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ORGANIZATIONAL CULTURE
ORGANIZATIONAL
CULTURE
Institutionalization: A Forerunner of Culture  Institutionalization A condition that occurs when an organization takes on
Institutionalization:
A Forerunner of Culture
Institutionalization
A condition that occurs when an organization
takes on a life of it‟s own, apart from any of
its members, and acquires immortality.
What is Organizational Culture?
What is Organizational Culture?
 Organizational culture, or corporate culture, comprises the attitudes, experiences, beliefs and values of an organization.
Organizational culture, or corporate
culture, comprises the attitudes,
experiences, beliefs and values of an
organization.
What is Organizational Culture? (cont’d)  Organizational culture refers to a system of shared meanings held
What is Organizational Culture?
(cont’d)
Organizational culture refers to a system of shared
meanings held by members that distinguishes the
organization from other organizations.
This system of shared meaning is, on closer
examination ,a set of key characteristics that the
organization values. Research suggests that there are
Seven primary characteristics that, capture the essence
of organization culture.
Essence Of Organization Culture
Essence Of Organization Culture
 Innovation & Risk Taking  Attention To Detail  Outcome Orientation  People Orientation 
Innovation & Risk Taking
Attention To Detail
Outcome Orientation
People Orientation
Team Orientation
Aggressiveness
Stability
Essence Of Organization Culture  Innovation & Risk Taking  Attention To Detail  Outcome Orientation
Some Types of Culture
Some Types of Culture
There are different types of culture just like there are different types of personality. Researcher Jeffrey
There are different types of culture just like there are
different types of personality. Researcher Jeffrey
Sonnenfeld identified the following four types of
cultures.
Academy Culture
Baseball Team Culture
Club Culture
Fortress Culture
Strong Versus Weak Cultures
Strong Versus Weak Cultures
Strong Versus Weak Cultures  It has become increasingly popular to differentiate between strong & weak


It has become increasingly popular to differentiate between strong & weak cultures.

Strong Versus Weak Cultures  It has become increasingly popular to differentiate between strong & weak
 It is assumed that strong cultures have a greater impact on employee behavior & are
It is assumed that strong cultures have a greater
impact on employee behavior & are more
directly related to turnover.
Culture Versus Formalization  A strong culture increases behavioral consistency and can act as a substitute
Culture Versus Formalization
A strong culture increases behavioral
consistency and can act as a substitute for
formalization.
High formalization in an organization creates
predictability, orderliness & consistency.
Organizational Culture Versus National Culture  National culture has a greater impact on employees than does
Organizational Culture Versus
National Culture
National culture has a greater impact on
employees than does their organization‟s culture.
Nationals selected to work for foreign
companies may be atypical of the local/native
population.

Do Organizations Have Uniform

Cultures?
Cultures?
 Dominant culture Expresses the core values that are shared by a majority of the organizations
Dominant culture
Expresses the core values that are shared by a majority of the
organizations members.
Subcultures
Mini-cultures within an organization 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.
A culture in which the core values are intensely held and widely shared.
Do Organizations Have Uniform Cultures?  Dominant culture Expresses the core values that are shared by
What Do Cultures Do? Culture’s Functions:  Defines the boundary between one organization and others. 
What Do Cultures Do?
Culture’s Functions:
Defines the boundary between one organization and others.
Conveys a sense of identity for its members.
Facilitates the generation of commitment to something
larger than self-interest.
Enhances the stability of the social system.
Serves as a sense-making and control mechanism for fitting
employees in the organization.
What Do Cultures Do?
What Do Cultures Do?
 Culture as a Liability:
Culture as a Liability:
What Do Cultures Do?  Culture as a Liability: • Barrier to change. • Barrier to

Barrier to change. Barrier to diversity Barrier to acquisitions and mergers

What Do Cultures Do?  Culture as a Liability: • Barrier to change. • Barrier to
Organizational Culture Evolution At each level of the organization, people will be working, acting, thinking and
Organizational Culture
Evolution
At each level of the organization, people will
be working, acting, thinking and feeling at
different levels of personal commitment.
Arthur F. Carmazzi author of “Directive
Communication psychology” classifies these
levels of commitment into three.
The level of individual •People rely on personal skill and leader direction. “SKILL “= level of
The level of individual
•People rely on personal skill and leader direction.
“SKILL “= level of “Individual”.
The level of group
•People have emotional connection to their work.
•Work with people who have similar attitudes
“ATTITUDE” = level of “Group”
The level of organization
•The Pinnacle of greatness comes when individuals see their work as their
purpose.
•The organization is a vehicle to doing or becoming something greater
that what it is.
“SELF-ACTUALISATION” = level of “Organization”
Levels of culture 1. The Blame Culture • Cultivates distrust and fear • People blame each
Levels of culture
1. The Blame Culture
Cultivates distrust and fear
People blame each other
Level of “individual”
Levels of culture 1. The Blame Culture • Cultivates distrust and fear • People blame each
2. Multi-directional culture • Cultivates minimized cross- department communication and cooperation •
2. Multi-directional culture
Cultivates minimized cross- department communication and
cooperation
Levels of culture 1. The Blame Culture • Cultivates distrust and fear • People blame each

Commitment borders on the level of “Individual” and “Group

Levels of culture 1. The Blame Culture • Cultivates distrust and fear • People blame each
Levels of culture 3. Live and let live culture - The culture is complacency - Manifests
Levels of culture
3. Live and let live culture
-
The culture is complacency
-
Manifests stagnation and low creativity
-
Commitment here is mixed between level of “Individual” &
“Group”.
4. Brand congruent culture
-
People believe in product or service of the organization.
-
People have similar goals.
-
People here operate at the level of “Group”
Levels of culture 5. Leadership enriched culture - People view the organization as an extension of
Levels of culture
5. Leadership enriched culture
-
People view the organization as an extension of themselves.
-
Individual goals are aligned with the goals of the organization.
-
As a group the organization is more a family.
-
Most everyone here is operating at the level of
“Organization”.
Culture maintenance
Developing and maintaining culture is important.
How Culture Begins
How Culture Begins
 Founders hire and keep only employees who think and feel the same way they do.
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.
Keeping Culture Alive Selection  Concern with how well the candidates will fit into the organization.
Keeping Culture Alive
Selection
Concern 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
organization‟s culture.
A Socialization Model Socialization Process
A Socialization Model
Socialization Process

Pre-Arrival

A Socialization Model Socialization Process Pre-Arrival Encounter Outcomes Productivity Metamorphosis Commitment Turnover

Encounter

A Socialization Model Socialization Process Pre-Arrival Encounter Outcomes Productivity Metamorphosis Commitment Turnover

Outcomes

A Socialization Model Socialization Process Pre-Arrival Encounter Outcomes Productivity Metamorphosis Commitment Turnover

Productivity

Metamorphosis

Commitment

A Socialization Model Socialization Process Pre-Arrival Encounter Outcomes Productivity Metamorphosis Commitment Turnover
A Socialization Model Socialization Process Pre-Arrival Encounter Outcomes Productivity Metamorphosis Commitment Turnover
Turnover
Turnover
Stages in the Socialization Process  Pre-arrival Stage The period of learning in the socialization process
Stages in the Socialization
Process
Pre-arrival Stage
The period of learning in the socialization process that occurs
before a new employee joins the organization.
Encounter Stage
The stage in the socialization process in which a new employee
sees what the organization is really like and confronts the
possibility that expectations and reality may diverge.
Metamorphosis Stage
The stage in the socialization process in which a new employee
changes and adjusts to the work, work group, and organization.

How Organization Cultures

Form
Form
How Organization Cultures Form Top Management Selection Criteria Philosophy Of Organization’s Founders Organization Culture Socialization

Top

Management

Selection

Criteria

How Organization Cultures Form Top Management Selection Criteria Philosophy Of Organization’s Founders Organization Culture Socialization
How Organization Cultures Form Top Management Selection Criteria Philosophy Of Organization’s Founders Organization Culture Socialization

Philosophy Of

Organization’s

Founders

Organization

Culture

How Organization Cultures Form Top Management Selection Criteria Philosophy Of Organization’s Founders Organization Culture Socialization
How Organization Cultures Form Top Management Selection Criteria Philosophy Of Organization’s Founders Organization Culture Socialization

Socialization

How Employees Learn Culture
How Employees Learn Culture
 Stories  Rituals  Material Symbols  Language
Stories
Rituals
Material Symbols
Language
How Employees Learn Culture  Stories  Rituals  Material Symbols  Language
Creating An Ethical Organizational Culture
Creating An Ethical Organizational
Culture
 Characteristics of Organizations that Develop High Ethical Standards: • • High tolerance for risk Low
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
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 Customer-Responsive Culture
Creating a Customer-Responsive
Culture
Creating a Customer-Responsive Culture  Key Variables Shaping Customer-Responsive Cultures • The types of employees hired
 Key Variables Shaping Customer-Responsive Cultures • The types of employees hired by the organization. •
Key Variables Shaping Customer-Responsive Cultures
The types of employees hired by the organization.
Low formalization: the freedom to meet customer service
requirements.
Empowering employees with decision-making discretion
to please the customer.
to please the customer.
Creating a Customer-Responsive Culture  Key Variables Shaping Customer-Responsive Cultures • The types of employees hired
(cont’d) • Good listening skills to understand customer messages. • Role clarity that allows service employees
(cont’d)
Good listening skills to understand customer
messages.
Role clarity that allows service employees to act
as “boundary spanners.”
Employees who engage in organizational
citizenship behaviors.
 Managerial Actions : • Select new employees with personality and attitudes consistent with high service
 Managerial Actions : • Select new employees with personality and attitudes consistent with high service
Managerial Actions :
Select new employees with personality and attitudes
consistent with high service orientation.
Train and socialize current employees to be more customer
focused.
• Change organizational structure to give employees more
control.
(cont’d) • Empower employees to make decision about their jobs. • Lead by conveying a customer-focused
(cont’d)
• Empower employees to make decision about
their jobs.
• Lead by conveying a customer-focused vision and
demonstrating commitment to customers.
• Conduct performance appraisals based on
customer-focused employee behaviors.
• Provide ongoing recognition for employees who
make special efforts to please customers.
Factual Backing
Factual Backing
Sigma Level Defects per million Cost effectiveness Four 6210 15-25% of sales Six 3.4 <1% of
Sigma Level
Defects per million
Cost effectiveness
Four
6210 15-25%
of
sales
Six
3.4
<1% of sales
Example: Motorola, GE, The Dabbawallahs of Mumbai.
Their backbone is the strong ethical and cultural influence of the organisation on
the employees .
Spirituality and Organization Culture Workplace spirituality :- The recognition that people have an inner life that
Spirituality and Organization 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.
Characteristics  Strong sense of purpose :- Spiritual organizations build their cultures around a meaningful purpose.
Characteristics
Strong sense of purpose :- Spiritual organizations build their cultures
around a meaningful purpose. Profits may be important, but are not
given the primary value.
Focus on individual development :- Spiritual organizations seek to
create cultures in which employees can continually learn and grow.
Trust and respect :- Spiritual organizations are characterized by
mutual trust, honesty and openness among employees. Managers are
not afraid to admit their mistakes.
 Humanistic work practices :- The practices embraced here may be flexible work schedules, narrowing of
Humanistic work practices :- The practices embraced here may
be flexible work schedules, narrowing of status differentials,
employee empowerment, job security, etc.
Toleration of employee expression :- Spiritual organizations
do not stifle employee expressions. They allow people to be
themselves and express their mood and feelings without any guilt.
Criticisms of spirituality :-  Firstly, there is very little research on workplace spirituality. We are
Criticisms of spirituality :-
Firstly, there is very little research on workplace
spirituality. We are not sure that whether the concept
will have staying power.
Secondly, it may be possible that the emphasis on
spirituality may make some of the employees uneasy or
uncomfortable.
There is a doubt that whether spirituality and profits are
compatible objectives. This is matter of importance for
the managers and investors in business.
Organization cultures can’t be changed :- Point Counterpoint  An organization‟s culture is based upon relatively
Organization cultures can’t be changed :-
Point
Counterpoint
An organization‟s culture is based upon relatively stable
characteristics which develop over years. Even the
employees choose the organization because they feel that
they will be a „ good fit‟.
It is therefore very difficult to reshape an organization‟s
culture.
However, in a survival-threatening crisis, the cultures need
to be changed accordingly and even the employees respond
to the change in such situations.
Factors responsible for the change of organization cultures :-  A dramatic crisis :- Situations like
Factors responsible for the change of organization cultures :-
A dramatic crisis :- Situations like a major financial set back, loss of a
major customer or a technological breakthrough by a competitor.
Turnover in leadership :- New top level management which can provide
a set of values effective in dealing with the crisis.
Weak culture :- A culture which is the one which is not agreeable among
the employees. Such cultures can be changed easily.
The management takes some immediate steps to amend the culture
like introduction of new values, promotions, transfers, job rotations and
terminations.
CONCLUSION  ORGANISATIONAL CULTURE BASICALLY REFERS TO THE SYSTEM OF SHARED MEANING HELD BY THE MEMBERS
CONCLUSION
ORGANISATIONAL CULTURE BASICALLY REFERS TO THE
SYSTEM OF SHARED MEANING HELD BY THE MEMBERS OF THE
ORGANISATION WHICH DISTINGUISHES IT FROM THE OTHERS
THE ORGANISATION CULTURES PEFORMS VARIOUS
FUNCTIONS.
THEY ACT AS BARRIERS TO CHANGE AND DIVERSITY IN THE
ORGANISATION AND ALSO PROVIDE A BARRIER FOR
ACQUISITIONS AND MERGERS WITH OTHER ORGANISATIONS
A CULTURE IS SUSTAINED BY PROPER SELECTION OF
EMPLOYEES, CODE OF CONDUCT OF THE TOP LEVEL
MANAGEMENT AND SOCIALISATION.
THE EMPLOYEES LEARN THE CULTURE THROUGH STORIES
RITUALS AND MATERIAL SYMBOLS. THEY ALSO GET USED TO
THE LANGUAGE USED IN THE COMPANY.
 A CUSTOMER RESPONSIVE CULTURE IS ONE OF THE BEST FORMS OF ORGANISATIONAL CULTURES.  A
A CUSTOMER RESPONSIVE CULTURE IS ONE OF THE BEST
FORMS OF ORGANISATIONAL CULTURES.
A SPIRITUAL ORGANISATION CULTURE IS A FORM OF CULTURE
WHICH DEALS WITH NOURISHING THE INNER LIFE OF THE
EMPLOYEES AND POSSESSES A DESIRE TO CONNECT WITH
OTHER HUMAN BEINGS AND COMMUNITIES. THE GOAL SET
OUTWEIGHS THE EARNING OF PROFITS IN SUCH
ORGANISATIONS
CHANGING AN ORGANISATION‟S CULTURE IS NOT AN EASY
PROCESS. THIS CAN BE DONE ONLY UNDER SOME SPECIAL
CIRCUMSTANCES AND OVER A LONG PERIOD OF TIME.
Revant Pande Anleey Pereira Mark Thank Rodricks You Sahil Khan Ajinkya Sonar
Revant Pande
Anleey Pereira
Mark Thank Rodricks You
Sahil Khan
Ajinkya Sonar