This document discusses organizational culture and climate. It defines organizational culture as a system of shared meanings and defines elements of culture as visible and invisible. Popular companies like Google, Netflix and Zappos are provided as examples of inspiring cultures. Organizational climate is defined as the perceptions of the work environment that influence employee behavior and motivation. The differences between culture and climate are outlined, with culture focusing on long-term values and norms, and climate focusing on short-term attitudes and practices.

1. Unit-IV:
Organizational Culture and Climate
By
Dr. H.S. ABZAL BASHA, M.B.A., Ph.D.
Assistant Professor,
Department of Management Studies,
G. Pullaiah College of Engineering & Technology,
Kurnool.

2. Introduction
Elliott Jaques first introduced the
concept of culture in the
organizational context in his 1951
book The Changing Culture of a
Factory.
The organizational culture
influences
the way people interact,
the context within which
knowledge is created,
the resistance they will have
towards certain changes, and
ultimately the way they share
knowledge.

3. What is Organizational Culture?
• A system of meaning shared by the
organization’s members
• Cultural values are collective beliefs,
assumptions, and feelings about what things
are good, normal, rational, valuable, etc.

4. 7 Popular Companies setting Inspiring
Organizational Culture Examples
1. Zappos – Complementing the Right People with the Right
Culture (four-week call center training for all)
2. Walt Disney – The Happiest Place on Earth being the Happiest
Place to Work
3. Twitter – Where Fun meets Inspiration to bring out the Best
4. Nike – The Work Culture that ‘Just did it’
5. Google – A Corporate Culture that Employees Stand by (Google
offers free food, employee trips and parties, financial bonuses, open
presentations by high-level executives, employee recognition, gyms, and has
a pet-friendly environment)
6. Netflix – Where Trust is the Keyword of Culture (Did you know
that Netflix has no set schedule, but offers unlimited vacation days to its
employees)
7. Medium – ‘No people managers. Maximum autonomy’(“Teach
me something.” Routinely asked on Medium hiring interviews)

5. Organisational culture examples in India
1. Amazon India. (Amit Agarwal, instructed his employees to refrain from
responding to any emails or phone calls between 6 p.m. and 8 a.m.)
2. Tata Consultancy Services. (Maitree, aims to reach out to employees’
families and bring them together for various cultural events.)
3. Godrej Consumer Products. (The company’s LOUD (Live Out Ur Dream) is
a talent search initiative used on the Godrej Campus. This program is for
recognizing some creative and passionate individuals with huge potential.)
4. Bharti Airtel. (Bharti Airtel’s office in Gurgaon provides day-care facilities
for working mothers’ children to balance their role as parent and manage
their professional commitments as well.)
5. Flipkart. (The company has implemented an attractive childcare policy with
a day-care support programme. Expectant mothers can receive a stipend as
a transport allowance for 2 months, before opting for maternity leave.)
6. Hindustan Unilever. (Managers at Hindustan Unilever can take advantage
of the company’s career break policy for up to 5 years so they can pursue
higher education, maternity or paternity leave, or take on other personal
goals.)

6. Culture’s Overall Function
• Culture is the social glue that
helps hold an organization
by providing
together
appropriate standards for
what employees should say
or do.

8. Elements of Organizational Culture
Visible
• Unconscious, taken-for-granted
perceptions or beliefs
• Mental models of ideals
Shared assumptions
• Conscious beliefs
• Evaluate what is good or bad, right or
wrong
Shared values
Artifacts
• Stories/legends
• Rituals/ceremonies
• Organizational language
• Physical structures/décor
Invisible
(below the surface)

9. How Employees
Learn Culture/
How it is “reinforced”
Material
Symbols
Language
Stories Rituals

10. How Organizational
Cultures Form
Philosophy
of the
Organization’s
Founders
Organizational
Culture
Selection
T
op
Management
Socialization

12. The Culture Iceberg: 90% hidden
Values, beliefs,
norms, customs,
nonverbal behavior,
etc.
Level of
conscious
awareness
Observable
symbols, ceremonies,
slogans, stories,
dress, physical
settings, decoration,
etc.
Shorter,
easier to
change
Long term,
difficult to
change

16. Do Organizations Have Uniform
Cultures
Core
Values
Subcultures
Dominant
Culture

17. Benefits of Strong Corporate Cultures
Strong
Organizational
Culture
Social
Control
Social
Glue
Improves
Sense-Making

18. Strengthening Organizational Culture

19. Merging Organizational Cultures
Assimilation
Deculturation
Acquired company embraces acquiring
firm’s cultural values
Acquiring firm imposes its culture on
unwilling acquired firm
Integration
Cultures combined into a new composite
culture
Separation
Merging companies remain separate with
their own culture

20. Organizational Climate
The term “organizational climate”
(sometimes known as Corporate
Climate) was coined in 1939 following a
study of children's school clubs by Kurt
Lewin and his colleagues.
Organisational climate is a multi-
dimensional concept.
The various dimensions of the
organisational climate are individual
autonomy, authority structure,
leadership style, pattern of
communication, degree of conflicts and
cooperation etc.

21. “A set of measurable properties of the perceived work
environment, directly or indirectly, created by individuals who
live and work in this environment and that influences the
motivation and behavior of these people.”
Organizational Climate is a relatively enduring quality of the
internal environment of an organization that
a. is experienced by its members
b. influences their behavior
c. can be described in terms of the values of a particular set
of characteristics of the organization

22. Elements of Climate
• Quality of Leadership
• Amount of Trust
• Communication, upward and downward
• Feeling of useful work
• Responsibility
• Fair rewards
• Reasonable job pressure
• Opportunity
• Reasonable controls, structure, and bureaucracy
• Employee involvement, participation.

23. Climate Influences
Motivation Performance Satisfaction

24. Org. Culture Vs Org. Climate
• Culture refers to ideologies,
values and norms as reflected in
stories and symbols.
• It evolves over a number of years
by good will and reputation.
• It is a broader framework that
determines organisational
climate.
• It cannot easily changed and
manipulated. Changes are
absolutely introduced if
necessary.
• It focus on values and norms of
the organization.
• Climate, on the other hand,
refers to the psychological
environment as reflected in
attitudes and perceptions.
• It evolves according to the
needs of the organisations by
current environmental forces.
• It is short term that defines its
day to day functioning.
• It can be manipulate & changed
according to needs of the
environment.
• It focus on the current work
practices of the organization.

25. Thank You