Organizational Culture And Structure
Organizational Culture and Structure
“Simply, a company’s structure and design can be viewed as its body, and its culture as its soul.”-- Naomi Cossak
The Effects of Organizational Culture and Structure
The behavior patterns in the organization are the elements for execution of the strategy—creating value in the market
The organizational culture and structure will define the limitations and possibilities for behavior patterns
Operationally, the acceptable behavior patterns are controlled through the HR System:
Organizational Employees (Capabilities, personalities, values, interests of employees, etc.)
HR Programs (Personnel selection, compensation, development, evaluation, etc.)
HR Policies (Promotion, reward, retention, communication, etc.)
Organizational Culture
What is an Organizational Culture?
Culture emerges from a set of basic assumptions and core values shared by the members of the organization. Those values shape the way they perceive, respond and behave in carrying out their organizational responsibilities. Organizational Culture is Manifest at Multiple Levels
Fundamental Assumptions Basic and Implicit (Hidden)
Values
Behavioral Norms
Patterns of Behavior
Artifacts and Symbols Manifest in Organizational Process
The Importance of Culture in Executive Thinking
Nine of ten executives have indicated that culture is as important as strategy in organizational success
Darrell Rigby “Organizational culture and so-called softer issues are now top of mind. Executives are clearly looking beyond cost cutting for success.”
Lou Gerstner (IBM) stated that “. . . culture isn’t just one aspect of the game – it is the game.”
Peter Drucker “Culture eats strategy for breakfast”
Corporate Culture and Organizational Performance
A classic study by Kotter and Heskett showed that organization culture can be a key factor in bottom line success. Organizations with performance enhancing cultures outperformed others in revenue growth, employment
“Simply, a company’s structure and design can be viewed as its body, and its culture as its soul.”-- Naomi Cossak
The Effects of Organizational Culture and Structure
The behavior patterns in the organization are the elements for execution of the strategy—creating value in the market
The organizational culture and structure will define the limitations and possibilities for behavior patterns
Operationally, the acceptable behavior patterns are controlled through the HR System:
Organizational Employees (Capabilities, personalities, values, interests of employees, etc.)
HR Programs (Personnel selection, compensation, development, evaluation, etc.)
HR Policies (Promotion, reward, retention, communication, etc.)
Organizational Culture
What is an Organizational Culture?
Culture emerges from a set of basic assumptions and core values shared by the members of the organization. Those values shape the way they perceive, respond and behave in carrying out their organizational responsibilities. Organizational Culture is Manifest at Multiple Levels
Fundamental Assumptions Basic and Implicit (Hidden)
Values
Behavioral Norms
Patterns of Behavior
Artifacts and Symbols Manifest in Organizational Process
The Importance of Culture in Executive Thinking
Nine of ten executives have indicated that culture is as important as strategy in organizational success
Darrell Rigby “Organizational culture and so-called softer issues are now top of mind. Executives are clearly looking beyond cost cutting for success.”
Lou Gerstner (IBM) stated that “. . . culture isn’t just one aspect of the game – it is the game.”
Peter Drucker “Culture eats strategy for breakfast”
Corporate Culture and Organizational Performance
A classic study by Kotter and Heskett showed that organization culture can be a key factor in bottom line success. Organizations with performance enhancing cultures outperformed others in revenue growth, employment