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Trends in Organizational Culture

Ron McGary

March 12, 2016

LL561: Organizational Cultures and Systems

Dr. Scott Kerth

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Trends in organizational development is important to me because of my passion for

leadership. Leadership can come in many forms and strengths. An organization can have weak

leadership or strong leadership. It is the intent to exemplify the need for strong cultural

leadership in organizations.

It is important to point out trends in organizational development in today’s global economy.

The relevance of cultural understanding and having the ability to recognize the impact of cultural

change is very important. Leadership must change with culture to prevent organizational failures

(Schein, 2010). The 21st century leader must be proactive in solving problems. Leaders must

recognize their own cultural climate to solve these problems. An organization must be a learning

culture to recognize their cultural surroundings. Looking ahead into the 21st century companies

will need strong cultures to build pathways for excellence. Studying and learning about

leadership is variable, which means leadership is always changing (Gogheri, A. S., Nawaser, K.,

Vesal, S. M., Jahanshahi, A. A., & Kazi, R. , 2013). Some aspects of 20th century leadership are

applicable to the 21st century, but not all. As trending culture changes over time leadership styles

will change. The ability to recognize cultural change, developing learning cultures, and the

ability to proactively solve complex problems are the trends of organizational culture.

As we move into a deeper global economy, interaction with other cultures is becoming more

critical. “We basically do not know what the world of tomorrow will really be like, except that it

will be really different, more complex, more fast-paced, and more culturally diverse (Schein, pg.

365, 2010).” If organizations are to change with culture then we must learn the new culture and

adapt to it in order to survive in a global environment. Cultural knowledge and behaviors are

transmitted from generation to generation, and improved ideas and practices replace those that

are less effective (Kim, K., Jeon, J., & Park, Y., 2014). Leaders must be able to recognize these

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changes. If there is a decline in sales and growth within an organization the proactive thinker

must take appropriate action to lead the company into a new direction to prevent failure. The

global economy impacts our culture by what is called the “cultural flow” (Hines, A., 2008).

Cultural flow is the use of media in combination with young adults: the “millennials”. The

millennials will assimilate to new cultures quicker than in previous generations. The expectations

are to envision new ideas including products and services distributed from practically every

corner of the planet. An early indicator is the growing numbers of teens and young adults who

think of themselves as global or planetary citizens. We are confident that as these youth move

into the workforce, they will accelerate the rate of cultural flow through having been immersed

in different cultures from a much younger age (Hines, A., 2008). These “millennials” will have

an advantage in the workforces because of global communications. Learning new culture

eventually will be second hand nature for them as they continue in the workforce.

A learning culture consists of a community of workers instilled with a "growth mindset”

(Grossman, R. J., 2015). People not only want to learn and apply what they've learned to help

their organization, they also feel compelled to share their knowledge with others. This also refers

to Schein’s philosophy of shared beliefs within organizations. Shared beliefs and values will

strengthen an organization (Schein, 2010). At New York Life Insurance Company in New York

City for instance, supporting a learning culture means "trying to make each moment about

learning, about establishing the intention to learn in every interaction, every relationship and

every chance to lead," says Michael Molinaro, Vice President of Talent Management (Grossman,

R. J., 2015).

Corporate learning involves more than finding the right mix of classes and seminars; it's about

nurturing a mindset. In some cases, leaders are not currently investing their money to create an

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environment that is thought provoking. As a result, leaders are missing out on the competitive

advantage realized by SAP, Apple, American Express and Bridgewater Associates. These

companies have at least two things in common: “They're all standouts in their respective sectors

and they nurture top-to-bottom learning cultures (Grossman, R. J., 2015)”.The research linking

learning to business success is compelling. "Companies that learn fastest and adapt well to

changing environments perform the best over time," says Edward Hess, a professor of business

administration at the University of Virginia's Darden School of Business. Jobs are disappearing

due to the increasing use of technology and automation and the positions that are emerging

require quick thinking, creativity, and high social and emotional intelligence, Hess says, making

the ability to learn more important than ever. Companies with nimble learners can react quickly

to disruptions, adapt to meet the demands of a changing business climate, and harness a wealth

of ideas for new products, services and processes (Grossman, R. J., 2015). “The single biggest

driver of business impact is the strength of an organization's learning culture”, says Josh Bersin,

principal and founder of Bersin by Deloitte in Oakland, California (Grossman, R. J., 2015).

Only around one in ten companies have a true learning culture defined as one that supports an

open mindset, an independent quest for knowledge, and shared learning directed toward the

mission and goals of the organization, according to CEB research (Grossman, R. J., 2015).

Twenty percent of employees demonstrate effective learning behaviors. So in terms of

investment and return, there seems to be a clear disconnect. According to Jennifer Dearborn,

Senior Vice President and Chief Learning Officer at SAP America Inc. in Palo Alto, California,

CEO’s are not applying the same rigorous analysis to learning as they do to other business

functions. So learning is not clearly taking place in other organizations. Are employees learning

what they need to in order to excel at the company? And does your organization support their

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efforts? Human Resource roles no longer call just for providing courses and seminars

periodically; it involves supporting active and independent learning all the time. Once an

organization has committed to developing a learning culture, feedback will be needed to improve

the process. At this point, the learning leader will again enhance their leadership value and

ultimately sustain the learning culture within the organization (Schein, 2010). In vibrant learning

cultures such as UPS, American Express, Bridgewater Associates, Container Store, and C-suite

executive’s leaders within the business are committed to learning. They model behaviors that

communicate their belief that being smart is no longer about how much you know or how adept

you are at avoiding mistakes. Instead, it's about being a critical thinker, a motivated learner and

an effective collaborator to further the business, thereby cultivating a "growth mindset." Inner

motivation is key (Grossman, R. J., 2015). Ideally, it is part of every employee's DNA, to drive

workers in real time to expand their knowledge, learn from one another and contribute to the

mission of the organization (Schein, 2010).

Learning leaders must have faith in people and realistically have the mindset that human

nature is good (Schein, 2010). Other trends include hiring smart and teachable hiring managers

that know how to evaluate candidates for learning. This can be accomplished using structured

interviews, assessments and behavioral interviews, Dearborn says. "Ask behavioral questions

like; do you seek and welcome demanding tasks? Are you willing to take calculated risks? Look

for people who are intrinsically driven, who want to figure out what needs to be done, find a way

to do it and do it before you even know about it. Teach “how” not "what." For example,

Bridgewater Associates LP, with fifteen-hundred employees, hires the best and brightest talent

from Ivy League schools. Once on board, recruits spend eighteen months being acclimated to the

organization's learning culture. "It takes that much time to transform a superstar into an

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independent thinker," Hess says. At American Express, employees are repeatedly encouraged to

reflect on what they learn, and to apply it to their work and then pass it along to others

(Grossman, R. J., 2015).

The impact of building a strong cultural environment within organizations for the future could

mean the difference between profit and loss. There needs to be a solid commitment from all

employees with cultural differences for future success. Studies have shown that the commitment

of the members towards organizational culture values is an essential mechanism to increase

productivity and to move towards optimal performance (Gogheri, A. S., Nawaser, K., Vesal, S.

M., Jahanshahi, A. A., & Kazi, R., 2013). But the relationship between organizational culture

and performance is more complex than can be explained by a simple relationship. Some experts

of management and organization believe that in order to affect the organizational performance

the organizational culture should be a strong culture in the beginning. A strong culture increases

the commitment to the organization and increases the mutual relationship between employees’

goals and organizational objectives. This is an important factor for increasing productivity and

the level of overall performance. The strong values of organizational culture will affect

performance and productivity. The employee’s cultural commitment to the organization cannot

be so severe that it prevents the development of new cultural environments and therefore the

organization will not be able to change its behavioral methods as the environment changes.

These mutual understandings may reduce talent for environmental learning (Gogheri, A. S.,

Nawaser, K., Vesal, S. M., Jahanshahi, A. A., & Kazi, R., 2013).

As a leader in general they must know the three elements of culture needed to possess a basic

understanding of culture development. The three levels of culture are: artifacts, espoused values

and beliefs, and basic underlying assumptions. Artifacts include items that are seen or used. For

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example, a written procedure for management operations and the delivery method would be

included as an artifact. The ideals, goals, values, and aspirations would include the espoused

beliefs and values. For example, in a group setting individuals working on a problem will have

suggestive ideals and rational to adopt for the rest of the group. The individual influencing will

be the leader in most cases, because they are the early adopters for their ideals. Until that

solution is put into action and proven, others in the group will not necessarily adopt it right away

(Schein, 2010). Basic underlying assumptions are the repeated actions within a group. Once the

assumptions are adopted and used throughout a process, it basically becomes second nature for

the remaining time. Anything outside of those actions will be undeniably inconceivable. For

example, it is inconceivable for an engineering firm to design and produce a tool that is unsafe.

This would violate the basic underlying assumptions of what has been done in the past. This is

what is called the preferred solution among several basic alternatives (Schein, 2010).

Cultural change is an evolutionary process (Schein, 2010). Basic assumptions are to be kept

over a period of time as well as shared values. Metaphorically speaking the behaviors and

character of the basic assumptions may change. These new norms may take the form of not being

responsible or caring for the right thing. It would be up to the 21st century leader to recognize and

develop guidance and direction to avoid these traps.

Once the leader does recognize the importance of cultural change it would be necessary to

change that culture into a productive environment. There are proven methods of assessing the

culture within an organization. Before assessing an organization it would be professional to ask

for permission to do an assessment in the first place (Schein, 2010). Culture assessments are

appropriate for several uses as long as they are executed well (Kerth, n.d.). Culture surveys are

not appropriate when permission is not given to conduct a survey. There are ethical issues that

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need to be adhered to as a professional. “The outside professional whether consultant or

ethnographer, must make a separate assessment and sometimes limit his or her own interventions

to protect the organization (Schein, 2010, pg. 186)”. Schein is simply implying that the person

performing the culture analysis might be the best professional, but there are limitations to what

they are given permission to do. It would be unethical to have access into a culture setting more

than what is necessary and make it public information.

Assessments are useful for determining the specific dimensions that correlate to performance

(Schein, 2010). Measuring the performance is the basis in implementing an assessment. So why

do organizations want an assessment in the first place? If performance is hurting then it is a clear

indication the bottom line is being hurt as well. Culture surveys are appropriate for developing an

organizational profile based on the employees’ perceptions for use in stimulating deeper cultural

analysis (Schein, 2010). Employees behave and react based on their perceptions (Brown, 2016).

Learning their perceptions may disclose subcultures that were not known. Some culture surveys

are appropriate for preparing organizations for mergers, acquisitions, and joint ventures by

comparing the organizations to each other based on selected dimensions and ascertaining

whether potentially disruptive subcultures exist which will be different through the dimensions

identified by the survey (Schein, 2010). There are two common assessments used in industry to

determine the cultural element within an organization: the Organizational Culture Inventory and

the Dennison survey.

The OCI (Organizational Culture Inventory) is a good tool to have when measuring

employees to have certain skills and mental attitudes toward the company. The OCI measures the

performance of individuals or groups to clearly indicate if they are a fit for the organization

(Human Synergistics, 2012). The owner of the organization would want a team that works

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together and shares their vision for the company. The OCI helps the owner, or whoever is

initiating these surveys, to aid them in creating a company as they see it. If there are areas of

concern that could affect the organization, the OCI would identify those problems areas and

provide a reliable solution. This is better than releasing those individuals initially however, if

those employees cannot be molded within the company, then that may be the organizations last

choice. One huge drawback for the OCI is that the survey does require an outsider to help

interpret the results (Schein, 2010). The selection of the outsider must be considered

thoughtfully.

     Denison’s survey focuses on key dimensions and correlating those dimensions to the

performance of an organization. In comparison to the OCI, Denison measures the performance of

individuals to indicate a fit within the company and its operating culture.  For example, the

Denison survey generalizations are mission, consistency, involvement, and adaptability. On the

other hand, the OCI dimensions are constructive styles, aggressive and defensive styles, and

passive and defensive styles. “The OCI is the showing of the shared values guiding how

members of an organization interact and work (Schein, 2010, pg. 170)”. In comparison to the

Denison survey, it measures the operating culture. In addition, the Denison measures the purpose

of the organization, where it is heading, and how it will get there. This would involve the

strategic direction, vision, and how the employees are involved (Human Synergistics

International, 2012). Comparative data will give direction in determining whether a company is

strong enough to build from their own culture and whether to add other cultures within the

organization and still be able to still maintain minimal disruption.

Trends in organizational culture are definitely moving toward a learning culture. With the

ever-expanding global economy and the ability to communicate across the globe in seconds,

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these factors amplify the awareness of cultural diversity. Leaders are increasingly mindful of

these environments and desire to make change for organizational stability.

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References

Brown, Sherle., (2016). The value of culture Assessment. https://lewisuniversity.blackboard.com/webapps/discussionboard/do/message?action=list_messages&forum_id=_206957_1&nav=discussion_board_entry&conf_id=_140005_1&course_id=_136518_1&message_id=_3368617_1#msg__3368617_1Id

Gogheri, A. S., Nawaser, K., Vesal, S. M., Jahanshahi, A. A., & Kazi, R. (2013). Which organizational culture moves towards organizational excellency. Asian Social Science, 9(11), 221-236. Retrieved from http://ezproxy.lewisu.edu/login?url=http://search.proquest.com/docview/1445136542?accountid=12073

Grossman, R. J. (2015). A culture of learning. HRMagazine, 60(4), 36-40,42. Retrieved from http://ezproxy.lewisu.edu/login?url=http://search.proquest.com/docview/1679859856?accountid=12073

Hines, A. (2008). Global trends in culture, infrastructure, and values. The Futurist, 42(5), 18-23. Retrieved from http://ezproxy.lewisu.edu/login?url=http://search.proquest.com/docview/218615344?accountid=12073

Human Synergistics International (2012). Organizational Culture Inventory: Identify your organization’s culture and learn how to turn it into a competitive advantage. Retrieved from http://www.humansynergistics.com/docs/default-source/product-info-sheets/oci-product-info-sheet.pdf?sfvrsn=10

Kerth, S. (n.d.). Cultural analysis week 3 lecture notes [PowerPoint slides]. Retrieved from https://lewisuniversity.blackboard.com/webapps/blackboard/content/listContent.jsp?course_id=_136518_1&content_id=_2311713_1&mode=resetq

Kim, K., Jeon, J., & Park, Y. (2014). Culture as an aggregate of individual differences. Behavioral and Brain Sciences, 37(3), 262-3. doi:http://dx.doi.org/10.1017/S0140525X13002896

Schein, E. (2010). Organizational culture and leadership. San Francisco: Jossey-Bass.