Lecture 6

Question 1

Organizational Culture

Answer 1

= The set of shared values, beliefs, and norms that influence the way employees think, feel, and behave toward each other and toward people outside the organization.

Question 2

Key characteristics of Organizational Culture

Answer 2

• Shared: Held collectively, not individually
• Learned: Transmitted through socialization
• Enduring: Resistant to change
• Implicit: Often taken for granted
• Powerful: Shapes behavior unconsciously

Question 3

Schein’s Levels of Culture

Answer 3

Level 1: ARTIFACTS (Visible)
Level 2: ESPOUSED VALUES (Conscious)
Level 3: BASIC ASSUMPTIONS (Unconscious)

Question 4

Level 1: ARTIFACTS (Visible)

Answer 4

• Observable behaviors, dress, office layout, rituals
• Easy to see but hard to interpret
• Examples: Open offices, casual dress, weekly all-hands

Question 5

Level 2: ESPOUSED VALUES (Conscious)

Answer 5

• Stated values, philosophies, goals
• What organization says it believes
• Examples: Mission statements, codes of conduct

Question 6

Level 3: BASIC ASSUMPTIONS (Unconscious)

Answer 6

• Deeply embedded, taken-for-granted beliefs
• Invisible but most powerful
• Examples: Beliefs about human nature, relationships, truth

Question 7

What is a rite of passage?

Answer 7

A rite that facilitates the transition of individuals into new social roles or statuses.

Example: Induction and basic training in the Canadian military.

Question 8

What is a rite of enhancement?

Answer 8

A rite that enhances social identities and increases the status of individuals within an organization.

Example: An annual awards night.

Question 9

What is a rite of renewal?

Answer 9

A rite that refurbishes social structures and improves organizational functioning.

Example: Organization development activities.

Question 10

What is a rite of integration?

Answer 10

A rite that encourages and revives shared feelings that bind members together and commit them to the organization.

Example: An office holiday party.

Question 11

How Organizational Culture Forms

Answer 11

Founders’ Values & Beliefs → Initial Success & Learning → Socialization of New Members → Reinforcement → Culture Becomes Embedded

Question 12

Reinforcement of culture through

Answer 12

Leadership behavior, stories and myths, rituals and ceremonies, symbols and language, reward systems, selection processes

Question 13

Strong Culture

Answer 13

• Values widely shared and intensely held
• Clear agreement on “how we do things.”
• High behavioral consistency
• Strong socialization processes

Question 14

Strong cultures can be good or bad depending on:

Answer 14

 Alignment with strategy, structure and environment
 Adaptability vs. rigidity
 Ethical vs. unethical norms

Question 15

Types of Organizational Culture - The Competing Values Framework

Answer 15

Adaptability
Mission/Achievement
Clan
Bureaucratic

Question 16

Adaptive culture

Answer 16

Innovation, creativity, and rewarded experimentation

Risk-taking, entrepreneurial spirit, and learning from failure

External focus on customers, markets, and environmental change

High flexibility, quick adaptation, and tolerance for ambiguity

Decentralized decision-making

Question 17

Mission culture

Answer 17

Clear vision, purpose, and goal orientation

Strong focus on results, performance excellence, and achievement

Competitiveness and winning mindset

External focus on customers and beating competitors

Clear goals, metrics, and high performance expectations

Top-down direction with rewards tied to results

Question 18

Clan culture

Answer 18

Participation, collaboration, and teamwork

Strong concern for people, employee well-being, and morale

Cohesion, loyalty, fairness, and commitment

Empowerment with few rules

Consensus-based decision-making

Strong socialization and rewards for loyalty and teamwork

Question 19

Bureaucratic culture

Answer 19

Stability, predictability, efficiency, and consistency

Rules, procedures, formalization, and standardization

Clear hierarchy, order, roles, and responsibilities

Centralized decision-making

Internal focus on processes

Risk avoidance with rewards for reliability and compliance

Question 20

Adaptive versus Maladaptive Organizational Cultures

Answer 20

Adaptive Culture:
Focus on customers, employees, and long-term value
Embraces change
Proactive and stakeholder-focused
Encourages participation and creativity

Maladaptive Culture:
Focus on self-interest, risk avoidance, and short-term gains
Resists change
Isolated and bureaucratic
Restricts participation and creativity