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Organizational Culture,
Creativity, and Innovation



                   Chapter 14
Learning Objectives
1.   Define organizational culture and identify the various
     functions it serves in organizations.
2.   Describe the four types of organizational culture identified
     by the double S cube.
3.   Identify the factors responsible for creating and
     transmitting organizational culture and for getting it to
     change.
4.   Define creativity and describe the basic components of
     individual and team creativity.
5.   Describe various approaches to promoting creativity in
     organizations.
6.   Identify the basic components of innovation and the
     various stages of the innovation process.

      © Copyright 2003, Prentice Hall                               2
Organizational Culture
 A cognitive framework consisting of attitudes,
 values, behavioral norms, and expectations shared
 by organization members.
 Subcultures: Cultures existing within parts of
  Subcultures
 organizations rather than entirely throughout them.
 Dominant Culture: The distinctive, overarching
             Culture
 “personality” of an organization.
 Toxic Organizational Cultures: Organizational
                       Cultures
 cultures in which people feel that they are not
 valued.
 Healthy Organizational Cultures: Organizational
                         Cultures
 cultures in which people feel they are valued.
© Copyright 2003,
                                              3
Core Organizational Values




© Copyright 2003,
                        4
Culture in Organizations




© Copyright 2003,
                           5
The Double S Cube
 A system of categorizing four types of
 organizational culture by combining two
 dimensions – sociability and solidarity. Each of the
 four resulting cultural types can be both positive
 and negative in nature.
 Sociability: A dimension of the double S cube
  Sociability
 characterized by the degree of friendliness typically
 found among members of an organization.
 Solidarity: A dimension of the double S cube
  Solidarity
 characterized by the degree to which people in an
 organization share a common understanding of the
 tasks and goals about which they are working.
© Copyright 2003,
                                             6
Four Organizational Cultures
   Networked Culture: In the double S cube, this type of
                 Culture
    organizational culture is characterized by high levels
    of sociability and low levels of solidarity.
   Mercenary Culture: In the double S cube, this type of
                Culture
    organizational culture is characterized by a low
    degree of sociability and a high degree of solidarity.
   Fragmented Culture: In the double S cube, this type
                  Culture
    of organizational culture is characterized by a low
    degree of sociability and a low degree of solidarity.
   Communal Culture: In the double S cube, this type of
                 Culture
    organizational culture is characterized by both a high
    degree of sociability and a high degree of solidarity.
    © Copyright 2003,
                                                 7
The Double S Cube




© Copyright 2003,
                    8
Assessing Organizational Culture




© Copyright 2003,
                           9
Interpreting Organizational Culture

 Companies contain
  not one, but several
  cultures.
 Organizational
  cultures tend to
  change over time.
 No one culture is
  necessarily better or
  worse than any other.
© Copyright 2003,
                              10
Creating Organizational Culture

                     Company
                      founders
                     Experience
                      with the
                      environment
                     Contact with
                      others

© Copyright 2003,
                             11
Transmitting Culture
 Symbols: Objects that say more than meets
 Symbols
 the eye
 Slogans: Phrases that capture organizational
 Slogans
 culture
 Stories: “In the old days, we used to . . .”
 Stories
 Jargon: The special language that defines a
 Jargon
 culture
 Ceremonies: Special events that
 Ceremonies
 commemorate corporate values
 Statements of Principle: Defining culture in
                Principle
 writing
© Copyright 2003,
                                      12
Famous Slogans




© Copyright 2003,
                    13
The Nike Story




© Copyright 2003,
                    14
Culture and Performance

                    During the 1990s,
                    attempts to
                    improve corporate
                    culture led to
                    sizable gains in
                    Alberto-Culver’s
                    pretax profitability.
                    The various
                    milestones in this
                    effort are identified
                    here.



© Copyright 2003,
                            15
How Culture Changes
 Composition       of the
  workforce
 Mergers and
  acquisitions
 Planned
  organizational
  change
 Responding to the
  internet
© Copyright 2003,
                             16
Creativity
                    Components of Creativity


 The process
 by which
 individuals
 or teams
 produce
 novel and
 useful ideas.

© Copyright 2003,
                                       17
Creativity-Relevant Skills
 Break mental sets and take new perspectives
  – Divergent thinking: The process of reframing familiar
              thinking
    problems in unique ways.
 Understand complexities
 Keep options open and avoid premature
 judgments
 Follow creativity heuristics
  – Creativity heuristics: Rules that people follow to help
               heuristics
    them approach tasks in novel ways.
 Use productive forgetting
  – Productive forgetting: The ability to abandon
               forgetting
    unproductive ideas and temporarily put aside stubborn
    problems until new approaches can be considered.
© Copyright 2003,
                                                   18
A Model of the Creative Process




© Copyright 2003,
                           19
Promoting Creativity
 Training   People to be Creative
  – Encourage openness to new ideas
  – Take the time to understand the problem
  – Develop divergent thinking
      Morphology: An approach to analyzing problems
       Morphology
       in which basic elements are combined in
       systematically different ways.
 Developing      Creative Work Environments

  © Copyright 2003,
                                          20
Developing Creative Environments

 Provide autonomy
 Allow ideas to cross-pollinate
 Make jobs intrinsically interesting
 Set your own creative goals
 Support creativity at high
 organizational levels
 Have fun!
 Promote diversity
© Copyright 2003,
                                 21
Innovation
 The successful implementation of
  creative ideas within an organization.
 Building blocks:
  – Motivation to innovate
  – Resources to innovate
  – Innovation management
      Goals
      Rewards
      Time Pressure
© Copyright 2003,
                                  22
The Process of Innovation




© Copyright 2003,
                        23

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Culture and creativity

  • 2. Learning Objectives 1. Define organizational culture and identify the various functions it serves in organizations. 2. Describe the four types of organizational culture identified by the double S cube. 3. Identify the factors responsible for creating and transmitting organizational culture and for getting it to change. 4. Define creativity and describe the basic components of individual and team creativity. 5. Describe various approaches to promoting creativity in organizations. 6. Identify the basic components of innovation and the various stages of the innovation process. © Copyright 2003, Prentice Hall 2
  • 3. Organizational Culture A cognitive framework consisting of attitudes, values, behavioral norms, and expectations shared by organization members. Subcultures: Cultures existing within parts of Subcultures organizations rather than entirely throughout them. Dominant Culture: The distinctive, overarching Culture “personality” of an organization. Toxic Organizational Cultures: Organizational Cultures cultures in which people feel that they are not valued. Healthy Organizational Cultures: Organizational Cultures cultures in which people feel they are valued. © Copyright 2003, 3
  • 4. Core Organizational Values © Copyright 2003, 4
  • 5. Culture in Organizations © Copyright 2003, 5
  • 6. The Double S Cube A system of categorizing four types of organizational culture by combining two dimensions – sociability and solidarity. Each of the four resulting cultural types can be both positive and negative in nature. Sociability: A dimension of the double S cube Sociability characterized by the degree of friendliness typically found among members of an organization. Solidarity: A dimension of the double S cube Solidarity characterized by the degree to which people in an organization share a common understanding of the tasks and goals about which they are working. © Copyright 2003, 6
  • 7. Four Organizational Cultures  Networked Culture: In the double S cube, this type of Culture organizational culture is characterized by high levels of sociability and low levels of solidarity.  Mercenary Culture: In the double S cube, this type of Culture organizational culture is characterized by a low degree of sociability and a high degree of solidarity.  Fragmented Culture: In the double S cube, this type Culture of organizational culture is characterized by a low degree of sociability and a low degree of solidarity.  Communal Culture: In the double S cube, this type of Culture organizational culture is characterized by both a high degree of sociability and a high degree of solidarity. © Copyright 2003, 7
  • 8. The Double S Cube © Copyright 2003, 8
  • 10. Interpreting Organizational Culture  Companies contain not one, but several cultures.  Organizational cultures tend to change over time.  No one culture is necessarily better or worse than any other. © Copyright 2003, 10
  • 11. Creating Organizational Culture  Company founders  Experience with the environment  Contact with others © Copyright 2003, 11
  • 12. Transmitting Culture Symbols: Objects that say more than meets Symbols the eye Slogans: Phrases that capture organizational Slogans culture Stories: “In the old days, we used to . . .” Stories Jargon: The special language that defines a Jargon culture Ceremonies: Special events that Ceremonies commemorate corporate values Statements of Principle: Defining culture in Principle writing © Copyright 2003, 12
  • 14. The Nike Story © Copyright 2003, 14
  • 15. Culture and Performance During the 1990s, attempts to improve corporate culture led to sizable gains in Alberto-Culver’s pretax profitability. The various milestones in this effort are identified here. © Copyright 2003, 15
  • 16. How Culture Changes  Composition of the workforce  Mergers and acquisitions  Planned organizational change  Responding to the internet © Copyright 2003, 16
  • 17. Creativity Components of Creativity The process by which individuals or teams produce novel and useful ideas. © Copyright 2003, 17
  • 18. Creativity-Relevant Skills Break mental sets and take new perspectives – Divergent thinking: The process of reframing familiar thinking problems in unique ways. Understand complexities Keep options open and avoid premature judgments Follow creativity heuristics – Creativity heuristics: Rules that people follow to help heuristics them approach tasks in novel ways. Use productive forgetting – Productive forgetting: The ability to abandon forgetting unproductive ideas and temporarily put aside stubborn problems until new approaches can be considered. © Copyright 2003, 18
  • 19. A Model of the Creative Process © Copyright 2003, 19
  • 20. Promoting Creativity  Training People to be Creative – Encourage openness to new ideas – Take the time to understand the problem – Develop divergent thinking  Morphology: An approach to analyzing problems Morphology in which basic elements are combined in systematically different ways.  Developing Creative Work Environments © Copyright 2003, 20
  • 21. Developing Creative Environments Provide autonomy Allow ideas to cross-pollinate Make jobs intrinsically interesting Set your own creative goals Support creativity at high organizational levels Have fun! Promote diversity © Copyright 2003, 21
  • 22. Innovation  The successful implementation of creative ideas within an organization.  Building blocks: – Motivation to innovate – Resources to innovate – Innovation management  Goals  Rewards  Time Pressure © Copyright 2003, 22
  • 23. The Process of Innovation © Copyright 2003, 23