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CHAPTER 3 LAYERS OF ORGANIZATIONAL CULTURE Observable Artifacts- at the more visible level; artifacts consist of the physical manifestations of an organization’s culture; examples- acronyms, manner of dress, awards, observable rituals and ceremonies; includes visible behaviors exhibited by people and groups; artifacts are easier to change that the less visible aspects of organizational culture Espoused Values- Values possess 5 key components: Values are (1) concepts or beliefs (2) pertain to desirable end-states or behaviors (3) transcend situations (4) guide selection or evaluation of behavior and events (5) ordered by relative importance - Espoused values: represent the explicitly stated values and norms that are preferred by an organization; because they are aspirations, they do not automatically produce the desired behaviors - Enacted values: represent the values and norms that actually are exhibited or converted into employee behavior - Important for managers to reduce gaps between espoused and enacted values because they can influence employee attitudes and organizational performance Basic Assumptions- represent the core of organizational culture and are unobservable; highly resistant to change FOUR FUNCTIONS OF ORGANIZATIONAL CULTURE Give members an organizational identity Facilitate collective commitment Promote social system stability- extent to which the work environment is perceived as positive and reinforcing, and the extent to which conflict and change are effectively managed Shape behavior by helping members make sense of their surroundings- helps employees to understand why the organization does what it does and how it intends to accomplish its long-term goals STRENGTH, FIT, AND ADAPTIVE PERSPECTIVES Strength perspective- predicts a significant relationship between strength of corporate culture, and long-term financial performance; strong cultures create goal alignment, employee motivation, and the appropriate structure and controls needed to improve organizational performance; critics believe that companies with strong cultures become arrogant, inwardly focused, and bureaucratic after they achieve financial success (can blind senior managers to the need for new strategic plans) Fit perspective- an organization’s culture must align with its business or strategic context; a “correct” fit is expected to foster higher financial performance Adaptive perspective- the most effective cultures help organizations anticipate and adapt to environmental changes; proactive adaptability is expected to enhance long-term financial performance VISION Vision- long term goal describing “what” an organization wants to become Often used with an adaptive culture that is promoted over time by a combination of organizational success and a specific leadership focus HOW CULTURES ARE EMBEDDED IN ORGANIZATIONS- teaching process using the following mechanisms Formal statements of organizational philosophy, mission, vision, values, and materials used for recruiting, selection, and
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