Corporate Culture – What Does Science Say?
We’ve discussed some themes in this group over the past several years; respect
and humility key to communication between rig and office personal; the need to
know, acknowledge and always consider differences in personality and the
diversity this adds necessarily to reliable, safe and efficient operations; corporate
cultures and their affect on decisions made throughout the organizations, and the
organizational/company culture’s affect on systemic failures in our industry.
There has been judgmental criticism of a popular psychological assessment
program used by some drilling departments and yet it seems to touch upon most,
if not all of the company culture models of the leading scientists that study this.
Its dimensions of Task, People, Detail, or Overview. You can look at the
summary of the research in Corporate Culture in history to date here:
http://en.wikipedia.org/wiki/Organizational_culture , and see quickly that these E
Colors dimensions touch upon the most common dimensions of all of the other
scientists. Add, humility and respect of Schein, and Dweick, and the work of Karl
Weick and the HRO principles and we quickly reach a common theme: The
mindset and mindfulness of people are the most important matters. Look at the
well containment issues of drilling process safety and our industry’s greatest
tragedies and we see that we have worked hard in the last years since this
tragedy to improve the physical barriers and yet the actual barrier that failed and
needs improvement is the human barrier. The human barrier is the barrier most
susceptible and affected by company culture and yet it is the barrier least
focused upon by industry and simply because it is the most difficult one to
measure and manage with superficial observance. Yet is it impossible? Not
likely. Is it difficult? Yes, yet we are addicted to the simple button that the task
oriented focus of our capitalistic society rewards. Yet the most complex and
technical areas of our industry require more than a task focus and yet it must be
balanced with details and people and of course an overlying value of well
containment and social responsibility and accountability for all risks.
Healthy organizational cultures
Organizations should strive for what is considered a "healthy"
organizational culture in order to increase productivity, growth, efficiency
and reduce counterproductive behavior and turnover of employees. A
variety of characteristics describe a healthy culture, including:
• Acceptance and appreciation for diversity
• Regard for and fair treatment of each employee as well as respect for
each employee’s contribution to the company
• Employee pride and enthusiasm for the organization and the work
performed
• Equal opportunity for each employee to realize their full potential within
the company
• Strong communication with all employees regarding policies and
company issues
• Strong company leaders with a strong sense of direction and purpose
• Ability to compete in industry innovation and customer service, as well as
price
• Lower than average turnover rates (perpetuated by a healthy culture)
Investment in learning, training, and employee knowledge
The Giants of Organizational Culture Science and Research
Charles Handy
Charles Handy (1976), popularized Roger Harrison (1972) with linking
organizational structure to organizational culture. The described four types
of culture are:
• Power culture: concentrates power among a small group or a central
figure and its control is radiating from its center like a web. Power
cultures need only a few rules and little bureaucracy but swift in
decisions can ensue.
• Role culture: authorities are delegated as such within a highly defined
structure. These organizations form hierarchical bureaucracies,
where power derives from the personal position and rarely from an
expert power. Control is made by procedures (which are highly
valued), strict roles descriptions and authority definitions. These
organizations have consistent systems and are very predictable.
This culture is often represented by a "Roman Building" having
pillars. These pillars represent the functional departments.
• Task culture: teams are formed to solve particular problems. Power is
derived from the team with the expertise to execute against a task.
This culture uses a small team approach, where people are highly
skilled and specialized in their own area of expertise. Additionally,
these cultures often feature the multiple reporting lines seen in a
matrix structure.
• Person culture: formed where all individuals believe themselves
superior to the organization. It can become difficult for such
organizations to continue to operate, since the concept of an
organization suggests that a group of like-minded individuals pursue
organizational goals. However some professional partnerships
operate well as person cultures, because each partner brings a
particular expertise and clientele to the firm.
Robert A. Cooke
Robert A. Cooke defines culture as the behaviors that members believe
are required to fit in and meet expectations within their organization. The
Organizational Culture Inventory measures twelve behavioral norms that
are grouped into three general types of cultures:
• Constructive cultures, in which members are encouraged to interact with
people and approach tasks in ways that help them meet their
higher-order satisfaction needs.
• Passive/defensive cultures, in which members believe they must interact
with people in ways that will not threaten their own security.
• Aggressive/defensive cultures, in which members are expected to
approach tasks in forceful ways to protect their status and security.
O’Reilly, Chatman & Caldwell (1991) developed a model based
on the belief that cultures can be distinguished by values that are
reinforced within organizations. Their Organizational Profile Model (OCP)
is a self reporting tool which makes distinctions according seven categories
- Innovation, Stability, Respect for People, Outcome Orientation,
Attention to Detail, Team Orientation, and Aggressiveness.
Hofstede
Means vs Goal orientation
Internal vs external drive
Easy going vs strict work discipline
Local vs professional
Open vs closed system
Employee vs work orientation
Degree of acceptance of leadership style
Degree of identification with your organization
Schein
Humility
http://www.ottoscharmer.com/docs/interviews/Schein_interview.pdf
E Colors Big Picture – Detail Oriented – Task Oriented – People Oriented Touches upon more of the common issues than any other company cultural scientist has. A coincidence? http://www.youtube.com/watch?v=xZERdSqyNVo Carol Dweick and humility and being perfect http://www.youtube.com/watch?v=XgUF5WalyDk Sidney Dekker and the just culture http://www.youtube.com/watch?v=gKqYMpWZbV8 Most common things in reliable company cultures: Just culture Learning environment through growth mindset and humility Respect and acknowledgement of need for diversity of personalities and balance of values of task, people, details, and broad perspectives. Collective orientation that shouldn’t require being extracted from the topic of humility. Top 7 perspectives necessary for complex operations
inherently dangerous with inadequate human
intervention; Drilling Process.
1.
2.
3.
4.
5.
6.
7.
Humility Diversity Balance Competence Situational Duty to Humanity Strength versus competing values