1. ChapterChapter C ULTURE, CREATIVITY, AND INNOVATION ThirteenThirteen

2. After reading this chapter you should be able to: 1.Define organizational culture. 2.Distinguish dominant cultures from subcultures. 3.Describe the role of culture in organizations. 4.Describe the four types of organizational culture identified by the double S cube.. 5. Identify various factors that lead to the creation of organizational culture. 6.Identify the tools through which organizational culture is transmitted. 7.Describe the effects of organizational culture on organizational functioning. 8.Identify the factors responsible for changing organizational culture. 9.Define creativity. 10. Describe the basic components of individual and or team creativity. 11. Define innovation. 12. Identify the basic components of innovation and the various stages of the innovation process.

3. Basic Nature of Organizational Culture (Pp. 486-488) Organizational Culture - a cognitive framework consisting of attitudes, values, behavioral norms, and expectations shared by an organization’s members Core Characteristics of Organizational Culture Sensitivity to the needs of customers and employees Interest in having employees generate new ideas Value placed on taking risks Openness of available communication operations Cultures Within Organizations - organizations typically have several cultures Subcultures - cultures existing within parts of an organization rather than entirely throughout it Dominant culture - the distinctive, overarching ‘personality’ of an organization

4. Provides a sense of identity for members Enhances commitment to the organization’s mission Clarifies and reinforces standards of behavior Organizational Culture Figure 13.3 Basic Nature of Organizational Culture (cont.) Culture’s Roles in Organizations Provides a sense of identity - people feel a part of the organization Generates commitment to the organization’s mission - people become involved in the entire organization’s work Clarify and reinforce standards of behavior - guides words and deeds of employees, thereby providing stability to behavior

5. Identifying Organizational Cultures (Pp. 488-492) Double S Cube - system of categorizing four types of organizational culture using two dimensions Sociability - degree of friendliness among an organization’s members Solidarity - degree to which people in an organization share a common understanding of job-related tasks and goals - both dimensions have a positive and negative aspect Four Organizational Cultures Networked culture - extremely friendly and light-hearted in style - people become acquainted quickly and feel part of the group Mercenary culture - focused on pulling together to complete the job - intolerant of anything that interferes with getting the job done Fragmented culture - likely to have little contact with associates - identify with their profession rather than their organization Communal culture - get along personally and professionally Points to Remember About Organizational Culture Organizations contain several cultures Organizational cultures may change over time No one culture is better than another

6. Networked Communal Fragmented Mercenary Low High Low Negative Positive Solidarity Sociability Figure 13.4 The Double S Cube

7. Formation and Maintenance of Organizational Culture (Pp. 492-495) Creation of Organizational Culture - several factors influence emergence Company founders - often possess dynamic personalities, strong values, and a clear vision about the organization Experience with the environment - some values and practices work better than others in particular industrial or market niches Contact with others - development of shared interpretations of events and actions Tools for Transmitting Culture - several mechanisms Symbols - objects that connote meanings beyond their intrinsic content Stories - illustrate key aspects of an organization’s culture - telling them introduces and reaffirms shared values Jargon - special language (e.g., slang) used in organizations that helps sustain culture Ceremonies - special events that celebrate an organization’s values Statements of principle - explicitly written to describe the principles and beliefs that guide an organization Code of ethics - statement of organization’s ethical values

8. Organizational Culture: Its Consequences and Capacity to Change (Pp. 495-499) Effects of Organizational Culture - many effects on the organization and the behavior of individuals in them - generates strong pressures on people to conform in the way they think and act - to influence performance, culture must be strong - approval or disapproval must be expressed to those who act consistently or inconsistently with the culture

9. Changing Organizational Culture - several factors necessitate cultural change Composition of the workforce - as people with different backgrounds and values enter the workforce, cultural change may take place Organizational Culture: Its Consequences and Capacity to Change (cont.) Mergers and acquisitions Culture clashes - incompatible cultures in merged organizations Psychological contract - implicit, informal understanding between an employee and the organization regarding what each will give to the other and what each will receive from the other - necessary in order to integrate newly merged cultures Planned organizational change - conscious decisions to alter the internal structure or basic operations of an organization

10. Creativity in Individuals and Teams (Pp. 499-503) Creativity - process by which individuals or small groups produce novel and useful ideas Components of Individual and Team Creativity Domain-relevant skills - specific talents, knowledge, or skills that one possesses constitute the raw materials of creativity Intrinsic task motivation - personal interest in task Creativity-relevant skills - special abilities that help people approach what they do in novel ways Break mental sets and take new positions Understand complexities Keep options open, and avoid premature judgments Use productive forgetting - ability to abandon unproductive ideas and temporarily put aside stubborn problems until new approaches can be considered Follow creativity heuristics - rules people follow to help them approach tasks in novel ways - consider the counterintuitive - use analogies

11. Skills in Task Domain Skills in Creative Thinking Intrinsic Motivation Figure 13.9 Components of Creativity Creativity in Individuals and Teams (cont.) Greatest Creativity Putting It All Together - people are most creative when they have high amounts of all the creativity components - if any one component is low, the overall level of creativity will be low

12. Low Creative Characteristics and High Challenging Job Low Creative Characteristics and Low Challenging Job High Creative Characteristics and Low Challenging Job High Creative Characteristics and High Challenging Job Condition Low High Creativity Shown on Job Highest levels of job creativity were found among employees with creative characteristics who performed challenging jobs Figure 13.10 Determinants of Creativity on the Job

13. Process of Innovation (Pp. 503-508) Innovation - successful implementation of creative ideas within an organization Components of Innovation Motivation to innovate - some organizations have the kind of cultures that encourage innovation Innovation management - skill to balance three key matters Goals - carefully linked to the corporate mission but not so specific that they tie the hands of those trying to implement them Reward systems - generously and fairly recognize contributions, but not so specific that every act is tied to a bonus Time pressures - must instill some sense of urgency without causing people to simply offer routine solutions in order to meet deadlines Resources to innovate - organizations must possess certain basic resources (e.g., human and financial) to make innovation possible

14. Process of Innovation (cont.) Stages of the Organizational Innovation Process Stage 1: Setting the agenda Mission statement - a document describing an organization’s overall direction and general goals for accomplishing that movement Stage 2: Setting the stage - narrowing broad goals into more specific tasks and gathering the resources to meet them Stage 3: Producing the ideas - individual and group creativity used to come up with new ideas Stage 4: Testing and implementing the ideas - input required from many functional areas - resources in the task domain important at this stage Stage 5: Outcome assessment - used to determine what happens to an idea

15. Motivation End Success Failure Stage 1 Setting the Agenda Stage 5 Outcome Assessment Stage 4 Testing and Implementing the Ideas Stage 3 Producing the Ideas Stage 2 Setting the Stage Progress Individual or Team Productivity Resources Skills Figure 13.12 The Process of Innovation