6.1 Understanding and Assessing Organizational Culture

Organizational culture shapes how people think and act within a company. It's made up of shared values, beliefs, and practices that guide behavior and decision-making. Understanding these components helps leaders create a positive work environment.

Culture impacts performance in many ways. Strong, positive cultures boost employee motivation and teamwork, leading to better financial results. Weak cultures can hurt productivity and make it hard to adapt to change. Assessing culture helps identify areas for improvement.

Understanding Organizational Culture

Components of organizational culture

Top images from around the web for Components of organizational culture

• 

  Key Elements of Effective Organizations: Bridgespan’s Organization Wheel | Bridgespan View original

  Is this image relevant?

• 

  Key Elements of Effective Organizations: Bridgespan’s Organization Wheel | Bridgespan View original

  Is this image relevant?

• 

  Shaping Organizational Culture | Boundless Management View original

  Is this image relevant?

• 

  Key Elements of Effective Organizations: Bridgespan’s Organization Wheel | Bridgespan View original

  Is this image relevant?

• 

  Key Elements of Effective Organizations: Bridgespan’s Organization Wheel | Bridgespan View original

  Is this image relevant?

1 of 3

Top images from around the web for Components of organizational culture

• 

  Key Elements of Effective Organizations: Bridgespan’s Organization Wheel | Bridgespan View original

  Is this image relevant?

• 

  Key Elements of Effective Organizations: Bridgespan’s Organization Wheel | Bridgespan View original

  Is this image relevant?

• 

  Shaping Organizational Culture | Boundless Management View original

  Is this image relevant?

• 

  Key Elements of Effective Organizations: Bridgespan’s Organization Wheel | Bridgespan View original

  Is this image relevant?

• 

  Key Elements of Effective Organizations: Bridgespan’s Organization Wheel | Bridgespan View original

  Is this image relevant?

1 of 3

• Shared values guide decision-making and behavior within the organization
• Beliefs are underlying assumptions about how things work in the organization
• Norms establish unwritten rules and expectations for behavior
• Artifacts include visible manifestations of culture (symbols, rituals, language)
• Practices reinforce the culture through day-to-day activities and routines

Levels of organizational culture

• Surface level includes visible artifacts and observable behavior
• Espoused values are stated values and beliefs the organization claims to hold
• Basic underlying assumptions are unconscious, taken-for-granted beliefs that guide behavior
• Hofstede's cultural dimensions measure power distance, uncertainty avoidance, individualism vs. collectivism, masculinity vs. femininity, long-term vs. short-term orientation, and indulgence vs. restraint

Impact of culture on performance

• Strong, positive cultures enhance employee commitment, motivation, and job satisfaction
• Positive cultures improve teamwork and collaboration
• Innovation and creativity are fostered in positive cultures
• Customer satisfaction and loyalty increase with positive cultures
• Better financial performance and competitive advantage result from positive cultures
• Weak or negative cultures increase employee turnover and absenteeism
• Conflicts and communication breakdowns occur in weak or negative cultures
• Change and adaptation to new challenges are hindered by weak or negative cultures
• The organization's reputation and brand image can be damaged by weak or negative cultures
• Lower productivity and profitability result from weak or negative cultures

Methods for assessing culture

• Qualitative methods include observations, interviews, focus groups, and document analysis
  • Observations involve watching and documenting behavior, interactions, and artifacts
  • Interviews are in-depth discussions with employees, managers, and stakeholders
  • Focus groups facilitate group discussions to gather insights and perspectives
  • Document analysis reviews company materials (mission statements, policies, communications)
• Quantitative methods include surveys, organizational culture assessment instrument (OCAI), and Hofstede's cultural dimensions survey
  • Surveys administer questionnaires to measure cultural dimensions, values, and perceptions
  • OCAI assesses culture based on the competing values framework
  • Hofstede's survey measures national cultural differences
• Combining qualitative and quantitative methods provides a comprehensive assessment
• Analyzing data identifies patterns, themes, and areas for improvement
• Communicating findings and recommendations to stakeholders enables action planning and culture change initiatives