Questions and Answers
What are the two levels at which organizational culture exists?
Which of the following is considered an observable element of organizational culture?
What does a decentralized culture of control emphasize?
How do managers create a high-performance culture?
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What is the role of the balanced scorecard in organizational control?
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How does organizational culture contribute to business performance?
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What is a characteristic of organizations with strong cultures?
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Which component is NOT part of the feedback control model?
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What is a potential outcome of having a misaligned organizational culture?
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What should be included in an effective control system?
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Study Notes
Organizational Culture
- Defined as the shared values, norms, guiding beliefs, and understandings among members of an organization.
- Exists at two levels: visible artifacts (symbols, rituals) and underlying values (assumptions and beliefs).
- Reinforces the strategy and structure necessary for organizational success.
Types of Organizational Culture
- Four categories based on external/internal focus and stability/flexibility:
- Adaptability Culture
- Achievement Culture
- Clan Culture
- Bureaucratic Culture
Culture and Performance
- Organizational culture significantly impacts performance, with successful companies prioritizing cultural values.
- A high-performance culture encourages managers to be evaluated and rewarded based on their attention to these values.
Culture Strength and Subcultures
- Culture strength refers to the degree of consensus on specific values among members.
- Subcultures arise from common experiences and may cause conflicts, especially in mergers and acquisitions.
Creating a High-Performance Culture
- Managers play a crucial role in nurturing a performance-oriented culture.
- Encouragement of employee engagement, initiative, and commitment is essential.
Control Systems
- Effective control systems rely on feedback mechanisms.
- The feedback control model involves:
- Setting strategic goals
- Establishing performance metrics
- Comparing actual performance to standards
- Taking corrective actions as necessary
Hierarchical vs. Decentralized Control
-
Hierarchical Control:
- Focus on extrinsic rewards (pay and benefits).
- Operates with rigid culture and emphasizes compliance.
- Leads to high absenteeism and turnover.
-
Decentralized Control:
- Balances extrinsic and intrinsic rewards (meaningful work).
- Cultivates an adaptive culture, aligning individual and organizational goals.
- Promotes initiative, resulting in lower turnover.
Balanced Scorecard
- A comprehensive management tool that integrates financial and operational measures tied to success factors.
- Considers four perspectives:
- Financial Performance
- Customer Service
- Internal Business Processes
- Organizational Capacity for Learning and Growth
- Managers track key performance indicators (KPIs) derived from these perspectives to monitor progress.
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Description
Test your knowledge on Chapter 11 of 'Organization Theory and Design' by Richard L. Daft, focusing on organizational culture and control. This quiz will cover key concepts and theories that shape organizational behavior and management practices.
