Vision is Not Short Sighted The Influence of Organizational Culture

Organizational Culture Shared Values and Beliefs Leading to Norms Guiding Task-Related and Interpersonal Behaviors – “What’s expected around here” – “How things are done around here.” Vision is Not Short Sighted

Historical Perspective: The Cultural / Institutional Level of Organizations System of Values Defining its Functions Patterns Spelling out these Values with respect to: Adaptation to the Supersystem (e.g., Customers) Internal Integration of Subsystems (e.g., Members) Attainment of Organizational Goals Technical Lore, Ideology, Ritual Symbolization Norms Guiding the Activities of Participants Talcott Parsons, 1956, Administrative Science Quarterly Vision is Not Short Sighted

The Organization’s Value System…  Must reflect that of the larger System  Must Legitimize its Goals in terms of Functional Significance  Must Legitimize the Primacy of its Goals over other Interests  Can include “Money Return” as a Measure and Symbol of Success [But Not as the Primary Goal – Profit Making is not by itself a Function on Behalf of the Larger System] Vision is Not Short Sighted

Organizational Culture Inventory TM (OCI)  Measures the culture of organization in terms of “what’s expected around here”  [Norms: current operating culture]  Measures the preferred culture in terms of “what should be expected”  [Values: ideal culture] Vision is Not Short Sighted

INTEGRATION Systems Effectiveness Supersystem Perspective (e.g., Customers) System Perspective (e.g., Organization) Subsystem Perspective (e.g., Members) ADAPTATION PROFIT Vision is Not Short Sighted

Ideal Culture (Values) Causal Factors (Levers for Change) Operating Culture (OCI Norms) Outcomes (System Effectiveness) Supersystem (Customers) Organizational (Profitability) Subsystem (Members) Structures Systems Technology Skills/ Qualities Mission and Philosophy Vision is Not Short Sighted

INTEGRATION Systems Effectiveness Supersystem Perspective (e.g., Customers) System Perspective (e.g., Organization) Subsystem Perspective (e.g., Members) ADAPTATION PROFIT X X Vision is Not Short Sighted

Ideal Culture (Values) Causal Factors (Levers for Change) Operating Culture (OCI Norms) Outcomes (System Effectiveness) Supersystem (Customers) Organizational (Profitability) Subsystem (Members) Structures Systems Technology Skills/ Qualities Mission and Philosophy Vision is Not Short Sighted

The Culture-Performance Connection Conclusion: Organizational Culture is related to Systems Effectiveness Next Question: But how about across Countries?

Preferred Organizational Cultures (Values) Anglo Cluster Latin European Cluster Latin American Cluster Near Eastern Cluster Nordic Cluster Far Eastern Cluster Germanic Cluster Vision is Not Short Sighted

Organizational Culture and World Competitiveness

The Culture-Performance Connection Organizational Performance in Anglo Countries…...is promoted by: Constructive Preferred Cultures Positive Societal Values (e.g., Low Power Distance) …but suppressed by: Aggressive Preferred Cultures Negative Societal Values (e.g., Short-Term Orientation) Vision is Not Short Sighted