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Strategy and Organisation Chapter 13 Summary: Organizational Culture
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A detailed summary of chapter 13 of the book: Strategy and Organisation of Utrecht University
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Chapter 13: Organizational CultureWhat is organizational culture?
A definition of Organizational Culture
Organizational culture refers to a system of shared meaning held by
members that distinguishes the organization from other organizations.
Organizational culture shows how employees perceive the characteristics
of an organization's culture, not whether they like them, thus,
organizational culture is a descriptive term. There are seven primary
characteristics that capture the essence of an organization's culture:
1. Innovation and risk taking: The degree to which employees are
encouraged to be innovative and take risks.
2. Attention to detail: The degree to which employees are expected to
exhibit precision, analysis, and attention to detail.
3. Outcome orientation: The degree to which management focuses on
results or outcomes rather than on the techniques and processes used
to achieve them.
4. People orientation: The degree to which management decisions take
into consideration the effect of outcomes on people within the
organization.
5. Team orientation: The degree to which work activities are organized
around teams.
6. Aggressiveness: The degree to which people are aggressive and
competitive.
7. Stability: The degree to which organizational activities emphasize
maintaining the status quo in contrast to growth.
Each of these characteristics exist on a continuum from low to high.
Appraising the organization on them, then, gives a composite picture of its
culture and a basis for the shared understanding members have about the
organization, how things are done in it, and the way they are supposed to
behave.
Do Organizations have Uniform Cultures?
Most large organizations have a dominant culture and numerous
subcultures. A dominant culture expresses the core values a majority of
members share and that give the organization its distinct personality.
Subcultures tend to develop in large organizations to reflect common
problems or experiences members face in the same department or
location.
Strong versus Weak Cultures
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