4.10. Organisational culture Flashcards Preview

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Flashcards in 4.10. Organisational culture Deck (10)
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1
Q

Define organisational culture

A
  • the values/assumptions shared within an organisation
  • defines what is important
  • provides direction toward the right way of doing thing
  • company’s DNA
2
Q

Elements of organisational culture

A
artifacts of organisational culture: 
- physical structures
- language
- rituals and ceremonies
- stories and legends
organisational culture:
- shared values: conscious beliefs, evaluation of what's right and wrong
- share assumptions: unconscious, taken for granted beliefs, implicit mental models, ideal prototype of behaviours
3
Q

Espoused values

A

Represent the explicitly stated values and norms that are preferred by an organization

4
Q

Enacted values

A

Represent the values and norms that actually are exhibited or converted into employee behavior

5
Q

Rituals, ceremonies and language

A

• Rituals:
– programmed routines
– (e.g., how visitors are greeted)
• Ceremonies
– Planned activities for that demonstrate what a firm values (e.g. awards for employees who performed in line with certain values)
• Language
– How employees address each other and outsiders, express emotions, describe stakeholders, etc.

6
Q

Why is organisational culture important?

A

• Control system: directing employees in a given direction– once people internalize certain values you don’t have to tell them what to do anymore
• Social glue: people drink “the Kool Aid” (group identity)
• Sense making: create an understanding for why
something happens
• However, a very strong culture might undermine innovation capabilities

7
Q

Limitations of organisational culture

A
  • Strength of cultural values depends on how long members of a group have been together and how stable and homogenous the group has been (established vs. young firms)
  • Multiple groups within an organisation may develop partly different sub-cultures
8
Q

How is the culture preserved?

A
  • Formal rules and procedures
  • Widespread practices
  • Leader’s example
  • Informal advice
  • Common stories
9
Q

How can organisational culture be changed/strengthened?

A
  1. Actions of founders/leaders
    – Founder’s values/personality
  2. Aligning artifacts
    – Artifacts keep culture in place
    3.Introducing culturally consistent rewards
    – Rewards are powerful artifacts
  3. Support workforce stability and communication
    – High turnover weakens org culture
    – Strong culture depends on frequent, open communication
  4. Attracting, selecting, and socialization of employees
    – Socialization practices
10
Q

Different types of merging cultures

A
  1. Assimilation: acquired company embraces acquiring firm’s cultural values
  2. Deculturation: acquiring firm imposes its culture on unwilling acquired firm
  3. Integration: cultures combined into a new composite culture
  4. Separation: merging companies remain separate with their own culture