Understanding Organizational Culture in Strategic Management
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Understanding Organizational Culture in Strategic Management

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Questions and Answers

What is the term used to describe a desired end state or outcome that people seek to achieve?

  • Instrumental value
  • Terminal value (correct)
  • Norms
  • Organizational culture
  • Which culture framework is described as the community’s ability to pursue shared objectives quickly and effectively?

  • Cultures in companies
  • Solidarity-Sociability framework (correct)
  • Networked Decisions framework
  • Four Dimensions of culture
  • What type of culture is characterized by sincere friendliness and reciprocity among the members, no strings attached?

  • Fragmented culture
  • Networked culture
  • Mercenary culture
  • Communal culture (correct)
  • What is the disadvantage of a sociable culture as per the text?

    <p>Tolerance of poor performance</p> Signup and view all the answers

    Which type of organization lacks conscious organizational membership, identifies more with profession than organization, and is secretive about projects?

    <p>Fragmented organization</p> Signup and view all the answers

    What factor contributes to where an organization's culture comes from, according to the text?

    <p>Stock options, salaries</p> Signup and view all the answers

    What can culture be a source of, according to the text?

    <p>Competitive advantage</p> Signup and view all the answers

    What does the text imply about a company that lacks culture?

    <p>It lacks values, direction &amp; purpose</p> Signup and view all the answers

    What is culture all about?

    <p>Community</p> Signup and view all the answers

    What type of change does the text suggest cultural change can help tackle?

    <p>Business challenges</p> Signup and view all the answers

    What made a difference for Eco Lab Industrial cleaning company?

    <p>More learning/awareness of products and services</p> Signup and view all the answers

    What did Richard Anderson oversee after the Delta – Northwest merger?

    <p>Agenda</p> Signup and view all the answers

    What did Alan Mullelly's management team at Ford face?

    <p>25% loss in market share</p> Signup and view all the answers

    What was a result of the Ciba Geigy and Novartis merger, according to the text?

    <p>Clear metrics for gauging performance</p> Signup and view all the answers

    What is the primary focus of cultural change, according to the text?

    <p>Organizational structures and processes</p> Signup and view all the answers

    What did Edgar Schein define as organizational culture?

    <p>Community of people related to each other</p> Signup and view all the answers

    What did Dan Vasella emphasize after the Ciba Geigy and Novartis merger?

    <p>Decentralized decision making</p> Signup and view all the answers

    What was causing a negative impact on customer-centricity at Eco Lab, according to the text?

    <p>Expanding bureaucracy</p> Signup and view all the answers

    Study Notes

    Organizational Culture

    • A desired end state or outcome that people seek to achieve is termed a "vision".

    Characteristics of Cultures

    • An "achievement culture" is a culture framework that describes a community's ability to pursue shared objectives quickly and effectively.
    • A "sociable culture" is characterized by sincere friendliness and reciprocity among members, with no expectations of return favors.
    • A disadvantage of a sociable culture is that it can lead to a lack of accountability and poor performance.

    Types of Organizations

    • A "professional organization" lacks conscious organizational membership, identifies more with the profession than the organization, and is secretive about projects.

    Factors Influencing Organizational Culture

    • According to the text, an organization's culture comes from its founders, leaders, and industry.

    Importance of Culture

    • Culture can be a source of competitive advantage.
    • A company that lacks culture is implied to lack direction and cohesion.
    • Culture is all about how people work together, what they believe in, and how they get things done.

    Change and Culture

    • Cultural change can help tackle cultural and organizational differences that arise from mergers and acquisitions.
    • After the Delta-Northwest merger, Richard Anderson oversaw the integration of the two airlines' cultures.
    • Alan Mulally's management team at Ford faced a cultural change challenge in turning around the company.

    Leadership and Culture

    • After the Ciba Geigy and Novartis merger, Dan Vasella emphasized the importance of creating a new culture that combined the strengths of both companies.
    • Edgar Schein defined organizational culture as a pattern of shared basic assumptions that an organization learns as it solves its problems.

    Case Studies

    • At Eco Lab Industrial cleaning company, a cultural transformation helped to improve customer-centricity, which was being negatively impacted by a lack of accountability and respect among employees.
    • After the merger, Ciba Geigy and Novartis formed Novartis, a single, unified company with a new culture.

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    Description

    Explore the basics of organizational culture and its significance in strategic management. Learn about Edgar Schein's framework, the impact of culture on competitive advantage, crisis management, and company resilience.

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