Organizational Behaviour

1. Factors Contributing to
Develop An
Organizational Culture

2. INTRODUCTION
 Organizational Culture is the totality of
beliefs customs, traditions and values
shared by the members of the
organization.
 Corporate culture can be looked at as
a system.
 It is important to consider culture while
managing change in the organization.

3. What must be for culture to
exist?
 It must be shared by the vast majority
of members of a group or society;
 It must be passed on from generation
to generation
 It must shape behavior and
perceptions.

4. Importance of
Organizational Culture
 Talent-attractor
 Talent-retainer
 Engages people
 Creates energy and momentum
 Changes the view of “work”
 Creates greater synergy
 Makes everyone more successful

5. CREATING & SUSTAINING
ORGANIZATIONAL
CULTURE

6. Factors vital in developing the
Organizational Culture
 Founders and owners
 Beliefs, goals and values
 Customers and the external parties
 Goals and objectives of the
organization
 History and tradition of the company
 The management and its style of
handling the employee
 Availability of resources

7. Factors vital in developing the
Organizational Culture
 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
 With the organizational success, the
founder's personality is embedded in the

8. Selection
 Explicit 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
judgments.
 Selection becomes a two-way street‟
as it provides information about the

9. Top Management
 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.

10. Socialization
 New employees are not familiar with the
organizational culture and are potentially
likely to disturb the existing culture.
 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.

11. Socialization Process
 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 - 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.

12. Learning the Culture
 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.

13. Values
 Values are the basic beliefs people
hold that specify general preferences
and behaviors, and define what is right
and wrong.
 Cultural values are reflected in a
society’s morals, customs and
established practices

14. Values in Organization
 Values represent the guiding principles of
the organization’s culture, including what
guides members’ priorities and actions
within the organization.
 Values are an increasingly important
component in strategic planning because
they drive the intent and direction of the
organization’s leadership.

15. American Express Values
 Customer Commitment: We develop
relationships that make a positive
difference in our customers’ lives.
 Quality: We deliver premium value to our
customers.
 Integrity: We uphold the highest
standards in all our actions.
 Teamwork: We work together, across
boundaries, to meet the needs of our
customers.

16. American Express Values
 Respect for People: We value our
people, encourage their development
and reward their performance.
 Good Citizenship: We’re good citizens in
the communities in which we live and
work.
 A Will to Win: We exhibit a strong will to
win in the marketplace and in every
aspect of our business.
 Personal Accountability: We are
personally accountable for delivering on
our commitments

17. Relationship between culture
and
organizational performance
 Organizational culture has the
potential to enhance organizational
performance, individual satisfaction,
the sense of certainty about how
problems are to be handled.
 Culture serves as a control
mechanism to channel behavior
towards desired behaviors and to
prevent undesired behaviors

18. Conclusion
 Culture adapts to diverse
circumstances.
 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.

19. References
 www.cultureiq.com
 www.torbenrick.eu
 www.managementstudyguide.com
 www.tutor2u.net

20. Thank You