CHAPTER 5 Flashcards
Formal Organization
This refers to the official, hierarchical structure of an organization. It includes defined roles, responsibilities, and communication channels. For example, in a corporation, the CEO is at the top of the hierarchy, followed by other executives, managers, and employees. This is often referred to as being “above the waterline” as it is visible and well-defined.
Informal Organization
These are aspects of an organization that are not officially defined. They include networks, friendships, rivalries, gossip, and norms of behavior. For instance, employees may form informal groups based on shared interests or projects, which can greatly influence how work is accomplished. This is often referred to as being “below the waterline” as it is less visible and more fluid
Organizational Culture
This refers to the pattern of beliefs, values, and learned ways of coping with experience that have developed during the course of an organization’s history. It is often manifested in its material arrangements and in the behaviors of its members. For example, a company might have a culture that encourages innovation and risk-taking, or one that values stability and adherence to established procedures.
Outcome of Organizational Culture
Organizational culture can establish consistency in employees’ thinking and give rise to behavior patterns. For instance, in a culture that values openness and transparency, employees might be more likely to share their ideas and concerns. Conversely, in a culture that discourages dissent, employees might be more likely to keep their thoughts to themselves.
Culture has three effects on strategic planning
- Culture acts as filter influencing perceptions of internal&external environment of the organization.
2.Culture influences formation of strategic plans.
3.Culture influences the implementation of plans and their consequent feasibility.
❖ Main implication: culture may discourage radical change, particularly when it is second-order change. Culture tends to foster first-order change in which meanings are not altered by transition.
Aspects of culture
❖ Artefacts = observable features such as objects, structures, and patterns of behavior that typify an organization → outer layer of culture.
❖ Second level is twofold:
- Symbols = particular established meanings associated
with certain artefacts.
- Shared values = goals and standards to which employees
aspire. Values are part of an organizational culture only if
they are shared (held in common by staff).
- Shared beliefs = views regarded as true by many staff
(they underpin shared values). Can be ethical or pragmatic. - Sometimes, values can be recognized from way in which staff behave:
- Values-in-use = values are reflected in staff behavior.
- Espoused values = organization proclaims shared values via internal documents, posters…
These can reflect actual values but also can be completely different.
❖ Assumptions = beliefs and values-about work, organizations, relationships, people, etc… that become so
ingrained that they are often unrecognized.
Schein’s model
organizational culture has three strata: artefacts; values and beliefs; and assumptions.
Culture in the form of artefacts = directly observable → above the waterline of the iceberg. They can,
however, be hard to assess in terms of their significance for way in which events are interpreted.
- Culture in the form of shared values in beliefs = harder to discern → just under the surface of the
water. But it’s easier to see how they influence the way in which events are interpreted.
- Culture in the form of assumptions = generally hidden → deep under the water. But they largely
determine values & beliefs so there is interaction between the layers of culture.
Cultural dynamics model
The Cultural Dynamics Model explains how different aspects of culture interact with each other. It suggests that assumptions about behavior can lead to the creation of certain values, which in turn manifest as observable artifacts. These artifacts can become symbols that reinforce the original assumptions. However, change is possible, and the same artifacts can take on new symbolic meanings that shift the culture in different directions.
Example: Consider an organization where the assumption is that employees avoid hard work when they can. This assumption might lead to the value of close monitoring, which could manifest as time clocks (artifacts). Over time, these time clocks could become symbols of distrust, reinforcing the original assumption. However, change is also possible. For instance, open-plan offices, initially seen as symbols of distrust, could become symbols of fun at work or productive interaction, shifting the culture in a more positive direction
values->artifacts->symbols->assumptions->values
Strategy core value
value that is central to the success of the strategy. It is so integral that if it is not upheld, it can derail change within the organization.
Example: If an organization’s strategy is based on innovation, a core value might be creativity. If creativity is not fostered and encouraged, the strategy could fail because new and innovative ideas are not being generated.
peripheral value
a value that would be helpful to the success of the strategy, but is of relatively minor importance. It is less likely to derail change if not upheld.
Example: In the same organization that values innovation, a peripheral value might be punctuality. While it’s beneficial for employees to be on time, it’s not as crucial to the overall strategy of innovation.
Subculture
A subculture is a set of values, beliefs, symbols, and assumptions that differ from those of other employees within the same organization. Subcultures often form in groups or sections within the organization.
Example: In a large organization, the marketing department might develop a subculture that values creativity and risk-taking, while the accounting department might develop a subculture that values precision and consistency
Integration Point of View on Organizational Culture
The integration point of view on organizational culture focuses on the commonality of values, symbols, and other cultural elements across the organization. It tends to ignore or treat subcultural differences as irregularities to be eliminated.
Example: A company that promotes a strong, unified culture of customer service excellence, regardless of department or role, is demonstrating an integration point of view.
Differentiation
Differentiation focuses on consistency within subcultures and subcultural dynamics. It recognizes and values the unique characteristics and contributions of each subculture within the organization.
Example: A company that encourages each department to develop its own best practices and traditions, while still aligning with the overall company values, is demonstrating differentiation.
Fragmentation
Fragmentation recognizes that the same event might be interpreted in contradictory ways even within a single subculture or by a single person. It acknowledges the complexity and diversity of interpretations and responses within an organization.
Example: In a company undergoing a major transition, some employees might view the change as a positive opportunity for growth, while others might see it as a threat or disruption. This diversity of responses represents fragmentation.
Organizational agility
Organizational agility is the extent to which an organization maintains the capability to change rapidly. This can involve proactively spotting and addressing threats and opportunities, rapidly redeploying people as priorities require, spontaneous collaboration to pool resources for quick results, innovating, and rapid and continuous learning.
Example: A retail company that quickly adapts to changing consumer trends, rapidly shifts resources to high-demand products, and continuously learns from market data to improve its strategies demonstrates high organizational agility.
