Culture is the set of important understanding that members of an community share in common.
It consists of way of thinking, feeling & reacting that are acquired by language & symbols that creates distinctiveness among human group.
Eg: Tata Group has an ethical culture.
Employees of Microsoft follows the culture of doing the work by itself.
Innovation and Risk Taking
The degree to which employees are encouraged to be innovative & take risk.
Attention to Detail
The degree to which employee are expected to exhibit accuracy, analysis & attention to details.
The degree to which management focuses on result or outcomes rather than on the techniques & processes used to achieve those outcome.
The degree to which management decision take into consideration the effect of outcome on people within the organization.
The degree to which work activities are organized around team rather than individual.
The degree to which people are aggressive & competitive rather than easygoing.
The degree to which organizational activities emphasize maintaining the status in contrast to growth
Sub-cultures and Dominant culture
In authoritarian culture, there is a centralization of power with the leader & obedience to orders & discipline are stressed.
Any disobedience is punished severely.
It is assumed that leader know what is good for the organization & always acts in its interest.
Participative culture tends to emerge where most organizational members see themselves as equals & take part in decision-making.
This culture exhibits the values of bureaucracy.
Authority flows down from the top of the organisation to the lower levels
Communication flows through prescribed channels.
There is great departmental loyalty.
It resist change and innovation.
Emphasis on task accomplishment, team work and free flow of communication.
There is widespread understanding of the problem, threats & opportunities the organization is facing.
There is Flexibility, Change & Innovation.
Sub-culture & Dominant Culture
A subculture is a group of people with a culture (whether distinct or hidden) which differentiates them from the larger culture to which they belong.
Organizational culture emerges when there is an integration of all departments (subculture) into a whole.
Subcultures may be even in conflict with the dominant culture.
National cultural values are learned early, held deeply and change slowly over the course of generations.
Organizational culture, on the other hand, is comprised of broad guidelines which are rooted in organizational practices.
A nation’s culture is similar to that of an organization as it is comprised of the symbols, values, rituals, and traditions of the people living in a particular region.
Cultures usually differ in relationships between the individual and society, ways of dealing with conflict, relationships to authority, and conceptions of class and gender. All of these things are comparable to organizational culture, just on a grander scale.
Culture creation occurs in three ways:
Employees hire and keep employees with same thinking
They indoctrinate and socialize the employees with the organization’s thinking
The founder’s behavior acts as a role model for the employees.
Culture generally begins with the founder who articulates & implements particular ideas & values.
If these ideas leads to success they are institutionalized and implemented in organization as its culture.
Three Levels of Organizational culture.
Artifacts (man-made objects):
Three Practices within the organization for sustaining a culture are:
Actions of top management
Definite goal – identifying and hiring individuals having knowledge, skills and abilities to perform the jobs successfully.
Individuals having values consistent with those of the organization are selected as per the decision maker’s judgements.
Such employees will perpetuate the traditions, common beliefs & values of the organization.
The actions of top management establishes the norms for the organization as to:
Whether risk taking is desirable
How much freedom managers should give to their subordinates
What actions will pay off in terms of pay rises, promotions and other rewards, etc.
The process through which the employees are proselytized about the customs and traditions of the organization is known as socialization.
It is the process of adaptation by which new employees are to understand the basic values and norms for becoming ‘accepted’ members of the organization.
Socialization is a process made up of three stages:
Pre-arrival - All the learning occurring before a new member joins.
Encounter - The new employee sees what the organization is really like and confronts the possibility that expectations and reality may diverge.
Metamorphosis (Transformation) - The relatively long-lasting changes take place. The new employee masters the skills required for the job, successfully performs the new roles, and makes the adjustments to the work group’s values and norms.
Stories – Depicting the past events of the organization. Some organizations actually try to manage this element of culture learning.
Rituals – Repetitive sequential activities reinforcing the values of the organization.
Material Symbols – Conveying social equality, desired organizational behavior, etc. by the top management.
Language – Acceptance and preservation of culture.
Managers need to understand the nature and role of culture.
Managers must understand the importance of culture for organizational change.
Corporate culture also impacts the day-to-day decision-making of the organization.
Finally it can be well said that organizational culture serves as a control mechanism that control , guides , and shapes the attitude and behavior of the employees.