understanding how organizational culture really works

Understanding How Organizational Culture

Really Works

2Copyright © 2011 by Human Synergistics International. All rights reserved.

“Culture is “organizational personality” -- the underlying values, beliefs, and norms that govern the behavior of people as members of an organization.”

Eric Flamholz, Ph.D., Anderson School of Management

Culture is “the way we do things around here.” Marvin Bower, McKinsey & Company

“. . . A more fruitful approach is to regard culture as the source of a family of concepts . . . symbol[s], language, ideology, belief, ritual, and myth.”

Andrew M. Pettigrew, 1979

What is Organizational Culture?


Human Synergistics’ Definition

• As measured by the OCI®, organizational culture refers to the behavioral norms and expectations that:

• a) guide the way people interact with one

another and approach their work, and

• b) reflect shared values, beliefs, and other

organizational factors.


‘How Culture Works’ Model

Outcomes(Effectiveness)

Causal Factors(Levers for Change)

Operating Culture(OCI Norms)

The HS theoretical model explains the complex nature of culture and climate in organizations.

Research and development by Robert A. Cooke, Ph.D. Copyright © 1997, 2011 by Robert A. Cooke, Ph.D., Human Synergistics International. All Rights Reserved.

Handbook of Organizational Culture and Climate, pp. 147 – 162, Copyright © 2000 by Sage Publications, Cooke, R.A. and Szumal, J.L.


How Culture Should Work

Individual

Group

Organizational

Assumptions

Espoused Values

(Ideal Culture)

PhilosophyMission

GoalsStrategies

NormsExpectations(Current Culture)







How Culture Really Works

Assumptions

Espoused Values

(Ideal Culture)

PhilosophyMission

GoalsStrategies

Individual

Group

Organizational


Structures

Technology

Skills/Qualities

Systems







The Culture Disconnect

Resources

Demands

IndividualMotivation,

Performance, Satisfaction, Stress

GroupTeamwork,

Inter-unit Coordination, Unit-level Quality

OrganizationalOrg-level Quality, Customer Service Quality, External

Adaptability



StructuresRoles, Influence, Decision-Making

TechnologyJob Design, Complexity,

Interdependence

Skills/QualitiesLeadership,

Communication, Bases of Power

SystemsSelection. Training, Appraisal,

Reinforcement, Goal setting

Assumptions

Espoused Values

(Ideal Culture)

PhilosophyMission

GoalsStrategies



Effects of Resources and Demands on How Culture Really Works

Organizational resources and environmental demands play animportant role in explaining inconsistencies among values andphilosophies, operating cultures, and organizationaleffectiveness.

The magnitude of resources has a direct and positive impact on outcomes, whereas the magnitude of demands has a negative impact.

Organizations with vast resources and little competition are in an advantageous position to prosper relative to those with limited resources and operating in demanding environments.

Cooke, R.A. and Szumal, J.L., Handbook of Organizational Culture and Climate, pp. 152,159, Copyright © 2000 by Sage Publications.


Defensive Misattribution of Success

The direct and indirect effects of resources and demands on outcomes explain why a subset of organizations with Defensive cultures nevertheless appear to be relatively effective.

Resources and demands account for the misattributions often made when organizations with dysfunctional cultures appear to be successful.

Cooke, R.A. and Szumal, J.L., Handbook of Organizational Culture and Climate, pp. 152-159, Copyright © 2000 by Sage Publications.


Defensive Misattribution of Success

Resources

Demands



GroupTeamwork,



Adaptability




Interdependence





Assumptions

Espoused Values

(Ideal Culture)

PhilosophyMission

GoalsStrategies


Cooke, R.A. and Szumal, J.L., Handbook of Organizational Culture and Climate, pp. 152-159, Copyright © 2000 by Sage Publications.


The Culture Bypass

The culture bypass accounts for inconsistencies among values and philosophies, operating culture, and organizational effectiveness.

Certain organizations adopt strategies that revolve around special resources, proprietary technologies, or standardized products that provide a competitive advantage (e.g. cost).

The technologies, systems, and structures put in place are intended to bypass culture by directly controlling members’ behaviors.

Cooke, R.A. and Szumal, J.L., Handbook of Organizational Culture and Climate, pp. 160, Copyright © 2000 by Sage Publications.


The Culture Bypass




GroupTeamwork,



Adaptability

Assumptions

Espoused Values

(Ideal Culture)

PhilosophyMission

GoalsStrategies

Resources

Demands



Interdependence






Sage Publications Copyright © 2000. Handbook of Organizational Culture and Climate, pp. 160-161, Cooke, R.A. and Szumal, J.L.


How Effective Cultures Work

Individual

Group

Organizational


Assumptions

Espoused Values

(Ideal Culture)

PhilosophyMission

GoalsStrategies

Structures

Technology

Skills/Qualities

Systems





Sage Publications Copyright © 2000. Handbook of Organizational Culture and Climate, Cooke, R.A. and Szumal, J.L.


Differentiating Culture from Climate

Based on perceptions Based on shared beliefs

Past or present focused Future focused

“How things are around “What’s expected (or valued)here” around here”

Example: In this Example: People in this organization, people are organization are expected orrewarded in proportion implicitly required to competeto the excellence of their rather than cooperatejob performance

Short-term implications Long-term implications

Easier to change Harder to change

Most managers focus only on this

But outcomes are more reliably predicted by this

Climate Culture

Janet L. Szumal and Robert. A. Cooke, Climate versus culture: An experiential case study, 2003 Team and Organizational Development Sourcebook, Mel Silberman and Pat Philips (Eds) (copyright © 2003 by Mel Silberman).

Said Another Way . . . .

What you see & hear. . . The Iceberg, above the Waterline

What you don’t see & hear. . . Under the Waterline

What is. . .

Allowed

Rewarded

Ignored

Condemned

Copyright © 2011 by Human Synergistics International. All rights reserved.


Where Culture and Climate Fit in the ‘How Culture Works’ Model

Culture (OCI) Culture (OCI)Climate (OEI) Climate (OEI)

Individual

Group

Organizational



Assumptions

Espoused Values

(Ideal Culture)

PhilosophyMission

GoalsStrategies

Structures

Technology

Skills/Qualities

Systems




Cooke, R.A. and Szumal, J.L., Handbook of Organizational Culture and Climate, Copyright © 2000 by Sage Publications.


Organizational Culture Inventory®

The Organizational Culture Inventory®, or OCI®, is a reliable and valid measure of organizational culture that distinguishes effective organizations from those that are less effective.

The OCI provides a common language for discussing culture, data for understanding its impact, and a framework for implementing cultural change.

OCI results are presented on the HS Circumplex model and provide two pictures of culture—”what is expected” and “what is preferred”.

Adapted from Human Synergistics 2008 Catalog, pp 56-57, Copyright © 2008 Human Synergistics International. All Rights Reserved.


OCI® and OCI® Ideal

OCI® • Measures behavioral norms and expectations—what it takes for you and people like yourself to “fit in” and meet expectations in your organization.

• Also measures outcomes associated with culture that provide insights into the need for cultural change.

OCI® Ideal

• Measures shared values—beliefs about the behaviors that should be expected to maximize your organization’s effectiveness.

• Also measures organizational readiness for change.


Three General Types of Cultures

Constructive cultures promote effective goal setting and achievement, growth and learning, and teamwork and collaboration.

Passive/Defensive cultures lead to conformity, rigidity, and lack of team member accountability and initiative.

Aggressive/Defensive cultures lead to internal competition, management by exception, and short-term emphasis as opposed to long-term effectiveness.



Organizational Effectiveness Inventory®

The Organizational Effectiveness Inventory®, or OEI, is a reliable and valid measure of effectiveness outcomes at the individual, group, and organizational levels.

The OEI also measures the causal factors which become the levers for change and development.

Used together, the OCI and OEI provide a comprehensive picture of the organization’s culture, the factors leading to and reinforcing that culture, and the outcomes of culture.



Measuring the Model Components


Assumptions

Espoused Values

(Ideal Culture)

PhilosophyMission

GoalsStrategies

Individual

Group

Organizational

Structures

Technology

Skills/Qualities

Systems







Measuring Espoused Valueswith the OCI® Ideal

Historical Ideal OCI (N=560)

Based on 560 members of 56 organizations

Research and development by Robert A. Cooke, Ph.D. and J. Clayton Lafferty, Ph.D. Copyright © 1973-2011 by Human Synergistics International. All Rights Reserved.

The OCI Ideal inventory creates a vision of the preferred culture. Members respond to the survey in terms of what should be expected.

Members are asked to identify the behavioral styles that would promote their own motivation and performance, maximize the contributions of diverse subgroups and help reach organizational goals.

Adapted from Human Synergistics 2008 Catalog, pp 64, Copyright © 2008 Human Synergistics International. All Rights Reserved.


Measuring Causal Factors(Levers for Change) with the OEI®

The OEI measures these causal factors that lead to and reinforce cultural norms:

• The organization’s mission and philosophy• Organizational structures• Systems• Technologies• Skills and qualities of members

When in alignment with values, thesefactors lead to an operating culture that issimilar to the Ideal. When out of alignment,they lead to a Defensive operating culturethat is “disconnected” from the Ideal.

StructuresRoles

InfluenceDecision-Making

TechnologyJob DesignComplexity

Interdependence

Skills/Qualities

Leadership Communication Bases of Power

SystemsSelection Training Appraisal

Reinforcement Goal setting



Measuring the Operating Culturewith the OCI® Current

Research and development by Robert A. Cooke, Ph.D. and J. Clayton Lafferty, Ph.D. Copyright © 1973-2011 by Human Synergistics International. All Rights Reserved.

• The OCI Current provides a picture of the operating culture in terms of “how things are done around here” and “what’s expected” of members.

• Behavioral norms and expectations have a direct bearing on the functioning of organizations and are causally related to outcomes.

• OCI results promote change by revealing the Defensive and counterproductive behaviors the organization is inadvertently reinforcing, as well as the negative impact of these behaviors on individual and organizational performance.



Measuring Outcomes(Effectiveness) with the OEI®

Operating culture determines outcomes at the individual, group, and organizational levels.

Strong norms for Constructive behaviors lead to desirable outcomes, such as individual motivation, performance, job satisfaction, teamwork, quality of work relations, and quality of customer service.

Strong expectations for Defensive behaviors, especially Passive behaviors, lead to less desirable outcomes.

IndividualMotivation

PerformanceSatisfaction

Stress

GroupTeamwork

Inter-unit Coordination Unit-level Quality

OrganizationalOrg-level Quality

Customer Service Quality External Adaptability

Adapted from Organizational Effectiveness Inventory™ Copyright © 1997, 1995 Human Synergistics/Center for Applied Research, Inc. All Rights Reserved.

understanding how organizational culture really works

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culture disconnectcopyright

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culture works modelcopyright

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