ORGANIZATIONAL CULTURE

Definition
Pareek (1995) a cumulative preference of some states of life over others (values), the predispositions concerning responses towards several significant issues and phenomena (attitudes), organized ways of filling time in relation to certain affairs (rituals), and ways of promoting desired behaviours and preventing undesirable ones (sanctions).

Organizational culture is a set of shared beliefs, truths, assumptions, and values that operate in organizations. Organizational culture has been described as "...how people behave when no one is looking."

What Is Organizational Culture?

Innovation and risk taking (3M) Outcome orientation (Bausch & Lomb)

People orientation (SWA)

Aggressiveness (Microsoft) Family-friendly (SAS Institute)

What Do Cultures Do?

Cultures 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

Culture as a Liability
Barrier to change Occurs when cultures values are not aligned with the values necessary for rapid change Barrier to diversity Strong cultures put considerable pressure on employees to conform, which may lead to institutionalized bias Barrier to acquisitions and mergers Incompatible cultures can destroy an otherwise successful merger

Organization culture : charactersitics

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 staff.

Contd.
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.

Do Organizations Have Uniform Cultures?

Culture is a descriptive term: it may act as a substitute for formalization
Dominant Culture Expresses the core values that are shared by a majority of the organizations members Subcultures Minicultures within an organization, typically defined by department designations and geographical separation

Contd.
Core Values The primary or dominant values that are accepted throughout the organization
Strong Culture A culture in which the core values are intensely held and widely shared

How Culture Begins

Stems from the actions of the founders: Founders hire and keep only employees who think and feel the same way they do. Founders indoctrinate and socialize these employees to their way of thinking and feeling. The founders own behavior acts as a role model that encourages employees to identify with them and thereby internalize their beliefs, values, and assumptions.

Developing Culture involves

Developing a strong corporate identity
Development of important values

Building healthy traditions

Developing consistent management practices

How Organizational Cultures Form

Organizational cultures are derived from the founder They are sustained through managerial action

Keeping Culture Alive

Selection Concerned with how well the candidates will fit into the organization Provides information to candidates about the organization Top Management Senior executives help establish behavioral norms that are adopted by the organization Socialization The process that helps new employees adapt to the organizations culture

Stages in the Socialization Process

Prearrival The period of learning prior to a new employee joining the organization Encounter When the new employee sees what the organization is really like and confronts the possibility that expectations and reality may diverge Metamorphosis When the new employee changes and adjusts to the work, work group, and organization

Socialization Program Options

Choose the appropriate alternatives: Formal versus Informal Individual versus Collective Fixed versus Variable Serial versus Random Investiture versus Divestiture Socialization outcomes: Higher productivity Greater commitment Lower turnover

How Employees Learn Culture

Stories Anchor the present into the past and provide explanations and legitimacy for current practices Rituals Repetitive sequences of activities that express and reinforce the key values of the organization Material Symbols Acceptable attire, office size, opulence of the office furnishings, and executive perks that convey to employees who is important in the organization Language Jargon and special ways of expressing ones self to indicate membership in the organization

Stories

Rituals

How Employees Learn Culture/ How it is reinforced

Material Symbols

Language

Types
Autocratic or feudal culture is characterized by centralized power concentrated in a few persons, and observation of proper protocol in relation tothe person/s in power. Bureaucratic culture is characterized by primacy of procedures and rules, hierarchy and distant and impersonal relationship. Technocratic culture emphasizes technical / professional standards and improvement. Entrepreneurial culture in concerned about achievement of results and providing excellentservices to the customers.

Global Implications
Organization cultures, while strong, cant ignore local culture Managers should be more culturally sensitive by: Speaking slowly and in a low tone Listening more Avoiding discussions of religion or politics All global firms (not just U.S. firms) need to be more culturally sensitive

Culture as an Intervening Variable

Employees form an overall subjective perception of the organization based on these objective factors:

The opinions formed affect employee performance and satisfaction.

Building Culture
Recruitment and selection. Socialization. Performance Evaluation. Leadership. - Employee Motivation & Decision Making Compensation Packages. Grievance Handling. Conflicts & Differences handling. Discipline & Morale Career Planing and Development

Measuring Organizational Culture

Quantitative Questionnaire & Survey
Qualitative Depth Interview Clinical Intervention Analyzing Visual Artifacts. Analyzing stories, rituals and myths. Participant Observation.

Constituents of Organizational Culture

Determinants - Societal Culture - Shared learning from shared history - Leadership - Consistent Mgt. practices - Structural Stability Dimensions -Visual Artifacts - Values
- Rituals - Stories & Myths - Assumptions

Consequences - Performance - Behaviour

Why Culture Doesnt Change

Culture develops over many years, and becomes part of how the organization thinks and feels
Selection and promotion policies guarantee survival of culture

When Culture Can Change

There is a dramatic crisis

There is turnover in leadership The organization is young and small There is a weak culture

Top management chooses managers likely to maintain culture

Changing Organizational Culture

Understand the environmental & other forces that will influence your future strategy Determine what are the core values that have been fundamental to your business identity, core purpose & success and that you will not compromise Create a shared vision of what the company needs to become Assess the existing culture & determine what elements of culture need to change

Contd.
Determine what changes need to occur to implement strategy and address the gaps Define the role of senior management in leading the culture change

Craft an implementation plan with targets of intervention, time lines, milestones & accountabilities Communicate the need for change and plan for change and create motivation and buy in among key stake holders

Contd.
Identify obstacles and sources of resistance and develop strategies for getting around them Institutionalize, model and reinforce the changes in culture Continually reassess the organizations culture and establish a norm of continuous learning and transformation

Summary and Managerial Implications

Strong cultures are difficult for managers to change In the short run, strong cultures should be considered fixed Selecting new hires that fit well in the organizational culture is critical for motivation, job satisfaction, commitment, and turnover Socialization into the corporate culture is important As a manager, your actions as a role model help create the cultural values of ethics, spirituality, and a positive culture

THANK YOU
Submitted by:Amardeep Bhat Jamaaljyot Singh Harvinder Singh Bhatia Pankaj