Factors shaping organizational culture

Organizational Behaviour

1. Factors Contributing to Develop An Organizational Culture

2. INTRODUCTION Organizational Culture is the totality of beliefs customs, traditions and values shared by the members of the organization. Corporate culture can be looked at as a system. It is important to consider culture while managing change in the organization.

3. What must be for culture to exist ? It must be shared by the vast majority of members of a group or society; It must be passed on from generation to generation It must shape behavior and perceptions.

4. Importance of Organizational Culture Talent-attractor Talent-retainer Engages people Creates energy and momentum Changes the view of “work” Creates greater synergy Makes everyone more successful

5. CREATING & SUSTAINING ORGANIZATIONAL CULTURE

6. Factors vital in developing the Organizational Culture Founders and owners Beliefs, goals and values Customers and the external parties Goals and objectives of the organization History and tradition of the company The management and its style of handling the employee Availability of resources

7. Factors vital in developing the Organizational Culture Culture creation occurs in three ways: Employees hire and keep employees with same thinking They indoctrinate and socialize the employees with the organization's thinking The founder's behavior acts as a role model for the employees With the organizational success, the founder's personality is embedded in the organizational culture.

8. Selection Explicit goal – identifying and hiring individuals having knowledge, skills and abilities to perform the jobs successfully. Individuals having values consistent with those of the organization are selected as per the decision maker's judgments. Selection becomes a two-way street‟ as it provides information about the organization to the applicants.

9. Top Management The actions of top management establishes the norms for the organization as to: • Whether risk taking is desirable • How much freedom managers should give to their subordinates • What actions will pay off in terms of pay rises, promotions and other rewards, etc.

10. Socialization New employees are not familiar with the organizational culture and are potentially likely to disturb the existing culture. The process through which the employees are proselytized about the customs and traditions of the organization is known as socialization. It is the process of adaptation by which new employees are to understand the basic values and norms for becoming accepted members of the organization.

11. Socialization Process Socialization is a process made up of three stages: Pre-arrival - All the learning occurring before a new member joins. Encounter - The new employee sees what the organization is really like and confronts the possibility that expectations and reality may diverge. Metamorphosis - The relatively long-lasting changes take place. The new employee masters the skills required for the job, successfully performs the new roles, and makes the adjustments to the work group's values and norms.

12. Learning the Culture Stories – Depicting the past events of the organization. Some organizations actually try to manage this element of culture learning. Rituals – Repetitive sequential activities reinforcing the values of the organization. Material Symbols – Conveying social equality, desired organizational behavior, etc. by the top management. Language – Acceptance and preservation of culture.

13. Values Values are the basic beliefs people hold that specify general preferences and behaviors, and define what is right and wrong. Cultural values are reflected in a society’s morals, customs and established practices

14. Values in Organization Values represent the guiding principles of the organization’s culture, including what guides members’ priorities and actions within the organization. Values are an increasingly important component in strategic planning because they drive the intent and direction of the organization’s leadership.

15. American Express Values Customer Commitment: We develop relationships that make a positive difference in our customers’ lives. Quality: We deliver premium value to our customers. Integrity: We uphold the highest standards in all our actions. Teamwork: We work together, across boundaries, to meet the needs of our customers.

16. American Express Values Respect for People: We value our people, encourage their development and reward their performance. Good Citizenship: We’re good citizens in the communities in which we live and work. A Will to Win: We exhibit a strong will to win in the marketplace and in every aspect of our business. Personal Accountability: We are personally accountable for delivering on our commitments

17. Relationship between culture and organizational performance Organizational culture has the potential to enhance organizational performance, individual satisfaction, the sense of certainty about how problems are to be handled. Culture serves as a control mechanism to channel behavior towards desired behaviors and to prevent undesired behaviors

18. Conclusion Culture adapts to diverse circumstances. Managers need to understand the nature and role of culture. Managers must understand the importance of culture for organizational change. Corporate culture also impacts the day-to-day decision-making of the organization.

19. References www.cultureiq.com www.torbenrick.eu www.managementstudyguide.com www.tutor2u.net

20. Thank You