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CULTURE DESIGN. ORGANIZATIONAL. CULTURE. Culture – a shared set of beliefs and values which guide behavior and decision making of members of an organization Culture … Shapes attitudes, Reinforces common beliefs, Directs behavior, Establishes performance expectations, and
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CULTURE DESIGN ORGANIZATIONAL
CULTURE • Culture – a shared set of beliefs and values which guide behavior and decision making of members of an organization • Culture … • Shapes attitudes, • Reinforces common beliefs, • Directs behavior, • Establishes performance expectations, and • Motivates individuals
CULTURE • Studies show a strong culture impacts organizational long-term results. • Strong cultures which are clear, well defined and widely shared discourage dysfunctional (unethical) behavior and encourage positive behaviors. • Weak cultures are those with ill defined values, not widely shared or unclear.
CULTURAL TYPES • Observable culture: behavior seen by employees and non-employees upon general observation • Core culture: deep seated behaviors not observed by the public but understood by employees • Strong cultures have both; weak cultures might not have either
DIMENSIONS OF CULTURE • Studies indicate 7 key dimensions of culture: • Attention to detail • Outcome orientation • People orientation • Team orientation • Aggressiveness • Stability • Innovation & Risk Taking
ATTENTION TO DETAIL • The degree to which employees are expected to exhibit precision, analysis and attention to detail. • Organizations might be low on this dimension believing “close is good enough.” • Other organizations might be high on this dimension where every detail has to be considered and perfection is expected
OUTCOME ORIENTATION • Degree to which managers focus on results or outcome rather than how outcomes are achieved. • Organizations might be low on this scale believing the end does not justify the means. • Organizations might be high on this scale indicating the only thing which matters is getting the job done/success.
PEOPLE ORIENTATION • Degree to which management decisions take into account the effects on people in the organization. • Organizations low on this dimension do not care about the impact on people. • Organizations high on this dimension will often trade accept lower results rather than adversely impact people.
TEAM ORIENTATION • Degree to which work is organized around teams rather than individuals. • Organizations high on this attribute are strong believers in “team work.” • Organizations low on this dimension prefer individual performance.
AGGRESSIVENESS • Degree to which employees are aggressive and competitive rather than cooperative. • Organizations high on this dimension witness much internal competitiveness, infighting and lack sharing of information. • Organizations low on this attribute are generally passive in behavior, very cooperative and supportive of each other.
STABILITY • Degree to which organizational decisions and actions emphasize maintaining the status quo. • Organizations high on this dimension prefer not to “rock the boat” and tend to leave things the way they are (“we have always done it this way.”) • Organizations low on this attribute generally are always looking for new ways, processes and different ways to perform or succeed.
INNOVATION & RISK TAKING • Degree to which employees are encouraged to be innovative and to take risks. • Organizations high on this attribute are groundbreakers, first ones to try something new, inventive and experimenting. • Organizations low on this dimension prefer others take the lead (and risk failure) and generally prefer to follow, not lead.
CULTURE CREATION • Leadership, at all levels, are responsible for building and maintaining a strong culture • Leadership action and behaviors more critical than words … “what you do speaks louder than what you say”
ORGANIZATIONAL DESIGN • Contemporary organizations show the following characteristics: • Less bureaucratic, trending to adaptive, • Flatter with fewer managers rather than vertical (more layers) with more managers, • Structure following strategy (evolving as strategies change), • Continuous improvement via reengineering and/or benchmarking.