Organizational culture - Wikipedia, the free encyclopedia. Organizational culture encompasses values and behaviours that . Rosauer (2. 01. 3) developed what he refers to as an actionable definition of organizational culture: . Ingredient #1 - Employee (focus on engagement) #2 The Work (focus on eliminating waste increasing value) waste #3 The Customer (focus on likelihood of referral). Organizational culture encompasses values and behaviours that 'contribute to the unique social and psychological environment of an organization.' According to Needle (2004), organizational culture represents the collective. The purpose of the Three Bell Curves methodology is to bring leadership, their employees, the work and the customer together for focus without distraction, leading to an improvement in culture and brand. Reliance of the research and findings of Sirota Survey Intelligence. Thus, organizational culture affects the way people and groups interact with each other, with clients, and with stakeholders. In addition, organizational culture may affect how much employees identify with an organization. In business, terms such as corporate culture and company culture are sometimes used to refer to a similar concept. The term corporate culture became widely known in the business world in the late 1. Culture is basic, with personal experience producing a variety of perspectives. The final article in this chapter points out personal leadership traits to develop in order to help your organi-zation develop a positive culture and deal with change. In “The Twenty-First Century Leader: Social Artist. The World Bank represents a particularly difficult case of organizational culture change. Its formal goal—development—is ambiguous. The institution itself is a peculiar mix of a philanthropic foundation. In such environments, strong cultures help firms operate like well- oiled machines, engaging in outstanding execution with only minor adjustments to existing procedures as needed. Conversely, there is weak culture where there is little alignment with organizational values, and control must be exercised through extensive procedures and bureaucracy. Research shows. Organizations may derive the following benefits from developing strong and productive cultures: Better aligning the company towards achieving its vision, mission, and goals. High employee motivation and loyalty. Increased team cohesiveness among the company's various departments and divisions. Promoting consistency and encouraging coordination and control within the company. Shaping employee behavior at work, enabling the organization to be more efficient.
Where culture is strong, people do things because they believe it is the right thing to do, and there is a risk of another phenomenon, groupthink. This is a state in which even if they have different ideas, they do not challenge organizational thinking, and therefore there is a reduced capacity for innovative thoughts. This could occur, for example, where there is heavy reliance on a central charismatic figure in the organization, or where there is an evangelical belief in the organization's values, or also in groups where a friendly climate is at the base of their identity (avoidance of conflict). In fact, groupthink is very common and happens all the time, in almost every group. Members that are defiant are often turned down or seen as a negative influence by the rest of the group because they bring conflict. Healthy. It has to develop from the hearts (and minds) of the founders. A variety of characteristics describe a healthy culture, including: Acceptance and appreciation for diversity. Regard for and fair treatment of each employee as well as respect for each employee's contribution to the company. Employee pride and enthusiasm for the organization and the work performed. Equal opportunity for each employee to realize their full potential within the company. Strong communication with all employees regarding policies and company issues. Strong company leaders with a strong sense of direction and purpose. Ability to compete in industry innovation and customer service, as well as price. Lower than average turnover rates (perpetuated by a healthy culture)Investment in learning, training, and employee knowledge. Additionally, performance oriented cultures have been shown to possess statistically better financial growth. Such cultures possess high employee involvement, strong internal communications and an acceptance and encouragement of a healthy level of risk- taking in order to achieve innovation. Additionally, organizational cultures that explicitly emphasize factors related to the demands placed on them by industry technology and growth will be better performers in their industries. According to Kotter and Heskett (1. An adaptive culture translates into organizational success; it is characterized by managers paying close attention to all of their constituencies, especially customers, initiating change when needed, and taking risks. An unadaptive culture can significantly reduce a firm's effectiveness, disabling the firm from pursuing all its competitive/operational options. Management of culture. Several different kinds of rites affect organizational culture. Rites of passage: employees move into new roles. Rites of degradation: employees have power taken away from them. Rites of enhancement: public recognition for an employee's accomplishments. Rites of renewal: improve existing social structures. Rites of conflict reduction: resolve arguments between certain members or groups. Rites of integration: reawaken feelings of membership in the organization. Reflexive comments are explanations, justifications, and criticisms of our own actions. This includes. Plans: comments about anticipated actions. Commentaries: comments about action in the present. Accounts: comments about an action or event that has already occurred. Such comments reveal interpretive meanings held by the speaker as well as the social rules they follow. Fantasy Themes are common creative interpretations of events that reflect beliefs, values, and goals of the organization. They lead to rhetorical visions, or views of the organization and its environment held by organization members. Bullying culture. Furthermore, new managers will quickly come to view this form of behaviour as acceptable and normal if they see others get away with it and are even rewarded for it. That people may be bullied irrespective of their organisational status or rank, including senior managers, indicates the possibility of a negative ripple effect, where bullying may be cascaded downwards as the targeted supervisors might offload their own aggression on their subordinates. In such situations, a bullying scenario in the boardroom may actually threaten the productivity of the entire organisation. An authoritarian style of leadership may create a climate of fear, where there is little or no room for dialogue and where complaining may be considered futile. Rayner explained these figures by pointing to the presence of a climate of fear in which employees considered reporting to be unsafe, where bullies had . They identify five basic stages. Field data were collected by interviewing Western expatriates and Chinese professionals working in this context, supplemented by non- participant observation and documentary data. The data were then analyzed objectively to formulate theme- based substantive theories and a formal theory. The major finding of this study is that the human cognition contains three components, or three broad types of . The three cognitive components are different in terms of the scope and duration of their mutual shaping of behavior. Values are universal and enduring rules of behavior; Expectations, on the other hand, are context- specific behavioral rules; while Ad Hoc Rules are improvised rules of behavior that the human mind devises contingent upon a particular occasion. Furthermore, they need not be consistent, and frequently are not, among themselves. Metaphorically, they can be compared to a multi- carriage train, which allows for the relative lateral movements by individual carriages so as to accommodate bumps and turns in the tracks. In fact, they provide a . It also provides a powerful framework which explains how interactions by individuals in SW- ICCM contexts give rise to emerging hybrid cultural practices characterized by both stability and change. One major theoretical contribution of this . This internal inconsistency view is in stark contrast to the traditional internal consistency assumption explicitly or tacitly held by many culture scholars. The other major theoretical contribution, which follows logically from the first one, is to view culture as an overarching entity which is made of a multiplicity of Values, Expectations, and Ad Hoc Rules. This notion of one (multiplicity) culture to an organization leads to the classification of culture along its path of emergence into nascent, adolescent, and mature types, each of which is distinct in terms of the pattern of the three cognitive components and behavior. Effects. A healthy and robust organizational culture may provide various benefits, including the following: Competitive edge derived from innovation and customer service. Consistent, efficient employee performance. Team cohesiveness. High employee morale. Strong company alignment towards goal achievement. Although little empirical research exists to support the link between organizational culture and organizational performance, there is little doubt among experts that this relationship exists. Organizational culture can be a factor in the survival or failure of an organization - although this is difficult to prove given that the necessary longitudinal analyses are hardly feasible. The sustained superior performance of firms like IBM, Hewlett- Packard, Procter & Gamble, and Mc. Donald's may be, at least partly, a reflection of their organizational cultures. A 2. 00. 3 Harvard Business School study reported that culture has a significant effect on an organization's long- term economic performance. The study examined the management practices at 1. Organizations with strong performance- oriented cultures witnessed far better financial growth. Additionally, a 2. Corporate Leadership Council study found that cultural traits such as risk taking, internal communications, and flexibility are some of the most important drivers of performance, and may affect individual performance. Furthermore, innovativeness, productivity through people, and the other cultural factors cited by Peters and Waterman (1. Denison, Haaland, and Goelzer (2. How to Change Your Organization’s Culture - Management. Tips. Start the change process with people who have disproportionate influence in the organization. Look for ways to get people to experience the harsh realities that make change necessary. Look for ways to redistribute resources toward “hot spots” – activities that require few resources but result in large change. Adapted in part from “The Wall Street Journal Guide to Management” by Alan Murray, published by Harper Business. As a manager, you may have the power to change your organization’s policies with the stroke of a pen. And you may have the ability to hire, fire, promote and demote people with relatively little effort. But changing an entrenched culture is the toughest task you will face. To do so, you must win the hearts and minds of the people you work with, and that takes both cunning and persuasion. In their book “Blue Ocean Strategy,” W. Chan Kim and Renee Mauborgne cite four hurdles that face a manager trying to institute broad change in an organization. The first is cognitive – people must have some understanding of why the change in strategy or in culture is needed. The second is limited resources – inevitably, changing an organization will require shifting resources away from some areas and towards others. The third hurdle is motivation – ultimately, workers have to want to make the change. And the final hurdle is institutional politics. They quote one manager who complains: “In our organization, you get shot down before you stand up.”To overcome those hurdles, they suggest a “tipping point” approach to management. First of all, recognizing you won’t be able to convert everyone at once, start with people who have disproportionate influence in the organization. Get them committed to the change, or, failing that, get them out. And once they are committed to change, shine a spotlight on their accomplishments, so others get the message. Second, instead of just lecturing on the need for change, look for ways to get people to experience the harsh realities that make it necessary. Mauborgne tell the story of New York Police Commissioner Bill Bratton, who in the 1. New Yorkers had come to call it the “Electric Sewer.” Other companies have taken a similar approach, requiring managers to take calls from disgruntled customers. Third, look for ways to redistribute resources toward “hot spots” – activities that require few resources but result in large change – and away from “cold spots” – or areas with large resource demands, but relatively low impact. Finally, Mr. Mauborgne advocate appointing a “consigliere” – a highly respected insider, who knows who is fighting you, who is supporting you, and what you need to do to build coalitions and devise strategies for change. All leaders run the risk of losing touch with what’s really happening underneath them. A good consigliere can go a long way toward solving that problem. A few more general ideas: If you want to stimulate creativity in the workplace, evaluate your company’s personnel structure. Managers typically tap only a small portion of workers’ creative capabilities. Identify employees’ strengths and consider creating new groups with a tailored mix of talents. If you have a project, create a task force. Mix employees with different experience levels: Younger team members may provide energy and optimism; veterans may provide insight from past experience. Want a different spin on brainstorming? Consider creating a plant- packed “green” room or exterior garden where workers can spend an hour a week with nothing but a blank pad and pencil. Encourage innovation through an egalitarian culture, flexible schedules, few meetings and interdisciplinary project teams. Employees want to feel trusted. One way to foster that is by allowing people to work at home sometimes. Other times, just changing the office set- up helps spur innovation. To encourage teamwork, eliminate exclusive- looking private office suites and assign everyone work stations in close proximity to jump- start communication. Consider using the extra space to create office amenities, like a better break room or an office gym.
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