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CULTURE
PART II ASSESSING AND MEASURING
CULTURE
PART III CASE STUDIES
GYAAN CAPSULE 2
Organisational Culture and
Engagement
The culture plays a vital role in communicating to employees how they should work and the
attitude they should adopt towards this work. It is an underlying indicator of desirable
behaviour and lays out the boundaries of acceptability. What is encouraged in one
A word about corporate cultures: for better or for worse, they are
enduring, stable, hard to change. They can be a source of advantage or
disadvantage. If its a distinctive culture, it will fit certain people like a
custom-made glove. The reason cultures are so stable in time is because
people self-select. Someone energized by competitive zeal may select and
be happy in one culture, while someone who loves to pioneer and invent
may choose another.
cultures are team players who display high levels of passion and
commitment, which usually includes hard work.
The way in which these behaviours are manifested within a company will vary, depending on
the nature of the work. For example, customer focus will be realised differently in a consumer
products company and a professional services firm. The former may focus on the customer
by blanketing the offices with lifestyle posters featuring its particular target customers. The
latter might send out a weekly communication with updates about important clients. Whether
these techniques have been effective or not will be determined by whether the expectations
of high performance and are widely understood and shared.
Reference:
Bain and Company, Building a winning culture, 2006
Cultural change
There are a number of internal and external factors which are responsible for cultural change
in an organisation.
Composition of the workforce: Over time, the people entering an organisation may differ in
important ways from those already in it, and these differences may impinge on the existing
culture of the organisation.
Mergers and acquisitions: Another source of cultural change is mergers and acquisitions,
events in which one organisation purchases or otherwise absorbs another. In such cases, rare
consideration is given to the acquired organisation's culture. This is unfortunate because there
have been several cases in which the merger of two organisations with incompatible cultures
leads to serious problems, commonly known as culture clashes. In such cases, the larger and
more powerful company attempts to dominate the smaller acquired company.
Additionally, an organisation can also undertake deliberate activities and initiatives to result
in cultural change. Such transformational programs usually involve some or all of the
following steps:
1. Identify the basic assumptions and beliefs and challenge them if necessary
2. Define or re-define the core values - stated or unstated
3. Analyse the organisational climate
4. Analyse the management style
5. Plan and implement what aspects of the culture needs to be changed and what aspects
should be maintained or reinforced
a complete cultural
transformation initiative. It
collected a team of organizational
development experts and data
scientists to survey its employees
on over 50 cultural attributes,
that were mapped to five recently
formulated values designed in the
cultural refresh. This data was
then combined with operational
metrics to assess the extent to
which compliance with cultural
values impacts the business.
Example: Snapdeal rates high in masculinity whereas Nestl rates low in masculinity.
3. Individualism
There are some organisations which strongly rely on teamwork. These organisations believe
that the output is always better when people work in a team. However, certain organisations
follow a culture where individuals do not believe in working in teams and prefer working
individually.
Example: Amazon rates high on individualism whereas a company like Deloitte rates low on
individualism.
4. Uncertainty Avoidance Index
This refers to a culture where employees know how to respond to unusual and unforeseen
circumstances. Organisations try hard to avoid such a situation and also prepare the
employees to adjust well in all conditions.
Example: PSUs tend to rate high on uncertainty avoidance.
5. Long Term Orientation
There are some organisations which focus on a long term relationship with the employees. In
such organisations, people have a steady approach and strive hard to live up to the
expectations of the management. On the other hand, some organisations have employees
who are more concerned with their position and image. The employees are concerned only
with their profits and targets and leave as and when they get a better opportunity.
Example: Tata Group companies usually rate high on long term orientation.
Ikea
IKEA's human resource philosophy stands on the belief that employees are more productive
and committed when the company takes care of them and their needs.
IKEA's positive HR policies are supported by a strong and nurturing culture that promoted
diversity and creativity and empowerment. In 1990s, Spiers-Lopez, HR head at IKEA North
America said IKEA's culture was characterized by a family-like quality that made relationships
between employees strong and open.
The organisations manifesto declares that "the true IKEA spirit is still founded on our
enthusiasm, on our constant will to renew, on our cost consciousness, on our willingness to
assume responsibility and to help, on our humbleness before the task and on the simplicity in
our behavior. We must take care of each other, inspire each other."