TERM PAPER

OF
ORGANIZATION
DEVELOPMENT

TOPIC: - ORGANIZATIONAL CULTURE

Submitted To: - Submitted By:-

Mr. Susanta Bose Triveni (A09)
10804964
Organizational Culture
Organizational culture is an idea in the field of organizational studies and management which
describes the psychology, attitudes, experiences, beliefs and values (personal and cultural values)
of an organization. It can also be defined as "the specific collection of values and norms that are
shared by people and groups in an organization and that control the way they interact with each
other and with stakeholders outside the organization."

The concept of organizational culture has gained large recognition as a way to understand human
systems. From an "open-systems" point of view, each aspect of organizational culture can be
seen as an important environmental condition affecting the system and its subsystems.

The culture of a group can now be defined as: A pattern of shared basic assumptions that the
group learned as it solved 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.

A common misunderstanding is that an organization has a uniform culture. All organizations

have culture, in the sense that they are surrounded in specific societal cultures and are part of
them. According to this, organization culture is a common perception held by the organizations
members. Everyone in the organization would have to share this perception. There can be a
dominant culture as well as subcultures throughout a typical organization.
Dominant Cultures
A dominant culture is a set of core values shared by a majority of the organizations members.
The values that create dominant cultures in organizations help guide the day-to-day behavior of
the employees.

Subculture
A subculture is a set of values shared by a minority, usually a small minority of the organizations
members. Subcultures typically are a result of problems or experiences that are shared by
members of a department or unit. Subcultures can weaken and undermine an organization if they
are in conflict with the dominant culture and overall objectives. Most subcultures are formed to
help the members of a particular group deal with the specific day-to-day problems with which
they are confronted. The members may also support many, if not all, of the core values of the
dominant culture
A New Concept: Whistle Blowing
Whistle blowing is commonly defined as "the disclosure by organization members of illegal,
immoral, or illegal practices under the control of their employers, to persons or organizations that
may be able to effect action". While whistle blowing includes disclosures both internal and
external to the organization, organizations benefit when employees choose to report internally.
Internal reporting facilitates early detection of misconduct and creates opportunity for timely
investigation and corrective action. Internal reporting also positions organizations to proactively
manage, or even avoid public embarrassment, government scrutiny, costly fines, and litigation.

BY GARETH MORGAN

Gareth Morgan describes culture as "an active living phenomenon through which people jointly
created and reconstruct the worlds in which they live." The three basic questions for cultural
analysts are:

 What are the common frames of position that make organization possible?
 Where do they come from?
 How are they created, communicated, and sustained?


Elements of organizational culture

 Stated and unstated values.

 Overt and implicit opportunity for member behavior.
 Customs and rituals.
 Stories and myths about the history of the group.
 Shop talk—typical language used in and about the group.
 Climate—the feelings evoked by the way members interact with each other, with
outsiders, and with their environment, including the physical space they occupy.
 Metaphors and symbols—may be unconscious but can be found embodied in other
cultural elements.

Essential strengths of the organizational culture

 It focuses attention on the human side of organizational life, and finds significance and
learning in even its most everyday aspects.
 It makes clear the importance of creating appropriate systems of shared meaning to help
people work together toward desired outcomes. 
 It requires members—especially leaders—to acknowledge the impact of their behavior on
the organization’s culture.
HOW DID ORGANIZATIONAL CULTURE START

While organizational cultures developed in different ways, the process usually involves some
version of the following steps:

A single person (founder) has an idea for a new enterprise.

The founder brings in one or more other key people and creates a core group that shares a
common vision with the founder. The founding core group begins to act in concert to create
an organization by raising funds, obtaining patents, incorporating, locating space, and
building.

Most of today’s successful corporate giants in all industries basically followed these steps.
Three well-known representative examples are Motorola, McDonald and Wal-Mart.

McDonalds: Ray Kroc worked for many years as a salesperson for a food supplier. He
learned how retail food operations were conducted. He also had an entrepreneurial streak and
began a sideline business with a partner. They sold Multimixers, machines that were capable
of mixing up to six frozen shakes at a time. One day Kroc received a large order for
Multimixers from the McDonald brothers. The order intrigued Kroc and he decided to look
in on the operation the next time he was in their area. When he did, Kroc became convinced
that the McDonalds fast food concept would sweep the nation. He bought the rights to
franchise McDonald’s units and eventually bought out the brothers. At the same time, he
built the franchisee on four basic concepts: quality, cleanliness, service and price. In order to
ensure that each unit offers the customer the best product at the best price franchisees are
required to attend McDonald University, where they are taught how to manage their
business. Here they learn the McDonald cultural values and the proper way to run the
franchisee. This training ensures that the franchisees all over the world are operating their
units in the same way. Kroc died several years ago, but the culture he left behind is still very
much alive in McDonald’s franchisees across the globe. In fact, new employees receive
videotaped messages from the late Mr. Kroc.
Wal-Mart: Sam Walton, founder of Wal-Mart Stores, Inc., opened his first Wal-Mart store in
1962. Focusing on the sale of discounted name brand merchandise in small town markets, he
began to set up more and more stores in the Sun Belt. At the same time, he began developing
effective inventory control systems and marketing techniques. Today, Wal-Mart has not only
become the largest retailer but also one of the biggest firms in the country. Although Sam died a
few years ago, his legacy and cultural values continue. To ensure that these values get out to all
the associates, the company has a communication network worthy of the Pentagon. It includes
everything from a six-channel satellite system to a private air force of numerous planes.
Everyone is taught this culture and is expected to operate according to the core cultural values of
hard work, efficiency and customer service.

Forms of organizational culture

Power Culture

Power cultures are usually found within a small or medium size organisation. Decisions in an
organisation that display a power culture are centralized around one key individual. As group
work is not marked in a power culture, the organisation can react quickly to dangers around it as
no discussion is involved. This culture has its problems, lack of conference can lead to staff
feeling undervalued and de-motivated, which can also lead to high staff turnover.

Role Culture

Common in most organisations today is a role culture. Under this most organisations are split
into various functions and each individual within the function is assigned a particular role. The
role culture has the benefit of specialization. Employees focus on their particular role as assigned
to them by their job description and this should increase productivity for the company. This
culture is quite logical to organize in a large organisation.

Task Culture

A task culture refers to a team based approach to complete a particular task. They are popular in
today's modern business society where the organisation will establish particular 'project teams' to
complete a task to date. A task culture clearly offers some benefits. Staff feels motivated because
they are empowered to make decisions within their team, they will also feel valued because they
may have been selected within that team and given the responsibility to bring the task to a
successful end. NASA organizes part of their culture around this concept i.e putting together
teams to oversee a mission.
Person culture

Person cultures are commonly found in charities or nonprofit organisations. The focus of the
organisation is the individual or a particular aim

Forward and backward looking cultures

Organisations that have an entrepreneurial spirit, always embrace change and listen to staff and
customers are said to be forward looking. Forward looking organisations are risk takers and do
well because of it. We can argue that Dyson the vacuum cleaner manufacturer embraces this
culture. A backward looking culture does not embrace change and is led by systems and
procedures. They do not take risk and because of it are usually left with a business not doing so
well UK store Marks and Spencer’s is said to be 'backward looking' i.e slow to change.

Characteristics of Organizational Culture

• Innovation and risk-taking.

  – The degree to which employees are encouraged to be innovative and take risks.

• Attention to detail
  – The degree to which employees are expected to exhibit precision, analysis, and attention to
detail.

• Outcome orientation.
  – The degree to which management focuses on results or outcomes rather than on technique and
process.

• People orientation.

 – The degree to which management decisions take into consideration the effect of outcomes on
people within the organization.

• Team orientation.
  – The degree to which work activities are organized around teams rather than individuals.
• Aggressiveness
  – The degree to which people are aggressive and competitive rather than easygoing.

• Stability
  – The degree to which organizational activities emphasize maintaining the status quo in contrast
to growth.

FUNCTIONS OF ORGANIZATIONAL CULTURE:

These are the functions being served by the organization
 Sense of identity
 Sense of making device
 Reinforcing the values in organization
 Control mechanism for shaping behavior

Sense of identity:
Culture provides a sense of identity to the members and enhances their commitment towards the
organization.

Sense of making device:

Culture in the organization provides the employees to interpret the meaning of the organizational
events.

Value reinforcement:
Values in the organization can be reinforced by the cultural activities.

Control mechanism:
In shaping the behavior of members in the organization culture plays the big role.
LEVELS OF CULTURE:
 Artifacts
 Values
 Basic Assumption

ARTIFACTS:

Artifacts are the most visible and accessible level of culture. It is symbol of culture in the
physical and social work environment of the organization.
Artifacts of culture are:

 Personal enactment
 Rites and Ceremonies
 Stories and legends
 Rituals
 Symbols

VALUES:

Values reflect a person’s underling believes in the organization, it is often consciously articulated
both in conversation and the company’s mission statement or annual report. A firms values and
how it promotes and publicizes them can also affect workers feeling about their job
and themselves.

BASIC ASSUMPTIONS:

Assumptions are deeply held believes that guide behavior and awakens the members of the
organization how to perceive and go about the things.
REVIEW OF LITERATURE

J.Shah, Organizational Culture and Job Satisfaction: It is to examine the organizational

culture and practices with emphasis on the value of satisfaction and motivational dynamics in the
areas of employee’s satisfaction and maintenance. The problem statement is based on whether it
is the overall organization culture which has the essential role in Integrated Services (IS), was
taken as sample size. The employees were asked through questionnaires about the culture they
recognize, prefer and job satisfaction at their workplace. The research study reveals that the
majority of employees at IS value the Organizational Behavior and Cultural variables such as
“Organization as Results Oriented Place, Loyalty and Mutual Trust Factor, Risk Initiation,
Innovation and Development in Work Setup, Challenging Work Environment”.

M.Vioria, Managing Organizational Culture in a Global Organization: The real part of the
global culture is that organizational culture must recognize culture diversity. Social norms create
differences across national boundaries that influence how people interact or interrelate socially.
Values and attitudes about similar situation also vary from country to country. Religion is yet
another source of cultural differences. Holidays, practices, and beliefs structures differ in very
fundamental ways that must be taken into account as one attempts to shape organizational culture
in a global setting.

Barbara T. Shapiro.(et.al).2007.

Purpose - To establish what managers need in terms of being acculturated and trained to manage
the implications of mergers and acquisitions (M&A) on their organizations considering the
variables: change, communications, leadership, culture and stress. Design/methodology/approach
- The article compiles strategies gleaned from academic research literature with particular
reference to the most common problems management encounters during M&A implementation
and execution. Findings - The independent variables that are key for successful M&A
implementation and execution are identified: communication, leadership and trust, organizational
culture, change and stress. The literature review demonstrates the important roles played by each
variable throughout the M&A process. Originality/value - The article provides management with
insights on how to prepare for M&A and design a sound behavioral approach in order to achieve
the expected post M&A gains and opportunities in a timely manner. This is significant in training
managers dealing with the M&A.
Pasi Pyöriä.  2007.

Purpose - The paper aims to serve as a reminder of the fact that creating a strong atmosphere of
trust and longevity in employee relations is ultimately the most robust route to maintaining a
sustainable competitive edge. Design/methodology/approach - In addition to a literature review,
empirical evidence is drawn from qualitative interview data. The research setting covers five
distinct business organizations representing technology industries and knowledge-intensive
business services. Findings - The paper indicates that even in knowledge-intensive firms a good
team spirit and skilful management remain more important than the use of the latest technology.
Furthermore, it is maintained that the role of information technology in supporting the decision-
making process in knowledge work is often very much overemphasized. However, modern
information technology continues the long trend of the automation and mechanization of work
and, if used properly, it can indirectly contribute to creating more space for interpersonal
interaction by eliminating routine work. Originality/value - The paper encourages practical
managers to focus more on people than on technology.

Appelbaum.H.Steven (et.al). 2007.

The aim of this paper is to establish what managers need in terms of being acculturated and
trained to manage the implications of mergers and acquisitions (M&A) on their organizations
considering the variables: change, communications, leadership, culture and stress. The paper
compiles strategies gleaned from academic research literature with particular reference to the
most common problems management encounters during M&A implementation and execution.
The independent variables key for successful M&A implementation and execution are identified:
1. communication, 2. leadership and trust, 3. organizational culture, 4. change and 5. stress.
The literature review demonstrates the important roles played by each variable throughout the
M&A process. The paper provides management with insights on how to prepare for M&A and
design a sound behavioral approach in order to achieve the expected post M&A gains and
opportunities in a timely manner. This is significant in training managers dealing with the M&A.
SOUTHWEST AIRLINES
Southwest Airlines was incorporated in Texas and commenced Customer Service on June 18,
1971, with three Boeing 737 aircraft serving three Texas cities - Houston, Dallas, and San
Antonio. Southwest operates more than 500 Boeing 737 aircraft between 67 cities. Southwest
topped the monthly domestic originating passenger rankings for the first time in May2003. Year
end results for 2008 marked Southwest 36th successive year of profitability. Southwest became a
major airline in 1989 when it exceeded the billion-dollar revenue mark. Southwest is the United
States most successful low-fare, high frequency, point-to-point carrier.
More than 38 years ago, Rollin King and Herb Kelleher got together and decided to start a
different kind of airline. They began with one simple notion: If you get your passengers to their
destinations when they want to get there, on time, at the lowest possible fares, and make darn
sure they have a good time doing it, people will fly your airline.

CULTURE DONE DIFFERENTLY

The Southwest Culture has thrived, but it hasn’t been easy. The durability has been both their
biggest accomplishment and their most significant challenge.
At Southwest, They think of Their Culture in a positive light, but every company has a culture,
whether that culture is supportive, active, fun or discouraging. The way they keep their Culture
supportive, active, and fun is by making Southwest Culture everyone responsibility.

The Culture Committees are just the beginning of what separates them from the way other
companies approach their culture. One of the most significant Southwest differences´ in their
search to protect and promote their Culture is the way it is surrounded in every aspect of the
Company. Hardly any company makes having a Fun-Loving Attitude´ a key pillar of their
leadership expectations. Those same expectations include The Golden Rule´ and possessing a
Servant Heart. ‘The annual Performance Appraisal for all of their Employees includes a section
on Southwest Culture. From an Employee initial interview until the day he or she retires, the
Southwest Culture is an ingrained part of daily life.

Southwest's no-layoff response to September 11 was a reminder to its employees of the

organization’s tradition of caring for its people. They always comment that they will do whatever
they can do to take care of their people."Southwest's organizational culture was shaped by
Kelleher's leadership. Kelleher's personality had a strong influence on the culture of Southwest,
which epitomized his spontaneity, energy and competitiveness. Southwest's culture had three
themes: love, fun and efficiency. Kelleher treated all the employees as a "lovely and loving
family". Kelleher knew the names of most employees and insisted that they referred to him as
Herb or Herbie. Kelleher's personality charmed workers and they reciprocated with loyalty and
dedication. Friendliness and familiarity also characterized the company's relationships with its
customers...

BUILDING RELATIONSHIPS

Southwest attempted to promote a close-knit, supportive and enduring family-like culture. The
Company initiated various measures to promote familiarity and informality among employees.
Southwest encouraged its people to conduct business in a loving manner. Employees were
expected to care about people and act in ways that declared their self-respect and worth.

ARTIFACTS

The artifacts which are the symbols of culture in the physical and social work environment can
be seen in the way the Southwest Company treats its employees. To help keep the Culture at the
forefront, they have two groups: Local Culture Committees and the Corporate Culture
Committee. Both groups put on low-cost Employee events throughout the year.

 The Employees roll up their sleeves to help out their area Ronald McDonald Houses at
blessing.
 Colleen Barrett who is the former President of southwest airlines sent cards to all
employees on their birthdays...
 The CEO joins with the Employees to wish happy blessing.
 Instead of decorating the wall of its headquarters with paintings, the company hung
photographs of its employees taking part at company events, news clippings, letters,
articles and advertisements.
 Customers are not assigned seats; rather, they are assigned to one of three "boarding
groups" depending on their check-in time and are left to choose their own seats on the
plane, which helps the airline to board passengers faster.
CISCO CULTURE
Cisco's organization culture was responsible for Cisco active back to profit after recording losses
during the tech meltdown of 2001. The case look sat Cisco's growth through the years, the
drivers of Cisco culture, and the characteristics of work culture at Cisco. Cisco had a culture
based on the principles of customer focus, transparent communication, employee empowerment,
integrity, and economy. The work culture, which epitomized fun and fostered a spirit of
employee involvement, ensured that employee turnover was way below industry norms.

WHAT DRIVES CISCO'S CULTURE?

CUSTOMERS FIRST

Cisco's success has been recognized to its relationship with its customers. Cisco perceived a
'worship of customers', which was a part of the company's culture right from its commencement.
"This is a culture where the customer comes first. If the customer has a problem, they drop
everything,” Cisco viewed the evaluation of customer satisfaction as a continuous process. One
of the elements of this evaluation was getting regular customer feedback, which helped Cisco
employees to be positive in identifying problem areas, rather than waiting for an annual customer
satisfaction survey. Cisco's field teams designed the questionnaires that were used to assess
customer satisfaction.

THE WORK CULTURE

The organizational structure of Cisco fostered a spirit of employee involvement. "Very often it's
most efficient to just work with the person involved, without the formality of passing through
every layer of management. But that requires a level of trust that not all organizations have. If a
Cisco employee wanted the top management support for an innovative idea, they can discuss the
idea with an employee decision-making team and get its assent. If the decision-making team
accepted the idea, the top management gave the green signal. "They are empowered to make that
decision because they put the authority, the responsibility, and the accountability at the same
layer.

RECRUITMENT AT CISCO

Cisco's recruitment practices reflected the company culture. Cisco's recruiting team identified
candidates whom they felt the company 'should hire' and then considered its hiring processes to
attract them to the company. The company was hiring at a rate which averaged 1000 new
employees every month. For recruiting candidates who fit into the culture of Cisco, a selection
measure was developed which targeted candidates who were careful, passionate about the future.
'BUILT TO LAST'

Cisco faced the risk of diluting its culture due to the influences of new recruits who brought in
behaviors from past job experiences. "We're focusing on what it will take to communicate the
culture and preserve it. That's another learning experience: Culture is not automation

In Conclusion, Cisco Systems appeals to business and employees in similar ways by offering a
standard to be the best provider and staying ahead of the competition. Their culture presence is
felt by worldwide leadership in technology by brining jobs, communications to countries and
government structures. Cisco offers a strong customer-responsive organization that blends with
cultural needs and service to its employees.

3M Culture
The case examines the organizational culture at 3M and the way in which it facilitated
innovation at 3M. The policies and mechanisms adopted by 3M's management to encourage the
spirit of innovation in its employees are also discussed.
The case takes a close look at 3M's environment of innovation; the culture of knowledge sharing;
and the reward system. It also discusses the steps implemented by the new CEO, James
McNerney, to accelerate growth at 3M. The impact of cultural change at 3M on the spirit of
innovation is also discussed.

ONE HUNDRED YEARS OF SUCCESSFUL INNOVATION

It was celebration time at 3M! The company completed 100 years in business in 2002. For many,
3M represented the house of innovation. For 100 years, 3M formula for growth - recruit the right
people, provide them with the right environment to work and let them do their things - resulted in
around 55,000 products and over thousands of patents for the company. Analysts attributed
3M'ssuccess to its commitment to innovation. They pointed out that 3M gave its employees the
freedom to conduct research in areas of their choice even if that research was not related to their
official projects.
By thus nurturing the talents of its employees and fostering a climate of innovation, 3M became
one of the most innovative companies in the world.
In 2001, James McNerney Jr. (McNerney) took over as Chairman and CEO of 3M and
announced several initiatives to revive the stagnating growth rate of the company. He initiated
cost cutting measures, rationalized purchases, and implemented process improvement programs
in the company. He gave a centralized direction to the company from its earlier laissez-faire
working style. Analysts cautioned that the changes brought about by McNerney might harm
the100-year old culture at 3M that fostered innovation and sustained its growth over the years.
However, McNerney pointed out that the changes brought about in 3M would provide the
company a strategic direction in a volatile business environment without harming its
organizational culture.

INVENTING 3M

In 1902, five businessmen founded Minnesota Mining and Manufacturing (popularly referred to
as 3M) in Two Harbors, US. The new company was in the business of mining corundum, a
mineral best suited for making sandpaper and grinding wheels. In 1904, when an artificial
abrasive replaced corundum, 3M decided to manufacture sandpaper. Edgar Ober (Ober), one of
the founding members of 3M, approached his friend Lucius Ordway (Ordway), a successful
businessman for funds for the new venture. Ordway agreed to invest $25,000 in the company, on
condition that he won't be involved in the day-to-day affairs of the company.
However, by 1906, Ordway had invested around $200,000 in 3M and had become involved in
the day-to-day affairs of the company. In the same year he became the President of the company.
When 3M realized that the corundum owned by it was a low-grade a north site, it decided to
shutdown the mine and shift to Duluth in 1905. In the same year, 3M decided to import
garnet5fromSpain. 3M received its first shipment of garnet in 1907 and started producing
sandpaper. By1911, 3M reported sales of $212, 898 and in the same year Ober appointed
William L. McKnight(McKnight), who joined the company in 1907 as assistant bookkeeper as
sales manager. In 1911, 3M brought out its first breakthrough product, Three-M-ite cloth. Three-
M-ite became the company's first profitable product.

FOSTERING INNOVATION
From its early days, 3M fostered a culture of innovation in its organization. McKnight tried to
create an organization that would encourage its employees to take the initiative and come up
with new ideas.

RECRUITING AND RETAINING TALENT

3M recruited people who were creative and had a broad range of interests. According to
company sources people who had a broad range of interests were willing to learn and explore
new ideas. In addition, they brought a multi-disciplinary approach to their work. To make it easy
for recruiters, 3M codified the six traits of innovative people in its recruiting brochure:
CREATING A CHALLENGING ENVIRONMENT

Initially 3M was organized into various product divisions. As these divisions increased in size,
McKnight noticed that there was a slowdown in innovation; not much time was devoted to new
product development.
To increase the pace of new product launches, McKnight introduced the philosophy of divide
and grow. In line with this philosophy, new businesses were spun off and new management
teams were devoted to the spun off units. As a result, these new units were able to grow quickly.
When these new businesses were spun off, the established divisions had to develop new products
and find new markets to achieve their growth objectives to make up for contributions from the
businesses that had become independent. This mechanism, which analysts called 'Renewal,'
resulted in increased diversification at3M.

CONCLUSION
Organizational culture is a pattern of basic assumptions that are taught to the personnel as the
correct way to perceive think and act on a day-To-day basis. Some of the important
characteristics of organizational culture are observed behavioral regularities, norms, values,
rules, philosophy and so on. While everyone in the organization will share the organization’s
culture, not all may do so to the same degree. There can be a dominant culture, but also a number
of subcultures. Some organizations have strong cultures and others have weak cultures. The
strength of the culture will depend on shared ness and intensity. In some cases organizations find
that they must change their culture in order to remain competitive and even survive in their
environment. With reference to the cases in this project, we had analyzed the value system of the
organization like CISCO, 3M and SOUTH WEST AIRLINES.3M has built its organizational
culture which holds its employees together in line with the vision and mission of the
organization-southwest airlines has built an organization of repute - an enterprise that stands
apart which even during the last economic downturn was unshaken. While CISCO has given its
culture an innovative and futuristic approach with customer as the top priority