Measuring and Managing Organizational Culture

The role of culture in complex organizations is an important determining factor in an organization's success. However, the nature of culture remains fuzzy and elusive. To deal with this problem, an analysis technique, called the Organizational Dynamics instrument, was developed to examine, measure, and provide clear direction to executives on how to manage organizational culture. The original 95-item survey was given to line and staff employees, with management representation from chief executive officers to line supervisors. A factor analysis of the data identified 10 important factors in organizational culture, including: 1. importance of people, 2. management visibility, 3. acceptability of nonconformity, 4. commitment to training, 5. internal communication, and 6. action and change. These descriptive factors may represent an organization's strengths, weaknesses, or problem areas produced by a systematic environment scan. An organization's strengths can be used to take advantage of opportunities with little ''cultural risk'' within the strategic plan. Weaknesses, however, may require specific management attention and action planning.