BU398 Lecture 5: Framework of Organizational Culture
Document Summary
Corporate culture should reinforce the strategy and structural design that the organization needs to be effective within its environment. It can be assessed with 2 dimensions: the extent to which the competitive environment requires flexibility or stability, the extent to which the organization"s strategic focus and strength are internal or external. 4 categories of culture are associated with the above 2 dimensions. A culture characterized by strategic focus on the external environment through flexibility and change to meet customer needs. It encourages entrepreneurial values, norms, and beliefs that support the capacity of the organization to detect, interpret, and translate signals from the environment into new behaviour responses. It doesn"t react quickly to changes it actively creates change, by encouraging innovation, creativity, and risk taking. For example, 3m promotes individual initiative and entrepreneurship. A culture that places emphasis on a clear vision of the organization"s purpose and on the achievement of specific goals. Focuses on sales growth, profitability, market share, etc.
