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 (A)</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 (A)</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 (C)</p> Signup and view all the answers

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

<p>Competitive advantage (D)</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 (B)</p> Signup and view all the answers

What is culture all about?

<p>Community (C)</p> Signup and view all the answers

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

<p>Business challenges (B)</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 (C)</p> Signup and view all the answers

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

<p>Agenda (D)</p> Signup and view all the answers

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

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

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

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

What did Edgar Schein define as organizational culture?

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

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

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

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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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