2. ORGANISATIONAL CULTURE
An organization is a man made
system. It aims at coordinating and
continuing group efforts for
achieving common goals. The
operations of an organization are
carried out, authority is exercised ,
relationship is maintained and role is
played within a framework of those
values and beliefs. These values and
beliefs are shared by all the
employees and constitute the
culture of the organization
3. Definition
According to J.C.Spender : “
Organizational culture is a belief
system shared by organization
members”
C.P.Reilly Defines it as “ Strong
widely shared common values”
4. Characteristics of
Organizational Culture
• Values and Beliefs
• Followed by all members
• Organizational Culture may be Implicit
/ Explicit
• Organizational Culture is Dynamic in
Nature
• Communication of Organizational
Culture
• Integration & Coordination of
individual actions with a group
• Culture Differences
5. Process Of Creating
Organizational Culture
To create an Organizational
Culture is not easy task. At the
time of formation of an
organization, the promoters are
fully concentrated on designing
the process of the organization
and distributing goods & services.
It is after the completion of these
that they start thinking about the
culture of the organization. The
process of creating an
Organizational Culture involves
setting the tone of organizational
activities with the external
environment.
6. It also includes establishing implied rules for the behavior of its
members. On the basis of these rules , it is judged whether the pattern
of their working behavior is acceptable or not. The set of values &
norms determined by the promoters indicates the vision of the
organization for the future.
Examples
1. General electric co.
Organizational Culture
is “ Progress is our most
important product”
2. Delta Airlines – “ The
Delta Family feeling”
3. IBM - “ Service”
7. Although there is no set process for
creating OC, generally organizations
adopt the following general process
for building a culture particularly in
a newly-formed organization. This
process consists of the following
steps.
1. Developing strategic values
2. Establishing cultural values
3. Developing vision or the future
image of the organization
4. Making implementation
programmes
5. Reinforcing & Sustaining
culture.
9. u Academy
An Organization that provides
employees opportunities to master
many jobs & move on to others can
be called an academy
E.g. :- coca-cola, IBM
10. u Club
Organization that lay emphasis on
getting people to fit in & be loyal &
values the age & experience of
employees can be called clubs
11. u Baseball Team
Organization in high-tech fields ( E.g.
:- Between department firms &
biotech companies ) & professional
fields ( E.g. :- Investment, Banking,
Law & Accounting ) have highly
skilled employees who tend to take
risks are handsomely rewarded for
their success. They have a culture
that can be compared with the
culture of a professional baseball
team with stars who are welling to
be traded to another baseball team
if the compensation is right.
12. u Fortress
An organization that is facing hard
times & is preoccupied with survival
fits into the “fortress culture”. A
fortress may be a stimulating place to
work for those who thrive on the
challenges of turning around a
company.
13. Functions of
Organizational Culture
Culture to an organization is an
intangible force, with far reaching
consequences. It plays several
important roles in organization.
Culture gives a sense of identity to its
members
Culture helps to generate
commitment among employees
Culture serves to clarify & Reinforce
standards of behavior