ch 8Organizational Culture and Performance

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Questions and Answers

What is a key characteristic of informal structures within an organization?

They can be changed easily without affecting the culture.

They evolve over time and are not formally documented. (correct)

They are always supportive of financial decisions.

They are clearly defined in the management practices.

How do founders influence organizational culture?

By enforcing assumptions that align with cultural values. (correct)

By focusing solely on the financial performance of the company.

By prioritizing short-term financial gains over cultural values.

By allowing everyone to make risky decisions.

Which of the following is NOT a role of organizational leaders in developing culture?

Enforcing strict adherence to bylaws. (correct)

Creating a challenging work environment.

Empowering employees to make independent decisions.

Rewarding achievements with nonpay perks.

What is a common way that organizational leaders encourage performance among employees?

By establishing a clear set of values and rewarding achievements. Signup and view all the answers

Which statement best describes the role of teams in organizational culture?

Teams function as a unit to foster cultural socialization. Signup and view all the answers

What type of culture is characterized by low intensity and high agreement?

Passive culture Signup and view all the answers

Which of the following describes the beliefs and values within an organization?

Meanings attached to artifacts Signup and view all the answers

What results from high intensity and low agreement within a cultural framework?

Competing forces Signup and view all the answers

Which element of organizational culture is considered to be most visible?

Artifacts Signup and view all the answers

What are assumptions in the context of organizational culture?

Unconscious beliefs of group members Signup and view all the answers

According to Reed Hastings, what reflects the actual company values?

Rewards and promotions given to employees Signup and view all the answers

In an organization, which combination is indicative of a strong culture?

High intensity, high agreement Signup and view all the answers

Which statement about cultural intensity and agreement is accurate?

Low intensity correlates with passive cultural expressions. Signup and view all the answers

How do teams directly impact organizational culture?

By encountering and solving big problems Signup and view all the answers

What is the ultimate goal of cultural socialization in an organization?

To achieve organizational commitment Signup and view all the answers

Which of the following is NOT a form of cultural socialization?

Economic incentive structures Signup and view all the answers

What process supports the integration of a founder's course of action into an organization's culture?

Testing and trial by employees Signup and view all the answers

How do leaders influence cultural socialization?

Via role modeling and reactions to incidents Signup and view all the answers

Which determinant of culture emphasizes the importance of people within the organization?

Leader characteristics Signup and view all the answers

What is a component of building organizational commitment?

Promoting compliance Signup and view all the answers

What is the role of stories and legends in organizational culture?

To reinforce shared beliefs and values Signup and view all the answers

What does a strong organizational culture promote in the workplace?

Clear ethical guidelines Signup and view all the answers

Which of the following describes subcultures within an organization?

Cultures that form around specific geographic or organizational units Signup and view all the answers

What aspect contributes to a firm's culture according to the roots of understanding it?

Group boundaries and power structure Signup and view all the answers

How does organizational culture respond to human needs?

By providing stability and meaning Signup and view all the answers

Which of the following statements is false regarding culture and performance?

Culture has no impact on ethical behavior. Signup and view all the answers

What is one of the key functions that organizational culture provides?

It serves as a guidance system for employee behavior. Signup and view all the answers

Which mindset focuses on the belief that skills and intelligence can be developed over time?

Growth mindset Signup and view all the answers

What is a potential benefit of having a strong organizational culture?

Improved team cohesion and performance Signup and view all the answers

What characterizes Tough-Guy, Macho culture?

An all-or-nothing approach with emphasis on individual success Signup and view all the answers

Which industries are likely to exhibit a Bet-Your-Company culture?

Pharmaceutical and oil & gas companies Signup and view all the answers

What is a challenge of Tough-Guy, Macho culture?

Difficulty adapting to slower-paced work styles Signup and view all the answers

How do employees in Process Culture typically experience decision-making outcomes?

Long periods before assessing the impact of decisions Signup and view all the answers

What is a defining trait of the cultures found in large capital-intensive industries like oil & gas?

High-risk decisions with long-term impacts Signup and view all the answers

In which culture is teamwork valued less than individual accomplishment?

Tough-Guy, Macho Culture Signup and view all the answers

What is an implication of working in a Process Culture for employees?

Delayed feedback on decision outcomes Signup and view all the answers

What aspect does not align with the values of Tough-Guy, Macho culture?

Rewarding slow and steady progress Signup and view all the answers

Study Notes

Organizational Culture

An organization's culture is the unique way its members think, feel, and act.
It acts as a roadmap and set of rules for how work gets done and how people interact.
Culture helps fulfill human needs for stability, consistency, and meaning.
It should be externally relevant to ensure successful adaptation to a changing environment.

Culture and Firm Performance

A strong culture can lead to improved performance, higher financial metrics, and a competitive advantage.
It promotes ethical guidelines, reducing the need for coordination and monitoring.
It clarifies roles by explicitly stating expectations.
Subcultures can form within a company, often based on geographic or organizational units.

Understanding Culture

To understand a company's culture, consider its values, philosophy, purpose, boundaries, power structure, work rules and norms, and reward and punishment system.

Impact of Values on Culture

The intensity and agreement surrounding shared values impact the strength of a culture.
Weak culture: low intensity, low agreement.
Passive culture: low intensity, high agreement.
Competing forces: high intensity, low agreement.
Strong culture: high intensity, high agreement.

Deciphering a Firm's Culture

Netflix CEO Reed Hastings emphasizes that true company values are reflected in behaviors and skills rewarded, promoted, and let go.

Levels of Organizational Culture

Artifacts (surface): Visible structures, processes, and languages. Examples include buildings, dress code, and office design.
Beliefs and values (below the surface): Meanings attached to artifacts.
Assumptions (farther below the surface): Unconscious beliefs that are deeply embedded and often not visible until challenged. These shape informal structures and develop over time.

Developing Culture

Role of founders: Establishing core assumptions, encouraging innovation, and managing risk anxiety.
Role of organizational leaders: Inspiring and empowering employees, rewarding achievement, creating a challenging environment, and adhering to values.
Role of teams: How they encounter problems, solve them, and perceive the effects of their solutions.
Cultural Socialization: The process of understanding how work gets done and how individuals should interact within an organization.

Cultural Socialization Process

Forms include: mission statements, physical space design, role modeling, reward systems, stories, leadership reactions, organizational design, and employee selection processes.

Determinants of Culture

People: Individuals within the organization.
Formal organization: Structure and systems in place.
Leader: Leadership style and behaviors.
Task requirements: The nature of the work tasks.

Building Organizational Commitment

Compliance: Adheres to rules to avoid getting punished.
Identification: Employees identify with the organization and its goals.
Internalization: Employees internalize the values and beliefs of the organization.

Culture Types

Academy: Focus on training and development, values expertise and qualifications.
Baseball: High performance, achievement-oriented, values competition and winning.
Club: Emphasis on social connections and loyalty, values tradition and longevity.
Fortress: High risk, values survival and strong leadership.
Work hard/play hard: Fast-paced, competitive, values customer service and achievement.
Process: Focus on efficiency, procedures, and consistency.
Tough-guy, macho: Values risk-taking, individual competition, and immediate feedback. Common in industries like entertainment, sports, and advertising.
Bet-your-company: Long-term focus with high-risk decisions and careful planning. Found in industries like pharmaceuticals, oil & gas, and architecture.

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Description

Explore the essential aspects of organizational culture and its significant impact on firm performance. This quiz delves into how culture shapes interactions, influences financial metrics, and contributes to the overall success of a company. Understand the relationship between values, performance, and cultural dynamics within organizations.