Organizational Culture

Definition

• It refers to pattern of learned behaviors that is shared and

passed on among the members of an organization

• It comprises of the various assumptions, values, beliefs,

norms, rituals, language, etc that people in an organization
share

• Organizational culture distinguishes every organization from

others
 Characteristics of Organizational Culture
• Norms: Standards of behavior and guidelines on the quantum and quality of work
that every employee has to deliver

• Innovation and Risk taking: Degree to which employees are encouraged to be

innovative and to take risks

• Attention to Detail: Extent to which employees are expected to develop

characteristics of precision, analysis and attention to detail

• Outcome orientation: Extent to which the organization stresses the outcomes

rather than the means and processes of accomplishing them

• People orientation: Degree to which management takes into consideration , the

effect of decisions made and the outcomes of these decisions on the people in the
organization

• Team orientation: Level of importance laid on effective team work as compared

to individual efforts and contributions to the organization
 Characteristics of Organizational Culture (Continued)
• Observed Behavioral regularities: Common language, terminology, rituals,
symbols, etc that employees in an organization observe while interacting
with one another

• Dominant values: Commonly accepted and adopted values that the

employees in an organization are expected to share and abide by

• Rules: Strict guidelines for new employees to make them aware of how to
get along in the organization and how to become accepted as members of the
organization

• Philosophy: General policy and guidelines which determine the

organization’s behavior towards its employees and customers

• Organizational Climate: Overall impression an employee in an organization

experiences because of the physical layout of the office or plant, the way
people interact and the way employees behave with customers
 Uniformity (Forms) of culture

• Dominant Culture: It represents core values (guiding day-to

day behavior) shared by a majority of members in the
organization

• Subculture: Values and norms which are held by a small

minority of members in the organization and are formed when
people meet others with whom they can identify and form
various social categories or groups on the basis of age,
occupation
 Strength of a Culture

• Sharedness: It refers to the degree to which the core

organizational values are accepted and shared by its members

• Intensity: It is the degree to which members of an organization

are committed towards its core values

• Formalization: It is the degree of standardization of jobs in an

organization that has to be done in a predetermined manner,
leaving little discretion to the employees over job elements
 Types of Culture
• Market Culture: It focuses on interaction with the external
environment and on gaining a competitive advantage through
enhanced efficiency and productivity

• Adhocracy: It tries to establish an informal organization by

doing away with formal rules and regulations

• Clan Culture: It emphasizes informal governance and group

maintenance

• Hierarchical Culture: It is characterized by formal

organizational process, conservative leadership and obedience
to the norms of the organizational culture
 Functions of Culture

• Boundary defining role( Creates a distinct identity)

• Sense of identity (Employee Commitment)

• Collective Commitment (Common beliefs)

• Stability of Social System (Social Bonding)

• Shared meaning and Control Mechanism (Governing activities

and behavior)
 Beginning of a Culture in an organization
• Selection: Identify not only the technical and professional
capability of the applicant but also recognize how well the
applicant culturally “fits” into the organization

• Top Management: Ideologies and values of the top

management, their behavior, speech and actions influence the
culture

• Socialization: It is the formal procedure through which new

employees to the organization are educated about the
organizational culture and encouraged to internalize the values
and ideologies of the organization
 Socialization stages

The stages of Socialization are:

• Pre-arrival Stage: A gradual attempt is made to introduce the

values, norms and expectations of the organization to the new
employee

• Encounter Stage: The employee becomes aware of the reality

of the workplace as compared to his/her expectations of the
job and organization

• Metamorphis Stage: It refers to the actual process of change

that new employees undergo when they try to mold their
behavior to conform to organizational expectations
 Learning Culture

• Stories and narratives: They are events that have occurred in the past
in an organization

• Rituals: Rituals are activities that are repeated on particular

occasions to help reinforce the core values and key objectives of the
organization.

• Ceremonies: They are social gatherings of all the members of the

organization in which exceptional performers are rewarded

• Material symbols: They are rewards that are given in an

organization to indicate special importance to the employees

• Language: A common language including simple jargons or

acronyms that are identified by majority of members is used
 Change Process

• Assess existing culture- Analyze the need for a cultural change

• Change agent- Guides the path of change

• Introduce alternatives- Improve productivity levels

• Define a new paradigm- Explain new cultural patterns or models

• Top-down approach- Message transmission across all management levels

• Employee participation- Ensuring adequate employees in decision-making

• Shed the old paradigm- Adapt new procedures and norms

• Quick transition- Quick movement of change process