Organization Structure,

Design & Change

BOB2B14-3 : Session 6

What is culture?
The set of shared values and norms that control organisational
members interactions with each other and with people outside the
organisation
The basic set of assumptions, beliefs or accepted meanings underlying
the way things are done
Culture The way of life around here

Organizational Values?
Values (1) are concepts or beliefs, (2) pertain to desirable end-states or
behaviours, (3) transcend situations, (4) guide selection or
evaluation of behaviour and events, and (5) are ordered by relative
importance
Values: general criteria, standards, or guiding principles that people use
to determine which types of behaviors, events, situations, and
outcomes are desirable or undesirable

Three levels of culture

Artifacts

Observable features of a settingthings you can see, hear and feel when you enter
an organisation
e.g. Rites and ceremonies, stories and myths, symbols
architecture, language, manners of address, a published list of values, office space
allocation, decorations, the way people address each other

Values

Ideas, goals, values, aspirations, deeply held norms

Ideologies, traditions
Rationalizations

The Toyota Way

Kaizen continuous improvement
Genchi Genbutsu Go to the source
Challenge
Teamwork
Respect

Assumptionstaken for granted factors that shape behavior

Example (3 levels of culture)

Digital Equipment Corp. (Manufacturer of mini-computers)

Artifacts

Open office architecture

Informality of dress and manners
Very dynamic environment of rapid pace
High rate of interaction reflecting enthusiasm, intensity, energy, and impatience

Espoused Beliefs and Values

He who proposes, does

Do the right thing
Do not do things without getting a buy-in from others who had to implement the
decision

Basic Assumptions

The individual is ultimately the source of ideas

Individuals are capable of taking responsibility and doing the right thing
No one individual is smart enough to evaluate his/her own ideas (valued debate)
Central assumption: basic work of the company is technological innovation and
should be fun

Socialization: Phases
Socialization is the process by which an individual acquires the social
knowledge and skills necessary to assume an organisational role

Phases of socialization

Socialization tactics
Careful selection of entry-level candidates
Humility-inducing experiences that cause newcomers to question prior
behavior, beliefs, and values
In-the-trenches training that leads to mastery of one of the business's
core disciplines
Meticulous attention given to rewards and control systems
Careful adherence to the firm's core values
Reinforcing folklore
Consistent role models
Symbols

Hofstedes cultural dimensions

Power Distance (PDI)- Power distance dimension expresses the degree to
which the less powerful members of a society accept and expect that
power is distributed unequally
Individualism versus collectivism (IDV) -Individualism can be defined as a
preference for a loosely-knit social framework in which individuals are
expected to take care of only themselves and their immediate families
Masculinity versus femininity (MAS) - The masculinity side of this dimension
represents a preference in society for achievement, heroism,
assertiveness and material rewards for success
Uncertainty avoidance (UAI) - The uncertainty avoidance dimension
expresses the degree to which the members of a society feel
uncomfortable with uncertainty and ambiguity
Long-Term Orientation (LTO) - People in these societies are willing to delay
short-term material or social success or even shot-term emotional
gratification in order to prepare for the future.
Indulgence versus Restraint (IND) - Indulgence stands for a society that
allows relatively free gratification of basic and natural human drives
related to enjoying life and having fun. Restraint stands for a society
that suppresses gratification of needs and regulates it by means of strict
social norms.

Difference between Japan and USA

Difference between India and USA

http://geert-hofstede.com/countries.html

Managing Organizational Culture

What leaders pay attention to, measure, and control on a regular basis
How leaders react to critical incidents and organizational crises
How leaders allocate scarce resources
Deliberate role modeling, teaching, and coaching
How leaders allocate rewards and status
How leaders recruit, select, promote, and communicate

Managing Organizational Culture

Organizational design and structure (decision making, coordination,
reporting, structure)
Systems and procedures (performance appraisal, information, control,
decision support systems, etc.)
Rites and rituals
Design of physical space, facades, and buildings
Stories about important events and people (anecdotes, legends, myths,
and parables)
Formal statements of organizational philosophy, creeds, and charters

An overview

Measuring culture

Diagnosing culture
Qualitative
Quantitative

Qualitative
Looking at organizational practices with a fresh set of eyes
Observe

What do offices look like?

How are people dressed?
Where do they eat lunch?
How would you characterize the people in the hall formal
or informal? Laughing, or serious?
What kinds of pictures, signs, jokes are on walls? Listen for
particular language

Notice the Features of Culture Ceremonies, Rites, and Rituals

Stories and Myths Heroes Language Symbols
Ask questions, like:
What kind of stories run inside the organization
How do new people learn the ropes in the organization
What gets noticed (and rewarded)?
Are some people on the fast track, and if so, how did they
get there?
What are some taboos -- things people should never do?
If a team accomplishes something great, what happens?

Issues with Qualitative Survey?

the dimensions of culture identified in one milieu through
this approach are idiosyncratic and not necessarily relevant
in another context
this approach is unable to produce culture information
coherently linkable to major outcomes such as
organizational performance

Organizational Culture Profile (OCP) - O'Reilly, Chatman, & Caldwell

(1991); Cable & Judge (1997)

Competing Values Framework (CVF) - Quinn and Rohrbaugh, 1983

Organizational Culture Inventory (OCI) 1989

Cooke and Lafferty,

Competing Values Framework

Example: OCAI Cultural Inventory

Functions of organisational culture

A glue that holds the organization together

Provides members with a sense of identity, generates collective
commitment, to something larger than self-interest, and helps
people make sense of what occurs in the organization and the
environment
Provides a sense of direction mission, vision and core values
statements
Facilitates mutual adjustment in an organization
Shapes the image that public, customers, employees, shareholders and
other stakeholders have of the organisation
Influences organisational performance positive culture/negative
culture
Culture as control
Cultures can promote both ethical and unethical behaviour