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Oganizational Culture

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Organizational Culture can be defined as "the personality of an organization, reflecting the artifacts, values, assumptions , and norms of people within the organization as well as their behaviors."
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Oganizational Culture

  1. 1. Organizational Culture
  2. 2. OrganizationCultureis seenas beingcentral to organizational success ratherthanfactors suchas strategy, structureand politics.
  3. 3. Organizational Culture• The pattern of shared values, beliefs andassumptions considered to be theappropriate way to think and act within anorganization.– Culture is shared– Culture helps members solve problems– Culture is taught to newcomers– Culture strongly influences behaviour
  4. 4. Prentice Hall, 2001 Chapter 17 4Characteristics of Organizational CultureCharacteristics of Organizational Culture• Norms• Innovation and risk taking• Attention to detail• Outcome orientation• People orientation• Team orientation• Aggressiveness
  5. 5. Characteristics of OrganizationalCulture• NormsIt relates to standards of behaviour& guidelines onthe quantum & quality of work that every employeein an organization has to deliver.• Innovation and risk-takingThe degree to which employees areencouraged to be innovative and take risks.• Attention to detailThe degree to which employees are expectedto exhibit precision, analysis, and attention todetail.
  6. 6. • Outcome orientationThe degree to which management focuses onresults or outcomes rather than on techniqueand process.• People orientation– The degree to which management decisionstake into consideration the effect of outcomeson people within the organization.• Team orientation– The degree to which work activities areorganized around teams rather thanindividuals.
  7. 7. • Aggressiveness– The degree to which people are aggressiveand competitive rather than easygoing.• Stability– The degree to which organizational activitiesemphasize maintaining the status quo incontrast to growth.
  8. 8. An Ideal Organization Culture
  9. 9. An Ideal Organization Culture• Creating equal opportunities for employees to perform.• Showing no discrimination in reward or punishment for similarjobs done.• Rewarding or reprimanding an employee accordingly.• Understanding the individual as a person and keeping oneselfinformed on their personal and social aspects efficiency as aperson.• Standing by employees in terms of crisis.• Not bending organizational rules but allowing room for flexibilityand humaneness.• Allowing true delegation of responsibility or authority.• Changing roles and responsibilities appropriately.
  10. 10. Prentice Hall, 2001 Chapter 17 10Do Organizations Have UniformCultures?Do Organizations Have UniformCultures?CoreCoreValuesValuesSubculturesSubculturesDominantDominantCultureCulture
  11. 11. • Dominant culture expresses the corevalues that are shared by a majority of theorganization’s members.For example: people originating fromEurope, particularly Britain, have held powersince the founding of this country, the AngloEuropean Christian culture is the dominantculture of the United States
  12. 12. • Subcultures tend to develop in largeorganizations to reflect common problems,situations, or experiences.• For Example: There are many “local”cultures in one organization. It meanseach culture is divided into different parts,such as levels, branches, professional,regional, national and other groups. Theycan coexist under the roof of generalculture.
  13. 13. Strong vs. Weak Cultures• Strong – Great influence on the behaviorof organization member.• Strong organizational culture facilitates– goal alignment– high level of employee motivation– better learning from past
  14. 14. • Weak – dominant values are short livedand held mainly by upper management.• Organization member do not subscribe tothe shared belief, values and norms.• Weak culture has negative impact onemployee as it is directly linked toincrease in turnover
  15. 15. Strong versus Weak Cultures• Sharedness• Intensity
  16. 16. Types of Cultures• Clan Culture• Entrepreneurial Culture/ Adhocracy• Bureaucratic Culture / Hierarchical Culture• Market Culture
  17. 17. FlexibleStableInternal ExternalClanCultureBureaucraticCulture /HierarchicalCultureMarketCultureEntrepreneurialCulture/AdhocracyFormalControlOrientationForms of AttentionTypes of Cultures
  18. 18. Types of Cultures• The Clan Culture– A very friendly place towork where peopleshare a lot ofthemselves. It is like anextended family.
  19. 19. • Bureaucratic culture ischaracterized by primacyof procedures and rules,hierarchy and distantand impersonal relationship.
  20. 20. Entrepreneurial culture isconcerned about achievement ofresults and providing excellentservices to the customers. Herepeople stick their necks out and takerisks.
  21. 21. • The Market Culture– A results orientedorganization whosemajor concern is withgetting the job done.People are competitiveand goal-oriented.
  22. 22. What Organizational Culture Does?
  23. 23. Functions of OrganizationalCulture• Boundary defining Role• Creates a sense of Identity• Acts as source Collective Commitment• Stability of Social System• Shared meaning & control mechanism
  24. 24. Dysfunctions of OrganizationalCulture• Barrier to Change: When organization isundergoing change, culture may impede change• Barrier to Diversity: Strong culture put considerablepressure on employees to conform• Barrier to Mergers and Acquisitions: Merging thecultures of two organizations can be difficult, if notimpossible
  25. 25. Sustaining OrganizationalCulture• Pre selection: to appoint individuals who fits intothe organization culture.• Socialization: enculturation process by which learnthe culturally accepted values , beliefs and behavior.• Incorporation / Rejection: depends on socializationprocess whether member is accepted by the workgroup or has loss key of goal, value and assumption
  26. 26. Prentice Hall, 2001 Chapter 17 26How A Culture BeginsHow A Culture BeginsIndoctrinationIndoctrination& Socialization& SocializationHiring andHiring andRetentionRetentionBehavior andBehavior andRole ModelingRole Modeling
  27. 27. Prentice Hall, 2001 Chapter 17 27A Socialization ModelA Socialization ModelSocialization Process OutcomesPrearrivalPrearrivalPrearrivalPrearrivalMetamorphosisMetamorphosisMetamorphosisMetamorphosisEncounterEncounterEncounterEncounterProductivityProductivityProductivityProductivityCommitmentCommitmentCommitmentCommitmentTurnoverTurnoverTurnoverTurnover
  28. 28. Entry Socialization Options• Formal vs. Informal• Individual vs. Collective• Fixed vs. Variable• Serial vs. Random• Investiture vs. Divestiture
  29. 29. Method of Learning Culture• Artifacts: ex: Space, equipment, rules etc.• Language: Jokes, Stories, metaphors, myths• Behavior pattern: Rituals, ceremonies, Celebrations• Symbols: logos , Product , policies• Heroes: Role models• Norms of behavior: this norm is developed over period of timelike negotiation• Believe, values & attitude:• Basic assumption: Perception, feeling , emotions• History: Culture is understood to be product of history.
  30. 30. Induction Training• The corporate induction program is the first meetingbetween an organization and a new joinee. Theinduction program gives an inductee a brief insightinto the vision, mission, policies, facilities andculture of the organization.• The induction program helps in mitigating anydoubts in the mind of the employee.• It also motivates an employee to take up his new jobfeeling confident.• Research has shown that well thought out inductionprograms lead to reduced staff turnover and costs.
  31. 31.
  32. 32. If an Induction Program is NotProperly Planned, an Employee:• May develop low morale.• Does not work to full potential.• Can become a poor team worker.• May start looking for a new job.
  33. 33. Corporate Induction ProgrammesExamples:• Reliance India LimitedAt Reliance, the induction program helps the newemployee to get a broad overview of various businessesand services. The inductees interact with people atvarious levels and functions to get an insight into theorganization. The induction program helps the employeeto be a part and adjust to the new environment. Theprogram also provides an overview of the organizationas a whole. It also provides an opportunity to the newentrant to inculcate the original values and ethics as wellas the managerial style of functioning at Reliance.
  34. 34. Infosys• Infosys has a one week inductionprogram. It is a mix of interaction with topmanagement and training on soft skillsand corporate etiquette. After thecompletion of the induction program thetrainees move onto technical training.
  35. 35. Wipro• In Wipros induction program every new employee isexposed to the various functions in the organizationand also to the values and culture of theorganization. Each of the induction programs is ledby senior managers whose responsibility is to sharethe organizations vision, beliefs and values. The topmanagement comprising of heads of Marketing,Finance, HR and Quality frequently take a fewsessions and spend time with employees in theinduction program. This gives an opportunity to thenew employees to interact and learn about theorganization and its developments.
  36. 36. Cadbury India Limited• Managers who are promoted to seniorleadership roles at Cadbury have a three-day reinduction program within one monthof moving into that new role. In thisprogram the employee interacts withmanagers who share their experience ofthat position. This program helps theemployee know about the expectationsand responsibilities of the new role.
  37. 37. Cultural Modifications• Ethics in Workplace• Developing a Customer ResponsiveCulture• Importance of Spirituality
  38. 38. Drawback’s while changing Org.culture• Requires deep change in Management style,Organization style , systems and rewardsystems• Time taking process (3 – 5 years)• Creates turmoil and stress among employee• Decrement in performance at first, which oftencauses the leadership to abandon the efforts
  39. 39. Samsung – Cultural ChangeSamsungs chairman, Lee Kun Hee
  40. 40. Samsung – Cultural Change• In 1993, Samsungs chairman, Lee Kun Hee, went on aworld tour to figure how his company was doinginternationally.• Lee had been running Samsung for six years at thatpoint. He took over for his father, who founded Samsungin 1938. From 1987, when Lee took over, to 1993,Samsung grew by two and half times.• Lee wasnt satisfied. He wanted the company to bebigger.• He wanted it be like G.E. — an internationallyrecognized industrial powerhouse. And he wanted it tohappen sooner than later. He set a deadline of 2000
  41. 41. Speech by Lee Kun Hee’s• Top global companies are reeling and (Im) not surewhat will happen to Samsung.• Most products and businesses that represent Samsungtoday will be gone in 10 years time.• We should start again. Theres no time to waste."The most famous quote that came fromLee Kun Hee’s the speech was,"Change everything but your wife andchildren."
  42. 42. Change• Samsung introduced a focus on innovation.• Into a homogeneous workforce, Samsung introducedoutsiders who could not speak the language and wereunfamiliar with the company’s culture.• Into a Confucian tradition of reverence for elders, Samsungintroduced merit pay and promotion, putting some youngpeople in positions of authority over their elders.• It has been a path marked by both disorientingdisequilibrium and intense exhilaration.
  43. 43. Result• Samsung Electronics, is now one of the worlds leadingdevelopers and producers of semiconductors, and waslisted in Fortune magazines list of the 100 largestcorporations in the world in 2007. Today Samsungsrevenues are now 39 times what they were in 1987, itgenerates around 20 percent of South Koreas GDP, andLee is the countrys richest man• Annual profit this year is likely to top $22 billion, up 45percent from 2010
  44. 44. Creating an Ethical OrganizationalCulture• Be a visible role model• Communicate ethical expectations• Provide ethical training• Visibly reward ethical acts and punishunethical ones• Provide protective mechanisms
  45. 45. Creating a Customer ResponsiveCulture• Companies recognize this is the path tocustomer loyalty andlong-term profitability
  46. 46. Key Variables Shaping Customer-ResponsiveCultures• Type of employees• Low formalization• Widespread use of empowerment• Good listening skills• Role clarity• Employees who exhibitorganizational citizenshipbehavior
  47. 47. Managerial Action• Selection• Training andsocialization• Structural design• Empowerment• Leadership• Performance evaluation• Reward systems
  48. 48. Spirituality and Culture• Spirituality – employees have a personalor inner life that nourishes and isnourished by performing relevant,meaningful, and challenging work.• Workplace spirituality is not the same asreligion• Spirituality is a path, is personal andprivate, contains elements of manyreligions, and points to a person’s self-inquiry
  49. 49. Characteristics of SpiritualOrganizations• Strong sense of purpose• Focus on individual development• Trust and openness• Employee empowerment• Toleration of employeeexpression
  50. 50. Books on Cultural change
  51. 51. Please suggest more books on culturalchange and share reviewsThank you

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