Discuss Organizational Culture- Culture Edgar Schein
“A pattern of shared basic assumptions that the group learned as it solved its problems of external adaptation and internal integration, that has worked well enough to be considered valid and, therefore, to be taught to new members as the correct way to perceive, think, and feel in relation to those problems.”
Culture
Internal environment
Comprises the forces inside an organization that affect how managers set expectations, how employees perform their roles, and how the company interacts with stakeholders and responds to external environments
External environment
Specific and general factors outside an organization that can change how it operates
Internal Environment
Organizational culture
Collection of beliefs, shared by individuals and groups, to help their organization to respond to environmental forces and changes
Experienced at the:
Conscious level – can be
seen or heard openly
Unconscious level – things
that employees think or feel
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Organizational Culture
90/10
The Iceberg Model of Culture
Beliefs
Norms
Values
Assumptions
Observable
Unobservable
Architecture
Material symbols
Dress
Behavior
Rules
Stories, myths, legends
Language
Favorite topics of conversation
Rituals, ceremonies
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Levels of organizational culture—observable culture and core culture in the organizational “iceberg ”
CORE CULTURE
Core Values
Beliefs about the right ways to behave
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Artifacts
The visible and tangible elements of culture
Types of Cultures
Tradition is Important at Mary Kay Cosmetics Pink Cadillacs are given to top performers at large annual events
Southwest Airlines
Team-oriented cultures are collaborative and emphasize cooperation among employees
L.L. Bean
Low – 3% turn over rate
Ranked in Fortune’s 100 Best Companies to work For
“Every employee is the most important in the company.”
Goldman Sacs 12 handy hints for fitting into Goldman Sachs’ culture
You must adopt a uniform
Fitness first
You must pull out the stops for colleagues
Everything is career-related
It’s still survival of the fittest
You need advocates
You must be flexible to survive
Rising stars are rock stars
But don’t shout about it
You need to take criticism
The job is the center of your new universe
The intense competition is ultimately rewarding
Microsoft
The software process was something that was very individualistic. Today, it is much more collaborative.
Big cultural change moving from an individual centric organization to one that is more about teams and the group work.
Gig Economy
Multicultural Organizations and Diversity
Multiculturalism
involves inclusiveness and respect for diversity
Multicultural organizations
has a culture with core values that respect diversity and support multiculturalism
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Innovative Cultures
Strong vs. Weak Culture
How widely shared are the beliefs?
How deeply are they held?
STRONG CULTURES are widely shared and deeply held
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Challenges of a Strong Culture
Difficult to change
Can be a liability during a merger as each separate culture must merge together
Culture Maintenance
Culture Creation
Creating and Maintaining Organizational Culture
Founder values and preferences
Industry demands
Early values, goals, assumptions
Attraction-selection-attrition
New employee onboarding
Leadership
Reward systems
Organizational Culture
Organization Change
Change leaders versus status quo managers
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Organizational Change
Top-down change
Change initiatives come from senior management
Success depends on support of middle-level and lower-level workers
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Organizational Change
Bottom-up change
The initiatives for change come from any and all parts of the organization, not just top management
Crucial for organizational innovation
Made possible by:
Employee empowerment
Employee involvement
Employee participation
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Organizational Change
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Organizational Change
Transformational and incremental change
Transformational change
Results in a major and comprehensive redirection of the organization
Incremental change
Bends and adjusts existing ways to improve performance
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Resistance to Change
Resistance to change in an organization can be viewed as providing valuable feedback that should not be ignored
The Power of Habit by Charles Duhigg
Habits or routines – we do them without thinking about them
When Habits emerge, the brain stops fully participating in decision-making. Unless you deliberately fight a habit – unless you find new routines the pattern will unfold automatically
Habits never really disappear – good & bad
Habits emerge without our permission
Duke University – more than 40% of the actions people perform each day weren’t actual decisions, but rather habits
Habit Examples
Impact of exercise on daily routine – people that habitually exercise, even only once a week start changing other unrelated patterns. They start to eat better, more productive at work, smoke less, more patient and use their credit cards less frequently, less stressed. Small change spills over
Families who habitually eat together – children have higher grades, use fewer drugs, better homework skills – chain reaction
Habits in Organizations
Attack one habit and then watch the changes ripple through the organization
Keystone Habit – small wins have enormous power. Small wins fuel
transformational change by leveraging tiny advantages into patterns that convince people bigger achievements are within reach. Small wins are scattered, they do not always go in an organized path
Cultures grow out of Keystone Habits in every organization, whether leaders are aware of them or not
Organizational Culture is a collection of habits
Acceleration of Change
