deep seated beliefs employees have about their company that constitute the core of org. culture)

Organizational Socialization Process (AEC )

Organizational socialization turns outsiders into fully functioning insiders by promoting and reinforcing the organization's core values and beliefs. Feldman's three-step model of organizational socialization: 1. Anticipatory socialization (expectations employees have before joining an org.) 2. Encounter (when employees learn what the org. is really like; orientation/training programs called onboarding) 3. Change and acquisition (when employees adjust to their work group's values/norms) **AEC

ESSAY: Kindy Electronics outperformed the general market for over 15 years, but was suddenly forced to liquidate. The collapse was mainly due to not making strategic changes to its corporate culture. How can management evaluate the status of corporate culture? How can they implement change to this culture, as needed? (acronym)

The competing values framework (CVF) provides a practical way for managers to understand, measure, and change organizational culture. Two Fundamental Axis: 1) Internally focused on employees vs. externally focused on shareholders 2) Concern for flexibility/discretion vs. control/stability These Axis Create 4 Combinations: 1) Hierarchy (focused on internal and stable/control) 2) Adhocracy (focused on external and flexible) 3) Market (focused on external and stability/control) - can promote dishonesty and an unpleasant work environment 4) Clan Cultures (focused on internal and flexible) - Can lead to a lack of diversity and dissent **HAM-Clan