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Organizational Culture
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Until recently, most executives ignored the role of organizational culture even though the greatest management thinkers such as Peter Drucker trumpeted its importance. As volatility and uncertainty have grown and as we have shifted to a knowledge economy that values innovation as well as execution, leaders are looking to this “soft” technology to make full use of employee talents and to align corporate goals with individual activity.
Gaining a good grasp of the potential of organizational culture to enable or disable a company requires executives to pull together threads of knowledge from diverse areas. No one model works in all situations. Architects of healthy organizational cultures draw on these threads to shape and adapt dynamically. That means carefully examining incentives – whether rooted in money, pride, position, recognition, or responsibility – to align individuals with corporate strategy. Despite its apparent “soft” nature, the understanding and shaping of organizational culture can draw on a hard, mathematical discipline such as social network analysis.
Culture will be affected by structural issues such as those found in the choice between degrees of hierarchy and network, by the personalities of the top leaders, and by the way performance evaluation is handled. The abstract workings of a company’s culture will profoundly affect its innovation capabilities, its ability to absorb acquisitions, achieve consistently excellent execution, minimize corruption, to and to spur teamwork and the open flow of information. The Organizational Culture topic cuts across traditional dividing lines to help you develop a rich understanding of – and an ability to foster – the right culture for your company right now.
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