According to the OCP framework, companies that have innovative culturesinnovative culturesCultures that are flexible, adaptable, and experiment with new ideas. Companies with aggressive culturesaggressive culturesCultures that value competitiveness and outperforming competitors.
Microsoft, the company that Bill Gates co-founded, has been described as having an aggressive culture. The OCP framework describes outcome-oriented culturesoutcome-oriented culturesCultures that emphasize achievement, results, and action.
People-oriented culturespeople-oriented culturesCultures that value fairness, supportiveness, and respecting individual rights. Companies with a team-oriented cultureteam-oriented culturesCultures that are collaborative and emphasize cooperation among employees. The growth in the number of passengers flying with Southwest Airlines from 1973 until 2007 when Southwest surpassed American Airlines as the most flown U.S.
Organizations with a detail-oriented culturedetail-oriented culturesCultures that emphasize precision and paying attention to details.
It is important to realize that a strong culture may act as an asset or a liability for the organization, depending on the types of values that are shared. Walt Disney created a strong culture at his company that has evolved since its founding in 1923.
So far, we have assumed that a company has a single culture that is shared throughout the organization. Sometimes, a subculture may take the form of a counterculturecountercultureShared values and beliefs that are in direct opposition to the values of the broader organizational culture.. Culture can be understood in terms of seven different culture dimensions, depending on what is most emphasized within the organization. Out of the culture dimensions described, which dimension do you think would lead to higher levels of employee satisfaction and retention?
Even though culture may not be immediately observable, identifying a set of values that might be used to describe an organizationa€™s culture helps us identify, measure, and manage culture more effectively. In an organization where certain values are widely shared, if the organization decides to adopt a different set of values, unlearning the old values and learning the new ones will be a challenge because employees will need to adopt new ways of thinking, behaving, and responding to critical events.
During mergers and acquisitions, companies inevitably experience a clash of cultures, as well as a clash of structures and operating systems. Defined as shared values and beliefs that are in direct opposition to the values of the broader organizational culture,[367] countercultures are often shaped around a charismatic leader. For example, innovative cultures are flexible, adaptable, and experiment with new ideas, while stable cultures are predictable, rule-oriented, and bureaucratic.
Do you think that different cultures are more or less effective at different points in time and in different industries?
In workplace safety, the term is a safety jargon used with respect to systems in safety management. At the very top level is the best measure while the least effective measure is placed at the bottom.
These companies are characterized by a flat hierarchy and titles and other status distinctions tend to be downplayed.
When the environment is stable and certain, these cultures may help the organization to be effective by providing stable and constant levels of output.[354] These cultures prevent quick action and, as a result, may be a misfit to a changing and dynamic environment. For example, Southwest Airlines facilitates a team-oriented culture by cross-training its employees so that they are capable of helping one another when needed.


While price has played a role in this, their emphasis on service has been a key piece of their culture and competitive advantage.
Such a culture gives a competitive advantage to companies in the hospitality industry by helping them differentiate themselves from others.
The stronger a companya€™s culture, the more likely it is to affect the way employees think and behave. If this value system matches the organizational environment, the company may perform well and outperform its competitors. For example, Home Depot had a decentralized, autonomous culture where many business decisions were made using a€?gut feelinga€? while ignoring the available data. For example, people working on the sales floor may experience a different culture from that experienced by people working in the warehouse.
For example, within a largely bureaucratic organization, an enclave of innovativeness and risk taking may emerge within a single department.
Strong cultures can be an asset or liability for an organization but can be challenging to change. Basically, the idea is to start at the top and moving downwards as you select the control measures. The company has faced a number of antitrust lawsuits and disputes with competitors over the years. Having a culture emphasizing sales performance, Best Buy tallies revenues and other relevant figures daily by department.
The company pays employees above minimum wage, offers health care and tuition reimbursement benefits to its part-time as well as full-time employees, and has creative perks such as weekly free coffee for all associates. For example, Four Seasons and Ritz Carlton are among hotels who keep records of all customer requests such as which newspaper the guest prefers or what type of pillow the customer uses. When Robert Nardelli became CEO of the company in 2000, he decided to change its culture starting with centralizing many of the decisions that were previously left to individual stores. For example, during the merger of Daimler-Benz with Chrysler to create DaimlerChrysler, the differing strong cultures of each company acted as a barrier to effective integration.
Cultures that emerge within different departments, branches, or geographic locations are called subculturessubcultureA set of values unique to a limited cross section of the organization.. A counterculture may be tolerated by the organization as long as it is bringing in results and contributing positively to the effectiveness of the organization. Multiple cultures may coexist in a single organization in the form of subcultures and countercultures. Effect of organizational cultures on mergers and acquisitions: The case of DaimlerChrysler. This list usually comprises things that are related or have some commonality as well as order. In the private sector, Kraft Foods is an example of a company with centralized decision making and rule orientation that suffered as a result of the culture-environment mismatch.[355] Its bureaucratic culture is blamed for killing good ideas in early stages and preventing the company from innovating.
This information is put into a computer system and used to provide better service to returning customers. However, a strong outcome-oriented culture coupled with unethical behaviors and an obsession with quantitative performance indicators may be detrimental to an organizationa€™s effectiveness.
This initiative met with substantial resistance, and many high-level employees left during Nardellia€™s first year. Daimler had a strong engineering culture that was more hierarchical and emphasized routinely working long hours.


Subcultures may arise from the personal characteristics of employees and managers, as well as the different conditions under which work is performed. Assessing the relationship between industry characteristics and organizational culture: How different can you be?
The first is elimination, which basically involves doing away with the source of risk completely. Gore & Associates is a company with innovative products such as GORE-TEXA® (the breathable fabric that is windproof and waterproof), Glade dental floss, and Elixir guitar strings, earning the company the distinction as the most innovative company in the United States by Fast Company magazine in 2004. In these companies, it is more common to see rewards tied to performance indicators as opposed to seniority or loyalty. Any requests hotel employees receive, as well as overhear, might be entered into the database to serve customers better.
Despite getting financial results such as doubling the sales of the company, many of the changes he made were criticized. Daimler employees were used to being part of an elite organization, evidenced by flying first class on all business trips.
In addition to understanding the broader organizationa€™s values, managers will need to make an effort to understand subculture values to see their effect on workforce behavior and attitudes.
In some cases, this may lead to actions that would take away the autonomy of the managers and eliminate the counterculture. Therefore, hierarchy of control is basically a list of the different types of controls within an organization that range from very good to not useful. The other step involves substitution where a hazard is replaced with a less risky mode of achieving a similar outcome. However, Chrysler had a sales culture where employees and managers were used to autonomy, working shorter hours, and adhering to budget limits that meant only the elite flew first class. A hierarchy of control helps in developing a systematic way of managing safety at the workplace. It does so by making available a structure that allows people to select the most workable control measures to reduce or eliminate risk posed by various identified hazards. The engineering step is concerned with use of engineering controls such as physical changes to reduce risk. Gore consistently manages to innovate and capture the majority of market share in a wide variety of industries, in large part because of its unique culture. The other step in hierarchy of control involves taking administrative measures to reduce risk. In this company, employees do not have bosses in the traditional sense, and risk taking is encouraged by celebrating failures as well as successes.[348] Companies such as W.
People and organizational culture: A profile comparison approach to assessing person-organization fit. Gore, Genentech, and Google also encourage their employees to take risks by allowing engineers to devote 20% of their time to projects of their own choosing.
In involves personal protective equipment where workers are required to wear equipment such as earplugs, iridescent vests, and gloves.




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