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TERM PAPER OF

ORGANIZATION BEHAVIOR

TOPIC: ORGANIZATION CULTURE

Submitted to: MEGHA MEHTA

Submitted by:Jugraj singh

Roll no.:R341A23

Course:BBA(hons.)-MBA

Regd. No:10801306

D.O.S:22-12-2008


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INDEXINTRODUCTION

Emergence of organizational culture

Review of literature

How companies are holding inorganization culture

critical appraisal (postive point )

critical appraisal (Negative point)

Bibliography


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INTRODUCTION

The presence of a strong and appropriateorganizational culture has becomeessential for an organization to functioneffectively and efficiently in the modernera. Organizational culture is theconsciously or subconsciously accepted

and followed way of life or manner ofperforming day-to-day activities in anorganization. It plays an important role indetermining and controlling employeebehavior at workplace. The core values,assumptions, norms, procedures, etc. thatare followed in an organization constituteits culture. These are more often than not,accepted and followed throughout theorganization, without much deviation.

However, the presence of individuals fromvarious social cultures and backgrounds in

an organization, may lend a slightvariation to the beliefs and ideologies ofthe organizational members. Thisdifference results in the formation ofsubcultures within organizations. The


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presence of subcultures may beadvantageous to an organization as thedeviations from the norm may throw up

alternatives to existing practices, whichare often useful to the organization inadapting to changes in the externalenvironment. Such adaptability isessential for the organization to survive.However, if the differences in ideologiesgo beyond a desirable level, they mayhave a negative effect on the organizationand undermine it. The strength of anorganizational culture depends on thesharedness and intensity of the corevalues of the organization. A strongculture tends to enhance employee

commitment and loyalty towards theorganization. Organizational cultures havebeen classified into four major types -market culture, adhocracy, clan cultureand hierarchical culture.

Organizational culture deals with theinternalization of the core values andnorms. If the organizational culture is wellinternalized, it can replace theformalization of rules and procedures in an


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organization. The difference between thetwo lies in the fact that, whileformalization deals with the

standardization of jobs and involvesdocumentation of accepted values andnorms, a strong organizational culture canachieve a certain amount of uniformity inwork processes without documentationbeing required.

Organizational culture plays a variety ofroles in strengthening bonds between themembers of an organization. Theboundary-defining role of organizationalculture implies that it helps to drawdistinctions between one organization and

another. It also creates a sense of identityand belongingness among the employeesof the organization. Organization culturesynergizes the efforts of organizationalmembers towards the achievement of thecommon objectives of the organization. Italso maintains the stability of the socialsystem in the organization by minimizingindividual differences between employees.

Organizational culture is determined


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largely by the values, assumptions andpersonal traits of the founders. Thesevalues lay the foundation for the

organizational culture, which is thenaccepted and followed throughout theorganization. Culture in organizations isalso learnt by its members throughartifacts like stories, legends, rituals andmaterial symbols. Stories pertaining tosignificant events in the company'shistory, the rituals of the organization, andeven material symbols such as thephysical layout of the organization, serveto transmit the core values of theorganization. Language, which refers tothe commonly used terminology, jargon

and acronyms unique to a particularorganization, also helps in the permeationof organizational culture.

Change in organizational culture issometimes inevitable as the organizationneeds to adapt to changes in theenvironment. However, the highlycomplex and pervasive nature oforganizational culture makes it difficult topush through any change in its culture. As


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members of the organization internalizethe core values over a period of time,attempts to change it often invite

enormous resistance from employees.Nevertheless, a well thought out actionplan, with a change agent to assist in itsimplementation, can result in thesuccessful transformation of an outdatedorganizational culture, to one which ismore aligned to the external environment.

Emergence oforganizational culture

Emergence is a phenomenon that hasbeen studied in many disciplines and itrefers to the way complex systemsand patterns arise out of a multiplicityof relatively simple interactions withno central coordination. Emergence is

seen in systems such as nature, stockmarkets, traffic patterns andorganisations. For instance, an ant hillis an emergent structure created by


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hundreds of ants, each of which isengaged in a particular kind of activitywithout being aware of the re sultantstructure. Similarly, complex flockingpatterns amongst birds actuallyemerge out of simple behaviours onthe part of individual birds (such astrying not to collide with other birdswhile still being part of the flock). Inother words, the emergent structure ismore than just the sum of the parts. Inthis article I propose two ideas first,that organisational culture is anemergent phenomenon and second,that values are the underlyingsimple rules governing culture

An emergent reality

It is possible to view organisational

culture as an emergent outcome ofthe countless interactions that takeplace between the variousconstituents of an organisation. Eachparticipant is not aware of his


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contribution to the overall emergentculture, and behaves in anindependent manner in all situationsbased on his own personal beliefs.

If this is the case, it would appear thatit is very hard to control what kind ofculture may emerge in a givenorganisation as the behaviour of

individuals is hard to predict. Howthen does one go about creating aparticular kind of culture? The answermay lie in our understanding ofemergent systems as being anoutcome of individual agents acting on

the basis of simple rules. When theserules are executed by a large numberof participants, an emergent structurepresents itself. Extending this to anorganisational scenario, if a few simplerules were to be set that governs all

interactions of an organisationsmembers, the emergent reality inthis case organisational culture can


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be managed to produce favourableend states.

Review of literature

First and foremost, the text scoreshigh on readability. The matter iswell organised. The layout andconstruction are user-friendly. Theadditional features, such as a birdseye view of each chapter, thereview questions and the caseillustrations at the end (many

Indian), contribute to an attractiveget-up, increasing the probability ofa reader holding the book openlonger. A contemporary, non- jargonistic style of presentation

helps. However, it could do withgreater internal consistency. Theoccasional grammatical odditiesand the frequent spelling errors jar


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against the otherwise generallyelegant construction. It gives the

impression of casualness inmanuscript preparation. This isevident even in the literaturecitations, with details of somereferences cited in the text notprovided at the end of the chapter,

and vice versa. Yet, it must be saidthat the overall readability remainshigh.

As a part of the introduction, the

author looks at literatureencompassing bodies of socialtheory such as the informationsociety, globalisation andtechnopoles in order to understandthe linkages that his study has with

these theories. He juxtaposes thecybernetic model which privilegescontrol with the complexity modelthat stresses interaction, showing


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them to be opposites. He similarlycontrasts the structural sociology

perspective with that of networkexternalities. The authors clearpurpose is not to define eitherinformation or the informationsociety, but to study perceptions ofpeople and the models with which

they operate.

This also determines the primaryreadership of the book: the studentof management with a special

interest in organisational studies,especially in doing somethingabout strengthening organisations.It is a need that was waiting to bemet. A second readershipconstituency is also evident. If the

faculty of management schools willcondescend to look at an Indianauthor with an objective eye, theymight find the book a worthwhile


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addition to their reading list inteaching the subject. I believe

there is a third category ofreadership for the book: the largenumber of people who today findthemselves in managerial positionsboth in business-industry and non-profit work with neither the formal

MBA-type training nor the lifeexperience for them.

Although the book has greatbreadth in the treatment of the

subject, it remains primarily an ODtext with a social psychologicalbias. This is not to mean that thecoverage is faulty. Socialpsychologists have indeed madesome of the most significant

contributions to the field over thelast 50 years. The main lapses inthe book are in the omission orinadequate treatment of a few very


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important theory-methodologystreams to the field of OD: the work

of the cyberneticians like StaffordBeer and Russell Ackoff, especiallyin interventions in large, complexsystems; the contribution ofGestaltists; and the socio-technicalsystems group. The landmark

project in Ahmedabad by AK Ricewas long before the Michiganschools work in Volvo. In fact eventhe Michigan schools work isinadequately reported.

The enormous significance of OD insocial development tasks, again inlarge, complex systems, deserves achapter to itself in a book of thiskind. In the US, the work of

AmericaSpeaks is a very goodexample of methodologydevelopment for large scale citizeninvolvement in civic issues. In


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developing countries, the methodsemployed in much of community

organisation and the formation ofSelf-Help Groups draw heavily fromtechniques in OD. The relevanceand great need for OD in largeprogrammes of sustainableagriculture, community health,

education, dissemination ofappropriate technologies, and soon, pose challenges for which thereare no quick fix solutions inconventional literature. Original

Indian work in this field is quiteconsiderable too.

While the chapters on organisationculture, values, and the section onthe ethics of intervention must be

lauded as welcome and timely, alittle more on the philosophicalquestions of OD theory andmethodology could have been


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included in the book. For instance,the paradox of change strategies,

or the naivet in assumptions ofchange from state A to a desiredstate B, when the originallyconceived state B might itself bechanging in an ever changingenvironmental context. Similarly,

the practice of OD has unstatedundercurrent assumptions ofcontrol, power, ownership, rights,and so on, raising philosophicalissues that are never addressed

adequately certainly not byincreasing the sophistication ofappraisal systems! The section onthe participation spectrumtouches on this, which is perhapsall one should expect from a good

introductory book, although theissue merits deeper treatment.

This reviewer was particularly


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happy with the inclusion of thesection on organisational values in

the book. In fact the subject oforganisational culture is probablybest approached through the morerigorous methodology of values. Itis amply evident that everymanagement system that has held

centre-stage at any time in thehistory of management literaturehas really been a product of itstime and, therefore, with somevalue premises embedded in it. For

instance, the value premises inQuality Circles and TQM for the linemanager are: 1) The person on the job knows the working conditionsbetter than I do (hence thesignificance of employee

suggestions); and 2) My bestefforts on the job are meant for thebenefit of others (hence thecustomer orientation both


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internal and external). Withoutthese central beliefs, the motions

of quality drills can never produceresults. TQM failures (which are notuncommon, over 60% by someestimates) can often be traced toincompatibility between theorganisations management

structures, management systemsand management values.

The apparent conflict in theorybuilding in management between a

universal principle and a highlycontextual one corresponding tothe polarity in scientific thoughtbetween the ideopathic andnomothetic propositions to explainphenomena is implicit in more

than one part of the book. At theend of the day we cannot helpasking if there can really be anynomothetic proposition at all in the


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science of human organisations.

A nave assumption in muchamateur OD practice is that atechnique that works in influencingbehaviour at a lower system level,say, in individual change, can bescaled up to bring about changes in

the team, the group, thedepartment or the organisation. Itneeds to be remembered that intrying to develop the organisation,we have to contend with

organisational variables, over andabove individual variables. If weconsider the track record of anemployee (and most employeeshave had work experienceelsewhere), we often come up

against the question: How is it thatthe same person, with the samebundle of competencies, wasproductive in one situation (and


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recognised as such), but could notaccomplish much in another

situation? The difference lies in theorganisational environment.

A good part of the explanation forcontinued reliance on the buildingblock model is the unshakeable

faith in the individual as the unit ofsocial change anotherphilosophical issue as well.Questions beyond freedom anddignity raise uncomfortable

dissonances in many entrenchedsocietal belief systems. One of themost enduring (and strongest)legacies of OD methodology hasbeen the creation of processsensitivity in the organisation i.e.

getting people to see how the verystructures and systems createdand installed by them influencevital organisational processes


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which, in turn, influence patterns ofbehaviours. This perspective, along

with Action Research, an importantapproach to process sensitivity,could do with more detailedtreatment in the book.

The section on the critique of OD, a

useful and necessary section, isrestricted to literature mainly fromthe 70s, and therefore representsphilosophical debates of that era.In todays context there would be

other debates needing attention,such as the relationship betweenOD and societal development,especially in addressing theunderlying inequality andexploitation, the relevance of OD in

increasingly complex, globalisedoperations, calling for large, multi-stakeholder systems, alliances,partnerships and networks, and the


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relationship between OD and HRM,beyond the pat phrases employed

by HR managers.

Another welcome section in thebook is the one on the valuepremises in OD theory andmethodology, and the professional-

ethical issues involved. The issue ofiatrogenics (treatment-induceddisorders) is as serious inorganisational interventions as inmedical interventions. The

extensive treatment of the field ofknowledge management (and therelevance to OD) gives the book atruly contemporary value.

The literature included in the book

gives the impression that theauthor was keen on sharingeverything she had read over theyears with the reader. How else


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does one explain the inclusion ofthe trivial and the popular with the

rigorous and the respected?(Parkinsons laws! And Petersdiscredited search for excellence.)There seems no justification for thespace given to stress managementand performance appraisal in a

book on OD. The early chapter onsystematic change is the weakestpart of the book, probably due tothe inadequacies described above.

Reverting to the very useful sectionon organisation culture, it shouldbe pointed out that explanations ofOC have generally been from twomain perspectives: 1) the micro looking at factors within the

organisation, with a heavyemphasis on leadership, especiallythe characteristics of the leader;and 2) the macro looking at


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historical, political and evenreligious traditions in society,

seeking common features in largesocio-cultural groupings.

Considerable work in India hasshown that there is anintermediate level of analysis that

may be both relevant andsignificant, namely, the sectoralfield in which the organisationexists. For instance, most textilemills in Western India have

remarkably similar managementpractices and top managementstyles. Attempts to introducecertain modern managementpractices have generally failed.Management trainers and

consultants tend to see thisresistance to change as located inthe short-sightedness of the topmanagement, i.e. the Chief


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Executive. What is not seen is thatthe same CEO displays a quite

different style in another businessof the same corporate entity inelectronics or pharmaceuticals orpetrochemicals. In other words, theleader is the same, but theleadership process is different.

Each sectoral field makes its owndemands on the management ofthe enterprise and, therefore, callsfor an appropriate configuration ofcore practices that characterise the

sector. The similarities-over-differences are clearlyrecognisable.


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How companies are

holding in organizationculture

How Does Your

Organizational Culture StackUp? a Unique Perspective ofthe 21st Century Workplace

You've felt it. We all have. A briefwalk-through gives you a sense, afeel, for how an organizationfunctions. You don't have distinct,defined reasons for those feelings.

You only know that you alreadyunderstand something about howthat company or businessoperates.


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This functioning has been labeledorganizational culture. Each one is

as distinct and personal as anethnic or a family culture. Theyvary among organizations and aredetermined by the ways in whichtheir members interact, decisionsare made, and rewards are given.

Individual success within thesestructures depends upon the abilityto identify the clues that categorize

the people, moods and emotionsthat are part of the culture. Here ismy own system for looking at anorganization based upon the rolesthat its members choose to fill.Much as players in a theatrical

performance, individuals determinehow they will cope by exhibitingthe traits inherent in one of sixroles.


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The presence of these role players

and their degree of proliferationprovide insights into the workingsof any organization. Byunderstanding the culture,strategies can be developed to

target important issues, improvecommunications, and make neededchanges. Keep in mind these threeobservations:

The person at the top of the

organization sets the tone for theway in which the entireorganization functions. Leadersimprint their organizations withvalues, beliefs and operationalphilosophies. A brief conversation

with the person at the top will tellyou much about how all levels ofthe organization think and feel.


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Someone within the organization

has the solution to every perceivedorganizational problem. How canyou come up with solutions inrelatively short periods of time?Ask the person who is closest to

the problem and who alreadyknows the answer. Often, thatperson has been waiting to sharethis information with a decision-maker, but no one has asked.

An organization's work distributionand communication channels adaptto the individuals who join andleave the organization. Realizingthe importance of formalized jobdescriptions to many companies,

you have probably seendescriptions that were written inthe not-too-distant past, but whichno longer apply because staff


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changes have taken place.Organizations are living, growing

entities. As the people withindevelop and mature, come and go,the internal channels are revised.With these Observations in mind,here are the six Players in anorganizational culture.

Power Players regard theorganization as a battleground withcontrol viewed as "winning." Theysee most interactions as win-losesituations and try to maximize their

wins. Any compromises are madewith an eye toward turning theconcessions into future victories.They regard new people and ideasas opportunities for combat. Power

Players will buy into someoneelse's changes, but will try to claimthe changes as their owninnovations.


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Gatekeepers see the organization

as exchanges of information andintrigues. He or she who gathersand channels the most of both is incontrol. As with Power Players,Gatekeepers like to win, but view

their victories in more subtle terms.They allow others to fight theirbattles by selectively releasinginformation to those individualswho will create the outcomes theGatekeepers desire.

Mentors like to take others undertheir wings and share informationabout the organization. They arewilling to teach new members howto work within the structure and to

maximize results. Mentorsencourage people to return tothem so both sides can askquestions and share current


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information. They play win-win andjudge the culture by the harmony

which coworkers exude.

Peers perceive all members of anorganization as being equal. Fromthe top to the bottom of the

structure, they see everyone asbeing in the same boat andsucceeding or failing together. As aresult, they are free with their flowof information and make no

distinctions about who should beinvolved in the decision-making.Peers believe every person shouldhave a voice in how theorganization is run.

Workers schedule their daily outputbased upon what they know willcome across their desks or intotheir realms of responsibility. Their


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comfort is in routines they havelearned and within which they

perform extremely well. They arecontent to march in the samedirection with the same cadencethat has proven to be successful inthe past. No organization has everbeen hurt by a true Worker. Yet,

very few have ever had their ideasimplemented because they willtake "no" for an answer.

Gliders do enough to get by andlittle else. They consider theorganization to be something whichmust be endured to make itthrough life, but don't want to rockthe boat lest they put themselves

into a position in which more maybe required of them. They playneither win-lose nor win-winbecause they simply don't want to


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get involved in the game. Gliderswant to be left alone and don't care

if they are regarded as outsiders.An organization may have all ornearly all of these Players present,but it is the authority and influenceof each that predicts how the

organization functions. These sixPlayers determine the existence ofone of three main Cultures basedupon the prevalent attitudes of theindividuals.

CONTROL CULTURE - Power Playersand Gatekeepers emphasizecontrol. Organizations that have anabundance of these Players inhigher positions operate in a highlycompetitive culture. Dominant

personalities are rewarded,promoted and seen as the normduring interpersonal encounters.


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COMMUNICATIONS CULTURE -Mentors and Peers focus on

communications. When thesePlayers permeate the managementof an organization, informationflows smoothly. The culture is onethat fosters personal growth andreadily accepts the need for

change. Job titles are not asimportant as the people who holdthese titles.

CONTENTMENT CULTURE - Workersand Gliders at the management

level are totally agreeable tooperating in a culture ofcontentment. Very few new ideasare implemented. Those that arehave been tried and perfected by

other organizations first, ensuringthey are safe and will notjeopardize the status quo.


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In the marketplace of the 21stcentury, ideas must be exchanged

easily and effectively. As a productreaches the consumer, it is alreadyobsolete and in the process ofbeing replaced by one, two or threenew generations of the sameproduct. The only culture that can

consistently support this fast-pacedenvironment is theCommunications Culture. Thismeans that successfulorganizations must foster the

development of Mentors and Peersto ensure long-term viability.

The new millennium is here.Organizations that look atthemselves, understand their

culture, and tweak the dials toimprove performance, will assumethe leadership positions in ourglobal marketplace.


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critical appraisal

(postive point)

The impact of organizational culture on

the successfulimplementation of totalquality management

Abstract:

Purpose The purpose of thepaper is to determine the impact ofcultural values on the success ofTQM implementation in IsfahanUniversity Hospitals (IUHs), Iran,2004.

Design/methodology/approach In this paper survey


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questionnaires were used to elicitresponses from hospital managers

and employees. Data collectedincluded the characteristics oforganizational culture in IUHs andthe degree of TQM success and itsimplementation problems in thesehospitals.

FindingsThe paper finds thatTQM success in IUHs was medium.Implementation of TQM was verylow, low, medium and highly

successful respectively in 16.7,16.7, 58.3 and 8.3 percent ofhospitals. TQM had the most effecton process management, focus oncustomers and leadership and

management and less effect onfocus on suppliers, performanceresults, strategic planning andfocus on material resources.


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Human resource problems,performance appraisal and

strategic problems were the mostimportant obstacles to TQMsuccess respectively. A total of 75and 25 percent of hospitals hadmechanistic and organic structurerespectively. In total 41.6 percent

of hospitals had weakorganizational culture versus 58.4percent medium culture. Thesuccess of TQM in hospitals withorganic organizational structure

and medium organizational culturewas higher than mechanistic andbureaucratic hospitals with weakorganizational culture (p


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commitment and involvement,organizational learning and

entrepreneurship, team workingand collaboration, risk taking, opencommunication, continuousimprovement, customers focus(both internal and external),partnership with suppliers, and

monitoring and evaluation ofquality. By replicating this study indifferent countries and contextsthe results could be very helpful fordeveloping a model of TQM that

can be implemented successfully ina cross-cultural context.


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critical appraisal

(Negative point)Unraveling the Determinantsand Consequences of an InnOvation-SupportiveOrganizational Culture.

The current research identifiesconstructs that are supportive ofan innovative culture in small to

medium-sized enterprises. Asample of 429 employees in 23small to medium-sizedmanufacturing firms was used toidentify constructs associated withan innovative culture. Supervisory

support and reward system supportare both positively related to aninnovative culture. Perceived workoverload is negatively related.


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Companies with culturessupportive of innovation tend to be

smaller, have fewer formalizedhuman resource practices, and lessmunificent resources. There is nodirect relationship between aninnovative culture and firmperformance; however, when the

competitive environment ischanging rapidly firm earnings areenhanced by an innovative culture.

There is an abundance of literaturethat expounds on the importanceof creativity and innovation to keeporganizations healthy, viable, andcompetitive. A relatively smallerbody of research focuses on the

organizational characteristics thatlead to innovation. For example,Woodman, Sawyer, and Griffin(1993) proposed that


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organizational culture, rewards,and resources are determinants of

creative behavior in organizations.Similarly, Amabile, Conti, Coon,Lazenby, and Herron, (1996) foundthat the perceived workenvironment influences the level ofcreativity in organizations.

Damanpour (1991), in a study ofthe antecedents of organizationalinnovation, found that managerialattitude toward change, andinternal and external

communication were positivelyrelated to innovation. Given therelevance of organizational cultureto innovation, the managerial andhuman resource practicessassociated with an "innovation-

supportive culture" become asubject of research interest. AsWoodman et al. note, "we ... knowlitt le about how organizations can


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successfully promote and manageindividual and organizational

creativity" (1993, p. 316).

Although not explicitly stated,much of the existing literature

assumes that it is important anddesirable to foster creativity andinnovation in all organizations (e.g.,Lumpkin & Dess, 1996; Covin &Slevin, 1991; Zahra, 1993, 1994;Lawless & Anderson, 1996) and

does not address the question ofunder which circumstances aculture supportive of innovation isassociated with positiveorganizational-level outcomes.

However, Chandler (1993) pointsout that some organizationsperform better when keyemployees believe they are


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rewarded for being innovative,while other organizations perform

better when key employees believethey are rewarded for conformingto the rules and not being veryinnovative

Bibliography

1) Google.com

2) wikipedia

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