Organizational Culture

Institutionalization: A forerunner of culture

When an organization takes on a life of its
own, apart from any of its members, becomes
valued for itself, and acquires immortality

Organizational Culture

A common perception held by the

organizations members; a system of shared
meaning
Seven primary characteristics
1.
2.
3.
4.
5.
6.
7.

Innovation and risk taking

Attention to detail
Outcome orientation
People orientation
Team orientation
Aggressiveness
Stability

Organizational Culture:
Meaning and Definition
Culture is a pattern of basic
assumptions invented, discovered or
developed by a given group as it learns
to cope with 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 the problems

Recognizing Culture in an
Organization

Types of Culture and

Organizational
Structure
Power culture: This culture draws from the power
and influence of a central figure or a select few
such that power radiates form the power - center
like a web

Role culture: This culture is built on the basis of

defined jobs, rules and procedures. This culture
operates according to logic and rationality, and its
strength lies in its functions or specialists
Task culture: This culture is team or project
oriented and adaptable. Focus is on problemsolving by pooling required resources and people
from various parts of the firm on a temporary basis
Person culture: The individual is the central point
in the person culture. The organisation exists to
help the individual rather than the other way
around

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

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

Strong cultures and

Weak
cultures
Various authors characterize strong culture as:
More members of the organisation display the
shared traits more frequently and with greater
commitment.
Homogeneous, or uniform across the organisation
Stable across time and situations, etc.

The agreement that some organizations are superior

in performance compared to their rivals is because of
their effective organizational cultures, is theoretically
considered quite a powerful macro level explanation
for organizational performance
This notion is also of great operational value to
managers who can segregate pro-performance
values, develop, communicate and reinforce them
throughout the organisation

Sub-cultures and Weak

Cultures
Weak culture a conceptual opposite of
Strong culture implies that there is no
congruence between the values of the
top management and the employees of
the organisation

Limitations of the study

and practice of Strong
culture
Cultures are not uniformly
strong throughout

Aspects of a strong culture may not affect different

performance-related processes in the same
organisation in the same way
Difficult to replicate a strong culture of one
organization elsewhere
Cultures are highly particular to specific nations,
industries, and individual organizations
More old culture more involvement thus more
resistance to change

How Can Effective Culture Be

Sustained?
Culture usually refers to a set of values and norms that

helped the organisation adapt effectively to its external

environment, and kept it integrated internally
Creation of artifacts that penetrate at various levels: By
definition, values are beliefs that generate preferences
Reinforcement of cultural messages through
rewards system the deciding of who gets rewarded
and why - is an unequivocal statement of organization's
values
Role modeling is done by usually the senior, more
experienced and more powerful persons in the
organisation; who guide, support and even mentor the
juniors
The different elements of culture at various levels of
visibility,
articulation,
manifestation
and
consciousness should be consistent among themselves
and coherent as a set

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

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 instruct 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.

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

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

Organizational Climate

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

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

Creating an Ethical
Organizational Culture
Characteristics of Organizations that Develop
High Ethical Standards
High tolerance for risk
Low to moderate in aggressiveness
Focus on means as well as outcomes

Managerial Practices Promoting an Ethical

Culture

Being a visible role model

Communicating ethical expectations
Providing ethical training
Rewarding ethical acts and punishing unethical
ones
Providing protective mechanisms

Creating a Positive
Organizational Culture
Positive Organizational Culture
A culture that:
Builds on employee strengths
Focus is on discovering, sharing, and building on the
strengths of individual employees

Rewards more than it punishes

Articulating praise and catching employees doing
something right

Emphasizes individual vitality and growth

Helping employees learn and grow in their jobs and
careers

Limits of Positive Culture:

May not work for all organizations or
everyone within them

Spirituality and
Organizational Culture
Workplace Spirituality
The recognition that people have an
inner life that nourishes and is nourished
by meaningful work that takes place in
the context of the community
NOT about organized religious practices

People seek to find meaning and

purpose in their work.

Characteristics of a
Spiritual Organization
Concerned with helping people
develop and reach their full potential
Directly addresses problems created
by work/life conflicts
Four characteristics of spiritual
organizations:
1. Strong sense of purpose
2. Trust and respect
3. Humanistic work practices
4. Toleration of employee expression

Criticisms of Spirituality
What is the scientific foundation?
It is still pending: needs more research

Are spiritual organizations legitimate: do

they have the right to impose values on
employees?
Spirituality is not about God or any religious
values
It is an attempt to help employees find meaning
and value in their work

Are spirituality and profits compatible?

Initial evidence suggests that they are
Spirituality may result in greater productivity and
dramatically lower turnover

Managing Cultural
Effectiveness in
Organizations in India

A typical culture in an organisation in India is

characterized by:
Affiliative and showing marked preference for
personalized relationships over contractual ones
Prone to dependency and the work ethic of
aram-se (at ease), chalta hai(its fine): low
work and high leisure
Hierarchy, status and authority oriented
Affection-deference relationships within in-groups
and likely favoritism and Power-play
Governed by social models and beliefs of
responsibility, authority, equality, and interpersonal
relationships even in the work context
Emphasis on applying parent-child model to bosssubordinate
relationship,
expectation
of
directiveness from boss and obedience from the
subordinate

Managing Cultural
Effectiveness in
Organizations in India
Creating commitment to super-ordinate
goals
Creating tolerance for dissent
Encouraging participative decision-making
Emphasizing ethics and developing norms
for ethical conduct
Use of training and development