LO3 - Is Organizational Culture Important?

Created by

Bcd

Cards (12)

Potential Benefits and Contingencies of Culture Strength
How widely and deeply employees hold the company’s dominant values and assumptions.
Most employees understand/embrace the culture.
Institutionalized through artifacts.
Long-lasting – possibly originate with founder(s).
Three functions of strong cultures:
Control system.
Social glue.
Sense-making.
Control system 
Organizational culture is a deeply embedded form of social control that guides employee decisions and behaviour.
Social glue 
Organizational culture is the social glue that bonds people together and makes them feel part of the organizational experience
Sense-making 
Organizational culture helps employees to make sense of what goes on and why things happen in the company
CONTINGENCIES OF ORGANIZATIONAL CULTURE AND EFFECTIVENESS
Culture Content Is Aligned with the External Environment
Culture Strength Is Not the Level of a Cult
Culture Is 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.
Culture content is aligned with the environment. 
Misaligned culture guides wrong decisions and behaviours for relations with stakeholders.
Culture strength is not the level of a cult.

Cults lock people into mental models.
Cults suppress subculture dissenting values.
Culture is an adaptive culture.
External focus: need for continuous change.
Support continuous improvement of internal work processes.
Learning orientation.
learning orientation 
A set of collective beliefs and norms that encourage people to question past practices, learn new ideas, experiment putting ideas into practice, and view mistakes as part of the learning process.