thesis outline
TRANSCRIPT
CREATING A COLLECTIVE CORPORATE CULTURE:
A SMALL BUSINESS GUIDE TO MAXIMIZE PERFORMANCE
A Thesis Presented to the Faculty of the School of Education
University of San Francisco
In Partial Fulfillment of the Requirements of the Degree of
MASTER OF ARTS
in
ORGANIZATION AND LEADERSHIP
by
Wendy Jones
December 14, 2012
CREATING A COLLECTIVE CORPORATE CULTURE: A SMALL BUSINESS GUIDE TO MAXIMIZE PERFORMANCE
In Partial Fulfillment of the Requirements of the
MASTERS OF ARTS
in
ORGANIZATION AND LEADERSHIP
by
Wendy Jones
UNIVERSITY OF SAN FRANCISCO
December 14, 2012
Under the guidance and approval of the committee, and approval by all the members, this thesis has been accepted in partial fulfillment of the requirements for the degree.
Approved
____________________________ ________________
Chairperson Date
____________________________ ________________
Committee Member Date
Acknowledgements
I would like to express my sincere gratitude to my family for their continued support and
enthusiasm as I pursued my degree. I would like to extend a heartfelt thank you to my mother,
father, stepmother, grandparents, siblings and especially, Brian. You have always believed in me
and given me that extra nudge to pursue my dreams. I would not have been able to accomplish
this without you and our pups by my side.
I would like to recognize the faculty and staff at USF for their guidance and support as I
made my way along this journey, specifically Dr. Mitchell for your insight and motivation. I
would like to extend a final appreciation to my group of fellow scholars; Ashley Hanson,
Jennifer Ta and Jane Hackman, without our cohort I might have given up a few times or stayed
in bed on those early Saturdays. Thank you all for the amazing wall of support and love.
Abstract
The purpose of this project was to determine which three traits of corporate culture are
positively related to increased firm performance. Once the three winning traits were determined,
based on reviewed studies and existing literature, a survey was created to measure the degree that
the three specific traits exist in a current corporate culture. The researcher then created a
reference guide to teach organizations how to adopt the three specific traits into their corporate
culture in order to maximize firm performance. The three winning traits that are positively
related to firm financial performance are collectivism, adaptability, and culture strength.
Table of Contents
Acknowledgements ii
Abstract iii
Table of Contents iv
List of Tables vi
List of Figures vii
Chapter I - Introduction 1Statement of Problem 2Background and Need 3Purpose of Project 5Project Objectives 6Limitations 6Ethical Considerations 7
Summary 8
Chapter II - Literature Review 9Introduction 9Defining Collectivism 10Defining Corporate Culture 14Measuring Corporate Culture 18Corporate Culture and Ideal Culture Traits for Predicting Success 24Measuring Performance 34Limitations of Reviewed Studies 36Chapter Summary 40
Chapter III - Methodology 41Research Design 41Instrumentation 42Developing the Survey 43Developing the Handbook 48Summary 65
Chapter IV - Handbook 66
Chapter V - Summary, Conclusion and Recommendations 93Summary 93Conclusion 94Recommendations 95Concluding Thoughts 97
References 98
Appendices 102Appendix A: Peer Reviewers Handout 103 Appendix B: Measuring Collectivism, Adaptability and Strength 104 in Your Corporate Culture Survey
vii
List of Tables
Table 1: Major Domain Descriptors of Individualism and Collectivism 17
Table 2: Peer Reviewers’ Demographics 48
viii
List of Figures
Figure 1: Denison's Organizational Culture Model 22
ix
CHAPTER I
Introduction
The Hay Group, a global management consulting firm, states that due to globalization,
climate change, demographic shifts and the rise of the digital lifestyle, organizations will be
required to adopt new policies and ways of thinking to remain successful. The Hay Group's
regional director, George Vielmetter states, "To thrive in the future, leaders will have to become
more nimble and adaptable, guiding organizations to revolutionize their cultures, structures,
systems and processes” (Hay Group Report, 2011, para. 2). One such organization that has
remained successful through global changes is Hewlett Packard (HP); they have been
consecutively ranked in the top 50 producing firms of Fortune 500 companies since 1988 ("CNN
Money", 2011). According to Leo Apotheker, “technology is a brutal business, if you don’t
innovate and reinvent yourself, you will become obsolete.” (Leo Apotheker as cited in Forster,
2011, p. 23). HP continuously reinvented itself in order to remain in the global technology race.
In the 70 years since HP was founded, the company has seen numerous mergers and law suits,
and has been led by a handful of deficient CEO's (Forster, 2011), but something has made this
company outlast its competitors and has kept HP among the top 50 producing firms. Researchers
agree that this is due to the corporate culture, known as The HP Way, which founders Dave
Packard and Bill Hewlett based all operations on (Forster, 2011; Kotter & Heskett, 1992;
Truskie, 1999). HP's success is attributed to their exemplary culture model, one that other
organizations, not just in the technology field, can learn from.
Organizational culture, also known as corporate culture, sets the tone for how an
organization will operate and often dictates the generally accepted rules for daily conduct.
Specific traits of corporate culture have been linked to varying degrees of financial success
(Gordon & DiTomaso, 1992; Kotter & Heskett, 1992). In the 1980's, the success of many
x
Japanese companies raised attention of American firms seeking to be as effective. Several
researchers attributed the Japanese' success to certain humanistic values, "such as concern for the
well-being of employees and an emphasis on consensual decision making" (Wilderom, Glunk &
Maslowski, 2000, p. 195). Japanese corporate culture was defined as collective, where all
employees shared a concern for the greater good of the factory rather than their individual
achievements. Forsyth (2010) defined collectivism as a style "that emphasizes the primacy of the
group or community rather than each individual" (p. 67). The behaviors, values and assumptions
that make up the organization's culture have an impact on daily activities. Shared values and
beliefs about daily practices held by all organizational members can impact how effective, or
ineffective, the workplace is. HP was the subject of previous studies on corporate culture because
they possess a strong corporate model (Chaw & Kirkbride, 1987; Forster, 2011; Kotter &
Heskett, 1992). Japanese corporate culture in the 1980's, as well as The HP Way, are what
separated these organizations from lesser producing ones.
Statement of the Problem
The corporate culture of an organization may undermine strategy and performance if not
managed correctly. Executives, leaders and managers are interested in maximizing performance
and profits. Corporate policies and processes must be supported by a strong culture that is
aligned with the mission and vision statement of the organization to ensure success. New efforts
were undertaken in the last several decades by researchers and scholars to define and measure
corporate culture in order to determine the best practices in the workplace. A variety of industries
were studied, ranging from insurance firms to technology companies, in order to better
understand the components of a successful corporate culture. However, researchers do not agree
on the best tool for measuring corporate culture, or which combination of traits supports long-
term financial performance.
xi
Measuring and defining corporate culture is a difficult task due to the wide range of
definitions and parameters that exist for the term "culture". Corporate culture cannot be properly
managed and controlled by executives if they are unable to identify the term they are attempting
to manage. Researchers were challenged with the task to best define and measure corporate
culture, but not knowing which specific traits or characteristics to measure presented another
obstacle.
Researchers eventually identified a combination of culture characteristics to support the
hypothesis that specific traits are linked to positive organizational performance. However,
empirical evidence supporting the organizational culture-performance link vary in all aspects of
the research: from population size of the sample firms, number of respondents and ranks within
each firm, the performance measures, to the many different culture dimensions. Few studies
agreed which characteristics of corporate culture were related to sustained performance.
Only a handful of studies replicated previous research in order to confirm which culture
traits supported performance. However, once the specific traits were identified, organizations
were now faced with the problem of determining how to adapt their current culture to include the
winning traits. There are a multitude of instructional materials to educate managers on how to
become better leaders, but managers and leaders lacked a comprehensive guide instructing them
on how to adapt their current culture to include the winning traits.
Background and Need
Executives and managers of companies participating in mergers and acquisitions became
aware that opposing organizational cultures could have the ability to weaken performance and
sought out ways to employ cultural change to improve cooperation. "Under these pressures for
application, a variety of new efforts were undertaken to measure culture through survey research
and quantitative analysis. These efforts were closely associated with increasingly formal
xii
typologies of culture and the correlation of cultural `types' to specific organizational pathologies"
(Schulman, 2001, p. 238). According to Schulman (2001), less than half of all mergers met
intended financial expectations. Incompatible cultures prevented the successful combination of
two distinct cultures becoming one. In fact, organizations began performing culture audits to
determine compatibility before making a commitment (Truskie, 1999). Varying culture types
implies that there are strong cultures and weak cultures, as well as ineffective and effective
cultures. Aligning the right culture with the goals of the organization will ensure productivity
and support economic growth.
A variety of measurement tools exist to measure different aspects of culture and a range
of researchers presented solutions on how to best define and measure corporate culture. Most
researchers agree that performance is easily measured by financial parameters and that culture
can be measured by the degree that certain dimensions, or traits, are present within a culture
(Denison, 1990; Denison & Mishra, 1995; Gordon & DiTomaso, 1992; Kotter & Heskett, 1992;
Petty, Beadles, Lowery, Chapman, & Connell, 1995). The problem lies in that countless financial
parameters and culture dimensions exist.
One solution was to measure culture along the individualism-collectivism spectrum. The
many cultural dimensions included in past research, such as involvement, consistency,
adaptability, mission, strength of culture, teamwork and performance goals, inherently fall
somewhere along the collectivism-individualism scale. Although the United States is
traditionally individualistic in nature (Forsyth, 2010), 21st century corporate leaders are adopting
collectivist styles, such as team-based work with an emphasis on group goals rather than on
individual goals, into their corporate cultures because collective processes promote cooperation
and productivity, and prevents destructive conflict and opportunism (Denison, as cited in
xiii
Sackman 2006; Goncalo & Staw, 2005; McGrath, 1997).
By identifying the advantages of a strong, collective culture, organizational leaders can
make an educated decision on which traits and culture dimensions to adopt into their corporate
culture. Significant questions arise from studies that demonstrate that certain culture traits lead to
stronger financial performance, such as which traits are more likely to lead to success and how to
implement these traits. This project reviewed the relationship between collectivism, adaptability
and culture strength and their impact on an organization's performance. Managing and
understanding corporate culture is another tool for managers to apply to ensure a firm's success.
While most empirical studies examined in this paper presented evidence that supported
why specific traits were positively related to sustained performance, specific guides and
instructions on how to adopt these traits were missing from the literature. Therefore, an extensive
review of scholarly writing on how to increase collectivism, adaptability and culture strength was
undertaken. Through specific activities and exercises, both in the workplace and out of the
workplace, managers and executives can implement steps to ensure their culture is operating at
maximum efficiency.
Purpose of the Project
The purpose of this project was to identify and validate the traits of corporate culture,
specifically those collective in nature that can be adopted to enhance firm performance. Through
a review of empirical studies on the corporate culture-organizational performance link, the
researcher identified which characteristics of corporate culture are related to sustained, or
increased, levels of profitability. The researcher then created a survey tool to measure the extent
that an existing corporate culture possessed elements of collectivism, adaptability, and the degree
of culture strength to determine which of the three traits were absent. Next, a handbook with
guidelines demonstrating how to implement these traits into a culture was developed. The
xiv
theoretical foundation and framework for this study was grounded in Shulruf, Hattie and Dixon's
(2003) model of collectivism which defines the major domain descriptors of individualism and
collectivism. Shulruf et al. (2003) presented eight descriptors of collectivism: related, belong,
duty, harmony, advice, context, hierarchy and group. If an organization values the eight
descriptors and attempts to include them in their daily operations, then they can be said to have a
collective culture. Shulruf et al. (2003) created the Auckland Individualism Collectivism Scale
(AICS), a reliable survey tool that served as the reference for the survey.
After an extensive literature review, the researcher then created a handbook that
presented guidelines on how to create a corporate culture that embraces these characteristics. In
discovering which corporate culture characteristics are predictors of firm success, future
organizations can effectively make a decision on which corporate culture model best suits their
goals in order to be as successful as possible in their industry. The collectivism versus
individualism distinction has profound implications for the culture identity which organizations
develop and are defined by.
Project Objectives
The researcher created a measurement tool and a handbook to guide 21st century
organizations in creating a collective culture. The researcher answered the following questions to
aid in the creation of the survey and handbook:
1. How is corporate culture best defined and measured?
2. What traits of corporate culture are related to productivity and firm effectiveness?
3. How would an organization adopt these traits into their corporate culture?
Limitations
Several limitations of this project should be mentioned. The first limitation is in the
survey method; the quantitative method does not allow for in-depth discoveries on the
xv
underlying assumptions of employees surrounding beliefs, values and norms. In order to achieve
the most accurate description of an organization's culture, both quantitative and qualitative
methods should be combined (McMillan, 2012). In addition, the survey questions could prime
employees to be in a certain mind set, and therefore respond in a specific manner. Another
limitation is with the research design; the survey was not field tested for validity.
A third limitation of this study is that this project does not discuss the role of the leader in
the formation of a new corporate culture. Through the literature review, it became apparent that
possessing a strong leader was not one of the predominant traits that was linked to corporate
success. However, a strong leader is still essential to the process of altering the current culture.
The survey and handbook require that the leader of the organization be well prepared, respected,
experienced and capable of taking his or her organization into a new era. If the leader of the
organization is not considered effective, then an outside consultant or another manager would
need to implement the changes. Collins (2001) stated that great companies are lead by modest,
devoted leaders who strive to do better every day. Modest, competent leaders can lead their
organizations successfully. However, an ill prepared, incompetent leader could fail to properly
administer the survey or implement the activities laid out in the handbook, and therefore would
impact the efficiency of the survey and guide.
Ethical Considerations
When conducting the research for this project, the researcher adhered to established
ethical guidelines for conducting studies (McMillan, 2012). The local Internal Review Board
was not contacted because the scope of this project did not include interaction with or an
intervention with humans (McMillan, 2012). Neither the survey nor handbook were distributed
to participants; therefore, due to the lack of interaction, IRB approval was not required.
xvi
However, risks to the peer reviewers were minimized by using aliases and ensuring
confidentiality. The purpose of the peer review was clarified to the reviewers, and the reviewers
were protected from any physical or mental discomfort, harm and danger. Participation as a peer
reviewer was also voluntary.
Summary
A firm can maximize their performance if their corporate culture emphasizes beliefs and
values that align with their corporate goals. Past research found a positive relationship between
certain traits of corporate culture, specifically collectivism, adaptability and culture strength, and
increased levels of profitability (Denison & Mishra, 1995; Gordon & DiTomaso, 1992; Jain,
1998; Kotter & Heskett, 1992). By adopting collective practices that support an adaptable and
strong culture, an organization can maximize their performance. Due to the fact that past
research did not agree on one universally accepted tool to measure corporate culture, the
researcher created a new tool, specifically aimed at measuring the degree of each of the three
winning traits: collectivism, adaptability and culture strength. The survey tool will allow
managers to determine which of the three traits are missing in their current culture. The
researcher then created a guide that managers can reference in order to learn how to adopt the
missing traits into their current culture.
In Chapter two, the researcher presented the published literature on research linking
corporate culture to performance, as well as reviewed studies that found a relationship between
specific traits and increased performance. Chapter three discussed the methodology and the
steps in creating the survey and the handbook. Chapter four presented the handbook. Finally,
chapter five discussed the summary, conclusion and recommendations for future research.
xvii
Chapter II- Literature Review
Introduction
A great deal of the existing literature on corporate culture suggests that identifying the
cultural identity of an organization can be a key component in predicting the future success and
performance of that corporation (Denison, 1984; Denison & Mishra, 1995; Gordon & DiTomaso,
1992; Jain, 1998; Kotter & Heskett, 1992). A portion of the research in the 1980's was concerned
with developing the instruments to measure, as well as to define, corporate culture (Hui, 1988;
Wagner & Moch, 1986). Since the 1980’s, research shifted focus to explore the relationship
between corporate culture as a measure of future performance levels of an organization
(Denison, 1984; Gordon & DiTomaso, 1992; Kotter & Heskett, 1992), as well as updating the
established instruments to reflect the changing times (Shulruf et al., 2011). The literature review
will define collectivism, define corporate culture and review how corporate culture has been
measured in past research. Through the literature review, it will become apparent which traits of
corporate culture are ideal for predicting future success; this section will also review how
performance and success was previously measured. Finally, the chapter summary will review the
literature on culture as a predictor of firm performance.
Hofstede (1980) identified five dimensions of culture: power distance, uncertainty
avoidance, individualism, masculinity and long-term orientation. Several researchers argued that
the individualism-collectivism dimension is the most important distinguishing dimension among
cultures (Hui & Triandis, 1986; Triandis, 1995). The individualism-collectivism dimension
reflects the degree to which an individual is inclined towards team work and accommodating of
other's views. This dimension plays a role in conflict resolution more so than the other
dimensions.
Researchers recognized that corporate culture can be measured on degrees of collectivism
xviii
or individualism, and that the degree to which an organization relates to either end of the
spectrum can assist in defining the corporate culture of that organization (Denison, 1984;
Goncalo & Staw, 2004; Gordon & DiTomaso, 1992). Several instruments for measuring
collectivism and individualism developed over the last several decades include: IND-COL (Hui,
1988), the Horizontal-Vertical Collectivism-Individualism scale (Singelis & Triandis, 1995),
Self-Construal Scale, or the SCS, (Singelis, 1994) and the Auckland Individualism and
Collectivism Scale, or the AICS (Shulruf et al., 2007). While all of these measurements were
applied to individuals across a variety of cultures, only a few were applied to individuals within a
single corporation in order to assign a level of collectivism or individualism to that organization.
The organizations involved in past studies on the subject included a variety of industries, from
insurance firms (Gordon & DiTomaso, 1992) to janitors and craftsman (Wagner & Moch, 1986).
It was speculated that HP’s exemplary corporate culture, The HP Way, was a predictor of the
company’s long-term success (Forster, 2011; Kotter & Heskett, 1992). Due to the ever-evolving
nature of technology and the intricacy of globalization, empirical studies on the transformation of
corporate culture will always have a valid place in the realm of research.
Defining Collectivism
According to research, US organizations are adopting more collective based practices in
the 21st century, thus requiring employees to understand how to meet the demands of a
cooperative environment (Day, Gronn, & Salas, 2006). A shift occurred, demanding
organizations adopt a collective mindset to productively work in this new environment, away
from traditional individualistic ways of thinking. Day et al. (2006) stated that the trend towards
forming collective identities in teams and recognizing more collective forms of leadership is
becoming more widespread. Research found that cooperative efforts reduce social loafing and
xix
increases cooperation, resulting in stronger identification with the work group (Denison, as cited
in Sackman, 2006; Goncalo & Staw, 2004). However, the researchers go on to state that
collectivist values can sometimes stifle creativity.
Collective members define themselves as part of the group, and they value harmony and
long-term relationships (Truskie, 1999). Members of collective groups feel like they belong and
share positive emotions such as closeness and acceptance. There is more concern for the
collective interests of the group. The foundation of the cooperative culture is "trust, caring for
one another, helping one another, and sharing" (Truskie, 1999, p. 8). Developing lasting
relationships is a concern for collective members. They are more focused on creating a safe,
friendly environment and maintaining a relationship than with immediately accomplishing tasks.
Interpersonal conflicts are dealt with openly and cooperatively. Collective team members value
information sharing and participative decision making. The practiced collective team realizes the
value in diverse opinions and constructively uses the differing viewpoints to add value to their
team. Collective teams form a bond with their organization and in return cooperative
organizations have a deep commitment to their members (Truskie, 1999). Collective members
value kindness and generosity, tend to be tactful and cooperative, and show concern for the
welfare of other group members.
Work groups that operate with collective tendencies are more effective than those that
value individualism (Denison, as cited in Sackman, 2006; Petty et al., 1995; Sheridan, 1992).
Researcher Swaidan (2012) used Hofstede's model of culture and Muncy and Vitell's (as seen in
Swaidan, 2012) consumer ethics model to prove that peopled who scored higher on the
collectivism dimension were more likely to hold higher ethical standards. The participants of
Swaidan's (2012) study were 761 African American consumers who received a written survey at
xx
different shopping centers. The researcher asked questions to determine the participant's cultural
description along the level of collectivism-individualism, masculinity, power distance and
uncertainty avoidance. Swaidan found significant differences in ethics between consumers who
scored high on Hofstede's cultural dimensions versus those who scored low. Swaidan (2012)
found that "consumers who are high in collectivism, high in uncertainty avoidance, low in
masculinity, and low in power distance reject questionable activities more than consumers who
are low in these areas" (p. 210). This study supported the hypothesis that people who measured
high in collectivism were more sensitive to ethical dilemmas. It follows that these individuals
would be more honest because they would be more likely to reject questionable activities.
Goncalo and Staw (2004) defined people in collectivistic cultures as those who "view the
self as inherently interdependent with the group to which they belong" (p. 97). In collective
cultures, the primary goal of the individual is to promote the interests of the group above all
personal wants and desires. "There is a greater emphasis on meeting a shared standard so as to
maintain harmony in one's relationship to the group" (Goncalo & Staw, 2004, p. 97). Individuals
in collective work groups are not motivated to gain attention by competing and standing out from
the group, but strive for self-improvement through the well being of the larger group. Degrees of
collectivism and individualism can vary within the same culture but across different social units.
The same can be said for the cultures adopted by organizations. An organization within an
individualistic society can adopt collective practices. Chatman and Jehn (as seen in Goncalo &
Staw, 2004) studied collective firms and found them to place greater emphasis on organization-
wide objectives rather than at the individual level, resulting in greater efforts for cooperation
among employees in achieving the collective goals.
Goncalo and Staw (2004) stated that creativity offers a competitive edge in business and
xxi
should be encouraged. However, creative ideas are often novel ideas that may stray from the
group's original vision. Therefore, creativity can be viewed as deviant and receive negative
evaluations in a collective culture. To test the impact of collectivism on levels of creativity in
groups, Goncalo and Staw (2004) designed a study with 204 students from an American
University split into 68 groups with three members each. In the first part of the study, the group
participated in a survey that primed them for either a collective or individual mindset. In the
second part of the study, the group was asked to brainstorm as many solutions to a problem as
they could think of and were instructed to either be creative or practical. In the third stage of the
study, the group chose the most creative or practical solution. Blind coders were then asked to
rate each group on their degree of collectivism or individualism based on their survey responses
and their corresponding levels of creativity based on the number of divergent ideas generated in
part two of the study. Goncalo and Staw (2004) found that individualistic groups were more
creative when instructed to be. However, there was no difference in the number of generated
results for practical solutions between the collective and individual groups. According to
Goncalo and Staw’s (2004) study, collective work groups would be better suited for tasks
requiring practical, not creative, skills. Although collective groups result in greater cohesion and
commitment to group goals, when faced with a task that requires creativity, an organization
would benefit from adopting individualistic processes to successfully complete the task.
Summary
Collectivism has been defined in many ways; originally as a descriptor of a culture trait
by Hofstede (1980), it can now be applied as a descriptor of organizational culture. Collective
cultures, both globally and within an organization, operate more efficiently by placing the
group's goals above their own interests, thus accomplishing group-oriented tasks more
xxii
effectively. Collective individuals are more sensitive to ethical dilemmas and are more
committed to their organization. Collective members value traits such as inclusion, harmony,
caring, trustworthiness, and seek to form lasting relationships with those around them. Jain
(1998) found that organizational cultures that were characterized by traits often associated with
collectivism, such as collective decision making, shared values and shared purpose, were among
the characteristics of high performing cultures.
Defining Corporate Culture
Corporate culture is often implicit and the norms that develop in the workplace can be
hidden to an outside view. Therefore measuring an intangible object became the task of
researchers. To develop a means of measuring the varying degrees of corporate culture, first
researchers had to define the terms they were set out to measure. Denison (1984) defined
“corporate cultures…as the set of values, beliefs, and behavior patterns that form the core
identity of an organization” (p. 5). Van den Berg and Wilderom (2004) preferred the term
organizational culture, rather than corporate, and defined the term as the shared perceptions of
work practices that can differ between levels, departments and organizations. Corporate culture
develops over time as organizations discover best practices for operations. The embedded culture
of the organization sets the tone for everyday decisions and processes, and is understood by all
employees. Through training, social learning, socialization and observations, new employees
begin to understand the culture that is shared among co-workers as they realize the behavior
patterns that are acceptable in the workplace.
The culture of an organization shares normative information; meaning and value are
placed with objects to reinforce the way people behave and think (Cooke & Rousseau, 1988).
Employees derive meaning from observed patterns in the work place. The development of a
xxiii
single culture is a top down process; the leader of the organization determines which values and
beliefs they wish to be present in their operations. Through the leader's behaviors and policies,
employees learn what is expected of them and how they will be rewarded for positive behavior
(Cooke & Rousseau, 1988).
Subcultures are a natural development due to the tendency for organizations to operate
across different departments and levels. Subcultures hold the same beliefs and values as the
dominant culture, but may have different practices for behavior (Cooke & Rousseau, 1988). A
production department often has a different culture from the sales department; the production
employees value technical efficiency and inter-dependency, whereas sales employees often value
fast paced output and individual profitability (Cooke & Rousseau, 1988). A leader who values
individualism and encourages individual goal setting will create a culture of competition among
his or her employees as each person is set out to accomplish their goals to maximize personal
gain.
While Hofstede (1980) differentiated among global cultures based on differences in
values, organizational culture was defined more among differences in practices (Hofstede, 2001;
Van den Berg & Wilderom, 2004). Several empirical studies defined corporate culture in terms
of the degree that the culture emphasizes individualism or collectivism in daily operations and
goal achievement (Shulruf et al., 2011; Wagner & Moch, 1986), other studies used descriptors of
individualism or collectivism to describe the corporation's identity (Denison, 1984; Gordon &
DiTomaso, 1992). Shulruf et al. (2011) associated "independence, goals, competition,
uniqueness, private, self-knowing, and direct communication" (p. 174) as relating to
individualism and "relatedness, belonging, duty, harmony, advice seeking, context dependent,
hierarchical, and group oriented" (p. 174) as relating to collectivism. Wagner and Moch (1986)
xxiv
differentiated between individualism and collectivism in the corporate world by defining
individualism as any action which "presumed the importance of self-interest... (and) cooperation
is motivated by the contingent satisfaction of personal interests" (p. 281). According to Wagner
and Moch (1986), performing a task in a group solely to earn an individual reward would not
constitute a collective environment. The researchers defined collectivism as "a condition in
which cooperation stems from the pursuit of interests shared among the members of a
collectivity" (Wagner & Moch, 1986, p. 282).
In their study on corporate culture, Gordon and DiTomaso (1992) rated participants on
levels of shared goals, decision making, communication, risk-taking, accountability, action
orientation, fairness of rewards, and development and promotion from within. Fundamentally,
the degree to which a person agrees with or feels strongly about the actions which fall in the
mentioned categories can determine if an individual's preferences tend to be more about their self
gain or more towards the collective group. If an individual values independence, competition and
prefers self sufficiency, they would rate high on the individualism scale. However, if the person
values a sense of belonging and harmony and enjoys being part of a group, they would rate
higher on the collectivism scale. Table 1 displays the key word descriptors reported by Shulruf et
al. (2003) when developing a new measurement tool for individualism and collectivism. They
used eight domains to describe collectivism and seven domains for the individualism descriptors.
The sample items were designed to be straight forward and not double ended. The eight
collectivism domains were based on established traits that define collectivism and were based on
Hofstede's (1980) culture model.
xxv
Table 1
Major Domain Descriptors of Individualism and Collectivism (Shulruf et al., 2003)
Individualism
Domain name Description Sample Item
Independent Freedom, self-sufficiency, and control over one’s life
I tend to do my own thing, and others in my family do the same.
Goals Striving for one’s own goals, desires, and achievements
I take great pride in accomplishing what no one else can accomplish.
Compete Personal competition and winning It is important to me that I perform better than others on a task.
Unique Focus on one’s unique, idiosyncratic qualities
I am unique—different from others in many respects.
Private Thoughts and actions private from others
I like my privacy.
Self-know Knowing oneself; having a strongidentity
I know my weaknesses andstrengths.
Direct communicate
Clearly articulating one’s wants and needs
I always state my opinions very clearly.
Collectivism
Domain name Description Sample Item
Related Considering close others an integral part of the self
To understand who I am, you must see me with members of my group.
Belong Wanting to belong to and enjoy being part of groups
To me, pleasure is spending timewith others.
Duty The duties and sacrifices being agroup member entails
I would help, within my means, if a relative were in financial difficulty.
Harmony Concern for group harmony and that groups get along
I make an effort to avoid disagreements with my group
members.Advice Turning to close others for decision
helpBefore making a decision, I always
consult with others.Context Self changes according to context or
situationHow I behave depends on who I am
with, where I am, or both.Hierarchy Focus on hierarchy and status issues I have respect for the authority
figures with whom I interact.Group A preference for group work I would rather do a group paper or lab
than do one alone.
xxvi
Summary
Corporate culture is an implicit development overtime and thus presented a challenge to
define. Researchers defined organizational culture in terms of characteristics that the culture
possesses as well as in terms of the degree of individualism or collectivism present in the
organization. Different organizations were characterized by the values they hold as important, as
well as differences in daily practices. Due to the large database of traits, researchers have not
always agreed on the best definition of corporate culture. A reoccurring theme present in the
literature defines corporate culture as the accepted beliefs, values and norms that lead everyday
interactions and processes in the work place.
Measuring Corporate Culture
As there are a multitude of definitions of corporate culture, a generally accepted
framework does not exist to measure and compare cultures comprehensively (Wilderom et al.,
2000). Researchers studying organizational culture often combined existing tools of
measurement to create a new instrument to measure corporate culture specific to their study.
While there are a handful of reliable measurement tools that are known worldwide, such as
Cooke and Rousseau's (1988) Organizational Culture Inventory (OCI) and Denison's (as cited in
Sackman, 2006) Organization Culture Model, researchers become adept at combining methods
to produce new tools to measure corporate culture. Van den Berg and Wilderom (2004) asserted
that to enhance the opportunity for comparison between cultures, "one may better focus on the
degree of sharing certain aspects of employees’ day-to-day organizational work practices" (p.
573). Truskie (1999) stated that a culture can be measured by studying the organizations
artifacts, such as the dress code, workplace layout, the value of the members and their underlying
assumptions. While Truskie's (1999) first method was more time consuming and complicated, he
xxvii
stressed the L4 model assessment as a more viable option. The first step of the L4 Model was to
conduct interviews and discussions to determine the extent that leaders and members felt that the
elements of each of the four cultural patterns, cooperation, inspiration, achievement and
consistency, were present within their organization. Members stated the extent that each trait was
present on a Likert scale, from "a very great extent to a very little extent" (Truskie, 1999, p. 48).
The second step to Truskie's cultural assessment was to verify the cultural patterns reported by
employees. Mechanisms included reviewing "organizational design and structure, systems and
procedures, and programs and processes" (Truskie, 1999, p. 48). Leaders then compared steps
one and two to see if there was agreement between the sources. Truskie asserted that recognizing
which culture pattern was absent could assist the leader in creating a counterbalance strategy.
Researchers argued that quantitative descriptors of organizational culture are less
effective than qualitative methods involving observations, archived materials and field
experimentation (Van den Berg & Wilderom, 2004). However, Petty et al. (1995) asserted that
measuring culture is better done by combining qualitative and quantitative methods, through
descriptions and categories as well as through observations and questionnaires. Cooke and
Rousseau (1988) agreed that the best tool combines both methods as they are complimentary
approaches. Qualitative methods create rich descriptions of a particular phenomenon as
described by the members of the organization. Quantitative methods allow for cross sectional
comparisons and assessments (Cooke & Rousseau, 1988). The Repertory Grid Technique is one
such measurement tool that combined qualitative and quantitative methods (Krafft, as cited in
Sachman, 2006). This technique provides a framework for conditions that are needed for an
effective change program. However, the Repertory Grid Technique creates an individualized
picture for the surveyed organization and does not allow for generalizing across industries.
xxviii
Wagner and Moch (1986) used Breer and Locke’s 83-item questionnaire as a conceptual
basis to create their own hybrid instrument to measure the varying degrees of individualism-
collectivism in four non-academic organizations in a Midwestern University. Similar to Breer
and Locke (as seen in Wagner and Moch, 1986), the new instrument measured beliefs, values
and norms, but adjusted the items on the 7-point Likert scale questionnaire to include 34
questions. The questionnaire instructed participants to state their position on how their
organization handles every day interactions and processes in order to assign a degree of
individualism or collectivism to each organization. Wagner and Moch (1986) validated their
results by comparing expected values of inter-item correlations with the actual observed
correlations. This study found that many employees in the maintenance and craft associations
held individualistic values, but not necessarily individualistic beliefs and norms. However,
craftspeople viewed their association on the whole as more collective (Wagner & Moch, 1986).
Petty et al. (1995) combined quantitative and qualitative methods to develop a 55-item
survey to measure corporate culture. They first collaborated with employees to discover what
behaviors they believed should be occurring in their environment and were reflective of the
company's core values. Sackman's (2006) Culture Assessment also used employee focus groups
to determine defining characteristics of the existing culture. Petty et al. (1995) administered their
survey to 832 employees in 12 organizations in the electric utility industry; the same survey was
administered one year later to 842 employees in the same 12 organizations. The survey measured
culture along four dimensions: teamwork, trust and credibility, performance and common goals,
and organizational functioning (Petty et al., 1995). Sackman's (2006) data collection consisted of
interviews and workshops with top managers, analysis of documents, monitoring and informal
talks with all levels of employees. Petty et al. (1995) asked employees to rate their extent of
xxix
agreement on observed behavior representing the four dimensions, from strongly agree to
strongly disagree. Responses were averaged for each organization and compared to performance
data from year one and year two. Sackman's (2006) Cultural Assessment recognized areas in
need of improvement, and aided in creating an action plan. Like the Repertory Grid Technique,
the Cultural Assessment model does not allow for comparisons because the descriptors were
developed specifically for the surveyed organization.
Cooke and Rousseau's (1988) Organizational Culture Inventory, the OCI, is a self-
scoring, multilevel diagnosis tool based on 12 thinking styles. Cooke and Rousseau's (1988) 12
interpersonal and task-related styles are humanistic-helpful, affiliative, approval, conventional,
dependent, avoidance, oppositional, power, competitive, competence/ perfectionist, achievement,
and self actualizing. Surveyed participants were asked to rate the level that each behavior on the
scale would help them "fit in and meet expectations in their organization" (Cooke & Rousseau,
1988, p. 257). Like Denison's Organizational Culture Model (Denison, as cited in Sackman,
2006), the OCI is a circumplex model representing the degree that surveyed employees feel each
trait is important in their organization's processes. The extent that surveyed employees shared
consensus among the indexes suggests the strength of the culture; substantial member agreement
suggests a strong culture. A stronger culture would be indicative of employees who agree on the
same specific indexes that are key to fitting in and meeting expectations. The results of employee
perceptions were compared to the OCI of desired traits for the organization. The OCI assisted
managers in clarifying their future direction and expressing their vision for change.
Denison's Organizational Culture Model (Denison as cited in Sackman, 2006) is perhaps
one of the clearer and reliable methods for measuring culture. This method was used in over
6,000 organizations worldwide. Denison and his team found four traits that were consistently
xxx
associated with higher performing organizations: adaptability, mission, involvement and
consistency. Each trait was characterized by three indexes, resulting in a total of 12 indexes.
Denison (as cited in Sackman, 2006) created a 60-item survey to measure the extent that each of
the 12 indexes were present in a corporate culture. Responses were averaged to present an index
score, as seen in Figure 1; the numbers represent the percentage of surveyed companies who
scored lower than the subject company in each index. According to this sample, two of the three
measures for adaptability are low, customer focus and creating change, two of the three indexes
for involvement are low, and all three indexes for mission are below 50%. Capability
development, a trait of involvement, is the lowest scoring index, and organizational learning is
the highest. According to the Organizational Culture Model, there are a number of symptoms
present in this corporate culture that require attention to maximize organizational performance.
Figure 1. Denison's Organizational Culture Model (Denison, as cited in Sackman, 2006)
xxxi
Unlike Wagner and Moch (1986), who applied an existing tool to measure corporate
culture, Shulruf et al. (2011) attempted to identify the most efficient tool for measuring
individualism and collectivism. Shulruf et al. (2011) performed reliability tests on existing
measurement instruments to establish the most reliable test to adapt to organizations, rather than
individuals. The researchers assessed the existing instruments before choosing the AICS
developed by Shulruf et al. (2007) as the most reliable, and therefore most appropriate to use in
organizations when measuring degrees of individualism or collectivism. Shulruf et al. (2011)
pointed out the faults in the other established measurements of individualism and collectivism;
the IND-COL (Hui, 1988) did not have high levels of reliability (α ~.60), reliability could not be
replicated in the SCS (Singelis, 1994), and the researches stated that the Horizontal-Vertical
Collectivism-Individualism scale (Singelis & Triandis, 1995) had been widely used but an
acceptable level of reliability had not been reported. The AICS had the highest level of
reliability, α >.70 (Shulruf et al., 2011). Across the varying tools to measure collectivism or
individualism, the instruments required individuals to rate how much they agree with, or
associate with, domains relating to either collectivism or individualism. The results were either
reported for the individual or generalized to a larger group or organization.
Summary
There are a multitude of measurement tools to measure an existing corporate culture.
Several well respected and valid tools include the OCI, Denison's Organizational Culture Model
and the AICS. While qualitative methods of measuring culture, such as surveys, are easily
accessible and financially feasible, researchers agreed that in order to develop a rich, clear
description of the culture, a combination of qualitative and quantitative methods should be used.
Through surveys, interviews, observations and focus groups, researchers can develop both a
xxxii
description of the perceived culture, as well as a description of the actual culture.
Corporate Culture and Ideal Culture Traits for Predicting Success
Once corporate culture was defined and researchers possessed a reliable tool to measure
the differences in corporate culture, researchers then moved to detecting a relationship between
corporate culture as a predictor of performance. Denison and Mishra (1995) combined both
quantitative and qualitative measurements in their study on the culture-performance link. They
examined 764 organizations and CEO perceptions to link involvement and adaptability as
indicators of organization effectiveness (Denison & Mishra, 1995). They first performed case
studies involving five firms in order to identify the four most dominant traits that are linked to
effectiveness. A quantitative study was then used to analyze the degree to which the CEO’s in
the 764 organizations felt their corporation’s culture exemplified each trait. Finally, Denison and
Mishra noted the corresponding financial performance of each organization. Denison and Mishra
(1995) found that the level to which organizations possess certain traits can predict profitability,
specifically involvement, consistency, adaptability and mission. Involvement and consistency
had the strongest positive relation to performance, but varied on the effectiveness of short and
long-term duration.
Corporate culture was one of Joyce, Nohria and Roberson's (2003) primary traits for
business success in their 4+2 Model. They maintained that a performance oriented culture was
the best indicator for firm performance. In their study involving 40 industries, companies that
possessed and excelled in each of the four primary traits, strategy, execution, culture and
structure, and at least two of the secondary traits, talent, innovation, leadership, and mergers and
partnerships, were 90% more likely to be considered a winning company (Joyce et al., 2003).
Winning companies outperformed the competition in every financial measure from total return to
xxxiii
shareholders, sales, assets, operating income and return on invested capital during both the first
and second five-year periods. In the decade-long study, investors in the winning companies "saw
their money multiply nearly tenfold, with total return to shareholders of 945 percent" (Joyce et
al., 2003, p. 15). Joyce et al. found that there is a winning combination of traits that a successful
organization must possess; when a company lacked any one of the four primary or two
secondary traits, the researchers saw the organization's stocks and financial measures plummet.
Joyce et al. (2003) discovered the 4+2 model traits through empirical research based on
surveys, in-depth studies and extensive data collection. However, the researchers did not find a
correlation between the different categories of culture; the winning companies did not consider
themselves predominantly hierarchal, cooperative, or competitive. Winning cultures were instead
defined by four mandates: inspiring all to do their best, rewarding achievement with praise and
pay, creating a challenging and satisfying work environment and establishing and abiding by
clear company values (Joyce et al., 2003). Winning companies "constantly sought to design and
support a culture that promoted high levels of individual and team performance, and that held
employees, not just managers, responsible for corporate success" (Joyce et al., 2003, p. 137). The
researchers found that the ideal culture nurtured feelings of loyalty towards employee teams and
the company as a whole. Although the winning organizations might not have defined themselves
as collective, they possessed and valued collective tendencies.
Collectivism
Denison (as cited in Sackman, 2006) stated that effective companies build their
organizations around teams and one of the four traits linked to effective organizations was
involvement. The involvement trait was measured by three indexes, one of which was team
orientation, defined as "value placed on working cooperatively toward common goals for which
xxxiv
all employees feel mutually accountable. The organization relies on team effort to get work
done" (Denison, as cited in Sackman, 2006, p.14). The degree that organizations utilize team
work and other collective practices was related to increased performance across a variety of
industries. Denison (as cited in Sackman, 2006) found that involvement was positively linked to
short and long-term performance.
In the two year correlational study performed by Petty et al. (1995) between
organizational culture and performance, the researchers discovered that team work was
positively related to organizational performance. The items associated with teamwork were those
behaviors which included "sharing information, helping others with their work, seeking ways to
help the work group meet its goals, involving those affected by a course of action, sharing
resources, making sacrifices for the good of the group, and being rewarded for working as a
team" (Petty et al., 1995, p. 488). While the other three dimensions, trust and credibility,
organizational functioning, and employee safety and health, also proved to have a positive
correlation to performance in year one, only team work was positively related to performance at
both time periods.
Truskie asserted that the ideal culture is well defined, balanced and combines the positive
elements from family, social institutions, the scientific community and the military/law
establishments. In Truskie's (1999) L4 Model for an organizational leadership strategy, the
positive elements of family included collective practices, such as caring, sharing and teamwork.
According to Truskie (1999), “a balanced culture exerts positive influence on the behaviors of its
employees" (p. 6). The collective practices, those related to the family element, need to be
present for a culture to be considered balanced. Truskie (1999) asserted that a culture that
possessed a combination of each of the four units would have the best chance for success.
xxxv
In Sheridan's (1992) study involving six international accounting companies, he found
that cultures varied among firms belonging to the same parent company and that firms that
valued team work experienced higher employee retention rates. Three of the six firms were
characterized by a culture that valued interpersonal relationship principles of team orientation
and respect for people. The other three firms were characterized by having work task values of
details and stability (Sheridan, 1992). Sheridan's (1992) report stated, "Professionals hired in the
firms emphasizing the interpersonal relationship values stayed 14 months longer than those hired
in the firms emphasizing the work task values" (p. 1050). For the accounting firms, Sheridan
estimated the loss at $9,000 to replace en employee who had been with the firm for one year but
to replace an employee who had been with the firm for three years or more, the loss rose to
$47,000. The cost to organizations due to low employee retention is substantial; to decrease this
loss, firms are encouraged to adopt cultures that value team orientation and respect for people.
Adaptability
Researchers Kotter and Heskett (1992), Touminen, Rajala and Moller (2004), and Smith
(2002) found adaptability to be a strong predictor of firm success. Smith (2002) referred to
adaptability as organizational change, what he defined as "any intentional change in the way the
organization does business that affects the strategic position of the organization vis-à-vis its
competition" (p. 26). Touminen et al. (2004) referred to adaptability as a firm's ability to
capitalize on changing market and technological opportunities. Firms are required to adapt their
processes after a variety of events, including mergers, acquisitions, business expansion,
development of new technology systems, process improvement, and restructuring or downsizing
of firm size. A firm's ability to successfully adapt to changes in their environment is extremely
difficult; Smith (2002) cited a 30% success rate for organizational change programs among 140
xxxvi
organizations. An organization's ability to adapt to changes in their internal and external
environment, whether strategically planned or forced, is positively correlated to high financial
returns (Smith, 2002). The firms that successfully implemented and followed through with their
change programs showed increased profitability over a ten-year period (Smith, 2002).
Touminen et al. (2004) conducted a study with 140 managing directors from 142 firms
through a questionnaire that measured the degree of their firm's adaptability and innovativeness.
"The adaptability construct was operationalized by using previous measurement items, such as
deployed mode of technology, customer intimacy and competitor emphasis, structural
arrangements and managerial systems in combination with variables developed for this inquiry"
(Touminen et al., 2004, p. 498). The researcher's survey contained 23 items, based on a five-
point Likert-type scale ranging from poor to excellent. The 23 items presented an overall
perception of degree of adaptability for each firm as reported by their managing directors. The
researchers found that adaptability had a strong positive correlation with a high level of
innovativeness (Touminen et al., 2004). Customer relationships and technology sharing were the
two strongest factors of adaptability that influenced the degree of firm innovativeness. The
researchers suggested the need for a longitudinal study to replicate the correlation between
adaptability and innovativeness. Roi (2006) also found a positive, significant relationship
between firms with adaptive cultural norms and net income performance, r =.355, .373. Roi's
participants consisted of 271 executives from 94 corporations; his study measured net income
growth over a ten-year period.
Denison (1984) used a survey type index to collect data on corporate culture that
permitted him to hypothesize which traits supported sustained performance across industries.
Denison’s survey technique allowed individual employee perceptions to characterize the general
xxxvii
culture of each organization. Denison’s (1984) instrument questionnaire, the Survey of
Organizations, was created to measure culture along four dimensions: involvement, consistency,
adaptability and mission. Denison’s questionnaire was distributed to 43,747 participants across
34 companies in 25 industries. The responses of the questionnaires were averaged in order to
assign a single score for the entire organization in each of the four indexes.
Gordon and DiTomaso (1992) measured adaptability and stability in insurance
organizations by measuring participant-reported answers on levels of action/orientation and
innovation/ risk taking. They found that "industries perform best when their culture fosters
adaptability rather than stability" (Gordon & DiTomaso, 1992, p. 794). Koberg and Chusmir
(1987) also found that innovative culture was positively related to job satisfaction and negatively
related to the propensity to leave among a survey of 165 managers. Innovative cultures were
described as creative work environments where challenge and risk taking were the norm.
Additionally, according to Koberg & Chusmir (1987), ambitious employees thrived in an
innovative environment.
Culture Strength
Companies with strong cultures outperform organizations with weak cultures (Deal &
Kennedy, 1982; Kotter & Heskett, 1992; Gordon & DiTomaso, 1992; Sorenson, 2002). Roi
(2009) defined a strong culture as one "where most managers share a set of consistent values and
practices for conducting business" (p. 19). One of the earlier studies on culture strength,
performed by Deal and Kennedy (1982), examined 80 companies over six months and found that
the 18 with strong cultures were uniformly outstanding performers. They also found that strong
cultures inspired loyalty. Of the outstanding organizations, Deal and Kennedy (1982) found that
all had a "rich and complex system of values that were shared by the employees" (p. 14). In their
xxxviii
research, Deal and Kennedy (1982) found that strong cultures allow employees to understand
exactly what is expected of them. They estimated that a company with a strong culture could
gain up to two hours of productivity per employee per day. Strong cultures remove much of daily
uncertainties that employees suffer from because they "provide structure and standards and a
value system in which to operate" (Deal & Kennedy, 1982, p. 16). Deal and Kennedy (1982)
also asserted that a strong corporate culture is the key to corporate success.
Similar to Denison and Mishra (1995), who studied the phenomenon of culture strength
as a predictor of performance across a variety of organizations, Kotter and Heskett (1992)
performed a ten-year long study involving 207 US public firms in 18 industries to explore this
relationship. The researchers hypothesized that the presence of a strong culture, represented by
the degree to which the members of a firm all share the beliefs and values which constitute their
culture, should be associated with higher goal alignment among organizational members and
promote an unusual level of motivation among employees. Kotter and Heskett (1992) collected
data from the top six officers or managers of the firms rather than employees across ranks and
used both quantitative and qualitative measurements. The researchers administered
questionnaires to their participants who used a self-report method to define their organization's
culture. To confirm the reliability of their measurement tool, Kotter and Heskett (1992) used a
more qualitative approach by interviewing 22 select organizations of the original 207 firms in
order to validate their results. They found a positive correlation between perceived culture
strength and long-term economic performance during the ten-year study. However, it was noted
that stronger correlations existed when the corporate culture stressed the importance of
adaptability and change. Kotter and Heskett (1992) found that strong culture played such a
significant role in the lasting performance of an organization that 90-95% of the firms in their
xxxix
study failed to have a strong enough corporate culture that enhanced economic performance.
Sorenson (2002) tested the hypothesis that strong cultures can be a reliable predictor of
firm performance using the data that Kotter and Heskett (1992) collected. Sorenson used
performance data from the COMPUSTAT database and measured performance on the yearly
return on invested capital for the three years following Kotter and Heskett's (1992) original
study. Sorenson (2002) discovered that widespread agreement regarding acceptable work
behaviors and values increased behavioral consistency and resulted in higher firm performance.
Although Sorenson confirmed that organizations with strong cultures are more likely to
experience positive financial growth, he found that in volatile markets, strong cultures did not
outperform weak ones. Sorenson (2002) did not differentiate between management levels, but
asserted that a strong culture is one where the norms and values are widely shared and strongly
held throughout the organization and across all hierarchal levels. Sorenson (2002) claimed that
strong cultures prosper from "enhanced coordination and control within the firm, improved goal
alignment between the firm and its members, and increased employee effort" (p. 71). Sorenson
(2002) asserted that strong cultures enhance the reliability of firm performance as long as
organizational routines are consistent and the processes are well adapted to change in order to
meet the demands of the environment. If heterogeneity in beliefs exists within the culture, then
employees will spend more time debating their options for behavior and task accomplishment
rather than achieving their goals (Sorenson, 2002).
Gordon and DiTomaso (1992) investigated the degree that culture strength and culture
values predicted performance in 11 US Insurance companies. Unlike Denison (1984), who
included participants across industries, researchers Gordon and DiTomaso (1992) concentrated
on one field over a five-year period. Similar to Kotter and Heskett (1992) who surveyed
xl
managers, Gordon and DiTomaso (1992) examined the questionnaire responses of participants
from the top four-to-five levels of management in 11 insurance firms. The researchers used
Hofstede's (1990) measurement of organizational culture, but adapted it slightly to construct the
measurement specifically for an organization rather than the individual. Comparable to Kotter
and Heskett (1992), Gordon and DiTomaso (1992) measured culture strength on the consistency
of answers and level of agreement among the managers on types of values that define their
organization. Gordon and DiTomaso (1992) found that strong cultures, those in which managers
closely agreed on values and practices, were related to high financially performing firms. Gordon
and DiTomaso (1992) reported that, "the greater the culture strength, the stronger the firm's
financial performance will be in subsequent years" (p. 787). Of the 11 participant organizations,
the more consistent responses of strong culture were positively related to organizational
performance. Strong cultures offer the support and tools that allow employees to work at
maximum efficiency, as well as guide lower level decision making to align with corporate goals.
Denison (1984) only reported the results of two of the 22 indexes measured in his study,
organizations of work index and decision making practices, and the resulting predictions they
presented on the long-term success of the participant corporations. Both index terms refer to
management systems, and both are better predictors of long-term success than the other 20
indexes measured (Denison, 1984). Organizations with employees who reported having a well-
organized work environment experienced significantly higher return on investments, often twice
as high as the companies with the lowest level of organized work environment. The results of
decision making practices had a similar, positive correlation; however it was more gradual over
time. The degree that a company possessed a higher organized work index, as well as consistent
decision making practices directly related to the strength of their culture. Overall, the system-
xli
level attitudes were the best predictors of performance, specifically long-term performance
(Denison, 1984).
Although Denison (1984), Gordon and DiTomaso (1992), Kotter and Heskett (1992), and
Sorenson (2002) found culture strength to be positively related to financial performance, Van
den Berg and Wilderom (2004) argued that culture strength is too limited a variable because it
only hints at employee consensus. When the majority of employees value the same behaviors
and practices in their organization, that organization can be said to possess a strong culture.
Cooke and Rousseau (1988) suggested that the absence of a strong culture was a disadvantage.
"We believe that the absence of strong or consistent norms is an attribute of change or
instability" (Cooke & Rousseau, 1988, p. 251).
Summary
Researchers agreed on three ideal traits that when present in an organization's culture are
reliable means to predicting the firm's future success. Collective practices, such as team work,
increased performance across multiple time periods, not solely at one point in time (Petty et al.,
1995). Denison (as cited in Sackman, 2006) found that more effective organizations embraced
involvement tendencies, characterized by collective practices, which were also positively linked
to short and long-term performance. Collective organizations experienced higher employee
retention rates than less collective organizations from the same parent company (Sheridan,
1992). Adaptability was the second trait that was positively linked to organizational
performance. An organization's ability to adapt to changes was related to higher financial returns
(Smith, 2002). Adaptability had a strong positive association with a high level of innovativeness
and net income performance, and was positively related to job satisfaction (Koberg & Chusmir,
1987; Roi, 2006; Touminen et al., 2004). Culture strength was the third trait that was positively
xlii
related to organization performance. Strong cultures outperform organizations with weak
cultures; employees from strong cultures are more loyal to their organization and experience
more productivity throughout the work day (Deal & Kennedy, 1982). Strong cultures are
positively related to long-term economic performance (Gordon & DiTomaso, 1992; Kotter &
Heskett, 1992; Sorenson, 2002).
Measuring Performance
Studies on the relationship between corporate culture and performance used a variety of
measurements for performance, often employing methods that are specific to the surveyed
industry. Several researchers performed longitudinal studies ranging from two-year to ten-year-
long studies. Denison (1984) measured performance in organizations with a variety of financial
ratios, such as return on investment (ROI) and equity and sales, and averaged the figures over six
years. Sorenson (2002) also measured performance on both return on invested capital and ROI,
as well as return on sales (ROS) and net income growth. Denison (1984) recognized that
financial ratios were not always the best indicator of corporate performance, but settled on
income/investment and income/sales ratio as measures of performance. The financial ratios were
used to predict performance for the five years following the distribution of Denison's (1984)
questionnaire. Kotter and Heskett (1992) used return on investment like Denison (1984), but also
averaged the yearly increase in net income and yearly increase in stock price. Researchers
Gordon and DiTomaso’s (1992) study measured performance in an unusual method because of
the "unique ownership structure" (p. 790) of the insurance firms which ruled out using traditional
measures of performance, such as ROI and ROS. Rather, the researchers measured performance
based on growth of assets and growth of premiums over six years. The tools for measuring
performance in the mentioned studies were organization-specific; a single tool could not
xliii
generalize performance across industries.
In their study of 12 organizations, Petty et al. (1995) used a summary of five objective
measures for performance: operations, customer accounting, support services, marketing and
employee safety and health. Participant companies received a score out of 1,000 in each category
as well as a combined overall financial score. All five measures were developed internally in
each company for the purpose of evaluation, not by the researchers, and prohibited generalizing
to other organizations. A strength of this study was that Petty et al. (1995) correlated the data for
each of the five categories at two points in time, approximately one year apart.
In their study of 160 companies from 40 different industries, over a ten-year period,
1986-1996, Joyce et al. (2003) measured performance by total return to shareholders, TRS. The
researchers compared the TRS of the participant companies against the TRS of other firms
within the same industry. The researchers found that "an individual organization's TRS
sometimes reflects not its own performance so much as the state of its industry" (Joyce et al.,
2003, p. 9). To compare organizations within the same industry, the researchers ensured that
participant organizations were roughly similar in their size, scope, financial numbers, TRS and
future prospects.
According to Wilderom et al. (2000), multidimensional performance measurements,
including nonfinancial and perceptual indicators are the most effective means to measure
performance. Purely financial ratios, such as ROI, return on sales, and return on equity, while
being easily accessible, are not the most effective measures for performance (Wilderom et al.,
2000). Due to the lack of consistency in accounting measures, as well as their proneness to
manipulation, Wilderom et al. (2000) suggested using multidimensional measures that address
all stakeholders. According to this approach, "an organization is considered effective if it
xliv
balances the competing claims of various relevant organizational stakeholders and thus ensures
their continuing cooperation" (Wilderom et al., 2000, p. 203). Financial performance is only one
measurement of firm effectiveness and is only an indicator of short-term performance, whereas
stakeholder satisfaction is viewed as an indicator of long-term performance (Wilderom et al.,
2000).
Summary
Researchers used a variety of financial ratios to measure the performance of
organizations. Several studies measured performance at one point in time, others measured it
over a span of five or ten years. However, researchers agreed that organizations may strive for
more than financial gain. Therefore, to accurately measure performance, both financial and
multidimensional measurements should be used. These include return on investment, return on
invested capital, return on sales, net income growth, and total return to shareholders. Measuring
stakeholder satisfaction in accordance with financial ratios will present the most accurate
measurements of firm performance.
Limitations of Reviewed Studies
There are several limitations of the studies discussed in the literature review. Studies
which failed to find a link between organizational culture and performance are underrepresented
in this review. Several factors in each reviewed study pointed to problems with generalization.
There were issues with construct validity of defining and measuring culture and performance and
the inclusion of intraorganizational participants who were not representative of the entire
organizational culture. Additionally, both the independent variable, corporate culture, and the
outcome variable, organizational performance, were defined by different terms across the studies
leaving less room for generalization. Gordon and DiTomaso (1992) did not specify how many
xlv
managers were involved within the top four-to-five levels of management, only the mean number
of participants from each firm was reported. Both Gordon and DiTomaso (1992) and Kotter and
Heskett (1992) used the opinions of managers or CEO’s in order to define the corporate culture
of each participant organization. It is crucial to recognize that the views of managers do not
always represent the views of the entire employee population. In order to achieve an accurate
depiction of corporate culture which can be generalized to the entire organization, a random
sample of all employees across all hierarchal divisions would supply the most precise description
(McMillan, 2010; Wilderom et al., 2000).
Additionally, as Gordon and DiTomaso (1992) recognized, their study measured
corporate culture at one single point in time, but evaluated the performance over a five-year
span, from 1982-1987. Likewise, Kotter and Heskett (1992) measured the performance of their
sample firms over 10 years, but only accounted for the corporate culture measured at one point in
the 10 years. Neither study considered the possibility of the corporate culture of the participant
organizations changing over the span of their research. The nature of advancement in industries
and technological progress dictates that organizations grow and change over time. Additionally,
the variables measured in Gordon and DiTomaso’s (1992) study were specific to short-term
company performance predictors. These variables have not been proven to have long-term effect
on performance, suggesting more research would be needed to validate the results. The reviewed
studies also lacked consensus if the dimensions found to be positively related to firm
performance stood true for short-term or long-term performance.
While Truskie (1999) presented four types of dominate cultures, he stated that the leaders
must find an adaptive balance among the four: cooperation pattern, consistent pattern,
achievement and inspiration pattern. "Not one culture can lead to long-term success for the
xlvi
organization" (Truskie, 1999, p. 13). The ideal corporate culture is one that combines degrees of
individualism and collectivism to meet the needs of the employees and align goals with the
mission and value statement. Truskie (1999) stated that not one culture trait is more beneficial to
the organization, but the ideal model adopts the positive elements from each of the inspiration,
achievement, cooperation and consistent cultures. Truskie went on to state that adopting just one
of the four traits is simply a strategy for short-term success or change.
Although the reviewed studies argued that collective work practices will lead to a more
profitable organization, Truskie (1999) claimed other traits must be present in the culture as well.
"Organizations that strive to achieve integrated and balanced cultures are more successful, more
adaptive, and thus better able to sustain over longer time periods than organizations whose
cultures are incomplete and out of balance" (Truskie, 1999, p. 21). A culture that values
collectivism and does not include other traits can become unbalanced. Management by
committee can occur, leaders may hesitate when making decisions before consulting a team, or
the leaders can be viewed as indecisive. Too much attention can be placed on creating a team or
committee to deal with every new situation, thus taking away time spent on creating solutions
(Truskie, 1999).
Another limitation to this study lies in the possibility that when in work groups members
may fall prey to what is known as the Ringlemann Effect (Forsyth, 2010). According to Forsyth
(2010), members have a tendency to become less productive when working with others. Creating
a collective work group may not always be the best option. Several studies found that
collectivism can inhibit certain characteristics that a firm might want present in their corporate
culture (Goncalo & Staw, 2004). When a leader desires creativity from his employees, a
collective team operates below par compared to other teams that are not as collective in nature.
xlvii
Therefore, it is up to the leaders of an organization to choose when to adopt collective tendencies
to maximize performance.
Denison (as cited in Sackman, 2006) referred to a significant limitation in the
contradiction between adaptable yet consistent processes. Values and behaviors are at the surface
of corporate culture; traits impacting both can be measured and compared. However, underlying
assumptions and beliefs of employees are much harder to compare and form generalizations
about. Truskie (1999) asserted that the challenge to creating a strong, adaptive, collective culture
is to balance opposing forces. This allows the firm to remain adaptive and utilize the strengths of
opposing strategies. An organization must remain consistent with policies and practices, but have
the self awareness to understand when adoption of new practices would maximize profits.
According to Deal and Kennedy (1982), "strong cultures are not only able to respond to an
environment but they also adapt to diverse and changing circumstances" (p. 195). Strong,
consistent cultures adjust to new challenges and change by referring to their values and
established rituals which continue to guide their actions towards a successful path. Achieving
this balance between opposing strategies is a key challenge to an experienced leader.
A final limitation is that the reviewed studies neglected to state to what degree the beliefs
and values must be shared among all employees in order for the culture to be considered strong.
The distinction is unclear, whether having 50% agreement among employees constitutes a strong
culture or if that number must be above 85%. This holds true for the other dimensions; at what
point is a company adaptable, or strong enough, or collective enough for it to operate at
maximum performance? The reviewed studies failed to build upon previous research in order to
determine the most accurate and appropriate measurement of culture and performance, therefore
the studies leave room for further research in this area.
xlviii
Chapter Summary
Across 30 years of research, corporate culture was defined in many ways using a
multitude of descriptors. Whether it was defined in terms of individualism or collectivism, or by
the characteristics that are present in work group processes, empirical research found that the
degree to which employees identify with either individualism or collectivism is a significant
predictor of the firm’s future success. Goncalo and Staw (2004) found that “organizations should
adopt collectivistic values because they promote cooperation and productivity” (p. 96). Kotter
and Heskett (1992) linked the strong corporate culture to HP’s lasting productivity from the start
of the corporation through the late 1990's. One can infer that the creation of a strong corporate
culture, one with collective practices and high in adaptability, will allow the organization to
experience increased effectiveness and higher productivity.
xlix
Chapter III- Methodology
Introduction
In order to further develop or improve one's corporate culture, an organization would
benefit from adopting certain practices that have been known to support firm success. Empirical
research supports the hypothesis that an organization’s corporate culture, specifically a strong
culture which emphasizes adaptability and contains elements of collectivism, can be a strong
predictor of the future performance of a firm (Denison, 1984; Denison & Mishra, 1995; Gordon
& DiTomaso, 1992; Kotter & Heskett, 1992). Therefore, a firm that wishes to experience long-
term profitability would benefit from adopting a corporate culture that incorporates these
elements.
Previous research recognized that the established tools to collect data on corporate culture
and performance involved both qualitative methods, such as open-ended questionnaires and
employee focus groups to determine the specific culture of an organization, as well as
quantitative methods such as tracking financial measurements (Denison, 1984; Gordon &
DiTomaso, 1992). After reviewing the advantages of each method, the researcher carefully
selected the research design and instrumentation based on design appropriateness to answer the
research questions. The following research questions were addressed in this study:
1. How is corporate culture best defined and measured?
2. What traits of corporate culture are related to productivity and firm effectiveness?
3. How would an organization adopt these traits into their corporate culture?
Research Design
This project developed a survey for United States-based small to medium organizations
that seek to maximize their firm's performance. Using research and development design, a 35
item questionnaire and accompanying handbook was created to guide corporations in adopting a
l
more collective and successful corporate culture. The survey questionnaire was designed to
measure the existing culture to determine if a company lacked elements of collectivism,
adaptability and culture strength and would benefit from adopting new policies and practices.
The final stage of the project was to create a handbook that would offer executives, leaders and
scholars an applicable tool to refer to in order to maximize their current corporate culture. The
handbook was created to answer research question #3, how would an organization adopt these
traits into their culture. Neither the survey nor handbook were field tested due to time and
funding limitations; although the survey was peer reviewed for ease of use and comprehension.
Both instruments bridge the gap in literature on the culture-performance link. The decisions
regarding the development of the handbook and survey are discussed in the following sections.
Instrumentation
The non-experimental research utilized for this project could be classified as analytical.
The corporate culture-performance link was investigated by analyzing documents, records, and
other research to determine the best means of answering the research questions. The most
effective way to measure corporate culture, as revealed in the literature review, is through
qualitative and quantitative methods. Quantitative methods of collecting data to measure
corporate culture are less expensive and can cover large sample populations. Quantitative
methods also allow the possibility for generalization and comparison across industries and tend
to allow greater objectivity (McMillan, 2012). Qualitative methods, such as employee interviews
and observations are more costly and require a greater amount of time to collect data. Therefore,
to ensure ease of use by executives or leaders in an organization, a quantitative survey, titled
"Measuring Collectivism, Adaptability and Strength in Your Corporate Culture Survey", was
created for this project. The next step involved extensive research, this included defining traits
li
that an organization would want to incorporate into their culture, and determining when a
corporation needed to update their current culture. Next, the researcher developed a preliminary
survey and requested peer feedback for accuracy and appropriate fit. Finally, preliminary product
revisions were made based on the reviewer's feedback.
Based on the literature review, a respected and reliable tool to measure culture is the
AICS. A comprehensive tool does not currently exist that measures collectivism, adaptability and
culture strength, thus requiring the adaptation of standardized tools. After reviewing the
established tools to measure culture, the researcher combined the AICS and Shulruf's et al.
(2003) model of collectivism to create a new survey tool to measure the degree of collectivism,
adaptability and strength present in a culture. This survey accomplished the project objectives by
creating a tool to best measure the three traits of corporate culture that were linked to higher
financial performance.
The second phase of instrumentation was the creation of the handbook, "Creating a
Collective Corporate Culture: A Small Business Guide to Maximize Performance". The
handbook was designed to be a resource guide for executives to refer to in order to ensure their
current culture was operating at maximum efficiency. The handbook entailed extensive research
on how to adopt the three traits that contribute to increased firm performance, as well as which
activities and exercises could be implemented in the workplace to increase the level of
collectivism, adaptability and culture strength.
Developing the Survey
The purpose and objective of the survey was to measure three specific traits of corporate
culture, collectivism, adaptability and strength, as these traits have the strongest predictors of
financial performance (Denison, 1984; Gordon & DiTomaso 1992; Kotter & Heskett, 1992). The
lii
target population of the survey was small businesses with fewer than 1,500 employees.
According to Kraft and Roth (as seen in Sackman, 2006) medium sized enterprises are the most
profitable based on the OASIS (Organizational and Strategy Information Service) model of
culture that compares market environment and organization strategy with various performance
measures, such as ROI. Kraft and Roth (as seen in Sackman, 2006) stated that "the highest
profitability would be expected for small enterprises (<1,500)" (p.10) due to less bureaucracy
and fewer hierarchy levels, resulting in less political intrigues. Therefore, the survey was
designed for use in businesses with fewer than 1,500 employees.
The questions were worded carefully to be clear, understandable and unbiased
(McMillan, 2012). The survey was designed to be aesthetically pleasing, using at least 10-point
font. The survey included directions for executives administering the survey, as well as
instructions for participants taking the survey. The directions were clear to prevent any
ambiguity of where or how to respond, and what to do when complete with the survey. The
survey included less than 40 items to prevent participant fatigue, and to help ensure at least a
70% response rate, a rate which McMillan (2012) states is adequate to allow for generalizing.
Self-report surveys permit employees to report on their perceptions of reality, which leads itself
to internal credibility because employees are more likely to accept the results of the survey
(Ashansky, Broadfoot, & Falkus, 2000).
The survey included questions about daily operations in the work place, values, behaviors
and other relevant questions in order to assign a level of individualism or collectivism at the
corporate level. Ashansky et al. (2000) stated that "organizational culture may be rooted in
perceived practices" (p. 133), therefore the survey was designed to measure the perceptions of
employees from all hierarchal levels of the organization. The survey was predominantly
liii
designed based on the AICS; the researcher reviewed the items from the AICS that corresponded
to collectivism and modeled the collectivism items on the survey after the AICS dimensions
(Shulruf et al., 2007). The AICS was used as a reference for the survey because it boasted the
highest level of reliability, α >.70, was used across a range of populations, and the test is
publically available (Shulruf et al., 2011). The researcher also reviewed the Principle Component
Analysis of Adaptability Survey created by Tuominen et al. (2004). The adaptability items on the
survey were modeled after the Principle Component Analysis of Adaptability Survey (Tuominen
et al., 2004), but were adapted to specifically measure innovation and change programs, rather
than product-specific items.
By using reliable and established measurement tools for collectivism and adaptability as a
basis for the survey the researcher attempted to establish validity for the questionnaire
(McMillan, 2010). As the survey was not field tested for use, the reliability of the created survey
was not applicable; however the validity of the inferences created from the instrument was strong
based on the fact that the items are comparable to the items from standardized instruments. It can
be expected that scores from the created instrument will correlate highly with the AICS as a
measurement of collectivism, resulting in construct validity (McMillan, 2012). The created
survey is therefore an appropriate and reasonable instrument to evaluate the degree that a culture
possesses collective, adaptable and strong traits. All ten peer reviewers stated that the survey
adequately appeared to measure the target variables, resulting in face validity. Based on the fact
that the survey measured the three traits that an organization needs to be effective, the survey is
considered an effectiveness profiling instrument (Ashansky et al., 2000).
Although several studies used managers’ perceptions of work practices to determine the
current culture (Gordon & DiTomaso, 1992; Kotter & Heskett, 1992), in order to achieve the
liv
most accurate representation of the current culture, the survey was designed to measure a range
of employees at different hierarchal levels in the organization. The survey was intended to be
distributed via paper or electronically. The survey was designed to offer executives the
opportunity to measure the degree of consensus among employees on daily practices, beliefs and
values that are observable and reportable.
The survey items that measure each of the three traits were adapted from existing
instruments for measuring each aspect of culture (Shulruf et al., 2007; Tuominen et al., 2004).
Fifteen items measured collectivism (1, 2, 4, 5, 8, 10, 13, 15, 16, 17, 18, 22, 24, 26, 33); items 1,
13, 17 and 22 measured employee's perceived opinion that their organization sets group goals
and emphasized team work. Items 10, 24 and 22 measured perceived collective efficacy in the
workplace, and items 18 and 26 measured the perceived level of esprit de corps present in the
organization's culture. Ten items measured perceived adaptability of the organization (3, 6, 11,
14, 19, 21, 23, 27, 30, 34). Items 6, 21 and 34 measured the degree that employees felt that their
organization and leaders initiate a proper change program; items 11, 14, 21 and 30 measured the
degree that employees perceived that their organization and leaders encourage utilizing
innovative technology in the workplace. Ten items measured culture strength (7, 9, 12, 20, 25,
28, 29, 31, 32, 35). Items 9, 12 and 25 measured the employee's perceived level that their leaders
and organization are consistent with all processes, and items 7 and 29 measured the perceived
degree that the mission statement aligns with their individual and group goals. Each item is rated
on a 5-point Likert scale. The Likert scale is one of the more widely used response scales on
surveys (McMillan, 2010). Items measuring each of the three main traits, collectivism,
adaptability and culture strength, were randomized to minimize respondent bias.
The final step in the design of the survey was to create the "Scoring the Collectivism,
lv
Adaptability, and Strength in Your Corporate Culture Survey", located in Appendix B. The
scoring the survey handout was designed to be used in connection with the survey. It clearly
states how to add up scores for all participants to determine the degree that each trait is present in
an organization's culture. If the average scores for each trait falls in the medium, low or
nonexistent category, then managers are encouraged to consult the handbook to learn what
exercises to implement in the workplace to raise the degree of each trait.
Once the first draft of the survey was completed, it was then reviewed by a peer review
panel comprised of ten individuals for ease of comprehension, appropriate content and overall
opinion. The reviewers were selected through convenience sampling and had to meet certain
criteria; they needed to have at least two years work experience in a corporate or small business
setting. The peer reviewers were not required to possess expertise in collectivism because the
survey was designed to be appropriate for organizations that lack knowledge about collectivism,
adaptability and culture strength. The ten peer reviewers were asked via email to review the
assessment for content validity, on relevancy, if the survey had adequate means to measure each
of the three traits, for clear and comprehensive language, and were asked if any of the questions
were leading or biased. The Peer Reviewer Handout is located in Appendix A. The reviewers
responded to three open-ended questions to discover the strengths, weaknesses and areas in need
of improvement for the survey. The reviewers were also asked to review the "Scoring the
Survey" handout for accuracy and ease of comprehension.
On the basis of the reviewer's comments, revisions to the survey were made. Reviewers
suggested bolding or italicizing certain sections of the survey to ensure the format was
aesthetically pleasing. Peer Reviewer #2 suggested defining "esprit de corps" in question #26;
however, it was not mentioned by any other peer reviewers. Therefore, the researcher maintained
lvi
the verbiage used in item # 26. Both peer reviewers # 2 and # 3 suggested having a "not
applicable" option as a response to each item. Reviewer # 3 also suggested offering open-ended
questions to allow the respondents to elaborate or clarify their responses. However, because the
purpose of the survey was meant to be used in a corporate setting by an employee who would not
necessarily be trained in analyzing responses, the open-ended options were omitted. Table 2
displays the peer reviewers' demographics, including their occupation and the number of years of
work experience.
Table 2: Peer Reviewers' Demographics
Occupation Number of Years in Current position
Peer Reviewer # 1 Administration 4
Peer Reviewer # 2 Sales Administration 5
Peer Reviewer # 3 Vet Technician Supervisor 7
Peer Reviewer # 4 Loan Officer 5
Peer Reviewer # 5 Office Manager 4
Peer Reviewer # 6 Sales Representative 2
Peer Reviewer # 7 Office Manager 4
Peer Reviewer # 8 Web Developer 5
Peer Reviewer # 9 Project Manager 4
Peer Reviewer # 10 Administrative Assistant 3
Developing the Handbook
Once final revisions to the survey were completed and organizations had a tool to
evaluate and measure the degree that each of the three traits were present in their culture, a
lvii
handbook was created to guide the organization in understanding why incorporating these traits
was crucial to their success, as well as how to go about the process. The creation of the handbook
involved researching the need for each trait and learning how to adopt these new traits into the
existing culture. An extensive literature review, scholarly articles, published books and
dissertations were used to collect the information.
The creation of a corporate culture is a top down process; a leader sets the tone and
examples for the values, beliefs, and processes that he or she desires to be present in the
organization (Van den Berg & Wilderom, 2004). Applicants are attracted to a certain
organizational model; employees who are high in person-organization fit will remain with the
organization and are more likely to contribute to the organization's success (Goodman &
Syvantek, 1999). Employees low in organizational fit, those whose values differ from the
corporate culture they are a part of, suffer in contextual and task performance (Goodman &
Syvantek, 1999). To maximize performance, person-organization fit and employee retention, a
leader must ensure applicants share the values and beliefs that are inherent in the organization's
culture. The handbook, "Creating a Collective Corporate Culture: A Small Business Guide to
Maximize Performance", was designed to be applicable to all industries; Collins (2001) stated
that good to great companies can emerge in any industry, as long as the organization employs the
correct strategies that are proven to support sustained profitability.
How to increase collectivism.
Denison (1990), Petty et al. (1995), Sheridan (1992), and Truskie (1999) found
collectivism and collective tendencies to be positively related to firm performance. There are
three steps to increase collectivism in an organization's culture. The first step is to emphasize
team work as a means to accomplish goals and to reward team goals, not individual goals. The
lviii
second step is to increase collective efficacy among groups and departments. The third step to
increase collectivism is to increase synergy and esprit de corps among employees.
The first step to increase collectivism is to set group goals, not individual goals, and
emphasize team work. Working in groups is a universal characteristic across all societies
(Forsyth, 2010). Groups fulfill the need for positive, enduring relationships with others. By
organizing company processes into work groups, a manager is setting the tone for an inclusive
and collective identity to form among group members. Groups tend to value the traditions and
ideologies that are shared by the majority of the members (Forsyth, 2010). Team practices should
create an environment where members avoid disagreement, respect authority and are encouraged
to compromise. When the processes of the group encourage collective tendencies, the members
are more likely to cooperate, rather than compete with their co-workers, and are also more likely
to create long lasting relationships (Forsyth, 2010).
Collectivistic group norms are informal rules and expectations adopted by group
members that encourage and regulate the performance of behaviors that include placing
greater priority on the achievement of team goals, working closely with team members on
team tasks, placing team member needs above individual needs during task performance,
relying on teammates to perform their parts of the team task, performing one’s own
duties in fulfillment of the team’s overall goals, demonstrating concern for the team’s
performance, and accepting responsibility for the team’s outcomes. (Celani & Tasa,
2010, p. 1)
Group and team based work creates a degree of interdependency that leads to a more
collective environment (Forsyth, 2010). Interdependents put the needs of the group before their
own. "They are respectful of other members of their groups, and they value their membership in
lix
groups, their friendships, and traditions" (Forsyth, 2010, p. 74). When forming a work team to
accomplish a task, managers should offer team based compensation. Team based compensation
can be in addition to regular wages and treated as a bonus. Each team member, including senior
staff, should receive the same percentage based on the performance of the team (Truskie, 1999).
Collins (2001) suggested that compensation be used to keep the right members on the team, not
necessarily to motivate the "right" behaviors from the wrong people. If companies offer rewards
based on self-interest, then employees will tend to be more individualistic, only look out for their
individual interests and will also be less productive (Benkler, 2011). Joyce et al. (2003) found
that winning teams rewarded achievement with pay for performance, but also with
acknowledgement and public recognition.
Teaching members to refer to the team as "us" or "we" encourages the individuals to view
themselves as part of the in-group, which will also increase their commitment to the team's goals
(Forsyth, 2010). Benkler (2011) insisted that organizations need "systems that rely on
engagement, communication, and a sense of a common purpose and identity" (p. 79).
Recognizing group achievements, removing rigid chains of command and teaching conflict
resolution techniques to the group will ensure teams are operating at maximum output. Further,
ensuring team behavior is part of performance appraisals is crucial; employees must understand
their performance as a team member is part of their employee evaluation (Truskie, 1999). A
leader can also provide company gear and clothing for team members to wear and reward
employees who embrace their logos. Team members who physically look similar will find it
easier to identify with the larger group.
Collins (2009) found that one of the five steps to creating great, not just good, companies
was to get the right people on the team. Collins (2001) asserted that the right people must be on
lx
the team and in the correct roles for the team to operate effectively. In fact, in his study on
Fortune 500 companies that transformed from good to great companies, Collins (2001) found
that the 11 successful companies first hired the right people to comprise their teams before
figuring out where to take the organization. If the CEO or leaders ensure the team is composed of
the right people, then team members will already be highly self-motivated and capable. The
challenge with work groups is to avoid social loafing by ensuring each member carries their own
weight. Collective groups can become unproductive groups if the leader does not adequately
train the group and ensure that the team is comprised of the best members for the job. While a
manger wants to ensure each individual member identifies with their group, the identity of the
individual member must not be lost in the identity of the group. To avoid a loss of individual
identity, Plas (as seen in Truskie, 1999) asserted the following:
Values like individualism that undergird contemporary diversity ideas can subvert
attempts to implement successful community strategies. [She] recommends that work
communities be structured—like a sports team—with a specific role for each member.
This role specialization enables each member to make unique contributions and permits
the personal recognition needed to satisfy the individualist spirit that typifies most
Americans. (p. 49)
The second step to increase collectivism within a corporate culture is to increase
collective efficacy among members; this involves implementing diversity training to bring
attention to the positive contributions of group members who may be viewed as outsiders.
Collective efficacy and cohesion is the physical attraction and identification of members to the
group; when a group is high in cohesion, they are more likely to experience an elevated level of
collective efficacy (Boyt, Lusch, & Mejza, 2005). Collective efficacy is the belief among the
lxi
majority of group members that their team is capable of successfully completing all tasks
(Forsyth, 2010). When members believe that they are part of a successful team they are more
dedicated and committed to achieving the group's goals, and possess more motivation to do what
it takes to accomplish the goals. Groups high in collective efficacy experience greater member
satisfaction and possess less individualistic tendencies.
Work groups should have norms that stress productivity; the degree of success
experienced by the group is positively correlated to their level of collective efficacy. Groups high
in collective efficacy often lead to synergy (Forsyth, 2010). As the degree of collectivism
increases within the organization, so will the degree of productivity of the work groups; the cycle
continues as the success of the group increases cohesion and results in more collective
tendencies. "Features of the organizational context, such as...degree of collectivism in the
organizational culture...will increase the probability that team-based approaches will be
successful" (Forsyth, 2010, p. 375). A team high in collective efficacy will implement more
collective practices. Collective efficacy also results from team members sharing a sense of
ownership in the success of their team. Inspiring a sense of ownership among employees is
expected in a collective environment (Joyce et al., 2003). Ownership can be encouraged by
distributing portions of employee's income in the form of shares. Empowered employees are
more likely to identify with the company and are more committed to achieving the organization's
goals.
Diversity training is another key component to creating a more collective organization.
When individuals view their contributions as more important than those of their co-workers, an
in-group out-group bias can occur (Forsyth, 2010; Dyer, Dyer, & Dyer, 2007). A manager must
create a culture that values and respects the talents of the individual employees. Members of a
lxii
group are more likely to undervalue the contributions of members from the out-group. "If the
organization's culture encourages collectivistic values and minimizes distinctions based on tenure
and status, then diverse teammates tend to behave more cooperatively then they would in more
traditional organizations" (Forsyth, 2010, p. 365).
To avoid an in-group out-group bias from creating a void in an organization, a manger
should support positive contact, create superordinate goals and encourage decategorization
(Forsyth, 2010). Creating positive contact promotes different groups to interact collaboratively
and encourages personal interaction. Creating superordinate goals results in opposing groups
relying on the other to help them achieve their own goals. A leader must encourage
decategorization of group members and a recategorization to combine conflicting departments or
groups into a larger single team (Forsyth, 2010). The recategorization increases the cohesion
between departments and results in higher collectivism as more employees place their group
goals above their own for the greater good of the organization.
The third step to increase collectivism in corporate culture is to increase synergy and
esprit de corps among groups and employees. Synergy occurs when the group as a whole is
greater than the sum of its parts (Forsyth, 2010). The group is able to collectively achieve a goal
that the individual members would have been unable to accomplish on their own. "Synergy also
becomes more likely when the group members are highly motivated to find the correct solution"
(Forsyth, 2010, p. 303). In a group setting, valuing each opinion and taking the time to hear each
view results in a larger pool of ideas, allowing each member to contribute to a solution that the
individuals would not have found on their own. "By combining their knowledge, insights, and
ideas, groups often make better decisions than would have been made by the group members
acting independently. Positive synergy resulting from group decisions may well include the
lxiii
generation of more ideas, more creative solutions, increased acceptance of the decision by group
members, and increased opportunity for the expression of diverse opinions" (DuFrene, 2010,
para. 5). Synergy will not simply occur by combining employees into teams. A manager must
ensure that the team values each member’s contributions. Harmony and cooperation will not
occur automatically; a team would benefit from participating in team building to set a strong
foundation for synergy to occur.
A final way to increase collectivism in a corporate culture is to increase the esprit de
corps among employees. Esprit de corps is different from collective efficacy and cohesion in that
it is "an individual level phenomenon resulting from one's interaction in a group" (Boyt et al.,
2005, p. 689). Organizational esprit de corps occurs when individual employees share a strong
desire and interest for the success of the company, as well as "enthusiastically shares the values
and goals of an organization" (Boyt et al., 2005, p. 690). The increase of esprit de corps results
in several positive behaviors, as well as a more collective mindset. There is a new vitality in the
department, with more chatting and bonding between employees and less complaining. Members
who possess this feeling of unity and enthusiasm for their group more often help other team
mates or co-workers, protect the organization, make constructive suggestions, and spread
goodwill among the organization (Boyt et al., 2005; Forsyth, 2010). When esprit de corps is
present in a work group, members experience higher job satisfaction, compliance with group
norms, increased cohesion, show more helping behavior and are more productive (Boyt et al.,
2005). Esprit de corps is a positive affective tone that encourages solidarity among members of
the organization. Esprit de corps creates a work environment that is not solely based on a
monetary exchange, but also fulfills a social exchange. More fulfilling and collective
environments develop when social exchange relationships trump economic exchange (Boyt et
lxiv
al., 2005).
To increase corporate solidarity and esprit de corps, corporate leaders must maintain
high performance standards and lead their organizations competently (Boyt et al., 2005).
Leaders must also ingrain a sense of trust among employees to encourage esprit de corps. Trust
encourages employees to take risks and place faith in their leaders and co-workers. Managers
must build confidence and faith in the organization's ability to be successful. A manager should
share a common, higher purpose that will motivate the team, as well as lead by example (Boyt et
al., 2005). A leader seeking change should promote greater esprit de corps through brown bag
lunches, social events outside of work, and holiday parties (Northouse, 2007). Scheduling
quarterly events such as an annual family day encourages members to view their organization
positively and increases the level of esprit de corps (Truskie, 1999).
A manager must also care for their employees and show their appreciation through group
rewards, recognition and positive reinforcements (Martin, 2007).When morale and esprit de
corps is high, employees are more likely to maintain a collective positive outlook and have faith
in their organization's ability to succeed. Deal and Kennedy (1982) referred to culture solidarity
builders as play, ritual and ceremony. Play is the creative side of corporate life, the purpose of
which is to relieve tension; ceremony is a cultural extravaganza to help the company celebrate a
milestone or a team member. Rituals guide behavior, but are more than just habits of action, they
"give meaning to action and bring order to the chaos" (Deal & Kennedy, 1982, p. 62). An
organization's recognition rituals could include a grand festival with all employees present and a
stage where exemplary employees receive gifts and praise. Play, rituals and ceremony all
contribute to creating and sustaining corporate solidarity. Deal and Kennedy (1982) found that
some of the strongest cultures elevated their ceremonies to an extravagant level. The festivities
lxv
serve to "educate, motivate, inspire and entertain" (Deal & Kennedy, 1982, p. 74) employees.
How to increase adaptability.
Denison (as cited in Sackman, 2006), Denison and Mishra (1995), Gordon and DiTomaso
(1992), and Kotter and Heskett (1992) established that adaptability was a strong predictor of firm
growth. According to Denison (as cited in Sackman, 2006) adaptable organizations transform the
demands of the environment into action. "Recent studies clearly show that, in a complex and
turbulent market environment, adaptability is one of the key prerequisites for a good business
performance" (Tuominen et al., 2004, p. 495). The ability to alter one's culture or processes
offers a sustainable competitive advantage as the firm finds a fit with the changing environment.
There are two steps to increase the adaptability of the organization. The first step is to initiate a
proper change program. The second step is innovate the interior environment.
Leaders must initiate a proper change program by getting people on board, as well as
balancing tradition and innovation. "Top management is encouraged to become aware of the
current culture and then change that culture by developing explicit statements of value, by
building consensus, by the reinforcement of these values via managerial behavior and reward
systems, and by the socialization of the members of the organization" (Petty et al., 1995, p. 128).
Roi (2006) found that companies that "apply adaptive change leadership practices and values are
more likely to realize long term financial success" (p. 63). Change leaders are those who focus
on employees, shareholders and customers. The ability for a leader to manage all three
stakeholders during a change in corporate culture or practices leads to greater financial
performance (Kotter & Heskett, 1992; Roi, 2006).
By reviewing team performance, leaders can assess if any aspect needs to be modified in
order to allow the team to perform at its maximum potential. Dyer et al. (2007) stated that
lxvi
engaging in team building allows change to occur in the context, composition or competencies of
the team in order to improve team performance. Authors Kotter and Schlesinger (2008)
suggested three steps to manage change in teams successfully: analyze situational factors,
determine the optimal speed of change and consider methods for managing resistance.
Kotter and Schlesinger (2008) stated that most organizations must "undertake moderate
organizational changes at least once a year and major changes every four to five" ( p. 2). Most
efforts to introduce change encounter problems and severe resistance; as a result managers must
follow the three steps Kotter and Schlesinger (2008) suggested in order to make the change go
smoothly. Due to misunderstandings or lack of trust, employees can misinterpret the specifics of
what a manager is trying to change. As Dyer et al. (2007) stated, most conflict arises out of one
party violating the expectations of another party. When expectations are not shared, one party
might inadvertently violate them. Similarly, if the expectations of change are not shared among
the organization, employees could raise more resistance and prevent the change from occurring.
Kotter and Schlesinger (2008) offered suggestions on how to deal with change, including using
education and communication, participation and involvement, facilitation and support,
negotiation and agreement, manipulation, and explicit and implicit coercion. It is the leader's
responsibility to analyze the situation to determine the best means for dealing with change.
The leader is vital in convincing company members that the change program is a smart
endeavor, and that all personnel will benefit from the change. Helping employees develop a new
mind set is critical to the success of change programs. Employees will resist change because of
self interests, misunderstandings, and inherent limited tolerance for change (Truskie, 1999).
Truskie claimed that employees and organizations travel through five stages during a change
model. Employees start in a pre-contemplative stage where they see nothing wrong with the
lxvii
status quo. In stage two, they become aware that a problem exists and are in what Truskie calls
contemplation. During this stage employees weigh the pros and cons of different solutions, but
members are not completely committed to change. The third stage, preparation, allows members
to adopt new practices or behaviors and make plans to take action in the near future. Stage four is
action. The major challenge to step four is for members to maintain the new behavior or
processes indefinitely. The fifth stage is maintenance, where the organization takes steps to
prevent a relapse to old behaviors or practices. Many change plans fail because leaders do not
ensure that their members are in the proper stage before moving forward. Employees might resist
the new practices that encourage team work if they are still in the contemplative stage. Leaders
must help employees move through each stage before reaching the action stage. To help
members move from the pre-contemplative to contemplative stage an outside consultant or
leader could present a training seminar to help members understand the direction of the firm.
During this program, members become engaged in self-evaluation and evaluation of the firm to
understand the problem areas. Members are asked their opinions and suggestions to achieve
directional goals.
The second step to increase a firm's adaptability is innovate the environment by updating
technology systems, and encouraging organizational learning. Innovation is a characteristic of
high performing organizational cultures (Jain, 1998). "How a company reacts to technological
change is a good indicator of its inner drive for greatness versus mediocrity" (Collins, 2001, p.
162). Great companies are driven by the desire to turn unrealized potential into greatness.
Managers can innovate the work environment by introducing pioneering devices that remove
burdens from their employees. By introducing small innovative changes that aid employees in
their everyday positions, employees become accustomed to accepting innovations because they
lxviii
understand the value they bring. This process minimizes anxiety associated with change as
employees gradually accept the idea that the innovative changes will help them fulfill their
responsibilities.
Managers can also enhance firm innovativeness through technology management and
increasing employees' involvement in strategic market planning (Tuominen et al., 2004).
Encouraging employee involvement when deciding on new technology to introduce into the
workplace or making strategic decisions increases their commitment to the change program.
"Adaptability in terms of searching and utilizing the newest technology is critical to performing
well in technologically turbulent environments" (Tuominen et al., 2004, p. 505). What set
winning organizations apart from their competitors was their ability to excel in industry
transforming innovations (Joyce et al., 2003). Winning organizations were eager to adopt
innovative ideas and to create a technological breakthrough that could transform their industry.
Innovation is one of the four secondary areas of management practices that Joyce, et al.
(2003) stated was a key to sustained business success. Although the risks and financial burdens
are high with innovation, an organization's willingness to undertake the endeavor shows their
commitment to rise above and beyond their competitors. Winning organizations did not just
improve upon old products, but introduced groundbreaking, disruptive technologies (Joyce et al.,
2003). Winning companies also used breakthroughs to advance internal and external goals.
Technology should accelerate change, not cause it; adapting to new technology should
not occur through a revolutionary process, but through a gradual transformation (Collins, 2001).
Collins (2001) suggested the crawl, walk, run approach to adopting new technology. First, a
company should slowly approach the new concept and think how the advancement could help
them improve performance. Next, the company can begin to walk by finding ways to incorporate
lxix
the new technology into daily operations. The steps should be thoroughly evaluated, with a
conscious pursuit of understanding all consequences before adopting the new processes. The last
step is to run with the new concept, once the organization has figured out how to harness the new
technology to set them in a forward motion (Collins, 2001). Carefully selected technology should
be used as a tool to accelerate momentum (Collins, 2001). If the technology will not support the
organization in becoming the best in their industry, then it should not be adopted. The successful
culture thinks about technology differently, does not shy away out of the fear of the unknown,
but is driven to be bigger and better and understand that which they do not (Collins, 2001).
Encouraging and supporting organizational learning is the final step in creating an
adaptable organization. In organizational learning, "the organization receives, translates, and
interprets signals from the environment into opportunities for encouraging innovation, gaining
knowledge, and developing capabilities" (Denison, as cited in Sackman, 2006, p. 16).
Organizational learning can take the form of training seminars to teach the use of a new product
or team-based learning to help employees maximize their productivity when working in groups.
Organizational learning benefits the employees who are asked to participate in the new training
experience, as well as co-workers who work with the employee. Learning opportunities
introduce new concepts, practices and innovative ideas into a stagnant workplace. Encouraging
organizational learning in the workplace allows managers to send the message that they reward
employees who are invested in their own future, and who want to participate in opportunities to
increase their contribution in the workplace.
How to increase culture strength.
Deal and Kennedy (1982), Gordon and DiTomaso (1992) and Kotter and Heskett (1992)
found a relationship between strong cultures and positive firm performance. Culture strength is
lxx
the extent that the perceived culture is similar, understood, and adopted across all divisions and
levels of the organization, as well as the strength of bonds linking individuals to the larger group
(Forsyth, 2010). Managers may perceive a high degree of collectivism among their subordinates,
but the subordinates may in fact be employing individual practices to accomplish their goals. To
measure culture strength, employees from a variety of management and non-management levels
can be given a survey to measure degrees of work practices and work place beliefs; their
responses can then be compared across groups within the organization.
Negative conflict is kept at a minimum in organizations with a strong and balanced
culture. The goal for leaders is to integrate appropriate characteristics to achieve a strong culture
(Truskie, 1999). According to Deal and Kennedy (1982), “a strong culture has almost always
been the driving force behind continuing success in American business" (p. 5). Deal and
Kennedy (1982) stated that any organization can acquire a strong culture, as long as the leaders
can recognize the deficiencies in the current culture and then adapt it to fit the needs of their
environment. When an organization has a weak culture, confusion and conflict occur (Banton,
2002). Employees may become confused on policies and will muddle the goals of the
corporation with their own goals, resulting in personal financial motivations trumping those of
the work groups. "Strong culture companies care about all of their people and take pains to see
they are all treated appropriately" (Deal & Kennedy, 1982, p. 130). To increase culture strength
an organization can take two steps, the first is to reiterate the corporate mission statement, and
the second is to be consistent with all processes throughout the organization.
To increase the strength of the culture, leaders and managers must first re-iterate the
corporate mission statement and ensure that group goals are aligned with the vision and mission
statements. Possessing a mission statement is the fourth trait that Denison (as cited in Sackman,
lxxi
2006) found linked to organizational performance, and was the strongest predictor for return on
assets of all cultural traits (Denison & Mishra, 1995). When members of an organization share a
set of core values, employees have a clear set of expectations (Denison, as cited in Sackman,
2006). The mission statement provides a clear sense of purpose and direction, as well as
expresses a vision for the future of the organization. A strong mission statement allows an
organization to "shape current behavior by envisioning a desired future state" (Denison, as cited
in Sackman, 2006, p. 16). The Organizational Culture Model measures mission by three
indexes: strategic direction and intent, goals and objectives, and vision (Denison, as cited in
Sackman, 2006). Leaders should abide by the three indexes when updating their current mission
statement to ensure the goals of team members are aligned with the mission of the organization.
Establishing and abiding by clear company values is one of the characteristics that
winning cultures possessed in Joyce's et al. (2003) 4 + 2 model for success. In a strong culture,
employees are more likely to make choices that support the values they were taught to uphold. A
leader can reinforce the mission statement and core values by incorporating them into daily
communications, such as memos and emails. Posting the mission and vision statement in
multiple locations will ensure that employees are reminded of these values. This can also be done
by instructing employees and managers to read the statements annually and sign a written
confirmation that they received the information (Joyce et al., 2003).
Truskie (1999) stated that a well defined, balanced and integrated culture utilizes
employees who know and believe in the vision of the organization and who are emotionally
committed to the core values. The values and mission statement may be well communicated to
employees, but the content may be too abstract, broad, or too general. The leaders must
reformulate organizational direction using SMART goals, goals that are specific, measureable,
lxxii
attainable, realistic and timely. When employees are involved in creating the mission statement
they are more likely to feel committed to the goals of the organization. Truskie (1999) also stated
that organizational direction must be clear, concise and current in order to be compelling. The
mission, vision and business plan should be easy to understand and should clearly identify the
direction of the firm. The statements should "translate into meaningful words relating to the work
roles and responsibilities of all members of the organization" (Truskie, 1999, p. 66). The mission
and vision should be brief enough that employees and stakeholders can remember it. According
to Deal and Kennedy (1982), shared values impact performance in three ways, managers and
employees will "give extraordinary attention to whatever matters are stressed in the corporate
value system,... down-the line managers make marginally better decisions because they are
guided by their perception of the shared value ... and people simply work a little harder because
they are dedicated to the cause" (p. 33).
The second step to achieve a strong culture is to be consistent with all processes
throughout all levels. According to Denison (as cited in Sackman, 2006) consistent and well
integrated organizations are more effective. Consistency is one of the four traits that has a
positive impact on organizational performance and will lead to a stronger shared culture
according to Denison's Organizational Cultural Model (Denison, as cited in Sackman, 2006).
Consistent organizations develop an internal governance system that is agreed upon by managers
and subordinates that creates a clear list of "do's" and "don'ts". Employees from consistent
organizations are more committed to their positions, and the consistency acts a "powerful source
of stability" (Denison, as cited in Sackman, 2006, p. 14).
In addition to cooperation, consistency is one of the four models that Truskie (1999)
included in his L4 Strategy to obtain a balanced culture. The leader should set clear objectives
lxxiii
and targets, implement standard operating procedures, establish standards and rules, ensure
consistency in treatment of employees and in the communication chain of command (Truskie,
1999). Collins (2001) found that establishing a consistent culture was one of the five steps to
achieving a great company; "the good-to-great companies built a consistent system with clear
constraints, but they also gave people freedom and responsibility within the framework of that
system " (p. 125). Strong cultures communicate to their employees exactly how they are
expected to behave, through constant standards and procedures. Providing employees with
consistent modes of action and practices, and consistently rewarding them for adhering to the
established practices reinforces the positive behavior, resulting in a more organized and cohesive
work environment.
Summary
Using research and development, the researcher created a survey tool to measure the
degree of collectivism, adaptability and culture strength in an organization's culture. The peer
review panel established the validity of the created instrument. The “Measuring Collectivism,
Adaptability and Strength in Your Corporate Culture Survey" bridged the gap in the existing
literature on the culture-performance link because it presented the opportunity to measure all
three of the traits that were found to increase firm productivity. The responses of the survey will
allow managers to determine which of the three traits are absent in their culture. The researcher
then created a handbook, presented in chapter four, to guide managers in taking steps to adopt
more effective practices into their culture.
lxxiv
Chapter IV- Handbook
Creating a Collective Corporate Culture:
A Small Business Guide to
Maximize Performance
Corporate Culture
Values
Beliefs
Norms
Organization Practices
Rituals
Power Structures
75
Table of Contents
Introduction
Who Should Use This Guide? 68
When Should This Guide Be Used? 68
How to Increase Collectivism 70
Set Group Goals and Emphasize Team Work 70
Increase Collective Efficacy Among Members 72
Increase Esprit de Corps 73
Collectivism Activity 1 76
Collectivism Activity 2 77
Collectivism Activity 3 78
How to Increase Adaptability 79
Initiate Proper Change Programs 79
Innovate Interior Environment 81
Adaptability Activity 1 84
Adaptability Activity 2 85
How to Increase Culture Strength 86
Re-iterate Mission Statement 86
Be Consistent With All Processes 88
Culture Strength Activity 1 89
Culture Strength Activity 2 90
76
References 91
Creating a Collective Corporate Culture: A Small Business Guide to Maximize Performance
"Leaders can help their organizations become more effective and achieve superior long-term results by establishing an integrated, balanced organizational culture"
(Truskie, 1999, p. 78)
Corporate Culture is the shared philosophy of values and beliefs that guide everyday processes and interactions. Does your company emphasize team work as a means to accomplish goals, or does it encourage individual work and personal accomplishments? Creating a collective corporate culture that supports the goals of the mission and vision statements allows for congruency in the workplace and will result in more satisfied and productive employees.
Who should read this: Managers of all levels, Human Resources directors, scholars interested in corporate culture, entrepreneurs who desire to create a strong, collective corporate culture, and employees who want to operate more efficiently. While culture change is initially instigated by top management, anyone can educate themselves on how to create a more profitable and successful culture.
When should this guide be used: First, hand out the survey tool. Next, reference "Scoring the Survey", if the score for any of the three traits falls below the optimum score, then consult this handbook on how to adapt your current culture.
This handbook should not replace a code of conduct or an employee handbook. It is to be used to adapt current practices and create a more collective and successful corporate culture.
What types of organizations should use this guide: Awareness is the first step in recognizing when an organization is operating below par. Creating a strong, collective and adaptive culture requires examination, reflection and adaptation (Truskie, 1999). The following handbook is for organizations that are not yet in a crisis, and have ample time to take less radical steps towards a rebalance move. If performance and financial levels are adequate, but are not operating at full potential, a rebalance is more appropriate.
According to Petty, Beadles, Lowery et al., (1995) "the starting point in guiding
employees’ behavior and performance is a formal statement of management
philosophy and key values, supported by actual managerial practice" (p. 487).
77
The DILEMMA
What happens in an acquisition or merger and two opposing cultures attempt to combine? What does the resulting company look like? It will most likely be an imbalanced culture with employees who are confused about every day practices.
The SOLUTION
Provide a random sample of both companies' employees with the Culture Survey. Once the manager is aware of which winning trait(s) are missing in the current culture, then refer to this guide to implement the activities from the section that requires more attention.
After implementing activities:
Company A is
described as...
Company B is
described as...
Innovative
Adaptive
Collectivists
Strong Culture
Indiviudalists
Culture C is described as...
A Strong Culture
Adaptive
Collective
78
HOW TO INCREASE COLLECTIVISM
Collectivism and collective tendencies are positively related to firm performance. There are three
steps to increase collectivism in an organization. The first step is to emphasize team work as a
means to accomplish goals and to reward team accomplishments. The second step is to increase
collective efficacy among groups and departments. The third step to increase collectivism is to
increase synergy and esprit de corps among employees.
1. Set group goals, not individual goals, and emphasize team work. Working in
groups is a universal characteristic across all societies (Forsyth, 2010). Groups fulfill the need for
positive, enduring relationships with others. By organizing company processes into work groups,
a manager is setting the tone for an inclusive, collective identity to form between group
members. Groups tend to value the traditions and ideologies that are shared by the majority of
the members. The process of interacting on a team creates an environment where members avoid
disagreement, respect authority and are encouraged to compromise. When the processes of the
group encourage collective tendencies, the members are more likely to cooperate, rather than
compete with their co-workers, and are also more likely to create long-lasting relationships
(Forsyth, 2010).
Group and team-based work creates a degree of interdependency that leads to a more
collective environment (Forsyth, 2010). Interdependents put the needs of the group before their
own. When forming a work team to accomplish a task, leaders should encourage employees to
view themselves as part of a larger group identity, and offer team based compensation. Team
based compensation can be in addition to regular wages and treated as a bonus. Each team
member, including senior staff, should receive the same percentage based on the performance of
79
the team (Truskie, 1999). Collins (2001) suggested that compensation be used to keep the right
members on the team, not necessarily to motivate the "right" behaviors from the wrong people. If
companies offer rewards based on self interest then people will tend to be more individualistic
and only look out for their own interests, and will also be less productive (Benkler, 2011). Joyce
et al. (2003) found that winning teams rewarded achievement with pay for performance, but also
with acknowledgement and public recognition.
Teaching members to refer to the team as "us" or "we" encourages the individuals to view
themselves as part of the in-group, which also increases their commitment to the team's goals.
Recognizing group achievements, removing rigid chains of command and teaching conflict
resolution techniques to the group ensures your teams operate at maximum efficiency. Further,
ensuring team behavior is part of performance appraisals is crucial; employees must understand
their performance as a team member is part of their employee evaluation (Truskie, 1999). A
leader can also provide company gear and clothing for team members to wear and reward
employees who embrace their logos. Team members who physically look similar will find it
easier to identify with the larger group.
Collins (2001) found that one of the five steps to creating great, not just good, companies
was to get the right people on the team. Collins (2001) asserted that the right people must be on
the team and in the correct roles for their skill level for the team to operate effectively. If the
CEO or leaders ensure the team is composed of the right people with the right skill sets, then
team members will already be highly self-motivated and capable. Collective groups can become
unproductive groups if the leader does not adequately train the group and ensure that the team is
composed of the best members for the job. While a manger wants to ensure each member
identifies with their group, the identity of the individual member must not be lost in the identity
80
of the group.
2. Increase collective efficacy among members, this involves implementing diversity
training to call attention to the positive contributions of group members who may have
once been viewed as outsiders. Collective efficacy and cohesion is the physical attraction and
identification of members to the group (Boyt, Lusch, & Mejza, 2005). Collective efficacy is the
belief among the majority of group members that their team is capable of achieving the group's
goals and successfully completing all tasks (Forsyth, 2010). When members believe that they are
part of a successful team, they are more dedicated and committed to achieving the group's goals,
and possess more motivation to do what it takes to accomplish the goals. Groups high in
collective efficacy experience greater member satisfaction and possess less individualistic
tendencies.
Work groups should have norms that stress productivity; the degree of success
experienced by the group is positively correlated to the level of collective efficacy. Groups high
in collective efficacy often lead to synergy (Forsyth, 2010). As the degree of collectivism
increases within the organization, so will the degree of productivity of the work groups; the cycle
continues as the success of the work group increases cohesion and results in more collective
tendencies. Collective efficacy also results from team members sharing a sense of ownership in
the success of their team. Inspiring a sense of ownership among employees is expected in a
collective environment (Joyce et al., 2003). Ownership can be encouraged by distributing
portions of employee's income in the form of shares. Empowered employees are more likely to
identify with the company and are more committed to achieving the organization's goals.
Diversity training is another key component to creating a more collective organization.
When individuals view their contributions as more significant than those of their co-workers, an
81
in-group out-group bias can occur (Forsyth, 2010; Dyer et al., 2007). A manager must create a
culture that values and respects the talents of individuals because members of the in-group are
more likely to undervalue the contributions of members from the out-group.
"If the organization's culture encourages collectivistic values and minimizes distinctions based on tenure and status, then diverse teammates tend to behave more cooperatively then
they would in more traditional organizations" (Forsyth, 2010, p. 365).
To avoid an in-group out-group bias from creating a void in an organization, a manger
should create positive contact, create superordinate goals and encourage decategorization
(Forsyth, 2010). Creating positive contact promotes different groups to interact collaboratively
and encourages personal interaction. Creating superordinate goals results in opposing groups
relying on the other to help them achieve their own goals. A leader must encourage
decategorization of group members and a recategorization to combine conflicting departments or
groups into a larger single team (Forsyth, 2010). The recategorization increases the cohesion
between departments and results in higher collectivism as more employees place their group
goals above their own for the greater good of the organization.
3. The third step to increase collectivism in corporate culture is to increase synergy
and esprit de corps among groups and employees. Synergy occurs when the group as a whole
is greater than the sum of its parts (Forsyth, 2010). The group is able to collectively achieve a
goal that the individual members would have been unable to accomplish on their own. "Synergy
also becomes more likely when the group members are highly motivated to find the correct
solution" (Forsyth, 2010, p. 303). In a group setting, valuing each opinion and taking the time to
hear each view results in a larger pool of ideas, allowing each member to contribute to a solution
that the individuals would not have found on their own. "By combining their knowledge,
82
insights, and ideas, groups often make better decisions than would have been made by the group
members acting independently. Positive synergy resulting from group decisions may well
include the generation of more ideas, more creative solutions, increased acceptance of the
decision by group members, and increased opportunity for the expression of diverse opinions"
(DuFrene, 2010, para. 5). For synergy to occur, a manager must ensure that the team values each
member’s contributions. A team would benefit from participating in team building to set a strong
foundation for synergy to occur.
A final way to increase collectivism in a corporate culture is to increase the esprit de
corps among employees. Esprit de corps is different from collective efficacy and cohesion in that
it is "an individual level phenomenon resulting from one's interaction in a group" (Boyt, Lusch,
& Mejza, 2005, p. 689). Organizational esprit de corps occurs when individual employees share
a strong desire and enthusiasm for the success of the company, as well as "enthusiastically shares
the values and goals of an organization" (Boyt et al., 2005, p. 690). The increase of esprit de
corps results in several positive behaviors, as well as a more collective mindset. There is a new
vitality in the department, with more chatting and bonding between employees and less
complaining. Members who possess this feeling of unity and enthusiasm for the group more
often help other team mates or co-workers, protect the organization, make constructive
suggestions, and spread goodwill among the organization (Forsyth, 2010; Boyt et al., 2005).
When esprit de corps is present in a work group, members experience higher job satisfaction,
compliance with group norms, increased cohesion, show more helping behavior, and are more
productive (Boyt et al., 2005). Esprit de corps is a positive affective tone that encourages
solidarity among members of the organization. Esprit de corps creates a work environment that is
not solely based on a monetary exchange, but also fulfills a social exchange. More fulfilling and
83
collective environments develop when social exchange relationships trump economic exchange.
An organization that experiences esprit de corps will produce happier and more motivated
employees (Boyt et al., 2005).
To increase corporate solidarity and esprit de corps, corporate leaders must maintain
high performance standards and lead their organizations competently (Boyt et al., 2005).
Leaders must also ingrain a sense of trust among employees to encourage esprit de corps. Trust
encourages employees to take risks and place faith in their leaders and co-workers. Managers
must build confidence and faith in the organization's ability to be successful. A manager should
share a common, higher purpose that will motivate the team, as well as lead by example (Boyt et
al., 2005). A leader seeking change should promote greater esprit de corps through brown bag
lunches, social events outside of work, and holiday parties (Northouse, 2007). Scheduling
quarterly events such as an annual family day encourages members to view their organization
positively and increases the level of esprit de corps (Truskie, 1999).
A manager must also care for their employees and show their appreciation through group
rewards, recognition and positive reinforcements (Martin, 2007).When morale and esprit de
corps is high, employees are more likely to maintain a collective positive outlook and have faith
in their ability to succeed. Deal and Kennedy (1982) referred to culture solidarity builders as
play, ritual and ceremony. Play is the creative side of corporate life, the purpose of which is to
relieve tension, ceremony is a cultural extravaganza to help the company celebrate a milestone or
a team member. Rituals guide behavior, but are more than just habits of action, they "give
meaning to action and bring order to the chaos" (Deal & Kennedy, 1982, p. 62). Play, rituals and
ceremony all contribute to creating and sustaining corporate solidarity. Deal and Kennedy (1982)
found that some of the strongest cultures elevated their ceremonies to an extravagant level. The
84
festivities serve to "educate, motivate, inspire and entertain" (Deal & Kennedy, 1982, p. 74).
Collectivism Activity 1
Skills Achieved: Increasing Team Performance, Achieving Team Commitment and Trust
How to Maximize Team Performance
Source: Dyer et al. (2007)
1. Form a team of highly qualified, diverse individuals
2. Inform the team that their bonus depends on the success of the team
3. Determine goal(s) or problems of the group
4. Encourage the team to gather data through surveys, interviews and data sharing
5. Summarize data, determine priorities, and determine which issues can be solved by the team
6. Develop action plans and specific roles for each member
7. Ensure commitment by all members to the action plan; implement the changes
85
8. Evaluate results and determine areas still in need of improvement, set future goals for continued success
86
Collectivism Activity 2
Skills Achieved: Team Building, Collective Efficacy, Synergy, Collaboration
The Appreciative Inquiry Approach to Team Building
Source: Dyer et al. (2007)
Directions: Ask team members to fill out this form and then share their responses with the group
1. Think of a time when you were on a hugely successful team, a time that you felt energized, fulfilled, and the most effective- when you were able to accomplish even more than you imagined. What made it such a good team? Tell the story about the situation, the people involved, and how the team achieved its breakthrough.______________________________________________________________________________
______________________________________________________________________________
______________________________________________________________________________
______________________________________________________________________________
______________________________________________________________________________
2. Without being humble, what was it about you that contributed to the success of the team? Describe in detail these qualities and what you value about yourself that enables team success.______________________________________________________________________________
______________________________________________________________________________
______________________________________________________________________________
______________________________________________________________________________
______________________________________________________________________________
3. It is one year from today and out team is functioning more successfully that any of you imagined. What are we doing, how are we working together differently, what does this success look like and how did we make it happen?______________________________________________________________________________
______________________________________________________________________________
______________________________________________________________________________
______________________________________________________________________________
______________________________________________________________________________
87
Collectivism Activity 3
Skills achieved: Diversity Awareness
Classification Game
Source: Huddle (2012)
Time Required: 10-15 minutes
The classification game can be a quick icebreaker or a more complex activity. Before splitting
the room into teams of four, explain the concept of “pigeon-holing someone,” which means
classifying someone as something or stereotyping someone. It should be made clear that this type
of classification is subjective and unhelpfully judgmental. Instruct the participants to introduce
themselves to those in their team and quickly discuss some of their likes, dislikes, etc. After the
introductions, reveal to the teams that it will be their job to discover how they should classify
themselves- as a team- into two or three subgroups by using criteria that contains no negative,
prejudicial, or discriminatory judgments. Examples of these subgroups can include night owls
and morning people, pineapple pizza lovers and sushi lovers, etc. This exercise encourages co-
workers to get to know each other better and enables them to collectively consider the nature of
all individuals within the team.
88
HOW TO INCREASE ADAPTABILITY
Adaptability is a strong predictor of firm growth; adaptable organizations transform the
demands of the environment into action. "Recent studies clearly show that, in a complex and
turbulent market environment, adaptability is one of the key prerequisites for a good business
performance" (Tuominen et al., 2004, p. 495). The ability to alter one's culture or processes
offers a sustainable competitive advantage as the firm finds a fit with the changing environment.
There are two steps to increase the adaptability of the organization. The first step is to initiate a
proper change program. The second step is innovate the interior environment.
1. Leaders must initiate a proper change program by getting people on board, as
well as balancing tradition and innovation. "Top management is encouraged to become aware
of the current culture and then change that culture by developing explicit statements of value, by
building consensus, by the reinforcement of these values via managerial behavior and reward
systems, and by the socialization of the members of the organization" (Petty et al., 1995, p. 128).
Roi (2006) found that companies that "apply adaptive change leadership practices and values are
more likely to realize long-term financial success" (p. 63). Change leaders are those who focus
on employees, shareholders and customers. The ability for a leader to manage all three
stakeholders during a change in corporate culture or practices leads to greater financial
performance (Kotter & Heskett, 1992; Roi, 2006).
By reviewing team performance, leaders can assess if any aspect needs to be modified in
order to allow the team to perform at its maximum potential. Dyer et al. (2007) stated that
engaging in team building allows change to occur in the context, composition or competencies of
the team in order to improve team performance. Authors Kotter and Schlesinger (2008)
suggested three steps to manage change in teams successfully: analyze situational factors,
89
determine the optimal speed of change and consider methods for managing resistance.
Kotter and Schlesinger (2008) stated that most organizations must "undertake moderate
organizational changes at least once a year and major changes every four to five" ( p. 2). Most
efforts to introduce change encounter problems and severe resistance; as a result managers must
follow the three steps Kotter and Schlesinger (2008) suggested in order to make the change go as
smoothly as possible. Due to misunderstandings or lack of trust, employees can misinterpret the
specifics of what a manager is trying to change. As Dyer et al. (2007) stated, most conflict arises
out of one party violating the expectations of another party. When expectations are not shared,
then one party might inadvertently violate them. Similarly, if the expectations of change are not
shared among the organization, employees could raise more resistance and prevent the change
from occurring. Kotter and Schlesinger (2008) offered suggestions on how to deal with change,
including using education and communication, participation and involvement, facilitation and
support, negotiation and agreement, manipulation and co-optation, and explicit and implicit
coercion.
The leader is vital in convincing company members that the change program is a smart
endeavor, and that all personnel will benefit from the change. Helping employees develop a new
mind set is critical to the success of change programs. Employees will resist change because of
self interests, misunderstandings, and inherent limited tolerance for change (Truskie, 1999).
Truskie claimed that employees and organizations travel through five stages during a change
model. Employees start in a pre-contemplative stage where they see nothing wrong with the
status quo. In stage two, they become aware that a problem exists and are in what Truskie calls
contemplation. During this stage, employees weigh the pros and cons of different solutions, but
members are not completely committed to change. The third stage, preparation, allows members
90
to adopt new practices or behaviors, and make plans to take action in the near future. Stage four
is action. The major challenge to step four is for members to maintain the new behavior or
processes indefinitely. The fifth stage is maintenance, where the organization takes steps to
prevent a relapse to old behaviors or practices. Many change plans fail because leaders do not
ensure that their members are in the proper stage before moving forward. Employees will resist
the new practices if they are still in the contemplative stage. Leaders must help employees move
through each stage before reaching the action stage. To help members move from the pre-
contemplative to contemplative stage an outside consultant or leader could present a training
seminar to help members understand the direction of the firm. During this program, members
become engaged in self-evaluation and evaluation of the firm to understand the weaker areas.
Members are asked their opinions and suggestions to achieve directional goals.
2. The second step to increase a firm's adaptability is it innovate the environment by
updating technology systems. "How a company reacts to technological change is a good
indicator of its inner drive for greatness versus mediocrity" (Collins, 2001, p. 162). Great
companies are driven by the desire to turn unrealized potential into greatness. Managers can
innovate the work environment by introducing pioneering devices that remove burdens from
their employees. By introducing small innovative changes that aid employees in their everyday
positions, employees become accustomed to accepting innovations because they understand the
value they bring. This process minimizes anxiety normally associated with change programs as
employees gradually accept the idea that the innovative changes will help them fulfill their
responsibilities.
Managers can also enhance firm innovativeness through technology management and
increasing employees' involvement in strategic market planning (Tuominen et al., 2004).
91
"Adaptability in terms of searching and utilizing the newest technology is critical to performing
well in technologically turbulent environments" (Tuominen et al., 2004, p. 505). What set
winning organizations apart from their competitors was their ability to excel in industry
transforming innovations (Joyce et al., 2003). Winning organizations were eager to adopt
innovative ideas and to create a technological breakthrough that could transform their industry.
Innovation is one of the four secondary areas of management practices that Joyce, et al.
(2003) stated was a key to sustained business success. They stressed the importance of making
innovations that were industry transforming. Although the risks and financial burdens are high
with innovation, an organization's willingness to undertake the endeavor shows the company's
commitment to rise above and beyond their competitors. Winning organizations did not just
improve upon old products, but presented groundbreaking, disruptive technologies (Joyce et al,
2003). Winning companies also used breakthroughs to advance internal and external goals.
Technology should accelerate change, not cause it; adapting to new technology should
not occur through a revolutionary process, but through a gradual transformation (Collins, 2001).
Collins (2001) suggested the crawl, walk, run approach to adopting new technology. First, a
company should slowly approach the new concept and think how the advancement could help
them do what they do better. Next, the company can begin to walk by finding ways to
incorporate the new technology into daily operations. The steps should be thoroughly evaluated,
with a conscious pursuit of understanding all consequences before adopting the new processes.
The last step is to run with the new concept once the organization has figured out how to harness
the new technology to set them in a forward motion (Collins, 2001). Carefully selected
technology should be used as a tool to accelerate momentum. If the technology will not support
the organization in becoming the best in their industry, then it should not be adopted (Collins,
92
2001). The successful culture thinks about technology differently, does not shy away out of the
fear of the unknown, but is driven to be bigger and better and understand that which they do not
(Collins, 2001).
Adaptability Activity 1
Skills Achieved: Initiating a Proper Change Program, Achieving Employee Commitment
Embracing Change in the Workplace
93
Adapted from Dyer et al. (2007)
1st step- Recognize an imbalanceAre our work teams operating below par? ________________________________
Are any of the following symptoms present in our work teams?
Loss of production or output
Continued unexplained increase in costs
Increase in complaints from members
Complaints from users or customers Evidence of conflict
Confusion about assignments Apathy or lack of interest
Lack of initiative or imagination
Poor decision making Negative reactions to
manager
2nd step- Conduct survey with employees
Ask employees the above questions to discover what areas they feel require attention.
3rd step- Examine which area requires more attention
Which of the above symptoms were the most common?
Form focus groups comprised of employees representing a sample of all levels of the organization to brainstorm solutions to remedy each symptom. Have each focus group share their solutions with the larger group.
4th step- The leader starts consistently thinking about the mental image of what the culture should look like.
Share the ideas from the brainstorm section with the organization. Express what symptoms were bringing production down and how the solution(s)
will remedy the problem(s). Encourage employees to embrace the new ideas and changes. Implement new ideas in the work place. Reflect on how successful the changes were. Adapt changes as needed or revisit Step 3.
94
Adaptability Activity 2
Skills: Increasing Innovation
How to Adopt Innovative Technology
Source: Collins (2001)
Crawl
First, a company should slowly approach the new concept and think how the advancement can help them do what they do better.
Walk
Next, the company can begin to walk by finding ways to tie in the new technology to daily operations. The steps should be calmly thought out, with a deliberate pursuit of understanding all consequences before adopting the new processes.
Run
The last step is to run with the new concept, once the organization has figured out how to harness the new technology to set them in a forward motion.
95
HOW TO INCREASE CULTURE STRENGTH
Culture strength is the extent that the perceived culture is similar, understood, and
adopted across all divisions and levels of the organization, as well as the strength of bonds
linking individuals to the larger group (Forsyth, 2010). Managers may perceive a high degree of
collectivism among their subordinates, but the subordinates may in fact be employing individual
practices to accomplish their goals. A strong culture does not develop over night; the goal for
leaders is to develop a strong, balanced culture by integrating appropriate characteristics
(Truskie, 1999). Any culture can acquire a strong culture, as long as the leaders can recognize
the deficiencies in their current culture and then adapt it to fit the needs of their environment.
Negative conflict is kept at a minimum in organizations with a strong and balanced
culture. When an organization has a weak culture, confusion and conflict occur (Banton, 2002).
Employees may become confused on policies and will muddle the goals of the corporation with
their own goals. When this occurs, personal goals based on financial motivations may trump
those of the work groups. To increase culture strength, an organization can take two steps, the
first is to reiterate the corporate mission statement, and the second is to be consistent with all
processes throughout the organization.
1. Leaders and managers must re-iterate the corporate mission statement, and
ensure that goals are aligned with the vision and mission statements. When members of an
organization share a set of core values, employees have a clear set of expectations (Denison, as
cited in Sackman, 2006). The mission provides a clear sense of purpose and direction, as well as
expresses a vision for the future of the organization. A strong mission statement allows an
organization to "shape current behavior by envisioning a desired future state" (Denison, as cited
in Sackman, 2006, p. 16). In a strong culture, employees are more likely to make choices that
96
support the values they were taught to uphold. A leader can reinforce the mission statement and
core values by incorporating them into daily communications, such as memos and emails.
Posting the mission and vision statement in multiple locations will ensure that employees are
reminded of these values. This can also be done by instructing employees and managers to read
the statements annually and sign a written confirmation that they received the information (Joyce
et al., 2003).
Truskie (1999) stated that a well defined, balanced and integrated culture utilizes
employees who know and believe in the vision of the organization and who are also emotionally
committed to the core values. The values and mission statement may be well communicated to
employees, but the content may be too abstract, broad, or too general. The leaders must
reformulate organizational direction using SMART goals, goals that are specific, measureable,
attainable, realistic and timely. When employees are involved in creating the mission statement,
they are more likely to feel committed to the goals of the organization. Truskie (1999) also stated
that organizational direction must be clear, concise and current in order to be compelling. The
mission, vision and business plan should be easy to understand and should clearly define the
direction of the firm. The mission and vision should be brief enough that employees and
stakeholders can remember it. According to Deal and Kennedy (1982), shared values impact
performance in three ways, managers and employees will "give extraordinary attention to
whatever matters are stressed in the corporate value system,... down-the line managers make
marginally better decisions because they are guided by their perception of the shared value ... and
people simply work a little harder because they are dedicated to the cause" (p. 33).
2. The second step to achieve a strong culture is to be consistent with all processes
97
throughout all levels. According to Denison (as cited in Sackman, 2006) consistent and well
integrated organizations are more effective. Consistency is one of the four traits that has a
positive impact on organizational performance and will lead to a stronger shared culture
(Denison, as cited in Sackman, 2006). Consistent organizations develop an internal governance
system that is agreed upon by managers and subordinates that creates a clear list of "do's" and
"don'ts". Employees from consistent organizations are more committed to their positions, and the
consistency acts as a "powerful source of stability" (Denison, as cited in Sackman, 2006, p. 14).
The leader should set clear objectives and targets, implement standard operating
procedures, establish standards and rules, ensure consistency in treatment of employees and a
consistency in the communication chain of command (Truskie, 1999). Employees who perceive
fairness in treatment between themselves and their co-workers are more likely to respect the
values of the organization. Strong cultures communicate to their employees exactly how they are
expected to behave through constant standards and clear constraints. Providing employees with
consistent modes of action and practices, and consistently rewarding them for adhering to the
established practices reinforces the positive behavior, resulting in a more organized and cohesive
work environment.
Culture Strength Activity 1
98
Skills achieved: Determining Consensus on Employee Operations
Determining Your Culture Strength Through Employee Agreement
Source: Dyer et al. (2007)
Confirmation- Disconfirmation Process. Group members summarize how they view themselves and their own work performance- their strengths and areas that need improvement. Others are asked to confirm or disconfirm the person's diagnosis. This will provide an idea of the degree of consensus among employees.
Management Profile. Each person presents the profile of his or her effectiveness from previously gathered data. The group confirms or disconfirms the profile.
99
Culture Strength Activity 2Skills achieved: Aligning Goals with the Corporate Mission Statement
Individual Goals and Our Mission Statement
Directions: Distribute to individuals quarterly, discuss responses within work teams.
1. What are my individual work goals?__________________________________________________________________________________________________________________________________________________________________________________________________________________________________________
2. What are the goals of my group?__________________________________________________________________________________________________________________________________________________________________________________________________________________________________________
3. List at least three of the organization's core values:__________________________________________________________________________________________________________________________________________________________________________________________________________________________________________
4. Paraphrase the organization's mission statement:__________________________________________________________________________________________________________________________________________________________________________________________________________________________________________
5. How do my individual goals help the organization achieve our mission statement?__________________________________________________________________________________________________________________________________________________________________________________________________________________________________________
6. How do my group's goals help achieve the organization's mission statement?__________________________________________________________________________________________________________________________________________________________________________________________________________________________________________
7. Are my co-workers helping achieve the organization's goals as well?__________________________________________________________________________________________________________________________________________________________________________________________________________________________________________
100
Handbook References
Banton, M. (2002). A study of corporate culture and its relationship to the financial performance of an organization. (Doctoral dissertation). Retrieved from Proquest Dissertations and Thesis. H Wayne Huizenga School of Business and Entrepreneurship, Nova Southeastern University.
Benkler, Y. (2011). The unselfish gene. Harvard Business Review, 89(7), 77- 85.
Boyt, T., Lusch, R., & Mejza, M. (2005). Theoretical models of the antecedents and consequences of organizational, workgroup, and professional esprit de corps. European Management Journal, 23(6), 682-701.
Collins, J. (2001). Good to great: Why some companies make the leap..and others don't. New York, NY: Harper Business.
Deal, T., & Kennedy, A. (1982). Corporate cultures: The rites and rituals of corporate life. Reading, MA: Addison-Wesley.
DuFrene, D.D. (2012). History of synergy, individuals and synergy. Retrieved from http://www.referenceforbusiness.com/management/Str-Ti/Synergy.html#b
Dyer, W.G., Dyer, W., & Dyer, J.H. (2007). Team building: Proven strategies for improving team performance. San Francisco, CA: Jossey-Bass.
Forsyth, D.R. (2010). Group Dynamics. Belmont, CA: Wadsworth Publishing.
Huddle. (2012). Building teamwork. Retrieved from http://www.huddle.com/blog/building-teamwork-10-quick-and-easy-team-building-exercises-for-improving-communication-and-problem-solving-skills-part-1/
Jain, A.K. (1998). Corporate excellence. New Delhi, India: PK Publishers.
Joyce, W., Nohria, N., & Roberson, B. (2003). What really works: The 4+2 formula for sustained business success. New York, NY: Harper Business.
Kotter, J.P. & Heskett, J.L. (1992). Corporate culture and performance. New York: Free Press; New York: Maxwell Macmillan International.
Kotter, J.P. & Schlesinger, L.A. (2008). Choosing strategies for change. Harvard Business Review, 86(7), 2008.
Martin, R. (2007). The secrets of morale and cohesion. Retrieved from http://www.alcera.ca/en/newsletters/leaders-edge-newsletter-january-2007.php
101
Northouse, P.G. (2007). Leadership: Theory and practice (5th ed.). Thousand Oaks, CA: Sage Publications.
Petty, M.M., Beadles, I.N.A., Lowery, C.M., Chapman, D.F., & Connell, D.W. (1995). Relationships between organizational culture and organizational performance. Psychological Reports, 76, 483–492.
Roi, R.C. (2006). Leadership, corporate culture, and performance. (Unpublished doctoral dissertation). Retrieved from Proquest Dissertations University of San Francisco, CA.
Sackman, S.A. (2006). Assessment, evaluation, improvement: Success through corporate culture. Gutersloh, Germany: Bertelsmann Stiftung.
Truskie, S.D. (1999). Leadership in high performance organizational cultures. Westport, CT: Quorum Books.
Tuominen, M., Rajala, A., & Moller, K. (2004). How does adaptability drive firm innovativeness? Journal of Business Research, 57(5), 495-506.
102
Chapter V- Summary, Conclusion and Recommendations
Introduction
The purpose of this project was to create a survey tool to evaluate the current state of a
corporation's culture and then create a handbook to guide a corporation in implementing more
effective practices into their culture. The corporate beliefs and values of an organization have
credibility as predictors of the firm's success. In order to enhance performance, an organization
would benefit from achieving a strong culture with a combination of collective and adaptable
practices. Research and development, including preliminary testing and revision, was used to
create the survey questionnaire. The creation of the handbook consisted of research and
planning, resulting in a final survey and handbook. The extensive literature review validated the
need to adapt the current culture of an organization.
Summary
Three traits are related to sustained firm performance; when an organization encourages
collective practices, increases their degree of adaptability and shares a strong culture, they are
more likely to experience positive stakeholder satisfaction, employee retention and higher
profits. The researcher created a survey tool to measure the degree that each of the winning traits
exist in an organization's culture. Once managers collect the survey responses, they can then
refer to the "Creating a Collective Corporate Culture: A Small Business Guide to Maximize Firm
Performance" to learn what types of exercises and practices to implement in the workplace. The
survey and handbook are not meant to be a complete answer to achieving perfect organizational
performance, but rather a tool to help achieve a more balanced and effective culture.
Although the United States values individual contributions, collective practices such as
team work result in higher productivity in the work place. With the globalization of the
workplace comes the need for unique and untraditional means to accomplish tasks. The
103
untraditional team may include members across time zones who communicate solely through
electronic sources or via web cams. Collaborating with fellow employees and accomplishing
goals set for the group results in an all around more successful and fulfilling environment. The
survey and handbook will empower managers with a means to create successful teams, both of
the traditional and not so traditional sorts. Learning to work with different personalities, from
different generations, and across different medias is the new task for team members to master.
Conclusion
Researchers agree that organizational performance is attributable to organizational
culture. Performance can be maximized by adapting an existing culture to include more effective
processes. Specifically, cultures that adopt collective tendencies and encourage employees to
hold their organization in high regard will flourish. The three research questions were answered
through the process of this project.
How is corporate culture best defined and measured? Corporate culture can be defined
by varying degrees of collectivism or individualism, as well as by a large multitude of defining
characteristics. However, the individualism-collectivism distinction acts as an effective and
accurate means of categorizing corporate culture. Culture can be measured through a variety of
questionnaires to determine where a company stands on the collectivism-individualism spectrum.
Using a combination of existing measurement tools, a survey was created to measure the degree
of collectivism, level of adaptability, and strength of an organization's culture. The next step in
the process of evaluating and increasing corporate culture effectiveness would be to test the
survey for reliability and implement the activities laid out in the Guide into existing businesses.
What traits of corporate culture are related to productivity and firm effectiveness? The
literature review presented three dominant traits and dimensions that were continually related to
104
firm effectiveness and financial success. Collective tendencies, such as team based work, a firm's
ability to adapt to changing internal and external environments, and the strength of the shared
culture are all positively related to firm effectiveness. Although all three traits were found to be
positively related to firm effectiveness, a study on the combined effect the three have on culture
is missing from the literature. The next step would be to perform a study to measure the degree
that the combination of collectivism, adaptability and culture strength increase an organization's
financial earnings and stakeholder satisfaction.
How would an organization adopt these traits into their corporate culture? An
organization can take several steps to adopt collectivism, adaptability and strength into their
current culture. Using the "Creating a Collective Corporate Culture: A Small Business Guide to
Maximize Performance", 21st century organizations now have a tool to help them achieve a
more collective corporate culture in order to maximize their organization's performance.
Recommendations
The results of the survey and guide can assist contemporary companies in creating a more
profitable and effective corporate culture. Between technological advances, volatile markets, and
mergers and acquisitions, organizational cultures are forced to adopt new practices to remain in a
competitive market. By adopting the specific traits outlined in this review an organization can
maximize their firm's performance. Most empirical studies on the culture-performance link found
a correlation between specific corporate traits and profitability; however the existing research
lacked studies that concentrated solely on collectivism, adaptability and strength. This project
closed the gap by determining which three traits were most strongly related to enhanced and
sustained performance. This project presented a unique opportunity to measure the current state
of one's culture in order to determine which areas need improvement. Once the manager is aware
105
of the areas in need of change, they can refer to the guide in order to adopt certain practices to
enhance their profitability. Understanding how the three core traits, collectivism, adaptability and
culture strength, can improve performance is a valuable asset to managers and leaders seeking to
strengthen their organization's culture.
The implications of this project apply to both scholars and corporate members. Scholars
may apply this information to existing bodies of knowledge on corporate culture to better
understand the relationship between culture and firm performance. Learning to work in teams
effectively is yet another skill to master at the educational level, especially given that these skills
will be required in future employment. Given the evidence that collective team practices result in
more satisfied employees, one can infer that the same positive responses would be experienced
in an educational setting. Organizational development executives and leaders can apply this
information as a practical application to enhance firm performance, as well as understand how
their current culture can impact their performance. Learning to be an effective team member, as
well as learning to effectively manage teams is a valuable skill for corporate members of all
ranks.
Based on the results of this project, there are several recommendations for further
research. First, the created survey tool could be tested for validity. The survey was peer reviewed
for use and clarity, but further research to field test the survey would determine how valid the
tool is to measure collectivism, adaptability and strength. Additionally, adding another
measurement tool, such as employee observation, in addition to the survey, would present a more
accurate description of the current corporate culture, and allow for data triangulation (McMillan,
2012). Finally, for further research, the guidebook could be peer reviewed for ease of use and
clarity, as well as appropriateness. Additional reviewers as well as field testing would establish
106
validity of the survey and the guidebook, and would reinforce their value to scholars and
corporate members.
Concluding Thoughts
This project allowed the researcher to create a survey and handbook to contribute to the
corporate culture and performance link. The process of reviewing established literature on the
subject was enlightening and aided in the formation of the research questions. There was a large
gap in the existing literature on the culture-performance link; previous studies neglected to
discover the combined impact of the winning traits on an organization's performance. This
project presented evidence why collectivism, adaptability and strength are the winning
combination of traits for corporate culture.
During the process, the researcher practiced time management, research skills, and
commitment to complete the project. Although the researcher did not apply collective practices
while accomplishing all of the goals of the project, interactions with others through the peer
review process and advisor input was a collaborative effort. The researcher shared the project
objectives with the peer reviewers; when the reviewers aided the researcher in achieving the
goals, the collaborative efforts enhanced the experience. When the researcher experienced
satisfaction and camaraderie when accomplishing the goals with a team, it solidified the
discovery that collective practices result in more productive work groups. The researcher
experienced firsthand the collectivism-individualism distinction. However, the complete process
of research and development was a fulfilling experience that opened up a new array of research
questions to guide the researcher's future interest in corporate culture. It is the researcher's desire
that the survey and handbook eventually be field tested and found to significantly impact the
effectiveness of an organization's culture.
107
References
Ashansky, N.M., Broadfoot, L.E., & Falkus, S. (2000). Questionnaire Measures of Organizational Culture. In N. Ashansky, C. Wilderom & M. Peterson (Eds.), Handbook of organizational culture and climate,193-209. Thousand Oaks, CA: Sage Publications.
Banton, M. (2002). A study of corporate culture and its relationship to the financial performance of an organization. (Doctoral dissertation). Retrieved from Proquest Dissertations and Thesis. H Wayne Huizenga School of Business and Entrepreneurship, Nova Southeastern University.
Benkler, Y. (2011). The unselfish gene. Harvard Business Review, 89(7), 77- 85.
Boyt, T., Lusch, R., & Mejza, M. (2005). Theoretical models of the antecedents and consequences of organizational, workgroup, and professional esprit de corps. European Management Journal, 23 (6), 682-701.
Celani, A., & Tasa, K. (2010). We're all in it together: Examining associations between collectivistic group norms, collective efficacy and team performance. Academy of Management Annual Meeting Proceedings, 1-6.
Chaw, S., & Kirkbride, P. (1987). The cross-cultural transfer of organizational cultures: Two case studies of corporate mission statements. Asia Pacific Journal of Management, 5(1), 55-66.
CNN Money. (2011). "Fortune 500". Retrieved from http://money.cnn.com/magazines/fortune/fortune500/2011/snapshots/206.html
Collins, J. (2001). Good to great: Why some companies make the leap..and others don't. New York, NY: Harper Business.
Cooke, R.A., & Rousseau, D.M. (1988). Behavioral norms and expectations: A quantitative approach to the assessment of organizational culture. Group and Organization Management, 13(3), 245-273.
Day, D., Gronn, P., & Salas, E. (2006). Leadership in team-based organizations: On the threshold of a new era. The Leadership Quarterly, 17, 211-216.
Deal, T., & Kennedy, A. (1982). Corporate cultures: The rites and rituals of corporate life. Reading, MA: Addison-Wesley.
Denison, D.R. (1984). Bringing corporate culture to the bottom line. Organizational Dynamics, 13, 5-22.
108
Denison, D.R., & Mishra, A.K. (1995). Toward a theory of organizational culture and effectiveness. Organization Science, 6(2), 204-223.
DuFrene, D.D. (2012). History of synergy, individuals and synergy. Retrieved from http://www.referenceforbusiness.com/management/Str-Ti/Synergy.html
Dyer, W.G., Dyer, W., & Dyer, J.H. (2007). Team building: Proven strategies for improving team performance. San Francisco, CA: Jossey-Bass.
Forster, N. (2011). Hewlett-Packard - the new way? The Management Case Study Journal, 6(1),
33-64.
Goodman, S.A., & Syvantek, D.J. (1999). Person organization fit and contextual performance: Do shared values matter? Journal of Vocational Behavior, 55(2), 254-275.
Gordon, G. G., & DiTomaso, N. (1992). Predicting corporate performance from organizational culture. Journal of Management Studies, 29, 783–798.
Goncalo, J.A., & Staw, B.M. (2004). Individualism-collectivism and group creativity. Organizational Behavior and Human Decision Processes, 100, 96-109.
Hagel, J., Brown, J., & Davison, L. (2010). The best way to measure company performance. Retrieved from http://blogs.hbr.org/bigshift/2010/03/the-best-way-to-measure-company.html
Hay Group Report. (2011). Sixth annual hay group study identifies best companies for leadership. Retrieved from http://www.haygroup.com/ww/press/details.aspx?id=31606
Hewlett Packard Development Company, L.P. (2010). Retrieved from http://www.hp.com/hpinfo/globalcitizenship/09gcreport/society/employees/index.html
Hirsh, S., & Dinkelacker, J. (2004). Seeking information in order to produce information: An empirical study at Hewlett Packard labs. Journal of the American Society for Information Science and Technology, 55(9), 807-817.
Hofstede, G.H. (1980). Cultures consequences, international differences in work-related values. Beverly Hills, CA: Sage Publications.
Hofstede, G. (2001). Cultures consequences: Comparing values, behaviors, institutions, and organizations across nations. Thousand Oaks, CA: Sage Publications.
Huddle. (2012). Building teamwork. Retrieved from http://www.huddle.com/blog/building-teamwork-10-quick-and-easy-team-building-exercises-for-improving-communication-and-problem-solving-skills-part-1/
109
Hui, C. H. (1988). Measurement of individualism-collectivism. Journal of Research in Personality, 22(1), 17-36.
Hui, C., & Triandis, H. (1986). Individualism-collectivism: A study of cross-cultural researchers. Journal of Cross-Cultural Psychology, 17(1), 225-248.
Jain, A.K. (1998). Corporate excellence. New Delhi, India: PK Publishers.
Joyce, W., Nohria, N., Roberson, B. (2003). What really works: The 4+2 formula for sustained business success. New York, NY: Harper Business.
Koberg, C. S., & Chusmir, L. H. (1987). Organizational culture relationships withcreativity and other job-related variables. Journal of Business Research, 15(5), 397-409.
Kotter, J.P., & Heskett, J.L. (1992). Corporate culture and performance. New York: Free Press; New York: Maxwell Macmillan International.
Kotter, J.P., & Schlesinger, L.A. (2008). Choosing strategies for change. Harvard Business Review, 86(7), 130-139.
Martin, R. (2007). The secrets of morale and cohesion. Retrieved from http://www.alcera.ca/en/newsletters/leaders-edge-newsletter-january-2007.php
McGrath, J.E. (1997). Small group research, that once and future field: Aninterpretation of the past with an eye toward the future. Group Dynamics, 1(1), 7-27.
McMillan, J.H. (2012). Educational research: Fundamentals for the consumer (6th ed.). Boston, MA: Allyn & Bacon, Pearson Education, Inc.
O’Reilly, C.A., & Chatman, J.A. (1996). Culture as a social control: Corporations, cults and commitment. Research in Organizational Behavior, 18(2), 287-365.
Petty, M.M., Beadles, I.N.A., Lowery, C.M., Chapman, D.F., & Connell, D.W. (1995). Relationships between organizational culture and organizational performance. Psychological Reports, 76(3), 483–492.
Roi, R.C. (2006). Leadership, corporate culture, and performance. (Unpublished doctoral dissertation). Retrieved from Proquest Dissertations University of San Francisco, CA.
Sackman, S.A. (2006). Assessment, evaluation, improvement: Success through corporate culture. Gutersloh, Germany: Bertelsmann Stiftung.
Schulman, P.P. (2001). Leadership in high performance organizations. Journal on Contingencies and Crisis Management, 9(4), 238-245.
110
Shulruf, B., Hattie, J., & Dixon, R. (2003). Development of a new measurement tool forindividualism and collectivism. Retrieved from www.aare.edu.au/03pap/shu03265.pdf
Shulruf, B., Hattie, J., & Dixon, R. (2007). Development of a new measurement tool for individualism and collectivism. Journal of Psychoeducational Assessment, 25(4) 385-401.
Shulruf, B., Alesi, M., Ciochina, L., Faria, L., Hattie, J., Fu, H. & ...Watkins, D. (2011). Measuring collectivism and individualism in the third millennium. Social Behavior and Personality, 39(2), 173-188.
Sheridan, J. E. (1992). Organizational culture and employee retention. The Academy of Management Journal, 35(5), 1036-1056.
Singelis, T. M. (1994). The measurement of independent and interdependent self-construals.Personality and Social Psychology Bulletin, 20(5), 580–591.
Singelis, T. M., & Triandis, H. C. (1995). Horizontal and vertical dimensions of individualismand collectivism: A theoretical and measurement refinement. Cross-Cultural Research: The Journal of Comparative Social Science, 29(3), 240-276.
Smith, M.E. (2002). Success rates for different types of organizational change. Performance Improvement, 41(1), 26–33.
Sorenson, J. B. (2002). The strength of corporate culture and the reliability of firm performance. Administrative Science Quarterly, 47(1), 70-91.
Tuominen, M., Rajala, A., & Moller, K. (2004). How does adaptability drive firm innovativeness? Journal of Business Research, 57(5), 495-506.
Triandis, H.C. (1995). Individualism and collectivism. Boulder, CO: Westview.
Truskie, S.D. (1999). Leadership in high performance organizational cultures. Westport, CT: Quorum Books.
Van den Berg, P.T., & Wilderom, C.P.M. (2004). Defining, measuring, and comparing organizational cultures. Applied Psychology, An International Review, 53(4), 570-582.
Wagner, J., & Moch, M. K. (1986). Individualism-collectivism: Concept and measure. Group and Organization Management, 11, 280-304.
Wilderom, C.P.M., Glunk, U., & Maslowski, R. (2000). Organizational culture as a predictor of organizational performance. In N. Ashansky, C. Wilderom & M. Peterson (Eds.), Handbook of Organizational Culture and Climate (pp.193-209). Thousand Oaks, CA: Sage Publications.
111
Appendices
112
APPENDIX A
Dear Peer Reviewer,
Thank you for taking the time to review this survey. Please read through each survey item and review the survey using this form. The survey will be used for organizations to conduct an evaluation of their current culture to determine if they are incorporating the three factors shown to increase profitability: collectivism, adaptability and culture strength.
Yes NoAre the questions appropriate for the purpose of the survey?
Are the questions relevant for the purpose of the survey?
Do the questions adequately have a means to measure collectivism?
Do the questions adequately have a means to measure adaptability?
Do the questions adequately have a means to measure culture strength?
Is the writing clear and comprehensive?
Does the order make sense?
Does "Scoring the Survey" seem appropriate?
Does "Scoring the Survey" have clear instructions?
Are any questions biased or leading?
Open Ended Questions:What are strengths of the format?__________________________________________________________________________________________________________________________________________________________________________________________________________________________________________
What are weaknesses of the format/ content?__________________________________________________________________________________________________________________________________________________________________________________________________________________________________________
What suggestions do you have for improvement?__________________________________________________________________________________________________________________________________________________________________________________________________________________________________________
113
APPENDIX B
Measuring Collectivism, Adaptability and Strength in Your Corporate Culture Survey
Directions to Distributers: Select a random population of employees to take the survey; a relatively large sample would provide the most accurate results. Distribute surveys, notifying participants that responses will help inform what areas of the culture need improvement. Ask participants to return the survey anonymously by dropping it off at a box in front of the HR department.
Directions to participants: Please circle your response to each of the below statements. When complete, please submit the survey anonymously to the drop box in front of the HR department.
Strongly Somewhat Neither agree Somewhat Stronglydisagree disagree nor disagree agree agree
1 2 3 4 5
1. I prefer to work with co-workers to accomplish a difficult task, rather than by myself. 1 2 3 4 5
2. I make an effort to avoid disagreements with my group members. 1 2 3 4 5
3. Employees are encouraged to apply innovative ideas. 1 2 3 4 5
4. Finding solutions for product problems increases cooperation between departments. 1 2 3 4 5
5. People in this company are rewarded for outperforming one another. 1 2 3 4 5
6. Our leaders ask our opinions before making changes to our daily operations. 1 2 3 4 5
7. Employees have a clear sense of the mission and values that guide their work. 1 2 3 4 5
114
8. Before making a decision, I always consult with others. Strongly Somewhat Neither agree Somewhat Strongly disagree disagree nor disagree agree agree 1 2 3 4 5
9. The employees in my department are consistently treated equally. 1 2 3 4 5
10. My team can accomplish any task we are given. 1 2 3 4 5
11. Our company invests in improving the knowledge and skills of our employees. 1 2 3 4 5
12. We apply a clear and consistent set of values to govern the way we do business. 1 2 3 4 5
13. Our leaders regularly celebrate team accomplishments. 1 2 3 4 5
14. Our leaders are attentive at addressing the changing needs of employees. 1 2 3 4 5
15. Our leaders recognize an individual's contributions to the success of projects. 1 2 3 4 5
16. People here tend to avoid conflict and work hard to keep relationships pleasant. 1 2 3 4 5
17. Our departments collaborate closely with one another. 1 2 3 4 5
18. There is team spirit throughout the company. 1 2 3 4 5
115
19. Our current production technology is based on new technology. Strongly Somewhat Neither agree Somewhat Strongly disagree disagree nor disagree agree agree 1 2 3 4 5
20. I am constantly reminded of our organization's vision statement and goals. 1 2 3 4 5
21. When introducing changes to our workplace, our leaders always inform us first. 1 2 3 4 5
22. Our leaders foster collaboration by promoting cooperative goals and trust building.
1 2 3 4 5
23. We are normally the first in our industry to adopt new technology.
1 2 3 4 5
24. I am more successful working in a group than by myself.
1 2 3 4 5
25. I share the same values and beliefs about daily operations with our leaders. 1 2 3 4 5
26. Our company lacks an ‘‘esprit de corps’’. 1 2 3 4 5
27. Our leaders encourage employees to speak up when change in daily operations is needed. 1 2 3 4 5
28. I have a clear sense of purpose and direction at work. 1 2 3 4 5
116
29. My goals are aligned with helping our company achieve our vision. Strongly Somewhat Neither agree Somewhat Strongly disagree disagree nor disagree agree agree 1 2 3 4 5
30. We are encouraged to use a variety of technology to communicate with co-workers and customers, such as tablets, email, smart phones, and other online media. 1 2 3 4 5
31. If my co-worker and I were to ask our supervisor a similar question, we would receive similar answers. 1 2 3 4 5
32. I am constantly reminded of our organization's mission statement. 1 2 3 4 5
33. My team members generate diverse ideas that I would not normally think of. 1 2 3 4 5
34. My co-workers and I tend to groan when we hear our managers are changing something at work. 1 2 3 4 5
35. We have a strong culture at work. 1 2 3 4 5
117
Scoring the "Collectivism, Adaptability and Strength in Your Corporate Culture Survey"
Every "Strongly agree" response = 5 pointsEvery "Somewhat agree" response = 4 points Every "Neither agree nor disagree" response = 3 points Every "Somewhat disagree" response = 2 points Every "Strongly disagree" response = 1 point
Except: Question #5: "Strongly disagree" response = 5 points, "Strongly agree" = 1 pointQuestion #26: "Strongly disagree" response = 5 points, "Strongly agree" = 1 pointQuestion #34: "Strongly disagree" response = 5 points, "Strongly agree" = 1 point
To determine the degree of Collectivism, add up the scores for the following items: 1, 2, 4, 5, 8, 10, 13, 15, 16, 17, 18, 22, 24, 26, 33
57-75 = High collectivism
37-56 = Medium collectivism, consult handbook
16-36 = Low collectivism, consult handbook
1-15 = High individualism, consult handbook
To determine the degree of Adaptability, add up the scores for the following items: 3, 6, 11, 14, 19, 21, 23, 27, 30, 34
40-50 = High adaptability
30-39 = Medium adaptability, consult handbook
20-29 = Low adaptability, consult handbook
1-19 = Not adaptable, consult handbook
To determine the degree of Culture Strength, add up the scores for the following items: 7, 9, 12, 20, 25, 28, 29, 31, 32, 35
40-50 = Strong culture strength
30-39 = Medium culture strength, consult handbook
20-29 = Low culture strength, consult handbook
1-19 = Very low culture strength, consult handbook