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Organizational Culture


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Copyright (c), Micro-Touch & Consult (TM), 2015

Stanford Organizational Culture


Keywords

Cultures - Sub-cultures - Organizational culture - Models - Innovation - Change - Organizational politics - Behavior - Sense of beloning - National cultures - Leading across cultures

Produced by: Micro-Touch & Consult, 2013
Introduction
Organizational culture became more common knowledge when it appeared as “corporate culture” in business periodicals in 1982. Before this period organizational culture was not viewed as being something that could be related to the characteristics of an organization. Organizational culture was ignored as a factor in the performance of an organization. Although the culture is now included when studying organizations, earlier this inclusion was not automatically so because organizational culture is not easily observable (Lewis, 1996; Deal et al, 1982; Holbeche, 2006).

Organizational culture is often described as “The way we do things around here”. A change will be a success if it becomes part of the organizational culture and the way “they do things around there”. The organizational culture can also be defined as “the way things get done around here”. This view is common; from the behavior of an organization its culture can be extracted. The culture is about how the organization or parts of the organization “do things around there” (Holbeche, 2006; Kotter, 1996; Deal et al, 1982; Bower, 1966).

Organizational culture can hardly be explained only by “the way they do things differently”. The things organizations produce dictate often the way they do things but this does not automatically mean they have different cultures at the outset. It is likely that different cultures emerge over time (Carnal, 2007).

Another view is that organizational culture is the collective programming of the mind which distinguishes the organization from another. People become part of the characteristics of the organization and behave accordingly and different from people within other organizations. This view is more aligned with the emerging cultures over time (Carnal, 2007; Hofstede, 1991).

Organizational culture is about shared values, experiences and common goals. The harder technical changes within organizations cannot succeed without changes in the social systems of shared values, the people, and culture. The same can be sensed in what is called the deep-set beliefs about the way work should be organized or the importance of shared values. Often only the hard factors get the most attention because they are tangible and measurable. To be able to sense all these different elements, cultural intelligence is needed to make the proper distinctions (Holbeche, 2006; Beer, 2009; Christopher, 2004; Handy, 1985; Peters and Waterman 1982; Livermore et al, 2009).

Organizational cultures can be seen as a representation of the collection of traditions, values, policies, beliefs and attitudes which directs and creates a context for everything that is being done in an organization. This also forms specific thought patterns for organizations and its members. It is not strange to see culture as partly unconscious. It is based on the history of the organization and formed through learned behavior (McClean, 1998; Williams, 1995).

Sub-Cultures
An organizational culture is composed of integrated subcultures. Often these subcultures relate almost directly to  the structure  of an  organization  where  the  functional  groups  form  their own  subcultures. These subcultures differ in assumptions, behaviors and expectations and they often reflect parts of the larger culture but do also differ at important aspects. When a leader has the right cultural intelligence, these  competing  subcultures  can  be  aligned  together  and  shaped  into  an  effective heterogeneous overall  organizational  culture  (Johnson,  2008;  Schein,  1984/2003;  Christopher,  2004;  Riley,  1983; Livermore et al, 2009). 

Models to investigate organizational culture
Measuring  the  organizational  culture  can  be  done  in  different  ways.  The  holistic  approach  tries  to unravel  the organizational  culture  on  a  very  deep  level  through  being  part  of  it.  The  metaphorical approach  tries  to  define  the organizational  culture  through  language  patterns,  slogans,  vision documents,  stories  and  conversations  while  the quantitative  approach  analyzes  the  organizational culture  through  questionnaires  and  structure  interviews.  The  Qualitative approach  measure  the organizational  culture  through  semi  structure  interviews  with  more  open  questions  (Johnson, 2008; Mullins, 2005; Cameron, 2006; Yukl, 2010). 

Models and Tools
Several assessment tools can be used to measure the culture of an organization, like the Organizational Culture Assessment Instrument OCAI of Cameron and Quinn, 1998, the 7s model of Peters & Waterman, the Organizational Character Index of Bridges (2000), the cultural dimensions defined by Schein (1984) and Kotter (1992) or the cultural change management elements of Paul Bate (1984). The three levels of culture defined by Schein (1984) can act as the foundation where upon the other models can be based for further analysis of the dimensions of organizational culture.  

The 7s model clarifies the importance of creating a balance between the seven descriptive elements of this model when understanding of the dynamics of organizational change is needed. This model is one of  the  many  existing  frameworks  to  help leaders  think  systematically  when  planning  organizational change within an organization (Holbeche, 2006; Klatt et al, 2001). 

Through the analysis of the six cultural dimension of Bate (1984) the readiness of the people can be analyzed  towards  change  and innovation.  The  cultural  web  of  Johnson  et  al  (2005)  can  be  used  to expand the three levels of Schein (1984) and describe them through the elements of this cultural web to define  the  overall  paradigm.  The  elements  of  the  cultural  web  are  the different  aspects  of  the organizational  culture  whereas  the  three  foundational  levels  of  Schein  (1984)  could  act  as  the basic dimensions from which the aspects can be approached. 

OCAI is based on the competing values framework which describes the underlying value orientations that characterize organizations. It can be said that these values often compete or contradict each other. When extracting a profile it can identify how an organizational culture is likely to change as their values change over time (Holbeche, 2006). 

The overall purpose of the OCAI is to assess six key dimensions of organizational culture. When applied to a specific organization, it gives some basic values and assumptions. In essence the OCAI will rate an organization.  This  can  be  done  on  different  levels: the  OC  as  a  whole,  the  subcultures,  teams  and individuals.  Often  it  is  used  for  cultural  change,  so  the  focus  on  the cultural  unit  or  aspects  of  the organization is more logical (Cameron, 2006).  

OCAI can be used to check if the current focus is on external customers or if the organization is internal focused. What is the score through OCAI and what is the Organizational Character Index (Bridges, 2000) in relation to that score? The OCI can also be helpful to determine if an organization is extrovert or more introvert; does the company sense the environment or goes on intuition, are there thinkers or feelers and do they judge or perceive for example?   

The Organizational Character Index (OCI) tries to map an organization to one of the 16 organizational character types, or a combination of some of them. The archetypes are based on the Meyers Briggs Type Indicator  and  mapped  against  four dimensions.  You  have  Extroverted  against  Introverted,  Sensing against Intuitive, Thinking against Feeling and Judging against perceiving. Through a questionnaire an organization  is  analyzed  to  which  side  its  organizational  culture  is  most  focused (Holbeche,  2006, Bridges, 2000).  

It is not hard to extract the static and flexible sides of OC from out this OCI model from Bridges (2000). When  combined,  OCAI and  OCI  can  give  us  a  clear  view  on  the  characteristics  of  the  organizational culture. This can also be used on a smaller scale; the subcultures and even teams. It can help us create successful teams with the right mix of balanced (national) cultures. It is important that the organizations cultural context provides the support these different (national) cultures need, or else its development will become in danger of stagnation (Kouze & Posner, 2007; Belbin, 2012; Hackman, 2012).
 
The 7s Model of McKinsey is about the importance of achieving balance and consistency between the seven elements. When things are combined then the 7s Model can also be used in relation to OCAI, OCI and  the  cultural  dimensions  of  Schein  (1984).  The elements  of  the 7s  model  could  be  used  as  input elements for the OCAI.  

Furthermore,  the  dimensions  of  Bate  (1984)  can  be  used  to  check  the  readiness  of  people  towards change,  innovation  and relating  to  others.  Bates  (1984)  dimensions  can  be  complementary  to  the readiness check of organizations for change and it is about the shared values of the people (Peters and Waterman,  1984).  It  is  interesting  to  see  how  the  dimensions  of  the OCAI can  be  replaced  by  the spheres of the 7s model and how the dimensions of Bate (1984) can be used for the human focused foundation of the process.   

Using more than one tool: triangulation
Several instruments can be used to assess the organizational culture in parallel, allowing the analysis of convergence between these approaches. Where do they differ and where are results more or less the same? This is called triangulation. This can work in two ways. It can mean using different quantitative assessment  tools  to  check  given  statements,  but  it  can  also  mean  using quantitative  and  qualitative measurement  tools  altogether.  Especially  in  social  science  where  constructs  are  difficult  to measure directly, it is important to use at least two measurement approaches as different as possible. Continuing the research should only be done when we find enough convergence in their results. If this is not the case, the results should be analyzed further or different measurement approaches can be used to come up with more usable and trustworthy outcomes. (Hofstede, 2001; Campbell et al, 1966).   

Organizational Culture and Innovation
Innovation and change
Organizations are changing their way on the definition of change and how to approach it, but also how the organizational  culture influence  change.  It  is  efficient  to  investigate  the  organizational  culture through the different models described in earlier paragraphs. The outcome of that research can be the starting  point  to  see which  elements  needs  to  change  to  make  them more  adaptable  and  ready  for innovation. 

Innovation needs the capacity for change. This means that the organizational culture must be adaptable to change. Innovation without change has no result and can be called useless for the organization. The elements in the organizational culture that must be adjusted for innovation should also be prepared for the readiness for change (Carnal, 2007).  

Innovation is not only seen as something that can help organizations work in new ways to produce new products  and  services, but on  itself  it  can  be  seen  as  something  that  can  help  changing  the organizational culture and sub cultures. If the organizational culture and sub cultures are not adaptable enough  to  make  innovation  happen,  they  become  obstacles  for  the change  and innovation  needed (Isaksen and Tidd, 2006). 

Leadership can influence innovation when it influences the organizational enablers of innovation. These enablers include leadership systems, structures, processes, (organizational) culture, competences and networks. This relationship between leadership, organizational enablers and innovation indicates that organizational  culture  may  impact  innovation,  and  how  it may  be  affected  by  the  leaders  of  an organization.  And  while  leadership  has  an  influence  on  the  organizational  culture,  it has  a  profound effect on how this organizational culture will interact with organizational innovation and its ability to change (Munshi et al, 2005).  

Innovation  is  very  important  for  a  healthy  organization  and  globalization  creates  new  opportunities. Globalization  also demands  a  new  kind  of  leadership  that  is  able  to  guide  and  integrate  different national  and  organizational  cultures. Organizational  strategies  that  support  this  kind  of  focus  on innovation  and  leadership  become  more  important.  Not  only change  techniques  are  needed  for innovation, but also a flexible and adaptive innovative culture that holds innovation as one of its basic characteristics (Marklund et al, 2008; Alvesson & Sveningsson, 2008).  

Proper leadership is needed to create and guide such an innovative organizational culture, with a clear direction and enough emotional and cultural intelligence to give each (national) subculture its share. (Johnson et al, 2009; Holbeche, 2006). 


Organizational Culture and Organizational Politics
Organizational politics
Organizational  politics  includes  the  forces  used  to  carry  out  personal  agendas  and  interests. Organizational politics are any activities which are not required as a part of organizational duties and are used to create personal influence and benefits. Different groups in organizations develop different goals, values, beliefs and interests and compete for the scarce resource to accomplish them. Organizational politics  are  used  for  own  benefits  and  influence  the  normal  “way  of  doing  things”  within the organization (Robbins, 2003; Nargunde, 2013; Morgan, 2006). 

Organizational behavior, culture and politics
Organizational  behavior  is  related  to  organizational  culture  and  it  can  be  said  that  the  behavior  is dictated by the culture of an organization. It seems that this influence is a two-way process. The culture is even so extracted from the behavior of people and groups. Perhaps the study of organizational culture is rooted in organizational behavior (Dauber et al, 2012). 

There is the general recognition that organizational politics is something else than rational management. It is more about the study of human emotions, motivations and meaning-making. Micro politics within organizations are concerned with the use of formal and informal power used by individuals and groups to reach their goals within the organization. Many definitions therefore suggest that micro politics is more about protecting and advancing self-interest against opposition. Furthermore it is proposed that an understanding of micro politics is an important element to understanding the organizational culture (Drory et al, 1990). 

It  seems  that  organizational  politics  is  the  glue  between  rational  management,  leadership  and organizational behavior and not only does it keep it all together but also it is one of the most important elements in directing these elements to a certain workable coalition. It is not uncommon that the micro politics within the subcultures overrule the hierarchical and official function model.  To  be  successful  in  implementing  stable  and  static  changes  within  organizations,  a guiding  coalition  is  essential. This  guiding  coalition  is  often  a  result  from  micro  politics  wherein  this guiding coalition is recognized as powerful and influential while the official organizational culture and politics would not have recognized them as such (Kotter, 1996). 

Shaping and Changing Culture
Sense of belonging

A healthy balance is needed between the sense of urgency and the sense of belonging when changing culture is needed. It should replace the old ways that relied on command and control. Telling people what to do is different from influencing them to act in new ways. To be successful, creating the sense of urgency for change must be preceded by creating a sense of belonging (Conners et al, 2012). 

Companies that get the best out of their people are characterized by a higher set of motivational needs system, which could be related to the motivational steps of Maslow (1954, 1991). An element of that motivational system is creating attachment and affiliation which is about the need for engagement and sharing, a feeling of community and a sense of belonging to the company (Laura Mullins, 2005).  

Difficulties around changing the culture
Changing culture is not an easy task. There are several reasons why it is so difficult. The organizational culture is not a phenomenon that lies at the surface of the organization. It is something that lies deep within the organizational nervous system. Several things must be present to create an organizational culture  and  from  these  elements  we  can  extract  the  complexity  of it.  These  elements  are  structural stability, depth, breadth and patterning integration (Schein, 1985). 

Culture  can  be  called  the  foundation  of  group  identity.  It  holds  people  together  and  even  binds subcultures. Because it is so deeply involved with the identification of the people and groups within the organization, it is very difficult to change and shape. Transactional leadership is not the way to approach this. It will not hold people together and gives them an identity. It would be transformational leadership that is best suited to create, shape and change these identities and thus changing the organizational culture.  

Many problems of managing change result from a failure to understand, address and change culture. This  soft  side  of  HR management  can  also  be  linked  to  the  Theory  O  type  of  change  and  both  are concerned with the behavior of the people, individually and collectively. To be able to really change the organizational culture the focus must change from the harder Theory E type of changes to the softer Theory  O  type  of  changes.  This  should  be  an  important  element  of  the  leader  changing the organizational culture (Gerry Johnson, 2008; Carnall, 2007; Holbeche, 2006).  

These  characteristics  are  very  important  for  a  leader  who  must  change  or  shape  the  organizational culture.  Their  followers must  be  properly  motivated  to  change  or  shape  the  culture.  When  these characteristics are not present in a leader, changing the culture will often not succeed. To accomplish shared objectives, individual and collective efforts must be facilitated (Yukl, 2002).  

The  leadership  style  chosen  has  a  very  important  influence  on  the  success  or  failure  of  shaping  or changing the organizational culture. There are three main leadership styles; autocratic, consultative and group oriented. The last two are more related to the softer sides of Theory O type of change and will be more  successful  in  changing  the  organizational  culture  than the  Theory  E  type  of  change  (Holbeche, 2006; Isaksen and Tidd, 2006).  

Possible approach to change the organizational culture
Culture is not something that can be changed easily. Trying to grab the culture and twist it into new shapes will never work because organizational culture does not let itself being grabbed. This culture can only  be  changed  if  you  are  able  to  change  and  alter the  people’s  actions.  If  this  new  behavior  will provide  benefit  for  the  group  for  some  time  and  if  this  new  behavior  can be  linked  to  performance improvements, then eventually this change can be made enduring (Kotter, 1996).  

There are three sources of inertia that prevents the learning process; cognitive frameworks, motivation and  obligation.  People within  organizations  often  develop  a  shared  cognitive  framework  or  mental model that is of influence on the way they interpret the reality and how they learn. A shared mental model can prevent people from thinking outside that frame. It is important to alter that shared mental model of people to make them more adaptable to change (Gersick, 1991).  

Through strategy forums, open-space events, learning maps and workshops new mental models can be build. With new mental models aligned to the change we want to implement, people and groups are better capable of adapting to change (Carnall, 2007; Bruch and Sattelberger, 2001).  

Changing organizational culture is not something of the individual alone. There is also group behavior, where the benefit of the individual becomes less important or is aligned with the benefit of the group or subculture  where  this  individual  belongs  to.  The effective  management  of  work  groups  requires  an understanding  of  the  psychological  and  social  influences  on  behavior within  organizations  (Mullins, 2006).  

National cultures
Cultural  differences  appear  at  different  levels.  Often  discrimination  by  ethnic,  regional  and  religious origins delays the assimilation and forms a real problem in Organizational Cultures. Regional, ethnic and religious cultural dimensions have strong similarities with the characteristics of national cultures. It is impossible for any culture to prove that their religion and moral system is superior to others. Often their members reinforce these beliefs and values on each other until they become the truth. Cultural distance is often increased by religion and social norms. (Hofstede et al, 2010; Schein, 2004; Johnson et al, 2008).  

When looking at gender it is mostly the lack of having the right symbols, image and rituals than prevents role changes. This is a very slow process and these symbols, images and rituals must first be learned by the opposite sexes to make these role changes successful on the long run. Social class, race, age and religion are of influence on attitudes, beliefs and values. They on themselves will have an important role upon different understandings of gender. Gender egalitarianism can be seen as the extent to which an organization  or  society  tries  to  minimize  role  differences.  This  is  often  seen  within  organizational cultures; but also the opposite can be present (Hofstede et al, 2010; House et al, 2010; Mullins, 2005).  

These  same  rituals,  symbols  and  images  do  play  an  important  role  when  analyzing  the  generation differences. These differences become even bigger in technology based societies where the elder people have difficulties catching up with development of new tools. In agricultural cultures these differences between generations are less evident.  

The  social  class  differences  are  related  to  education  and  educational  opportunities.  Furthermore someone’s occupation or profession often determines the sub-culture this person belongs to. Different countries have their own set of classes. Often symbols like manners, accents of language and the use of certain words in specific situations determines the class a person belongs to. When these symbols are dramatically  different  between  sub-cultures,  it  is  very  difficult  to  integrate  them  into  the overall organizational culture (Hofstede et al, 2010).  

Often the higher layers within an organization show the symbols, accent and rituals of the higher social class within a national culture and down the organizational layers these manners, accents and rituals are more  related  to  the  middle  and  lower  layers of  society,  despite  many  initiatives  to  make  class differences disappear. Just like the French situation where the classes themselves have limited room for change and integration (Bhagat & Steers, 2009; Richardson, 2001). 

When above elements are translated to the organizational culture, then they can define the areas where change is needed to dismantle the barriers between sub-cultures. They often form the most important factors of differentiation and by analyzing their presence within the organizational culture, they can help us to make better use of the Organizational Culture Assessment Instrument OCAI of Cameron and Quinn (1998), the 7s model of Peters & Waterman, the Organizational Character Index of Bridges (2000), the cultural  dimensions  defined  by  Schein  (1984)  and  Kotter  (1992)  or  the  cultural  change management elements of Paul Bate (1984). 

Leading across cultures
For successful leadership across cultures it is important to create cross-cultural awareness, which could increases  and  stimulate self-awareness,  sensitivity  to  differences,  questioning  own  assumptions  and lessening of ignorance, prejudice and hatred. Having cross-cultural awareness, although essential for the cross-cultural  leader,  does  not  imply  that  these  positive  outcomes automatically  come  to  existence. There is evidence that multi-cultural work teams perform much better or much worse than teams with one cultural background. To increase the chance for better multi-cultural team performance, cultural intelligence and cross-cultural awareness are thus necessary elements for leading across cultures. The right cross-cultural elements can then be stimulated and integrated (Mullins, 2005; Yukl, 2010; Saunder et al, 2010). 

Language and interpretation of leadership across cultures is another issue. Cultures vary among each other,  but  also  the institutions  and  leadership  within  these  cultures  differ.  The  type  of  national  or organizational culture determines the possible leadership style which is most effective. An autocratic society or organization demands a different leader than a pure democratic society or organization for example. Having many different (national) cultures within an organization and within different teams means that a leadership style is needed that can address all these differences and make a unit out of them (Mullins, 2005; Bhagat et all, 2009). 

Conslusion
This research has analyzed and explained the importance of organizational culture related to change and innovation. This research has investigated the different parts of organizational culture and how it can be influenced to undergo the change needed for innovation. In this analysis, the aim was to clarify how subcultures and national cultures are inseparable from organizational culture and without them proper study of this phenomenon is impossible.  

The findings of this research suggest that the different subcultures and national cultures should be part of  an overall  integrated organizational culture  to  be  effective  for  innovation  and  change.  One  of  the more significant findings of this research showed that the quality of health care within a nursing home for  elderly  people  could  be  dramatically  improved  if  the  different subcultures  and  national  cultures shared the same set of basic assumptions and belief system though cultural integration.  

There are a number of relevant caveats regarding the present study. A very important caveat is the fact that the study is focused on a very small group of nurses within one nursing home for elderly people. The  outcomes  of  this  study  can  be  very  different  in other  national  cultures,  regions,  countries  and nursing homes with different types of dependents. Furthermore, the literature review was short and only a narrow focus on the existing material concerning the topic was possible.  

Therefore, this research created many new questions in need for further analysis within health care in general  and  nursing  homes for  elderly  people  specifically.  Further  research  in  this  relative  new  field regarding the role of organizational culture related to innovation and change within nursing homes for elderly  people  to  improve  the  healthcare  given,  would  be  of  great  help  in better  understanding  this coherent relationship between these elements. A reasonable approach to tackle this problem could be to broaden  the  literature  on  this  topic  and  do  the  research  within  more  nursing  homes  for  elderly people with a different set of typical dependents and nurses. 



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