Week 5 - Assess an Organization's Structure and Propose Changes
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Measuring organic and mechanistic cultures Reigle, Ronda F . Engineering Management Journal : EMJ; Huntsville Vol. 13, Iss. 4, (Dec 2001): 3-8.
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ABSTRACT
Knowledge workers in today's high-technology organizations require environments with organic characteristics. To
retain highly skilled knowledge workers, managers need to determine whether their organizations exhibit organic
or mechanistic cultures. Culture is an important factor in successful technology implementation, innovation,
mergers, acquisitions, job satisfaction, organizational success, and team effectiveness. This paper discusses
organic and mechanistic organizational cultures and the organizational culture assessment (OCA) tool. The tool
gives an organization's culture type and a numerical score for each of 5 culture elements. Survey results indicate
that the OCA adequately measures organizational culture. FULL TEXT
Headnote
Abstract
Headnote
Knowledge workers in today's high-technology organizations require environments with organic characteristics. To
retain highly skilled knowledge workers, managers need to determine whether their organizations exhibit organic
or mechanistic cultures. Culture is an important factor in successful technology implementation, innovation,
mergers, acquisitions, job satisfaction, organizational success, and team effectiveness. This article discusses
organic and mechanistic organizational cultures and the organizational culture assessment (OCA) tool. The tool
gives an organization's culture type and a numerical score for each of five culture elements. Survey results
indicate that the OCA adequately measures organizational culture.
Introduction
Some of the challenges that make organizational culture significant today include downsizing, budget cuts,
globalization, and the rapid rate of technological improvements. Kanter (1983) states that to manage change in an
organization requires that people find their stability and security in the culture and direction of the organization.
Studies show that the type of culture an organization exhibits affects employee retention. One study indicated that
new employees voluntarily stayed 14 months longer in cultures emphasizing interpersonal relationship values than
in cultures emphasizing work task values (Sheridan, 1992).
Denison performed a study indicating that companies with a participative culture reap a return on investment that
averages nearly twice as high as in firms with less efficient cultures (Denison, 1984). An effective organizational
culture is a key component influencing an organization's ability to compete and to succeed long term (Morris,
1992). Lack of insight into culture leaves managers vulnerable to forces of evolution and change which they may
not understand and which they may have difficulty controlling (Schein, 1992).
Existing organizational culture measurement tools measure one element of culture or certain organizational
characteristics. However, they are not based on all culture elements as defined in engineering management
literature.
The purpose of this study is to develop a tool to measure culture as defined by the leading authors in engineering
management literature. The OCA measures organizational culture and provides a five-dimensional score, one for
each of five culture elements.
Culture Definitions
Organizational culture is defined by numerous authors. Some of the significant definitions related to engineering
management are:
Ott (1989) and Westbrook (1993) define organizational culture as a function of language, artifacts and symbols,
patterns of behavior, basic underlying assumptions, and subcultures.
Culture is formally defined by Schein (1992, p. 12) as "a pattern of shared basic assumptions that the group
learned as it solved its problems of external adaptation and internal integration, that has worked well enough to be
considered valid and, therefore, to be taught to new members as the correct way to perceive, think, and feel in
relation to those problems."
Ouchi (1981) states that organizational culture consists of a set of symbols, ceremonies, and myths that
communicate the underlying values and beliefs of an organization and its employees.
Rogers and Ferketish (1993) state that an organization's culture is based on the shared values reflected in the
behaviors of leaders and employees at every level. The answer to the question "What's important around here?"
provides positive or negative insight into what is valued in an organization.
Dyer (1985) describes organizational culture as artifacts, perspectives, values, and assumptions shared by
members of an organization. He defines artifacts as verbal (language, stories, myths), behavioral (rituals and
ceremonies), and physical (art, attire, layout, and technology). Perspectives are the socially shared rules and norms
applied in given situations. Values are the evaluations people make of situations, acts, objects, and people. They
represent the organization's goals, ideals, and standards. Assumptions are the implied beliefs that underlie the
overt artifacts, perspectives, and values.
Blake and Mouton (1969) describe corporate culture as the routine ways of doing things that people accept and
live by. Organizations have norms and values that influence how members conduct themselves. These norms may
prevent members from applying a maximum effort or may encourage them to do so.
Culture Elements. Based on the culture definitions above, along with others, an author matrix of common culture
elements was developed. The author matrix yielded the following five culture elements:
Language-The language of an organization communicates its culture (Westbrook, 1993). Examples of how
language is used in organizations include jargon, metaphors, myths, slogans, ceremonies and celebrations, and
heroes and heroines (Deal, 1985).
Tangible artifacts and symbols-Artifacts and symbols provide tangible evidence of the culture (Westbrook, 1993).
Artifacts are objects manufactured by people to facilitate culturally expressive activities (Trice and Beyer, 1984).
Symbols or company logos often summarize or condense what a company stands for (Deal, 1985).
Patterns of behavior, rites and rituals, behavioral norms-- Trice and Beyer (1984) define a ritual as a standardized,
detailed set of techniques and behaviors that manage anxieties but seldom produce intended, technical
consequences of practical importance.
Allen (1985) describes norms as encompassing all behavior that is expected, accepted, or supported by the group,
whether that behavior is stated or unstated. The norm is the sanctioned behavior, and people are rewarded and
encouraged when they follow the norms, and ostracized when they violate them. Schein (1992) defines group
norms as the implicit standards and values that evolve in working groups, such as the norm of "a fair day's work
for a fair day's pay" that evolved among workers in the bank wiring room in the Hawthorne studies.
Espoused values-Schein (1992) defines espoused values as the articulated, publicly announced principles and
values that the group claims to be trying to achieve, such as "product quality" or "price leadership."
Beliefs and underlying assumptions-Basic underlying assumptions of an organization are revealed in management
decisions, policies, and procedures. McGregor's Theory X and Theory Y describe management's underlying
assumptions about employees. Theory X managers assume the existence of only the culture that exists in top-
management circles. They believe employees' behavior must be directed, motivated, controlled, and modified by
management to prevent passivity. Theory Y managers recognize work group differences and understand that
different groups may have different subcultures. They believe their task lies in allowing employees to achieve their
own goals by directing their own best efforts toward organizational objectives (McGregor, 1960).
Organic and Mechanistic Characteristics. Burns and Stalker (1961) used the terms organic and mechanistic to
define organizational structure as shown in Exhibit 1.
Their studies identified that mechanistic structures are designed for stable environments while organic structures
are better suited for changing and innovative environments. Organic and Mechanistic Cultures. The terms organic
and mechanistic describe culture as well as organizational structure. Exhibit 2 shows organic and mechanistic
characteristics for each culture element.
Organizational Culture Assessment
The five culture elements and their definitions were used to develop the OCA. The OCA is a 45-question survey,
divided into five sections, one for each culture element. Each question in the survey is answered by marking one of
eight answers on a Likerttype scale with two possible answers in each of the following four categories: strongly
agree, somewhat agree, somewhat disagree, or strongly disagree.
The OCA score for an organization is determined by averaging the answers for all survey participants. The score
can range from 1.0 to 8.0. A score closer to 1.0 represents a mechanistic type of culture. A score closer to 8.0
represents an organic type of culture. A similar assessment can be made for each culture element.
Results
Thirty high-technology organizations were surveyed, with a total of 275 individual participants. Sixteen
organizations had sufficient data to perform analysis at the organizational level. Each survey participant
completed the OCA, the Likert Profile of Organizational Characteristics (POC-used for OCA validation), and a
demographics section. Exhibit 3 shows a graph of the OCA and Likert POC scores for the 16 organizations.
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Reliability
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A reliable survey is consistent in what it measures. The type of reliability used is internal consistency reliability.
Internal consistency uses a single survey to determine the degree to which the questions in the survey are
measuring the same thing. The methods used for measuring internal consistency are split-half reliability and
Cronbach's alpha.
Validity
A valid survey measures what it is intended to measure (Litwin, 1995). Concurrent validity is used to analyze
validity. Analyses were conducted on survey participants' opinion of the culture from the demographics form. An
examination ofthe organizations surveyed was also performed.
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Concurrent Validity. Concurrent validity requires a survey have empirical association with some criterion or "gold
standard" (DeVellis, 1991). This requires identification of an established, generally accepted test (Litwin, 1995). A
high correlation coefficient between the survey and the standard test suggests good concurrent validity.
To validate the OCA, the results were compared to the Likert POC, Short-Like-Machine-Form (copyright 1978).
Rensis Likert Associates, Inc. is no longer in business. However, permission to use the Likert POC was granted by
Rensis Likert's daughter, Ms. Patricia Pohlman.
Likert describes an organizational theory of a continuum of four management systems (Likert and Likert, 1976).
System I is an exploitive authoritative system. Managers use threats and punishment for motivation. In System 2,
the benevolent authoritative system, managers use rewards along with punishment to motivate. In System 3, the
consultative system, managers use less punishment and more rewards and involvement as motivating techniques.
In System 4, the participative group system, managers use high levels of group involvement and group-developed
reward systems to motivate.
The POC can determine where organizations fall in the Likert System 1 to 4 continuum. The version of the survey
used consists of 16 questions on an eight-point scale. The POC version used is divided into the following six
sections: leadership, motivation, communication, decisions, goals, and control. The POC measures slightly
different aspects of culture than the OCA, however, it has been extensively used to measure organizational
characteristics and was considered similar enough to the OCA to be of use.
The correlation between the OCA data and the Likert POC data is .95 (Exhibit 5). An analysis of variance produced
a significant F-value of .000, indicating that the OCA and the Likert POC are related. Analysis of the residuals
indicated the errors are normally distributed and that the order of the model is correct. The high correlation and the
ANOVA indicate that the OCA has high concurrent validity.
Participant Culture Opinion. An additional analysis was performed to further validate the OCA. The participants'
culture opinions of their organizations were collected in the demographics section of the survey. They were asked
whether their organization was viewed as very negative, negative, neutral, positive, or very positive. The
organizations surveyed were high technology, so a very negative culture opinion corresponds to a mechanistic
culture (low OCA score) and a very positive culture corresponds to an organic culture (high OCA score). The culture
opinion was converted to a five-point scale, where 1 represents a very negative culture opinion and 5 represents a
very positive culture opinion.
Exhibit 6 shows a comparison of the organization OCA scores to the culture opinions. The figure shows the OCA
scores resemble the culture opinions for each organization surveyed. The correlation between the OCA scores and
the culture opinion is .82. Therefore, it can be concluded that culture opinion is related to the OCA score and this
relationship further validates the OCA.
Organization Analysis. Another way to analyze the validity of the OCA is to examine the organizations surveyed.
The organizations with OCA results in the organic range also happen to have reputations for being innovative,
flexible, and having loose organizational structures. The management of one of the organic organizations used the
survey results to implement changes, improving an already organic score. The organization's administrator
indicated management's intent to use the survey throughout the organization to examine and improve the culture.
On the other hand, organizations scoring in the mechanistic range of the OCA have reputations for being
bureaucratic, rigid, and rules oriented. Many are government organizations and government support contractors.
No reports of the survey being used to study or improve these organizations' cultures were received.
Culture Types
The OCA data were analyzed to determine whether it falls into groups. The data appeared to fall into four subsets
(Mechanistic, Mechanistic-Organic, Organic-Mechanistic, and Organic) as shown in Exhibit 7.
The boxplot for the four culture types is shown in Exhibit 8. The plot shows that the medians of the culture types
differ.
A one-way analysis of variance was performed to test the hypothesis that all the culture type means are equal. The
observed significance level is .000, so the null hypothesis that all the means are equal is rejected. Therefore, there
is a significant difference in the culture type means. A Levene test for homogeneity of variances was performed to
determine whether the group variances are equal. The significance level is .538. Since the significance level is
large, the null hypothesis that the variances are equal cannot be rejected. Therefore, the assumptions required for
the ANOVA have not been violated.
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TheANOVA does not indicate which means are significantly different from each other. Therefore, a Duncan's
multiple range test was run to compare all possible pairs of means. The results of the Duncan's multiple range test
with a significance level of .05 indicate that each pair of means differs significantly (Exhibit 9). Based on the test
results, it can be concluded that the culture type model is adequate.
Conclusions and Recommendations
The intent of this study was to develop an instrument to measure organizational culture. Data was collected from
275 participants from 30 organizations. The results of the analysis show evidence that (1) the OCA is a reliable
survey and is valid for measuring organizational culture, and (2) there are four types of organizational culture.
Implementing the OCA. Managers in high-technology organizations should perform investigations using the OCA
to determine whether their organizations have organic or mechanistic cultures. When the results are tabulated,
managers will have an overall OCA score for their organization, as well as a score for each of the five culture
elements. Managers should then decide whether the score is appropriate for their environment.
Culture Type Change Initiatives. If there is a need to change the culture type, responses to individual survey
questions can be examined and initiatives implemented in an attempt to improve the culture score. Although the
following ideas are not part of the research, some examples of change initiatives are shown below:
* Minimize the use of jargon
* Refrain from using derogatory terms for management, nonmanagement, and customers
* Praise employees for going to extremes to get the job done
* Managers should have an open-door policy
* Managers and non-managers should dress similarly
* Employees should have comfortable work areas with updated computer equipment
* Celebrate work accomplishments
* Managers should focus on work performance rather than office hours
* Managers should encourage employees to be open-minded and work together to solve problems
* Managers should focus on quality of work instead of quantity of work
* Managers should encourage innovative ideas and quickly adapt new technologies
* Managers should praise good performance and offer training opportunities
* Managers should provide support to employees to reach organizational goals
* Managers should assume that employees are responsible, capable, and vital organizational assets
* Decision-making should be pushed down to lower levels in the organization.
After initiatives have been implemented, then the OCA should be administered again. This post-initiative study can
be used to determine the impact of the change initiatives.
As technology continues to expand throughout the world, an organic organizational culture will become
increasingly important. In order for organizations to compete in the marketplace, a strong emphasis must be
placed on developing a clear understanding of organizational culture and its impact on employees and
organizational success.
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References
References
References
Allen, Robert E, "Four Phases for Bringing about Cultural Change," in Ralph H. Kilmann, Mary J. Saxton, Roy Serpa,
and Associates (eds.), Gaining Control of the Corporate Culture, Jossey-Bass (1985), pp. 332-350.
Blake, Robert R., and Jane S. Mouton, Building a Dynamic Corporation Through Grid Organizational Development,
Addison-Wesley (1969).
Burns, Tom, and George M. Stalker, The Management of Innovation, Tavistock Publications (1961).
Deal, Terrence E., "Cultural Change: Opportunity, Silent Killer, or Metamorphosis?" In Ralph H. Kilmann, Mary J.
Saxton, Roy
References
Serpa, and Associates (eds.), Gaining Control of the Corporate Culture, Jossey-Bass (1985), pp. 292-331.
Denison, Daniel R., "Bringing Corporate Culture to the Bottom Line," Organizational Dynamics, 13:2 (Autumn 1984),
pp. 522.
DeVellis, Robert F., Scale Development: Theory and Applications, Applied Social Research Methods Series, Volume
26, Sage Publications (1991).
Dyer, W. Gibb, Jr., "The Cycle of Cultural Evolution in Organizations," In Ralph H. Kilmann, Mary J. Saxton, Roy
Serpa, and Associates (eds.), Gaining Control of the Corporate Climate, Jossey-Bass (1985), pp. 200-229.
Kanter, Rosabeth M., The Change Masters, Simon and Schuster (1983).
References
Likert, Rensis, and Jane G Likert, New Ways of Managing Conflict, McGraw-Hill Book Company (1976).
Litwin, Mark S.,How to Measure Survey Reliability and Validity, Sage Publications (1995).
McGregor, Douglas M., The Human Side of Enterprise, McGrawHill Book Company (1960).
Morris, Richard M., III, "Effective Organizational Culture is Key to
References
a Company's Long-Term Success," Industrial Management, 34:2 (March/April 1992), pp. 28-29.
Ott, J. Steven, Organizational Culture and Perspective, Richard D. Irwin Company (1989).
Ouchi, William, Theory Z, Addison-Wesley (1981).
Rogers, Robert W., and B. Jean Ferketish, "Value-Driven Change Process," Executive Excellence, 10:3 (March 1993),
pp. 5-6. Schein, Edgar H., Organizational Culture and Leadership, JosseyBass (1992), p. 12.
Sheridan, John E., "Organizational Culture and Employee Retention," Academy ofManagement Journal 35:5
(December 1992), pp. 1036-1056.
StatSoft Electronic Textbook, Internet page at URL: www.statsoft.com/textbook/streliab.html (version current
June 12,2000).
Trice, Harrison M., and Janice M. Beyer, "Studying Organizational Cultures Through Rites and Ceremonials,"
Academy of Management Review, 94 (October 1984), pp. 653-669.
Westbrook, Jerry D., "Organizational Culture and Its Relationship to TQM," Industrial Management, 35:1
(January/February 1993), pp. 1-3.
AuthorAffiliation
Ronda F Reigle, United States Army Aviation and Missile Command
AuthorAffiliation
About the Author
AuthorAffiliation
Ronda Reigle received her M.S. in industrial engineering from TexasA&M University. She holds a B.S. in mechanical
engineering from the University of Kentucky. She is currently a reliability engineer for the U.S. Army Aviation and
Missile Command. She is completing her dissertation for a Ph.D. in industrial and systems engineering and
engineering management at the University of Alabama in Huntsville.
Contact: Ronda Reigle, USA AMCOM, AMSAM-RD-- SE-RA-MS, Redstone Arsenal, AL 35898; phone: 256-313-- 6005;
[email protected] DETAILS
Subject: Studies; Corporate culture; Organizational structure; Measurement
Location: United States US
Classification: 9130: Experimental/theoretical; 2500: Organizational behavior; 9190: United States
Publication title: Engineering Management Journal: EMJ; Huntsville
Volume: 13
Issue: 4
Pages: 3-8
Number of pages: 6
Publication year: 2001
Publication date: Dec 2001
Publisher: Taylor &Francis Ltd.
Place of publication: Huntsville
Country of publication: United Kingdom
Publication subject: Engineering
ISSN: 10429247
CODEN: EMJOEH
Source type: Scholarly Journals
Language of publication: English
Document type: Feature
ProQuest document ID: 208951788
Document URL: http://search.proquest.com.proxy1.ncu.edu/docview/208951788?accountid=28180
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Copyright: Copyright American Society for Engineering Management Dec 2001
Last updated: 2016-07-23
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Bibliography Citation style: APA 6th - American Psychological Association, 6th Edition
Ronda, F. R. (2001). Measuring organic and mechanistic cultures. Engineering Management Journal, 13(4), 3-8.
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