Organizational Culture

Culture Shock?
You can be serious without a suit The funny thing about Americans in our office is that they are always eating or drinking something

Brits are still used to just breakfast, lunch and dinner Stephen P Robbins et al. , 2009, p. 600

What do we mean by Culture?

In 1871, Edward B Tylor, one of the first Anthropologists, introduced the term culture into the English language.
He defined culture as to: that complex whole which includes knowledge, beliefs, art, morals, law, custom and any other capabilities and habits acquired by man as a member of society. In simple terms, it refers to the way of life of a group of people, its traditions, heritage, design of living etc.

What is Organizational Culture?

I cant define it, but I know it when I see it. HDFC Bank and ICICI Bank

Hyundai Motors and Tata Motors

Tata Teleservices and Reliance Telecom TVS Motors and TAFE

OC: Definitions
The collective programming of the mind Hofstede, 1980.
A set of symbols, ceremonies and myths that communicate the underlying beliefs and values of that organization to its employees Ouchi, 1981. A pattern of shared basic assumptions (a) that the group learned as it solved its problems of external adaptation and integration (b) that has worked well enough to be considered valid and, therefore, (c) to be taught to new members as the correct way to perceive, think, and feel in relation to those problems Schein, 1992.

Primary Characteristics of OC
Innovation and risk taking Attention to detail Outcome orientation People orientation Team orientation Aggressiveness Stability

Do Organizations Have Uniform Cultures?

Dominant Culture Expresses the core values that are shared by a majority of the organizations members Subcultures Minicultures within an organization, typically defined by department designations and geographical separation Core Values The primary or dominant values that are accepted throughout the organization Strong Culture A culture in which the core values are intensely held and widely shared

What Do Cultures Do?

Culture

1. Defines the boundary between one organization and others

2. Conveys a sense of identity for its members

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

4. Enhances the stability of the social system

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

Culture as a Liability
Barrier to change
Occurs when cultures values are not aligned with the values necessary for rapid change

Barrier to diversity
Strong cultures put considerable pressure on employees to conform, which may lead to institutionalized bias

Barrier to acquisitions and mergers

Incompatible cultures can destroy an otherwise successful merger

How does culture form?

Stems from the actions of the founders: Founders hire and keep only employees who think and feel the same way they do. Founders indoctrinate and socialize these employees to their way of thinking and feeling.

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

Founders Dream
Be sure to lay wide streets planted with shady trees, every other of a quick-growing variety. Be sure that there is plenty of space for lawns and gardens. Reserve large areas for football, hockey and parks. Earmark areas for Hindu temples, Mohammedan mosques and Christian churches. Jamsetji Nusserwanji Tata

How does culture form?

How Employees Learn Culture

Stories
Anchor the present into the past and provide explanations and legitimacy for current practices Repetitive sequences of activities that express and reinforce the key values of the organization Acceptable attire, office size, opulence of the office furnishings, and executive perks that convey to employees who is important in the organization Jargon and special ways of expressing ones self to indicate membership in the organization

Rituals

Material Symbols

Language

Creating a Positive Organizational Culture

Positive Organizational Culture
A culture that:
Builds on employee strengths
Focus is on discovering, sharing, and building on the strengths of individual employees

Rewards more than it punishes

Articulating praise and catching employees doing something right

Emphasizes individual vitality and growth

Helping employees learn and grow in their jobs and careers

Limits of Positive Culture:

May not work for all organizations or everyone within them

Culture as an Intervening Variable

Employees form an overall subjective perception of the organization based on these objective factors:

The opinions formed affect employee performance and satisfaction.

Managerial Implications
Strong cultures are difficult for managers to change Selecting new hires that fit well in the organizational culture is critical for motivation, job satisfaction, commitment, and turnover Socialization into the corporate culture is important As a manager, your actions as a role model help create the cultural values of ethics, spirituality, and a positive culture

Transformation at Sundaram Fastners

Four Aspects:
Formulation of a Vision

Communication of the Vision

Setting Milestones Winning at every Milestone

Concluding Observations
OC is related to performance and satisfaction.
It is relatively stable over a period of time yet not static. With a firm footing on core values corporations can transform their culture to suit changing conditions for sustainable growth and success.

Thanks a lot!