The other two axes, flexibility versus stability and control, determine whether a culture functions better in a stable, controlled environment or a flexible, fast-paced environment. The two axes in the framework, external focus versus internal focus, indicate whether or not the organization’s culture is externally or internally oriented. Diagnosing and Changing Organizational Culture, Addison-Wesley, p. 47Įxhibit 4.21 The Competing Values Framework Source: Adapted from K. The CVF, shown in Exhibit 4.21, has been tested for over 30 years the effectiveness criteria offered in the framework were discovered to have made a difference in identifying organizational cultures that fit with particular characteristics of external environments. The Competing Values Framework (CVF) is one of the most cited and tested models for diagnosing an organization’s cultural effectiveness and examining its fit with its environment. A framework used to study how an organization and its culture fit with the environment is offered in the Competing Values Framework. This individual’s vision, values, and mission set the “tone at the top,” which influences both the ethics and legal foundations, modeling how other officers and employees work and behave. It is also important to note that organizational cultures are generally framed and influenced by the top-level leader or founder. 46Culture is both the personality and glue that binds an organization. Strategy and other internal dimensions of organization are also very important, but organizational culture serves two crucial purposes: first, culture helps an organization adapt to and integrate with its external environment by adopting the right values to respond to external threats and opportunities and secondly, culture creates internal unity by bringing members together so they work more cohesively to achieve common goals. Peter Drucker, an influential management guru, once stated, “Culture eats strategy for breakfast.” 45 He meant that corporate culture is more influential than strategy in terms of motivating employees’ beliefs, behaviors, relationships, and ways they work since culture is based on values. Organizational culture is considered one of the most important internal dimensions of an organization’s effectiveness criteria. Identify the fit between organizational cultures and the external environment. This is accomplished by using one or more of the following 11 mechanisms: (a) formal statements of organizational philosophy, mission, vision, values, and materials used for recruiting, selection, and socialization (b) the design of physical space, work environments, and buildings (c) slogans, language, acronyms, and sayings (d) deliberate role modeling, training programs, teaching, and coaching by managers and supervisors (e) explicit rewards, status symbols, and promotion criteria (f) stories, legends, and myths about key people and events (g) the organizational activities, processes, or outcomes that leaders pay attention to, measure, and control (h) leader reactions to critical incidents and organizational crises (i) the workflow and organizational structure (j) organizational systems and procedures and (k) organizational goals and associated criteria used for recruitment, selection, development, promotion, layoffs, and retirement of people. Changing culture amounts to teaching employees about the organization's preferred values, beliefs, expectations, and behaviors.
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