ChapterChapterChapterChapter

CULTURE, CREATIVITY, AND INNOVATION

ThirteenThirteenThirteenThirteen

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.

Basic Nature of Organizational Culture (Pp. 486-488)Organizational Culture - a cognitive framework consisting of attitudes,

values, behavioral norms, and expectations shared by anorganization’s members

Core Characteristics of Organizational CultureSensitivity to the needs of customers and employeesInterest in having employees generate new ideasValue placed on taking risksOpenness of available communication operations

Cultures Within Organizations - organizations typically have several culturesSubcultures - cultures existing within parts of an organization rather

than entirely throughout itDominant culture - the distinctive, overarching ‘personality’ of an

organization

Provides asense of

identity formembers

Enhancescommitment

to theorganization’s

mission

Clarifies andreinforces

standards ofbehavior

OrganizationalCulture

Figure 13.3

Basic Nature of Organizational Culture (cont.)

Culture’s Roles in OrganizationsProvides a sense of identity - people feel a part of the organizationGenerates commitment to the organization’s mission - people

become involved in the entire organization’s workClarify and reinforce standards of behavior - guides words and

deeds of employees, thereby providing stability to behavior

Identifying Organizational Cultures (Pp. 488-492)Double S Cube - system of categorizing four types of organizational

culture using two dimensionsSociability - degree of friendliness among an organization’s membersSolidarity - 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 CulturesNetworked culture - extremely friendly and light-hearted in style

- people become acquainted quickly and feel part of the groupMercenary culture - focused on pulling together to complete the job

- intolerant of anything that interferes with getting the job doneFragmented culture - likely to have little contact with associates

- identify with their profession rather than their organizationCommunal culture - get along personally and professionally

Points to Remember About Organizational CultureOrganizations contain several culturesOrganizational cultures may change over timeNo one culture is better than another

Networked Communal

Fragmented Mercenary

Low

Hig

h

High

Low

Negative

Positive

Solidarity

Soc

iab

ilit

y

Figure 13.4The Double S Cube

Formation and Maintenance of Organizational Culture (Pp. 492-495)

Creation of Organizational Culture - several factors influence emergenceCompany founders - often possess dynamic personalities, strong

values, and a clear vision about the organizationExperience with the environment - some values and practices work

better than others in particular industrial or market nichesContact with others - development of shared interpretations of

events and actionsTools for Transmitting Culture - several mechanisms

Symbols - objects that connote meanings beyond their intrinsic contentStories - 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 cultureCeremonies - special events that celebrate an organization’s valuesStatements of principle - explicitly written to describe the principles

and beliefs that guide an organizationCode of ethics - statement of organization’s ethical values

Organizational Culture: Its Consequences and Capacityto Change (Pp. 495-499)

Effects of Organizational Culture - many effects on the organization and thebehavior 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 actconsistently or inconsistently with the culture

Changing Organizational Culture - several factors necessitate cultural changeComposition 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 acquisitionsCulture clashes - incompatible cultures in merged

organizationsPsychological contract - implicit, informal understanding

between an employee and the organization regardingwhat each will give to the other and what each willreceive 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

Creativity in Individuals and Teams (Pp. 499-503)

Creativity - process by which individuals or small groups produce novel anduseful ideas

Components of Individual and Team CreativityDomain-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 peopleapproach what they do in novel waysBreak mental sets and take new positionsUnderstand complexitiesKeep options open, and avoid premature judgmentsUse productive forgetting - ability to abandon unproductive

ideas and temporarily put aside stubborn problemsuntil new approaches can be considered

Follow creativity heuristics - rules people follow to helpthem approach tasks in novel ways- consider the counterintuitive- use analogies

Skills inTask

Domain

Skills inCreativeThinking

IntrinsicMotivation

Figure 13.9Components of Creativity

Creativity in Individuals and Teams (cont.)

GreatestCreativity

Putting It All Together - people are most creative when they have highamounts of all the creativity components- if any one component is low, the overall level of creativity will be

low

Low CreativeCharacteristics

and HighChallenging Job

Low CreativeCharacteristics

and LowChallenging Job

High CreativeCharacteristics

and LowChallenging Job

High CreativeCharacteristics

and HighChallenging Job

Condition

Low

HighC

reat

ivit

y S

how

n o

n J

ob

Highest levels of jobcreativity were found among

employees with creativecharacteristics who

performed challenging jobs

Figure 13.10Determinants of Creativity on the Job

Process of Innovation (Pp. 503-508)

Innovation - successful implementation of creative ideas within an organization

Components of InnovationMotivation to innovate - some organizations have the kind of

cultures that encourage innovation

Innovation management - skill to balance three key mattersGoals - carefully linked to the corporate mission but not so

specific that they tie the hands of those trying toimplement them

Reward systems - generously and fairly recognizecontributions, but not so specific that every act istied to a bonus

Time pressures - must instill some sense of urgency withoutcausing people to simply offer routine solutions inorder to meet deadlines

Resources to innovate - organizations must possess certain basicresources (e.g., human and financial) to make innovation possible

Process of Innovation (cont.)

Stages of the Organizational Innovation ProcessStage 1: Setting the agenda

Mission statement - a document describing an organization’soverall direction and general goals for accomplishingthat movement

Stage 2: Setting the stage - narrowing broad goals into more specifictasks and gathering the resources to meet them

Stage 3: Producing the ideas - individual and group creativity usedto come up with new ideas

Stage 4: Testing and implementing the ideas - input required frommany functional areas- resources in the task domain important at this stage

Stage 5: Outcome assessment - used to determine what happens to an idea

Motivation

End

EndSuccess

Failure

Stage 1

Settingthe

Agenda

Stage 5

OutcomeAssessment

Stage 4

Testing andImplementing

the Ideas

Stage 3

Producingthe

Ideas

Stage 2

Settingthe

Stage

Progress

Individualor Team

Productivity

Resources

Skills

Figure 13.12The Process of Innovation