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A seminar report on ob

  1. 1. A SEMINAR REPORT ON CHANGING ORGANISATION CULTURE OF INDIAN CORPORATE WORLD In partial fulfillment for the award of the degree of Masters of business administrationSUBMITTED TO SUBMITTED BYProf: Raminder Kaur Pawandeep kaurDept: School of Management studies Roll no 5354 MBA – I (D) At SCHOOL OF MANAGEMENT STUDIES PUNJABI UNIVERSITY, PATIALA
  2. 2. ACKNOWLEDGEMENTI would like to take this opportunity to thank Prof: Raminder Kaur, Lecturer, MBA Department,School of Management Studies, Patiala who has been guiding force for my Report on“Changing organization culture of Indian corporate world”.I am also thankful to my friends, for their support and encouragement in finding out theappropriate material for this Report, without them making this report would have beenimpossible.
  3. 3. CONTENT Organization culture overview What is organization culture? Nature,functions,drawbacks ,levels of organization culture Pattrens ,types of organization culture The factors which changing organization culture in corporate world Style of leadership of managers Common Language Organization characteristics Group boundaries for inclusion or exclusion Distributing power and status Developing norms of intimacy, friendship, and love Rewards and punishments Founders and owners of the company The environment (juridical, economic, cultural, technological) The working group, system procedure Changes in staff Company Heroes and Heroines Stories ,legends Reasons to change OC in Indian corporate world Impact of changing education system Impact of technology Impact of changing expectations of employees Impact of workload Impact of competition Impact of changing aspirations of company‟s customers Methods adopted to change the OC in India Effective leadership Committed and active participation of leadership Assigning a culture manager Top management support Training A change in statement of beliefs, values Management style, organization structure, organization style Changing criteria for recruitment, selection Changes in Indian companies organization culture Effects by changing the organization culture
  5. 5. What is organization culture?Organizational Culture isa) a pattern of basic assumptionsb) invented, discovered, or developed by a given groupc) as it learns to cope with its problems of external adaptation and internal integrationd) that has worked well enough to be considered valid and thereforee) is to be taught to new members as thef) correct way to perceive, think, and feel in relation to these problemsOrganizational Culture is also a set of inter-related beliefs, shared by most of the employees of acompany about how one should behave at work and what activities are more important thanothers .Organizational Culture can be deliberately determined or simply allowed to evolveOrganizational Culture should be identified during formulation of strategy and led by leadershipand top management exampleOrganizational culture is an idea in the field of organizational studies and management whichdescribes the psychology, attitudes, experiences, beliefs and values (personal and cultural values)of an organization. It has been defined as "the specific collection of values and norms that areshared by people and groups in an organization and that control the way they interact with eachother and with stakeholders outside the organization." Ravasi and Schultz (2006) state thatorganizational culture is a set of shared mental assumptions that guide interpretation and actionin organizations by defining appropriate behavior for various situations. Although it‟s difficult toget consensus about the definition of organizational culture, several constructs are commonlyagreed upon – that organizational culture is holistic, historically determined, related toanthropological concepts, socially constructed, soft, and difficult to change. A single definition oforganizational culture has proven to be very elusive. No one definition of organizational culture hasemerged in the literature. One of the issues involving culture is that it is defined both in terms of itscauses and effect. For example, these are the two ways in which cultures often defined. 1. Outcomes- Defining culture as a manifest pattern of behavior- Many people use the term culture to describe patterns of cross individual behavioral consistency For example, when people say that culture is “The way we do things around here,” they are defining consistent way is in which people perform tasks, solve problems, resolve conflicts, treat customers, and treat employees.
  6. 6. 2. Process- Defining culture as a set of mechanisms creating cross individual behavioral consistency- In this case culture is defined as the informal values, norms, and beliefs that control how individuals and groups in an organization interact with each other and with people outside the organization. Organizational culture is a macro phenomenon which refers to the patterns of beliefs,assumptions, values, and behaviours reflecting commonality in people working together.NATURE OF ORGANISATIONAL CULTUREThe culture of an organization may reflect in various forms adopted by the organization. These couldbe:The physical infrastructureRoutine behaviour, language, ceremoniesGender equality, equity in paymentDominant values such as quality, efficiency and so onPhilosophy that guides the organization‟s policies towards it employees and customers like „customer first‟ and „customer is king‟, and the manner in which employees deal with customers.Functions of organizational culture 1. Behavioral control 2. Encourages stability 3. Provides source of identityDraw backs of culture 1. Barrier to change and improvement 2. Barrier to diversity 3. Barrier to cross departmental and cross organizational cooperation 4. Barrier to mergers and acquisitionsLEVELS OF ORGANISATIONAL CULTURE1. At Level one the organizational culture can be observed in the form of physical objects, technology and other visible forms of behavior like ceremonies and rituals. Though the culture would be visible in various forms, it would be only at the superficial level. For example, people may interact with one another but what the underlying feelings are or whether there is understanding among them would require probing.2. At Level Two there is greater awareness and internalization of cultural values. People in the organization try solutions of a problem in ways which have been tried and tested earlier. If the group is successful there will be shared perception of that „success‟, leading to cognitive changes turning perception into values and
  7. 7. 3. Level three represents a process of conversion. When the group repeatedly observes that the method that was tried earlier works most of the time, it becomes the „preferred solution‟ and gets converted into underlying assumptions or dominant value orientation. The conversion process has both advantages. The advantages are that the dominant value orientation guides behaviour, however at the same time it may influence objective and rational thinking.These three levels range on a scale of superficial to deeply embedded. As cultural symbols getconverted to shared assumptions, they move from a superficial level to a real internationalised levelPATTERNS OF ORGANISATIONALS CULTURETypes of Organizational CultureOrganizational culture can vary in a number of ways. It is these variances that differentiate oneorganization from the others. Some of the bases of the differentiation are presented below :1. Strong vs. weak culture : Organizational culture can be labeled as strong or weak based on sharedness of the core values among organizational members and the degree of commitment the members have to these core values. The higher the sharedness and commitment, the stronger the culture increases the possibility of behaviour consistency amongst its members, while a weak culture opens avenues for each one of the members showing concerns unique to themselves.2. Soft vs. hard culture : Soft work culture can emerge in an organization where the organization pursues multiple and conflicting goals. In a soft culture the employees choose to pursue a few objectives which serve personal or sectional interests. A typical example of soft culture can be found in a number of public sector organizations in India where the management feels constrained to take action against employees to maintain high productivity. The culture is welfare oriented; people are held accountable for their mistakes but are not rewarded for good performance. Consequently, the employees consider work to be less important than personal and social obligations. Sinha (1990) has presented a case study of a public sector fertilizer company which was established in an industrially backward rural area to promote employment generation and industrial activity. Under pressure from local communities and the government, the company succumbed to overstaffing, converting mechanised operations into manual operations, payment of overtime, and poor discipline. This resulted in huge financial losses (up to 60 percent of the capital) to the company.3. Formal vs. informal culture : The work culture of an organization, to a large extent, isinfluenced by the formal components of organizational culture. Roles, responsibilities,accountability, rules and regulations are components of formal culture. They set the expectations thatthe organization has from every member and indicates the consequences if these expectations are notfulfilled..4.TABLE 1: FORMAL Description Effect on OrganisationalCOMPONENTS OF CultureORGANISATIONALCULTURE Component
  8. 8. 1 Mission/Vision The milestones to Could be unrealistic be reached2 Policies Statements Policies, if not designed to be drafted properly guidelines to can provide leeway bahavioural decision3 Procedures Methods of Can facilitate or providing specific create obstacles in guidelines smooth functioning4 Rules Specific Rules could be a instructions for means or an end in performing a task themselves5 State of Organization at State of Organizational young, growing, organizational Development maturing, or mature development has stage of direct impact on development work culture
  9. 9. The factors which change and formedthe organizational cultureThe style of leadership of the managers. This has a considerable effect upon the cultureof a group. Now if the manager is distant towards his/her subordinates, this attitude canhave a negative impact upon the culture. The trust in the manager, the embodiment of thechief in a positive example can influence favorably the efficacy of the group. Themanagers always influence, substantially, the organizational culture, their influence beingproportional to the hierarchical level. At the same hierarchical level, the influence differsfrom one manager to another, because the level of training and the leading style are notthe same.Common language There is no official national language. If English is its unofficialfirst language, Spanish is its unofficial second language. Today in companies,thelanguage spoken most is English and this effect the organization culture at large scale.Today the Indian corporate world is not limited its business only to the extent of Indianboundaries but spread all over the world. In Indian companies, there is a very low rate ofpeople spoken Hindi and Punjabi, because the need of the time changes theircommunication way which effect the organization culture and quite different thetraditional ways communication. Economies opened, and due to technologicaldevelopments in communication, transportation, and finance, there were fewerdifficulties with the practical issues of conducting business across national borders.Communications technology showed exponential growth, including innovations thatfacilitated doing business anywhere at anytime, such as remote access and netconferencing.The organizational characteristics. Today They can affect, also, the type of culture thatit is developed. The organizations differ according attributes as measure and complexity.Between the complexity of the organization‟s culture and the size of the company (thatcan be expressed through the business figure, capital, number of employees) there is adirect proportional report. Moreover, the big organizations tend to higher degrees ofspecialization and towards a bigger impersonal character. Usually, in the smallcompanies the culture is more homogenous, while in the big companies are clearlyshaped the sub-cultures. The organizations, also, differ according the degree offormalization (expressed in rules, politics, norms) and after the degree of decentralizationand autonomy. The history of the company represents a factor with profound influenceupon the organizational culture with tradition; at the same time, it differentiates thecultures of these organizations from the cultures of the new enterprises. The stage of thelife cycle of the company can constitute an important factor rarely taken intoconsideration. The economic situation of the company influences the organizationalculture by its restrictions andeconomic facilities.
  10. 10. Group boundaries for inclusion or exclusionIn Indian corporate world the adoption of these instructions for establish groupboundaries1. In small group, take some silence and start to build community in this group. (have fun)2. Examine the Barriers Handout. Discuss barriers in group in an attempt to find the barrier ifsomeone would like to transform (let go of or improve) in his life. (have fun)3. Share personal insights with each other. (have fun)4. Select a barrier (or barriers) to present to the large group. This can be a common barrier oreach person may feel a need to present their individual barrier. (have fun)5. Together as a group, decide how someone wishes to present the barrier(s) and theirtransformation to the large group. This can be done in about any way you desire. Be creative.Make it fun. It can be just a report, a song or group of songs, or a poster, but a skit is preferred.Try to keep the your presentation to 10 minutes. You can use props. The transformation shouldembody emptiness in some way. (Have fun)6. There are a few rules about the presentation:· Do not use any presentation that uses fire or smoke (fire detectors may go off and stop theworkshop.)· Do not require participation by individuals in the large group.· Be mindful of our differences and respect all differences .Ask if there are any question and for only one person at a time to speak.A boundary is often created for protection and should only be changed with considerablethought. A boundary "rule" is one you have originated that defines what is good or bad for you.A boundary may be a barrier to communication depending on what it is. Are you aware of anyboundary you have that is a barrier to meaningful communications? Are you aware of anyboundary that you want to change? How will you do that and how will you know if it is safe tochange?Boundaries are accumulated during life for protection and become a learned method of existing.
  11. 11. Boundaries need to be changed slowly and may be replaced with another boundary that offersmore freedom until it becomes safe to "take the next step". Some people have few or almost noboundries and this often gets them into trouble. An example of this is a person that regularyoffers far more information that is asked for by people they talk to. This becomes a turnoff toothers and may result in other avoiding you. Distributing power and status As hierarchy increases power becomes difficult to concentrate at the top and there can be a distribution of power to lower managers. Decentralization can occur as lower level managers assume decision-making, but to retain some degree of standard operational procedures, the organization increasing relies on written policies and procedures. This formalization of organizational rules helps to maintain order across the growing organization and ensures conformity and continuity in practices. Also, with growth organizations begin to divide the work into ordered units that perform specialized work. Increased specialization of work into departments is termed differentiation. The extent to which an organization is departmentalized, divisionalized, and hierarchically layered characterizes the organization‟s complexity. Increased organizational size has important implications for management: it can limit the flexibility of individual work, affect how much authority can be delegated, and lead to an emphasis on results rather than how the work is actually performed (because results are easier to monitor).This changes the organization culture at large scale. Developing norms of intimacy, friendship, and love Friendship is a form of interpersonal relationship generally considered to be closer than association, although there is a range of degrees of intimacy in both friendships and associations. Friendship and association can be thought of as spanning across the same continuum. The study of friendship is included in the fields of sociology, social psychology, anthropology, philosophy, and zoology. Various academic theories of friendship have been proposed, among which are social exchange theory, equity theory, relational dialectics, and attachment styles.Value that is found in friendships is often the result of a friend demonstrating the following on a consistent basis adopted in the corporate world:
  12. 12. The tendency to desire what is best for the otherSympathy and empathyHonesty, perhaps in situations where it may be difficult for others to speak the truth,especially in terms of pointing out the perceived faults of ones counterpartMutual understanding and compassion; ability to go to each other for emotional supportEnjoyment of each others companyTrust in one anotherPositive reciprocity - a relationship is based on equal give and take between the twoparties.The ability to be oneself, express ones feelings and make mistakes without fear ofjudgement.Rewards and punishments The consequences of behavior-what behavior isrewarded and what is punished-can significantly influence culture. If the organizationreacts to new ideas by ridiculing the ideas and those who propose them, it wont take longbefore people believe that new ideas are not welcomed or desired. One belief ofperceived organizational culture is reflected in the statement: "Dont raise questions orsuggest improvements, because nothing will come of it and you will just get in trouble."If you were in an organizations strategic leader, what steps could you take to alter thereward system to change this aspect of the culture? Employee motivation, positiveemployee morale, rewards and recognition are explored in these resources. What createsmotivated, contributing people? How do you maintain high employee morale whenpeople work long hours? How does your reward and recognition system contribute to orEvery person has different reasons for working. The reasons for working are as individualas the person. But, we all work because we obtain something that we need from work.The something obtained from work impacts morale, employee motivation, and the qualityof life. To create positive employee motivation, treat employees as if they matter -because employees matter. These ideas will help you fulfill what people want from workand create employee motivation. Some companies offer rewards, incentives, andpromotions to employeeswhose behavior supports the desired organizational culture. They believethat these rewards encourage similar behavior in other employees and helpto perpetuate or change the culture. For example, 3M‟s promotion systemallows scientists and engineers to rise to high levels in the companywithout becoming managers. This system allows them time to conductinnovative research. The company also rewards employees whorecommend improvements in processes or innovative ideas for newproducts.The company alsogives bonuses to production workers when a plant meets itsgoals and up to 10 percent bonuses for salaried employees based on corporate success.
  13. 13. Each division receives 1 percent of its salaries for cash awards, which can amount to 8 percent of an employee‟s pay. In addition, to recognize exemplary contributions quickly, employees are given thank you cards and dinner for two at a restaurant. The founders and owners. In many cases, the founders create the philosophy of the company and determine the basic values. The owners of the company can exert their influence from more points of view: of the type of owner (natural and/or juridical persons); the number of owners. When there are a reduced number of owners, their influence can be more profound The environment (juridical, economic, cultural, technological). The juridical environment can influence the organizational culture positively or negatively. When it includes contradictory elements its influence upon the organizational culture is negative. The economic environment of the company reflects the status of the national economy. Thus, the economic crisis is also reflected at the organizational level. The individual who enter or are within an organization of businesses are ‘impregnated’ with the values, beliefs,attitudes that come from the national culture. The economic culture is derived from the national culture and presents particularities for each country, which manifests upon other variables – owners, employees, managers. The technique and technology used refer to the degree of technical endowment and the type of technologies used, which have implications over the organizational culture. Thus, the amplification of the degree of technical endowment of the companies has implications over the content of the organizational culture, after the reduction of the frequency and intensity of human contacts. The working group. The working groups appear in organizations in different forms. The working force is created by a formal authority, the organizations being networks of working groups. The variables that determine the formation of the group can be delimitated into the personal characteristics (personality, experience, training, attitudes), situational variables (the tasks to fulfill, available space, the way of granting the awards – respectively the group as a whole or the individual). Groups appear due to the need of affiliation, the necessity to reach the goals, physical approach, and compatibility between the personalities, the attitudes and values of the individuals. The nature of the group and the number of members affect the perceptions regarding the nature of the organizational culture. Each employee brings into the organization convictions, attitudes, behaviors, from whose intertwining results the organizational culture. The implication regarding the mission of the group influences the cultural perceptions. At the same time, the relationships within the group are decisive for the process of creation of the organization’s culture. The general existent attitudes towards the risk and the existence of conflict, the types of relationships of communication will have a considerable impact upon the working group. They affect, at the same time, the amplitude of the innovation and organizational creativeness. According these factors, the members of the organization will develop an impression about ‘what kind of working place is that’. Systems, Procedures, and ProcessesCompanies that are perpetuating or changing their cultures generally recognize that theymust make their systems, procedures, and processes compatible with their values andbeliefs. Motorola, for example, focuses on customer satisfaction by attempting to reducemistakes in its products and at the same time do its work faster. Its objective is to providecustomers “out-of-the-box” quality, on-time deliveries, and no early product failures. Toachieve this goal, Motorola established a standard measure of quality by the number ofdefects found per unit. Each quarter, it reviews each division‟s level of quality in relationto its quality goals. If a division does not meet the goals, the reviews are done monthly; ifthe goals have still not been met, the reviews are done weekly. Federal Express believesthat customer satisfaction begins with employee satisfaction. Therefore, the company
  14. 14. developed systems, procedures, and processes to show that it values its employees. Among these are a no-layoff policy, promotions from within, semiannual performance reviews to help employees identify training needs and improve their skills, a program in which employees may air perceived problems with higher-level management without fear of repercussion, and employee ratings of managers. Staff Changes When employees do not support a culture change or do not help to perpetuate the values and beliefs that a company believes are important some companies replace employees or change their responsibilities. DuPont, for example, has provided generous incentives to employees that agree to retire early. It has also appealed to some employees‟ sense of duty in asking them to move from key management positions. DuPont values its employees, however, and in making these changes takes care to avoid disrespect and humiliation for the individual. Federal Express also reassigns employees or changes their responsibilities when it determines that they are not suited for their positions. The company bases its determination on an annual survey questionnaire that indicates whether employees are satisfied with their managers. On the questionnaire, employees rate their managers, and if a manager receives low score and does not improve, the company tries to find another position within the organization that more closely fits the person‟s &ilk+. Because the company values its employees, it does not attach a stigma to such a change. Stories, Legends, and MythsSome companies repeat success stories, legends, or myths to impress their values and beliefs onemployees. Corning, for example, distributed to its quality improvement teams worldwide anotebook of stories on total quality successes. The company also includes stories related to thevalue of quality in its total quality digest and in company and division newspapers. One storyexemplified the importance of viewing a product through the customer‟s eyes. On a tourthrough a customer‟s plant, Corning employees were shown samples of a chipped and crackedCorning product and a competitor‟s product that was in good condition. Corning was in dangerof losing the customer‟s business because of the poor quality of the product.Corning‟s plantmanager asked each plant employee for ideas to resolve the problem. Through teamwork, theproblem was resolved and the customer was retained. IBM also distributed a book of qualitysuccess stories. In one story,employees had reduced the building, testing, and delivery time foran airborne communications location system from 120 days to 45 days. Although IBMaccomplished this task as a special effort to support the Army during Operation Desert Shield,many of the changes made to accomplish the reduction have since become standard proceduresand have thus increased the timeliness of operations. Finally, a famous story in Johnson &Johnson-a company that values innovation-is about the firing of James Burke, who laterbecame the company‟s chairman of the board. Mr. Burke was tired by a former chairman,General Johnson, for making a mistake. The following day, General Johnson rehired Mr. Burkeand publicly announced that what the company needed was people who made mistakes. Thepoint was that if people do not risk making mistakes in their efforts to be creative, nothingInnovative would ever happen.
  15. 15. Company Heroes and Heroines Some officials believe that a good technique to encourage people to support a company‟s values and beliefs is to make heroes or heroines of exemplars of those values. Every quarter, each division at Corning singles out employees who exemplify the company‟s beliefs and values, particularly those related to quality. The division recognizes these employees‟ contributions in front of the other divisional members to make their efforts well known. In addition, Corning includes in a quality milestone book pictures of team members who have presented quality improvement success stories at the annual “quality milestone” event. Thus, these employees become well known for their contributions throughout the organization. At DuPont, the Vice President of the Materials, Logistics, and Services Division, which is leading the company‟s effort to change its culture, presents a quality leadership award to employees who have made important contributions to improving quality. DuPont believes that other employees will emulate the employees whose accomplishments have been Recognized, rewarded, and publicized Hiring the Right People Some companies attempt to recruit people who believe in or are willing to accept the organizations‟ desired values and beliefs. The companies we visited, however, have not fully developed processes and procedures to ensure success at this effort. Corning is moving toward hiring people it believes will work well as team members and who are open and flexible by having Corning team members participate in the hiring process. Some parts of the company also test prospective employees to see if they will fit into the culture. Although Federal Express does not try to determine if a prospective employee will fit into its culture in all respects, in the last 5 years, it has used tests to help predict whether an applicant will be successful at the work expected. The company looks for people with the particular skills needed to perform or to learn to perform a job. Academics and literature have discussed communications in the hiring process as a means of modifying the attitudes of prospective employees. They note that it is important to communicate realistically the organization‟s current and desired beliefs and values and both positive and negative aspects of the job. They believe that this can help in attracting and retaining employees who share the organization‟s desired beliefs. Slogans Some of the companies use slogans to symbolically communicate their desired values and beliefs.For example, 3M believes slogans it has used, like “People count at 3M,” “ Innovation workingfor you,” and “What won‟t they think of next,” have served as a means of communicating valuesand making employees proud of the company they work for.
  16. 16. Reasons to change OC in Indian corporate world Impact of changing education system In today‟s changing world there are a lot of changes occur in the education system, many of the students go to abroad for their higher studies ,many of the students are placed in international companies and many foreign students joined Indian companies ,their basic education as well as higher studies impact the organization culture because of the value ,beliefs formation while theireducation. Impact of technology In recent times, technology has become an ever increasing presence in the workplace and it is one of the hot topics among the business world. More and more businesses, large and small, are trying to incorporate the latest technology into their operations. This notion is evidenced by the fact that the popular business publications now have technology sections, and information systems departments are becoming critical components of most organizations. The scope of technology that an organization can adopt or employ is vast, ranging from something seeming simple, such as buying a personal computer with a word processor, to investing in the latest state-of- the-art computer-aided manufacturing machinery. Regardless of the complexity of the system or the size of the organization, one thing is certain - the incorporation of such technology or information systems will accompany change. Purposely, I have not said that they will cause change because the reverse is also true. Implementation of technological systems can either act as a catalyst for change or be the means of achieving a desired change. Regardless of the motivation, a properly integrated system ideally will take into account the impact on the organization before it is put into place. This paper will look at the relationship between technological advances/information technology and change in an organization. It will also give some examples of how information technology has been implemented in some specific cases in industries such as aerospace, computers, oil and gas, railroad, and manufacturing.The contribution of information technology and its impact on the organization is emphasized byNadler, who states "perhaps the largest single influence on organizational architecture and designhas been the evolution of information technology." Technology certainly has its place among thekey elements which shape an organization. The model used by Andersen consultants is typicalwhen it lists technology as an equal attribute, along with strategy, people, and businessprocesses. The interconnectivity of these elements should be obvious, for one cannot be changedin a transformational sense without at least consideration of the others. While the formal
  17. 17. structure or arrangements within an organization will likely be affected by the arrival of newtechnology, this does not have to be the case in all situations. A transformation can also occurthrough the business changing the way it operates. More specifically, information technology canbe linked to changes in factors such as job design, physical layout or location, supervisoryrelationships and autonomy, cooperation inside and outside the organization, and formation ofwork teams.One futuristic idea whose time has come is the notion of the virtual workplace. This concept isbased on the idea of employees being able to work independently as a result of having access toinformation. One article proposes "the virtual workplace provides access to information you needto do your job anytime, anyplace, anywhere. . . employees do not have to be tied to their officesto do their jobs."(Jenner, p.16) The idea of not even having a set office space certainly would bea change from the typical routine of showing up at the office from 9 to 5 (ideally) andperforming your work at your desk. Such a plan would obviously be dependent on the job to beaccomplished, but it is interesting to think of the supervisory implications. Such employeeswould have the ultimate amount of autonomy and would have to be managed accordingly. Taskswould have to be more objective or goal oriented and measures of job performance could nolonger depend on face to face interaction, but rather would have to be tied strictly on the abilityto complete assigned tasks.The tasks that employees perform within an organization are being drastically affected by theincreased mechanization and application of technology as a part of the production process. Inmany settings, tasks previously performed directly by human operators are being automated,changing the humans task to one of supervisory control. Now the expectations of an averageemployee in such an environment has to change, because they are no longer performingrepetitive tasks, but rather must be able to recognize and react to problem situations. Suchprogress has to start somewhere, and in reality this movement towards robotics has its roots inthe theories of scientific management. Thus the changes in technology day by day changes theculture in organizations. Impact of changing expectations of employeesIn an effective team culture, the concept of context is addressed. Team members understand whythey are participating on the team and how the team fits within their organization. In an effectiveteam culture, team members understand where the work of their team fits in the total context oftheir organization‟s strategic plan and success goals.
  18. 18. When the organization culture supports teamwork, team members understand how the strategy ofusing teams fits in the total context of their organization‟s strategic plan and success goals. Teammembers understand why using teams will help their organization attain its business goals. Infact, they understand the context of a team culture so well, they are convinced that teams are theonly way their organization will excel.In a successful team culture, teams understand where their work fits in the total context of theorganization‟s mission, goals, principles, vision and values. Team members spend time definingtheir team culture by agreeing upon team norms and expectations within the company‟s overallteam context.Finally, team members understand that 20% of the problems they will experience as a team willfall within the context of the task or mission the team is assigned to accomplish. The other 80%of the problems will relate to their team culture and the processes team members establish andcommit to for interacting. Impact of workloadThere is comfort found in standing still. It is only natural that employees facing a drasticorganizational change wonder how that change will impact them on an individual level.Improperly managed organizational change can create fear among the ranks, which impacts jobsatisfaction, performance and productivity. Workers could lose confidence, fearing a loss of jobstability. They may also fear that changes will increase their workload or that they will not becapable of learning how to use new technology. Organizations must combat these fears andlessen the impact on employees.
  19. 19. The term "organizational culture" commonly is used to refer to the nature or personality of anorganization. A company may have a positive organizational culture, marked by opencommunication and trust in organizational leadership, or it may have a negative culture in whichworkers have little trust in their leaders. The effect of organizational change on employees oftendepends on the culture of the organization. Additionally, a negative organizational culture hasthe capability of hindering change, making necessary transitions more difficult for employees tobear.Effective change management is essential to streamlining the change process and reducing thenegative impact on employees. When organizational changes are properly managed, workersperceive the benefits of a proposed change and accept the change. Workers benefit from properlymanaged change in a variety of ways. For example, a technological update may offer employeesthe opportunity to learn new skills. New technology can also increase job satisfaction byreducing the workload. Impact of changing aspirations of company’s customerscustomer satisfaction and building long-term relationships is what your corporation strives toachieve as part of its culture. Training employees to take the time to listen to a customersinquiries or concerns and resolving complaints to the satisfaction of both the customer and thecompany is part of corporate culture for positive customer relations. The happier your customer,the more likely she will make a recommendation to others which helps to boost your bottom line.Customer service strategies can be effectively nothing more than a guideline in a corporateannual report. Or, they can be visibly implemented for the customer to see. Implementing acustomer service strategy as part of a companys corporate culture is a step towards buildingcustomer loyalty. It requires a commitment by company employees to satisfy the needs ofcustomers in its day-to-day operations. The effectiveness of the customer relations strategy iscritical in a competitive market.A companys products and services change all year long. A company engaging in an annualsurvey may not be keeping up with a customers ever changing demands. Companies whichadopt the principle of continuous feedback on brand awareness as part of its corporate culturekeep its products fresh and customers satisfied promoting customer loyalty. Feedback tells thecustomer that her opinions are important to the company in order for the company to do its bestto meet her needs.Customers drive product innovation. Understanding your customer and his buying habits can bethe lifeblood of establishing the right products. Data from surveys and other client feedback isonly as effective as the data management system that the company is willing to adapt. It can helpto achieve accurate analysis for invaluable insight into a customers needs and behaviors.Adapting new technology to a companys business practices as part of a companys customer-centric corporate culture is a tool to satisfy customers to stay competitive.Organizations can impede profitability by not demonstrating willingness to welcome directcustomer input into its product development. Brainstorming at the corporate level can berestrictive for a company in terms of innovation. Establishing customer innovation centers help
  20. 20. to give corporations an opportunity to team with customers to create product ideas and testprototypes before it hits the market. Customers and corporations engaging in modern daycorporate culture are able to work together to break barriers of corporate boardroom productdevelopment in the name of customer satisfaction.
  21. 21. Methods adopted to change the OC in India EFFECTIVE LEADERSHIPCommitted and active participation of leadership organizational culture and leadership areelements in a company that work in conjunction with one another toward organizational success.Both culture and leadership influence how the company will function and what will be achieved.Either culture will determine how leadership functions, or leadership will transform theorganizational culture so that the culture supports the organizational. Organizational LeadersOrganizational leaders influence how people within it will function and the course that theorganization will take, now and in the future. Leaders can be managers, supervisors, appointedleaders or natural leaders. Regardless of their official capacity in an organization, they mustunderstand the organizational culture in order to motivate others to function in the manner thatthey desire.Appointed vs. Natural Leaders Each organization has individuals who are appointed as leaders. There are also those within the company who are natural leaders, who are sought out by workers for guidance and support. These natural leaders can exist at all levels of the organization and greatly influence the attitudes and values of the workers. Appointed leaders and/or managers must be capable of identifying the natural leaders of the organization and working with them to gain support so that organizational planning and functions will be successful. Assigning a culture managerAssigning a Culture Manager Some companies have assigned a person or group to facilitate theirculture change efforts. For example, Corning has a manager o corporate quality and a qualitycouncil. Most have not, however, because company officials generally believe that manyemployees should be involved in their culture change or perpetuation efforts. They consequentlyrated assigning a culture manager as the least important of the techniques they use. Top Management supportWhen a company is motivated to change its culture, strong top management leadership and adisplay of commitment and support for desired beliefs and values are considered crucial to itssuccess. Senior officials must articulate and live by organizational values and beliefs todemonstrate to employees that top management is committed to making permanent culturalchanges and is not merely paying lip service to them. Companies have used various means toexplain new values and beliefs and to motivate acceptance and internalization of them. Forexample, top management officials often discuss the organizational values and beliefs inmeetings, internal publications and television networks, and videotapes. They also implementemployees‟ suggestions that support the organization‟s values and beliefs and reward them fortheir accomplishments.
  22. 22. To achieve success, top management needs to ensure that all facets of the organization-rewardand promotion systems, the organizational structure and management style, training,communications, symbolism, and systems, l procedures, and processes-reflect its values andbeliefs. Training Training has been used as a very important tool for promoting and developing skills related to an organization‟s beliefs and values. Corning, for example, has made training the cornerstone of its efforts to change to a culture that places high value on quality. Its goal is to devote 5 percent of the work year to training. Corning has trained all its 26,000 employees inquality awareness and is now training its employees in communications, problem solving,statistics, interpersonal, group participation, and management skills to enable them to work in thecompany‟s new total quality environment. Ford also places a high value on training as a tool toinstill in its employees its mission, values, and guiding principles. In training on technical,human relations, and management skills, for example, Ford includes discussions and examplesemphasizing the importance of supporting its values and beliefs to achieve success. A Statement of Values and Beliefs According to company officials, articulating an organization‟s values and distributing a written statement of those values to employees is anImportant technique. When Ford began to change its culture about 10 years ago, it developed awritten statement of its mission, values, and guiding principles. This statement was an importantstep in Ford‟s efforts to change because Ford believes that its culture must flow from and beCompatible with its mission and that its employees must clearly understand what its mission is.Johnson & Johnson has had a written statement of its beliefs and values, called “Our Credo,”since the mid-1940s. Over the years, the company has used this credo to guide its businessdecisions. For example, when someone placed poison in several packages of one of thecompany‟s premier products, the company offered full rebates to customers and destroyed all ofthe product at a cost of $250 million, consistent with its credo, which states that “our firstresponsibility is to the doctors, nurses and patients, to mothers and fathers and all others who useour products and services.” The company took this step against the advice of every majoradvertising company and one of the country‟s most respected business schools, which believedthat the company‟s product market share would never be regained. The company proved themwrong, Management Style Companies that are changing their culture often have to change their Management style, sometimes drastically. When DuPont decided to change its culture to achieve continuous improvement through its people, it began changing from an authoritative to a participative management style. To make this change, DuPont has begun to delegate authority to its employees and allow them to participate in the decision- making process. For example, upon established problem discovery and problem solving teams that include organizational members from the highest to the lowest levels of the company. Because it is encouraging and empowering its employees to contribute fully to the company‟s continuous improvement, DuPont Believes that it will be able to achieve its vision of becoming a “great global company through people.”
  23. 23. In 198 1, Motorola also began changing to a participative management style after it began tochange its culture to emphasize quality. Although the company had been people-oriented foryears, it began to encourage and empower its employees to suggest better ways to do the workand make decisions. Motorola believes that its employees are willing to risk suggestingimprovements that increase efficiency because of its policy not to lay off employees with 10 ormore years of service. The company believes that this change will help it to achieve itsfundamental objective of providing total customer satisfaction through the reduction of defects inall its products and services to the very low rate of 3.4 per million. To empower its employees inits cellular telephone business, Motorola made the following changes: Employees are nowresponsible for quality because inspectors were removed. Employees can stop the production linewhen they see problems in the quality of the products. Work teams make decisions and selectnew team members when there are openings. Employees conduct reviews of their peers‟performance and comment on supervisors‟ performance. Employees monitor their ownattendance at work. Organizational GatheringsSome companies use organizational gatherings to explain their values and beliefs to employees.For example, at an annual “quality milestone” event, Corning‟s chairman of the board addressesthe employees on what quality means to the company, and several teams of workers givepresentations about quality improvements they have made. Ford and AT&T used what they call“cascade” meetings to convey and discuss their values and beliefs. The results of meetings at thehighest level in the company are passed to employees at the organizational level directly belowuntil employees at the lowest level of the organization have been & informed. In this way, thecompanies are assured that all employees are familiar with their values and beliefs. Organizational StructureWhen developing a culture or considering a culture change, a company generally selects anorganizational structure that will suit its desired culture. Federal Express has a more centralizedstructure than some companies because of its focused mission to provide “totally reliable,competitively superior global air-ground transportation of high priority goods and documentsthat require rapid, time-certain delivery.” At the same time, Federal Express values and supportsits employees and has limited its organizational structure to five layers between the lowest levelemployee and the chief executive officer. IBM has reduced the number of layers in itsorganizational structure in support of its beliefs of respect for the individual, service to thecustomer, and excellence in execution. This structure change allows more employeesto participate in decision-making and speeds the company‟s decision-making process. Criteria for recruitment, selection, promotion, retirement and excommunication.One of the powerful ways of changing an organizations culture is through the type of peoplebrought into, retained, and advanced in the organization. You should be able to establish adesired culture base in an organization by bringing in and advancing individuals with the valuesyou want, and eliminating those with undesired value bases.
  24. 24. That is what organizations are attempting when they propose tightening up admissionsstandards to screen out undesirables. This strategy is consistent with the belief that the problemsexperienced by the organization result from a few "bad apples" and do not reflect systemicproblems. However, if a strong culture bias exists, it may be too strong to be changed byselection alone.The military academies are organizations which change over one fourth of their membershipevery year, which should provide an opportunity for changes to the organizational culture as newmembers are brought in. The catch, however, is that the socialization of those new members restsin the hands of those who are already part of the existing culture. How could the militaryacademies make systemic culture changes not negated by the socialization process new membersgo through? Work Stories Shape CultureThe tone and the content of your work stories are powerful forces in shaping and strengtheningyour work culture. What your employees share with each other and talk about frequentlybecomes imprinted on the organizational mind. Just like the little voice in your head talks to youall day long, so the stories shared in the workplace form a substantial core of the employeeexperience.And, inspiring work stories are even more significant for new employees. New employees listento the work stories to learn about your culture and the work environment you provide foremployees. New employees use work stories to cultivate and create expectations around theirrelationship with their new manager. What other employees tell you to expect and experiencepowerfully frames your own experience.New employees, especially, find their thinking imperceptibly influenced by the work stories.Without awareness, they develop patterns of behavior and respond based on the expectationsformulated by the stories, oftentimes not by the reality.So, given that employees tell stories; work stories affect and shape workplace culture, oftenimperceptibly; and new employees are most influenced from day one by work stories that areinspiring – or not, what‟s an employer to do? Can you stem the tide of employee negativity andreinforce the inspiring components of the work stories your employees tell?of the model added a feedback loop from receiver to sender. Nevertheless, the model suggestedPublic relations excellence theory is grounded in a systems perspective .
  25. 25. Changes in organization culture of Indian corporate EnvironmentHonda will step up its effort to create better clean, fuel-efficient engine technologies andimprove further the recyclables throughout its product lines. Honda will also advance alternativefuel technologies, including fuel cells. In addition, Honda will continue its efforts to minimizeenvironmental impact, as measured by the * Life Cycle Assessment, in all of its business fields,including logistics and sales. In its production activities, Honda will promote environmentalpreservation issues under its Green Factory concept.Continuing to Increase Society‟s Trust in and Understanding towards HondaIn addition to continuing to provide products incorporating Honda‟s advanced safety andenvironmental technologies, Honda will continue striving to earn even more trust andunderstanding from society by, among other things, undertaking activities for corporategovernance, compliance, and risk management and contributing to society.Through these Company-wide activities, we will strive to materialize Honda‟s visions of “valuecreation,” “globalization,” and “commitment to the future,” with the aim of sharing the joy withHonda‟s customers, thus becoming a company that society wants to exist. About Honda’s organization cultureExisting over the years, Honda has gained prominence in the global community throughceaseless innovation and a commitment to servicing the needs of society. Hondas uniquecorporate culture and groundbreaking approach to developing new technologies enable theorganisation to develop exciting new products that provide freedom of movement for peoplearound the world. With responsibility to the environment, a commitment to local markets, andrespect for people as its guiding principles, Honda aims to contribute to an increasingly mobilesociety characterised by quality of life, comfort and convenienceAs a responsible member of society whose task lies in the preservation of the globalenvironment, the company will make every effort to contribute to human health and thepreservation of the global environment in each phase of its corporate activity. Only in this waywill we be able to count on a successful future not only for our company, but for the entireworld."Country specific data is also there in the various sections. E.g. Tsunami relief in India underHumanitarianIndia: Candidates engaged in hands on practice session at the sewing tailoring workshop
  26. 26. In order to help local rural people, especially women, Hero Honda has set up a VocationalTraining Centre. So far 26 batches comprising of nearly 625 women have been trained intailoring, embroidery and knitting. The Company has helped women trained at this center to setup a production unit to stitch uniforms for Hero Honda employees. Interestingly, most of thewomen are now self-employed.With support from Honda Motor India Pvt Ltd. and the Indian Institutes of Technology, in 2007the Honda Foundation launched the Honda Young Engineer and Scientists Award (YESAward)in India. The YES Awards are intended to recognize outstanding students who willbecome trailblazers in ecotechnology. All recipients will be eligible for additional funds tocontinue their research as professional interns or graduate students in Japan.
  27. 27. Effects by changing the organization culture The culture. Performance relationship The discussion so far has been dealing primarily with identifyingvarious ways of thinking about the relevance of the culture concept for corporate performances. Critiqueagainst promises of using culture as a means for corporate goals have been raised. Much interest hasnevertheless been given to effects on performance of the ‘right’ or strong enough corporate culture. Thereis a lot of writing and talk about this but also a few systematic empirical studies. Let us now turn toempirical investigations of culture–performance relationships. The effects of organizational culture onperformance There are four views on the relationship between organizational culture on performance:1 Perhaps the most common one is the so-called strong-culture thesis. It has often been assumed thatcommitment of an organization’s employees and managers to the same set of values, beliefs and normswill have positive results – that the ‘strength’ of ‘corporate culture’ is directly correlated with the level ofprofits in a company (e.g. Denison, 1984). Researchers adopting this hypothesis tend to place new kindsof human relations (involving employees in decision-making, allowing them some discretion, developingholistic relations, etc.) at the core of organizational culture (e.g. Peters and Waterman, 1982; Ouchi,1981). It is frequently argued that a distinct organizational culture contributes to performance throughfacilitating goal alignment – a common culture makes it easier to agree upon goals as well as appropriatemeans for attaining them. There are also positive effects on motivation – a shared culture encouragespeople to identify with the organization and feel belongingness and responsibility for it, it is assumed(Brown, 1995).2 There are also, however, researchers that suggest the reverse relationship between culture andperformance: that high performance leads to the creation of a ‘strong’ corporate culture (culturalhomogeneity). It is possible that success brings about a common set of orientations, beliefs and values. Aparticular workplace spirit may develop and there may be little incentive or encouragement to question‘ways of doing things’, thus forming broad consensus andpossibly conformism. This culture may be morethan just a by-product of high performances: values and meanings may reproduce a successfulorganization and thus contribute to performances. It may also be a source of conservatisand a liability insituations calling for radical change.3 Another idea draws upon contingency thinking to suggest that under certain conditions a particular typeof culture is appropriate, even necessary, and contributes to efficiency. Wilkins and Ouchi (1983), forexample, consider culture an important regulatory mechanism in organizational settings too complex andambiguous to be controlled by traditional means (bureaucracy and the market).In corporate situationswhere these means of regulation function well, corporate control as a distinct form is less significant.4 Still another version says that ‘adaptive cultures’ are the key to good performance, i.e. cultures that areable to respond to changes in the environment. Such cultures are characterized by people willing to takerisk, trust each other, are proactive, work together to identify problems and opportunities, etc. It may betempting to say that ‘adaptive cultures’ are self-evidently superior. There easily enters an element oftautology here: ‘adaptive’ implying successful adaption and this is per definition good for business. But asBrown (1995) remarks, there are organizations that are relatively stable and fit with a relatively stableenvironment, and risk-taking and innovation are not necessarily successful. Too much change can lead toinstability, low cost-efficiency, risky projects and a loss of sense of direction.
  28. 28. Culture spans the range of management thinking and organizational culture has been one of themost enduring buzzwords of popular management. Why? Organizational culture is apparentlyunifying and this strongly appeals to management‟s concern with projecting an image of theorganization as a community of interests. Perhaps most importantly culture penetrates to theessence of an organization – it almost analogous with the concept of personality in relation to theindividual and this acute sense of what an organization is – its mission, core values – seems tohave become a necessary asset of the modern company. There is the vexed question of whetheror not organizational culture can be managed. Academics interested in understanding andanalyzing culture tend to say no. On the other hand for facing too much competition inglobalization, there is a need to change the organization culture oveall.By changing the culture inorganizations, companies able to get effective feedback from employees.
  29. 29. BIBILIOGRAPHYWEBSITESwww.google.comwww.ask.comhttp://en.wikipedia.org/wiki/Human_resourceshttp://en.wikipedia.org/wiki/Organizational_culturehttp://www.soi.org/reading/change/process.shtmlhttp://www.beyondlean.com/corporate-culture.htmlBOOKSCORPORATE STRATEGY AND STRUCTURE IN INDIAWriter V.k Chopra