Chapter 7

Question 1

What is the definition of organisational culture?

Answer 1

The taken-for-granted assumptions and behaviours of an organisation’s members

Organisational culture influences strategy and can provide competitive advantage.

Question 2

Famous quote about strategy and culture

Answer 2

culture eats strategy for breakfast!!

This emphasizes the importance of culture in defining an organisation’s strategy.

Question 3

What does continuity in organisational culture imply?

Answer 3

Little distance from the organisation’s origins

Continuity suggests steady and small changes in culture over time.

Question 4

What is an example of a company that actively manages its history?

Answer 4

Piaggio

Piaggio uses its history to inspire new products and strengthen emotional bonds with customers.

Question 5

What does historical selection involve?

Answer 5

Deliberate selectivity regarding elements from an organisation’s past

This allows for partial incorporation of history into present strategy.

Question 6

What is an example of historical rupture?

Answer 6

Radical cultural change that breaks from the past

This approach can be used to sharpen contrasts with previous legacies.

Question 7

What does historical rediscovery aim to achieve?

Answer 7

Rediscovering valuable elements of the old culture

This often occurs after a strategic failure.

Question 8

What are the two key forms of historical analysis mentioned?

Answer 8

• Chronological analysis
• Historical storytelling

These analyses provide insights into an organisation’s current and future strategy.

Question 9

What does geographical influence on culture refer to?

Answer 9

Cultural differences shaped by national or regional factors

These influences can affect attitudes towards work and people.

Question 10

According to Geert Hofstede, what is a characteristic of Latin cultures?

Answer 10

More collectivist

This implies a group-oriented approach in organisations.

Question 11

What does the Spencer Stuart survey identify as a dimension of culture?

Answer 11

• Attitude towards people
• Attitude towards change

These dimensions differentiate cultures across the world.

Question 12

What are the two dimensions identified by Spencer Stuart that differentiate cultures?

Answer 12

• Attitude towards people: independence or interdependence
• Attitude towards change: flexibility or stability

These dimensions help define eight cultural orientations across different regions.

Question 13

Which region ranks highest on enjoyment of work according to Spencer Stuart?

Answer 13

South America

This region is characterized by high independence and flexibility.

Question 14

Which region is identified as having the highest orientation towards order?

Answer 14

Western Europe

This orientation is associated with high interdependence and stability.

Question 15

True or false: Geographical cultural differences should be exaggerated when analyzing organizational behavior.

Answer 15

FALSE

Generalizing about countries or regions should be done cautiously as there are significant variations within countries.

Question 16

What is an organizational field?

Answer 16

A community of organizations that interact more frequently with one another than with those outside the field

It includes firms, customers, suppliers, regulators, and other relevant entities.

Question 17

What are the three concepts useful for understanding organizational fields?

Answer 17

• Categorization
• Recipes
• Legitimacy

These concepts help explain how organizations define their strategies and behaviors.

Question 18

Fill in the blank: A recipe in an organizational field refers to a set of _______.

Answer 18

assumptions, norms, and routines

Recipes represent shared wisdom about what works best within the field.

Question 19

What does legitimacy in an organizational field refer to?

Answer 19

Meeting the expectations within the field in terms of assumptions, behaviors, and strategies

Organizations conform to legitimate norms to secure support from stakeholders.

Question 20

According to Edgar Schein, what are the four layers of organizational culture?

Answer 20

• Artifacts
• Espoused values
• Underlying assumptions
• Beliefs

These layers help in understanding the culture and its influence on strategy.

Question 21

What is the paradigm in the context of organizational culture?

Answer 21

The set of assumptions held in common and taken for granted in an organization

It guides how members view and respond to different circumstances.

Question 22

What are rituals and routines in an organizational culture?

Answer 22

• Repetitive behaviors that reflect the way things are done
• Activities that emphasize important cultural aspects

They can either facilitate organizational functioning or become barriers to change.

Question 23

What do power structures in an organization refer to?

Answer 23

Distributions of power to groups of people

The most powerful individuals are often closely associated with the organizational paradigm.

Question 24

What are control systems in an organization?

Answer 24

Formal and informal ways of monitoring and supporting people

They emphasize what is important in the organization, including measurements and reward systems.

Question 25

What are the **three distinct branches** of an organisation's control systems?

Answer 25

* Formal control systems * Informal control systems * Measurement and reward systems ## Footnote Control systems monitor and support people within and around an organisation, emphasizing what is seen as important.

Question 26

True or false: Control systems in public-service organisations often prioritize **quality of service** over stewardship of funds.

Answer 26

FALSE ## Footnote Public-service organisations are often accused of focusing more on accounting for spending than on quality of service.

Question 27

What is the **central paradigm** of the wolf culture in Huawei?

Answer 27

Mutually reinforcing elements of the cultural web ## Footnote This culture emphasizes competition and collaboration within the organisation.

Question 28

What are some **important issues** to consider when analyzing an organisation's culture?

Answer 28

* Questions to ask * Statements of cultural values * Integration of cultural elements ## Footnote These issues help build an understanding of culture using the cultural web.

Question 29

What is the danger of **public statements** of values and beliefs in organisations?

Answer 29

They may be misleading or only partially true ## Footnote Such statements often reflect aspirations rather than the actual culture.

Question 30

What is the **cultural web** used for in organisational analysis?

Answer 30

To produce a detailed map of an organisation's culture ## Footnote This map can provide rich information about the organisation's culture.

Question 31

What does the **National Health Service** culture summarize as?

Answer 31

'The National Sickness Service' ## Footnote This description reflects the prioritization of curing sick people over health promotion.

Question 32

What are the **four phases** in the process of strategic drift?

Answer 32

* Incremental strategic change * Strategic drift * Flux * Transformation or death ## Footnote These phases illustrate how strategies can fail to keep pace with environmental changes.

Question 33

What is **strategic drift**?

Answer 33

The tendency for strategies to develop incrementally while failing to keep pace with environmental changes ## Footnote This can lead to a growing gap between the organisation and its environment.

Question 34

What is the **first phase** of strategic drift?

Answer 34

Incremental strategic change ## Footnote This phase involves small adjustments and periods of relative continuity.

Question 35

What triggers the **flux phase** in strategic drift?

Answer 35

A downturn in performance due to the growing gap between organisation and environment ## Footnote Strategies may change but lack clear direction during this phase.

Question 36

What are the two possibilities in the **final phase** of strategic drift?

Answer 36

* Organisation may die (bankruptcy or takeover) * Organisation may undergo transformational change ## Footnote Transformational change can involve changes in strategy, business model, culture, and structure.

Question 37

What are some **reasons** why it is hard to avoid strategic drift?

Answer 37

* Uncertainty * Path dependency and lock-in * Cultural entrenchment ## Footnote These factors can inhibit significant change and reinforce outdated strategies.

Question 38

What does **organisational identity** refer to?

Answer 38

A claim about 'who we are' as an organisation ## Footnote It is often expressed in official materials and can influence strategy and recruitment.

Question 39

What is the difference between **organisational identity** and **organisational image**?

Answer 39

* Identity: How the organisation sees itself * Image: How outsiders perceive the organisation ## Footnote Identity claims can shape views of environmental opportunities and threats.

Question 40

What is an example of a company that underwent a deliberate change in its **claimed identity**?

Answer 40

Carlsberg ## Footnote Carlsberg shifted its identity from a brewer to a fast-moving consumer goods company.

Question 41

What is an example of **strategic drift** in a well-known company?

Answer 41

Kodak ## Footnote Kodak failed to fully commit to digital technology despite producing one of the first digital cameras.

Question 42

How can **culture** affect **strategy**?

Answer 42

* Source of differentiation * Cohesive force for organisations * Inspiration for new strategies * Barrier to change ## Footnote Recognising these influences is crucial for effective strategic planning.

Question 43

What should organisations be explicit about regarding their **strategic choices**?

Answer 43

How far they are unconsciously shaped (or trapped) by cultural influences from history, geography, or field ## Footnote This awareness can help in making more informed strategic decisions.

Question 44

How can **history** be used in an organisation's strategy?

Answer 44

* Proactively inspire * Legitimise strategy * Draw on historical continuity * Selection, rupture, or rediscovery approaches ## Footnote Leveraging historical context can enhance strategic relevance.

Question 45

What should be analysed to understand an organisation’s **corporate culture**?

Answer 45

Whether subcultures matter for strategy, as sources of resistance or renewal ## Footnote Understanding subcultures can provide insights into potential challenges or opportunities.

Question 46

What should be identified regarding the **cultural paradigm** of an organisation?

Answer 46

How far it is reinforced by the seven elements of the cultural web ## Footnote The cultural web helps in understanding the underlying cultural dynamics.

Question 47

How should an organisation assess its **identity**?

Answer 47

How closely its identity claims fit with reality ## Footnote A mismatch can lead to credibility issues and affect strategic alignment.

Question 48

What should organisations assess to avoid **strategic drift**?

Answer 48

How well the organisation’s culture is keeping pace with the environment ## Footnote Strategic drift can lead to misalignment with market demands and opportunities.