Strengthening Organizations
through Organizational
Effectiveness
OCI
1/16/2016
1
Copyright © 2008 by Human Synergistics International. All Rights Reserved. 2
HS Integrated Diagnostic System - OCI
Copyright © 2008 by Human Synergistics International. All Rights Reserved. 3
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.
Copyright © 2008 by Human Synergistics International. All Rights Reserved. 4
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.
Copyright © 2008 by Human Synergistics International. All Rights Reserved. 5
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.
Copyright © 2008 by Human Synergistics International. All Rights Reserved. 6
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
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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
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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.
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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
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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.
Copyright © 2008 by Human Synergistics International. All Rights Reserved. 33
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)
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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*
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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).
Copyright © 2008 by Human Synergistics International. All Rights Reserved. 36
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)