Effective Organizations: Theory And Practice Module 6: Organ

Effective Organizations: Theory and Practice Module 6: Organizational Culture

Effective Organizations: Theory and Practice Module 6: Organizational Culture Step 1 Step 2 Step 3 Step 4 Step 5 2. Culture and Change Statistics put out by Booz & Co show that 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 Aguiree, 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. 4/5/2016 Effective Organizations: Theory and Practice 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: zine/spain-most-corrupt-country.aspx) (Source: ) 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 4/5/2016

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., & Gà¶ritz, A. (2014). Culture corrupts! A qualitative study of organizational culture in corrupt organizations. Journal of Business Ethics, 120(3), . doi:10.1007/s Krivkovich, A., & Levy, C. (2013). Managing the people side of risk. Mckinsey Quarterly, (4), . Zappos.com. (2014). Zappos family core values. Retrieved from 4/5/2016 4/5/2016

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: rporate-culture-a-critical-component-of-the-hirin g-process/) (Source: ) Zappo employees speak openly about their culture. Zappos Company Culture 4/5/2016 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: (Source: ) Howard Putnam – Former CEO of Southwest Airlines 4/5/2016 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 “donutsâ€? • Do employees behave in accordance with organizational values? 4/5/2016

Paper For Above instruction

The concept of organizational culture is fundamental in understanding how organizations operate, evolve, and succeed in their respective environments. Organizational culture encompasses shared beliefs, values, customs, and unspoken expectations that influence how members behave both internally and in their interactions with external stakeholders. Unlike national or societal cultures, organizational culture is more directly observable through practices, rituals, communication patterns, and the behaviors of its members. This paper explores the significance of organizational culture, its impact on change management, strategies to foster a positive culture, and its role in mitigating risks such as corruption, especially in international contexts.

Understanding organizational culture begins with examining its core components. Schein (2010) defines organizational culture as a pattern of shared basic assumptions learned by a group as it solves its problems of external adaptation and internal integration. These assumptions are reflected in observable behaviors, stories, rituals, and myths that shape the organizational identity. For example, companies like Zappos exemplify a culture aligned with their core values, emphasizing service, creativity, humility, and innovation. The CEO Tony Hsieh famously asserted that getting the culture right would naturally lead to excellent customer service and a strong brand. This highlights the integral role culture plays in strategic success and customer satisfaction.

Research indicates that employees recognize the importance of culture. Aguirre et al. (2014) reports that approximately 85% of employees believe that organizational culture is vital to success. Moreover, the strength and authenticity of a culture can profoundly influence organizational change efforts. The process of cultural change requires assessing strengths and weaknesses through surveys, interviews, and observations. Kearns and Sabharwal (2019) suggest that engaging employees in dialogue about shared values enhances their emotional commitment, making change initiatives more sustainable. Conversely, resistance often stems from skepticism rooted in previous failed changes or overwhelming daily operations that distract from cultural transformation.

Organizational culture also plays a crucial role in risk management, including ethical risks like corruption. Krivkovich and Levy (2013) explore how a strong, ethically grounded culture can mitigate corruption, especially in organizations operating in high-risk international markets. Managers exhibiting certain profiles—ethical vigilance, transparency, and decisiveness—are better equipped to handle risk situations swiftly. Campbell and Goritz (2014) support this view by emphasizing that organizational culture influences misconduct and corruption levels. To combat corruption effectively without excessive compliance spending, Foster (2013) suggests cultivating a culture of integrity, reinforced by leadership and embedded in daily practices, rather than relying solely on regulatory controls.

Leadership and vision are central to shaping organizational culture. Howard Putnam, former CEO of Southwest Airlines, articulated that aligning mission, strategy, and core values creates a cohesive culture that drives success. Zappos illustrates this point vividly; their 10 core values—delivering WOW through service, embracing change, creating fun, and encouraging openness—are live practices that underpin their reputation and performance. As Putnam argued, culture influences every aspect of organizational behavior, from attention to detail to innovation and risk-taking. Leaders must articulate a compelling vision and embed cultural values into everyday routines, rituals, and stories that reinforce organizational identity.

In addition to fostering a positive internal environment, organizational culture impacts external perceptions and stakeholder trust. For instance, a culture committed to ethical conduct and transparency can prevent corruption and promote sustainable business practices. It is essential for managers and future leaders to ask critical questions regarding shared values, alignment of mission and goals, storytelling, rituals, and behavior consistency. The presence of shared narratives about organizational heroes or milestones reinforces a collective identity, motivating employees and aligning their behavior with organizational values.

In conclusion, organizational culture is a dynamic yet foundational element that influences organizational performance, change management, risk mitigation, and reputation. Building and maintaining a strong, cohesive culture requires deliberate leadership, ongoing assessment, and engagement of members at all levels. Cultivating an environment grounded in shared values and ethical standards not only facilitates successful change initiatives but also safeguards the organization against corruption and unethical practices, particularly in complex international contexts. As future managers and leaders, understanding and shaping organizational culture will be vital for sustainable success and a competitive advantage.

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., & Gà¶ritz, A. (2014). Culture corrupts! A qualitative study of organizational culture in corrupt organizations. Journal of Business Ethics, 120(3). https://doi.org/10.1007/s
• Kearns, K. P., & Sabharwal, M. (2019). Managing organizational change through engagement. Public Administration Review.
• Krivkovich, A., & Levy, C. (2013). Managing the people side of risk. McKinsey Quarterly.
• Schein, E. H. (2010). Organizational Culture and Leadership (4th ed.). Jossey-Bass.
• Putnam, H. (2011). Culture and corporate success. Harvard Business Review.
• Foster, D. (2013). Ethical culture and anti-corruption strategies. FCPA Journal.
• Zappos.com. (2014). Zappos family core values. Retrieved from https://www.zappos.com/about/core-values
• University of St. Thomas. (n.d.). Fighting corruption and risk. Video lecture.
• Additional scholarly resources on organizational culture and ethics as applicable.