Orgainzational Culture

1. Sudheer Gadde September 18, 2016
ORGANIZATIONAL
BEHAVIOR
ORGANIZATIONAL CULTURE

2. PAGE 1
Acknowledgement
"I have taken efforts in this project. However, it would not have been possible without the
kind support and help of many individuals and organizations. I would like to extend my sincere
thanks to all of them. I am highly indebted to (IBS BUSINESS SCHOOL) for their guidance and
constant supervision as well as for providing necessary information regarding the project &
also for their support in completing the project. I would like to express my gratitude towards
my parents & member of (IBS BUSINESS SCHOOL) for their kind co-operation and
encouragement which help me in completion of this project. I would like to express my special
gratitude and thanks to persons for giving me such attention and time.
My thanks and appreciations also go to my friends in developing the report and people who
have willingly helped me out with their abilities."
Sudheer Gadde.

3. PAGE 2
What is Organizational Culture?
Organizational culture refers to a system of shared meaning held by
members that distinguishes the organization from other organizations.
CHARACTERISTICS
1. Innovation and risk taking: The degree to which employees are encouraged to be
innovative and take risks.
2. Attention to detail: The degree to which employees are expected to exhibit precision,
analysis, and attention to detail.
3. Outcome orientation: The degree to which management focuses on results or
outcomes rather than on the techniques and processes used to achieve them.
4. People orientation: The degree to which management decisions take into
consideration the effect of outcomes on people within the organization.
5. Team orientation: The degree to which work activities are organized around teams
rather than individuals.
6. Aggressiveness: The degree to which people are aggressive and competitive rather
than easygoing.
7. Stability: The degree to which organizational activities emphasize maintaining the
status quo in contrast to growth.
Culture Is a Descriptive Term
Organizational culture shows how employees perceive the characteristics of an
organization’s culture, not whether they like them-that is, it’s a descriptive term. This is
important because it differentiates culture from job satisfaction. Although the two terms
have overlapping characteristics, keep in mind that organizational culture is descriptive,
whereas job satisfaction is evaluative.
Do OrganizationsHave Uniform Cultures?
Organizational culture represents a common perception the organization’s members hold.
We should therefore expect individuals with different backgroundsor at different levels in
the organization to describe its culture in similar terms.
That doesn’t mean, however, that there are no subcultures. Most large organizations have a
dominant culture and numerous subcultures. A dominant culture expresses the core values a
majority of members share and that give the organization its distinct culture personality.
Subcultures tend to develop in large organizations to reflect common problems or experiences
members face in the same department or location. The purchasing department can have a

4. PAGE 3
subculture that includes the core values of the dominant culture plus additional values unique to
members of that department.
Culture as a Liability
Culture can enhance organizational commitment and increase the consistency of
employee behavior, clearly benefits to an organization.
Institutionalization: When an organizationundergoesinstitutionalizationand becomes
institutionalized-that is, it is valued for itself and not for the goods or services it produces-
it takes on a life of its own, apart from its founders or members.
Barriers to Change Culture is a liability when the shared values don’t agree with those
that further the organization’s effectiveness.
Barriers to Diversity Hiring new employees who differfrom the majority in race, age,
gender, disability, or other characteristics creates a paradox.
Barriers to Acquisitions and Mergers Historically, when management looked at
acquisition or merger decisions, the key factors were financial advantage and product
synergy. In recent years, cultural compatibility has become the primary concern.

5. PAGE 4

6. PAGE 5

7. PAGE 6
Mergers & Acquisitions
Over the past mergers have become a global phenomenon and a popular strategic choice
for companies’ growth and expansion. A number of scholars argue that mergers and
acquisitions of companies are a common and important response to globalization and the
changing market environment. Despite the increasing popularity of mergers and
acquisitions, it has been reported that, more than two-thirds of large merger deals fail to
create value for shareholders in the medium term.
The rate of M&A failure range from 55 to 70 percent. Researchers proposed many
explanations for such high rate of failures, yet one explanation –often underestimated- is
of special interest to us: the cultural element in M&A integration processes. After
reviewing pertinent literature, we believe that underestimating the importance of the
cultural element is one of the key issues that may help explain the failure of many M&A.
Research studies have found that as many as 75 % of mergers and acquisitions fail to
produce their intended financial results because people do an inadequate job of engaging
employees and integrating the culture of merging organizations.
Organizationalculture
Something that it is easy to forget, is that organizations are composed of people. Changing
external aspects such as name, brand, colors, technology, etc. also involve changing a
symbolic world that used to be part of many people’ own identity. This is one of the main
reasons why M&A are difficult processes. They involve changes at all levels, starting by the
individual level that affect the system of believes that the person is used to address.
Organizational culture focuses on how organizational participants experience and make
sense of organizations. It is defined as basic assumptions and beliefs that operate
unconsciously and are shared by members of an organization. The concept of “shared”
meaning is central in understanding culture. Organizational culture is learned by group
members who pass it on to new group members through a variety of socialization and
communication processes. The degree of cultural fit between two companies is a measure
of the “shock” that employees will experience by entering a new organizational
environment. This is called as clash of cultures.

8. PAGE 7
Conclusion
Aircel, R-Com are creating the largest telecom company by merger. Both the companies have
culture difference at the starting point i.e. they both are competitors. They have a same strategy to
grow in the market. This merger is changing the culture of the Reliance Communication as it has
its own culture which is once divided into two parts and own it is further dividing/changing to
other as my opinion on this merger “Reliance Communication will face problem by way culture of
employees, a same side for Aircel. But for the new firm which is coming out doesn’t have any issues
about culture i.e. it will start a new culture.