Chapter 14

Question 1

What defines organisational culture?

Answer 1

Organisational culture refers to the values and assumptions shared within an organisation. It influences how employees think, behave, and work together.

Question 2

organizational culture

Answer 2

the values, norms, and assumptions shared among organizational members

Question 3

Organizational culture norms are..

Answer 3

informal rules, and shared expectations of employee behavior. These are translated into more specific behavioral guidelines.

eg: A company with a strong performance culture might have norms that encourage working long hours and being persistent in achieving goals.

Question 4

On top of the iceberg (artifacts of organizational culture) is physical structures, languages, rituals and ceremonies, storeis and legends.

What is on the bottom of the iceberg?

Answer 4

Shared values and norms
* Stable, conscious,
prescriptive beliefs.
* Guide decision/behavior
preferences.
* Informal rules, shared
expectations of behavior.

Shared assumptions
* Nonconscious, taken
for-granted beliefs.
* Ideal prototypes of
behavior

Question 5

What are values in organisational culture?

Answer 5

Values are stable, evaluative beliefs that guide preferences for outcomes or actions. They reflect perceptions of what is good or bad in various situations.

Question 6

What are shared values in an organisation?

Answer 6

Shared values are common values held by people within an organisation or work unit, placed at the top of their value hierarchy

Question 7

What are espoused values?

Answer 7

Espoused values are the values corporate leaders hope will shape the culture. These are often socially desirable values that guide organizational decisions and actions.

Question 8

If the top management acts consistently with the espoused values

Answer 8

lower-level employees might not do so

Question 9

By what values is an organization’s culture defined?

Answer 9

By enacted values

Question 10

What are enacted values?

Answer 10

Enacted values are the values that actually guide and influence decisions and behavior within the organisation. They are the values in action.

Question 11

What are assumptions in organisational culture?

Answer 11

Assumptions are unconscious, taken-for-granted beliefs about how to deal with and think about problems and opportunities.

Question 12

What are shared assumptions in an organisation?

Answer 12

Shared assumptions are nonconscious, taken-for-granted perceptions or prototypes of behavior considered the correct way to approach problems and opportunities.

Question 13

ORGANIZATIONAL CULTURE DIMENSION

Answer 13

1. Innovation: Experimenting, opportunity seeking, risk taking, few
   rules, low cautiousness
2. Stability: Predictability, security, rule-oriented
3. Respect for people: Fairness, tolerance
4. Outcome orientation: Action-oriented, high expectations, results-oriented
5. Attention to detail: Precise, analytic
6. Team orientation: Collaboration, people-oriented
7. Aggressiveness: Competitive, low emphasis on social responsibility

Question 14

What is a limitation of organisational culture models?

Answer 14

These models often oversimplify cultural diversity, ignore shared assumptions aspect of culture, and incorrectly assume that an organisation has a clear, unified culture.

Question 15

Why does it happen that they ignore shared assumptions aspect of culture?

Answer 15

Because measuring shared assumptions is even more difficult than measuring shared values and norms

Question 16

What is a dominant culture in an organisation?

Answer 16

Dominant culture consists of the values and assumptions shared most consistently by the organisation’s members, usually supported by senior management (not always).

Question 17

What are subcultures within an organisation?

Answer 17

Subcultures are groups within an organisation that have different values or experiences from the dominant culture but still fit with the broader organisational culture. They can either enhance or differ from the dominant culture.

Question 18

What are countercultures?

Answer 18

Countercultures are subcultures that directly oppose the dominant culture. It can also be that they might have no identifiable dominant culture.

Question 19

What are the functions of subcultures in an organisation?

Answer 19

1. Subcultures maintain performance and ethical standards. Subcultures potentially support ethical conduct by preventing employees from blindly following one set of values
2. They encourage constructive conflict and creative thinking for interaction with stakeholders and evolution.

Question 20

If subcultures are suppressed, the organization….

Answer 20

may take longer to discover, develop and adopt the emerging desired culture

Question 21

artifacts

Answer 21

the observable symbols and signs of an organization’s culture

Question 22

Difference between culture and artifacts

Answer 22

Culture is cognitive
- values, norms, assumptions reside inside people’s heads

Artifacts are observable manifestations of that culture

Question 23

Types of cultural artifacts:

Answer 23

1. organizational stories and legends
2. Organizational language
3. rituals and ceremonies
4. physical structures and symbols

Question 24

Organisational stories and legends

Answer 24

Serve as social prescriptions, showing how things should be done, and produce emotions that enhance memory.

Organizational stories and legends are narratives about a company’s past, often involving its founders or key events, which shape its culture. These tales communicate values, reinforce behaviors, and create emotional connections that enhance the retention of lessons.

Question 25

Organizational language

Answer 25

Custom phrases and labels unique to the company that capture cultural values. Organizational language reflects a company’s culture through the words and phrases employees use, which reveal shared values and norms. Customized terms, like "village" at DaVita or "teammates," shape how employees view relationships, while less favorable language, like "elephant trades" at Goldman Sachs, can highlight negative cultural traits.

Question 26

rituals

Answer 26

the programmed routines of daily organizational life that dramatize the organization’s culture

Question 27

ceremonies

Answer 27

planned displays of organizational culture, conducted specifically for the benefit of an audience

Question 28

Rituals and ceremonies

Answer 28

Rituals are repetitive, everyday routines that reflect an organization’s culture, like how employees interact or how quickly they move through spaces. Ceremonies, on the other hand, are formal, planned events designed to highlight key moments, such as celebrating achievements or rewarding employees.

Question 29

Physical structures and symbols

Answer 29

The size, shape, and location of buildings that reinforce or alter cultural values. Physical structures and symbols reflect and reinforce an organization’s culture through elements like office design, furniture, and layout. For instance, open, flexible spaces promote teamwork in creative cultures, while more structured, private offices emphasize individual work in competitive or control-focused cultures.

Question 30

What defines a strong organizational culture?

Answer 30

A strong organizational culture is when employees widely understand and embrace the company’s core values, norms, and assumptions. These values are shared, internalized, and supported by well-established artifacts, leading to a long-lasting and consistent culture across the organization.

Question 31

Under the right conditions, companies are more effective when they have strong cultures because of three important functions

Answer 31

1. Control system: A form of social control influencing employee decisions and behavior. 2. Social glue: Bonds people together and makes them feel part of the organisation. 3. Sense-making: Helps employees understand what’s happening, why things happen, and what’s expected.

Question 32

How does organizational culture function as a control system

Answer 32

Organizational culture acts as an embedded form of social control, subtly guiding employee behavior to align with company expectations. It operates like an automatic pilot, directing actions in a consistent direction, often described as a compass for the organization.

Question 33

How does organizational culture act as "social glue"?

Answer 33

Organizational culture bonds employees together, fulfilling their need for social identity and creating a sense of belonging. It attracts new talent, retains top performers, and holds employees together, even in global organizations, acting as the invisible force that drives success.

Question 34

How does organizational culture aid in sense-making?

Answer 34

Organizational culture helps employees understand what’s happening and why, clarifying expectations. In strong cultures, employees have clearer role perceptions, which reduces role-related stress.

Question 35

Benefits of culture strenght depend on.....

Answer 35

1. Culture content aligns with the external environment. 2. Whether the culture is moderately strong (strong cultures can blind to new opportunities, cult). 3. Whether the culture incoroprates an adaptive culture

Question 36

adaptive culture

Answer 36

an organizational culture in which employees are receptive to change, including the ongoing alignment of the organization to its environment and continuous improvement of internal processes

Question 37

learning orientation

Answer 37

a set of beliefs and norms in which people are encouraged to question past practices, learn new ideas, experiment putting ideas into practice, and view mistakes as part of the learning process

Question 38

How does aligning culture content with the external environment impact an organization?

Answer 38

When an organization's culture aligns with the external environment, employees are more motivated and have clearer role perceptions, leading to behaviors that improve interactions with stakeholders. Misalignment can undermine innovation and connection with the environment, as seen with Microsoft's previous culture.

Question 39

Why can very strong cultures be less effective than moderately strong cultures?

Answer 39

Very strong cultures, or corporate “cults,” can limit mental flexibility, suppress dissenting subcultures, and prevent the organization from adapting to new opportunities and problems. This reduces the ability to respond to changes in the environment.

Question 40

What defines an adaptive organizational culture?

Answer 40

An adaptive culture embraces change, creativity, and learning, helping organizations remain flexible and responsive to external shifts. It encourages continuous improvement, innovation, and openness to change in both internal processes and employee roles

Question 41

bicultural audit

Answer 41

a process of diagnosing cultural relations between companies and determining the extent to which cultural clashes will likely occur

Question 42

How does culture influence ethical conduct?

Answer 42

Organisational cultures shape how employees behave ethically and influence their decision-making, as cultural norms guide actions.

Question 43

What are the strategies for merging organisational cultures?

Answer 43

1. Assimilation: The acquired company embraces the acquiring organisation's culture. 2. Deculturation: Stripping away artifacts that support the old culture (rarely works). 3. Integration: Combining two cultures into a new composite culture. 4. Separation: Keeping cultures distinct with minimal interaction.

Question 44

assimilation works best when...

Answer 44

Acquired firm has a weak culture and acquiring firm’s culture is strong and successful.

Question 45

Deculturation works best when...

Answer 45

Rarely works—may be necessary only when acquired firm’s culture is dysfunctional but its employees aren’t yet aware of the problems.

Question 46

Integration works best when...

Answer 46

Existing cultures at both firms are relatively weak or have overlapping values and can be improved.

Question 47

Separation works best when....

Answer 47

Firms operate successfully in different businesses requiring different cultures.

Question 48

Strategies for Changing and Strengthening Organizational Culture

Answer 48

1. Use attraction,selection, and socialization for culture “fit” 2. Model desired culture through the actions of founders and leaders 3. Align artifacts with the desired culture 4. Introduce culturally consistent rewards/recognition 5. Support workforce stability and communication

Question 49

attraction–selection–attrition (ASA) theory

Answer 49

a theory stating that organizations have a natural tendency to attract, select, and retain people with values and personality characteristics consistent with the organization’s character, resulting in a more homogeneous organization and a stronger culture

Question 50

How does "attraction" work in the ASA theory?

Answer 50

Job seekers naturally gravitate toward organizations with values similar to their own, often assessing company culture through interviews and public information.

Question 51

What role does "selection" play in the ASA process?

Answer 51

Companies prioritize hiring candidates whose values align with their culture, often considering culture fit as important as skills and experience.

Question 52

What is "attrition" in the ASA theory?

Answer 52

Employees who experience strong value misalignment with the company often leave voluntarily or are encouraged to leave, maintaining cultural consistency.

Question 53

Why do some companies prefer "culture add" over "culture fit"?

Answer 53

"Culture add" emphasizes hiring individuals who bring diverse perspectives while still aligning with core values, avoiding homogeneity and fostering innovation.

Question 54

How can organisational culture be promoted?

Answer 54

1.Actions of founders and leaders: 2. They shape core values and culture. 3. Align artifacts with desired culture. 4. Culturally consistent rewards/recognition. 5. Supporting workforce stability and communication. 6. Attraction, selection, and socialisation for cultural ‘fit’.

Question 55

organizational socialization

Answer 55

the process by which individuals learn the values, expected behaviors, and social knowledge necessary to assume their roles in the organization

Question 56

psychological contract

Answer 56

the individual’s beliefs about the terms and conditions of a reciprocal exchange agreement between that person and another party (typically an employer)

Question 57

What’s the difference between transactional and relational contracts?

Answer 57

1. Transactional contracts are short-term, narrowly defined exchanges with clear obligations. 2. Relational contracts are long-term, broader exchanges that involve mutual obligations and expectations.

Question 58

What are the stages of organisational socialisation?

Answer 58

1. Pre-employment socialisation: Learning and adjusting before starting work. 2. Encounter: Newcomers experience reality shock when pre-employment expectations don’t align with reality. 3. Role management: Adapting to new roles within the company. 4. Socialization outcome: Achieving effective integration into the company.

Question 59

reality shock

Answer 59

the stress that results when employees perceive discrepancies between their preemployment expectations and on-the-job reality

Question 60

realistic job preview (RJP)

Answer 60

a method of improving organizational socialization in which job applicants are given a balance of positive and negative information about the job and work context