Chapter 14 Summary
Organizational Culture
Organizational culture consists of the values and assumptions shared within an organization. It defines what is important and unimportant in the company and, consequently, directs everyone in the organization toward the “right way” of doing things.
Elements of Organizational Culture
In the context of organizational culture, values are discussed as shared values, which are values that people within the organization or work unit have in common and place near the top of their hierarchy of values. Organizational culture also consists of shared assumptions, a deeper element that some experts believe is the essence of corporate culture. Shared assumptions are nonconscious, taken-for- granted perceptions or ideal prototypes of behavior that are considered the correct way to think and act toward problems and opportunities.
Content of Organizational Culture ▪ The relative ordering of values. • A few dominant values • Example: Dell efficiency and competitiveness ▪ Problems with measuring org culture • Oversimplifies diversity of possible values • Ignore shared assumptions • Adopts an “integration” perspective ▪ An organization’s culture is fuzzy: • Diverse subcultures (“fragmentation”) • Values exist within individuals, not work units
Organizational Culture Profile Dimensions and Characteristics • Innovation: Experimenting, opportunity seeking, risk taking, few rules, low cautiousness • Stability: Predictability, security, rule-oriented • Respect for people: Fairness, tolerance • Outcome orientation: Action oriented, high expectations, results oriented • Attention to detail: Precise, analytic • Team orientation: Collaboration, people-oriented • Aggressiveness: Competitive, low emphasis