Organisational

Culture
Systematic system of shared meaning held

by members that distinguishes the

organisation from other ones.
This system of shared meaning is a set of key
characteristics that the organisation values.

Characteristics:
Innovation and Risk taking.
Attention to detail
Outcome Orientation
People Orientation
Team Orientation
Aggressiveness
Stability

Top
Manageme
nt

Philosophy of
Organisations
founders

Selection
Criteria

Organisatio
n Culture

Socializatio
n

SOCIABILIT
Y

High

Networked
(Club)

Communal
(Academy)

Low

Fragmente
d
(Fortress)

Mercenary
(Baseball)

Low

High
SOLIDARITY

The two
Dimensions:
Sociability:
Solidarity:

Measure of Friendliness.

Measure of Task
Orientation. High Solidarity means people can
overlook personal biases and rally behind
common interests and common goals. Solidarity
is consistent with high attention to detail and
high aggressiveness.

Four Culture
Types(Given by Goffee
& Jones):
Networked(high soc, low sol)
These organisations view members as family and
friends.The negative aspect associated with this culture is
that the focus on friendliness may lead to tolerance for poor
performance.

Mercenary (low soc, high sol)

These organisations are goal focused.They have a zest for
getting things done quickly and a powerful sense of
purpose.The negative point is that it can lead to inhumane
treatment of low performers.

 Fragmented (low soc, low

sol)

Commitment is first to these

organizations. Employees are judged on the
basis of their
productivity and quality of their work.

Communal (high soc, high sol)

Values both friendship and performance. Leaders
tends to be charismatic and inspirational. The
charismatic leaders tend to create disciples rather
than followers, resulting in a work climate that is
almost cult like.

Types as Given by
Sonnenfeld
Academy Culture (high soc, high sol)

Employees are highly skilled and tend to stay

in the organization, while working their way up
the rank. The organization provides a stable
environment in which employees can develop
and exercise their skills. Eg.- universities,
Hospitals etc.
Base Ball team culture (low soc, high sol)
Employees are free agents who have highly
prized skills. They are in high demand and can
rather easily get job elsewhere. Eg- Investment
banking, Advertising

Club Culture(high soc, low sol)

The most important requirement for

employees in this culture is to fit into the
group. Usually employee start at the bottom
and stay with the organization. Eg- military
etc.
Fortress(low soc, low sol)
Employee dont know if they will be laid or
not. These organization often undergo
massive reorganization. There are many
opportunities for those with timely,
specialized skills. Eg- Large car co.

Hofstede Dimension
Of Culture
Power Distance
Uncertainty Avoidance
Individualism and Collectivism
Masculinity v/s Feminity

Elements:
The Paradigm
Control System
Organisational Structure(Reporting

Lines,Hierarchy)
Power Structure
Symbols(Logos and Designs)
Rituals and Routines
Stories and Myths

Organisational Culture Assessment

Instrument
Externa
l

Internal

Flexible

Stability

CULTURAL
MULTIPLICITY
Culture is synthesis of mgmt values, styles &

communication
Synergistic collaboration b/w cultures
Ability & eagerness to learn
National & cultural framework
Multiplicity should translate into strength
unity in diversity, a USP for Indian mgrs:
Flexible response
Deliberate improvization
Creative innovation
Proactive tolerance

INDIA IS DIFFERENT
Strong business culture evolves along several

dimensions:
Timings: me-too approach
Innovation: proactive opportunistic
approach
Business systems: changing the rules of
established business in order to gain
competitive edge
Corporate strategy: strategie-cest moil

BIGGER, BETTER,
BRIGHTER DAYS AHEAD
Framework: hard & soft factors
Soft factors: corporate culture, corporate

communication, leadership style, individual

motivation, entry prerequisites, career modalities.
Hard factors: economic structures, organisational
structures, decision patterns, corporate strategy,
strategic success factors.
Willingness to learn, to review & revise
preconceptions, break prejudices & inhibitions
mgr need to look far beyond his own nose

Corporate communication
Individual motivation

Leadership style

Soft factors
Strategic success factors

Entry prerequisites

Career modalities

Integration of
country specific
features into
mgmt cultures of
corporations
Corporate strategy
Hard factors

Economic structures

Organizational structures

Decision patterns

Hard & soft dimensions of culture : A framework

CULTURES CAN BE
CHANGED.

In the following conditions the culture is/ can

be changed
Dramatic crisis: questioning the relevance of
current culture.
Turnover in leadership: provides new set of
key values to crisis.
Young and small organizations.
Weak culture.

 Stories about important events and people.

Organizational systems and procedures: the

way we do things around here.

Design of physical space, fercades and
buildings.
Organizational design and structure.

STRATEGIES ADOPTED BY LEADERS

FOR TRANSFORMING CULTURE IN
ORGANIZATION
Transformational leaders must promulgate
the culture
According to EDGAR H SCHEIN some steps :
Leaders should pay attention to control and
measures: something measured and
emphasized will have effects.
Leaders reactions to critical incidents and
organizational crisis: crisis brings out the
underlying core values.

Deliberate role modeling, teaching and

coaching: walking the talk is very necessary

for transforming the culture.

Managing & Changing

Culture
If culture is a critical determinant of
organisational effectiveness, then it is
essential for the organisational leaders to
understand the critical aspects of managing
and changing the organisational culture.
There are several conditions which facilitate
change and guidelines for initiating change.

Conditions for Cultural

There
are five situations that facilitate change
Change
in the culture:
When the environment is undergoing

fundamental changes, and the company has

always been highly value-driven.
When the industry is highly competitive and
the environment changes quickly.
When the company is mediocre, or worse.
When the company is truly at the threshold of
becoming a large corporation.
When the company is growing very rapidly.

Guidelines for facilitating

Culture

Managers can act as positive role models for the

cultural values.
New symbols and rituals can replace the earlier
ones.
Eg: Many organisations introduce a new dress code
for its members to create changes in the
organisational identity.
The reward system must encourage the acceptance
of new set of values.Employees practising new
values must be identified,supported and rewarded.
Eg: If the new values emphasise team-spirit the

performance system must reinforce group efforts

rather than individual achievement only.
The selection,placement and socialisation systems
must be to align with new values.
Since the major resistance to cultural change
comes from the subcultures,the efforts of the
manager must focus on either diluting their
influence in the organisation(eg: through extensive
job rotation) ,or should aim at integrating them in
the mainstream organisational culture.
Do not forget that culture is something which is
shared and not imposed.Employee acceptance
must be solicited through participation around new
values.

Driven by passion for new products with no end to challenges and opportunities.
Work hard Play hard ethics Goal: To make tech. seamless for everyone.
Style not too formal but result driven approach.
Focus on career opportunities & employability security, compensation and benefits offered.
Fosters Culture of Secrecy (Surprise factor)
Despite being coolest company, there is strong work ethics and commitment to deadlines.

Steve Jobs have made Apple an institution of himself.

 Wal-Mart: Founder Sam Waltons concern and respect for

staff from the foundation of the company creates an
environment of trust that persists to this day. Walton met
staff, calling them by their first name and encouraged
change to maintain the competitive edge.

Southwest Airlines: Its relaxed culture can be traced

back to unconventional CEO Herb Kelleher, who encourages

informality and wants staff to have fun at their jobs.
Employees are valued, with Kelleher acknowledging births,
marriages and deaths by notes and cards. Staff are
encouraged to pitch in and help out, especially at check-in,
giving Southwest turnaround times less than half the
industry average .

When Chrysler Corporation and Daimler-Benz

announced their merger in the late 1990s, it

caused a stir in the automotive industry.
Mergers and acquisitions have occurred in many
different industries, particularly in the 1980s
and 1990s, but the automotive industry had not
seen a merger of such large companies based
in different countries that had vastly different
corporate cultures. This research considers the
rationale for mergers and acquisitions in
general, and considers the potential and the
reality of the Daimler-Chrysler merger in
particular.

" Daimler-Benz was characterized by

methodical decision-making while Chrysler

encouraged creativity. Chrysler was the
very symbol of American adaptability and
resilience. Chrysler valued efficiency,
empowerment, and fairly egalitarian
relations among staff; whereas DaimlerBenz seemed to value respect for
authority, bureaucratic precision, and
centralized decision-making. These cultural
differences soon became manifest in the
daily activities of the company.

For example, Chrysler executives quickly

became frustrated with the attention

Daimler-Benz executives gave to trivial
matters, such as the shape of a pamphlet
sent to employees.
Another key issue at DCX was the differences
in pay structures between the two premerger entities. Germans disliked huge pay
disparities and were unlikely to accept any
steep revision of top management salaries.
But American CEOs were rewarded
handsomely.