Organizational culture

Organizational Culture
Definition, creating, sustaining, types and implications
Sources: Robbins and Ashwathapa

1. Organizational Culture Instructor: Prof. Luxmi Malodia Submitted by: Prachi | Preeti | Radhika MBA HR 05-11-2021 Organizational Behaviour/Organizational Culture/Group 07 1

2. Definition & Nature Organizational culture refers to a system of shared meaning held by members that distinguishes the organization from other organizations. 05-11-2021 Organizational Behaviour/Organizational Culture/Group 07 2 Culture is not one person-specific.

3. Characteristics of Organization’s Culture Characteristics Innovation and Risk Taking Attention To Detail Outcome Orientation  People O rientation Team Orientation Aggressiveness Stability 1 2 3 4 5 6 7 05-11-2021 Organizational Behaviour/Organizational Culture/Group 07 3

4. Functions of Organizational Culture Gives a Sense of Identity Clarify and Reinforce Standards of Behaviour It enhances the stability of the social system. Culture helps in developing sense-making and control mechanism that guides and shapes employees’ attitudes and behavior. Culture defines the rules of the game. Culture has a boundary-defining role: it creates distinctions between one organization and others. It conveys a sense of identity for organization members. Culture facilitates commitment to something larger than individual self-interest. Generate Commitment Among Employees 05-11-2021 Organizational Behaviour/Organizational Culture/Group 07 4

5. 05-11-2021 Organizational Behaviour/Organizational Culture/Group 07 5 Five Dimensions of Corporate Culture

6. Levels of Culture 05-11-2021 Organizational Behaviour/Organizational Culture/Group 07 6

7. Mechanistic and Organic Cultures Mechanistic Organisational Culture W ork is conceived as a system of narrow specialism Authority tends to flow down from the top down to the lower levels Prescribed channels of communication. Change is resisted. Organic Culture Emphasis on task accomplishment, team work The persons with expertise may wield far more influence than the formal boss. Free-flow of communication. The culture stresses flexibility, consultation, change and innovation. 05-11-2021 Organizational Behaviour/Organizational Culture/Group 07 7

8. General Motors is an organization using this model because : Large size Many people and functions Order is needed Repetitive tasks 05-11-2021 Organizational Behaviour/Organizational Culture/Group 07 8 Example: Mechanistic Culture

9. Facebook Inc. is an organization using this model because : Creative problem solving and decision-making Continuous improvement Boldness Openness Speed 05-11-2021 Organizational Behaviour/Organizational Culture/Group 07 9 Example: Organic Culture

10. Authoritarian and Participative Cultures Authoritarian Culture P ower is concentrated on the the top level management A uthority demands obedience from the employee and any disobedience is punished to set an example to others . Rigid ideas and limited creativity. This type of culture is followed by military organization. Participative Culture E mployees actively participate in the decision making process. E mployees are perfectionist, active and professional. Group problem-solving leads to better decisions because of many ideas and creativity. Professional employees who see themselves as equals. 05-11-2021 Organizational Behaviour/Organizational Culture/Group 07 10

11. Subculture and Dominant Culture Dominant Culture A culture that expresses core values that are shared by a majority of the organization’s members. Dominant culture is a product of what is called national culture. Takes precedence over all other cultures. Subculture Mini-cultures found in departments and divisions. Reflect the common problems or experiences of employees who reside in these areas. Consist of the core values of the dominant culture as well as values unique to the department to which it relates 05-11-2021 Organizational Behaviour/Organizational Culture/Group 07 11

12. Example: Dominant and Subculture Clash Hewlett-Packard putting up operations in India in late 1980 s. Chief of the Asia Pacific region and the person in charge of the Indian operations, curious about the cubical and railing in the entrance of the plant. Frisking of employees was to be carried out in order to detect any smuggling of valuable components, he was told. The chief, a Singaporean by nationality, was aghast at these answers. Everywhere, HP stood by its credo- “Respect and Trust People ”. “You will not letter the wall with the credo unless you pull out the railings. You will not frisk anyone over here”’ shouted the chief. Finally, he had his say and way. The railing was removed and the credo was put up . 05-11-2021 Organizational Behaviour/Organizational Culture/Group 07 12

13. Subculture and Dominant Culture Strong Culture O rganization’s core values are both intensely held and widely shared. Clear objectives High behavioral control R educed employee turnover U nanimity of purpose builds cohesiveness, loyalty, and organizational commitment Less need for developing formal rules and regulations . Weak Culture Values shared by only a few people, mostly the top management. No clarity in what is important. Low behavioral control Higher Turnover Rate Employees have little identification with the culture. There are several subcultures High need for formal rules and regulations which are not as effective. 05-11-2021 Organizational Behaviour/Organizational Culture/Group 07 13 Strong and Weak Cultures

14. Example: Strong Culture Taj Hotel 11 Employees in Taj Hotel, Mumbai lost their lives to save the hotel’s guests in 2008. ICICI Bank During the merger with Bank of Madura (2400 employees) in 2003, ICICI Bank (1600 employees) was able to assimilate Bank of Mudra. 05-11-2021 Organizational Behaviour/Organizational Culture/Group 07 14

15. Disadvantages of a S trong C ulture 05-11-2021 Organizational Behaviour/Organizational Culture/Group 07 15

16. Challenges that Evoke Organizational Culture 05-11-2021 Organizational Behaviour/Organizational Culture/Group 07 16 How the organization will find a niche in and cope with its constantly changing external environment Establishment and maintenance of effective working relationships among the members of an organization.

17. Where does an OC Come From? 05-11-2021 Organizational Behaviour/Organizational Culture/Group 07 17 Culture Formation around Critical Incidents Identification with Leaders Property Rights Organizational Structure Organizational Ethics Characteristics of People within the Organization

18. Creating Culture 05-11-2021 Organizational Behaviour/Organizational Culture/Group 07 18

19. Sustaining Organizational Culture 05-11-2021 Organizational Behaviour/Organizational Culture/Group 07 19

20. Socialization Process 05-11-2021 Organizational Behaviour/Organizational Culture/Group 07 20 Individual comes with his own values > Encounter of expectations with reality > newcomers’ differences will be stripped away and replaced by standardized predictable behavior

21. In a nut shell: How Cultures Form 05-11-2021 Organizational Behaviour/Organizational Culture/Group 07 21 The original culture derives from the founder’s philosophy and strongly influences hiring criteria as the firm grows. Top managers’ actions set the general climate, including what is acceptable behavior and what is not. The way employees are socialized will depend both on the degree of success achieved in matching new employees’ values to those of the organization in the selection process, and on top management’s preference for socialization methods .

22. Practices to Develop Culture 05-11-2021 Organizational Behaviour/Organizational Culture/Group 07 22

23. Example G o o g l e has created and communicated an exciting organizational culture. The highly communicative work culture at Google offices worldwide fosters a productivity and camaraderie fueled by the realization that millions of people rely on Google results. Exciting and interesting celebrations such as the Pajama Day, quarterly and annual off-sites, summer picnics give Googlers a chance to get to know each other socially and have fun . The work environment is laid back and gives google an edge over its competitors because the employees are so committed . 05-11-2021 Organizational Behaviour/Organizational Culture/Group 07 23

24. Global Implications 05-11-2021 Organizational Behaviour/Organizational Culture/Group 07 24 All these dimensions are different for different countries. Most companies conditions there managers to be culturally sensitive. For example: Individualism is high in United States but collectivism is high in china. While, there is much higher power distance in China as compared to United States.

25. Implications for Managers 05-11-2021 Organizational Behaviour/Organizational Culture/Group 07 25

26. Effects of Organizational Culture 05-11-2021 Organizational Behaviour/Organizational Culture/Group 07 26

27. Thank You 05-11-2021 Organizational Behaviour/Organizational Culture/Group 07 27