Man org session 9_org culture_26th july 2012
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Man org session 9_org culture_26th july 2012 Man org session 9_org culture_26th july 2012 Presentation Transcript

  • MANAGING ORGANIZATIONS Session 9: Organization Culture Sourav MukherjiPGP 2012-14 Section C & E Associate Professor of Organization & StrategyTerm 1:June-September 2012 Indian Institute of Management Bangalore, India
  • 2REFLECTIONS AFTER READING THE CASE ON GOOGLE  What was Google trying to achieve through its culture?  What were some of the positive impacts of its unique culture?  What were the key problems? Why do you think these problems were arising?  Should Google change its culture ? In what way ? © S Mukherji
  • 3DEFINING AND UNDERSTANDING CULTURE A pattern of basic assumptions, invented, discovered and developed by a group as it learns to cope with its problems of external adaptation and internal integration – that has worked well enough in the past to be considered valid, and therefore, to be taught to new members as the correct way to perceive, think and feel in relation to those problems Implicit rules of engagement and interaction that are not formalized. Has a distinct social as well as an instrumental dimension. Inspires employees to perform beyond what can be controlled or monitored. Commitment beyond compliance. Promotes collaboration by creating a collective identity and belongingness. Controls thoughts and actions in order to align individual efforts towards collective goal. © S Mukherji
  • ORGANIZATION CULTURE NEEDS TO BE VIEWED 4AT MULTIPLE LEVELS Artifacts & Creations Physical & social environment Technology Visible but often not decipherable Art V Visible & audible Easy to obtain, difficult to interpret Behavioral patterns Values V Greater level of awareness • espoused values Basic Assumptions Relationship to environment Taken for granted V • invisible Nature of reality Time & Space • preconscious Nature of human beings Nature of human activities Nature of human relationships © S Mukherji
  • 5BASIC ASSUMPTION: ILLUSTRATIONS Cultural Approaches A B CWhat is the character Human beings Mixture of good Human beings are goodof human nature ? are evil and evil by natureWhat is the relationship of Human beings are In harmony with Human beingshuman beings to nature ? subject to nature nature dominate natureWhat is the temporal focus To the past To the present To the futureof life ?What is the modality of A spontaneous Emphasizes Emphasizeshuman activities? expression in impulse development of all measurability of all and desires aspects of self accomplishmentsWhat is the relationship of Lineal – group goals Collateral – group Individual – individualhuman beings with one are primary and an goals are primary. goals are mostanother ? important goal is Continuity through important continuity through time not critical time © S Mukherji
  • 6MEANS OF SUSTAINING AND COMMUNICATING ORG. CULTURE Three dominant methods of Other implicit ways of communicating building and sustaining culture organizational culture • Selection • Stories - does the candidate ‘fit’ well - narrative of events about into the organization founders, key decisions - similarity in values - anchor the present in the past - is there any need to change - explanations of current practices • Action of senior management • Rituals - establish norms of behaviour - recognition and award ceremonies - what actions are appreciated - events that symbolically express fetches payoff in the long run and reinforce key values of the • Socialization organization - orientation of new employees • Material symbols - ‘boot camp’ - design and physical layout of space and - continues right throughout building the career - executive perquisites • Language - jargons as a mark of distinction - members attest the culture by acceptance © S Mukherji
  • CULTURAL TRADEOFFS BETWEEN 7SOCIALIBILITY AND SOLIDARITY Employees have high corporate Rituals, ceremonies. identity. Equitable sharing of risk Informal dominates and rewards. Cultural and market Concern for consensus based controls. Cliques, groupthink Ideal state, difficult to attain in commercial organizations Sociability : Friendliness, Non-instrumental NETWORKED COMMUNAL Common attitudes, interests Builds over time Focus on business objectives FRAGMENTED MERCENARY Demarcation between private and professional Low tolerance of failure Low identification with Cooperation and sharing organization, colleagues. does not happen easily Task is individualistic, Bureaucratic controls Low interdependence Market based controls Solidarity :Common objective, instrumental © S Mukherji
  • 8CULTURE IN MULTINATIONAL ENTERPRISE Multinationality as a State of Mind EthnocentricHome Country /Parent Focus Geocentric Polycentric Host Country / Subsidiary FocusSource: The Tortuous Evolution of the Multinational Corporation, H V Perlmutter © S Mukherji
  • 9CULTURE IN MULTINATIONAL ENTERPRISE Multinationality as a State of Mind • Assume inherent superiority Ethnocentric of the parent organizationHome Country / • Simple products to be manufacturedParent Focus abroad, complex products can only be made in home country • Home country processes , measurement criteria are applied to Geocentric all subsidiaries under the assumption that home country has ‘best practices’ • Employees from home country Polycentric occupy key positions Host Country / Subsidiary FocusSource: The Tortuous Evolution of the Multinational Corporation, H V Perlmutter © S Mukherji
  • 10CULTURE IN MULTINATIONAL ENTERPRISE Multinationality as a State of Mind Ethnocentric • Local country conditions are different and foreigners are difficult toHome Country / understandParent Focus • Loosely connected group with quasi independent subsidiaries controlled by financial control systems Geocentric • Practices, performance standards, incentives, training methods vary according to local needs • Employees of local nationality for key local positions - local ethnocentricism Polycentric Host Country / Subsidiary FocusSource: The Tortuous Evolution of the Multinational Corporation, H V Perlmutter © S Mukherji
  • 11CULTURE IN MULTINATIONAL ENTERPRISE Multinationality as a State of Mind • Seek the best employees to solve Ethnocentric organizational problems, irrespectiveHome Country / of their nationalityParent Focus • Balance between global and local objectives – neither a satellite, nor an independent national entity • Which place in the world is the best Geocentric place to do a particular activity, such as raising capital, manufacturing or doing research ? • Reward system that motivates Polycentric employees to work for global objectives Host Country / Subsidiary FocusSource: The Tortuous Evolution of the Multinational Corporation, H V Perlmutter © S Mukherji