1. ORGANIZATIONAL CULTURE
Assumptions About External
Adaptation Issues
MSEL 532 – Designing Organizational Culture
Sonia M. Farace
Stephanie Armstrong
Jan 14th, 2013
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2. Learning Objectives
1. Leaders as
entrepreneurs, are the
main architects of
culture
2. Culture once its
formed, it influences &
shapes Leadership.
3. If needed, Leadership
can & must speed up
culture change
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3. THREE LEVELS OF CULTURE
ARTIFACTS Structures & Processes
VISIBLE
(Formal)
• Language/Technology
Observed Behavior
• Emotional Displays The way we say
1 • Physical Structure we get things (difficult to decipher)
• Dress Code done
SPOUSED VALUES Theories in Use
• Conscious beliefs
• Ideologies Values & Attitudes Leadership Style
2
• Rationalization
Informal Groupings Power & Politics
INVISIBLE
(Informal)
Non-confrontable Rules of behavior
BASIC ASSUMPTIONS
• Unconscious, taken for Non-debatable Self-Esteem
granted beliefs & Values
3 • Perceptions, Thoughts
& Feelings The way we
really get
things done
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4. The Process of Culture Formation
...for long term growth
1. Survival in adaptation
to the external
environment.
2. Integration of the
internal processes.
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5. Basic Assumptions
Big or small, all
organizations have
external and internal
assumptions
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6. Culture Formation
• Shared Experiences
• Leadership
• Common Learning
Group Growth &
Culture Formation
are the two sides
of the same coin
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7. Problems of External Adaptation &
Survival
Mission & Strategy Measurement
Goals Correction
Means
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8. Mission & Strategy
An organization survives
& grows when obtains a
F
shared understanding of U
their reason they exist
T
V U
I R
S T R A T E G Y
I I
O M I S S I O N
N
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9. Goals...consensus
EXECUTIVES
ENGINEERING
OPERATIONS
…of the three cultures
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10. Means...to get things done!
SKILLS
RESOURCES
PROCESSS
SYSTEMS
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11. Measurement
…improving performance
4.3 4.5
Consensus on the
3.5 criteria to be used
in measuring the
2.5 performance of
current and
members
KPI #1 KPI #2 KPI #3 KPI #4
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12. Error Detection &
Correction…
Reject the ones
that don’t work
Try many options…
Keep the ones
that do
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13. Correction
…action to take if change in course
is needed
Consensus on repair strategies…
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14. Conclusion
• Focus on the
External Problems
• Successful
management of
External Problems
will determine your
success
…Leadership and Culture are intertwined
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15. "USD is founded and sustained by a belief in the essential goodness of creation, the worthiness of a lifelong commitment to
understanding and working on behalf of the human condition."
- President Mary E. Lyons
Notas del editor
References:Schein, E. (2010). Organizational Culture and Leadership.(4th Edition).Schein, E. (1996). Three Cultures of Management: The Key to Organizational Learning Sloan Management Review. 38 (1):, p9-20.
EntrepreneurLeaders are the main architects of cultureCulture once its formed, it influences and shapes Leadership.If elements of the culture become dysfunctional, leadership can and must do something to speed up culture change
Culture Formally Defined:“A pattern of shared basic assumptions learned by a group as it solved its problems of external adaptation and internal integration, which has worked well enough to be considered valid and therefore, to be taught to new members as the correct may to perceive, think, and feel in relation to those problems.”Schein, E. (2010),Organizational Culture and Leadership, p9-18.
The definition of organizational culture tells us about culture from the structural point of view, but it does not tells us about its contents – what cultural assumptions are all about:Survival in and adaptation to the external environment (focus of this chapter)Integration of the internal processes to ensure the capacity to continue to survive and adapt
ALL organizations – regardless of their size – have external and internal assumptions that affect and essentially make up their culture. Becoming aware of these assumptions can help an organization better manage outcomes, recognize what may be “unspoken,” and ultimately ensure their survival.Note: These assumptions are at play and making an impact whether they are recognized or not. Recognizing them can support effective leadership. This chapter illuminates aspects of culture formation, or “group identity,” that are essential to a company’s survival thus requiring adaptation to the external environment.
Culture formation and group formation are one in the same. Patterns of thought, Beliefs, Feelings and Values that result from common experience and common learning become the “culture” of a group. Group Shared Experiences + Leadership + Common Learning = Shared Assumptions = Group Culture Conclusion: Group Growth and Culture Formation are the two sides of the same coin
THE PROBLEMS OF EXTERNAL ADAPTATION AND SURVIVAL Mission & StrategyGoalsMeansMeasurementCorrection
Mission & Strategy: Obtaining a shared understanding of core mission, primary task, and manifest and latent functions. (i.e. Shared Assumption for the “reason to be” in business, why the organization exists, long range)These are timeless and long rangeManifest functions are the public acknowledgement of “who we are” and the reason-to-be for the company or group. Shared assumptions about “who we are” are a key element of the organization’s culture and to some degree limits the strategic options available to the organization.Latent functions are the shared and unspoken assumptions, their importance only become apparent (or rise to the surface) when an organization or group is in times of crisis or become threatened.
Goals: Developing consensus on goals, as derived from the core mission (i.e. short term activities to carry out the mission and strategy – short term) These are precise and tactical, with immediate and short-term execution in mind and solidify the mission and facilitate the decisions on means (i.e. resource allocation, prioritization of project or activities, etc).The process of goal-setting can unearth unresolved issues or a lack of subculture consensus on deeper issues. Only when consensus is reached, the goals can reveal cultural elements of an organization.
Means: Developing consensus on the means (or artifacts) to be used to attain the goals, such as the organization structure, division of labor, reward system and authority system. (i.e. Skills, Resources, Structure, Systems and Processes)The “How’s”: How things will be done, how the mission is achieved, etc. These can be some of the most important yet most invisible assumptions of an organization.When leaders succeed in imposing artifacts (such as structure, systems and processes) and consensus is reached, these can become part of the organizational culture. The downside is that when the artifacts become elements of the culture, these are hard to change. Consensus on the means creates behavioral regularities that can eventually become visible manifestations of the culture.
Measurement: Developing consensus on the criteria to be used in measuring how well the group is doing in fulfilling its goals, such as the information and control system. (i.e. Error Detection and Correction Systems – KPIs, Performance Reviews) Note: This step involves the cycle of obtaining information, getting that information to the right place within the organization, and synthesizing it so that appropriate corrective action can be taken.Consensus must be reached on what to measure, what to measure and what to do when corrections are needed.These are primary focus of current members of an organization as well as newcomers because these measurements are linked on how they perform in doing their jobs.
Correction: Developing consensus on the appropriate remedial or repair strategies to be used if goals are not being met. (i.e. Change Management Process) Consensus is crucial for survival – what kind of action to take if a change in course is required and how to make that change.When crisis arises underlying assumptions surface.Crisis situations reveal whether workers’ subcultures have developed around restriction of output and hiding ideas from management or whether these subcultures support productivity goals.
CONLCUSION:Culture ultimately reflects the group’s effort to cope, learn and adapt, therefore the implications for us leaders are:External Problems for adaptation and survival should be their primary focus, even when the group was formed before his/her time.Successful management of these external problems is most often how the success orfailure of a leader is measured.