Lecture 9: Digital Organizational culture Flashcards
(68 cards)
What is organizational culture critical for?
- Organizational effectiveness
- Competitive advantage
- Strategy
- Successful response to challenging environments
Collective meaning perspective
Organizational culture is “a complex set of values, beliefs, assumptions, and symbols that define the way in which a firm conducts its business” or “the patterns of shared values and beliefs that help individuals understand the organizational functioning and thus provide them with norms for behavior in the organization”. The core of this concept is shared values across organization members, reflecting the assumption that individual behaviours are constrained by cultural values.
Toolkit perspective
Rather than being constrained by culture, individuals have freedom to use cultural resources from the cultural toolkit to justify and construct their actions. Made up of:
- Cultural Resources: “Heterogeneous bits of culture that include widely recognized schematic identities, frames, roles, stories, scripts, justifications, and moralities” [[3]]
- Toolkit: “Sets or ‘grab bags’ of stories, frames, categories, rituals, and practices that actors draw upon to make meaning or take action” [[3]]
- Frames: Different people have access to different cultural resources (their “frames”) and use these to construct/justify actions [[3-4]]
This perspective assumes individuals are agentic (free to construct frames however they see fit) and choose actions based on salient frames [[4]].
Despite differences, both perspectives include values, though the toolkit perspective doesn’t assume these values are regulative
Digitalization
The process by which digital technologies transform social and organizational domains, restructuring or repurposing them around digital communication and media infrastructures. Key distinctions:
- Digitization: Converting analog data into bitstrings (1s and 0s)
- Digitalization: Transforming processes and relationships (e.g., Apple’s iTunes)
rom an organizational perspective, successful digitalization requires configuring/reconfiguring digital objects into digital resources to create value
Digital objects
Nonmaterial bitstrings carried by material or nonmaterial bearers (e.g., audio file on hard drive)
Digital resources
“A specific class of digital objects that:
(a) are modular,
(b) encapsulate objects of value, assets, and/or capabilities,
(c) are accessible by way of a programmatic bitstring interface”
Emancipatory functions
- Digital technologies facilitate inclusion and free expression
- Allow organization members with different values to contribute to cultural resources
- Enhance communication visibility for easier spread of cultural resources
- Can encourage value diversification (fewer shared values)
Hegemonic functions
- Enable powerful figures to shape public values
- Make some values more visible than others
- Allow leaders to share values more effectively
- Can intensify marginalization of certain values
- both natures demand new cultural perspectives that combine collective meaning and toolkit perspectives
Digital culture
“An organization’s overarching toolkits for using digital resources to transform practices of creating social and/or economic value”. Differs to IT culture which :Focuses on digital technologies as traditional material resources while Digital culture: Focuses on digital technologies as digital resources to transform business activities
Digital adhocracy culture
- Definition: Overarching toolkits for using digital resources to achieve flexibility to generate new products and ideas to lead the industry
- Cultural Resources: Empowering employees, asking for new ideas, fast temporary projects, dynamic business models, open-source competitions, highly risky innovation
Digital clan culture
- Definition: Overarching toolkits for using digital resources to achieve flexibility to unite members of the organization
- Cultural Resources: Crowdsourcing decision-making, collaboration-facilitating environments, scalable learning, displaying digital competency to employees, nurturing employees, attracting employees who understand business and digital technologies, distributed leadership
Digital market culture
- Definition: Overarching toolkits for using digital resources to compete effectively in the market
- Cultural Resources: Data-driven decision-making, digital experiments, muting highest-paid person’s opinion, encouraging 24/7 customer connections, employees as brand ambassadors online, precise simulations, data-informed marketplace domination
Digital hierarchy culture
- Definition: Overarching toolkits for using digital resources to achieve tight control and monitoring over the organization
- Cultural Resources: Monitoring and control enabled by digitalization, data security, data quality control, process standardization, accurate manufacturing and precise operations
Which 2 broad factors influence digital culture development?
-
External Environmental Factors:
- Digitalization in society
- Potential digital disruptions
- Environmental contingencies and institutional exemplars [[8-9]]
-
Internal Sociostructural Factors:
- Digital business strategy: Fusion between IT strategy and business strategy
- Digital leadership: Doing the right things for strategic success of digitalization
- Digital investment: Facilitating digitalization
- Digital infrastructure: Basic technological and organizational structures
What are the 3 scenarios of digital culture formation?
- IT culture → Cultural conflict → Digital culture (most likely)
- IT culture → Cultural conflict → Reversion to IT culture (unlikely, leads to company failure)
- Start with digital culture (typical for new startups)
Strategies for considering culture from different perspectives
- Sequential Strategy: View digital culture from one perspective first, then the other
- Parallel Strategy: Use both perspectives simultaneously to highlight differences and conflicts
- Bridging Strategy: Leverage similarities between perspectives to bridge them
- Interplay Strategy: Recognize contrasts and similarities among different paradigms
Digital disruptions
- Stable environment: Collective meaning perspective might be more appropriate
- Digitally disruptive environment: Toolkit perspective first, then see if repeatedly used resources crystallize into stable values
What are the practical implications of Grover et al?
- Looking at culture from a combined view can help managers nurture a culture that fosters successful digitalization
- The paper’s definition of digital culture and exemplary values/cultural resources can help managers build digital culture for their organizations
- Digital culture is fundamental to building theories on the digital age and understanding the transformative abilitiy
Why is AI transformative?
reshaping traditional work practices across various industries from manufacturing and healthcare to finance and retail [[1]]. As organizations leverage AI capabilities to automate routine tasks, enhance decision-making processes, and drive innovation, it’s important to understand that this integration is not merely technological but engenders profound changes in organizational cultures and work practice. AI integration can have far-reaching implications for organizational culture, including concerns about job displacement, skills obsolescence, and resistance to change
What is the problem statement of Murire et al?
There is a limited understanding of how AI integration into organizational work practices influences cultural transformation. Most existing studies focus on technical aspects of AI or its impact on productivity, overlooking broader cultural implications. Objectives:
1. Investigate the benefits of AI in organizational work practices
2. Analyze potential challenges and resistance during AI-driven cultural transformation
3. Develop recommendations for effective cultural transformation management
Why is Murire’s study significant?
Understanding the cultural implications of AI is critical for organizations seeking to leverage AI technologies effectively. This study:
- Explores the relationship between AI integration and organizational culture
- Informs strategic decision-making processes
- Contributes to the development of tailored change management strategies
- Examines ethical considerations and governance frameworks
- Empowers organizational leaders with actionable recommendations
How is AI reshaping organizational norms, values and engagement?
- Redefining roles and responsibilities
- Enabling employees to engage in complex problem-solving activities
- Shifting culture toward innovation and creativity
- Facilitating communication and collaboration through AI-powered platforms
- Increasing employee engagement and participation in decision-making
Challenges include: - Cultural resistance during AI integration
- Ethical considerations requiring frameworks for AI use
- Potential algorithmic bias despite AI’s ability to enhance diversity and inclusion
Which organizations are more likely to adopt AI?
AI adoption often encounters resistance when it threatens established practices or job security. Organizations with cultures of innovation and openness are more likely to successfully adopt AI compared to those with rigid hierarchical structures
What other research findings did Murire et al find?
- AI is transforming job roles and skill requirements toward more advanced technical and analytical competencies
- Automation of routine tasks has both positive and negative effects on employee morale
- Leadership roles are evolving, requiring adaptation to new technologies
- Ethical implications of AI in the workplace include transparency, fairness, and accountability concerns
- AI can optimize work processes but requires rethinking traditional workflows
- Human-AI collaboration is a critical area of study, with AI augmenting human capabilities rather than replacing them