Organizational Culture Final

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Organizational Culture Final

  1. 1. Parking Lot innovation
  2. 2. 20% of the employee’s time can be utilized for personal Projects.
  3. 3. ORGANIZATIONAL CULTURE By KAMALAKKANNAN G VENKATESAN T DEPARTMENT OF MANAGEMENT STUDIES PONDICHERRY UNIVERSITY
  4. 4. Organizational Culture Originated in 1940s • organizational climate studies, was prominent during the 1960s and 1970s • Popularized in early 1980s • viewed the informal, nonmaterial, interpersonal, moral bases of cooperation and commitment as perhaps more important
  5. 5. Organizational culture became a business phenomenon in the early 1980s, triggered by four seminal books: ♦ Ouchi’s (1981) Theory Z: How American Business Can Meet the Japanese Challenge ♦ Pascale and Athos’s (1982) The Art of Japanese Management: Applications for American Executives ♦ Deal and Kennedy’s (1982) Corporate Cultures: The Rites and Rituals of Corporate Life ♦ Peters and Waterman’s (1982) In Search of Excellence: Lessons from America’s Best Run Companies.
  6. 6. Definition A system of shared meaning held by members that distinguishes the organizations. Set of key behaviors, beliefs and shared understandings that are shared by members of the organization. Defines basic organizational values and communicates to new members the correct way to think and act.
  7. 7. PRIMARY CHARACTERISTICS • Innovation and Risk Taking • Attention to detail • Outcome Orientation • People Orientation • Team Orientation • Aggressiveness • Stability
  8. 8. Why we learn Culture in OB To Defines the boundary between one organization and others. To Convey a sense of identity for its members. To Facilitate the generation of commitment to something larger than self-interest. self- To Enhance the stability of the social system.
  9. 9. Organizational Culture & the Bottom Line - Dr. Kathleen Miller, 1992 1. an environment where people felt that they were all part of the company team 2. consultants on a weekly basis to address their interpersonal and relationship issues 3. owners committed to spending time on the shop floor each day listening to employees about their vision for the company and how the employees fit into that vision 4. daily communications meetings for discussing their opinions and differences behind closed doors rather than in public
  10. 10. How Organizational Cultures Have an Impact on Performance and Satisfaction Strength Objective Factors Performance • Innovation and risk taking • Attention to details Perceived Hi • Outcome orientation Organizational •People orientation as culture •Team orientation •Aggressiveness Low •Stability Satisfaction
  11. 11. Do Organizations Have Uniform Cultures Dominant Subcultures Culture Core Values
  12. 12. Creating And Sustaining Culture
  13. 13. How Organization Cultures Form Top Management Philosophy of Organization’s Selection Organizational Criteria Culture Founders Socialization
  14. 14. Keeping Culture Alive • Concerned with how well the candidates Selection will fit into the organization. • Provides information to candidates about the organization. Top • Senior executives help establish behavioral norms that are adopted Management by the organization. • The process that helps new Socialization employees adapt to the organization’s culture.
  15. 15. A Socialization Model
  16. 16. Stages in the Socialization Process
  17. 17. Entry Socialization Options Formal Individual versus versus Informal Collective Fixed Serial versus versus Variable Random
  18. 18. Contrasting Organization Cultures Organization A Organization B • Managers must fully document all • Management encourages and decisions rewards risk-taking and change. • Creative decisions, change, and risks • Employees are encouraged to are not encouraged. “ run with ” ideas, and failures are treated as “ learning experiences.” • Extensive rules and regulations exist • Employees have few rules and for all employees. regulations to follow. • Productivity is valued over employee • Productivity is balanced with treating morale. its people right. • Employees are encouraged to stay • Team members are encouraged to interact within their own department. with people at all levels and functions. • Individual effort is encouraged. • Many rewards are team based.
  19. 19. Stories Rituals How Employees Learn Culture/ How we “reinforce” it reinforce” Language Material Symbols
  20. 20. Creating an Ethical Organizational Culture Organizational Characteristics – Maintaining High Ethical Standards  High in risk tolerance  Low to moderate in aggressiveness  Focus on means as well as outcomes Ethical Culture can be Created by the following Steps  Being a visible role model  Communicating ethical expectations  Providing ethical training  Visibly rewarding ethical acts and punishing unethical ones  Provide Protective Mechanism
  21. 21. Creating a Positive Organizational Culture Positive Organizational Culture  Builds on employee strengths  Rewards more than it punishes  Emphasizes individual vitality and growth
  22. 22. Case Study 2 Creating Innovative Organizational Culture - Business Week Magazine, 2007 In 3M 1. Recruiting and Retaining Talent 2. Creating a Challenging Environment 3. Knowledge Sharing 4. Rewarding Innovation 5. Mentors, Sponsors and Champions

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