What is organizational culture
system of shared assumptions, values and beeliefs that show employees what is approopiate and inappropriate behaviour.
individuals not aware –> only when comparing to other organizations
Why does organiztional culture matter?
can create a compatative advantage. -> increased performance ( + important to have a culture that fits with deemand of compay’s environment.
having the wrong company culture –> performance difficulty –> barrier preventing company from changing and taking risks
Levels of organizational culture schein
Assumptions –> deepest level –> reflect beliefs about human nature and reality
Values –> shared principles, standards and goals
artifacts –> visible, tangible aspects of organizational culture
Proactive service culture
when every person in your organization views their role through the lens of the customer
Customer impact –> culture of service throughout your organization which then impacts your customer’s lives.
How are cultures created?
founder’s values –> early company’s culture tied to personality, background and values of it’s founder –> hard to change + determinees rules, structure and staff.
Industry demands –> industry demands acts as force to create similarities among organizational cultures.
goals & and assumptions
Two configurations –> organizational culture structures
Mechenical structure:
formalizeed and centralized –> specific job descriptions –> rigid and resist change –> unsuitable for innovative and taking quick actions –> discouraging individual initiative + lower levels of intrinsic motivation of the job.
advantages –> only when environment is more stable –> efficiency –> max out + min costs
Organic structure
flexible and decentralized and lower level of formalization –> communication more fluid and flexible –> employees perform based on duties on specific needs –> higher job satisfaction
6 components of high performing culture
You have to define the culture –> what is high performance and what are desired behaviours
set direction –> what is the vision for the organization? –> purpose
communicating the culture –> what types of communication are you going to use
organize your team to support the culture –> how? what process?
manage performance –> goals of organization + measure people’s performance? + how right behavioral incentives?
live th eculture every day –> how reinforce desired behaviour and get rid of counter behaviours
