ORGANIZATIONAL ORGANIZATIONAL CULTURECULTURE

Institutionalization:Institutionalization: A Forerunner of Culture A Forerunner of Culture

InstitutionalizationInstitutionalization

A condition that occurs when an A condition that occurs when an organization takes on a life of it’s organization takes on a life of it’s own, apart from any of its own, apart from any of its members, and acquires members, and acquires immortality.immortality.

What is Organizational What is Organizational Culture?Culture?

Organizational cultureOrganizational culture, or , or corporate culturecorporate culture, comprises , comprises the attitudes, experiences, beliefs the attitudes, experiences, beliefs and values of an organization.and values of an organization.

What is Organizational What is Organizational Culture? (cont’d)Culture? (cont’d)

Organizational culture refers to a system of Organizational culture refers to a system of shared meanings held by members that shared meanings held by members that distinguishes the organization from other distinguishes the organization from other organizations.organizations.

This system of shared meaning is, on closer This system of shared meaning is, on closer examination ,a set of key characteristics that examination ,a set of key characteristics that the organization values. Research suggests that the organization values. Research suggests that there are Seven primary characteristics that, there are Seven primary characteristics that, capture the essence of organization culture.capture the essence of organization culture.

Essence Of Organization Essence Of Organization CultureCulture

Innovation & Risk TakingInnovation & Risk Taking Attention To DetailAttention To Detail Outcome OrientationOutcome Orientation People OrientationPeople Orientation Team OrientationTeam Orientation AggressivenessAggressiveness StabilityStability

Some Types of Culture Some Types of Culture

There are different types of culture just There are different types of culture just like there are different types of personality. like there are different types of personality. Researcher Jeffrey Sonnenfeld identified Researcher Jeffrey Sonnenfeld identified the following four types of cultures. the following four types of cultures.

Academy Culture Academy Culture Baseball Team Culture Baseball Team Culture Club Culture Club Culture Fortress Culture Fortress Culture

Strong Versus Weak Strong Versus Weak CulturesCultures

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

It is assumed that strong cultures It is assumed that strong cultures have a greater impact on employee have a greater impact on employee behavior & are more directly related behavior & are more directly related to turnover.to turnover.

Culture Versus Culture Versus FormalizationFormalization

A strong culture increases A strong culture increases behavioral consistency and can act behavioral consistency and can act as a substitute for formalization.as a substitute for formalization.

High formalization in an High formalization in an organization creates predictability, organization creates predictability, orderliness & consistency.orderliness & consistency.

Organizational Culture Organizational Culture Versus National CultureVersus National Culture

National culture has a greater National culture has a greater impact on employees than does their impact on employees than does their organization’s culture.organization’s culture.

Nationals selected to work for Nationals selected to work for foreign companies may be atypical foreign companies may be atypical of the local/native population.of the local/native population.

Do Organizations Have Do Organizations Have Uniform Cultures?Uniform Cultures?

Dominant cultureDominant culture

Expresses the core values that are shared by a majority Expresses the core values that are shared by a majority of the organizations members.of the organizations members.

SubculturesSubcultures

Mini-cultures within an organization defined by Mini-cultures within an organization defined by department designations and geographical department designations and geographical separation.separation.

Core valuesCore values

The primary or dominant values that are accepted The primary or dominant values that are accepted throughout the organizationthroughout the organization

Strong cultureStrong culture

A culture in which the core values are intensely held A culture in which the core values are intensely held and widely shared.and widely shared.

What Do Cultures Do?What Do Cultures Do?

Culture’s Functions:Culture’s Functions:

Defines the boundary between one Defines the boundary between one organization and others.organization and others.

Conveys a sense of identity for its members.Conveys a sense of identity for its members.

Facilitates the generation of commitment to Facilitates the generation of commitment to something larger than self-interest.something larger than self-interest.

Enhances the stability of the social system.Enhances the stability of the social system.

Serves as a sense-making and control Serves as a sense-making and control mechanism for fitting employees in the mechanism for fitting employees in the organization.organization.

What Do Cultures Do?What Do Cultures Do?

Culture as a Liability:Culture as a Liability:

• Barrier to change.Barrier to change.

• Barrier to diversityBarrier to diversity

• Barrier to acquisitions and mergersBarrier to acquisitions and mergers

Organizational Culture Organizational Culture EvolutionEvolution

At each level of the organization, At each level of the organization, people will be working, acting, people will be working, acting, thinking and feeling at different thinking and feeling at different levels of personal commitment.levels of personal commitment.

Arthur F. Carmazzi author of Arthur F. Carmazzi author of “Directive Communication “Directive Communication

psychology” classifies these psychology” classifies these levels of commitment into three.levels of commitment into three.

The level of individualThe level of individual•People rely on personal skill and leader direction.People rely on personal skill and leader direction.

““SKILL “= level of “Individual”.SKILL “= level of “Individual”.

The level of groupThe level of group•People have emotional connection to their work.People have emotional connection to their work.•Work with people who have similar attitudesWork with people who have similar attitudes

““ATTITUDE” = level of “Group”ATTITUDE” = level of “Group”

The level of organizationThe level of organization•The Pinnacle of greatness comes when individuals see The Pinnacle of greatness comes when individuals see their work as their purpose.their work as their purpose.•The organization is a vehicle to doing or becoming The organization is a vehicle to doing or becoming something greater that what it is.something greater that what it is.

““SELF-ACTUALISATION” = level of “Organization”SELF-ACTUALISATION” = level of “Organization”

Levels of cultureLevels of culture

1. The Blame Culture1. The Blame Culture• Cultivates distrust and fearCultivates distrust and fear• People blame each otherPeople blame each other• Level of “individual”Level of “individual”

2. Multi-directional culture2. Multi-directional culture• Cultivates minimized cross- department Cultivates minimized cross- department

communication and cooperationcommunication and cooperation• Commitment borders on the level of Commitment borders on the level of

““IndividualIndividual” and “” and “GroupGroup””

Levels of cultureLevels of culture

3. Live and let live culture3. Live and let live culture- The culture is complacencyThe culture is complacency- Manifests stagnation and low creativityManifests stagnation and low creativity- Commitment here is mixed between level of Commitment here is mixed between level of

“Individual” & “Group”.“Individual” & “Group”.

4. Brand congruent culture4. Brand congruent culture- People believe in product or service of the People believe in product or service of the

organization.organization.- People have similar goals.People have similar goals.- People here operate at the level of “Group”People here operate at the level of “Group”

Levels of cultureLevels of culture

5. Leadership enriched culture5. Leadership enriched culture- People view the organization as an extension of People view the organization as an extension of

themselves.themselves.- Individual goals are aligned with the goals of the Individual goals are aligned with the goals of the

organization.organization.- As a group the organization is more a family.As a group the organization is more a family.- Most everyone here is operating at the level of Most everyone here is operating at the level of

“Organization”.“Organization”.

Culture maintenanceCulture maintenance

Developing and maintaining culture is important.Developing and maintaining culture is important.

How Culture BeginsHow Culture Begins

Founders hire and keep only employees Founders hire and keep only employees who think and feel the same way they do.who think and feel the same way they do.

Founders indoctrinate and socialize these Founders indoctrinate and socialize these employees to their way of thinking and employees to their way of thinking and feeling.feeling.

The founders’ own behavior acts as a role The founders’ own behavior acts as a role model that encourages employees to model that encourages employees to identify with them and thereby internalize identify with them and thereby internalize their beliefs, values, and assumptions.their beliefs, values, and assumptions.

Keeping Culture AliveKeeping Culture Alive

SelectionSelection Concern with how well the candidates will fit into Concern with how well the candidates will fit into

the organization.the organization. Provides information to candidates about the Provides information to candidates about the

organization.organization.

Top ManagementTop Management Senior executives help establish behavioral norms Senior executives help establish behavioral norms

that are adopted by the organization.that are adopted by the organization.

SocializationSocialization The process that helps new employees adapt to The process that helps new employees adapt to

the organization’s culture.the organization’s culture.

A Socialization ModelA Socialization Model

OutcomesOutcomes

Socialization ProcessSocialization Process

MetamorphosisEncounter

Productivity

Turnover

CommitmentPre-Arrival

Stages in the Stages in the Socialization ProcessSocialization Process

Pre-arrival StagePre-arrival Stage The period of learning in the socialization process The period of learning in the socialization process

that occurs before a new employee joins the that occurs before a new employee joins the organization.organization.

Encounter StageEncounter Stage The stage in the socialization process in which a new The stage in the socialization process in which a new

employee sees what the organization is really like employee sees what the organization is really like and confronts the possibility that expectations and and confronts the possibility that expectations and reality may diverge.reality may diverge.

Metamorphosis StageMetamorphosis Stage The stage in the socialization process in which a new The stage in the socialization process in which a new

employee changes and adjusts to the work, work employee changes and adjusts to the work, work group, and organization.group, and organization.

How Organization How Organization Cultures FormCultures Form

Philosophy OfOrganization’s

Founders

SelectionCriteria

Organization Culture

Socialization

Top Management

How Employees Learn How Employees Learn CultureCulture

StoriesStories RitualsRituals Material SymbolsMaterial Symbols LanguageLanguage

Creating An Ethical Creating An Ethical Organizational CultureOrganizational Culture

Characteristics of Organizations that Characteristics of Organizations that Develop High Ethical Standards:Develop High Ethical Standards:

• High tolerance for riskHigh tolerance for risk• Low to moderate in aggressivenessLow to moderate in aggressiveness• Focus on means as well as outcomesFocus on means as well as outcomes

Managerial Practices Promoting an Managerial Practices Promoting an Ethical CultureEthical Culture

• Being a visible role model.Being a visible role model.• Communicating ethical expectations.Communicating ethical expectations.• Providing ethical training.Providing ethical training.• Rewarding ethical acts and punishing Rewarding ethical acts and punishing unethical ones.unethical ones.• Providing protective mechanisms.Providing protective mechanisms.

Creating a Customer-Creating a Customer-Responsive CultureResponsive Culture

Key Variables Shaping Customer-Key Variables Shaping Customer-Responsive CulturesResponsive Cultures

• The types of employees hired by the The types of employees hired by the organization.organization.

• Low formalization: the freedom to meet Low formalization: the freedom to meet customer service requirements.customer service requirements.

• Empowering employees with decision-making Empowering employees with decision-making discretion to please the customer.discretion to please the customer.

(cont’d)(cont’d)• Good listening skills to understand Good listening skills to understand

customer messages.customer messages.• Role clarity that allows service Role clarity that allows service

employees to act as “boundary employees to act as “boundary spanners.”spanners.”

• Employees who engage in Employees who engage in organizational citizenship behaviors.organizational citizenship behaviors.

Managerial Actions :Managerial Actions :• Select new employees with personality and Select new employees with personality and

attitudes consistent with high service attitudes consistent with high service orientation.orientation.

• Train and socialize current employees to be Train and socialize current employees to be more customer focused.more customer focused.

• Change organizational structure to give Change organizational structure to give employees more control.employees more control.

(cont’d)(cont’d)• Empower employees to make decision Empower employees to make decision

about their jobs.about their jobs.

• Lead by conveying a customer-Lead by conveying a customer-focused vision and demonstrating focused vision and demonstrating commitment to customers.commitment to customers.

• Conduct performance appraisals Conduct performance appraisals based on customer-focused employee based on customer-focused employee behaviors.behaviors.

• Provide ongoing recognition for Provide ongoing recognition for employees who make special efforts employees who make special efforts to please customers.to please customers.

Factual BackingFactual BackingSigma 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 Spirituality and Organization CultureOrganization Culture

Workplace spirituality :-Workplace spirituality :-

The recognition that people have an inner life that The recognition that people have an inner life that nourishes and is nourished by meaningful work that nourishes and is nourished by meaningful work that takes place in the context of the community.takes place in the context of the community.

CharacteristicsCharacteristics

Strong sense of purpose :- Strong sense of purpose :- Spiritual organizations Spiritual organizations build their cultures around a meaningful purpose. build their cultures around a meaningful purpose. Profits may be important, but are not given the Profits may be important, but are not given the primary value.primary value.

Focus on individual development :- Focus on individual development :- Spiritual Spiritual organizations seek to create cultures in which organizations seek to create cultures in which employees can continually learn and grow.employees can continually learn and grow.

Trust and respect :- Trust and respect :- Spiritual organizations are Spiritual organizations are characterized by mutual trust, honesty and openness characterized by mutual trust, honesty and openness among employees. Managers are not afraid to admit among employees. Managers are not afraid to admit their mistakes.their mistakes.

Humanistic work practices :- Humanistic work practices :- The practices The practices embraced here may be flexible work schedules, embraced here may be flexible work schedules, narrowing of status differentials, employee narrowing of status differentials, employee empowerment, job security, etc.empowerment, job security, etc.

Toleration of employee expression :- Toleration of employee expression :- Spiritual Spiritual organizations do not stifle employee expressions. organizations do not stifle employee expressions. They allow people to be themselves and express They allow people to be themselves and express their mood and feelings without any guilt. their mood and feelings without any guilt.

Criticisms of spirituality :-Criticisms of spirituality :-

Firstly, there is very little research on Firstly, there is very little research on workplace spirituality. We are not sure that workplace spirituality. We are not sure that whether the concept will have staying power. whether the concept will have staying power.

Secondly, it may be possible that the Secondly, it may be possible that the emphasis on spirituality may make some of emphasis on spirituality may make some of the employees uneasy or uncomfortable.the employees uneasy or uncomfortable.

There is a doubt that whether spirituality and There is a doubt that whether spirituality and profits are compatible objectives. This is profits are compatible objectives. This is matter of importance for the managers and matter of importance for the managers and investors in business. investors in business.

Organization cultures can’t be Organization cultures can’t be changed :-changed :-

Point CounterpointPoint Counterpoint

An organization’s culture is based upon relatively An organization’s culture is based upon relatively stable characteristics which develop over years. stable characteristics which develop over years. Even the employees choose the organization Even the employees choose the organization because they feel that they will be a ‘ good fit’.because they feel that they will be a ‘ good fit’.

It is therefore very difficult to reshape an It is therefore very difficult to reshape an organization’s culture. organization’s culture.

However, in a survival-threatening crisis, the However, in a survival-threatening crisis, the cultures need to be changed accordingly and even cultures need to be changed accordingly and even the employees respond to the change in such the employees respond to the change in such situations.situations.

Factors responsible for the change of organization Factors responsible for the change of organization cultures :-cultures :-

A dramatic crisis :-A dramatic crisis :- Situations like a major financial set back, Situations like a major financial set back, loss of a major customer or a technological breakthrough by a loss of a major customer or a technological breakthrough by a competitor.competitor.

Turnover in leadership :- Turnover in leadership :- New top level management which New top level management which can provide a set of values effective in dealing with the crisis.can provide a set of values effective in dealing with the crisis.

Weak culture :-Weak culture :- A culture which is the one which is not A culture which is the one which is not agreeable among the employees. Such cultures can be changed agreeable among the employees. Such cultures can be changed easily.easily.

The management takes some immediate steps to amend the The management takes some immediate steps to amend the culture like introduction of new values, promotions, transfers, job culture like introduction of new values, promotions, transfers, job rotations and terminations.rotations and terminations.

CONCLUSION CONCLUSION  ORGANISATIONAL CULTURE BASICALLY REFERS TO THE ORGANISATIONAL CULTURE BASICALLY REFERS TO THE

SYSTEM OF SHARED MEANING HELD BY THE MEMBERS OF SYSTEM OF SHARED MEANING HELD BY THE MEMBERS OF THE ORGANISATION WHICH DISTINGUISHES IT FROM THE THE ORGANISATION WHICH DISTINGUISHES IT FROM THE OTHERSOTHERS

THE ORGANISATION CULTURES PEFORMS VARIOUS THE ORGANISATION CULTURES PEFORMS VARIOUS FUNCTIONS.FUNCTIONS.

THEY ACT AS BARRIERS TO CHANGE AND DIVERSITY IN THEY ACT AS BARRIERS TO CHANGE AND DIVERSITY IN THE ORGANISATION AND ALSO PROVIDE A BARRIER FOR THE ORGANISATION AND ALSO PROVIDE A BARRIER FOR ACQUISITIONS AND MERGERS WITH OTHER ACQUISITIONS AND MERGERS WITH OTHER ORGANISATIONSORGANISATIONS

A CULTURE IS SUSTAINED BY PROPER SELECTION OF A CULTURE IS SUSTAINED BY PROPER SELECTION OF EMPLOYEES, CODE OF CONDUCT OF THE TOP LEVEL EMPLOYEES, CODE OF CONDUCT OF THE TOP LEVEL MANAGEMENT AND SOCIALISATION.MANAGEMENT AND SOCIALISATION.

THE EMPLOYEES LEARN THE CULTURE THROUGH STORIES THE EMPLOYEES LEARN THE CULTURE THROUGH STORIES RITUALS AND MATERIAL SYMBOLS. THEY ALSO GET USED RITUALS AND MATERIAL SYMBOLS. THEY ALSO GET USED TO THE LANGUAGE USED IN THE COMPANY.TO THE LANGUAGE USED IN THE COMPANY.

A CUSTOMER RESPONSIVE CULTURE IS ONE OF THE A CUSTOMER RESPONSIVE CULTURE IS ONE OF THE BEST FORMS OF ORGANISATIONAL CULTURES.BEST FORMS OF ORGANISATIONAL CULTURES.

A SPIRITUAL ORGANISATION CULTURE IS A FORM OF A SPIRITUAL ORGANISATION CULTURE IS A FORM OF CULTURE WHICH DEALS WITH NOURISHING THE CULTURE WHICH DEALS WITH NOURISHING THE INNER LIFE OF THE EMPLOYEES AND POSSESSES A INNER LIFE OF THE EMPLOYEES AND POSSESSES A DESIRE TO CONNECT WITH OTHER HUMAN BEINGS DESIRE TO CONNECT WITH OTHER HUMAN BEINGS AND COMMUNITIES. THE GOAL SET OUTWEIGHS THE AND COMMUNITIES. THE GOAL SET OUTWEIGHS THE EARNING OF PROFITS IN SUCH ORGANISATIONSEARNING OF PROFITS IN SUCH ORGANISATIONS

CHANGING AN ORGANISATION’S CULTURE IS NOT AN CHANGING AN ORGANISATION’S CULTURE IS NOT AN EASY PROCESS. THIS CAN BE DONE ONLY UNDER EASY PROCESS. THIS CAN BE DONE ONLY UNDER SOME SPECIAL CIRCUMSTANCES AND OVER A LONG SOME SPECIAL CIRCUMSTANCES AND OVER A LONG PERIOD OF TIME.PERIOD OF TIME.

Thank YouThank You

Revant PandeRevant Pande

Anleey PereiraAnleey Pereira

Mark RodricksMark Rodricks

Sahil KhanSahil Khan

Ajinkya SonarAjinkya Sonar