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Dedication

This work is respectfully dedicated to Our

Parents

&

Prof. Ahmad RanaWho did their best to uplift us to the heightsOf ideal and successful life.

Love u all very much2

Organizational Culture

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Presented to:

Prof. Ghulam Ahmad Rana

Presented by:Mian Skandar (1694)Mohsin Javed (1707)Hassan Nazir (1688)Ahmad Fraz (1690)

Hajvery University, Euro camp. Lahore.

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The Meaning & Content

• No Universal Definition.

• Various Conceptual Frameworks.

• Dimensions of OC.

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Every Organization has its own distinctive culture which

sets it apart from all other organizations, including those

which are operating in the same field.

Organizational culture basically refers to a system of

shared norms, beliefs, values, assumptions, attitudes and

behaviours which bind the members of the organization

together and determine ‚how we do things around here‘.

What is Organizational Culture?

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What is Organizational Culture?

• A system of meaning shared by the organization’s members

• Cultural values are collective beliefs, assumptions, and feelings about what things are good, normal, rational, valuable, etc.

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Is There a Difference Between Organizational & Corporate Culture?

Organizational culture and corporate culture are usually used interchangeably.

Both refer to the collective values, outlooks and approaches within an organization.

Obviously, the term corporate culture focuses on for-profit corporations, while organizational culture extends to all forms of organizations including small business, privately held companies and nonprofit organizations. However, the meaning is essentially the same.

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Culture’s Overall Function

Culture is the social glue that helps hold an organization together by providing

appropriate standards for what employees should say or do.

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What Is Organizational Culture?

• Innovation and risk taking

• Outcome orientation

• People orientation

• Aggressiveness

• Family-friendly

Several research studies have been conducted over the years

in the US and other countries to determine the

relationship between Organiza-tional Culture and

Organizational Performance.

Excercize caution in interpreting the results of these

researches because studies undertaken in one country

reflect the cultural, social and psychological context of that

country and may not be valid for countries like Pakistan.

Organizational Culture – A Note of Caution!

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Schein (1985)

“ …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 those problems.”

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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).”

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How OrganizationalCultures Form

Philosophy

of the

Organization’s

Founders:

Ben & Jerry,

Herb Kelleher,

Bill Gates

Organizational

CultureSelection

Top

Management

Socialization

How Culture Begins

• 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.

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Profile of OCCultures Focus Climate Ethos

Autocratic/ Proper Dependency+ All opposite Feudal Protocol Affiliation values of

OCTAPACEBureaucratic Rules & Control + safe playing,

Regulations Dependency inertia, conflict& closed

Technocratic Perfection Expert power proaction, + Extension autonomy,

collaboration, experimentation

Entrepreneurial/ Results, Achievement OCTAPACEDemocratic/ Customers +ExtensionOrganic

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Organizational Culture ProfileOrg Culture Dimensions Dimension Characteristics

InnovationExperimenting, opportunity seeking, risk taking, few rules, low cautiousness

Stability Predictability, security, rule-oriented

Respect for people

Fairness, tolerance

Outcome orientation

Action oriented, high expectations, results oriented

Attention to detail

Precise, analytic

Team orientation

Collaboration, people-oriented

Aggressiveness Competitive, low emphasis on social responsibility

Source: O’Reilly et al (1991)

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How Employees Learn Culture

• Stories

• Rituals

• Material Symbols

• Language

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How EmployeesLearn Culture/

How it is “reinforced”

Material

SymbolsLanguage

Stories Rituals

Artifacts- Window into Culture

1. Organizational Stories/ Legends-serve as powerful prescriptions of the way things

should (should not) be done.

2. Rituals -the programmed routine of daily organization life

that dramatizes the organization culture

3. Ceremonies:- planned activities specifically for the benefit of an audience.

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4. Organizational Language:-language of the workplace

speaks volume about company’s culture.

5. Physical Structure and Symbols:

-size, shape, location of head office; layout of organization’s offices

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Cultural Analysis Technique

• Diagnosing Organizational Culture for Strategic Application (DOCSA)

– Hofstede identifies dimensions of organizational culture (www.docsa.com)

– When applied to different subsidiaries of an MNC different corporate cultures can be identified and proactive solutions developed to ensure compatibility between all subsidiaries

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Organizational Culture

Controlling behavior

Defining boundaries

Conveying identity

Promoting commitment

Blocking mergers

Inhibiting diversity

Inhibiting change

Blocking acquisitions

Functions Liabilities

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Do Organizations Have Uniform Cultures

CoreValues

SubculturesDominantCulture

Do Organizations Have Uniform Cultures?

Dominant Culture

Expresses the core values that

are shared by a majority of the

organization’s members

Subcultures

Minicultures within an

organization, typically defined by

department designations and

geographical separation

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Do Organizations Have Uniform Cultures? (cont’d)

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

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Culture’s Effects on Managerial Process

• Decision Making (Central/Decentralization)

• Safety vs. Risk

• Individual vs. Group Rewards

• Informal/Formal Procedures

• Organizational Loyalty

• Co-operation vs. Competition

• Time Horizons- Long or Short

• Stability Innovation

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Dimensions of Corporate Culture

Motivation

Activities-------------------------------Outputs

To be consistent and precise To be pioneers. To

To strive for accuracy and pursue clear aims and

Attention to detail. To refine objectives. To innovate

And perfect. Get it right. and progress.

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Dimensions of Corporate Culture

Relationship

Job-----------------------------------Person

To put the demands of the job To put the needs of the

before the needs of the individual before the

Individual needs of the job

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Dimensions of Corporate Culture

Identity

Corporate-----------------------------Professional

To identify with and uphold the To pursue the aims and

expectations of the employing ideals of each professional

organizations practice.

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Dimensions of Corporate Culture

Communication

Open----------------------------------Closed

To stimulate and encourage To monitor and control

a full and free exchange the exchange and

of information and opinion accessibility of information

and opinion

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Dimensions of Corporate Culture

Control

Tight -------------------------------Loose

To comply with clear and To work flexibly and

definitive systems and adaptively according

procedures. to the needs of thesituation.

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Dimensions of Corporate Culture

Conduct

Conventional----------------------------Pragmatic

To put the expertise and To put the demands and

standards of the employing expectations of customer

organization first. To do what first. To do what they ask.

we know is right.

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Mohsin Javaid

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Fullfillment-orientated

Incubator

Project-Oriented

Guided Missile

FamilyPower-oriented

culture

Eiffel-TowerRule-oriented

culture

Equity

PersonEmphasis

Hierarchy

TaskEmphasis

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• Family culture– Strong emphasis on hierarchy and orientation to

the person

– Family-type environment that is power oriented and headed by a leader who is regarded as a caring parent

– Management looks after employees, and tries to ensure that they are treated well and have continued employment

– May catalyze and multiply the energies of the personnel or end up supporting a leader who is ineffective and drains their energies and loyalties

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• Eiffel Tower

– Strong emphasis on hierarchy and orientation to the

task

– Jobs are well defined, and everything is coordinated

from the top

– This culture is narrow at the top, and broad at the

base

– Relationships are specific, and status remains with the job.

– Managers seldom create off-the-job relationships with their people, because they believe this could affect their rational judgment

– This culture operates very much like a formal hierarchy—impersonal and efficient and loyalties

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• Guided Missile

– Strong emphasis on equality in the workplace and

orientation to the task

– This culture is oriented to work

– Work typically is undertaken by teams or project

groups

– In projects, formal hierarchical considerations are given low priority, and individual expertise is of greatest importance

– All team members are equal (or at least potentially equal

– All teams treat each other with respect, because they may need the other for assistance

– Egalitarian and task-driven organizational culture

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• Incubator

– Strong emphasis on equality and personal

orientation

– Based on the premise that organizations

serve as incubators for the self-expression

and self-fulfillment of their members

– Little formal structure

– Participants in an incubator culture are there primarily to perform roles such as confirming, criticizing, developing, finding resources for, or helping to complete the development of an innovative product or service

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Hassan Nazir

Strong Corporate Identity

develops when employees have a sense of belonging, and feel proud of working with the organization, which develops as a result of interaction of employees with the organization.

* Developing an attractive Induction Booklet* Films on success experiences in the organization* Company newsletters* Mobility of People

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Benefits of Strong Corporate Cultures

Strong

Organizational

Culture

Social

Control

Improves

Sense-Making

Social

Glue

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Developing important values

Values of excellence and human consideration develop only by demonstrating these values in action.

* Surveys of Values and differences b/w espousedv/s practiced values

* Special value orientation programmes* Examining the various systems operating in the

organization* Special OD intervention in Cooperation and

Collaboration

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What is a healthy Organizational Culture?

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A healthy organizational culture is one which should help all the supervisors and employees of the company to be on the same page as those in charge.

A good organizational culture is of benefit to every member of the company from the very top to the very bottom.

If any group of workers feels marginalized, then the culture can be improved.

Building Healthy traditions & practices

Traditions are built in org. on the basis of important Functional rituals or celebrations

* Induction programme for new entrant* Promotions as transition* Ritual associated with “old age” and retirement* Exceptional behaviour* Celebration of special individual & important

organizational days

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Ahmad Fraz

Changing Culture

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Changing Culture

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Changing the organizational culture of a workplace can be difficult. But, it may be necessary to improve workplace performance.

A leader can have a profound impact on the work environment, but he or she must work down through the layers of supervision.

Changing 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

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# 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

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# Identify obstacles and sources of resistance and develop strategies for getting around them

# Institutionalize, model and reinforce the changes in culture

# Continually reassess the organization’s culture and establish a norm of continuous learning and transformation

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How to Change Culture

• Have top-management people become positive role models, setting the tone through their behaviour.

• Create new stories, symbols, and rituals to replace those currently in vogue.

• Select, promote, and support employees who espouse the new values that are sought.

• Redesign socialization processes to align with the new values.

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How to Change Culture

• Change the reward system to encourage acceptance of a new set of values.

• Replace unwritten norms with formal rules and regulations that are tightly enforced.

• Shake up current subcultures through transfers, job rotation, and/or terminations.

• Work to get peer group consensus through utilization of employee participation and creation of a climate with a high level of trust.

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How to Change Culture

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Unfreezing

• Arouse dissatisfaction with the current state– Tell them about deficiencies in organization

• Activate and strengthen top management support– Need to break down power centers

• Use participation in decision making– Get people involved

• Build in rewards– Tie rewards to change/use recognition, status symbols, praise

to get people to go along

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Moving

• Establish goals– E.G. Make business profitable by end of next

year• Institute smaller, acceptable changes that reinforce and support change– E.G. Procedures and rules, job descriptions,

reporting relationships• Develop management structures for change– E.G. Plans, strategies, mechanisms that

ensure change occurs• Maintain open, two-way communication

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Refreezing

• Build success experiences– Set targets for change, and have everyone work toward targets

• Reward desired behaviour– GOOD - reward behaviour that reinforces changes– BAD - reward old system (e.g., people relying on old systems while

computerization is going on)• Develop structures to institutionalize the change– Organizational retreats, appropriate computer technology,

performance appraisals that examine change efforts• Make change work

Effects ofOrganizational Culture

Functional• Boundary-defining role

• Conveys a sense of identity

• Facilitates the generation of commitment

• Enhances social system stability

• Sense-making and controlmechanism

Dysfunctional

• Shared values do not agree with organization’s effectiveness

• Environment is dynamic

• Entrenched culture in rapid change

• Hinders ability to respond to changes

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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

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Problems with Strong Cultures

• Culture content might be incompatible with the organization’s environment.

• Strong cultures focus attention on one mental model.

• Strong cultures suppress dissenting values from subcultures.

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Adaptive Organizational Cultures

• External focus -- firm’s success depends on continuous change

• Focus on processes more than goals

• Strong sense of ownership

• Proactive --seek out opportunities

AP/Wide World

Strengthening

Organizational

Culture

Foundersand leaders

Culturallyconsistentrewards

Stableworkforce

Selectionandsocialization

Managing theculturalnetwork

Strengthening Organizational Culture

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Point-Counter Point

• Why Culture Doesn’t Change Culture develops over many

years, and becomes part of how the organization thinks and feels

Selection and promotion policies guarantee survival of culture

Top management chooses managers likely to maintain culture

• When Culture Can Change There is a dramatic crisis

There is a turnover in leadership

The organization is young and small

There is a weak culture

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Bicultural Audit

• Part of due diligence in merger

• Minimizes risk of cultural collision by diagnosing companies before merger

• Three steps in bicultural audit:1. Examine artifacts

2. Analyze data for cultural conflict/compatibility

3. Identify strategies and action plans to bridge cultures

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Merging Organizational Cultures

Assimilation

Deculturation

Acquired company embraces acquiring

firm’s cultural values

Acquiring firm imposes its culture on

unwilling acquired firm

IntegrationCultures combined into a new composite

culture

SeparationMerging companies remain separate with

their own culture

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Our Visit to State life Insurance Corporation

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Interview With Lahore Zone Head

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Mr. Shafeeq Bhullar

Interview With Sales Manager

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Mr. Muhammad Yousuf.

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Questions

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Mr. Shafeeq: Friendly environment, Unity, Punctuation.

Mr Yousuf: Unity, Honesty, Motivation

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Q 1.If you could describe your corporate culture in three words, what would you say?

Q 2. What are the most common complaints employees make about your company culture?

• Mr. Shafeeq: Usually they don’t have any complain, some time some new employees get disturb by Delay in Payments, Long process of payments.

• Mr. Yousuf: There is no complain, we have frankly culture, we work here as family.

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