It explains about the organizational culture and its advantages, outcome of HR culture and how it helps to attain organizational sustainability in present conditions and also in future. the organizational culture explains the shared beliefs, values and norms followed in their organization which is distinct from other organization to attract competent employees and also to become competitive advantage among others.

1. Organizational Culture
Presented by
DR.P.Na.KANCHANA,M.A,MBA,M.Phil,PH.D.pgdpmir
PROFESSOR,
Pg & Research Department of Management
CHRisTHuRAJ Institute of management & research,
christhuraj COLLEGE, TRICHY.

2. Organizational Culture
A common perception held by the organization’s members;
a system of shared meaning
Characteristics:
1. Innovation and risk
taking
2. Attention to detail
3. Outcome orientation
4. People orientation
5. Team orientation
6. Aggressiveness
7. Stability

3. Seven Characteristics of Organizational Culture
 1.Innovation and Risk Taking
 Pioneering has its share of risks, but at times it can also have a breakthrough outcome for the
organization
 2.Attention to Detail
 Attention to detail defines how much importance a company allots to precision and detail in the
workplace.
 3.Outcome Orientation
 It is really the business model of each business that defines whether the focus should be on the outcome
or the processes.
 4.People Orientation
 How much should be the management focus on the people?
 5.Team Orientation
 Each organization makes its efforts to create teams that will have complimentary skills and will
effectively work together.
 6.Aggressiveness
 Every organization also lays down the level of aggressiveness with which their employees work. Some
businesses like Microsoft are known for their aggression and market dominating strategies (competitive
rather than easy going)
 7.Stability
 ensuring stability of the company rather than looking at indiscriminate/unsystematic growth

4. Organizational Culture
Definition
 The set of shared values and norms that controls organizational
members’ interactions with each other and outside the
organization.
Organizational
Values

5.  Organizational Culture A common perception held by the
organization’s members; a system of shared meaning
 Values: General criteria, standards or guiding principles that
people use to determine which types of behaviours, events,
situations and outcomes are desirable or undesirable.
 Terminal Value: A desired end state or outcome that people
seek to achieve.
 Eg., high quality, excellence.
 Instrumental Value: A desired mode or pattern of behaviour.
 Eg., being helpful, working hard.

6. Strong and Weak Culture
 Strong Culture
Widely shared and deeply held cultures are called as strong
culture.
 Weak Culture
Narrowly shared and shallowly held cultures can be said to be
weak culture.

8.  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.
5. Serves as a sense-making and control mechanism for fitting
employees in the organization.

9. Importance of Organizational Culture
 Continuity of the organization as the social system is maintained through the process of transmission,
socialization and revitalization of ideas, norms and behaviour.
 Culture makes predictability of responses possible by establishing common codes of conduct,
acceptable standards, formal and informal norms, symbols and distinguishes between desirable
and undesirable behaviour.
 Thought, feeling and action are integrated by demanding conformity to dominant patterns of thought
and developing socially desirable ways of expressing feelings and action.
 It facilitates development of normative orientation through an evolution of shared value systems,
ethical standards and differentiated boundaries.
 It provides for regulatory mechanisms including self-regulation by inculcating in the humans
collectively the feeling of guilt, shame, fear of social disapproval, humiliation on the one hand
and a continuous search for tacit and explicit approval on the other.

10. Dimensions of Organizational Culture
1. Individual Initiative:
The degree of responsibility, freedom and independence that individuals have.
2. Risk Tolerance:
The degree to which employees are encouraged to be aggressive, innovative and risk-seeking.
3. Direction:
The degree to which the organization creates clear objectives and performance expectations.
4. Integration:
The degree to which units within the organization are encouraged to operate in a coordinated
manner.
5. Management Support:
The degree to which managers provide clear communication, assistance and support to their
subordinates.

11. Dimensions of Organizational Culture
6. Control:
The number of rules and regulations and the amount of direct supervision that are used to oversee and
control employee behaviour.
7. Identity:
The degree to which members identify with the organization as a whole rather than with their particular
workgroup or field of professional expertise.
8. Reward System:
The degree to which reward allocations (promotions, salary increase) are based on employee
performance criteria in contrast to seniority, favoritism and so on.
9. Conflict tolerance:
The degree to which employees are encouraged to air conflicts and criticisms openly.
10. Communication Patterns:
The degree to which organizational communications are restricted to the formal hierarchy of authority.

12. Types of Culture
 On the basis of the following dimensions culture has been classified into
 I. Value Dimension
1. Entrepreneurial Culture
2. Strategic Culture
3. Chauvinistic Culture
4. Exclusive Culture
 II. Nature of environment and strategic focus
1. Clan Culture
2. Entrepreneurial Culture
3. Bureaucratic Culture
4. Market Culture
 III. Spread and Intensity

13. Entrepreneurial
(external, short-term)
Strategic
(external, long-term)
Chauvinistic
(internal, short-term)
Exclusive
(internal, long-term)
Sources of Values
Charismatic Traditions Organizational Leadership
Functional
Focus
of Values
Elitist

14.  Focus and Content of core values
 Functional: Focusing on organizational goals, functions or styles of
operations.
 Eg.,Maruti Udyog Ltd,s value statement “Count On Us”
 Elitist: Values focusing on the status or superiority of members or products of
the organization. Eg.,Videocon “No.1 Indian Multinational”.
 Sources of values
 Organizational Traditions: Predominant value is passed from one generation
to another through role models and prime movers. Eg., TISCO
 Charismatic Leadership: The organization members accept and internalize
the values of a charismatic leader through the process of identification. Eg.,
Mr.Narayanamurthy of Infosys.

15.  Entrepreneurial Culture
 1. The focus of values is functional and with charismatic leadership as the source.
 2. The orientation is short-term and external.
 3. Major concern: realization of organizational goals and short-term perspective.
 4. Organizations in its formative stage usually have this kind of culture
 5. The charismatic leader, espouses, functional values which are shared by loyal employees.
 6. Eg., Reliance group of Industries.
 Strategic Culture
 1. Focuses on functional values and is rooted in the organization’s traditions.
 2. Major concern: Alignment with external environment and long-term sustainability.
 3. Eg., Tata & Sons.

16.  Chauvinistic Culture
 1. This culture has an elitist value orientation rooted in a strong charismatic leader.
 2. Focus is on internal efficiency and short term perspective.
 3. The charismatic leader adheres to and advocates elitist values.
 4. Eg., Shehnaz Hussein Beauty Parlour Clinics.
 Exclusive Culture
 1. Represents elitist value rooted in tradition.
 2. Eg., Dr.Reddy’s Laboratory, Apollo group of hospitals and some exclusive public
schools.

17. Nature of environment and strategic focus
 This model is significant as it focuses on values.
Flexible
Formal control orientation
Stable
Clan Culture
Entrepreneurial
Culture
Bureaucratic
Culture
Market culture
Internal External
Forms of Attention

18.  Bureaucratic Culture
 1. Organization chooses to operate in an environment which is stable and focus is on internal
processes.
 2. Such an organization will have high degree of formalization, standardization, rules and procedures.
 3. The coordination of different functions is achieved through hierarchical level with varying degree of
authority to control and coordinate activities.
 4. Focus: Predictability, efficiency and stability.
 5. The organization design is likely to be bureaucratic with clearly defined hierarchy, narrow span of
control. Eg., Govt Departments.
 Clan Culture
 1. Loyalty, convention. Teamwork and social influence are attributes of clan culture.
 2. Organization members extend their obligation beyond the simple employment contract and
invariably contribute to the organization beyond the requirements of contractual agreements.
 3. Long time clan members serve as mentors and role models for new members.

19.  Entrepreneurial Culture
 1. Characterized by strategic focus on the external environment through flexibility and change to meet customer needs.
 2. This culture enables the organization to detect, interpret and translate cues from the environment into adaptive responses.
 3. The strategy centers around proactive rather than reactive responses to environmental change.
 4. Experimentation, risk taking and innovation are highly valued.
 5. Individual initiative, creativity and autonomy are encouraged and rewarded.
 6. Associated with small to medium size companies that continue to run by their founders.
 Market Culture
 1. Characterized by high degree of service orientation to customers in the external environment.
 2. Emphasis on achievement of goals such as sales growth, profitability or market share to enable the organization realize its
vision and purpose.
 3. Competitiveness and profit orientation prevail throughout the organization.
 4. Direct relationship between performance and reward for individuals and groups tent to be emphasized.
 5. Increased level of performance is exchanged for increased rewards in return, as agreed upon between employee and the
organization.
 6. Relationship between the employees and organization is strictly contractual.

20. Narrowly shared, Deeply held
(violations in this cell usually result
in informal but sometimes
significant punishments)
Widely shared, Deeply held
(violations in this cell usually result
in formal and significant
punishments)
Narrowly shared, Shallowly held
(violations in this cell usually do
not result in uniform reactions but
instead are more idiosyncratic)
Widely shared, Shallowly held
(violations in this cell usually result
in minor punishments or sometimes
second chances)
III. Spread and Intensity
Organization cultures differ in terms of spread that is, the organization space covered and the intensity with which
underlying values and beliefs are imbibed by their members.
Intensity
Shallow
Deep
Narrow Spread Wide

21. Creating and Sustaining Culture
 Culture Creation
 1. Founders hire and keep only employees who think and feel the same way they do.
 2. They indoctrinate and socialize these employees to their way of thinking and feeling.
 3. The founder’s own behavior acts as a role model that encourages employees to
identify with them and thereby internalize their beliefs, values and assumptions. Eg.,
BillGates of MS.


22. How organization cultures form
Top Management
Socialisation
Organization
Culture

23. Sustaining Organizational Culture
 Three forces play a particularly important part in sustaining a culture:
 Selection Practices
 The explicit goal of the selection process is to identify and hire individuals who have the knowledge, skills and abilities to
perform the jobs within the organization successfully. Typically, more than one candidate will be identified who meets any
given job’s requirements.
 When that point is reached, it would be naïve to ignore the fact that the final decision as to who is hired will be
significantly influenced by the decision-maker’s judgement of how well the candidates will fit into the organization.
 In this way, the selection process sustains an organization’s culture by selecting out those individuals who might attack or
undermine its core values.
 Top Management
 The actions of top management also have a major impact on the organization’s culture.
 Through what they say and how they behave, senior executives establish norms that filter down through the organization
as to whether risk-taking is desirable; how much freedom managers should give their employees; what is appropriate
dress; what actions will payoff in terms of pay raises, promotions and other rewards.

24. Socialization
 Socialization: A process that adapts employees to the organization’s culture.
Pre-arrival stage
The period of learning in the socialization process that occurs before a new employee joins the organization.
Encounter stage
The stage in the socialization process in which a new employee sees what the organization is really like and confronts the
possibility that expectations and reality may diverge.
Metamorphosis Stage
The stage in the socialization process in which a new employee changes and adjusts to the job, work group and organization.

25.  Entry Socialization Options
1. Formal Vs Informal
2. Individual Vs Collective
3. Fixed Vs Variable
4. Serial Vs Random
5. Investiture Vs Divestiture
 Formal Vs Informal: The more a new employee is segregated from the ongoing work setting and differentiated in some way to make
explicit his or her newcomer’s role, the more formal socialization is. Eg., training programs. Informal socialization puts the new employee
directly into the job, with little or no special attention.
 Individual Vs Collective: New members can be socialized individually. Eg., Professional Offices. They can also be grouped together and
processed through an identical set of experiences. Eg., Military Boot Camp.
 Fixed Vs Variable: A fixed schedule establishes standardized stages of transition. Variable schedules give no advance notice of their
transition table.
 Serial Vs Random: Serial socialization is characterized by the use of role models who train and encourage the newcomer. Eg.,
Apprenticeship and Mentoring programs. In random socialization, role models are deliberately withheld. New employees are left on their
own to figure things out.
 Investiture Vs Divestiture: Investiture socialization assumes that the newcomer’s qualities and qualifications are the necessary
ingredients for job success, so these qualities and qualifications are confirmed and supported. Divestiture socialization tries to strip away
certain characteristics of the recruit.

26.  The cultural Web
 The Paradigm
 Rituals and Routines
 Stories
 Symbols
 Power structures
 Organizational Structures
 Control Systems

27. Relating culture to strategy
Implementing strategy ignoring corporate culture
 When a strong and aggressive leader implements a strategy, he/she (and his/her team) may have to ignore some of the existing
procedures, norms and values for the sake of success of the strategy.
Existing culture fits perfectly with strategy implementation
 This can happen when implementation of strategy fits perfectly well with the existing culture of the organization. In many
organizations, strategy formulation and implementation initiatives are based on the existing culture, particularly in companies with
strong and progressive culture. Eg., GE.
Adapting strategy implementation to suit corporate culture
 If organizational culture is very deep rooted and the management and leadership are fully committed to uphold the culture,
functions, operations and systems will conform to the cultural pattern. This applies to the strategy implementation also. Eg., L&T
Changing strategy to fit corporate culture
 There may be occasions when not strategy implementation, but, the strategy itself may have to be changed to fit the culture. Strategy
implementation can be adapted to cultural requirements to some extent, but, beyond a point, too much change in the implementation
programme or process may disrupt the strategy itself. So, under cultural compulsions, strategy may have to be changed during
implementation.
Changing corporate culture to suit strategy implementation
 Sometimes, it may happen the other way round, that is, culture has to suit requirements of strategy. Although it is difficult to
change culture, it may be necessary because of change of environment. Eg., Post-Liberalization business environment in India.

28. Creating Strategy-supportive culture
 The following are the elements which can facilitate creation of a strategy-supportive culture:
1. Clear statements of organizational philosophy, mission, goals and objectives.
2. Organizational design, structure and hierarchy.
3. Organizational systems and procedures.
4. Designing of physical spaces, facades and buildings.
5. Criteria used for selection, recruitment, promotion, leveling off and retirement of people.
6. Motivation, compensation and reward systems.
7. Stories, legends and myths about key people and events.
8. Role modeling, teaching and coaching by leaders.
9. What leaders pay attention to, measure and control.
10. Leader’s reactions to critical incidents and organizational crisis.

29.  Implications for Managers
 The summary of this unit indicates the following
Objective factors or
Dimensions of organizational
culture
Innovation and Risk taking
Attention to Detail
Outcome Orientation
People Orientation
Team Orientation
Aggressiveness
Organizational
Culture
High
Low Satisfaction

30. Conclusion
 As managers,
1. Shape the work environment
2. Create an ethical culture, spirituality and a positive organizational culture.
3. Shape the organizational culture as the culture of the organization shapes you.