Chapter 14 Flashcards
What defines organisational culture?
Organisational culture refers to the values and assumptions shared within an organisation. It influences how employees think, behave, and work together.
organizational culture
the values, norms, and assumptions shared among organizational members
Organizational culture norms are..
informal rules, and shared expectations of employee behavior. These are translated into more specific behavioral guidelines.
eg: A company with a strong performance culture might have norms that encourage working long hours and being persistent in achieving goals.
On top of the iceberg (artifacts of organizational culture) is physical structures, languages, rituals and ceremonies, storeis and legends.
What is on the bottom of the iceberg?
Shared values and norms
* Stable, conscious,
prescriptive beliefs.
* Guide decision/behavior
preferences.
* Informal rules, shared
expectations of behavior.
Shared assumptions
* Nonconscious, taken
for-granted beliefs.
* Ideal prototypes of
behavior
What are values in organisational culture?
Values are stable, evaluative beliefs that guide preferences for outcomes or actions. They reflect perceptions of what is good or bad in various situations.
What are shared values in an organisation?
Shared values are common values held by people within an organisation or work unit, placed at the top of their value hierarchy
What are espoused values?
Espoused values are the values corporate leaders hope will shape the culture. These are often socially desirable values that guide organizational decisions and actions.
If the top management acts consistently with the espoused values
lower-level employees might not do so
By what values is an organization’s culture defined?
By enacted values
What are enacted values?
Enacted values are the values that actually guide and influence decisions and behavior within the organisation. They are the values in action.
What are assumptions in organisational culture?
Assumptions are unconscious, taken-for-granted beliefs about how to deal with and think about problems and opportunities.
What are shared assumptions in an organisation?
Shared assumptions are nonconscious, taken-for-granted perceptions or prototypes of behavior considered the correct way to approach problems and opportunities.
ORGANIZATIONAL CULTURE DIMENSION
- Innovation: Experimenting, opportunity seeking, risk taking, few
rules, low cautiousness - Stability: Predictability, security, rule-oriented
- Respect for people: Fairness, tolerance
- Outcome orientation: Action-oriented, high expectations, results-oriented
- Attention to detail: Precise, analytic
- Team orientation: Collaboration, people-oriented
- Aggressiveness: Competitive, low emphasis on social responsibility
What is a limitation of organisational culture models?
These models often oversimplify cultural diversity, ignore shared assumptions aspect of culture, and incorrectly assume that an organisation has a clear, unified culture.
Why does it happen that they ignore shared assumptions aspect of culture?
Because measuring shared assumptions is even more difficult than measuring shared values and norms
What is a dominant culture in an organisation?
Dominant culture consists of the values and assumptions shared most consistently by the organisation’s members, usually supported by senior management (not always).
What are subcultures within an organisation?
Subcultures are groups within an organisation that have different values or experiences from the dominant culture but still fit with the broader organisational culture. They can either enhance or differ from the dominant culture.
What are countercultures?
Countercultures are subcultures that directly oppose the dominant culture. It can also be that they might have no identifiable dominant culture.
What are the functions of subcultures in an organisation?
- Subcultures maintain performance and ethical standards. Subcultures potentially support ethical conduct by preventing employees from blindly following one set of values
- They encourage constructive conflict and creative thinking for interaction with stakeholders and evolution.
If subcultures are suppressed, the organization….
may take longer to discover, develop and adopt the emerging desired culture
artifacts
the observable symbols and signs of an organization’s culture
Difference between culture and artifacts
Culture is cognitive
- values, norms, assumptions reside inside people’s heads
Artifacts are observable manifestations of that culture
Types of cultural artifacts:
- organizational stories and legends
- Organizational language
- rituals and ceremonies
- physical structures and symbols
Organisational stories and legends
Serve as social prescriptions, showing how things should be done, and produce emotions that enhance memory.
Organizational stories and legends are narratives about a company’s past, often involving its founders or key events, which shape its culture. These tales communicate values, reinforce behaviors, and create emotional connections that enhance the retention of lessons.
Organizational language
Custom phrases and labels unique to the company that capture cultural values.
Organizational language reflects a company’s culture through the words and phrases employees use, which reveal shared values and norms. Customized terms, like “village” at DaVita or “teammates,” shape how employees view relationships, while less favorable language, like “elephant trades” at Goldman Sachs, can highlight negative cultural traits.
rituals
the programmed routines of
daily organizational life that
dramatize the organization’s
culture
ceremonies
planned displays of organizational culture, conducted specifically for the benefit of an audience
Rituals and ceremonies
Rituals are repetitive, everyday routines that reflect an organization’s culture, like how employees interact or how quickly they move through spaces. Ceremonies, on the other hand, are formal, planned events designed to highlight key moments, such as celebrating achievements or rewarding employees.
Physical structures and symbols
The size, shape, and location of buildings that reinforce or alter cultural values.
Physical structures and symbols reflect and reinforce an organization’s culture through elements like office design, furniture, and layout. For instance, open, flexible spaces promote teamwork in creative cultures, while more structured, private offices emphasize individual work in competitive or control-focused cultures.
What defines a strong organizational culture?
A strong organizational culture is when employees widely understand and embrace the company’s core values, norms, and assumptions. These values are shared, internalized, and supported by well-established artifacts, leading to a long-lasting and consistent culture across the organization.
Under the right conditions, companies are more effective when they have strong cultures because of three important functions
- Control system: A form of social control influencing employee decisions and behavior.
- Social glue: Bonds people together and makes them feel part of the organisation.
- Sense-making: Helps employees understand what’s happening, why things happen, and what’s expected.
How does organizational culture function as a control system
Organizational culture acts as an embedded form of social control, subtly guiding employee behavior to align with company expectations. It operates like an automatic pilot, directing actions in a consistent direction, often described as a compass for the organization.
How does organizational culture act as “social glue”?
Organizational culture bonds employees together, fulfilling their need for social identity and creating a sense of belonging. It attracts new talent, retains top performers, and holds employees together, even in global organizations, acting as the invisible force that drives success.
How does organizational culture aid in sense-making?
Organizational culture helps employees understand what’s happening and why, clarifying expectations. In strong cultures, employees have clearer role perceptions, which reduces role-related stress.
Benefits of culture strenght depend on…..
- Culture content aligns with the external environment.
- Whether the culture is moderately strong (strong cultures can blind to new opportunities, cult).
- Whether the culture incoroprates an adaptive culture
adaptive culture
an organizational culture in
which employees are receptive
to change, including the
ongoing alignment of the
organization to its environment
and continuous improvement of
internal processes
learning orientation
a set of beliefs and norms in
which people are encouraged
to question past practices,
learn new ideas, experiment
putting ideas into practice, and
view mistakes as part of the
learning process
How does aligning culture content with the external environment impact an organization?
When an organization’s culture aligns with the external environment, employees are more motivated and have clearer role perceptions, leading to behaviors that improve interactions with stakeholders. Misalignment can undermine innovation and connection with the environment, as seen with Microsoft’s previous culture.
Why can very strong cultures be less effective than moderately strong cultures?
Very strong cultures, or corporate “cults,” can limit mental flexibility, suppress dissenting subcultures, and prevent the organization from adapting to new opportunities and problems. This reduces the ability to respond to changes in the environment.
What defines an adaptive organizational culture?
An adaptive culture embraces change, creativity, and learning, helping organizations remain flexible and responsive to external shifts. It encourages continuous improvement, innovation, and openness to change in both internal processes and employee roles
bicultural audit
a process of diagnosing cultural relations between companies and determining the extent to which cultural clashes will likely occur
How does culture influence ethical conduct?
Organisational cultures shape how employees behave ethically and influence their decision-making, as cultural norms guide actions.
What are the strategies for merging organisational cultures?
- Assimilation: The acquired company embraces the acquiring organisation’s culture.
- Deculturation: Stripping away artifacts that support the old culture (rarely works).
- Integration: Combining two cultures into a new composite culture.
- Separation: Keeping cultures distinct with minimal interaction.
assimilation works best when…
Acquired firm has a weak culture and acquiring firm’s culture
is strong and successful.
Deculturation works best when…
Rarely works—may be necessary only when acquired firm’s
culture is dysfunctional but its employees aren’t yet aware of
the problems.
Integration works best when…
Existing cultures at both firms are relatively weak or have overlapping values and can be improved.
Separation works best when….
Firms operate successfully in different businesses requiring
different cultures.
Strategies for Changing and Strengthening Organizational Culture
- Use attraction,selection, and socialization for culture “fit”
- Model desired culture through
the actions of founders and leaders - Align artifacts with the desired culture
- Introduce culturally consistent rewards/recognition
- Support workforce stability and communication
attraction–selection–attrition
(ASA) theory
a theory stating that organizations have a natural tendency to attract, select, and retain people with values and personality characteristics
consistent with the organization’s character, resulting in a more homogeneous organization and a stronger culture
How does “attraction” work in the ASA theory?
Job seekers naturally gravitate toward organizations with values similar to their own, often assessing company culture through interviews and public information.
What role does “selection” play in the ASA process?
Companies prioritize hiring candidates whose values align with their culture, often considering culture fit as important as skills and experience.
What is “attrition” in the ASA theory?
Employees who experience strong value misalignment with the company often leave voluntarily or are encouraged to leave, maintaining cultural consistency.
Why do some companies prefer “culture add” over “culture fit”?
“Culture add” emphasizes hiring individuals who bring diverse perspectives while still aligning with core values, avoiding homogeneity and fostering innovation.
How can organisational culture be promoted?
1.Actions of founders and leaders: 2. They shape core values and culture.
3. Align artifacts with desired culture.
4. Culturally consistent rewards/recognition.
5. Supporting workforce stability and communication.
6. Attraction, selection, and socialisation for cultural ‘fit’.
organizational socialization
the process by which individuals learn the values, expected behaviors, and social knowledge necessary to assume their roles in the organization
psychological contract
the individual’s beliefs about the terms and conditions of a reciprocal exchange agreement between that person and another party (typically an employer)
What’s the difference between transactional and relational contracts?
- Transactional contracts are short-term, narrowly defined exchanges with clear obligations.
- Relational contracts are long-term, broader exchanges that involve mutual obligations and expectations.
What are the stages of organisational socialisation?
- Pre-employment socialisation: Learning and adjusting before starting work.
- Encounter: Newcomers experience reality shock when pre-employment expectations don’t align with reality.
- Role management: Adapting to new roles within the company.
- Socialization outcome: Achieving effective integration into the company.
reality shock
the stress that results when
employees perceive discrepancies between their preemployment expectations and on-the-job reality
realistic job preview (RJP)
a method of improving organizational socialization in
which job applicants are given a balance of positive and negative information about the job and work context
