Chapter 16, Problem 1CR

Summary Introduction

To determine:

The meaning of organizational culture, and its common characteristics.

Introduction:

Organizational culture:

This is a system of shared meaning that is held by members which distinguishes the organization from other organizations.

Explanation of Solution

There are seven key characteristics that capture the essence of an organization’s culture.

1. Innovation and risk-taking: In such a culture where employees are encouraged to be innovative and risk-taking, employees are generally more flexible and adaptive.
2. Attention to detail: In an organization with this culture, employees will be expected to exhibit precision and analysis.
3. Outcome orientation: This depends on the degree to which the management prioritizes results and outcomes rather than the techniques used to achieve them. In such a culture employees and managers will be held accountable for the firm’s successes and there will be systems in place to reward employee output. Since there is such a high pressure on employees to perform, non-ethical behavior may be the norm.
4. People orientation: This depends on the degree to which management considers the effects that business decisions can have on employees. In a people oriented culture there is fairness and respect for individual employees because the firm believes employees to be its greatest asset.
5. Team orientation: This is the degree to which work activities are centered on teams rather than individuals. In a team-oriented culture the management will encourage cooperation among employees and will seek to build effective teams that have synergy.
6. Aggressiveness: This depends on the degree to which employees are encouraged to be aggressive and competitive in their business dealings, rather than easy-going.
7. Stability: This depends on the degree to which the organization emphasizes managing the status quo rather than pursuing growth. Such cultures are rule-oriented and predictable.