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Nonprofit Organizational Assessment

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Promoting consistency and encouraging coordination and control within the

company

Shaping employee behavior at work, enabling the organization to be more

efficient

Irving Janis defined groupthink as "a mode of thinking that people engage in when they

are deeply involved in a cohesive in-group, when the members' strivings for unanimity

override their motivation to realistically appraise alternative courses of action." This is a

state in which even if group members have different ideas, they do not challenge

organizational thinking. As a result, innovative thinking is stifled. Groupthink can lead to

lack of creativity and decisions made without critical evaluation. Groupthink can occur,

for example, when group members rely heavily on a central charismatic figure in the

organization or where there is an "evangelical" belief in the organization's values.

Groupthink can also occur in groups characterized by a friendly climate conducive to

conflict avoidance.

Healthy

Culture is the organization's immune system. – Michael Watkins

What Is Organizational Culture? And Why Should We Care? – Harvard Business

Review

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 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

Additionally, performance oriented cultures have been shown to possess statistically

better financial growth. Such cultures possess high employee involvement, strong

internal communications and an acceptance and encouragement of a healthy level of

risk-taking in order to achieve innovation. Additionally, organizational cultures that

explicitly emphasize factors related to the demands placed on them by industry

technology and growth will be better performers in their industries.

Page 58 of 211

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