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OCI Presentation

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OCI Presentation

  1. 1. Strengthening Organizations through Organizational Effectiveness OCI 1/16/2016 1
  2. 2. Copyright © 2008 by Human Synergistics International. All Rights Reserved. 2 HS Integrated Diagnostic System - OCI
  3. 3. Copyright © 2008 by Human Synergistics International. All Rights Reserved. 3 Organizational Culture (Defined) As measured by the OCI, organizational culture refers to the behavioral norms and expectations that: a) guide the way people interact with one another and approach their work, and b) reflect shared values, beliefs, and other organizational factors.
  4. 4. Copyright © 2008 by Human Synergistics International. All Rights Reserved. 4 OCI versus OCI Ideal • OCI measures behavioral norms and expectations—what it takes for you and people like yourself to “fit in” and meet expectations in your organization. – Also measures outcomes associated with culture that provide insights into the need for cultural change. • OCI Ideal measures shared values—beliefs about the behaviors that should be expected to maximize your organization’s effectiveness. – Also measures organizational readiness for change.
  5. 5. Copyright © 2008 by Human Synergistics International. All Rights Reserved. 5 How Culture is Supposed to Work Causal Factors (Levers for Change) Operating Culture (OCI Norms) Outcomes (Effectiveness) Individual Group Organizational Assumptions Espoused Values (Ideal Culture) Philosophy Mission Goals Strategies Research and development by Robert A. Cooke, Ph.D. Copyright © 1997, 2008 by Robert A. Cooke, Ph.D., Human Synergistics International. All Rights Reserved.
  6. 6. Copyright © 2008 by Human Synergistics International. All Rights Reserved. 6 How Culture Worked at Lion Nathan (1998) Current Culture (1998) N = 1192 Research and development by Robert A. Cooke, Ph.D. and J. Clayton Lafferty, Ph.D. Copyright © 1973-2008 by Human Synergistics International. All Rights Reserved. Ideal Culture (1998) N = 108
  7. 7. Copyright © 2008 by Human Synergistics International. All Rights Reserved. 7 How Culture Really Works Causal Factors (Levers for Change) Operating Culture (OCI Norms) Outcomes (Effectiveness) Individual Group Organizational Structures Systems Technology Skills/ Qualities Structures Roles Influence Decision- making Assumptions Espoused Values (Ideal Culture) Philosophy Mission Goals Strategies Research and development by Robert A. Cooke, Ph.D. Copyright © 1997, 2008 by Robert A. Cooke, Ph.D., Human Synergistics International. All Rights Reserved.
  8. 8. Copyright © 2008 by Human Synergistics International. All Rights Reserved. 8 Organization Design and Culture Mechanistic Organizations (n=18) Organic Organizations (n=6) Research and development by Robert A. Cooke, Ph.D. and J. Clayton Lafferty, Ph.D. Copyright © 1973-2008 by Human Synergistics International. All Rights Reserved.
  9. 9. Copyright © 2008 by Human Synergistics International. All Rights Reserved. 9 How Culture Works Causal Factors (Levers for Change) Operating Culture (OCI Norms) Outcomes (Effectiveness) Individual Group Organizational Structures Systems Technology Skills/ Qualities Systems Selection Training Appraisal Reinforcement Goal setting Assumptions Espoused Values (Ideal Culture) Philosophy Mission Goals Strategies Research and development by Robert A. Cooke, Ph.D. Copyright © 1997, 2008 by Robert A. Cooke, Ph.D., Human Synergistics International. All Rights Reserved.
  10. 10. Copyright © 2008 by Human Synergistics International. All Rights Reserved. 10 Reinforcement Systems and Culture Emphasis on Praise (n=12) Emphasis on Criticism (n=16) Research and development by Robert A. Cooke, Ph.D. and J. Clayton Lafferty, Ph.D. Copyright © 1973-2008 by Human Synergistics International. All Rights Reserved.
  11. 11. Copyright © 2008 by Human Synergistics International. All Rights Reserved. 11 How Culture Works Causal Factors (Levers for Change) Operating Culture (OCI Norms) Outcomes (Effectiveness) Individual Group Organizational Structures Systems Technology Skills/ Qualities Technology Job design Complexity Inter- dependence Assumptions Espoused Values (Ideal Culture) Philosophy Mission Goals Strategies Research and development by Robert A. Cooke, Ph.D. Copyright © 1997, 2008 by Robert A. Cooke, Ph.D., Human Synergistics International. All Rights Reserved.
  12. 12. Copyright © 2008 by Human Synergistics International. All Rights Reserved. 12 The Electronic Disintegration of Interpersonal Processes* Based on 31 Virtual Teams *From Balthazard, Potter, and Cooke, 2000 Research and development by Robert A. Cooke, Ph.D. and J. Clayton Lafferty, Ph.D. Copyright © 1973-2008 by Human Synergistics International. All Rights Reserved.
  13. 13. Copyright © 2008 by Human Synergistics International. All Rights Reserved. 13 How Culture Works Causal Factors (Levers for Change) Operating Culture (OCI Norms) Outcomes (Effectiveness) Individual Group Organizational Structures Systems Technology Skills/ Qualities Skills/ Qualities Leadership Communication Bases of power Assumptions Espoused Values (Ideal Culture) Philosophy Mission Goals Strategies Research and development by Robert A. Cooke, Ph.D. Copyright © 1997, 2008 by Robert A. Cooke, Ph.D., Human Synergistics International. All Rights Reserved.
  14. 14. Copyright © 2008 by Human Synergistics International. All Rights Reserved. 14 Impact of Leaders on Culture Prescriptive Leaders (n=20) Restrictive Leaders (n=19) Research and development by Robert A. Cooke, Ph.D. and J. Clayton Lafferty, Ph.D. Copyright © 1973-2008 by Human Synergistics International. All Rights Reserved.
  15. 15. Copyright © 2008 by Human Synergistics International. All Rights Reserved. 15 How Culture Works Causal Factors (Levers for Change) Operating Culture (OCI Norms) Outcomes (Effectiveness) Individual Group Organizational Structures Systems Technology Skills/ Qualities Assumptions Espoused Values (Ideal Culture) Philosophy Mission Goals Strategies Research and development by Robert A. Cooke, Ph.D. Copyright © 1997, 2008 by Robert A. Cooke, Ph.D., Human Synergistics International. All Rights Reserved.
  16. 16. Copyright © 2008 by Human Synergistics International. All Rights Reserved. 16 OCI and Outcomes Passive/ Aggressive/ OEI Outcome Measures Constructive Defensive Defensive Individual Outcomes--Positive Indices Role Clarity (n =320) .55*** -.43*** -.31*** Motivation (n =291) .61*** -.48*** -.29*** Satisfaction (n =320) .64*** -.51*** -.35*** Intention to Stay (n =463) .36*** -.31*** -.18*** Individual Outcomes--Negative Indices Role Conflict (n =291) -.46*** .61*** .53*** Job Insecurity (n =480) -.27*** .21*** .18*** Stress (n =624) -.29*** .29*** .33*** Group Outcomes Intra-Unit Teamwork and Cooperation (n =321) .36*** -.50*** -.48*** Inter-Unit Coordination (n =292) .49*** -.33*** -.21*** Departmental-Level Quality (n =321) .50*** -.37*** -.21*** Organizational Outcomes Organizational-Level Quality (n =287) .50*** -.33*** -.12* External Adaptability (n =288) .55*** -.34*** -.14* Note. Zero-order correlations are presented based on analyses carried out at the unit-level. The number of units on which particular correlations are based is specified next to the outcome scales. *p <.05. **p <.01. ***p <.001. OCI Culture Measures From Janet L. Szumal, Ph.D. (2001), Reliability and validity of the OEI. Copyright  2001 by Human Synergistics/Center for Applied Research, Inc. All Rights Reserved.
  17. 17. Copyright © 2008 by Human Synergistics International. All Rights Reserved. 17 The Culture Disconnect Individual Group Organizational Structures Systems Technology Skills/ Qualities Assumptions Espoused Values (Ideal Culture) Philosophy Mission Goals Strategies Research and development by Robert A. Cooke, Ph.D. Copyright © 1997, 2008 by Robert A. Cooke, Ph.D., Human Synergistics International. All Rights Reserved. Resources Demands
  18. 18. Copyright © 2008 by Human Synergistics International. All Rights Reserved. 18 Defensive Misattribution of Success Individual Group Organizational Structures Systems Technology Skills/ Qualities Assumptions Espoused Values (Ideal Culture) Philosophy Mission Goals Strategies Research and development by Robert A. Cooke, Ph.D. Copyright © 1997, 2008 by Robert A. Cooke, Ph.D., Human Synergistics International. All Rights Reserved. Resources Demands
  19. 19. Copyright © 2008 by Human Synergistics International. All Rights Reserved. 19 Culture Bypass Operation Individual Group Organizational Structures Systems Technology Skills/ Qualities Resources Assumptions Espoused Values (Ideal Culture) Philosophy Mission Goals Strategies Research and development by Robert A. Cooke, Ph.D. Copyright © 1997, 2008 by Robert A. Cooke, Ph.D., Human Synergistics International. All Rights Reserved. Demands
  20. 20. Copyright © 2008 by Human Synergistics International. All Rights Reserved. 20 Historical Ideal OCI Based on 560 members of 56 organizations (aggregated to organizational level) Research and development by Robert A. Cooke, Ph.D. and J. Clayton Lafferty, Ph.D. Copyright © 1973-2008 by Human Synergistics International. All Rights Reserved.
  21. 21. Copyright © 2008 by Human Synergistics International. All Rights Reserved. 21 High Reliability Organizations Ideal Culture Profiles Air Force Base Navy Yard Nuclear Power Plants Research and development by Robert A. Cooke, Ph.D. and J. Clayton Lafferty, Ph.D. Copyright © 1973-2008 by Human Synergistics International. All Rights Reserved.
  22. 22. Copyright © 2008 by Human Synergistics International. All Rights Reserved. 22 International Ideal Profiles Anglo Cluster (Australia, Canada, Ireland, NZ, South Africa, US) Germanic Cluster (Germany, Switzerland) Nordic Cluster (Denmark, Finland, Norway, Sweden) Latin European Cluster (Italy, Spain) Latin America Cluster (Chili, Columbia, Venezuela) Near Eastern Cluster (Greece, Turkey) Far Eastern Cluster (HK, Indonesia, Malaysia, Philippines, Singapore, Taiwan) Copyright © 2003 by Robert A. Cooke, Ph.D., Human Synergistics International. All Rights Reserved. Research and development by Robert A. Cooke, Ph.D. and J. Clayton Lafferty, Ph.D. Copyright © 1973-2008 by Human Synergistics International. All Rights Reserved.
  23. 23. Copyright © 2008 by Human Synergistics International. All Rights Reserved. 23 Culture Profiles of Units within U.S. Department of Defense During Operation Desert Shield Top PerformersAverage Performers Culture and Performance Research and development by Robert A. Cooke, Ph.D. and J. Clayton Lafferty, Ph.D. Copyright © 1973-2008 by Human Synergistics International. All Rights Reserved.
  24. 24. Copyright © 2008 by Human Synergistics International. All Rights Reserved. 24 Culture and Sales Growth High sales growth retail stores profiled against no sales growth stores (blue line) High Sales Growth (shaded area) No Sales Growth Key: Research and development by Robert A. Cooke, Ph.D. and J. Clayton Lafferty, Ph.D. Copyright © 1973-2008 by Human Synergistics International. All Rights Reserved.
  25. 25. Copyright © 2008 by Human Synergistics International. All Rights Reserved. 25 Culture and Newspaper Performance Effectiveness (Outcomes) Constructive Passive/Defensive Aggressive/Defensive Satisfaction 2 .576*** -.420*** -.352*** Stress 2 -.255* .245* .303** Turnover 3 -.193* .104 .292** Cooperation/Teamwork 2 .424*** -.345*** -.466*** Inter-Unit Coordination 2 .512*** -.370** -.197* Product/Service Quality 2 .455*** -.294** -.338*** Customer Satisfaction 4 .046 .143 -.294** Readership 4 .211* .104 -.066 Profit 5 .224* -.148 -.018 3 Based on organizational records collected by the Readership Institute (Northwestern University). 4 Based on surveys of newspaper readers carried out by the Readership Institute. 5 Regression residual of profit not explained by revenue and circulation strata. Analyses by: Robert A. Cooke, Ph.D., Human Synergistics, 7/2003 Notes: * p < .05; ** p <.01; *** p < .001. Organizational n = 79. One-tailed correlations with list-wise deletion of missing cases. Coefficients differ slightly with case-wise deletion. 1 Culture factor scores based on the Organizational Culture Inventory (Human Synergistics). 2 Based on the Organizational Effectiveness Inventory (Human Synergistics). Individual Level Group Level Organizational Level Strength of Cultural Norms 1
  26. 26. Copyright © 2008 by Human Synergistics International. All Rights Reserved. 26 Culture and Profitability Financial data provided by Towers-Perrin for 69 companies in various industries. Profitability 1 (Over 3 Years)  Strength of Cultural Norms2  Earnings/Sales Ratio (n = 69) Earning/Sales Volatility (n = 60) Constructive .217* -.035 Passive/ Defensive .094 -.172 Aggressive/ Defensive -.074 .338** Notes: * p < .05; ** p < .01 1 Profitability data for 1997 through 1999 (provided by Towers-Perrin); ratios are averages for the three-year period and volatility scores are standard deviations. 2 OCI Factor Scores Copyright © 2003 by Human Synergistics/Center for Applied Research Robert A. Cooke, Ph.D.
  27. 27. Copyright © 2008 by Human Synergistics International. All Rights Reserved. 27 Culture and Performance at Lion Nathan 1998 2000 20021996 2004 Net Profit After Taxes in Millions of Australian $ 70 90 110 130 150 170 190 210 230 1996 1997 1998 1999 2000 2001 2002 2003 2004 Research and development by Robert A. Cooke, Ph.D. and J. Clayton Lafferty, Ph.D. Copyright © 1973-2008 by Human Synergistics International. All Rights Reserved.
  28. 28. Copyright © 2008 by Human Synergistics International. All Rights Reserved. 28 Culture Change at Lion Nathan Levers for Change • Establish a clear sense of purpose, vision, and values • Develop the leadership capability to “achieve results in the right way” • Reinforce desired behaviors through people management systems and processes • Monitor culture Culture 1998 Culture 2004 Research and development by Robert A. Cooke, Ph.D. and J. Clayton Lafferty, Ph.D. Copyright © 1973-2008 by Human Synergistics International. All Rights Reserved.
  29. 29. Copyright © 2008 by Human Synergistics International. All Rights Reserved. 29 Differentiating Culture from Climate Climate Culture Based on perceptions Based on shared beliefs “How things are around “What’s expected (or valued here” or assumed) around here Example: In this Example: People in this organization, people are organization are expected or rewarded in proportion implicitly required to compete to the excellence of their rather than cooperate job performance Short-term implications Long-term implications Easier to change Harder to change Most managers focus only on this But outcomes are more reliably predicted by this
  30. 30. Copyright © 2008 by Human Synergistics International. All Rights Reserved. 30 Effects of Culture and Climate The Cross-Level Effects of Culture and Climate in Human Service Teams (C. Glisson & L. R. James, 2002, Journal of Organizational Behavior). • Surveyed 283 case managers from 33 child welfare and juvenile justice case management teams. • OCI used to measure Constructive and Passive/Defensive cultures. • Psychological Climate Questionnaire used to measure climate factors linked to quality and outcomes in these types of organizations by earlier studies.
  31. 31. Copyright © 2008 by Human Synergistics International. All Rights Reserved. 31 Effects of Culture and Climate The Cross-Level Effects of Culture and Climate in Human Service Teams (continued) • Confirmatory factor analysis confirmed that culture and climate scales measure distinct constructs. • Constructive cultures associated with more positive work attitudes, higher service quality, and turnover. • More positive climates associated with more positive work attitudes (not significantly related to service quality and turnover). CultureClimate Work Attitudes Service Quality Turnover
  32. 32. Copyright © 2008 by Human Synergistics International. All Rights Reserved. 32 How Culture (and Climate) Work Causal Factors (Levers for Change) Structures Systems Technology Skills/Qualities Philosophy, Mission, Goals, and Strategies Individual Group Organizational Culture (Shared Beliefs) Outcomes (Effectiveness) Norms (ideally reflecting values) Climate Measures Examples: How likely are you to stay with this organization? Would you recommend this organization’s products or services? To what extent does your organization get repeat business from clients? Objective Measures Examples: Turnover rates Financial performance Customer retention rates Objective Measures Examples: Training hours per employee Do you offer ESOPs? Do you have a formal appraisal system? Climate Measures Examples: Do you receive adequate training for your role? Is good performance recognized? To what extent are appraisals fair? OEI OEI OCI Research and development by Robert A. Cooke, Ph.D. Copyright © 1997, 2008 by Robert A. Cooke, Ph.D., Human Synergistics International. All Rights Reserved.
  33. 33. Copyright © 2008 by Human Synergistics International. All Rights Reserved. 33 Computer-Scored OCI • Contains 120 items • Available in Current and Ideal format • Norms based on 921 organizational units • HSI must process • Internet Data Collection (IDC) option available Hand-Scored vs. Computer-Scored OCI Hand-Scored OCI • Contains 120 items • Available in Current and Ideal format • Norms based on 5,658 individuals • HSI can process (norms based on 921 organizational units unless otherwise specified)
  34. 34. Copyright © 2008 by Human Synergistics International. All Rights Reserved. 34 OCI Translations (OCI Current) Hand-Scored • Japanese • German • Dutch* • French Canadian* • French European • Spanish Latin American • Spanish Castilian • Brazilian Portuguese • Bulgarian • Finnish • Hungarian* • Korean • Romanian • Serbian • Slovak Computer-Scored • Japanese* • German* • Dutch* • French Canadian • French European • Polish • Spanish Castilian • Swedish • Simplified Chinese • Traditional Chinese *Translated versions of OCI Ideal also available. IDC • Brazilian Portuguese* • German • Dutch* • French Canadian* • French European* • Hungarian* • Korean* • Polish* • Spanish Latin American*
  35. 35. Copyright © 2008 by Human Synergistics International. All Rights Reserved. 35 OCI Subgroup Breakouts Example Subgroup Breakouts: • Shifts, levels, departments, divisions, centralized/ decentralized locations, international sites General “Rules of Thumb:” • If there is any possibility that the company will ever want/need subgroup breakouts then plan and code for it. • Will need at least 5 respondents for each subgroup breakout— therefore ask at least 8 people per subgroup to complete the survey. • Response options for subgroup or custom demographic variables must be exhaustive and mutually exclusive (i.e., each person should find one, and only one, category that accurately describes his/her subgroup).
  36. 36. Copyright © 2008 by Human Synergistics International. All Rights Reserved. 36 OCI Reports OCI Standard Report • Available for all formats (i.e., hand-scored, paper computer- scored, and IDC) • Report includes OCI composite profile and group summary statistics OCI Detailed Report • Available for all formats • Report includes OCI composite profile, group summary statistics, and statistical and graphical analysis of current and ideal data • Report also includes up to 20 subgroups (more can be added for an additional charge)

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