Chapter 8: Organizational Culture

Introduction

Edgar Schein (1985) defines organizational culture as: “A pattern of shared basic assumptions that a group has learned as it solved its problems of external adaptation and internal integration, that has worked well enough to be considered valid and therefore, to be taught to new members as the correct way to perceive, think, and feel in relation to those problems.”

Culture is a key factor not only in achieving organizational goals, but also in attracting and keeping desirable employees, creating a positive public image, and building respectful relationships with stakeholders.

Transformational Leadership & Organizational Culture

The organization's culture develops in large part from its leadership while the culture of an organization can also affect the development of its leadership.

Transactional vs. transformational organizational cultures

While we can describe an ideal or “pure” transactional organizational culture and a "pure” transformational one, it is clear that organizations are likely to have cultures that are characterized by both styles of leadership.

Transformational Leadership & Organizational Culture

Several typologies of organizational culture:

• A Predominantly To Moderate Transformational Organization

• A High Contrast Organization• A Coasting Organizational Culture• Predominately To Moderate Contractual Organizations• The Pedestrian Organization• The Garbage Can Organizational Culture

What Do We Know About Managing Scientists and Engineers

10 principles for how knowledge workers should be managed:1. Human Resource Planning2. Rewarding3. Appraising Performance4. Career Management5. Cross-Functional Teams6. Leading Scientists & Engineers7. Knowledge Management8. Demographic Diversity9. Electronic Technologies10. Outsourcing

What Do We Know About Managing Scientists and Engineers

All we know about managing scientists and engineers, however, is of little use unless technical managers use this knowledge to lead scientists and engineers. It is suggested that there is two obstacles preventing this from happening:

Managing potential is still determined much more by an individual’s technical skills than by his or her potential to develop leadership skills

Even if some scientists and engineers also have the potential to develop leadership skills, they are often promoted into management before they have enough opportunities to develop these skills adequately

Crafting a Culture of InnovationThree micro cultures of innovation:1. Fuzzy Front End2. Product Development Process3. Market OperationsAll three micro cultures are essential to the creation of new value.

Seven key principles at work in highly innovative companies:4. Sustain faith and treasure identity as an innovative company5. Truly experimental in all functions – especially in the front end6. Structure ”really real” relationships between marketing and technical people7. Generate customer intimacy8. Engage the whole organization9. Never forget the individual10. Tell and embody powerful and purposeful stories

Crafting a Culture of InnovationTwo other conditions found in highly innovative organizations are:1. Total interconnectivity among remotely located individuals2. Permeable boundaries across all systems and work groups – even those

external to the enterprise itself

The innovative productivity of collaboration comes from the differentness of the individuals in a group, not their sameness.

Innovative collaboration demands strong alignment at three levels:3. To the individuals own goals in life (for creativity and motivation)4. To others in the enterprise (for collaboration)5. Between individuals in the enterprise and the larger society (for creating value)Both clarity of purpose and alignment of organizational and personal purpose are vital to sustaining the passion and commitment of a culture of innovation

Exercises and Practice Routines”Exploring the Three Levels of Culture: The Way We Do Things In Our Organization” Answer the following questionsTypical Behavior Patterns:• If someone came fresh to our workplace, what would particularly strike him or her?• How would we characterize how people interact at our organization? Stated Values:• What do we say we value in our organization?• Do we always live up to these values, or are different values sometimes displayed in what we do? Fundamental Assumptions:• What views and attitudes do we take for granted?• What assumptions underlying our work are simply not questioned? Discuss the following questions• What aspects of your culture do you think are enabling you to innovate?• Which aspects of your culture are inhibiting or obstacles?

Bibliography and Reference Materials

Bass, Bernard M. & Avolio, Bruce J. (1993). Transformational Leadership and Organizational Culture. PAQ. Spring, pp. 112-121 Farris, George F. & Cordero, Rene. (2004). What Do We Know About Managing Scientists and Engineers: A Review of Recent Literature. The Center for Innovation Studies at North Carolina State University, pp. 1-39 Zien, Karen Anne & Buckler, Sheldon A. (1997). From Experience. Dreams to Market: Crafting a Culture of Innovation. Journal of Product Innovation Management. Volume 14, pp. 274-287