Organizational culture

A COMMON PERCEPTION HELD BY THE ORGANIZATIONS MEMBERS: A SYSTEM OF SHARED MEANING

A PATTERN OF BASIC ASSUMPTIONS THAT ARE CONSIDERED VALID AND THAT ARE TAUGHT TO NEW MEMBERS AS THE WAY TO PERCEIVE,THINK AND FEEL IN THE ORGANIZATION.

BILL HEWLETT- DAVE PACKARD

Plaque outside the ramshackle house at 367Addison St. in Palo Alto California, identifies the dusty one car garage as the birth place of Silicon Valley Packard , an opinionated star athlete had a commanding presence To match his 65 frame. Hewlett, whose technical genius was obs cured from teachers by undiagnosed dyslexia, favoured dorm-room pranks and puns. Both soon discovered passion for Camping and fishing----and for turning engineering theory into Breakthrough products.-----result one of the most influential Companies of the 20th century.

They set out to create a company that would attract like minded techies They shunned the rigid hierarchy of companies in favour of an egalitarian, decentralized system that came to be known as the HP way The essence of the idea was that employees brain power was the most Important resource.

Starting in 1941 they granted big bonuses to all employees when the Company improved its productivity.That evolved into one of the first All company profit sharing plans. HPs offices were unusual to encourage free flow of ideas, employees worked in open cubicles.Even supply closets were to be kept open.

When Hewlett saw a lock on a closet he left a note: HP trusts its emlpoyees.
HPs policies were progressive, there was nothing coddling about either man. Packard was a fearsome paragon of corporate integrity famous for flying to distant branches to make a show of firing managers Who skirted ethical lines. Niether man would hesitate to kill a business if it wasnt hitting its profit goals. HP as a result grew nearly 20% a year for 50 years without a loss

INSTITUTIONALIZATION
WHEN AN ORGANIZATION TAKES ON A LIFE OF ITS OWN,APART FROM ANY OF ITS MEMBERS AND ACQUIRES IMMORTALITY. Eg., COKE,DISNEY,TIMEX,TATAS,GODREJ, NESTLE,DABUR,

TEN PRIMARY CHARACTERISTICS THAT IN AGGREGATE CAPTURE THE ESSENCE OF OC

1 2 2 3 4 5 6 7 8 9 MEMBER IDENTITY GROUP EMPHASIS PEOPLE FOCUS UNIT INTEGRATION :JOB-----------ORGANIZATION :INDIVIDUAL-------GROUP :TASK----------PEOPLE :INDEPENDENT---INTERDEPENT CONTROL :LOOSE-------TIGHT RISK TOLERANCE :LOW ----------HIGH REWARD CRITERIA :PERFORMANCE-----OTHER CONFLICT TOLERANCE :LOW-------HIGH MEANS-END ORIENTATION :MEANS----END OPEN-SYSTEM FOCUS :INTERNAL----EXTERNAL

CORE VALUES:

The primary or dominant values that are accepted throughout the organization. What members in the organization say they value.

ESPOUSED VALUES:

ENACTED VALUES:Values reflected in the way individuals actually behave.

DOMINANT CULTURE:

Expresses the core values that are shared by a majority of the organizations members. Minicultures within an organization,typically defined by department designations and geographical separation. A culture in which the core values are intensely held and widely shared

SUB CULTURES:

STRONG CULTURE:

BASIC ASSUMPTIONS BASICASSUMPTIONS

ARTIFACTS

VALUES NORMS

I take ACTIONS based on my beliefs I adopt BELIEFS about the world

I draw CONCLUSIONS I make ASSUMPTIONS based on the meanings added

I add MEANINGS (cultural and personal)

I select DATA from what I observe

I OBSERVE data and experiences

What does culture do?

It has boundary defining role: creates distinctions between one organization and others It conveys a sense of identity to its members Culture facilitates the generation of commitment to something larger than ones individual self interest. . It enhances social system stability.It is the social glue that helps hold the organization together by providing appropriate standards of what employees should say and do. . Sense making and control mechanism that shapes and guides attitudes and behavior of employees.

ORGANIZATIONAL IDENTITY What we stand for ? who we are? What do we do ?

SENSE MAKING DEVICE How and why we Do things the way We do it

ORGANIZATIONAL CULTURE

COLLECTIVE COMMITMENT What we do?

SOCIAL- SYSTEM STABILITY Rewards and positive, reinforcement,change &stability, Attract talent, lower turnover rates.

ARTIFACTS:

SYMBOLS OF CULTURE IN THE PHYSICAL AND SOCIAL WORK ENVIRONMENT. Personal enactment ceremonies and rites stories V Rituals A symbols L Personal enactment: U behavior that reflects ORGN VALUES E behavior of ORGANIZATION MEMBERS S behavior of top managers lends insight into these values. modeled behavior is a powerful learning tool.

Ceremonies and Rites:

Rites of passage :-

show that an individuals status has changed eg.,retirement,probation to permanent,traineegraduation ceremony.

Rites of enhancement:-reinforce the achievement of individuals or groups eg., certificates,sales contest winners Rites of renewal: emphasize change in the organization and commitment to learning and growth. Eg high ranking official kicking off training programs. unite diverse groups or teams within the orgn and renew commitment to the organization.

Rites of integration:

Rites of conflict reduction:focus on dealing with conflict reduction seg., grievance redressal,exit interviews
Rites of degradation: used to visibly punish persons who fail to adhere to values and norms.

STORIES: Stories about the boss: reflect whether or not the boss is human or how the boss reacts to mistakes.

Stories about being fired:

Stories about how the company deals with employees who have To relocate.
Stories about whether lower level employees can rise to the top. Stories about how the company deals with crisis situations Stories about how status considerations work when rules are broken

RITUALS: THE WAY WE DO THINGS AROUND HERE Everyday organization practices that are repeated over and over Usually unwritten but send a clear message. SYMBOLS: ARE UNSPOKEN MESSAGES

MATERIAL SYMBOLS:

LANGUAGE :

Chauffeur driven limousines, elegance of furnishings, corporate jets,executive perks, dress attire. At disney employees are cast members, customers are guests rides are attractions, law enforcement personnel are security hosts, uniforms are costumes, people are not working they are onstage

ACRONYMS IN AD BUSINESS MMB: Monday morning blues Require it yesterday:Deadline is critical TDS: Third day sweets Aps: Advertising positioning strategy

Trigger/button: The crestive idea- breakthrough Account: client

Gyan: Jargonistic information on a given topic

ASSUMPTIONS:
Deeply held beliefs that guide behavior and tell members of an organization how to perceive and think about things

Relationship to environment
Nature of reality,time and space Nature of human nature and human activity

Nature of human relationships

Essence of culture unconscious

LEADERS ROLE IN SHAPING AND REINFORCING CULTURE *WHAT LEADERS PAY ATTENTION TO: What do leaders notice, comment on, measure,and control eg., standardization of Mc Donalds burgers. *HOW LEADERS REACT TO CRISIS : Emotions are heightened and learning is intense during a crisis-HP way, Costco, *HOW LEADERS BEHAVE: Role modeling,teaching coaching, leaders reinforce the values: be it customer responsiveness, entrepreneurship *HOW LEADERS ALLOCATE REWARDS: Pay for performance,Length of service,individual or Team performance. *HOW LEADERS HIRE AND FIRE INDIVIDUALS: On what basis are employees selected and how and on what basis are they fired.

SOCIALIZATION PROCESS PREARRIVAL Period of learning in the socialization Process that occurs before an employee Joins the orgn ALSO CALLED ANTICIPATORY SOCIALIZATION ENCOUNTER METAMORPHOSIS a new employee may employee adjusts confront the reality that to his or her expectations and reality groups values may diverge and norms

OUTCOMES---- PRODUCTIVITY,COMMITMENT,TURNOVER

HOW CULTURES FORM

TOP MNGT

PHILOSOPHY OF ORGANIZATIONS FOUNDERS

SELECTION CRITERIA

ORGANIZATIONAL CULTURE

SOCIALIZATION

ORGANIZATIONAL CULTURE AND PERFORMANCE FIT PERSPECTIVE ARGUES THAT A CULTURE IS GOOD ONLY IF IT FITS THE INDUSTRY OR FIRMS STRATEGY. SO 3 THINGS AFFECT CULTURE: THE COMPETITIVE ENVIRONMENT CUSTOMER REQUIREMENTS SOCIETAL EXPECTATIONS ADAPTIVE CULTURE AN ORGANIZATIONAL CULTURE THAT ENCOURAGES CONFIDENCE AND RISK TAKING AMONG EMPLOYEES HAS LEADERSHIP THAT PRODUCES CHANGE,AND FOCUSES ON THE CHANGING NEEDS OF CUSTOMERS.

HIRING AND SOCIALIZING MEMBERS WHO FIT IN WITH THE NEW CULTURE 4 CULTURAL COMMUNICATION

CULTURE

REMOVING MEMBERS WHO REJECT THE CUL TURE 5

CHANGING BEHAVIOR 1 EXAMINING JUSTIFICATIONS FOR CHANGED BEHAVIOR