Lecture 11: Chapter 14: Organizational Culture

Question 1

What is organizational culture?

Answer 1

The values, norms and assumptions shared among organizational members

Question 2

What are values?

Answer 2

Stable, evaluative beliefs that determine our preference for a certain outcome or approach in various situations. They’re our conscious perceptions of what’s good/wrong.

Question 3

What are assumptions?

Answer 3

Unconscious, taken for granted perceptions about the correct way of dealing with and thinking about problems and opportunities

Question 4

What is the difference between espoused values and enacted values?

Answer 4

Espoused: values the organization says it’s important to them

Enacted: values that actually operate in the organization and impact decision making

Organization’s culture is defined by its enacted values

Question 5

What are the 3 organizational culture dimensions? Explain with the iceberg paradigm

Answer 5

Under water iceberg = shared values and norms + shared assumptions

Above water iceberg = artefacts

Question 6

What are artefacts? Give the 4 categories

Answer 6

Visible signals and signs, observable manifestations

1. Stories/legends
2. Rituals/ceremonies
3. Physical structures/symbols
4. Language

Question 7

Give an example of apple’s artefacts concerning physical structures, language, rituals and stories

Answer 7

Physical: fancy apple stores
Language: iPhone, iPad: all start with i
Rituals: product launches are big shows
Stories: calculator design got perfected by annoying steve jobs

Question 8

What are organizational culture norms?

Answer 8

Informal rules and shared expectations of employee behavior

Question 9

What are the 7 categories of organizational cultures? Give a few characteristics of each

Answer 9

1. Innovation: experimenting, risk taking, few rules
2. Stability: predictable, secure, rules
3. Respect for people: fairness, tolerance
4. Outcome orientation: actions, high expectations, results oriented
5. Attention to detail: precise, analytic
6. Team orientation: collaboration, people oriented
7. Aggressiveness: competitive, low social responsibility

Question 10

What are 4 main problems of categorizing and culture models?

Answer 10

1. Oversimplification of diversity
2. Ignoring deeper shared assumptions
3. Culture isn’t shared by everyone, it’s blurry/fragmented
4. Existance subcultures

Question 11

What are organizational subcultures? What are the 2 types?

Answer 11

Cultures that can be differentiated from the dominant culture

Two types:
1. Parallel and supporting dominant culture
2. Counterculture: opposed dominant culture

Question 12

What are the 2 functions of subcultures? What is a risk?

Answer 12

1. Source of attentiveness and critical thinking: creativity: guard performance/ethical behavior
2. Source of info in order to adapt to changing environment –> long term survival

Risk = increase conflicts and dissension –> dysfunctional behavior

Question 13

What is the difference between rituals and ceremonies?

Answer 13

Rituals: programmed routines of daily organizational life that dramatize org. culture

Ceremonies: planned displays of org. culture, conducted specifically for the benefit of an audience, more formal than rituals

Question 14

Why is organizational culture a fundamental part for the success of organizations?

Answer 14

With the right culture they can be more effective

Question 15

What is strength of organizational culture and on what 3 things does it depend?

Answer 15

How deeply the organizational values are held by employees

1. How much employees understand and embrace dominant values
2. How much the culture is institutionalized and spread through artefact
3. The extent to which the culture is long-lasting and the values can be traced back in history of the company

Question 16

What are 3 contingencies/ on what do the benefits of culture strength depend?

Answer 16

1. Fit with the environment
2. Moderate, not cult like, strength
3. Adaptiveness

Question 17

What are 3 functions of strong culture?

Answer 17

1. Control system = culture is pervasive and operates non-consciously and can act as a vehicle for control of employees, automatic pilot working
2. Social glue = culture bonds people and make them feel part of the organization
3. Sense making = culture helps employees to make sense of what goes on a why things happen in the company

Question 18

What are 2 main outcomes of a strong culture?

Answer 18

1. Organizational performance
2. Employee well-being

Question 19

Why is an org. culture more effective when it aligns with the environment?

Answer 19

Employees are more likely to make decisions which are beneficial for that environment

Question 20

Why is an org. culture more effective when it’s not cult-like?

Answer 20

If culture is too strong it may become inflexible and intolerant of alternative subcultures

Question 21

Why is an org. culture more effective if it’s adaptive?

Answer 21

It can respond to changes in the environment

Question 22

An adaptive culture has a strong learning orientation. What is a learning orientation?

Answer 22

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 learning process

Question 23

What is the influence of org. culture on business ethics?

Answer 23

If promoting ethical behavior is part of org. culture, it’s likely the company has good business ethics

Question 24

What is a bicultural audit? What are 3 important things to establish?

Answer 24

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

Leaders can minimize cultural collisions by conducting this

1. Differences/similarities
2. Possible areas of conflict
3. Best plan for combining cultures

Question 25

What are 4 main strategies for merging different corporate cultures?

Answer 25

1. Assimilation 2. Dculturation 3. Integration 4. Separation

Question 26

What is assimilation in merging org. cultures? When does it work best?

Answer 26

When the acquired organization accepts the new culture. It works best when the acquired company has a weak culture and the acquiring company a strong one

Question 27

What is the difference between the acquired and acquiring company?

Answer 27

Acquired: company that is bought by the acquiring company

Question 28

What is deculturation in merging cultures? When does it work best?

Answer 28

Acquiring firm forces the other to accept its culture Rarely works, but it may be necessary when the acquired company has a dysfunctional culture and their employees aren't yet aware of it

Question 29

What is integration in merging cultures? When does it work best?

Answer 29

When 2 cultures are combined into one Works best if both companies have a weak culture or have overlapping values that can be improved

Question 30

What is separation in merging cultures? When does it work best?

Answer 30

Merging organizations maintain their own cultures and have minimal exchange of culture or organizational practices Works best when both companies are successful in their own culture

Question 31

What are 5 ways in changing and strengthening organizational culture?

Answer 31

1. Actions of founders and leaders 2. Align artefacts with the desired culture 3. Introduce culturally consistent rewards/recognition 4. Support workforce stability and communication 5. Use attraction, selection and socialization for cultural fit

Question 32

How can actions of founders and leaders change/strengthen org. culture?

Answer 32

Founder of the company sets the base of the company through their own values. Later, leaders need to strengthen, reinforce or change the culture

Question 33

How can aligning artifacts with desired culture change/strengthen org. culture?

Answer 33

Artefacts help to maintain and alter the culture

Question 34

How can introducing culturally consistent rewards/recognition change/strengthen org. culture?

Answer 34

Organization has to reward behavior that is in line with values of the organization

Question 35

How can supporting workforce stability and communication change/strengthen org. culture?

Answer 35

Strong culture depends on the employees and that is why it's important to have a stable workforce that understands and supports the company values Communication promotes the development of common language, shared ideas, stories and artefacts

Question 36

What is the ASA theory? What are the 3 aspects of it?

Answer 36

ASA: attraction-selection-attrition --> Organizations attract, select and keep employees whose values are in line with the org. culture Attraction: emphasize org. culture on job application, which leads to employee self-selection Selection: selected on the basis of how well they fit in Attrition: when an employee doesn't fit with the org. culture, employees tend to quit (if value incongruence is high)

Question 37

What phrase do executives rather use than culture fit and why(2)? How is this reflected in them hiring people?

Answer 37

Culture add, because: 1. They want to avoid a demographically homogenous organization. Culture fit screens out people with different backgrounds, but would actually fit well 2. People with identical values stifle constructive debate, creativity and adaptability Actually they steill attract and hire applicants whose personal values are similar to, rather than opposed to, the company's values

Question 38

What is organizational socialization?

Answer 38

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

Question 39

Which 2 things guide the process of organizational socialization?

Answer 39

1. Learning: employees need to have organizational comprehension (setting, dynamics, cultural environment) 2. Adjustment: employees need to adapt to novel work environment (develop new roles, adopt team norms, practice new behaviors)

Question 40

What is a psychological contract?

Answer 40

The individual feelings of obligation related to the reciprocal exchange between employee and organization

Question 41

What are the 2 types of psychological contracts?

Answer 41

1. Transactional: focus on short-term economic exchange, no commitment to organization 2. Relational: long-term commitments to organization that include mutual obligations

Question 42

What are the 3 stages of organizational socialization?

Answer 42

1. Preemployment socialization 2. Encounter 3. Role management Leads to socialization outcomes

Question 43

What is the stage of preemployment socialization and what happens in this stage (2)?

Answer 43

All learning and adjustment that occurs before the first day of work --> Learn about organization and job --> Form employment relationship expectations

Question 44

What is a problem in the preemployment socialization stage? (3)

Answer 44

Outsiders rely on indirect info about what it's really like to work in the organization. It's often distorted by conflicts in negotiations between employer and applicant Applicants also avoid asking questions about the organization in the beginning, because they want to give a good impression, impression management Employers can be hesitant to ask the applicants questions in order to avoid attrition

Question 45

What is the encounter stage of organizational socialization? Give 2 reasons why employees can experience reality shock?

Answer 45

When a new employee comes in contact with the organization Shock because: 1. Unmet expectations: employer doesn't deliver on their promises 2. Unrealistic expectations: employees have formed distorted work expectations in the pre-employment stage

Question 46

What is the stage of role management in organizational socialization? What are 3 things that happen in this stage?

Answer 46

It begins during preemployment socialization, but it's activated when employees are transitioning from newcomers to insiders - Strenghten work relationships - Practice new role behaviors - Resolving conflicts work/non-work activities and personal/company's values

Question 47

What are 4 types of conflict in the preemployment socialization stage?

Answer 47

1. Employer attracts applicants in such a way it conflicts with applicant's need to receive complete info for choosing best offer 2. Applicant's motivation for job conflicts with employer's need to receive complete info for choosing applicant 3. Employer attracts applicants in such a way it conflicts with their own need to receive complete info for choosing best applicant 4. Applicants are motivated to attract offers, which conflicts with their own need for complete info for choosing the best job

Question 48

What is a reality shock?

Answer 48

Stress that results when employee perceives discrepancies between their preemployment expectations and on-the-job reality

Question 49

How can an organization help improve the socialization process of new employees before and after hiring?

Answer 49

Before hiring: Realistic job previews (RJP): method of improving org. socialization in which job applicants are given a balance of positive and negative information about the job and work context After hiring: socialization agents, buddies

Question 50

What is an unintended effect of realistic job previews (RJP)?

Answer 50

It can scare some applicants, but it also leads to lower turnover and increased job performance and organizational commitment

Question 51

What are socialization agents? What is a very important agent?

Answer 51

Helpful coworkers, bosses or friends that help new employees adjusting to their jobs Coworkers: because they're easily accessible, can answer questions and serve as role models E.g. buddy system