O when a company makes a strategic decision it is

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o When a company makes a strategic decision it is informed by shared beliefs and values— “everyone knows that!” o “Shared” means that people espouse the same values. In a “strong” culture the value + belief overlap between a person and the organization is extensive; a culture is weak when there is lack of consensus regarding values and beliefs Leaders have a powerful influence on culture by what behavior they are perceived to notice, and by what they reward and punish. As people come and go organizations may try new ways of doing things. When
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something works, it tends to be retained. Actions that produce negative results are, or should be, discarded. By means of this process of experimentation, retention, and rejection the ways things are done coalesce into a culture. o The danger, though, is that unchallenged beliefs and assumptions can entrap a company into dysfunctional behavior. Just because something didn’t work in the past is not a good enough reason to avoid reconsideration, because circumstances might have changed. Ordinary objects, furniture, decorations, and the condition of the building can be symbols that convey meaning about culture. o For example, what meaning is conveyed by a parking space close to the entrance that is marked “RESERVED FOR SENIOR MANAGEMENT?” o What meaning is conveyed by a sign at a different company reading “RESERVED FOR EMPLOYEE OF THE MONTH?” One can surmise pretty well how things are done at those very different firms. Those things stand for the company and its culture. Slogans usually come out of the public relations department, but workers can contribute slogans as well. o The military provides colorful examples. For instance, US marines are often called “leathernecks.” There are two competing stories about the origin of the term; nonetheless, the word conveys a feeling of rectitude and toughness. The word brings to mind the strength and dedication of a Marine—core values in the Corps. Measuring culture: o There are two ways to measure culture, inductive and deductive. The deductive method—i. e., reasoning from the general to the specific —entails using a typology that is based on a theoretical framework. In management, there is a plethora of theoretical frameworks, devised by an army of social science scholars, leaving the manager to wonder which one is correct. To create a typology, a scholar chooses two orthogonal dimensions s/he believes captures the essence of culture. Some examples are: concern for people (high vs. low) / concern for production (high vs. low) structure (flexible vs. stable) / focus (inward vs. outward) In contrast, the inductive method is to observe i.e., measure, what people are actually expected to do, and work backwards from there, inferring the values and beliefs that comprise behavioral norms.
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