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Understanding Business
12th Edition
ISBN: 9781259929434
Author: William Nickels
Publisher: McGraw-Hill Education
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
Transcribed Image Text:### Understanding Organizational Culture: Aligning Values and Perceptions
When evaluating the culture within an organization, it’s crucial to understand the distinction between what is communicated by the leadership and what is actually perceived by employees. This alignment, or lack thereof, can significantly impact the overall functioning and morale of a company.
#### Key Concept:
- **Espoused Values:** These are the values that an organization states that it believes in and promotes.
- **Enacted Values:** These are the values that are actually reflected in the behaviors, decisions, and actions of the organization's members.
Consider the following scenario and question:
---
### Scenario:
The managers of a company tell their employees that customer service is the company's top priority. However, the employees view making sales as the top priority of the company. What the managers tell employees are ______ whereas the views of the employees are ______.
#### Options:
- ⬜ Espoused values, enacted values
- ⬜ Enacted values, espoused values
- ⬜ Narratives, observable artifacts
- ⬜ Observable artifacts, narratives
---
### Explanation of Answers:
1. **Espoused values, enacted values**:
- Espoused values are the formalized statements of what management believes their values are (e.g., prioritizing customer service).
- Enacted values are what employees see being actually prioritized in day-to-day operations (e.g., making sales).
2. **Enacted values, espoused values**:
- This would incorrectly align the terms, as enacted values are the actual behaviors and espoused values are what is stated.
3. **Narratives, observable artifacts**:
- Narratives are the stories and explanations given within the organization.
- Observable artifacts are the physical manifestations of culture, such as awards for top sales performance.
- This option does not accurately reflect the given scenario.
4. **Observable artifacts, narratives**:
- This is the reverse and also does not correctly match the given scenario.
### Correct Answer:
- ⬜ **Espoused values, enacted values**
By understanding the distinction and ensuring alignment, organizations can better manage perceptions, improve morale, and achieve their stated objectives more effectively.
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