Building Organizational Culture Pankaj Kumar IIM, Lucknow
Issues of Concern• Meaning of Organizational Culture• Measuring Organizational Culture• Building Organizational Culture
Do you really know yourOrganization’s Culture ?* What 10 words would you use to describe your company?* Around here what is really important?* Around here who gets promoted?* Around here what behaviours get rewarded?* Around here who fits and who does not?
The Meaning & Content• No Universal Definition.• Various Conceptual Frameworks.• Dimensions of OC.
Schein (1985)“ …a pattern of basic assumptions-invented,discovered or developed by a given group asit learns to cope with its problems of externaladaptation and internal integration-that hasworked well enough to be considered validand, therefore, to be taught to new membersas the correct way to perceive, think and feelin relation to those problems.”
Pareek (1995)“ … a cumulative preference of some states oflife over others (values), the predispositionsconcerning responses towards severalsignificant issues and phenomena (attitudes),organized ways of filling time in relation tocertain affairs (rituals), and ways ofpromoting desired behaviours and preventingundesirable ones (sanctions).”
Artifacts & creationTechnology Visible but often notArts decipherableVisible & AudibleBehavior Patterns Values Greater levels of awarenessBasic AssumptionRelationship to environmentNature of reality Taken for grantedTime & Space InvisibleNature of Human activities preconsciousNature of Human Relationship Levels of Culture and its interaction
Developing OC involves* Developing a strong corporate identity* Development of important values* Building healthy traditions* Developing consistent management practices
Cultural aspect of HRDconcerned with* Development of Appropriate OC* Creating conducive Org. Climate* Improving Communication* Evolving effective reward system
Strong Corporate Identitydevelops when employees have a sense of belonging,and feel proud of working with the organization,which develops as a result of interaction ofemployees with the organization.* Developing an attractive Induction Booklet* Films on success experiences in the organization* Company newsletters* Mobility of People
Developing important valuesValues of excellence and human considerationdevelop only by demonstrating these values inaction.* Surveys of Values and differences b/w espoused v/s practiced values* Special value orientation programmes* Examining the various systems operating in the organization* Special OD intervention in Cooperation and Collaboration
Building Healthy traditions &practicesTraditions are built in org. on the basis of importantFunctional rituals or celebrations* Induction programme for new entrant* Promotions as transition* Ritual associated with “old age” and retirement* Exceptional behaviour* Celebration of special individual & important organizational days
Types* Autocratic or feudal culture is characterized by centralized power concentrated in a few persons, and observation of proper protocol in relation to the person/s in power.* Bureaucratic culture is characterized by primacy of procedures and rules, hierarchy and distant and impersonal relationship.* Technocratic culture emphasizes technical / professional standards and improvement.* Entrepreneurial culture in concerned about achievement of results and providing excellent services to the customers.
Profile of OCCultures Focus Climate EthosAutocratic/ Proper Dependency+ All oppositeFeudal Protocol Affiliation values of OCTAPACEBureaucratic Rules & Control + safe playing, Regulations Dependency inertia, conflict & closedTechnocratic Perfection Expert power proaction, + Extension autonomy, collaboration, experimentationEntrepreneurial/ Results, Achievement OCTAPACEDemocratic/ Customers +ExtensionOrganic
ACQUIRE Basic new knowledge, facts, skills, process, concepts, values and beliefs etc..TEST EMBEDImplications of New knowledge throughconcepts in new reflection and practicesituations INTEGRATE New facts into existing concepts and generalization Learning Culture Model
Building Culture• Recruitment and selection.• Socialization.• Performance Evaluation.• Leadership. - Employee Motivation & Decision Making• Compensation Packages.• Grievance Handling.• Conflicts & Differences handling.• Discipline & Morale• Career Planing and Development
Changing Culture# Understand the environmental & other forces thatwill influence your future strategy# Determine what are the core values that have beenfundamental to your business identity, core purpose& success and that you will not compromise# Create a shared vision of what the company needsto become# Assess the existing culture & determine whatelements of culture need to change
# Determine what changes need to occur toimplement strategy and address the gaps# Define the role of senior management in leadingthe culture change# Craft an implementation plan with targets ofintervention, time lines, milestones &accountabilities# Communicate the need for change and plan forchange and create motivation and buy in among keystake holders
# Identify obstacles and sources of resistance anddevelop strategies for getting around them# Institutionalize, model and reinforce the changes inculture# Continually reassess the organization’s culture andestablish a norm of continuous learning andtransformation
Organizational Climate & Ethos# Achievement (concern for excellence)# Expert Power (concern for impact through expertise)# Extension (concern for relevance to larger goals and entities)# Control (concern for orderliness)# Affiliation (concern for maintaining good personal relations)# Dependency (concern for approval & maintenance of hierarchical order)* OCTAPACE