Implications of corporate culture (Sathe, 1983)


TL;DR

  • All organizations have culture, and that culture has major effects on how decisions are made, how information is passed around, and the results that you deliver
  • Change the culture, change the behavior, change the results

Notes

  • There is no right way to describe culture, the only benefit from defining it is the insights and results you get from that
  • Culture = the things, sayings, doings, and feelings that are shared
  • Norms are not values
    • You can value one thing while doing another (it’s more common than not)
  • Efficiency is not effectiveness
    • You can be very efficient, but it doesn’t mean it results in a better outcome
  • What exactly is culture? See below

  • Basic organization process
    • Communication
      • certain things go without saying (a.k.a. shared values and beliefs, a.k.a. culture) e.g. You don’t need to communicate to not to be rude to a customer if it’s a shared value
      • So it’s important to know what to communicate and how openly
    • Cooperation
      • Letter of the law (following a rule word-for-word) vs spirit of the law (following the essence of the rule)
        • Sometimes adhering strictly to a rule can lead to worse outcomes
      • Cooperation among your staff cannot be forced
      • Cooperation is influenced by culture
    • Commitment
      • When someone identifies personally with a company’s objective, there’s some emotional attachment there
      • This makes employees more likely to act in the interest of the organization
    • Decision-making
      • Culture give basic assumptions adn preferences for decisions
        • e.g. a front desk worker can give a discount based on the principle of helping the customer
      • This means less disagreements, conflict, and dependency, and more efficient decision-making
    • Implementation
      • Shared values can clash
        • e.g. Customer service vs ethics The client wants an anti-religious element in their ad, but that goes against your company values, what do you do?
      • Culture gives a “compass” for decision-making, or guiding principles
      • Try to rank the values for those tricky situations
  • Some cultures have stronger influences on behavior
    • many shared values and beliefs
    • more widely shared
    • more ordered/ ranked values
  • Strength of culture
    • affected by size (smaller = stronger)
    • geographical location (more spread out = weaker)
  • Judging if someone will be a good fit when hiring

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