Lesson 12 Flashcards
What is an organizational culture?
system of shared assumptions, values and beliefs that show people what is appropriate and inappropriate behaviour
Why does organizational culture matter?
- strongest assets
- biggest liability
- to have a rare and hard to imitate culture benefit from it as a competitive advantage
Culture, and shared values in the organization lead to…
- increased performance
- effective control mechanism for dictating employee behaviour
There are 3 interrelated levels of organizational culture?
- artifacts
- values
- assumptions
What are assumptions?
taken for granted, reflect the beliefs about human nature and reality
What values?
shared principles, standards and goals
What are artifacts?
visible, tangible aspects of the culture (physical environment, employee interactions, company policies, reward systems)
What are the 7 dimensions of organization culture profile?
- innovative
- aggressive
- outcome-oriented
- stable
- people oriented
- team oriented
- detail oriented
Describe the innovative culture? (2)
- flexible, adaptable, experiment with new ideas
- flat hierarchy, titles and other status distinctions tend to be downplayed
Describe the aggressive culture? (3)
- value competitiveness and outperforming competitors
- may fall short in the area of corporate social responsibilities
- aggressive in language
Describe the outcome-oriented culture? (2)
- emphasize achievement, results and actions as important values
- hold employees as accountable for success and reward them
Describe the stable culture? (2)
- predictable, rule oriented
- coordinate and align individual effort for greatest levels of efficiency
Describe the people-oriented culture? (3)
- value fairness, supportiveness and respect for individual rights
- “people are the greatest asset”
- work is fun
Describe team oriented culture? (2)
- collaborate and emphasize cooperation among employees
- more positive relationships
Describe the detailed oriented culture? (2)
- emphasize precision and pay attention to details
- help with competitive advantage
Describe the service oriented culture? (2)
- employees are trained to serve customers well
- desire to solve customer related problems proactivly
Describe the safety culture? (1)
- competitive advantage, less accidents, maintain high moral and retention
What is defined as a strong culture?
- one that is shared by organizational members,
- affects the way employees think and behave
What is a limitation to a strong culture?
difficulty of changing them, unlearning the old values and learning the new values will be challenging (new way to think, behave, respond)
What is a subculture?
one where there are different departments, branches, or geographic locations which all have different cultures
What is a counter culture?
shared values and beliefs that are in direct opposition to the values of a broader organizational culture (shaped around a charismatic leader)
How are cultures created and maintained?
organizations culture is shaped as the organization faces external and internal challenges and learns how to deal with them
What is a companies culture tied to?
the personality, background and values of its founders, and the vision for the future
Why is culture so hard to change?
it is shaped in the early stages of the company when people start up their business
How do industry characteristics and demands play a role in corporate cultures?
act as a forcer to create similarities among the culture
How is organizational culture maintained?
attraction-selection-attrition (ASA)
How does the attraction-selection-attrition (ASA) work?
- employees are attracted to the organizations where they will fit in
- companies look for people that will fit in their organization
- there may be new people who do not fit in, they will leave the organization through attrition
What are 5 visual aspects of culture?
- mission statement
- rituals
- rules and policies
- physical layout
- stories
What is a mission statement?
statement of purpose, describing who the company is and what it does
What makes for an effective mission statement? (3)
- well known by all employees
- transmitted starting on first day of work
- influences employee behaviour
What is a problem with mission statements?
reflect who the company wants to be as opposed to who they actually are
What are rituals?
refer to repetitive activities within an organization that have symbolic meaning
What do rituals teach employees? (2)
- corporate values
- create identification
Why do companies create rules?
- to determine acceptable and unacceptable behaviour
- signal the companies values
What do stories tell about the culture?
the company’s history, its values and priorities, and serve the purpose of creating a bond between the new employee and the organization.
