What is Organizational Culture?

1. What is Organizational Culture? Prepared by James J. Messina, Ph.D. Available on www.jamesjmessina.com

2. Cultures in Organizations There are three aspects to culture: • Artifacts • Espoused Beliefs • Underlying Assumptions (Schein, 1992)

3. Aspect #1 of an Organizational Culture: Artifacts • Visible aspects of culture in an organization “what is”: • Visible behaviors such as: organizational structures, practices and processes, technology, rituals, and language (Schein, 1992)

4. Aspects #2 of an Organizational Culture: Espoused Beliefs • Is a set of beliefs on “what ought to be” • Strategies, goals, and philosophies such as promoting good • Problem solving • Innovation and creativity • Working with others and management controls (Schein, 1992)

5. Aspect #3 of an Organizational Culture: Underlying Assumptions • Unconscious, taken-for-granted beliefs, perceptions, thoughts, and feelings • Basic underlying assumptions are the ultimate sources of values and actions and need to be understood if one is to get to what truly is the culture of an organization (Schein, 1992)

6. 12 Dimensions of Organizational Culture • External versus internal emphasis: the degree to which the organization focuses on customer/client satisfaction versus internal activities, such as reports and committee meetings. • Task versus "worker" or "human resource" focus: whether the organizational emphasizes task accomplishment versus the social needs of the employees. • Risk averse versus risk seeking: a tendency to be cautious in adopting innovations versus being willing to take risks especially when confronted with new challenges and opportunities is tolerated. • (Reynolds,1986)

7. 12 Dimensions of Organizational Culture • Conformity versus individuality: the degree to which distinctive and idiosyncratic behavior is tolerated. • Individual versus collective decision making: the degree to which decisions are made in a collegial manner with broad input from those affected. • Centralized versus decentralized decision making: relating to the degree to which decision making is centralized in the organization. (Reynolds,1986)

8. 12 Dimensions of Organizational Culture • Stability versus innovation: the tendency of the organization to innovate and change versus emphasizing stability and well-established procedures. • Cooperation versus competition: the degree to which cooperative behavior is emphasized and rewarded. • Simple versus complex organization: relating to the complexity of the formal and informal structures and the political processes within an organization. (Reynolds,1986)

9. 12 Dimensions of Organizational Culture • Informal versus formalized procedures: the degree of emphasis on detailed rules and procedures versus informal discussions and flexible work rules. • High versus low loyalty: the degree of loyalty to the work organization versus other relevant groups. • Ignorance versus knowledge of organizational expectations: focusing on the degree to which organizations communicate performance expectations to employees and gain their commitment to organizational goals. (Reynolds,1986)

10. #1 Characteristic of a Healthy Culture - Collegiality There is: • A great deal of informal consultation • A great deal of sharing of technical information • A close collegial relationship among the staff • A strong sense of belonging to the group • A strong sense of responsibility to help each other if a staff person has a personal problem • Candid and open communications existing between management and line staff (Kralewski, Dowd, Kaissi, Curoe & Rockwood, 2005)

11. #2 Characteristic of a Healthy Culture – Information Emphasis There is: • Reliance on electronic information systems to help provide cost effective customer service • Reliance on computer-based information when scheduling customers for service • Use of sound methods to assure that Technicians change their practices to include new technologies and field studies • A high level of commitment to measuring technical outcomes (Kralewski, Dowd, Kaissi, Curoe & Rockwood, 2005)

12. #3 Characteristic of a Healthy Culture – Quality Emphasis There is: • A reality that staff who develop inappropriate customer care practices will be "talked to" • Encouragement of internal reporting of negative customer care • Close monitoring of the quality of each technician’s work • Open discussion of technical failures • Emphasize on customer satisfaction • Understanding that quality of service is goal one (Kralewski, Dowd, Kaissi, Curoe & Rockwood, 2005)

13. #4 Characteristic of a Healthy Culture – Management Style There is: • Consensus building in the administrative decision making process • Consideration of the business office and administration as being a very important part of the service delivery system • Broad involvement of staff in most customer services related decisions • A great deal of loyalty by staff to the organization • Management’s obtaining and providing to staff information that helps them to improve the cost effectiveness of their customer services (Kralewski, Dowd, Kaissi, Curoe & Rockwood, 2005)

14. #5 Characteristic of a Healthy Culture – Cohesiveness There is: • An identifiable service delivery style that all try to adhere to • A general agreement on the best methods for new installment and repair of equipment • Widespread agreement about most moral/ethical issues • A rapid change in technical practice among staff when studies indicate that they can improve quality or reduce costs (Kralewski, Dowd, Kaissi, Curoe & Rockwood, 2005)

15. #6 Characteristic of a Healthy Culture – Business Emphasis There is: • Business decision making is heavily weighted toward improving productivity and profitability • A high priority to maximizing revenue • Each technician determines how many customers are scheduled per work day • No adding new pieces of equipment if they won't make money for the organizations and technicians (Kralewski, Dowd, Kaissi, Curoe & Rockwood, 2005)

16. #7 Characteristic of a Healthy Culture – Organizational Trust There is: • A sense that everyone is paid adequately for how hard they work for the organization • A belief that the technicians’ compensation formula is well aligned with the organization's goals • A feeling that the administrators care about their workers • A high degree of trust in the organization (Kralewski, Dowd, Kaissi, Curoe & Rockwood, 2005)

17. #8 Characteristic of a Healthy Culture – Innovativeness There is: • An incentive/compensation system that encourages innovation • Encouragement of risk taking in adopting innovations in customer • Recognition given to staff for the innovations that they create and implement (Kralewski, Dowd, Kaissi, Curoe & Rockwood, 2005)

18. #9 Characteristic of a Healthy Culture – Autonomy There is: • An emphasis on technician individuality; each technician has the right to provide services according to his/her own style • A feeling that each technician is autonomous, but working in the same organization for support services • A great deal of tolerance of individual technicians individualized ways of providing quality customer services (Kralewski, Dowd, Kaissi, Curoe & Rockwood, 2005)

19. References • Kralewski, J.J., Dowd, B. E., Kaissi, A, Curoe, A & Rockwood, T. (2005). Measuring the Culture of Medical Practices. Health Care Management Review: July-September, 184-193 • Reynolds, P.D.(1986). Organizational Culture as Related to Industry, Position and Performance: A Preliminary Report. Journal of Management Studies: 23, 333. • Schein, E. H. (1992). Organizational culture and leadership (2nd ed). San Francisco: Jossey-Bass