Ch 8.5 Flashcards
(13 cards)
What is organizational culture?
Organizational culture is the shared beliefs, values, and assumptions that guide behavior within a company.
How can culture impact a company?
Culture creates the atmosphere of the company, affecting how employees feel, act, and interact with others.
What is a subculture in an organization?
A subculture is a smaller group within the company that has its own values or behaviors, like software vs. hardware engineers.
What is a strong organizational culture?
A strong culture has widely shared and intense values, beliefs, and behaviors that unify employees and guide their actions.
What is a weak organizational culture?
A weak culture has less shared understanding, leading to fragmented behaviors and less unity within the company.
What are the advantages of a strong culture?
Coordination: Employees work well together across departments.
Conflict Resolution: Shared values help solve disagreements.
Success: Strong cultures help companies succeed, like WestJet’s culture boosting profits.
What are the disadvantages of a strong culture?
Resistance to Change: Strong cultures can be slow to adapt, as seen with IBM.
Culture Clash: Mergers may fail if company cultures are too different.
Pathological Cultures: Some cultures may be harmful, like Enron’s dishonest culture.
How can a culture help coordination?
In strong cultures, shared values make different departments work smoothly together, improving communication.
Can a strong culture help with conflict?
Yes, strong cultures guide conflict resolution, such as by having employees closest to the issue make decisions.
How does culture impact a company’s financial success?
A strong culture can lead to higher performance and financial success, as seen with WestJet’s profitable culture.
What happens when cultures resist change?
Strong cultures may hold onto old ways, making it harder to innovate or change when needed.
What happens in a culture clash?
When two companies merge, different cultures may cause issues, like at HP and Compaq, where different work styles led to problems.
What is a pathological culture?
A pathological culture is harmful, like Enron’s, where dishonesty and unethical behavior were part of the culture.
