strong culture: values are intensely held and widely shared among members; high consistency among observable artifacts, values, beliefs, and underlying assumptions
Strong Org Culture --> cohesiveness, loyalty, commitment --> Positive Outcomes (e.g. low turnover, consistent performance, less need for formal control mechanisms to guide EE behaviour)
Perf-related norms and values:
- continuous improvement
- adaptation to change
- EE latitude and responsibility
- dedication to quality
- respect for people
- teamwork
- efficient work flow
CULTURE STRENGTH MODERATED BY INDUSTRY VOLATILITY
(*SORENSON, 2002)perf reliability: consistency firm performs its org routines and degree to which routine are well adapted to env't changes (*note diff to performance)Findings
- strong corp culture facilitates reliable perf in relatively stable env'ts b/c it minimizes heterogenity in beliefs and socializes new members faster
- When volatility increases, perf does not decline. May be that firms w/ strong culture can weather short periods of volatility w/o a drop in perf
- When volatility increases, perf reliability declines; benefits from strong culture are attenuated (slower to detect changes in env'ts + don't allow deviant beliefs/exploration)
.: tradeoff b/w exploration and exploitation