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Organizational culture

This document discusses organizational culture and provides examples. It begins by defining an organization and culture. Organizational culture is described as the informal values, norms and beliefs that control how people interact within an organization. Characteristics of organizational culture like innovation, risk-taking and people orientation are discussed. The functions of culture in defining boundaries, conveying identity, and enhancing stability are outlined. How culture can create climate and be maintained through selection, socialization, and top management is explored. The impact of culture on performance and methods for studying culture are presented. A case study examines claims that Toyota's problems were due to its insular culture versus evidence that driver error was the primary cause of unintended acceleration.

Leadership & Management◦
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Organizational Culture
HELLO! Presented By: Debasish Ghadei Manvir Anish 2
Organization ▸ A social unit of people that is structured and managed to meet a need or to pursue collective goal. ▸ In simple words, different individuals come together, from a group for a collective purpose or objective. 3
Culture ▸ Something made-up of the beliefs, ideologies, principles and values of people living in the society. ▸ It determines the direction of the ‘Thinking and the Action’ of the people. 4
Organizational Culture The informal set of values, norms, and beliefs that control the way people and groups in an organization interact with each other and with people outside the organization. 5
What Is Organizational Culture? ▸ Characteristics: 1. Innovation and risk taking 2. Attention to detail 3. Outcome orientation 4. People orientation 5. Team orientation 6. Aggressiveness 7. Stability 6
7 What Is Organizational Culture?
What Is Organizational Culture? 8
What Is Organizational Culture? ▸ Culture Versus Formalization A strong culture increases behavioral consistency and can act as a substitute for formalization. ▹ Organizational Culture Versus National Culture 1. National culture has a greater impact on employees than does their organization’s culture. 2. Nationals selected to work for foreign companies may be atypical of the local/native population. 9
What Do Cultures Do? ▸ Culture’s Functions: 1. Defines the boundary between one organization and others. 2. Conveys a sense of identity for its members. 3. Facilitates the generation of commitment to something larger than self-interest. 4. Enhances the stability of the social system. 10
What Do Cultures Do? ▸ Culture as a Liability: 1. Barrier to change 2. Barrier to diversity 3. Barrier to acquisitions and mergers 11
▸ Culture Creates Climate 1. Organizational climate is a relatively ending quality of the internal environment that is experienced by the members, influences their behavior and can described in terms of values of a particular set of characteristics of the organization. 2. Organizational climate is the set of characteristics that describe an organization and that (a) distinguish one organization from other organizations; (b) are relatively enduring over time and (c) influence the behavior of the people in the organization. 12 What Do Cultures Do?
Keeping Culture Alive ▸ Selection ▹ Concerned with how well the candidates will fit into the organization. ▹ Provides information to candidates about the organization. ▸ Top Management ▹ Senior executives help establish behavioral norms that are adopted by the organization. ▸ Socialization ▹ The process that helps new employees adapt to the organization’s culture. 13
Stages in the Socialization Process 14
A Socialization Model 15
Entry Socialization Options • Formal versus Informal • Individual versus Collective • Fixed versus Variable • Serial versus Random • Investiture versus Divestiture 16
How Organization Cultures Form 17
How Employees Learn Culture • Stories • Rituals • Material Symbols • Language 18
Creating an Ethical Organizational Culture ▸ Characteristics of Organizations that Develop High Ethical Standards ▹ High tolerance for risk ▹ Low to moderate in aggressiveness ▹ Focus on means as well as outcomes ▸ Managerial Practices Promoting an Ethical Culture ▹ Being a visible role model. ▹ Communicating ethical expectations. ▹ Providing ethical training. ▹ Visibly rewarding ethical acts and punishing unethical ones. 19
How Organizational Cultures Have an Impact on Performance and Satisfaction 20
Activities for organizational Culture ▸ Anthropologist's Game. ▸ Mascot Game. ▸ Culture Crush Game. ▸ Tightrope Game. ▸ Star Employee Game. 21
CASE STUDY 22
Did Toyota’s Culture Cause Its Problems? You may be familiar with the problems that have recently plagued Toyota. However, you may not know the whole story. First the facts. In 2010 Toyota issued a series of recalls for various models. The most serious was for a defect called “unintended acceleration,” which occurs when a car accelerates with no apparent input from the driver. Investigations revealed that unintended acceleration in Toyota cars has been the cause of 37 deaths since 2000. When the problems first surfaced, however, Toyota denied it was the cause. Eventually, Toyota apologized and recalled more than 9 million cars.To many, the root cause of Toyota’s problems was its insular, arrogant culture. Fortune argued: “Like GM before it, Toyota has gotten smug. 23
It believes the Toyota Way is the only way.” Time reported “a Toyota management team that had fallen in love with itself and become too insular to properly handle something like the current crisis.”Transportation Secretary Ray LaHood described Toyota’s culture as “safety-deaf.”But is this the reality? Increasingly, evidence suggests that Toyota’s culture—or even the cars it produces—is not the source of the problem. A 2011 report released by the U.S. National Highway Traffic Safety Administration (NHTSA) concluded that unintended acceleration was not caused by problems in the electronic circuitry. The Wall Street Journal wrote that “safety regulators, human-error experts and auto makers say driver error is the primary cause of sudden 24
acceleration. ”Forbes and The Atlantic commented that most of the incidents of sudden acceleration in Toyota cars occurred with elderly drivers, and elderly drivers are known to be more prone to confusing pedals. Many other independent investigations, including ones conducted by automobile experts at Popular Mechanics and Car and Driver , reached the same conclusion: the main cause of unintended acceleration was drivers mistaking the gas pedal for the brake pedal. There’s a long history of misreporting on this issue. Audi was nearly driven into bankruptcy when 60 Minutes aired a report, “Out of Control,” purportedly proving that defects in the car were behind six fatal sudden- acceleration accidents. As it turns out, 60 Minutes paid sometime 25
To tamper with the car—filling a canister of compressed air linked to the transmission—to cause the sudden acceleration shown in the segment. Further investigations never uncovered evidence that defects in Audi’s cars were behind the incidents. Does Toyota have an insular and inbred corporate culture? Probably. But it’s been that way for a long time, and it’s far from clear that the culture, or even the company’s cars, is responsible for the sudden acceleration problems. 26
Questions 1. If Toyota is not the cause of unintended acceleration, why was it blamed for it? 2. Investigations have shown that after stories of unintended acceleration are publicized, report of incidents increase for all automakers. Why is this the case? 3. Is it possible to have a strong—even arrogant— culture and still produce safe and high-quality vehicles? 4. If you were the CEO of Toyota when the story was first publicized, how would you have reacted? 27
Thank You 28