1. Assessing Organizations and Their Cultures
© Ed Green
Penn State University
All Rights Reserved

2. Assessing Organizations and Their Cultures
Topics
Meaning of organizational culture
Organizational Culture Assessment Instrument (OCAI)
Competing values framework
4/13/2017
Assessing Organizations and Their Cultures

3. Meaning of Organizational Culture
Every culture characterized by
Unique language
Symbols
Rules
Ethnocentricity
Organizational culture refers to values, assumptions, expectations, knowledge, and definitions
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Assessing Organizations and Their Cultures

4. “Organizational Culture” Defined
Commonly held and subscribed set of values, goals, expectations, processes, and rules that govern the operation of and relationships within an enterprise
Reflects
What is valued
Dominant leadership styles
Language
Symbols
Procedures
Routines
Exists within the broader realm of societal culture
Driven by internal and external forces
Market
Technology
Political
Process
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Assessing Organizations and Their Cultures

5. Importance of Organizational Culture in Effecting Change
Ignored
Taken for granted
Must be recognized
Frequently implicit until challenged
Enterprise culture represents the larger culture (value set)
Each sub-unit has a unique sub-culture
Derives from the large value set
Has its own unique aspects
Creates some amount of difficulty in coordinating and integrating organizational activities
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Assessing Organizations and Their Cultures

6. Characteristics For Successful Change
Practical
Timely
Involving
Quantitative
Qualitative
Manageable
Valid
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Assessing Organizations and Their Cultures

7. Assessing Organizations and Their Cultures
Stating the Challenge
Provide information solutions of exceptional quality
Meet the changing needs of the enterprise
Respond to organizational culture and its changing nature
Reduce costs
Improve productivity and profitability
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Assessing Organizations and Their Cultures

8. Organizational Culture Assessment Instrument
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Assessing Organizations and Their Cultures

9. Assessing Organizations and Their Cultures
OCAI
Tool used by organizational analysts
Assess current organizational culture
Determine desired future organizational culture
Measure the differences
Support a migration process
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Assessing Organizations and Their Cultures

10. Assessing Organizations and Their Cultures
OCAI*
Set of categories with subordinate questions
Dominant characteristics
Organizational leadership
Management of employees
Organizational glue
Strategic emphasis
Criteria of success
Two measures
Organization today
Organization tomorrow
Scoring algorithm
* Concurrently, refer to Cameron & Quinn, Figure 2.1, Pages
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Assessing Organizations and Their Cultures

11. Assessing Organizations and Their Cultures
OCAI
Assessment technique
Consistent point system
Each subcategory must add up to 100
Two passes –
“As is” organizational culture
“To be” organizational culture
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Assessing Organizations and Their Cultures

12. Assessing Organizations and Their Cultures
OCAI
Process “as is” and “to be” columns separately
Algorithm – OCAI = (Σ qi/4) A <= I <= D
In other words
Obtain the mean value for each question group
Then the difference to be processed is – Δ(abs ((OCAI as is , OCAI to be)))
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Assessing Organizations and Their Cultures

13. Competing Values Framework
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14. Assessing Organizations and Their Cultures
Value of Frameworks
Cultural strength and congruence
Holographic versus idiographic dimension
Strong-weak dimension
Internal-external focus dimension
Speed (high/low) of feedback
Degree (high/low) degree of risk
Participatory versus ethnographic dimension
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Assessing Organizations and Their Cultures

15. Eleven Dimensions of Culture*
Clarity and direction
Organizational reach
Integration
Management contact
Encouragement of individual initiative
Conflict resolution
Performance clarity
Performance emphasis
Action orientation
Compensation
Human resource development
* Gordon, 1985
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Assessing Organizations and Their Cultures

16. Competing Values Framework
Flexibility and Discretion
Clan
Shared values & goals
Cohesion
Participativeness
Individuality
“We-ness”
Adhocracy
Innovative
Pioneering
Entrepreneurship
Creativity
“Cutting edge”
Internal Focus and Integration
External Focus and Differentiation
Hierarchy
Rules
Specialization
Meritocracy
Separate ownership
Impersonality
Accountability
Market
Transactions
External constituencies
Market Mechanisms
Profitability
Market strength
Market niches
Customer bases
Stability and Control
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Assessing Organizations and Their Cultures

17. Assessing Organizations and Their Cultures
Factors and Cultures
CLAN
ADHOCRACY
HIERARCHY
MARKET
ORIENTATION
Collaborative
Creative
Controlling
Competing
LEADER TYPE
Facilitator
Mentor
Team builder
Innovator
Entrepreneur
Visionary
Coordinator
Monitor
Organizer
Hard driver
Competitor
Producer
VALUE DRIVERS
Commitment
Communication
Development
Innovation
Transformation
Agility
Efficiency
Timeliness
Consistency
Uniformity
Market share
Goal achievement
Profitability
THEORY OF EFFECTIVENESS
Human development and participation produce effectiveness
Innovation, vision, and new resources produce effectiveness
Control and efficiency with capable processes produce effectiveness
Aggressively competing and customer focus produce effectiveness
CULTURE
FACTOR
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Assessing Organizations and Their Cultures

18. Assessing Organizations and Their Cultures
Values of Cultures
CULTURE
CRITERIA
CLAN
ADHOCRACY
HIERARCHY
MARKET
LEADERSHIP
EFFECTIVENESS
MANAGEMENT
CHARACTERISTICS
EXAMPLE
JUSTIFICATION
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Assessing Organizations and Their Cultures

19. Plotting the Organizational Culture Profile
Flexibility and Discretion
CLAN
ADHOCRACY 50 40 30 20
Internal maintenance; concern for people; sensitivity to customers 10
External positioning; high degree of flexibility & individuality
Internal Focus &
Integration
External Focus &
Differentiation
External positioning; need for stability & control
Internal maintenance; need for stability & control 10 20 30 40 50
HIERARCHY
MARKET
Stability and Control
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Assessing Organizations and Their Cultures

20. Diagnosing and Changing Cultures
Process for culture change
Reach consensus on current culture
Reach consensus on desired future culture
Determine what changes will/will not mean
Identify examples
Develop an action plan
Develop an implementation plan
Key considerations
Identify small “wins”
Generate social support
Design follow-up and accountability
Provide information – SHARE!
Measure
Create readiness and acceptance – explain WHY
Conduct transition – set the stage
Implement symbolic and substantial change
Focus on process
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Assessing Organizations and Their Cultures