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ORGANIZATIONAL CULTURE Organizational Culture and Leadership, 3rd Edition

ORGANIZATIONAL CULTURE Organizational Culture and Leadership, 3rd Edition

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<strong>CULTURE</strong>S IN ORGANIZATIONS 499. Even as the company gets very large <strong>and</strong> differentiated,it is desirable to keep some central control rather th<strong>and</strong>ivisionalizing.10. DEC engineers “know best” what a good product is, basedon whether or not they personally like working with thatproduct.These ten assumptions can be thought of as the DEC culturalparadigm—its cultural DNA. What is important in showing theseinterconnections is the fact that single elements of the paradigmcould not explain how this organization was able to function. It wasonly by seeing the combination of assumptions—around individualcreativity, group conflict as the source of truth, individual responsibility,commitment to each other as a family, commitment to innovation<strong>and</strong> to solving customer problems, <strong>and</strong> belief in internalcompetition <strong>and</strong> central control—that one could explain the dayto-daybehavior one observed. It is this level of basic assumptions<strong>and</strong> their interconnections that defines some of the essence of theculture—the key genes of the cultural DNA.How general was this paradigm in Digital? That is, if one wereto study workers in the plants, salesmen in geographically remoteunits, engineers in technical enclaves, <strong>and</strong> so on, would one findthe same assumptions operating? One of the interesting aspects ofthe DEC story is that at least for its first twenty or so years this paradigmwould have been observed in operation across all of its ranklevels, functions, <strong>and</strong> geographies. But, as we will also see later,some elements of the DEC culture began to change <strong>and</strong> the paradigmno longer fitted in some parts of the company.Ciba-GeigyThe Ciba-Geigy Company in the late 1970s <strong>and</strong> early 1980s was aSwiss multidivisional, geographically decentralized chemical companywith several divisions dealing with pharmaceuticals, agriculturalchemicals, industrial chemicals, dyestuffs, <strong>and</strong> some technically basedconsumer products. It eventually merged with a former competitor,

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