Organizational Culture

Definition :

Basic assumptions, values and Norms drive Practices and behaviors. A common perception held by organizations members: a system of shared meaning: Robbins. A pattern of basic assumptions Invented, discovered, or developed by a group As it learns to cope With its problems of external adaptation and internal integration That has worked well enough To be considered valuable and therefore, to be

taught to new members As the correct way to perceive, think, and feel

Types of organizational culture Dominant culture :

Express the core values that are shared by a majority of the organizations members.

Subcultures :

Mini culture within an organization, typically defined by the department, designation and geographical separations.

How Organization Culture Forms ?

Top Management Philosophy of Organizations founder Selection Criteria Socialization Organization Culture

Characteristics Observed Behavioral regularities Norms Dominant Values Philosophy Rules Organizational Climate Innovation and Risk taking Attention to Detail Outcome Orientation Team Orientation Aggressiveness Stability

Functions

Boundary Defining Role Sense of Identity for Organization Members Facilitates Commitment to something larger than ones Individual self Interest Enhances Social System Stability Serves as a Sense Making & Control Mechanism that Guides & Shapes the Attitude & Behaviour of the Employees.

CULTURE

ORGANIZATION

PERFORMAN CE
-

strength
Objective factors

INNOVATION & RISK TAKING - ATTENTION TO DETAIL - OUTCOME ORIENTATION - PEOPLE ORIENTATION - TEAM ORIENTATION - AGGRESSIVENESS - STABILITY

ORGANIZATON AL CULTURE PERCEIV ED AS

HI LO W

SATISFACTI ON

CAREFUL SELECTION OF ENTRY LEVEL

DESELECT

ONSISTENT ROLE MODELS

IN THE TRENCHES TRAINING LEADS TO MASTERY O

UMILITY-INDUCING EXPERIENCES PROMOTE OPENNESS TOWARD ACCEPTING ORGANI

REINFORCING FOLKLORE WARDS & CONTROL SYSTEMS ARE METICULOUSLY REFINED TO REINFORCE BEHAVIOU

HERANCE TO VALUES ENABLES THE RECONCILIATON OF PERSONAL SACRIFICES

Relationship of Environment and Strategy to Corporate Culture

Needs of the Environment

Flexibility External Stability

Strategic Focus

Adaptability Culture

Mission Culture

Clan Culture

Bureaucratic Culture

Internal

Learning Organization
Peter Senge popularized the term They have five characteristics in common: 1.Develop personal mastery 2.Use mental models 3.Build a shared vision 4.understand the power of team learning 5.Use systems thinking

PRESENCE OF TENSION:
-GAP BETWEEN VISION & REALITY -QUESTIONING/INQUIRY -CHALLENGING STATUS QUO -CRITICAL REFLECTION

LEARNING ORGANIZATION
CULTURE FACILITATING LEARNING: SYSTEMS THINKING:
-SHARED VISION -HOLISTIC THINKING -OPENNESS -SUGGESTIONS -TEAMWORK -EMPOWERMENT -EMPATHY

LEARNING ORGANIZATION IN ACTION

MANAGERS MUST:

Be receptive to new ideas. Overcome desire to Closely Control Operations. Teach their people to look at things differently. Develop systemic thinking. Develop creativity among personnel: - Personnel Flexibility. - Willingness to take risks/ accept failure. Develop a sense of personal efficacy.

Ethical Organizational Culture

An organizational culture most likely to shape high ethical standards is one thats:

High in risk tolerance Low to moderate in aggressiveness Focuses on means as well as

Ethical Organizational Culture

Steps to create a more ethical culture: Be a visible role model Communicate ethical expectations Provide ethical training Visibly reward ethical acts and punish unethical ones Provide protective mechanisms

Positive Organizational Culture

A positive organizational culture is defined as a culture that emphasizes building on employee strengths, rewards more than it punishes, and emphasizes individual vitality and growth.

Building on Employee Strengths

A positive organizational culture emphasize on showing workers how they can capitalize on their strengths. It does not ignore problems.

Rewarding more than punishing Catch employees doing the right things. Apart from extrinsic awards like pay, focus on smaller awards like praise. Failing to praise can become a silent killer.

Emphasizing Vitality and Growth

A positive organizational culture emphasizes not only on organizational effectiveness, but individual growth as well. It shows an interest in what organization does for the employee.

Limits of Positive Culture

Positive organizational culture is a new area. There is uncertainty about when and where it works best. Organizations need to be careful not to pursue Positive organizational culture past the point of effectiveness.

Spirituality and Organization Culture

Spirituality: It recognizes that people have inner life that is nourished by meaning full work.

Organization recognizes that people have Mind & Spirit.

Seek to find meaning and purpose in work.

Awareness of Spirituality helps to understand behavior of employees.

Reasons For Growing Interest in Spirituality: Increase in need for involvement and connection.

To counter feeling of emptiness and lack of faith.

Job demand makes workplace dominant in many peoples lives.

Desire to integrate personal life to professional life.

Characteristics Of Spiritual Org.: Strong sense of purpose. Trust and Respect. Humanistic work practices. Toleration of employee expression.

Benefits Of Spirituality: Improved Productivity. Employees satisfaction. Increase creativity, Team Performance and Organisation Commitment. Example:- Southwest Airlines.

GLOBAL IMPLICATIONS

DOES CULTURE AFFECT ORG ?

YES/NO US business model has been very influencial. Japan, Great Britain germany follow it. Europe and Asia --Bureaucratic structure

IMPACT OF CULTURE
EAST Custom of treating employees as a family Taking care of there needs and problems beyond workplace Setups a bond between people and company WEST BOSS can reach out to subordinates for knowledge Subordinates can question the boss Follow analytical , critical style of interaction Team decision

BUSINESS CULTURE OF INDIAN ORGANIZATION

Centralized Slow decision making Individual orientation Exhibit resistance to change Slow communication Low on knowledge sharing Mncs have brought about a considerable change

 Break the boundaries created by geography Coco cola, US company ,global corporations There business is spread across the world

CULTURE AND BOUNDARYLESS ORGANIZATION

Companies Struggle to incorporate geographic regions into their structure

STRATEGIC ALLIANCES
NEC Corp, Boeing ,Apple Computers Have strategic alliances , joint partnership with companies Organizations and companies joint projects AT&T,receive bonus S/W engineers from india work for silicon valley companies