Chapter 8: Organizational Culture
Introduction 8-1
- Culture provides the foundation and framework for how work is accomplished and what
activities and practices are valued by its employees.
- Unwritten rules that can be central drivers of employee behavior and can even
override any formal rules or even organizational units.
- Dynamic
What is Culture? 8-2
- Culture: Provides employees with a road map and a set of rules for how work gets done
and how people interact in a company.
- Stability, consistency, meaning
- Elements helpful in deciphering organizational culture
- An appreciation for the company’s values and philosophy or purpose
- What are the announced principles and values? What is the purpose?
- An understanding of the group’s boundaries
- Rules for inclusion
- An understanding of the power structure in a company
- Identify rules for achieving, keeping, and losing power
- An understanding of the work rules and norms
- How do people in the organization interact?
- An evaluation of the company’s reward and punishment system
- Promotions, completion of important projects, milestones
- Behavior that is punished or ignored
Impact of Culture on Performance 8-3
- Byproducts of companies with strong cultures
- Quality products and services
- Innovative strategy
- Impeccable customer service
- Scandals
- Strong positive culture
- Can significantly contribute to the achievement of an organization’s strategic
goals and has been linked to better levels of performance, higher financial
metrics, and distinctive competitive advantage
- Greater role clarity
- Autonomous and consistent
- Advantages
- Decisions made will be in line with company goals and require less
coordination and monitoring
- Run more smoothly, quickly, and in a cost-effective manner
- Moral compass
- Lower levels of turnover
- Disadvantages
Introduction 8-1
- Culture provides the foundation and framework for how work is accomplished and what
activities and practices are valued by its employees.
- Unwritten rules that can be central drivers of employee behavior and can even
override any formal rules or even organizational units.
- Dynamic
What is Culture? 8-2
- Culture: Provides employees with a road map and a set of rules for how work gets done
and how people interact in a company.
- Stability, consistency, meaning
- Elements helpful in deciphering organizational culture
- An appreciation for the company’s values and philosophy or purpose
- What are the announced principles and values? What is the purpose?
- An understanding of the group’s boundaries
- Rules for inclusion
- An understanding of the power structure in a company
- Identify rules for achieving, keeping, and losing power
- An understanding of the work rules and norms
- How do people in the organization interact?
- An evaluation of the company’s reward and punishment system
- Promotions, completion of important projects, milestones
- Behavior that is punished or ignored
Impact of Culture on Performance 8-3
- Byproducts of companies with strong cultures
- Quality products and services
- Innovative strategy
- Impeccable customer service
- Scandals
- Strong positive culture
- Can significantly contribute to the achievement of an organization’s strategic
goals and has been linked to better levels of performance, higher financial
metrics, and distinctive competitive advantage
- Greater role clarity
- Autonomous and consistent
- Advantages
- Decisions made will be in line with company goals and require less
coordination and monitoring
- Run more smoothly, quickly, and in a cost-effective manner
- Moral compass
- Lower levels of turnover
- Disadvantages
