Paritosh Agarwal - OB

H.R.
College of Commerce and Economics
M.Com. Part 2 Semester 4
Organisational Behaviour Organisational Culture
ACKNOWLEDGEMENT
I express my sincere regards to my parents and friends who have rendered their cooperation
in compiling this project on Organisational Culture and conducting research. I would also
like to express my gratitude to the subject Professor, Prof. Nidhi Thanawala for her guidance
and encouragement in making this project a success.
INDEX
Sr. No. Title Page No.

01. Executive Summary 02-02
02. Introduction 03-07
Relationship between Organisational Culture and
03. 08-09
Organisational Structure
04. Is it a much-ado-about-nothing? 10-15
05. Difference between Mission, Vision, Goals and Objectives 16-17
06. Impact of Organisational Culture on Performance 18-19
07. Organisational Culture and Mergers and Acquisitions 20-25
08. Types of Organisational Culture 26-29
09. Organisational Culture and Conglomeration 30-32
10. Bibliography and Webliography 33-34
Paritosh Agarwal 01 Page 1

Executive Summary
The success of any company depends in part on the match between individuals and the
culture of the organization. Organizational culture is the set of operating principles that
determine how people behave within the context of the company. Underlying the observable
behaviours of people are the beliefs, values, and assumptions that dictate their actions.
Managers need an accurate understanding of the organizations culture in order to direct
activities in a productive way and to avoid the destructive influence of having employees who
are not committed to the companys goals. A shared sense of purpose starts with the hiring
process and continues with careful attention to how employees are motivated and rewarded
for their efforts. Managers need to continually transmit the values of the culture through
efforts such as storytelling, rituals and firm-sponsored social events, as well as consistent
positive feedback that gives each member of the organization a sense of importance.

Introduction
Matching individuals to organizations is a crucial part of success for any company. The
match between people and the companies for which they work is determined by the kind of
organizational culture that exists. The degree to which an organizations values match the
values of an individual who works for the company determines whether a person is a good
match for a particular organization. The collective rules by which an organization operates
define its culture. These rules are formed by shared behaviours, values and beliefs. Culture
forms, the basis for how individuals operate within the context of the organisation. The way a
group or individual behaves, defines what is normal and sanctions what is not normal is
determined by his or her culture. Culture can be defined either by a set of observable
behaviours or by the underlying values that drive behaviour. In large organizations, vision
statements, mission statements and statements of values are often formalized to describe the
companys culture. On the most basic level, culture is observable as a set of behaviours.
Examples of culture at this level include the degree of formality with which employees
conduct themselves, the organizations dress code, and the type of technology used. Beneath
the level of observable behaviours are the values that underlie behaviour. Though these
values determine behaviour, they cannot be directly observed. At an even deeper level are the
assumptions and beliefs that determine values. While an organization or individuals values
may remain within awareness and can be stated, assumptions and beliefs often exist beneath
the surface and out of conscious awareness.
Being aware of an organizations culture at all levels is important because the culture defines
appropriate and inappropriate behaviour. In some cultures, for example, creativity is stressed.
In others, the status quo is valued. Some cultures are more socially oriented, while others are
task-oriented, business only environments. In some companys teamwork is key.

In others, individual achievement is encouraged and valued. An organizations culture also
determines the way in which employees are rewarded. Management tends to focus on a
dominant source of motivation, such as pay, status, or opportunity for personal growth and
achievement. The accessibility of management and the ways in which decisions are made are
reflections of an organizations culture as well. It is important for individual values to match
organizational culture because a culture of shared meaning or purpose results in actions
that help the organization achieve a common or collective goal. An organization will operate
more productively as a whole when key values are shared among the majority of its members.
To that end, employees need to be comfortable with the behaviours encouraged by the
organization so that individual motivation and group productivity remain high. High
functioning organizations are comprised of individuals whose overt behaviours are consistent
with their covert values. All of this is of crucial importance to managers. Senior executives
usually set the tone by exerting core values that form the overall dominant culture shared by
the majority of an organizations members. So, if management does not take the time to
understand the culture that motivates an organization, problems are inevitable. New
procedures and activities will be very difficult to implement if they do not mesh with the
organizations culture.
Steps to ensure that an individual is responsive to the goals and operating procedure of the
organization begins at recruitment. Managers can foster the development of a positive culture
by employing people who share the same values and vision that the organization represents.
To do this, employers can spend time with prospects before they enter the organization as
new employees. Once new hires are indoctrinated with the organizations values, they will
form an objective perception of the environment that will solidify the organizations
personality or culture.

In addition to hiring people who fit the organization, managers need to have a solid
understanding of the dynamics of culture and how to transform it so that they can direct
activities in a manner that gets results. Some ways to continually transmit the culture of an
organization in a productive way include telling stories, having corporate rituals, and using
symbolic language when referring to the organizations mission. Firm-sponsored social
events and mentorship programs may be effective as well. Having a positive and aligned
culture benefits the organization in many ways. One important benefit is a high level of
productivity. The destructive influence of hiring someone who does not share the same set of
values, goals and commitment espoused by the organization will weaken a strong chain of
links and bonds. An employees performance depends on what is and what is not proper
among his or her peers, which in turn affects that individuals behaviour and motivation to
participate and contribute within the organizational framework. An effective means of
keeping employees aligned with the values and goals of an organization is by developing a
culture that encourages employees to focus on a higher purpose for their work. Values that
support this kind of cohesive operation include the idea that people are basically, good,
rational and interested in achievement. Leaders that unify an organization believe that
everyone has something to contribute to the organization and decision-making should involve
people at all levels within the organization. Creating an environment where people enjoy and
value their work is the key. To do this effectively, leaders must be sure to communicate clear
expectations for every member of the organization. The importance of understanding
organizational culture cannot be overlooked. The bottom line for managers who want to
create a culture of success is to start with creating a positive environment. Bring in people
whose values are in line with the organizations culture, and continue to acknowledge success
and involve the whole organization in maintaining an environment that allows people to
enjoy working hard to meet the companys goals.

Organizational culture includes an organization's expectations, experiences, philosophy, and
values that hold it together, and is expressed in its self-image, inner workings, interactions
with the outside world, and future expectations. It is based on shared attitudes, beliefs,
customs, and written and unwritten rules that have been developed over time and are
considered valid. Also called corporate culture, it's shown in
the ways the organization conducts its business, treats its employees, customers,
and the wider community,
the extent to which freedom is allowed in decision making, developing new ideas,
and personal expression,
how power and information flow through its hierarchy, and
how committed employees are towards collective objectives.
It affects the organization's productivity and performance, and provides guidelines on
customer care and service, product quality and safety, attendance and punctuality, and
concern for the environment.
It also extends to production-methods, marketing and advertising practices, and to new
product creation. Organizational culture is unique for every organization and one of the
hardest things to change.
Culture, particularly in large organizations that have a great deal of internal momentum, can
be difficult to influence or change. The size of an organization and the strength of its culture
are the biggest contributors to cultural inertia. Big and strong organizational cultures will
have a powerful tendency to continue moving in the direction they are already moving
(momentum). Therefore, managers must understand not only how to create culture, but also
how to change it when necessary to ensure a positive, efficient and ethical culture.

Cultural Factors
Understanding how to change an organizational culture requires some insight into what
creates culture in the first place and how altering those components may impact meaningful
cultural development. Gerry Johnson's cultural web offers great clarity about how an
organizational culture responds to and reflects influencing factors. These include:
The paradigm: The mission statement, vision, ethics statement, and other overt
definitions of culture.
Control systems: The processes in place to monitor what is going on, such as an
employee handbook.
Organizational structures: This comes down to the hierarchy, or who reports to whom
and why.
Power structures: Similar to the organizational structure above, this pertains to who has
the power to make decisions.
Symbols: Most organizations have brand images and other symbols which represent
what the culture stands for (logos, etc.).
Rituals and routines: In the business setting this is simply the way in which group
interactions are organized. One example is the weekly staff meeting.
Stories and myths: CEOs and other figureheads often have stories or legends associated
with them; this generates culture through idolatry.
While these are only a few of the elements of culture, they capture a wide variety of
components that managers can use to influence and change the general cultural
predisposition.

Relationship between Organisational Culture and Organisational Structure
There is a ton of information out there on organizational culture and about every detail of it
you can imagine. The relationship between organizational culture and organizational
structure is an important theme that is often overlooked. The two can be difficult to clearly
distinguish from one another and even more so to clearly define within an institution.
Organizational structure works within an organizational culture, but it is not completely
separate. The two are very much intertwined.
Organizational culture is more of a larger picture, a more general term that refers to a large
umbrella of smaller topics and issues within an organization. The structure refers to the
infrastructure, and the various methods and practices within that infrastructure, that helps an
organizational culture run with the efficiency and consistency that should be the hallmark of
any healthy organizational structure, whether it is in a corporation, sports team, or any other
set up that is large enough to create its own organizational culture.
This makes the structure an integral part of any organizational culture, but also narrows out a
very specific segment of the culture as its own responsibility. Organizational structure will
deal primarily with the set up of the culture. How management works, which specific
responsibilities supervisors have, how a complaint is passed through the ranks-these are all
issues within the organizational culture that are directly tied to how an organizational
structure works. The structure is not limited to those three examples, but it would certainly
include all of them.

Another common way to describe how structure works is to say that organizational structure
is the way in which the interrelated groups within an organization are set up to allow them to
function smoothly from a larger standpoint. The two main purposes of a successful
organizational structure is to ensure effective communication between various parts of the
company, as well as to increase coordination between different departments.
Some theorists have even broken down the concept of organizational structure into several
categories to describe the phases which businesses go through as they grow in size and scope.
The first is the pre-bureaucratic structure, which is mainly known for lacking a structure that
standardizes tasks. This set up is great for small businesses, and ones that don't have many
repeat scenarios, and therefore have to be adaptive.
The next level is bureaucratic, which is where there is larger organization which requires a
degree of standardization in paperwork, processes, etc. While bureaucracy has a negative
connotation, it can be a good thing in small doses, especially in tackling issues that will
become recurring themes in larger businesses. There is also the post bureaucratic, which has a
more nebulous definition and is seen as more of a theoretical term, but might be referred to
more recent, cultural based models of leading.

Is it a much-ad-about-nothing?
Michael Watkins in his paper titled What Is Organizational Culture? And Why Should We
Care? dated May 15, 2013, writes if you want to provoke a vigorous debate, start a
conversation on organizational culture. While there is universal agreement that (1) it exists,
and (2) that it plays a crucial role in shaping behaviour in organizations, there is little
consensus on what organizational culture actually is, never mind how it influences behaviour
and whether it is something leaders can change.
This is a problem, because without a reasonable definition (or definitions) of culture, we
cannot hope to understand its connections to other key elements of the organization, such as
structure and incentive systems. Nor can we develop good approaches to analyzing,
preserving and transforming cultures. If we can define what organizational culture is, it gives
us a handle on how to diagnose problems and even to design and develop better cultures.
Beginning May 1, 2013, a discussion was facilitated around this question on LinkedIn. The
more than 300 responses included rich and varied perspectives and opinions on
organizational culture, its meaning and importance. It was inclusive of several distinctive
views illustrated by direct quotes from the LinkedIn discussion thread
Culture is how organisations do things. Robbie Katanga
Culture is consistent, observable patterns of behaviour in organizations. Aristotle said, We
are what we repeatedly do. This view elevates repeated behaviour or habits as the core of
culture and deemphasizes what people feel, think or believe. It also focuses our attention on
the forces that shape behaviour in organizations, and so highlights an important question: are
all those forces (including structure, processes, and incentives) culture or is culture simply
the behavioural outputs?

In large part, culture is a product of compensation. Alec Haverstick
Culture is powerfully shaped by incentives. The best predictor of what people will do is what
they are incentivized to do. By incentives, we mean here the full set of incentives
monetary rewards, non-monetary rewards such as status, recognition and advancement, and
sanctions to which members of the organization are subject. But where do incentives come
from? As with the previous definition, there are potential chicken-and-egg issues. Are
patterns of behaviour the product of incentives, or have incentives been shaped in
fundamental ways by beliefs and values that underpin the culture?
Organizational culture defines a jointly shared description of an organization from within.
Bruce Perron
Culture is a process of sense-making in organizations. Sense-making has been defined as a
collaborative process of creating shared awareness and understanding out of different
individuals perspectives and varied interests. Note that this moves the definition of culture
beyond patterns of behaviour into the realm of jointly-held beliefs and interpretations about
what is. It says that a crucial purpose of culture is to help orient its members to reality in
ways that provide a basis for alignment of purpose and shared action.
Organizational culture is the sum of values and rituals which serve as glue to integrate the
members of the organization. Richard Perrin
Culture is a carrier of meaning. Cultures provide not only a shared view of what is but also
of why is. In this view, culture is about the story in which people in the organization are
embedded, and the values and rituals that reinforce that narrative. It also focuses attention on
the importance of symbols and the need to understand them including the idiosyncratic
languages used in organizations in order to understand culture.

Organizational culture is civilization in the workplace. Alan Adler
Culture is a social control system. Here the focus is the role of culture in promoting and
reinforcing right thinking and behaving, and sanctioning wrong thinking and behaving.
Key in this definition of culture is the idea of behavioural norms that must be upheld, and
associated social sanctions that are imposed on those who dont stay within the lines. This
view also focuses attention on how the evolution of the organization shaped the culture. That
is, how have the existing norms promoted the survival of the organization in the past? Note:
implicit in this evolutionary view is the idea that established cultures can become
impediments to survival when there are substantial environmental changes.
Culture is the organizations immune system. Michael Watkins
Culture is a form of protection that has evolved from situational pressures. It prevents wrong
thinking and wrong people from entering the organization in the first place. It says that
organizational culture functions much like the human immune system in preventing viruses
and bacteria from taking hold and damaging the body. The problem, of course, is that
organizational immune systems also can attack agents of needed change, and this has
important implications for on-boarding and integrating people into organizations.
In the discussion, there were also some important observations pushing against the view of
culture as something that it is unitary and static, and toward a view that cultures are multiple,
overlapping, and dynamic.

Organizational culture [is shaped by] the main culture of the society we live in, albeit with
greater emphasis on particular parts of it. Elizabeth Skringar
Organizational culture is shaped by and overlaps with other cultures especially the broader
culture of the societies in which it operates. This observation highlights the challenges that
global organizations face in establishing and maintaining a unified culture when operating in
the context of multiple national, regional and local cultures. How should leaders strike the
right balance between promoting one culture in the organization, while still allowing for
influences of local cultures?
It over simplifies the situation in large organizations to assume there is only one culture
and its risky for new leaders to ignore the sub-cultures. Rolf Winkler
The cultures of organizations are never monolithic. There are many factors that drive internal
variations in the culture of business functions (e.g. finance vs. marketing) and units (e.g. a
fast-moving consumer products division vs. a pharmaceuticals division of a diversified firm).
A companys history of acquisition also figures importantly in defining its culture and sub-
cultures. Depending on how acquisition and integration are managed, the legacy cultures of
acquired units can persist for surprisingly long periods of time.
An organization [is] a living culture that can adapt to the reality as fast as possible.
Abdi Osman Jama
Finally, cultures are dynamic. So, trying to assess organizational culture is complicated by the
reality that you are trying to hit a moving target. But it also opens the possibility that culture
change can be managed as a continuous process rather than through big. Likewise, it
highlights the idea that a stable destination may never indeed should never be
reached. The culture of the organization should always be learning and developing.

Organizational culture: The effect of behaviour on performance GE Capital
Corporate culture is hard to teach in a traditional sense, though it can be learned. It is usually
learned through a defined set of corporate values, incentive systems, and ways in which
people are managed, in which they communicate, and in which they prioritize. In this
manner, culture is both a cause and effect of behaviour throughout an organization, as well as
an important enabler of high-performing companies.
Importance of Culture
Culture can affect business outcomes in a number of ways, both positive and negative. For
example, cultures that are not aligned with corporate strategy can lead to decreased loyalty, a
lack of motivation, and high employee turnover. Healthy cultures, however, impart pride and
a sense of purpose to employees, leading to increased productivity and a greater
understanding of corporate goals, as with the employee at the car manufacturing plant.
Strategy, operational performance, and culture are all strongly related. High-performing
companies often view culture as an enabler of strategy and performance, and want to create a
culture that will support and enable employees in achieving those goals. For example, a
culture of learning fosters curiosity and exploration, and may enable development of the
skills needed to run an innovation-oriented business. A culture of collaboration may result in
high-performing teams. And in some companies, a culture that values families and flexible
work hours may result in higher loyalty and lower employee turnover. Organizational culture
is more than just an internal phenomenon, however. A companys culture is often felt outside
of its own four walls. In this way, culture becomes a very important part of a companys
brand. So if a culture is not aligned with the brand, or the brand does not naturally arise from
that culture, then companies can develop a credibility problem by promising one thing to the
market, but delivering something else.

Thats why, corporate culture, and the values upon which it is based, can be integrated into
every aspect of a company, including leadership training and performance management. It
should evolve as the world and economic markets change. And it should be communicated
consistently, both internally and externally.
Key takeaways
Organizational culture is often described as the character of a company. Once established, it
must evolve and be cultivated and maintained continuously. And though the benefits of a
strong, healthy corporate culture are difficult to measure, they are very real.
Culture can:
Reinforce strategic goals of the company by aligning what the company does with
how it does it
Support skill development and operational performance by fostering an environment
that values learning and advancement
Communicate the corporate brand to the marketplace through the actions of
employees
Culture exists at all companies, whether it is actively maintained or left to chance. It can be a
liability or an asset. And it is often the difference between short-term gains and long-term
success.

Difference between Mission, Vision, Goals and Objectives
Fareed Siddqui, in his article titled, Defining the terms: Vision, Mission, Goals and
Objectives, talks about the terms, vision, mission, goals and objectives have great
importance in management literature. Understanding these terms will not only lead a person
to get the conceptual meaning being associated with them, but it will also be complementary
in many ways. Being used across an enterprise, the aforementioned terms have a lot to do
with a business having a significant impact on both short term and long term success of a
business including its performance and processes.
Vision: Vision refers to an image or a concept. Its the ability to anticipate possible future
events and developments with imagination and wisdom. Vision in management literature,
may be defined as a mental image of a business manager for possible and desirable future of
an organization. It may also be defined as a strong belief of a manager about the specific
course of action for the business organization. To put it simply, vision refers to where an
organization wants to be in the future.
Mission: It is not that an organization is formed in a vacuum or with no purpose it stands. Of
course, it has a reason for its existence which is specific. It runs based on it. The purpose is
known as mission. It may be mentioned in a few words, such as, producing goods or
providing services and so the objectives are communicated through the mission statement.
The Mission of an organization is the base and it is that the strategies are built upon. It
focuses on the purpose of an organization through a statement describing the reason of an
organizational existence - It answers the question why the organization has been established.
Mission and vision are both related to an organizations purpose. And this is communicated
in some written form. Mission and vision both are statements that give the answers about who
we are, what we value, where were going and where we want to be in the future.

Objectives: Objective in general indicates a place where you want to reach. In organizational
literature it means the aim which an organization tries to achieve. Objectives are generally in
plural form. Objectives are predetermined; they provide clear direction to the activities and
results to be obtained from the planning process. Objectives must be SMART (Specific,
measurable, achievable, realistic and timely). Objectives must be clearly defined, so that the
works become goal-oriented and the unproductive and unsystematic tasks can be avoided.
Goals: A Goal is simply something that somebody wants to achieve. The synonyms of goal
are: aim, ambition, purpose, target and objective. Simply speaking, goal refers to the purpose
towards which the efforts are made or endeavours are directed. Goal has a timeframe which is
generally long term. So, its a long term plan.

Impact of Organisational Culture on Performance
An article by Organisational Culture 101, state that the effects of organizational culture are
many and varied. Obviously the affects of organizational culture varies depending on whether
the company has a strong culture or a weak culture, but there are some generalities that apply.
This article is going to focus on the positive effects that occur when a company makes a
concerted effort to establish a strong positive organizational culture at the work place.
Many workers are spending more and more time at work. Depending on the job or company,
many workers would put in 50, 60, or even more hours a week. The old axiom goes that a
happy worker is a productive worker, and this is one of the effects of organizational culture.
Workers want to enjoy work. They want to be interested in whatevers going on that day, or
long term goals. Being part of something meaningful that the worker enjoys makes the whole
experience of work better, which will make them more productive. The effects of
organizational culture should help provide this setting.
A strong organization will focus on the environment it creates for its workers because that
will help encourage a more efficient and productive company. Focusing on building and
sustaining organizational culture shows employees that they are considered an important part
of the company. This type of company generally has among the best response from its
employees and thus will also have a much better chance of achieving its goals.
A strong and positive organizational culture will help make everyone more efficient and
successful. From the lowest mail room worker to the highest CEO, a strong culture helps
everyone. You often hear this type of description made with a professional football team.

There are five major reasons for wanting to create an appropriate and positive organizational
culture for your company:
A strong organizational culture will attract high level talent. The high level talent
entering corporations want to go to the companies that offer opportunities for
advancement and to show off their talents. The best people can be choosy and they
will strongly consider the companies where the organizational culture appears
effective and positive and the workers get along with each other and are united in
their goals of making the company better.
A strong organizational culture will help to keep your top level talent. If workers love
the job they are at, and feel like valuable members of a team, then they are not likely
to want to go to another company. A top notch culture will not only attract the best
new talent, but help retain them afterwards.
A strong culture creates energy and momentum. Once a strong organizational culture
is built, it will gain a momentum of its own and will help to allow people to feel
valued and express themselves freely. The excitement and energy this will cause will
end up being a positive influence that affects every part of the organization.
A strong and successful organizational culture should alter the employees view of
work. Most people think of work as boring, aggravating, stressful, etc. Instead of
thinking of work as a place you have to go, a solid culture can make employees look
forward to work. If the workers love coming into the job, they are going to work
harder, and put more effort into any job. Everyone wants a job that they enjoy, and
most people are willing to work: but its easier to work hard in a job you enjoy than in
one you hate. Same principle applies to everyone else, too.

Organisational Culture and Mergers and Acquisition
Authors Hanane Makhlouk and Olena Shevchuk, in their article The importance and the
influence of the corporate culture in a merger and acquisition context had written in May
2008 write about Mergers and Acquisitions.
Mergers and acquisitions (M&A) are one of the fastest strategic options that companies
choose to face the global competitive market. However, previous researches have highlighted
the high rate of failure among M&A. In fact, the merging companies have to face the issue of
cultural differences which is one of the common reasons of M&A failure, reinforced when it
comes to cross-borders combinations. Indeed, both partners incorporate in the new merged
company the national and the corporate cultures. So, in order to be successful, the leaders
have to consider the importance and the influence of these issues meticulously during the post
merger integration process; at the same level as the synergies, business performance and
profit improvement.
Types and methods of mergers and acquisitions and the motivations of their emergence
As the mergers and acquisitions constitute the context of our study, it is primordial to
understand how these activities happen, the different types and models of M&A and finally
the motivations which lead the companies to merge with another one or to acquire some other
companies.
Patrick A. Gaughan (2007) in his book writes about the mergers and acquisitions
expenditures since the 20th century to nowadays by distinguishing five different waves that
are illustrated by examples of mergers and acquisitions at each moment. Moreover, he
presents the different types of mergers and acquisitions: horizontal and vertical transactions
and also the conglomerate mergers.

Plus, according to the author two major motivations dominate the activity of merger or
acquisition: the growth through taking advantage of the acquiredcompany's resources and the
synergy respecting the financial math equation that shows that 2+ 2 = 5. Also, as opposed
to the expand target, Gaughan emphasizes on the different alternatives which are available to
achieve corporate restructuring. Also, the author points out the mistakes and failures
resulting from the mergers and acquisitions. Plus, Gaughan explains, in this book, every type
of corporate restructuring, including mergers and acquisitions, reorganizations, joint ventures,
divestitures, leveraged buyouts. He examines the key strategies and motivating factors that
arise from the corporate restructurings. Finally, he presents the best offensive and defensive
practices for hostile takeovers.
Howard Finch (2008), on the other hand, emphasizes on the possible motivations that may
result from a merger or an acquisition. According to the author, the economies of scales
whereby the companies can produce cheaper are the main reason. He describes several
additional motivations for firms to merge or acquire other companies: a similar idea to the
economies of scale is the economies of vertical integration that are carried out either to take
advantage of the targeted firms business operations such as raw materials access or/and the
distributions channels or to increase the market share. Moreover, the author employed a third
term in his discussion, the takeover and the different types of takeover defences. He
totalises seven defensive mechanisms in order to avoid the control attempt from an outside
firm. There action of the firms management that are targeted depends on the hostile or
friendly character of the attempt.

The leadership and the corporate culture during M&As
Kenneth Kerber and Anthony F Buono (2005) have described three different approaches to
introduce change in a company: directed change, planned change and guided changing. Each
approach depends on two key factors: business complexity and socio-technical uncertainty.
The first change approach reflects a quick step based on persuasion, the second, planned
change, is based on the participation of the followers but sponsored at the top management
and guided change tend to involve all the members of the organization. Leadership is the key
success in enacting change.
Thomas Diefenbach (2007) describes the leaders attitudes facing the different change
strategies and how they justify, communicate, perceive and implement their change
initiatives. The author underlines the lack of communication as the main reason in the
change failure. Plus, he describes thoroughly the behaviours that a leader should NOT adopt.
Ian Smith defines nine fundamental and interconnected elements to achieve successful
organizational change; and plus, he gives the main reasons about change management
failures.
Afsaneh Nahavandi and Ali R. Malekzadeh Organizational Culture in the Management of
Mergers (1993) write in their book, they first start by defining the organizational culture and
discuss the role of leaders in its formation. Moreover, they describe the functions of culture
and its aspects, and examine the advantages and disadvantages of strong cultures in
organizational change. They define the corporate culture as "the integrated pattern of human
behaviour that includes thought, speech, action, and artefacts and depends on man's capacity
for learning and transmitting knowledge to succeeding generations" and "the customary
beliefs, social forms, and material traits of a racial, religious, or social group"(p. 93).

In the second part of the book, both authors explore the types of mergers and the reasons for
the success and failure of each. In order to define the four generic types of merger
strategies, they use the bargaining power, transfer of resources, personnel interaction,
implementation time, profitability, and risk to define the different types of mergers (P.25).
They go further on by exploring the relationship between strategy and culture. They introduce
the main issue: How-to combine two organizations with two different cultures. This part of
the book provides answers to these questions by defining the concept of acculturation, its
stages, and its different modes. The third issue concerns the leaders influence on the
organizations. Therefore, they argue that leaders are one of the major sources of cultures as
they create structures and set strategies. Finally, they state that leaders are the symbols of the
merger and the key actors to deal with corporate cultures issue.
Michelle C. Bligh (2006), in her article Post-merger Culture Clash : Can Cultural
Leadership Lessen Casualties?, states that post-merger cultural clashes are often the main
reason for the disappointing M&A outcomes and that unfortunately poor research exists to
conduct the merged organizations to a suitable cultural integration. Therefore, she underlines
that the cultural leadership is the most important and influential factor in order to achieve
sustainable culture. This article includes a qualitative study exploring an analysis of the
interviews with 42 post-merger employees in order to put in evidence the role of the leader
during the post merger culture adaptation. The findings of the study have some implication
for leaders who are desired to anticipate the post-merger culture clashes. The author in the
first part presents the leadership and cultural change by using Trice and Beyers (1993)
Elements of cultural leadership. Indeed, Trice and Beyer (1993) specify a number of leader
behaviours and characteristics that facilitate cultural innovation versus cultural maintenance.
In addition, they further outline four variants of cultural leadership: leadership that creates,
changes, embodies, or integrates cultural elements (p. 401).

They consider that each type of leadership come up in response to different organizational
problems which include attracting followers and uniting them, weakening or replacing old
cultural elements, keeping the existing culture vital, and reconciling the diverse interests of
subcultures.(p. 402) However, Michelle C. Bligh arise the issue of the simultaneity.
Indeed, little attention has been paid by Trice and Beyer to the leadership contexts in which
several or all of these problems must be faced simultaneously. She suggests that effective
post-merger leadership cultural integration necessitate the involvement of the four cultural
leadership variants as leaders seek to establish new cultural elements (leadership that
creates), facilitate the integration of both existing and new values into the merging culture
(leadership that integrates), modify some existing cultural values (leadership that changes),
while at the same time supporting and reinforcing new cultural values (leadership that
embodies).(p. 404). The second part of the article deals with the case study: a large North-
eastern healthcare system that went through a full-scale merger involving over 12,000
employees in four large hospitals and seven smaller facilities.
Douglas D. Ross, Managing Director, Square Peg International Ltd (2005) is the author of
the article Culture Management in Mergers & Acquisitions. A focus on culture and people is
critical to make integration strategies work. The author was invited to speak to the Telecom
Finance Conference in London, Creating Value through M&A, about managing cultural
transition issues in M&As (mergers and acquisitions) and joint venture situations. During this
discussion, the author emphasized that management from the acquiring company usually is
unprepared to deal with post-merger politics that can lead to a reduction of the outcomes, the
cause are the underestimation of the culture integration challenges or the human factor. So in
order to tackle directly with the cultural factors, the author stressed the importance to develop
an integration plan.

In this plan, advices are given to the leaders to constitute and implement a new corporate
culture. Indeed, once the new organisation knows what it wants to be, aligns its systems,
processes and procedures to reinforce the desired culture, the next stage is the most difficult
one; it concerns the alignment of the employees and leadership team with the new culture.
So, according to Douglas D. Ross once the culture is defined it is important to:
Obtain individual buy-in from leaders
Address the me issues
Identify integration risk factors
Avoid deadly sins of M&As

Types Organisational Culture
Brittani Sponaugle in the article, 9 Types of Organizational Culture: Which One Are You?
writes about the types of Organisational Culture.
Academy Culture
The name says it all. Academy culture depends on employees who are highly skilled,
studious and welcome further training and advancement. This type of work place
environment thrives off of intense training for employees being brought on board and
ongoing training for the employees already there. Organizations that choose to follow this
culture are very particular about who they hire, their existing skill sets and their willingness
to learn and grow. This format of management keeps turn-over rates low and the employees
eager to do their job to the best of their ability. Many hospitals, universities and other
educational institutions rely on academy culture to stay up to date on the newest information
and technology.
Normative Culture
This is your everyday corporate workplace. Normative culture is very cut and dry, following
strict regulations and guidelines that uphold the policies of the organization. Employees
rarely deviate from their specific job role, break rules or do anything other than what is asked
of them. These type of organizations run a tight ship and are not suited for every type of
employee. Know anything about The Carrot, The Whip or The Plant? These are object-
oriented approaches to motivating your employees. Learn more about these techniques and
others in Motivating Employees.

Pragmatic Culture
You know that saying the customer is always right? Well, that is the first and only rule of a
pragmatic culture workplace. The customer or client comes before anything or anyone else.
Because every customer is different, these type of work places are very opposite of the
normative culture environment as employees dont adhere to strict rules. Whatever the
customer wants, the customer gets (within reason, of course).
Club Culture
Nothing but the best is this type. This type of culture requires employees to be very skilled
and competent in their niche of work. Educational qualifications, prior work experience and
even personal interests are taken into consideration before an employee is hired. (Learn
effective hiring methods if your organization follows club culture.) Club culture can be seen
in organizations like the FBI, commercial pilots and specialty branches of the military. The
hiring process can be pretty intense for these work environments, requiring multiple
interviews, a stellar resume (and references to back it up), and background checks and so on.
The upside of being a part of a club culture is your hard work will pay off. These types of
employers often reward hard work with promotions but with that are frequent appraisals of
your work and role within the company.

Baseball Team Culture
This could be the best type of organizational culture from an employees stand point.
Remember how pragmatic culture focuses on the customers? Well, baseball team
environments say its all about the employees. As long as the workers are happy, comfortable
and feel respected, the work will get done and the employees will want to stick with the
company for the long haul. Google is a good example of a baseball team culture, the
employees get to pretty much do what they want, soup up their offices with whatever makes
them feel creative and its on the company dime. Company outings are a regular thing,
social events within the office and incentives are a big component of this type of culture.
Sounds good, right?
Fortress Culture
Contrary to baseball culture, fortress culture could be the worst (or the best if youre really
good at what you do) for employees. This type environment is all about the numbers. If the
organization is doing well as a result of the employees productivity then the employees
continue to have a job. If the organization begins to see a downfall in success then the
individuals that arent pulling their weight are terminated. An example of a company that
follows this structure is World Strides and more specifically their sales department.
Salespeople have a very important job to do, they seek out business, secure business and
retain business. If a salesperson is not fulfilling their quota or cannot meet the demands of the
department then the company will replace them in hopes of a better outcome with someone
else. Another downside to this type of work culture is the time and money invested in training
these employees. With such a high termination rate these companies will hire a new set of
people and be forced to train them only to find out they cannot stay up to speed.

However, if you are good at what you do you will often be praised and will not have to worry
about job security.
Tough Guy Culture
Tough guy culture is basically another way of saying micro-management. Employees are
monitored every step of the way and when something does not meet the standards or
expectations of the company the employee is given guidance and monitored further. It can be
a tough (hence the name) environment for some to work in especially if you are independent
and have a creative mind. An example of this would be in a customer service role. Most
companies have scripts that customer service representatives must follow when answering
calls in a call centre. If you stray from the script at all, even just a word, it can mean the
difference between being in good standing with management or bad. Calls are often
recorded for quality assurance and the employees will be reviewed consistently to ensure that
they are following the protocol. Sometimes these cultures follow the three-strikes-youre-out
practice in which you can be terminated if you do not act on any corrections provided to you
during your review. Its hard to be watched all the time but these type of companies just want
to ensure consistency and commitment to their customers and they need employees that can
be shaped to do just that. Performance reviews can be tricky, try not to intimidate your
employees, instead find tactful ways to say what you need to say in Performance Evaluation
Comments.

Process Culture
This type of office culture provides a set of regulations and procedures that the employees
follow. Its different than the normative culture as the regulations are not a bullet-pointed list
of dos and donts so much as it is an ideology that the employees adhere to. Employees
know what they are getting into when they sign-up and are often self-starters. Unlike tough
guy culture, these employees are not micro-managed and they rarely are given performance
reviews. If they are given reviews its annually and its to assess their work on a large scale,
their aspirations within the company and potentially a discussion about salary. More often
than not, government agencies run operate under the process culture.
Bet Your Company Culture
This culture is for the patient risk-takers. Organizations that follow this culture are known to
literally bet the success or failure of their company on single decisions of which the outcome
is completely unknown. It can be a wild ride working for this type of company as you dont
know what each day is going to bring. The consequences of the decisions made by the
individuals working in the bet-your-company culture can be so dire that the company goes
under; contrarily, they can be so excellent that the company thrives more than ever before.

Organisational Culture and Conglomeration
Heejin Jung in his paper titled, The Conglomerate Culture, writes about the effect of
organisational culture in a conglomerate.
Before 18th century, there was no concept of conglomerate culture. After the Industrial
Revolution in England, some companies were built and they became to unify small ones. In
the middle of 20th century, few conglomerates appeared in USA and Japan. They had some
different functions compared to normal companies. Firstly, thing is that conglomerate culture
helps company workers to share a name of solidarity. They may share same things and have
same habits. For example, LG company especially emphasizes to be considerate to others
feelings. So, superiors dont ignore staffs opinion and try to listen to their thought. Staffs
emulate superiors this behaviour, and LG company workers are unified by the spirit of
consideration. Secondly, that company workers can put communitys profit before personal
profit. Thirdly, they can pursue stability originated from a group.
There are some representative conglomerates in the world. Among them, Korea, Japan, and
USAs conglomerates are impressive and attracting. Because those countries are adjacent and
powerful, I am interested in their corporations in Korea, Samsung, Lotte, & Hyundai.
Samsung is the most famous and the biggest company, and it has more than eighty
subsidiaries. It has accepted the management style of Japan, and cooperated with Japan. Lotte
and Hyundai also have more than seventy subsidiaries such as car, TV, and clothes. In Japan,
Mitsubishi greatly influences the economy. It creates electricity, and produces many kinds of
beverages. It also makes car, and glass. It even manages a bank and a university. It was
emulated by Hyundai. In USA, Tyco International is the most famous conglomerate. It
handles communication, fire prevention problem and well-being food. It keeps the system
that just one head (CEO) deals with every subsidiaries.

Conglomerate culture has some good functions. Before, I mentioned the case of LG
emphasizes respects for others. This spirit makes others have a sense of kinship, but it is
effective when they have meeting with other companies. Most of companies said that they
usually felt comfortable and pleasant, because LG employees always try to listen what they
talked to. So, LG has a flexible relationship with others. In addition, a conglomerate company
can decrease the risks of challenging in new area. Lee Byeongchul was the previous CEO in
Samsung and he always wanted to establish an automobile company. So, he and his son Lee
Gunhee challenged into car market. Their brand name was Renault Samsung and they
provided many advantages to customers. However, they did not know how to make good cars
and some ways to survive in the car market. It did not have experiences. So, they suddenly
collapsed and lost a big amount of money. However, Samsung succeeded in other areas like
electronic goods and clothes, so it could overcome its crisis earlier. If it had had just one main
subsidiary, it could not have overcome that crisis fast.
On the other hand, conglomerate cultures have some disadvantages. There are just few main
businesses and many subsidiaries in one conglomerate. The main businesses are more
powerful than subsidiaries, so they often wield strong influence on making decision. So,
small and minor subsidiaries just follow the bigger one. There is another problem. The
conglomerates emphasize the unity which can control numerous workers. So, they try to
exclude the variety. It sometimes blocks the development of companies.

Bibliography and Webliography
http://www.themanager.org/HR/Matching_People_with_Organizational_Culture
Accessed on March 10, 2016
Corporate Culture and Performance, by John P. Kotter and James L. Heskett.

The Conglomerate Culture, by Heejin Jung published on May 28, 2012
(https://pcn03133.wordpress.com/2012/05/28/the-conglomerate-culture/)
Defining the terms: Vision, Mission, Goals and Objectives, by Fareed Siddqui,
written on January 08, 2015
(https://www.linkedin.com/pulse/defining-terms-vision-mission-goals-objectives-fareed)
Organisational Culture: The effect of behaviour on performance, by General Electric
(https://www.gecapital.it/common/docs/ge_capital_overview_organizational_culture.pdf)
http://www.businessdictionary.com/definition/organizational-
culture.html#ixzz43EHI2M9W
9 Types of Organisational Culture: Which one are you? by Brittani Sponaugle

written on April 23, 2014
(https://blog.udemy.com/types-of-organizational-culture/)
Geert Hofstede, Bram Neuijen, Denise Daval Ohayv and Geert Sanders: Measuring
Organizational Cultures: A Qualitative and Quantitative Study Across Twenty Cases
Administrative Science Quarterly Vol. 35, No. 2 (Jun., 1990), pp. 286-316 Published
by: Sage Publications, Inc. Article Stable
(http://www.jstor.org/stable/2393392)

What Is Organizational Culture? And Why Should We Care? by Michael Watkins

written on May 15, 2013
(https://hbr.org/2013/05/what-is-organizational-culture)
Boundless. The Impact of Culture on an Organization. Boundless Management.
Boundless, 21 Jul. 2015.
(https://www.boundless.com/management/textbooks/boundless-management-
textbook/organizational-culture-and-innovation-4/culture-33/the-impact-of-culture-on-an-
organization-186-7566/)
(http://www.journal-archieves14.webs.com/975-985.pdfImpact)

Organizational Culture on Organizational Performance: An Overview, by Fakhar
Shahzad written on January 2012 VOL 3, NO 9
Hofstede, Geert, Neuijen, Bram, Ohayv Denise D., and Sanders Geert. Measuring
organizational cultures: a qualitative and quantitative study across twenty cases.
Administrative Science Quarterly. June 1990.
Hofstede, G. Cultures and Organizations: Software of the mind. London: McGraw-
Hill U.K., Ltd., 1991.
The importance and the influence of the corporate culture in a merger and acquisition
context, by Hanane Makhlouk and Olena Shevchuk written in May 2008
(http://www.organizationalculture101.com/organizational-culture-organizational-
structure.html)

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H.R.

College of Commerce and Economics

M.Com. Part 2 Semester 4

Organisational Behaviour Organisational Culture

Sr. No. Title Page No.

Paritosh Agarwal 01 Page 1

Managers need an accurate understanding of the organizations culture in order to direct

Paritosh Agarwal 01 Page 2

the surface and out of conscious awareness.

task-oriented, business only environments. In some companys teamwork is key.

Paritosh Agarwal 01 Page 3

reflections of an organizations culture as well. It is important for individual values to match

organizational culture because a culture of shared meaning or purpose results in actions

Paritosh Agarwal 01 Page 4

symbolic language when referring to the organizations mission. Firm-sponsored social

participate and contribute within the organizational framework. An effective means of

expectations for every member of the organization. The importance of understanding

enjoy working hard to meet the companys goals.

Paritosh Agarwal 01 Page 5

considered valid. Also called corporate culture, it's shown in

and the wider community,

and personal expression,

how power and information flow through its hierarchy, and

how committed employees are towards collective objectives.

It affects the organization's productivity and performance, and provides guidelines on

concern for the environment.

It also extends to production-methods, marketing and advertising practices, and to new

hardest things to change.

Paritosh Agarwal 01 Page 6

organizational culture responds to and reflects influencing factors. These include:

the power to make decisions.

what the culture stands for (logos, etc.).

interactions are organized. One example is the weekly staff meeting.

with them; this generates culture through idolatry.

Paritosh Agarwal 01 Page 7

Organizational structure works within an organizational culture, but it is not completely

separate. The two are very much intertwined.

set up that is large enough to create its own organizational culture.

include all of them.

Paritosh Agarwal 01 Page 8

organizational structure is to ensure effective communication between various parts of the

company, as well as to increase coordination between different departments.

repeat scenarios, and therefore have to be adaptive.

degree of standardization in paperwork, processes, etc. While bureaucracy has a negative

more recent, cultural based models of leading.

Paritosh Agarwal 01 Page 9

and whether it is something leaders can change.

This is a problem, because without a reasonable definition (or definitions) of culture, we

views illustrated by direct quotes from the LinkedIn discussion thread

Culture is how organisations do things. Robbie Katanga

Culture is consistent, observable patterns of behaviour in organizations. Aristotle said, We

the behavioural outputs?

Paritosh Agarwal 01 Page 10

patterns of behaviour the product of incentives, or have incentives been shaped in

fundamental ways by beliefs and values that underpin the culture?

Organizational culture defines a jointly shared description of an organization from within.

Culture is a process of sense-making in organizations. Sense-making has been defined as a

collaborative process of creating shared awareness and understanding out of different

members of the organization. Richard Perrin

languages used in organizations in order to understand culture.

Paritosh Agarwal 01 Page 11

impediments to survival when there are substantial environmental changes.

Culture is the organizations immune system. Michael Watkins

important implications for on-boarding and integrating people into organizations.