6.14.3 Changing organizational culture

• Organizational culture refers to the shared values, beliefs, and practices within an organization
• What is included in the Artifacts dimension of organizational culture according to Edgar Schein?

  Visible symbols
• Underlying assumptions in organizational culture are conscious beliefs that influence behavior.

  False
• Match the cultural type with its defining value:

  Clan ↔️ Collaboration

  Adhocracy ↔️ Innovation

  Hierarchy ↔️ Structure

  Market ↔️ Competition
• Changing organizational culture is often necessary when companies experience declining performance
• What does increased employee turnover indicate in a company?

  Dissatisfaction
• Mergers and acquisitions always require immediate cultural changes to succeed.
• Order the key indicators that necessitate a culture change in an organization:

  1️⃣ High turnover rates

  2️⃣ Declining profit margins

  3️⃣ Low employee engagement

  4️⃣ Negative customer satisfaction

  5️⃣ Resistance to new strategies
• What is a key difference between an old and a new organizational culture in terms of values?

  Status quo vs. innovation
• In a new organizational culture, employee engagement is typically high
• What are the three dimensions of organizational culture according to Edgar Schein?

  Artifacts, Espoused Values, Underlying Assumptions
• Organizational culture influences employee behavior and decision-making.
• Changing organizational culture is necessary when companies face issues like declining performance
• Key indicators for the need to change organizational culture include high employee turnover
• In a new organizational culture, innovation is valued over the status quo.
• In a new organizational culture, employee engagement is high.
• Rigid processes are a characteristic of a new organizational culture.

  False
• Excellent customer satisfaction is a key trait of a new organizational culture.
• A company with declining sales may need to shift to a more flexible culture.
• Steps to diagnose organizational culture

  1️⃣ Conduct employee surveys

  2️⃣ Perform cultural audits

  3️⃣ Review company documents

  4️⃣ Observe workplace interactions
• What are Schein's cultural dimensions?

  Artifacts, Values, Assumptions
• A cultural vision should align with the company’s strategic goals and values.
• Match the cultural vision component with its definition:

  Values ↔️ Guiding principles

  Beliefs ↔️ Shared assumptions

  Practices ↔️ Routines and activities

  Behaviors ↔️ Observable actions
• Brainstorming sessions can encourage creativity in an innovative culture.
• What is a key characteristic of a desired organizational culture?

  Innovation
• Open communication is a key practice in a culture that values employee empowerment.
• Collaboration is a core value in a desired organizational culture.
• What is an example of a behavior in a culture that values respect?

  Adaptability
• Organizational culture includes shared values, beliefs, and practices.
• What are the three dimensions of organizational culture according to Edgar Schein?

  Artifacts, Espoused Values, Underlying Assumptions
• Organizational culture influences employee behavior and decision-making through shared values, beliefs, and practices
• Match the cultural type with its primary value:

  Clan ↔️ Collaboration

  Adhocracy ↔️ Innovation

  Hierarchy ↔️ Structure

  Market ↔️ Competition
• The Clan culture values collaboration and family-like relationships.
• Which cultural type values innovation and adaptability?

  Adhocracy
• The Hierarchy culture emphasizes structure and stability
• Google exemplifies a Clan culture with its emphasis on collaboration.
• What are key indicators that a company needs to change its organizational culture?

  Declining performance, high turnover
• Employee surveys are a cost-effective method to diagnose organizational culture but provide limited depth
• Schein's cultural dimensions analyze artifacts, espoused values, and underlying assumptions.
• Steps to create a vision for the desired organizational culture:

  1️⃣ Identify Core Values

  2️⃣ Define Key Beliefs

  3️⃣ Describe Practices

  4️⃣ Visualize Behaviors

  5️⃣ Communicate the Vision