OCI Presentation

36
Strengthening Organizations through Organizational Effectiveness OCI 1/16/2016 1

Transcript of OCI Presentation

Page 1: OCI Presentation

Strengthening Organizations

through Organizational

Effectiveness

OCI

1/16/2016

1

Page 2: OCI Presentation

Copyright © 2008 by Human Synergistics International. All Rights Reserved. 2

HS Integrated Diagnostic System - OCI

Page 3: OCI Presentation

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Organizational Culture (Defined)

As measured by the OCI, organizational culture

refers to the behavioral norms and expectations

that:

a) guide the way people interact with one

another and approach their work, and

b) reflect shared values, beliefs, and other

organizational factors.

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OCI versus OCI Ideal

• OCI measures behavioral norms and expectations—what it takes for you

and people like yourself to “fit in” and meet expectations in your

organization.

– Also measures outcomes associated with culture that provide insights

into the need for cultural change.

• OCI Ideal measures shared values—beliefs about the behaviors that

should be expected to maximize your organization’s effectiveness.

– Also measures organizational readiness for change.

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How Culture is Supposed to Work

Causal Factors (Levers for Change)

Operating Culture (OCI Norms)

Outcomes (Effectiveness)

Individual

Group

Organizational

Assumptions Espoused

Values (Ideal Culture)

Philosophy Mission

Goals

Strategies

Research and development by Robert A. Cooke, Ph.D.

Copyright © 1997, 2008 by Robert A. Cooke, Ph.D., Human Synergistics International. All Rights Reserved.

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How Culture Worked at Lion Nathan (1998)

Current Culture (1998) N = 1192

Research and development by Robert A. Cooke, Ph.D. and J. Clayton Lafferty, Ph.D.

Copyright © 1973-2008 by Human Synergistics International. All Rights Reserved.

Ideal Culture (1998) N = 108

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How Culture Really Works

Causal Factors (Levers for Change)

Operating Culture (OCI Norms)

Outcomes (Effectiveness)

Individual

Group

Organizational

Structures

Systems

Technology

Skills/ Qualities

Structures

Roles

Influence

Decision-making

Assumptions Espoused

Values (Ideal Culture)

Philosophy Mission

Goals

Strategies

Research and development by Robert A. Cooke, Ph.D.

Copyright © 1997, 2008 by Robert A. Cooke, Ph.D., Human Synergistics International. All Rights Reserved.

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Organization Design and Culture

Mechanistic Organizations

(n=18)

Organic Organizations

(n=6)

Research and development by Robert A. Cooke, Ph.D. and J. Clayton Lafferty, Ph.D.

Copyright © 1973-2008 by Human Synergistics International. All Rights Reserved.

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How Culture Works

Causal Factors (Levers for Change)

Operating Culture (OCI Norms)

Outcomes (Effectiveness)

Individual

Group

Organizational

Structures

Systems

Technology

Skills/ Qualities

Systems

Selection

Training

Appraisal

Reinforcement

Goal setting

Assumptions Espoused

Values (Ideal Culture)

Philosophy Mission

Goals

Strategies

Research and development by Robert A. Cooke, Ph.D.

Copyright © 1997, 2008 by Robert A. Cooke, Ph.D., Human Synergistics International. All Rights Reserved.

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Reinforcement Systems and Culture

Emphasis on Praise

(n=12)

Emphasis on Criticism

(n=16)

Research and development by Robert A. Cooke, Ph.D. and J. Clayton Lafferty, Ph.D.

Copyright © 1973-2008 by Human Synergistics International. All Rights Reserved.

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How Culture Works

Causal Factors (Levers for Change)

Operating Culture (OCI Norms)

Outcomes (Effectiveness)

Individual

Group

Organizational

Structures

Systems

Technology

Skills/ Qualities

Technology

Job design

Complexity

Inter-dependence

Assumptions Espoused

Values (Ideal Culture)

Philosophy Mission

Goals

Strategies

Research and development by Robert A. Cooke, Ph.D.

Copyright © 1997, 2008 by Robert A. Cooke, Ph.D., Human Synergistics International. All Rights Reserved.

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The Electronic Disintegration of Interpersonal Processes*

Based on 31 Virtual Teams *From Balthazard, Potter, and Cooke, 2000

Research and development by Robert A. Cooke, Ph.D. and J. Clayton Lafferty, Ph.D.

Copyright © 1973-2008 by Human Synergistics International. All Rights Reserved.

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How Culture Works

Causal Factors (Levers for Change)

Operating Culture (OCI Norms)

Outcomes (Effectiveness)

Individual

Group

Organizational

Structures

Systems

Technology

Skills/ Qualities

Skills/ Qualities Leadership

Communication Bases of power

Assumptions Espoused

Values (Ideal Culture)

Philosophy Mission

Goals

Strategies

Research and development by Robert A. Cooke, Ph.D.

Copyright © 1997, 2008 by Robert A. Cooke, Ph.D., Human Synergistics International. All Rights Reserved.

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Impact of Leaders on Culture

Prescriptive Leaders

(n=20)

Restrictive Leaders

(n=19)

Research and development by Robert A. Cooke, Ph.D. and J. Clayton Lafferty, Ph.D.

Copyright © 1973-2008 by Human Synergistics International. All Rights Reserved.

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How Culture Works

Causal Factors (Levers for Change)

Operating Culture (OCI Norms)

Outcomes (Effectiveness)

Individual

Group

Organizational

Structures

Systems

Technology

Skills/ Qualities

Assumptions Espoused

Values (Ideal Culture)

Philosophy Mission

Goals

Strategies

Research and development by Robert A. Cooke, Ph.D.

Copyright © 1997, 2008 by Robert A. Cooke, Ph.D., Human Synergistics International. All Rights Reserved.

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OCI and Outcomes

Passive/ Aggressive/

OEI Outcome Measures Constructive Defensive Defensive

Individual Outcomes--Positive Indices

Role Clarity (n =320) .55*** -.43*** -.31***

Motivation (n =291) .61*** -.48*** -.29***

Satisfaction (n =320) .64*** -.51*** -.35***

Intention to Stay (n =463) .36*** -.31*** -.18***

Individual Outcomes--Negative Indices

Role Conflict (n =291) -.46*** .61*** .53***

Job Insecurity (n =480) -.27*** .21*** .18***

Stress (n =624) -.29*** .29*** .33***

Group Outcomes

Intra-Unit Teamwork and Cooperation (n =321) .36*** -.50*** -.48***

Inter-Unit Coordination (n =292) .49*** -.33*** -.21***

Departmental-Level Quality (n =321) .50*** -.37*** -.21***

Organizational Outcomes

Organizational-Level Quality (n =287) .50*** -.33*** -.12*

External Adaptability (n =288) .55*** -.34*** -.14*

Note. Zero-order correlations are presented based on analyses carried out at the unit-level. The number

of units on which particular correlations are based is specified next to the outcome scales.

*p <.05. **p <.01. ***p <.001.

OCI Culture Measures

From Janet L. Szumal, Ph.D. (2001), Reliability and validity of the OEI.

Copyright 2001 by Human Synergistics/Center for Applied Research, Inc. All Rights Reserved.

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The Culture Disconnect

Individual

Group

Organizational

Structures

Systems

Technology

Skills/ Qualities

Assumptions Espoused

Values (Ideal Culture)

Philosophy Mission

Goals

Strategies

Research and development by Robert A. Cooke, Ph.D.

Copyright © 1997, 2008 by Robert A. Cooke, Ph.D., Human Synergistics International. All Rights Reserved.

Resources

Demands

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Defensive Misattribution of Success

Individual

Group

Organizational

Structures

Systems

Technology

Skills/ Qualities

Assumptions Espoused

Values (Ideal Culture)

Philosophy Mission

Goals

Strategies

Research and development by Robert A. Cooke, Ph.D.

Copyright © 1997, 2008 by Robert A. Cooke, Ph.D., Human Synergistics International. All Rights Reserved.

Resources

Demands

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Culture Bypass Operation

Individual

Group

Organizational

Structures

Systems

Technology

Skills/ Qualities

Resources

Assumptions Espoused

Values (Ideal Culture)

Philosophy Mission

Goals

Strategies

Research and development by Robert A. Cooke, Ph.D.

Copyright © 1997, 2008 by Robert A. Cooke, Ph.D., Human Synergistics International. All Rights Reserved.

Demands

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Historical Ideal OCI

Based on 560 members

of 56 organizations

(aggregated to

organizational level)

Research and development by Robert A. Cooke, Ph.D. and J. Clayton Lafferty, Ph.D.

Copyright © 1973-2008 by Human Synergistics International. All Rights Reserved.

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High Reliability Organizations Ideal Culture Profiles

Air Force Base Navy Yard

Nuclear Power Plants

Research and development by Robert A. Cooke, Ph.D. and J. Clayton Lafferty, Ph.D.

Copyright © 1973-2008 by Human Synergistics International. All Rights Reserved.

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International Ideal Profiles

Anglo Cluster (Australia, Canada, Ireland, NZ, South Africa, US)

Germanic Cluster (Germany, Switzerland)

Nordic Cluster (Denmark, Finland, Norway, Sweden)

Latin European Cluster (Italy, Spain)

Latin America Cluster (Chili, Columbia, Venezuela)

Near Eastern Cluster (Greece, Turkey)

Far Eastern Cluster (HK, Indonesia, Malaysia,

Philippines, Singapore, Taiwan)

Copyright © 2003 by Robert A. Cooke, Ph.D., Human Synergistics International. All Rights Reserved. Research and development by Robert A. Cooke, Ph.D. and J. Clayton Lafferty, Ph.D.

Copyright © 1973-2008 by Human Synergistics International. All Rights Reserved.

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Culture Profiles of Units within U.S. Department of Defense

During Operation Desert Shield

Top Performers Average Performers

Culture and Performance

Research and development by Robert A. Cooke, Ph.D. and J. Clayton Lafferty, Ph.D.

Copyright © 1973-2008 by Human Synergistics International. All Rights Reserved.

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Culture and Sales Growth

High sales growth

retail stores profiled

against no sales

growth stores

(blue line) High Sales Growth

(shaded area) No Sales Growth Key:

Research and development by Robert A. Cooke, Ph.D. and J. Clayton Lafferty, Ph.D.

Copyright © 1973-2008 by Human Synergistics International. All Rights Reserved.

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Culture and Newspaper Performance

Effectiveness (Outcomes) Constructive Passive/Defensive Aggressive/Defensive

Satisfaction 2

.576*** -.420*** -.352***

Stress 2

-.255* .245* .303**

Turnover 3

-.193* .104 .292**

Cooperation/Teamwork 2 .424*** -.345*** -.466***

Inter-Unit Coordination 2 .512*** -.370** -.197*

Product/Service Quality 2

.455*** -.294** -.338***

Customer Satisfaction 4

.046 .143 -.294**

Readership 4

.211* .104 -.066

Profit 5

.224* -.148 -.018

3 Based on organizational records collected by the Readership Institute (Northwestern University).

4 Based on surveys of newspaper readers carried out by the Readership Institute.

5 Regression residual of profit not explained by revenue and circulation strata.

Analyses by: Robert A. Cooke, Ph.D., Human Synergistics, 7/2003

Notes:

* p < .05; ** p <.01; *** p < .001. Organizational n = 79. One-tailed correlations with list-wise deletion of missing cases. Coefficients differ

slightly with case-wise deletion.

1 Culture factor scores based on the Organizational Culture Inventory (Human Synergistics).

2 Based on the Organizational Effectiveness Inventory (Human Synergistics).

Individual Level

Group Level

Organizational Level

Strength of Cultural Norms 1

Page 26: OCI Presentation

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Culture and Profitability

Financial data

provided by

Towers-Perrin

for 69

companies in

various

industries.

Profitability 1

(Over 3 Years)

Strength of Cultural Norms

2

Earnings/Sales Ratio (n = 69)

Earning/Sales Volatility

(n = 60)

Constructive

.217*

-.035

Passive/ Defensive

.094

-.172

Aggressive/ Defensive

-.074

.338**

Notes: * p < .05; ** p < .01 1 Profitability data for 1997 through 1999 (provided by Towers-Perrin); ratios are

averages for the three-year period and volatility scores are standard deviations. 2 OCI Factor Scores

Copyright © 2003 by Human Synergistics/Center for Applied Research Robert A. Cooke, Ph.D.

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Culture and Performance at Lion Nathan

1998 2000 2002 1996 2004

Net Profit After Taxes in Millions of Australian $

70

90

110

130

150

170

190

210

230

1996 1997 1998 1999 2000 2001 2002 2003 2004

Research and development by Robert A. Cooke, Ph.D. and J. Clayton Lafferty, Ph.D.

Copyright © 1973-2008 by Human Synergistics International. All Rights Reserved.

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Culture Change at Lion Nathan

Levers for Change

• Establish a clear sense of

purpose, vision, and values

• Develop the leadership

capability to “achieve results

in the right way”

• Reinforce desired behaviors

through people management

systems and processes

• Monitor culture

Culture 1998

Culture 2004

Research and development by Robert A. Cooke, Ph.D. and J. Clayton Lafferty, Ph.D.

Copyright © 1973-2008 by Human Synergistics International. All Rights Reserved.

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Differentiating Culture from Climate

Climate Culture

Based on perceptions Based on shared beliefs

“How things are around “What’s expected (or valued

here” or assumed) around here

Example: In this Example: People in this

organization, people are organization are expected or

rewarded in proportion implicitly required to compete

to the excellence of their rather than cooperate

job performance

Short-term implications Long-term implications

Easier to change Harder to change

Most managers focus

only on this

But outcomes are more reliably

predicted by this

Page 30: OCI Presentation

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Effects of Culture and Climate

The Cross-Level Effects of Culture and Climate in Human Service

Teams (C. Glisson & L. R. James, 2002, Journal of Organizational

Behavior).

• Surveyed 283 case managers from 33 child welfare and juvenile

justice case management teams.

• OCI used to measure Constructive and Passive/Defensive cultures.

• Psychological Climate Questionnaire used to measure climate

factors linked to quality and outcomes in these types of organizations

by earlier studies.

Page 31: OCI Presentation

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Effects of Culture and Climate

The Cross-Level Effects of Culture and Climate in

Human Service Teams (continued)

• Confirmatory factor analysis confirmed that culture and climate

scales measure distinct constructs.

• Constructive cultures associated with more positive work attitudes,

higher service quality, and turnover.

• More positive climates associated with more positive work attitudes

(not significantly related to service quality and turnover).

Culture Climate

Work Attitudes

Service Quality

Turnover

Page 32: OCI Presentation

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How Culture (and Climate) Work

Causal Factors (Levers for Change)

Structures

Systems

Technology

Skills/Qualities

Philosophy, Mission, Goals, and Strategies

Individual

Group

Organizational

Culture

(Shared Beliefs)

Outcomes (Effectiveness)

Norms

(ideally reflecting

values)

Climate Measures

Examples:

How likely are you to stay with this organization?

Would you recommend this organization’s products or services?

To what extent does your organization get repeat business from clients?

Objective Measures

Examples:

Turnover rates

Financial performance

Customer retention rates

Objective Measures

Examples:

Training hours per employee

Do you offer ESOPs?

Do you have a formal appraisal system?

Climate Measures

Examples:

Do you receive adequate training for your role?

Is good performance recognized?

To what extent are appraisals fair?

OEI OEI

OCI

Research and development by Robert A. Cooke, Ph.D.

Copyright © 1997, 2008 by Robert A. Cooke, Ph.D., Human Synergistics International. All Rights Reserved.

Page 33: OCI Presentation

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Computer-Scored OCI

• Contains 120 items

• Available in Current and Ideal

format

• Norms based on 921

organizational units

• HSI must process

• Internet Data Collection (IDC)

option available

Hand-Scored vs. Computer-Scored OCI

Hand-Scored OCI

• Contains 120 items

• Available in Current and

Ideal format

• Norms based on 5,658

individuals

• HSI can process (norms

based on 921

organizational units unless

otherwise specified)

Page 34: OCI Presentation

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OCI Translations (OCI Current)

Hand-Scored

• Japanese

• German

• Dutch*

• French Canadian*

• French European

• Spanish Latin American

• Spanish Castilian

• Brazilian Portuguese

• Bulgarian

• Finnish

• Hungarian*

• Korean

• Romanian

• Serbian

• Slovak

Computer-Scored

• Japanese*

• German*

• Dutch*

• French Canadian

• French European

• Polish

• Spanish Castilian

• Swedish

• Simplified Chinese

• Traditional Chinese

*Translated versions of OCI Ideal also available.

IDC

• Brazilian Portuguese*

• German

• Dutch*

• French Canadian*

• French European*

• Hungarian*

• Korean*

• Polish*

• Spanish Latin American*

Page 35: OCI Presentation

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OCI Subgroup Breakouts

Example Subgroup Breakouts: • Shifts, levels, departments, divisions, centralized/ decentralized

locations, international sites

General “Rules of Thumb:”

• If there is any possibility that the company will ever want/need subgroup breakouts then plan and code for it.

• Will need at least 5 respondents for each subgroup breakout—therefore ask at least 8 people per subgroup to complete the survey.

• Response options for subgroup or custom demographic variables must be exhaustive and mutually exclusive (i.e., each person should find one, and only one, category that accurately describes his/her subgroup).

Page 36: OCI Presentation

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OCI Reports

OCI Standard Report • Available for all formats (i.e., hand-scored, paper computer-

scored, and IDC)

• Report includes OCI composite profile and group summary statistics

OCI Detailed Report • Available for all formats

• Report includes OCI composite profile, group summary statistics, and statistical and graphical analysis of current and ideal data

• Report also includes up to 20 subgroups (more can be added for an additional charge)