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ORGANIZATIONAL CULTURE:

MEASURING AND DEVELOPING IT IN YOUR ORGANIZATION

by William H. Mobley, Lena Wang and Kate Fang

Summer 2005 The Link

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Knowledge@CEIBS

Think about organizations that are the leaders in your business or industry sector. What is it that is giving them competitive advantage? Cost? Quality? Technology? Product and process innovation? Customer service? Logistics chain? Talent? Or brand? Yes, each of these may be a key factor that helps organizations differentiate themselves. However, there is a much less obvious and less tangible factor that also can be a determining source of competitive advantage. That factor is organizational culture.

being adapted by, other people in the organization. To have a strong and effective organizational culture, you will want to be asking questions like these: Do all employees in my organization have a common understanding of our purpose, strategy and goals? What are the core values in our organization and do all have a common understanding of these values? Do we have a team spirit in our organization? Is everybody highly involved and committed? How do we define success? How do we handle agreement and disagreement? What

to strengthen your organization’s culture and effectiveness.

Why Should Leaders Care about Organizational Culture?

If you consider the organizational culture issue to be of little importance to your organization, you may want to rethink your views. Organizational culture has been extensively studied over recent decades. This research affirms a strong link between organizational culture and organizational performance. The reason is obvious: bureaucratic control could only buy employees bodies but not their hearts. A strong organizational culture, however, can be a primary generator of real motivation and commitment. In a strong and cohesive culture, the organizations core values are both intensely held...