OB CH 14 outline - Kristin Chen CH 14 OB Outline...

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FLEXIBILITY & DISCRETION (interest in making changes) ADHOCRACY CULTURE CLAN CULTURE INTERNAL FOCUS EXTERNAL FOCUS HIERARCHY CULTURE MARKET CULTURE STABILITY & CONTROL (interest in keeping things the same) SUSTAINING INNOVATION [incremental nature allows companies to approach their market in the same manner] INCREMENTAL INNOVATION [slow & steady approach-companies exploit existing technology ] MANUFACTUER INNOVATION [traditional - organization develops an innovation for purpose of selling it] [so extreme in nature that it changes the market] RADICAL INNOVATION [companies make quantum leaps- explore new technology & operate under highly uncertain condit END-USER INNOVATION [new ideas inspired by individuals who use a company’s products] IMPACT ON EXISTING BUSINESS SIGNIFICANT MINOR DEGREE OF UNCERTAINTY HIGH LOW SOURCE CUSTOMER COMPANY CH 6 VOCABULARY Kristin Chen CH 14 OB Outline Organizational Culture, Creativity, & Innovation 1. The 5 Fundamental Aspects of Organizational Culture a. [1] formal definition i. Organizational culture = a set of basic assumptions shared by members of an organization; a cognitive framework consisting of attitudes, values, behavior norms & expectations shared by organization members b. [2] key characteristics on which it is based i. 6 core characteristics 1. Sensitivity to others a. Customer service & satisfaction 2. Interest in new ideas a. Scripted behavior vs. unique behaviors 3. Willingness to take risks 4. The value placed on people a. Toxic organizational cultures = people feel that they are not valued b. Healthy organizational cultures = people feel that they are valued 5. Openness of Available Communication Options a. make decisions freely vs. proper communication channels 6. Friendliness & Congeniality a. Friendships vs. cutthroat & competitive c. [3] strength of organizational culture i. Strong culture = core values are held intensely & shared widely 1. A clear philosophy exists about how business is to be conducted 2. Considerable time is spent communicating values & beliefs 3. Explicit statements are made that describe the organization’s values 4. A set of values & norms exists that are shared widely & rooted deeply 5. New employees are screened carefully to ensure fit with the culture ii. weak culture = limited agreement upon core values iii. strong cultures are found in organizations that are news & have fewer employees d. [4] whether there is generally only one or more than one culture within organizations i. Subcultures = cultures existing w/in parts of organizations rather than entirely through them 1.
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