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Building Organizational Culture
         Pankaj Kumar
          IIM, Lucknow
Issues of Concern
• Meaning of Organizational Culture
• Measuring Organizational Culture
• Building Organizational Culture
Do you really know your
Organization’s Culture ?
* What 10 words would you use to describe
  your company?

* Around here what is really important?

* Around here who gets promoted?

* Around here what behaviours get rewarded?

* Around here who fits and who does not?
The Meaning & Content
• No Universal Definition.
• Various Conceptual Frameworks.
• Dimensions of OC.
Schein (1985)
“ …a pattern of basic assumptions-invented,
discovered or developed by a given group as
it learns to cope with its problems of external
adaptation and internal integration-that has
worked well enough to be considered valid
and, therefore, to be taught to new members
as the correct way to perceive, think and feel
in relation to those problems.”
Pareek (1995)

“ … a cumulative preference of some states of
life over others (values), the predispositions
concerning responses towards several
significant issues and phenomena (attitudes),
organized ways of filling time in relation to
certain affairs (rituals), and ways of
promoting desired behaviours and preventing
undesirable ones (sanctions).”
Vision

     Mission

Goals & Objectives

    Strategies

    Structure

     Culture

    Behaviour

   Performance
Artifacts & creation
Technology                     Visible but often not
Arts                              decipherable
Visible & Audible
Behavior Patterns

    Values                        Greater levels of
                                    awareness
Basic Assumption
Relationship to environment
Nature of reality                  Taken for granted
Time & Space                       Invisible
Nature of Human activities         preconscious
Nature of Human Relationship

    Levels of Culture and its interaction
Developing OC involves
* Developing a strong corporate identity

* Development of important values

* Building healthy traditions

* Developing consistent management practices
Cultural aspect of HRD
concerned with
* Development of Appropriate OC

* Creating conducive Org. Climate

* Improving Communication

* Evolving effective reward system
Strong Corporate Identity
develops when employees have a sense of belonging,
and feel proud of working with the organization,
which develops as a result of interaction of
employees with the organization.

* Developing an attractive Induction Booklet
* Films on success experiences in the organization
* Company newsletters
* Mobility of People
Developing important values
Values of excellence and human consideration
develop only by demonstrating these values in
action.

* Surveys of Values and differences b/w espoused
  v/s practiced values
* Special value orientation programmes
* Examining the various systems operating in the
  organization
* Special OD intervention in Cooperation and
  Collaboration
Building Healthy traditions &
practices
Traditions are built in org. on the basis of important
Functional rituals or celebrations

* Induction programme for new entrant
* Promotions as transition
* Ritual associated with “old age” and retirement
* Exceptional behaviour
* Celebration of special individual & important
  organizational days
Types
* Autocratic or feudal culture is characterized by
  centralized power concentrated in a few persons,
  and observation of proper protocol in relation to
  the person/s in power.
* Bureaucratic culture is characterized by primacy
  of procedures and rules, hierarchy and distant
  and impersonal relationship.
* Technocratic culture emphasizes technical
   / professional standards and improvement.
* Entrepreneurial culture in concerned about
  achievement of results and providing excellent
  services to the customers.
Profile of OC
Cultures      Focus       Climate       Ethos

Autocratic/   Proper       Dependency+ All opposite
Feudal        Protocol     Affiliation  values of
                                        OCTAPACE
Bureaucratic Rules &       Control +    safe playing,
              Regulations Dependency inertia, conflict
                                        & closed
Technocratic Perfection    Expert power proaction,
                            + Extension autonomy,
                                        collaboration,
                                        experimentation
Entrepreneurial/ Results,  Achievement OCTAPACE
Democratic/      Customers +Extension
Organic
ACQUIRE
                  Basic new knowledge, facts, skills,
             process, concepts, values and beliefs etc..

TEST                                    EMBED
Implications of                    New knowledge through
concepts in new                      reflection and practice
situations
                         INTEGRATE
              New facts into existing concepts and
                          generalization

           Learning Culture Model
Building Culture
•   Recruitment and selection.
•   Socialization.
•   Performance Evaluation.
•   Leadership. - Employee Motivation & Decision
    Making
•   Compensation Packages.
•   Grievance Handling.
•   Conflicts & Differences handling.
•   Discipline & Morale
•   Career Planing and Development
Measuring Organizational Culture
• Quantitative
     • Questionnaire & Survey

• Qualitative
     • Depth Interview
     • Clinical Intervention
     • Analyzing Visual Artifacts.
     • Analyzing stories, rituals and myths.
     • Participant Observation.
Changing Culture
# Understand the environmental & other forces that
will influence your future strategy

# Determine what are the core values that have been
fundamental to your business identity, core purpose
& success and that you will not compromise

# Create a shared vision of what the company needs
to become

# Assess the existing culture & determine what
elements of culture need to change
# Determine what changes need to occur to
implement strategy and address the gaps

# Define the role of senior management in leading
the culture change

# Craft an implementation plan with targets of
intervention, time lines, milestones &
accountabilities

# Communicate the need for change and plan for
change and create motivation and buy in among key
stake holders
# Identify obstacles and sources of resistance and
develop strategies for getting around them

# Institutionalize, model and reinforce the changes in
culture

# Continually reassess the organization’s culture and
establish a norm of continuous learning and
transformation
Organizational Climate & Ethos
# Achievement (concern for excellence)
# Expert Power (concern for impact through
  expertise)
# Extension (concern for relevance to larger goals
  and entities)
# Control (concern for orderliness)
# Affiliation (concern for maintaining good personal
  relations)
# Dependency (concern for approval & maintenance
  of hierarchical order)

* OCTAPACE
Constituents of OC
    Determinants              Dimensions
- Societal Culture            -Visual Artifacts
- Shared learning from        - Values
  shared history
- Leadership                  - Rituals
- Consistent Mgt. practices   - Stories & Myths
- Structural Stability        - Assumptions
               Consequences
              - Performance
              - Behaviour

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Organizational culture

  • 1. Building Organizational Culture Pankaj Kumar IIM, Lucknow
  • 2. Issues of Concern • Meaning of Organizational Culture • Measuring Organizational Culture • Building Organizational Culture
  • 3. Do you really know your Organization’s Culture ? * What 10 words would you use to describe your company? * Around here what is really important? * Around here who gets promoted? * Around here what behaviours get rewarded? * Around here who fits and who does not?
  • 4. The Meaning & Content • No Universal Definition. • Various Conceptual Frameworks. • Dimensions of OC.
  • 5. Schein (1985) “ …a pattern of basic assumptions-invented, discovered or developed by a given group as it learns to cope with its problems of external adaptation and internal integration-that has worked well enough to be considered valid and, therefore, to be taught to new members as the correct way to perceive, think and feel in relation to those problems.”
  • 6. Pareek (1995) “ … a cumulative preference of some states of life over others (values), the predispositions concerning responses towards several significant issues and phenomena (attitudes), organized ways of filling time in relation to certain affairs (rituals), and ways of promoting desired behaviours and preventing undesirable ones (sanctions).”
  • 7. Vision Mission Goals & Objectives Strategies Structure Culture Behaviour Performance
  • 8. Artifacts & creation Technology Visible but often not Arts decipherable Visible & Audible Behavior Patterns Values Greater levels of awareness Basic Assumption Relationship to environment Nature of reality Taken for granted Time & Space Invisible Nature of Human activities preconscious Nature of Human Relationship Levels of Culture and its interaction
  • 9. Developing OC involves * Developing a strong corporate identity * Development of important values * Building healthy traditions * Developing consistent management practices
  • 10. Cultural aspect of HRD concerned with * Development of Appropriate OC * Creating conducive Org. Climate * Improving Communication * Evolving effective reward system
  • 11. Strong Corporate Identity develops when employees have a sense of belonging, and feel proud of working with the organization, which develops as a result of interaction of employees with the organization. * Developing an attractive Induction Booklet * Films on success experiences in the organization * Company newsletters * Mobility of People
  • 12. Developing important values Values of excellence and human consideration develop only by demonstrating these values in action. * Surveys of Values and differences b/w espoused v/s practiced values * Special value orientation programmes * Examining the various systems operating in the organization * Special OD intervention in Cooperation and Collaboration
  • 13. Building Healthy traditions & practices Traditions are built in org. on the basis of important Functional rituals or celebrations * Induction programme for new entrant * Promotions as transition * Ritual associated with “old age” and retirement * Exceptional behaviour * Celebration of special individual & important organizational days
  • 14. Types * Autocratic or feudal culture is characterized by centralized power concentrated in a few persons, and observation of proper protocol in relation to the person/s in power. * Bureaucratic culture is characterized by primacy of procedures and rules, hierarchy and distant and impersonal relationship. * Technocratic culture emphasizes technical / professional standards and improvement. * Entrepreneurial culture in concerned about achievement of results and providing excellent services to the customers.
  • 15. Profile of OC Cultures Focus Climate Ethos Autocratic/ Proper Dependency+ All opposite Feudal Protocol Affiliation values of OCTAPACE Bureaucratic Rules & Control + safe playing, Regulations Dependency inertia, conflict & closed Technocratic Perfection Expert power proaction, + Extension autonomy, collaboration, experimentation Entrepreneurial/ Results, Achievement OCTAPACE Democratic/ Customers +Extension Organic
  • 16. ACQUIRE Basic new knowledge, facts, skills, process, concepts, values and beliefs etc.. TEST EMBED Implications of New knowledge through concepts in new reflection and practice situations INTEGRATE New facts into existing concepts and generalization Learning Culture Model
  • 17. Building Culture • Recruitment and selection. • Socialization. • Performance Evaluation. • Leadership. - Employee Motivation & Decision Making • Compensation Packages. • Grievance Handling. • Conflicts & Differences handling. • Discipline & Morale • Career Planing and Development
  • 18. Measuring Organizational Culture • Quantitative • Questionnaire & Survey • Qualitative • Depth Interview • Clinical Intervention • Analyzing Visual Artifacts. • Analyzing stories, rituals and myths. • Participant Observation.
  • 19. Changing Culture # Understand the environmental & other forces that will influence your future strategy # Determine what are the core values that have been fundamental to your business identity, core purpose & success and that you will not compromise # Create a shared vision of what the company needs to become # Assess the existing culture & determine what elements of culture need to change
  • 20. # Determine what changes need to occur to implement strategy and address the gaps # Define the role of senior management in leading the culture change # Craft an implementation plan with targets of intervention, time lines, milestones & accountabilities # Communicate the need for change and plan for change and create motivation and buy in among key stake holders
  • 21. # Identify obstacles and sources of resistance and develop strategies for getting around them # Institutionalize, model and reinforce the changes in culture # Continually reassess the organization’s culture and establish a norm of continuous learning and transformation
  • 22. Organizational Climate & Ethos # Achievement (concern for excellence) # Expert Power (concern for impact through expertise) # Extension (concern for relevance to larger goals and entities) # Control (concern for orderliness) # Affiliation (concern for maintaining good personal relations) # Dependency (concern for approval & maintenance of hierarchical order) * OCTAPACE
  • 23. Constituents of OC Determinants Dimensions - Societal Culture -Visual Artifacts - Shared learning from - Values shared history - Leadership - Rituals - Consistent Mgt. practices - Stories & Myths - Structural Stability - Assumptions Consequences - Performance - Behaviour