Organizational Culture - Nantyr Shores
Study Question 4: What is organizational culture?
➢ Organizational culture is the system of shared beliefs and values that develops within an organization and guides the behavior of its members.
➢ Also called the ‘corporate culture’
➢ How to read an organization’s culture (SCORES)
S - How tight or loose is the structure?
C - Are decisions change oriented or driven by the status quo?
O - What outcomes or results are most highly valued?
R - What is the climate for risk-taking, innovation?
E - How widespread is empowerment, worker involvement?
S - What is the competitive style, internal and external?
➢ Strong cultures:
– Commit members to do things that are in the best interests of the organization.
– Discourage dysfunctional work behavior.
– Encourage functional work behavior.
➢ The best organizations have strong cultures that:
– Are performance-oriented.
– Emphasize teamwork.
– Allow for risk taking.
– Encourage innovation.
– Value the well-being of people.
– Examples: Honda, Westjet
➢ What is observable culture?
– What one sees and hears when walking around an organization.
➢ Elements of observable culture:
– Stories
– Heroes
– Rites and rituals
– Symbols
➢ What is the core culture?
– Underlying assumptions and beliefs that influence behavior and contribute to the observable culture.
– Deeper level, need to be part of organization to understand it
➢ Core culture and values:
– Strong cultures have a small but enduring set of core values.
– Commitment to core values is a key to long-term success.
➢ Important cultural values include:
– Performance excellence
– Innovation
– Social responsibility
– Integrity
– Worker involvement
– Customer service
– Teamwork
➢ Figure 4.4
➢ Value-based management:
– Describes managers who actively help to develop, communicate, and enact shared values.
– Manager has to be a ‘value champion’
– Criteria for evaluating core values:
➢ Relevance – support key performance objectives
➢ Integrity – provide clear ethical anchors
➢ Pervasiveness – be understood by all members
➢ Strength – accepted by everyone involved
➢ Symbolic leadership
– Symbolic leaders use symbols well to establish and maintain a desired organizational culture.
– Symbolic leaders act and talk the ‘language’ of the organization.
– Symbolic leaders:
➢ Use language metaphors – positive examples.
➢ Highlight and dramatize core values and observable culture.
➢ Use rites and rituals to glorify performance, remind everyone about company heroes, talk about the founders
➢ Examples: Disney World, Mary Kay
Figure 4.4 Levels of organizational culture—observable culture and core culture
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