Organization Culture
Organization Change
Syllabus
Organizational Culture
Meaning
Elements of Organizational Culture
Importance of Organizational Culture
Organizational Change
Meaning
Resistance to change
Approaches to Organizational Culture
Action Research Approach
Appreciative Inquiry Approach
Large Group Intervention Approach
Parallel Learning Structure Approach and
Ethical issues of Organizational Behaviour.
Organizational Culture-Meaning
Organizational culture has been described as the shared values, principles, traditions, and ways of doing things
that influence the way organizational members act. In most organizations, these shared values and practices have
evolved over time and determine, to a large extent, how “things are done around here”.
culture is a perception
It’s not something that can be physically touched or seen, but employees perceive it on the basis of what they
experience within the organization.
Organizational culture is descriptive
It’s concerned with how members perceive the culture and describe it, not with whether they like it.
Shared aspect of culture
Finally, even though individuals may have different backgrounds or work at different organizational levels, they
tend to describe the organization’s culture in similar terms.
Elements of Organizational Culture
Artifacts are the observable symbols and signs of an
organization’s culture.
Ex: The way visitors are greeted, the organization’s
physical layout, and how employees are rewarded.
Four broad categories of artifacts include
Organizational stories and legends,
Rituals and ceremonies
 Language and
Physical structures and symbols.
Understanding an organization’s culture requires the
assessment of many artifacts because they are subtle
and often ambiguous.
Elements of Organizational Culture
Organizational culture consists of shared values and
assumptions.
Image examines, how these shared values and
assumptions relate to each other and are associated with
artifacts.
Organizational culture consists of the values and
assumptions shared within an organization.
Values are stable, evaluative beliefs that guide our
preferences for outcomes or courses of action in a variety
of situations.
They are conscious perceptions about what is good or
bad, right or wrong. In the context of organizational
culture, values are discussed as shared values.
Elements of Organizational Culture
Shared values, which are values that people within the
organization or work unit have in common and place
near the top of their hierarchy of values.
Shared assumptions are nonconscious, taken-for-
granted perceptions or beliefs that have worked so well
in the past that they are considered the correct way to
think and act toward problems and opportunities.
For example, Alibaba’s 17 cofounders identified six
shared values that define the company’s culture:
customer first, teamwork, embrace change, integrity,
passion, and commitment.
Organizational culture also consists of shared
assumptions—a deeper element that some experts
believe is the essence of corporate culture. Shared
assumptions are nonconscious, taken-for-granted
perceptions or ideal prototypes of behavior that are
considered the correct way to think and act toward
problems and opportunities.
Elements of Organizational Culture
Shared assumptions are so deeply ingrained
that you probably wouldn’t discover them by
surveying employees.
Only by observing employees, analyzing their
decisions, and debriefing them on their actions
would these assumptions rise to the surface.
Elements of Organizational Culture-Artifacts
ORGANIZATIONAL STORIES AND LEGENDS
Organizational stories and legends serve as powerful social
prescriptions of the way things should (or should not) be
done.
Stories also produce emotions in listeners, and these
emotions tend to improve listeners’ memory of the lesson
within the story.
Stories communicate corporate culture most effectively
when they describe real people, are assumed to be true,
and are known by employees throughout the organization.
It advise people what to do or not to do.
Alibaba’s bold head-on competition with eBay permeate
strong organizational cultures.
ORGANIZATIONAL LANGUAGE
The language of the workplace speaks volumes about the
company’s culture.
How employees talk to each other, describe customers,
express anger, and greet stakeholders are all verbal symbols
of shared values and assumptions. “What we say—and how
we say it—can deeply affect a company’s culture”.
At Goldman Sachs, “elephant trades” are apparently large
investment transactions with huge profit potential, so the
investment firm allegedly encourages its salespeople to go
“elephant hunting” (seeking out these large trades from
clients). My muppet client didn’t put me in comp on the
trade we just printed. (client was a fool because he didn’t
compare prices).
The “muppet” label seems to reveal a culture with a
derogatory view of clients. When this language use became
public, Goldman Sachs scanned its internal emails for the
“Muppet” label and warned employees not to use the term.
Elements of Organizational Culture-Artifacts
RITUALS AND CEREMONIES
Rituals are the programmed routines of daily
organizational life that dramatize an organization’s
culture.
Ex: They include how visitors are greeted, how often
senior executives visit subordinates, how people
communicate with each other, how much time employees
take for lunch, etc.
For instance, BMW’s fast paced culture is quite literally
apparent in the way employees walk around the German
automaker’s offices. “When you move through the
corridors and hallways of other companies’ buildings,
people kind of crawl, they walk slowly,” observes a BMW
executive. “But BMW people tend to move faster.”
Ceremonies are planned activities conducted specifically
for the benefit of an audience. This would include publicly
rewarding (or punishing) employees or celebrating the
launch of a new product or newly won contract.
PHYSICAL STRUCTURES AND SYMBOLS
organization’s culture affects building decisions, but the size,
shape, location, and age of the resulting structure
subsequently reinforces or alters that culture.
Physical structures might support a company’s emphasis on
teamwork, environmental friendliness, hierarchy, or any other
set of values.
Desks, chairs, office space, and wall hangings (or lack of them)
are just a few of the items that might convey cultural meaning.
Alibaba’s recently built headquarters tries to symbolize and
reinforce the company’s culture, particularly its emphasis on
teamwork, collaboration, and community.
Organizational Culture- Importance
Control system.
Organizational culture is a
deeply embedded form of
social control that influences
employee decisions and
behavior.
Culture is pervasive and
operates non consciously.
Think of it as an automatic
pilot, nonconsciously directing
employees so their behavior is
consistent with organizational
expectations.
Social glue
Organizational culture is the social glue that
bonds people together and makes them feel
part of the organizational experience.
Employees are motivated to internalize the
organization’s dominant culture because it
fulfills their need for social identity.
This social glue attracts new staff and retains
top performers.
It also becomes the common thread that
holds employees together in global
organizations. “The values of the company
are really the bedrock—the glue which holds
the firm together,” says former Infosys CEO
Nandan Nilekani.
Sense making
Organizational culture helps employees
make sense of what goes on and why things
happen in the company.
Corporate culture also makes it easier for
them to understand what is expected of
them.
For instance, research has found that sales
employees in companies with stronger
organizational cultures have clearer role
perceptions and less role-related stress.
Organizational Change - Meaning
Organisational Change is the implementation of new procedures and
technologies intended to realign an organization with the changing
demands of its business environment or to capitalise on business
opportunities.
Resistance to Change
Understanding Resistance to Change?
The Resistance to change has many strange ways in an organisation like using
tantrums, organising collective protests, spreading rumours against proposed
changes etc in order to prevent change.
STRATEGY EXAMPLE WHEN APPLIED PROBLEMS
Communication Customer complaint
letters are shown to
employees.
When employees don’t feel an
urgency for change, don’t know
how the change will affect them, or
resist change due to a fear of the
unknown.
Time-consuming and
potentially costly.
Leaning Employees learn how
to work in teams as
company adopts a
team-based
structure.
When employees need to break old
routines and adopt new role
patterns.
Time-consuming,
potentially costly, and
some employees might
not be able to learn the
new skills.
Employee
Involvement
Company forms a
task force to
recommend new
customer service
practices.
When the change effort needs more
employee commitment, some
employees need to protect their
self-worth, and/or employee ideas
would improve decisions about the
change strategy.
Very time-consuming.
Might lead to conflict
and poor decisions if
employees’ interests are
incompatible with
organizational needs.
Strategies for Minimizing Resistance to Change
SRATEGY EXAMPLE WHEN APPLIED PROBLEM
Stress
Management
Employees attend
sessions to discuss their
worries about the
change.
When communication, training,
and involvement do not
sufficiently ease employee
worries.
Time-consuming and
potentially expensive.
Some methods may not
reduce stress for all
employees.
Negotiation Employees agree to
replace strict job
categories with multi
skilled job clusters in
return for increased job
security.
When employees will clearly
lose something of value from
the change and would not
otherwise support the new
conditions. Also necessary when
the company must change
quickly.
May be expensive,
particularly if other
employees want to
negotiate their support.
Also tends to produce
compliance but not
commitment to the
change.
Coercion Company president tells
managers to “get on
board” the change or
leave.
When other strategies are
ineffective and the company
needs to change quickly.
Can lead to subtler forms
of resistance, as well as
long-term antagonism
with the change agent.
Organizational Culture-Meaning
Organizational Culture-Meaning

Module Principles of management and organisation behaviour

  • 1.
  • 2.
    Syllabus Organizational Culture Meaning Elements ofOrganizational Culture Importance of Organizational Culture Organizational Change Meaning Resistance to change Approaches to Organizational Culture Action Research Approach Appreciative Inquiry Approach Large Group Intervention Approach Parallel Learning Structure Approach and Ethical issues of Organizational Behaviour.
  • 3.
    Organizational Culture-Meaning Organizational culturehas been described as the shared values, principles, traditions, and ways of doing things that influence the way organizational members act. In most organizations, these shared values and practices have evolved over time and determine, to a large extent, how “things are done around here”. culture is a perception It’s not something that can be physically touched or seen, but employees perceive it on the basis of what they experience within the organization. Organizational culture is descriptive It’s concerned with how members perceive the culture and describe it, not with whether they like it. Shared aspect of culture Finally, even though individuals may have different backgrounds or work at different organizational levels, they tend to describe the organization’s culture in similar terms.
  • 4.
    Elements of OrganizationalCulture Artifacts are the observable symbols and signs of an organization’s culture. Ex: The way visitors are greeted, the organization’s physical layout, and how employees are rewarded. Four broad categories of artifacts include Organizational stories and legends, Rituals and ceremonies  Language and Physical structures and symbols. Understanding an organization’s culture requires the assessment of many artifacts because they are subtle and often ambiguous.
  • 5.
    Elements of OrganizationalCulture Organizational culture consists of shared values and assumptions. Image examines, how these shared values and assumptions relate to each other and are associated with artifacts. Organizational culture consists of the values and assumptions shared within an organization. Values are stable, evaluative beliefs that guide our preferences for outcomes or courses of action in a variety of situations. They are conscious perceptions about what is good or bad, right or wrong. In the context of organizational culture, values are discussed as shared values.
  • 6.
    Elements of OrganizationalCulture Shared values, which are values that people within the organization or work unit have in common and place near the top of their hierarchy of values. Shared assumptions are nonconscious, taken-for- granted perceptions or beliefs that have worked so well in the past that they are considered the correct way to think and act toward problems and opportunities. For example, Alibaba’s 17 cofounders identified six shared values that define the company’s culture: customer first, teamwork, embrace change, integrity, passion, and commitment. Organizational culture also consists of shared assumptions—a deeper element that some experts believe is the essence of corporate culture. Shared assumptions are nonconscious, taken-for-granted perceptions or ideal prototypes of behavior that are considered the correct way to think and act toward problems and opportunities.
  • 7.
    Elements of OrganizationalCulture Shared assumptions are so deeply ingrained that you probably wouldn’t discover them by surveying employees. Only by observing employees, analyzing their decisions, and debriefing them on their actions would these assumptions rise to the surface.
  • 8.
    Elements of OrganizationalCulture-Artifacts ORGANIZATIONAL STORIES AND LEGENDS Organizational stories and legends serve as powerful social prescriptions of the way things should (or should not) be done. Stories also produce emotions in listeners, and these emotions tend to improve listeners’ memory of the lesson within the story. Stories communicate corporate culture most effectively when they describe real people, are assumed to be true, and are known by employees throughout the organization. It advise people what to do or not to do. Alibaba’s bold head-on competition with eBay permeate strong organizational cultures. ORGANIZATIONAL LANGUAGE The language of the workplace speaks volumes about the company’s culture. How employees talk to each other, describe customers, express anger, and greet stakeholders are all verbal symbols of shared values and assumptions. “What we say—and how we say it—can deeply affect a company’s culture”. At Goldman Sachs, “elephant trades” are apparently large investment transactions with huge profit potential, so the investment firm allegedly encourages its salespeople to go “elephant hunting” (seeking out these large trades from clients). My muppet client didn’t put me in comp on the trade we just printed. (client was a fool because he didn’t compare prices). The “muppet” label seems to reveal a culture with a derogatory view of clients. When this language use became public, Goldman Sachs scanned its internal emails for the “Muppet” label and warned employees not to use the term.
  • 9.
    Elements of OrganizationalCulture-Artifacts RITUALS AND CEREMONIES Rituals are the programmed routines of daily organizational life that dramatize an organization’s culture. Ex: They include how visitors are greeted, how often senior executives visit subordinates, how people communicate with each other, how much time employees take for lunch, etc. For instance, BMW’s fast paced culture is quite literally apparent in the way employees walk around the German automaker’s offices. “When you move through the corridors and hallways of other companies’ buildings, people kind of crawl, they walk slowly,” observes a BMW executive. “But BMW people tend to move faster.” Ceremonies are planned activities conducted specifically for the benefit of an audience. This would include publicly rewarding (or punishing) employees or celebrating the launch of a new product or newly won contract. PHYSICAL STRUCTURES AND SYMBOLS organization’s culture affects building decisions, but the size, shape, location, and age of the resulting structure subsequently reinforces or alters that culture. Physical structures might support a company’s emphasis on teamwork, environmental friendliness, hierarchy, or any other set of values. Desks, chairs, office space, and wall hangings (or lack of them) are just a few of the items that might convey cultural meaning. Alibaba’s recently built headquarters tries to symbolize and reinforce the company’s culture, particularly its emphasis on teamwork, collaboration, and community.
  • 10.
    Organizational Culture- Importance Controlsystem. Organizational culture is a deeply embedded form of social control that influences employee decisions and behavior. Culture is pervasive and operates non consciously. Think of it as an automatic pilot, nonconsciously directing employees so their behavior is consistent with organizational expectations. Social glue Organizational culture is the social glue that bonds people together and makes them feel part of the organizational experience. Employees are motivated to internalize the organization’s dominant culture because it fulfills their need for social identity. This social glue attracts new staff and retains top performers. It also becomes the common thread that holds employees together in global organizations. “The values of the company are really the bedrock—the glue which holds the firm together,” says former Infosys CEO Nandan Nilekani. Sense making Organizational culture helps employees make sense of what goes on and why things happen in the company. Corporate culture also makes it easier for them to understand what is expected of them. For instance, research has found that sales employees in companies with stronger organizational cultures have clearer role perceptions and less role-related stress.
  • 11.
    Organizational Change -Meaning Organisational Change is the implementation of new procedures and technologies intended to realign an organization with the changing demands of its business environment or to capitalise on business opportunities.
  • 12.
    Resistance to Change UnderstandingResistance to Change? The Resistance to change has many strange ways in an organisation like using tantrums, organising collective protests, spreading rumours against proposed changes etc in order to prevent change.
  • 13.
    STRATEGY EXAMPLE WHENAPPLIED PROBLEMS Communication Customer complaint letters are shown to employees. When employees don’t feel an urgency for change, don’t know how the change will affect them, or resist change due to a fear of the unknown. Time-consuming and potentially costly. Leaning Employees learn how to work in teams as company adopts a team-based structure. When employees need to break old routines and adopt new role patterns. Time-consuming, potentially costly, and some employees might not be able to learn the new skills. Employee Involvement Company forms a task force to recommend new customer service practices. When the change effort needs more employee commitment, some employees need to protect their self-worth, and/or employee ideas would improve decisions about the change strategy. Very time-consuming. Might lead to conflict and poor decisions if employees’ interests are incompatible with organizational needs. Strategies for Minimizing Resistance to Change
  • 14.
    SRATEGY EXAMPLE WHENAPPLIED PROBLEM Stress Management Employees attend sessions to discuss their worries about the change. When communication, training, and involvement do not sufficiently ease employee worries. Time-consuming and potentially expensive. Some methods may not reduce stress for all employees. Negotiation Employees agree to replace strict job categories with multi skilled job clusters in return for increased job security. When employees will clearly lose something of value from the change and would not otherwise support the new conditions. Also necessary when the company must change quickly. May be expensive, particularly if other employees want to negotiate their support. Also tends to produce compliance but not commitment to the change. Coercion Company president tells managers to “get on board” the change or leave. When other strategies are ineffective and the company needs to change quickly. Can lead to subtler forms of resistance, as well as long-term antagonism with the change agent.
  • 15.
  • 16.