Effective Organizations Theory and PracticeModule 6 Orga.docx

Effective Organizations: Theory and Practice
Module 6: Organizational Culture
Page 1 of 4ORG502 - Module 6: Organizational Culture
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2. Culture and Change
Statistics put out by Booz & Co showthat organizations need to
recognize their cultures as an essential factor in the way they do
business
(Aguirre, Alpern, Hull, & Von Post, 2014). Their data from the
Culture and Change Management Survey (more than 2,200
employees
took this survey) revealed the responses you can read in the
interactive activity below.
Click on the tabs below to read the facts discovered in the
Culture and Change Management Survey conducted by Aguire,
Alpern, Hull,
and Von Post.

According to Aguiree et al., “When companies tap into the
energy and emotional commitment within their cultures, change
initiatives
are far more sustainable” (2014, p. 44). Changing culture does
not come easy to organizations. There are many barriers to
overcome.
Other times, past changes have failed; employees are skeptical
about “more” change. Some employees believe there is no
capacity to
change. At times, daily operations are overwhelming and
distract from the mandate to change culture.
However, statistics show that organizations that embrace the
culture change can increase their businesses two-fold (Aguiree
et al., 2014).
But what are the steps to ensure a needed change in corporate
culture happens? Click on the tabs in this interactive activity.
Click on the tabs below. Each tab represents a step to guide you
when you are responsible for implementing the corporate
change
mandate. These steps are summarized from research (Aguiree et
al., 2014).
Understand the organization’s cultural strengths and
weaknesses. Do this by conducting an assessment study via
interviews, surveys
and observations.
About 85% 96% 60%
About 85% of the 2,200 employees believe that an
organization’s
culture is critical for their organization’s success.

of 2ORG502 - Module 6: Organizational Culture
3. Culture, Corruption, and Risk
In today’s society, we see a lot of corruption in organizations.
According to Krivkovich and Levy (2013), there is a way that
culture can
help reduce this corruption especially for organizations with a
lot at risk, such as those who buy new businesses or enter into
new
markets. They have found that managers exhibiting certain
profiles will be better at dealing with risk situations quickly and
efficiently.
Be sure to read the required article by Krivkovich and Levy to
learn more. Then read the article by Campbell and Goritz to get
another
viewpoint.
View this very interesting video that talks about corruption and
risk, created by the University of St. Thomas, Minnesota:

(Source: http://www.eyeonspain.com/spain-maga
zine/spain-most-corrupt-country.aspx)
(Source: https://www.youtube.com/watch?v=fadwSsb-9v8 )
Doing business internationally is challenging. Recent headlines
alleging bribery and corrupt business conduct in Latin America,
Eastern Europe, Asia and Africa underscore the risks. How can
companies create an organizational culture against corruption
without excessive spending on compliance? FCPA attorney
Dulce Foster from Fredrikson & Byron answers this question.
“Ethical
Insights” is hosted by Ron James, president and CEO of the
Center for Ethical Business Cultures (CEBC).
Ethical Insights: Fighting Corruption Without Breaking the
Bank
Check Your Understanding
Choose the best answer in the following quiz to check
your understanding of this module.
Click Here to Begin
References

Aguirre, D., Alpern, M., Hull, K., & Von Post, R. (2014). Use
culture to pave the way for change. Chief Learning Officer,
13(4), 44-46.
Campbell, J., & Göritz, A. (2014). Culture corrupts! A
qualitative study of organizational culture in corrupt
organizations. Journal of
Business Ethics, 120(3), 291-311. doi:10.1007/s10551-013-
1665-7
Krivkovich, A., & Levy, C. (2013). Managing the people side of
risk. Mckinsey Quarterly, (4), 123-128.
Zappos.com. (2014). Zappos family core values. Retrieved from
http://about.zappos.com/our-unique-culture/zappos-core-values
1. Culture and the Organization
Culture is a term often used to describe the unique aspect of a
country’s history, their celebrations, common practices, values
and shared

beliefs along with associated practices. When the term culture is
applied to an organization, there are many similarities.
Organizational
culture is comprised of shared beliefs, core values and both the
spoken and unspoken expectations of its members. It is not
always easy
to identify the practiced values in an organization, even after
reading their purpose and mission statements. However, we can
assess the
culture of an organization through their customs and in
particular how their members act toward other members within
the
organization. Organizational culture is also reflected in how an
organization interacts with its customers/clients and with other
organizations.
Many organizations post their core values on their website.
However, there sometimes is a disconnect between what is
expressed as
published values and the observed culture of the organization.
Some organizations stand out as “living their values.” One
organization
that lives their values is Zappos. View the video to learn how
published core values are aligned with the observed culture.
(Source: http://coloradohradvice.com/2013/11/co
rporate-culture-a-critical-component-of-the-hirin
g-process/)
(Source: https://www.youtube.com/watch?v=5CcLIPaUz3E )
Zappo employees speak openly about their culture.
Zappos Company Culture

of 4ORG502 - Module 6: Organizational Culture
Zappos.com is one of the most well-known companies putting
the culture at the top of the list. The CEO of Zappo.com, Tony
Hsieh,
stated, “Our whole belief is that if you get the culture right,
most of the other stuff like delivering great customer service or
building a
long-term enduring brand will just happen naturally on its own”
(Aguirre et al., 2014, p. 44). Hsieh believes that the
company’s culture
is the backbone of their organization and is its reason for its
success.
Culture directly relates to the organizational mission, vision,
ethics and strategy. Howard Putnam is the former CEO of
highly successful
Southwest Airlines. His thoughts and examples of mission,
strategy and culture are central to how organizations focus on
driving
success. View this inspiring video about how vision and brand
impact organizational culture.
The culture at Zappos.com is based on 10 core values. They
are:
Deliver WOW through service
2. Embrace and drive change
3. Create fun and a little weirdness
4. Be adventurous, creative, and open-minded

5. Pursue growth and learning
6. Build open and honest relationships through communication
7. Build a positive team and family spirit
8. Do more with less
9. Be passionate and determined
10. Be humble (Zappos.com, 2014, para. 2).
1.
(Source: http://www.zappos.com/)
(Source: https://www.youtube.com/watch?v=EyrJsekYH1A )
Howard Putnam – Former CEO of Southwest Airlines
What you have just viewed is how the ability of leaders and
managers to help their employees adapt to the external
environment can be
facilitated through visionaries like Howard Putnam. What you
have observed in these two videos is the impact that leaders
have on
corporate culture. Corporate culture is the way an organization
behaves, which involves degrees of attention to detail,
innovation, and
risk-taking.
Organizations that have a thoughtful mission, clear strategy,
and well-defined goals and objectives, along with positive
values and ethics,

have a solid foundation on which to build a successful
organization. Culture matters! As future managers and leaders,
your
understanding of culture is critical to the health of the
organization from both a competitive advantage and human
resource perspective.
Howard Putnam talks about how organizational culture is
influenced by visionary decisions.
As you think about organizations, ask these questions:
• Are the organization’s values that everyone shares?
• Are the vision, mission and goals of the organization aligned
and known
by employees?
• Are there stories that everyone shares about the organization’s
history or
past leaders?
• Are there rituals that occur in the organization such as athletic
teams,
award ceremonies or Friday “donuts”?
• Do employees behave in accordance with organizational
values?

Effective Organizations Theory and PracticeModule 6 Orga.docx

Effective Organizations Theory and PracticeModule 6 Orga.docx

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