ORGANIZATIONAL CULTURE

INTRODUCTION OF CULTURE
Culture is the collection of shared values, beliefs, norms, tradition, attitude and perception. In short, culture is the social glue that helps to hold an organization or society together by providing appropriate standards for what people should say or do. Example: Indian culture There is common beliefs that every body should respect to their elders give values to their opinions because of our culture.

Beliefs Culture

Shared values

It may be: country culture Organizational culture Group culture etc..

Norms and tradition

Prentice Hall, 2001

Attitude and perception

Chapter 17 3

ORGANIZATIONAL CULTURE

Culture is learned behavior Culture is shared Culture is symbolic Culture is all encompassing and integrated Cultures are dynamic Cultures are adaptive

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. In short, organizational culture as the set of shared beliefs, truths, assumptions, and values that operate in organizations It is not inborn. It has to be invented and letter developed over a period of time. It enables employees to perform within the framework of organizations culture.

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Environment both internal and external plays dominant role in developing the organizational culture and so does demographic factors. Thats why we generally refers to Japanese or American culture. It is therefore environment specific in nature. It is common binding factor in the organization thats helps to develop professionalism among its employees. It promotes standardization in various systems & subsystems, which reduce role conflict to a great extent

DIMENSION OF ORGANIZATION CULTURE

OUTCOME ORIENTED

In these cultures, management focuses on results or outcome rather than how these results are achieved In this culture people emphasize to achievement, results, and action as important values. A good example of an outcome-oriented culture may be the electronics retailer Best Buy. Having a culture emphasizing sales performance, Best Buy tallies revenues and other relevant figures daily by department. Employees are trained and mentored to sell company products effectively, and they learn how much money their department made every day. In 2005, the company implemented a Results Oriented Work Environment (ROWE) program that allows employees to work anywhere and anytime; they are evaluated based on results and fulfillment of

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Outcome-oriented cultures hold employees as well as managers accountable for success and use systems that reward employee and group output. In these companies, it is more common to see rewards tied to performance indicators as opposed to seniority or loyalty. Research indicates that organizations that have a performance-oriented culture tend to outperform companies that are lacking such a culture. At the same time, when performance pressures lead to a culture where unethical behaviors become the norm, individuals see their peers as rivals, and short-term results are rewarded, the resulting unhealthy work environment serves as a

STABLE CULTURE
Stable cultures are predictable, rule-oriented, and bureaucratic. When the environment is stable and certain, these cultures may help the organization to be effective by providing stable and constant levels of output. These cultures prevent quick action and, as a result, may be a misfit to a changing and dynamic environment. Example: Public sector institutions may be viewed as stable cultures. In the private sector, Kraft Foods is an example of a company with centralized decision making and rule orientation that suffered as a result of the culture-environment mismatch.

PEOPLE ORIENTED CULTURE

People-oriented cultures value fairness, supportiveness, and respecting individual rights. In these organizations, there is a greater emphasis on and expectation of treating people with respect and dignity. One study of new employees in accounting companies found that employees, on average, stayed 14 months longer in companies with people-oriented cultures. Starbucks is an example of a people-oriented culture. The company pays employees above minimum wage, offers health care and tuition reimbursement benefits to its part-time as well as full-time employees, and has creative perks such as weekly free coffee for all associates. As a result of these policies, the company benefits from

TEAM ORIENTED CULTURE

Companies with a team-oriented culture are collaborative and emphasize cooperation among employees. For example, Southwest Airlines facilitates a teamoriented culture by cross-training its employees so that they are capable of helping one another when needed. The company also emphasizes training intact work teams. In Southwests selection process, applicants who are not viewed as team players are not hired as employees. In team-oriented organizations, members tend to have more positive relationships with their co

The growth in the number of passengers flying with Southwest Airlines from 1973 until 2007 when Southwest surpassed American Airlines as the most flown U.S. airline. While price has played a role in this, their emphasis on service has been a key piece of their culture and competitive advantage.

DETAILED ORIENTED CULTURE

Organizations with a detail-oriented culture are characterized in the OCP framework as emphasizing precision and paying attention to details. Such a culture gives a competitive advantage to companies in the hospitality industry by helping them to differentiate themselves from others. For example, Four Seasons and Ritz Carlton are among hotels who keep records of all customer requests such as which newspaper the guest prefers or what type of pillow the customer uses. This information is put into a computer system and used to provide a better service to returning customers. Any requests hotel employees receive, as well as overhear, might be entered into the database to

INNOVATIVE CULTURE

innovative cultures are flexible, adaptable, and experiment with new ideas. These companies are characterized by a flat hierarchy and titles and other status distinctions tend to be downplayed. For example, W. L. Gore & Associates is a company with innovative products such as GORE-TEX (the breathable fabric that is windproof and waterproof), GOOGLE and W.L Gore are the most innovative company in the United States by Fast Companymagazine in 2004. W. L. Gore consistently manages to innovate and capture the majority of market share in a wide variety of industries, in large part because of its unique culture. In this company, employees do not have bosses in the traditional sense, and risk taking is encouraged by celebrating failures as well as successes. These Companies encourage their employees to take risks by allowing engineers to devote 20% of their time to projects of their own choosing.

Aggressive culture

Companies with aggressive cultures value competitiveness and outperforming competitors; by emphasizing this, they often fall short in corporate social responsibility. For example, Microsoft is often identified as a company with an aggressive culture. The company has faced a number of antitrust lawsuits and disputes with competitors over the years. In aggressive companies, people may use language such as we will kill our competition. In the past, Microsoft executives made statements such as we are going to cut off Netscapes air supplyEverything they are selling, we are going to give away, and its aggressive culture is cited as a reason for getting into new legal troubles before old

IMPORTANCE OF ORGANIZATIONAL CULTURE

They may have an emphasis on product quality, customer care or employee relations. Therefore the organizational culture influences organizational strategy, performance and policies. By organizational culture we can make the decision and resolved the conflicts that is very necessary for the growth and development of any organization. It promotes formal communication that improve productivity and job satisfaction.

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India is a multi religious, multi lingual, & multi cultural society. Organizational culture promotes equality and work culture.

ELEMENTS OF ORGANIZATIONAL CULTURE

G. Johnson identify a number of elements that can be used to describe or influence Organizational Culture. The Paradigm Control Systems Organizational Struct. Power structure Symbols Rituals and routines Stories and myths

THE PARADIGM
The "paradigm means the pattern or model of the work environment What the organization is about What it does, Its mission, and Its values The Mission statement of Real Madrid, a soccer club is to provide a solid career path to their players and a

competitive edge, to help players perform better.

PHYSICAL LAYOUT
A companys building, layout of employee offices, and other workspaces communicate important messages about a companys culture. This includes both the structure defined by the organization chart, and the unwritten lines of power that indicate whose contributions are most valued. For example, visitors walking into the Nike campus can witness firsthand some of the distinguishing characteristics of the companys culture. The campus is set on 74 acres and boasts an artificial lake, walking trails, soccer fields, and cutting-edge fitness centers. The campus functions as a symbol of Nikes values such as energy, physical fitness, an emphasis on quality, and a competitive orientation. In addition, at fitness centers on the Nike headquarters, only those using Nike shoes and apparel are allowed in.

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This sends a strong signal that loyalty is expected. The companys devotion to athletes and their winning spirit are manifested in campus buildings named after famous athletes, photos of athletes hanging on the walls, and their statues dotting the campus.

POWER STRUCTURE
Who makes the decisions; how widely power is spread; what is power based This may involve one or two key senior executives, a whole group of executives, or even a department For example, Dell Inc., that has a policy such as all pricing decisions of their product will be made at corporate headquarters is likely to have a centralized culture that is hierarchical, as opposed to decentralized and empowering.

SYMBOLS
An arbitrary sign (written or printed) that has acquired a conventional significance Something visible that by association or convention represents something else that is invisible These include organizational logos and designs, but also extend to symbols of power such as parking spaces and executive washrooms. "the eagle is a symbol of the United States, Pegasus is the symbol of Ferrari

RITUALS AND ROUTINES

Rituals refer to repetitive activities within an organization that have symbolic meaning. Usually rituals have their roots in the history of a companys culture. They create a sense of belonging among employees. This determines what is expected to happen in given situations, and what is valued by management. Management meetings, board reports and so on may become more habitual than necessary.

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For example, at the cosmetics firm Lakme Inc., employees attend ceremonies recognizing their top salespeople with an award of a new cartraditionally a pink Cadillac. These ceremonies are conducted in large auditoriums where participants wear elaborate evening gowns and sing company songs that create emotional excitement. During this ritual, employees feel a connection to the company culture and its values such as self-determination, willpower, and enthusiasm. Another example of rituals is the Saturday morning meetings of Wal-Mart. This ritual was first created by the company founder Sam Walton, who used these meetings to discuss which products and practices were doing well and which required adjustment. He was able to use this information to make changes in Wal-Marts stores before the start of the week, which gave him a competitive advantage over rival stores who would make their adjustments based on weekly sales figures during the middle of the following week. Today,

CONTROL SYSTEM
The ways that the organization is controlled. These include financial systems, quality systems, and rewards (including the way they are measured and distributed within the organization.) For Example, quality control, cost control financial control.

STORIES AND MYTHS

Stories and Myths build up about people and events, and convey a message about what is valued within the organization It may be the story of a particular person, who had perform exceptionally well or an event. We tell the story of that person or event to their employee or customers

LEVELS 0F CULTURE
Three interrelated levels of culture are Assumptions Shared values Artifacts

Basic assumption

BASIC ASSUMPTION
At the deepest level, below our awareness, lie basic assumptions. These assumptions are taken for granted and reflect beliefs about human nature and reality These are the fallout of shared value system and observable artifacts of culture. Employees, over a period of time form within themselves a common cultures. For Example, In Bajaj automobiles, everybody comes in times to the plant. So punctuality is the common assumption that is embedded in their organization.

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In Maruti Udhog, Safety is accorded a high priority. So Workers health and safety in plant therefore is assumed a common assumption

SHARED VALUES
At the second level, values exist. Values are shared principles, standards, and goals Shared values lie at the very heart of the organizational culture. It helps turn routine activities into valuable, Important actions, tie the corporation to important value of society, which may provide very distinctive source of competitive advantages.

OBSERVABLE ARTIFACTS OF CULTURE

These are the symbols of culture in physical and social work environment. These are visible and most accessible. They includes organizational heroes. Organizational culture emanates from the top management and their leadership styles. These leaders become the role model. Employees would like to copy their behavior, work ethics and represent what an organization stands for.. For example, Narayan murthy is the observable artifact to their employees in the Infosys culture

INTERRELATION OF THESE THREE..

For example, in an organization, a basic assumption is employees and managers share might be that happy employees benefit their organizations. This might be translated into values such as egalitarianism, high-quality relationships, and having fun. The artifacts reflecting such values might be an executive open door policy, an office layout that includes open spaces and gathering areas equipped with pool tables, and frequent company picnics.

STRONG Vs WEAK CULTURE

A strong culture is one that is shared by

organizational membersthat is, a culture in which most employees in the organization show consensus regarding the values of the company. The stronger a companys culture, the more likely it is to affect the way employees think and behave. For example, cultural values emphasizing customer service will lead to higher-quality customer service if there is widespread agreement among employees on the importance of customerservice-related values. Where culture is strongpeople do things because they believe it is the right thing to do.

For example: Infosys inc.

Infosys has a very strong work culture -- it is a place where there is minimal hierarchy and people are unafraid to voice new ideas and give the values to their ideas. Infoscions enjoy trust at the workplace and have a friendly environment within which to perform their duties. All employees have a sense of pride and belonging. company had created a workplace where politics are kept down to a minimum and where employees enjoy the strong work culture.

WEAK CULTURE

weak culture is said to exist where there is little alignment with organizational values and control must be exercised through extensive procedures and bureaucracy

FUNCTION OF ORGANIZATIONAL CULTURE

It gives members an organizational identity It facilitates collective commitment It promotes systems stability It shapes behavior by helping members make sense of their surroundings It provides a boundary It helps organizational members stick to conformity and expected mode of behavior It encourage the individual in public for good work done

Hofstedes cultural model

Hofstede identified five dimensions of culture in his study of nations.

Power Distance Individualism vs. Collectivism Uncertainty Avoidance Masculinity vs. Femininity Long-Term Orientation vs Short-Term Orientation

1.Power distance
This dimension identifies how much the less powerful members of institutions and organizations expect and accept that power is distributed unequally. In cultures with small power distance (e.g. Australia, Austria, Denmark, Ireland, Israel, New Zealand), people expect and accept power relations that are more consultative or democratic. In cultures with large power distance (e.g. Malaysia), the less powerful accept power relations that are autocratic or paternalistic.

2.Individualism vs. Collectivism

This dimension identifies how much members of the culture define themselves apart from their group memberships. In individualist cultures, people are expected to develop and display their individual personalities and to choose their own affiliations In collectivist cultures, people are defined and act mostly as a member of a long-term group, such as the family, a religious group, an age cohort, a town, or a profession, among others.

3.Masculinity vs. femininity

This dimension identifies the value placed on traditionally male or female values In so-called 'masculine' cultures, people (whether male or female) value competitiveness, assertiveness, ambition, and the accumulation of wealth and material possessions. In so-called 'feminine' cultures, people (again whether male or female) value relationships and quality of life This dimension is often renamed by users of Hofstede's work to Quantity of Life vs. Quality of Life

4.Weak vs. strong uncertainty avoidance

This dimension identifies how much members of a society are anxious about the unknown, and as a consequence, attempt to cope with anxiety by minimizing uncertainty. In cultures with strong uncertainty avoidance, people prefer explicit rules (e.g. about religion and food) and formally structured activities. In cultures with weak uncertainty avoidance, people prefer implicit or flexible rules or guidelines and informal

5.Long vs. short term orientation

This dimension identifies a society's "time horizon," or the importance attached to the future versus the past and present. In long term oriented societies, people value actions and attitudes that affect the future: persistence/perseverance, thrift, and shame. In short term oriented societies, people value actions and attitudes that are affected by the past or the present: normative statements, immediate stability, protecting one's own face, respect for tradition, and reciprocation of

Deal and Kennedy's cultural model

Deal and Kennedy's model of culture is based on characterizing different four types of organization, based on 1.How quickly they receive feedback and reward after they have done something 2.The level of risks that they take

4 Types of culture

1.Work-hard, play-hard culture

This has rapid feedback/reward and low risk, leading to: Stress coming from quantity of work rather than uncertainty. High-speed action leading to high-speed recreation. Eg. Restaurants, software companies.

2.Tough-guy macho culture

This has rapid feedback/reward and high risk, leading to: Stress coming from high risk and potential loss/gain of reward. Focus on the present rather than the longerterm future. Eg. police, surgeons, sports.

3.Process culture
This has slow feedback/reward and low risk, leading to: Low stress, plodding work, comfort and security. Stress may come from internal politics and stupidity of the system. Development of bureaucracies and other ways of maintaining the status quo. Focus on security of the past and of the future.

4.Bet-the-company culture
This has slow feedback/reward and high risk, leading to: Stress coming from high risk and delay before knowing if actions have paid off. The long view is taken, but then much work is put into making sure things happen as planned. Eg. aircraft manufacturers, oil companies.

Types of cultures
Acc. To Charles handy, there are four types of Organisational Culture

The Task Culture The Role Culture The Power culture The Person Culture

The Power Culture

Handy describes the power culture as a web. He suggests that this reflects the concentration of power of a familyowned business, which can either be extremely large or small. The family operation with strict responsibilities going to family members responsibility given to personalities rather than expertise creates the power structure of the web.

The Role Culture

This has been typified as a Greek temple and has often been stereotyped as portraying bureaucracy in its purest form. The apex of the temple is where the decision making takes place, the pillars of the temple reflect the functional units of the organisation which have to implement the decisions from the apex. . Interaction takes place between the functional specialism by job descriptions, procedures, rules and systems.

Co-ordination is by a narrow band of senior staff.

The Task Culture

This type of organisations are involved in extensive research and development activities. create temporary task teams to meet their future needs.

The culture is represented best by a net or lattice work. There is close liaison between departments, functions and specialities, liaison, communication and integration are the means whereby the organisation can anticipate and adapt to change quickly.

The Person Culture

It is a consensus model of management, where the individuals within the structure determine collectively the path which the organisation pursues. Organisations which portray this culture reject formal hierarchies for getting things done and exist solely to meet the needs of their members. The rejection of formal management control and reporting relationships suggests that this may be a suitable culture for a self-help group or a commune, etc., but it is not appropriate for business organisations.

ROLES OF ORGANIZATIONAL CULTURE

Carry out job analysis periodically Define clearly the job requirements Celebrate the festivals that the employee greatly value Organize the social function Ensures the quality decision Show concern to all employee Encourage innovative ideas and reward them

ORGANIZATIONAL CULTURE AND CHANGE

There are a number of methodologies specifically dedicated to organizational culture change such as Peter Senges Fifth Discipline and Arthur F Carmazzi's Directive Communication. Cummings & Worley give the following six guidelines for cultural change, these changes are in line with the eight distinct stages mentioned by Kotter. 1. Formulate a clear strategic vision. 2. Display Top-management commitment.

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4. Modify the organization to support organizational change. 5. Select and socialize newcomers and terminate deviants. 6. Develop ethical and legal sensitivity.

Thank you