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Organizational culture and change

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Corporate culture Types of culture, importance

Nature

Formal & informal components of org culture

Functions Creating & sustaining culture

Designing strategy for cultural change- transglobal & cross cultural contents

Researches on cultural differences in org Org culture & leadership

Emerging trends in org culture

2Pavithra S, RITM, MBA Dept

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Culture is social principle, goals or standards

held by members of an organization,individually or collectively.

Organization culture is a set of basicassumptions , values , morals and Norms that

guide and direct an individual behave inspecified way.


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Organizational culture is similar to, say, regionalculture. The same person in differentorganizations (or parts of the same organization)would act in different ways.

Organizational culture can loosely be definedas the shared assumptions, beliefs, and("normal behaviors" )norms of a group.

These are powerful influences on the waypeople live and act, and they define what is"normal To a large degree, what we do isdetermined by our culture.


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Corporate culture refers to a system of sharedmeaning held by members that distinguishes theorganization from other organizations.

, defines org culture as a pattern of

basic assumption-invented, discovered ordeveloped by a given group as it learns to copewith its problems of external adaptation andinternal integration-that has worked well enoughto be considered valuable and therefore, to be

taught to new members as the correct way toperceive, think, and feel in relation to thoseproblems


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Mechanistic and organic culture

Dominant and subcultures

Strong vs. weak cultures

Authoritarian and participative cultures


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The mechanistic culture ischaracterized by the values ofbureaucracy and feudalism.

Organizational work is conceived as asystem of narrow specialism and

people think of their careers mainlywithin these specialism.


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Authority is through of as flowing downfrom the top of the organization down tothe lower levels and communication flowsthrough prescribed channels.

There is a great deal of departmental loyaltyand interdepartmental animosity.

This sort of culture resists change andinnovation


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In the problem situations, the persons withexpertise may wield far more influence than theformal boss.

There is a widespread understanding within thestaff, or the problems, threats and opportunitiesthe org is facing and there is willingness andpreparedness to take appropriate roles to solvethe problems.

The culture stresses flexibility, consultation,change and innovation


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A dominant culture expresses the core values

that are shared by a majority of theorganizations members.

When we talk about an organizations culture,we are referring to its dominant culture.


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Subcultures tend to develop in large org to

reflect common problems, situations orexperiences that members face.

These subcultures are likely to be defined bydepartment designations and geographical

separation.


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E.g. purchasing department can have a

subculture that is uniquely shared bymembers of that department.

It will include the core values of the dominantculture plus additional values unique to

members of the purchasing department.


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Strong cultures have a greater impact onemployees behavior and are more directlyrelated to reduce turnover.

In a strong culture, the organizations corevalues are both intensely held and widelyshared

The more members who accept the corevalues and the greater their commitment tothose values are, the stronger the culture is.


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Strong culture will have a great influence on thebehavior of its members because the high degree ofsharedness and intensity creates an internal climateof high behavioral control.

Specific result of strong culture should be loweremployee turnover.

Strong culture demonstrates high agreement among

members about what the organization stands for.

Such unanimity of purpose builds cohesiveness,loyalty and organizational commitment


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In authoritarian culture power is concentratedon the leader and obedience to orders anddiscipline are stressed

Any disobedience is punished severely to setan example to others.

The basic assumption is that the leaderknows what is good for the org and the onealways acts in its interests.


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The participative culture premised on the notionthat people are more committed to the decisionsthat are participatively made than to those whichare imposed on them.

Group problem solving leads to better decisionsbecause several new points and information areshared during discussions.

Participative culture tend to emerge where mostorg members are professional or see themselvesas equals.


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: the degree to whichemployees are encouraged to be innovative andtake risks.

: the degree to whichemployees are expected to exhibit precision,analysis, and attention to detail.

: the degree to which

management focuses on results or outcomesrather than on the techniques and processesused to achieve those outcomes.


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: the degree to which managementdecisions taken into consideration the effect ofoutcomes on people within the organization

: the degree to which work activities

are organized around teams rather than individuals

: the degree to which people areaggressive and competitive rather than easy-going

: the degree to which organizational activitiesemphasize maintaining the status quo in contrast togrowth


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: when orgparticipants interact with one another, theyuse common language, terminology andrituals related to deference and demeanor.

: standards of behavior exist, includingguidelines on how much work to do, which in

many org come down to do not do too much;do not do too little


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: there are major values that orgadvocates and expects the participants to share. Typicale.g. high product quality , low absenteeism, and highefficiency.

: there are strict guidelines related to gettingalong in the org. newcomers must learn those rules inorder to be accepted as full-fledged members of thegroup.

: the way participants interact and the waymembers of the org conduct themselves with customeror other outsiders.


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: what the org is about; what itdoes; its mission; its values.

: the processes in place tomonitor what is going on, role cultures wouldhave vast rulebooks.

: reporting lines, hierarchies,and the way that work flows through thebusiness


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: who makes the decisions,how widely the power is spread, and on whatis the power based?

: org logos and designs and extendto symbols of power such as parking spacesand executive washrooms

: management meetings,board reports


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Culture performs a no of functions.1. It has a boundary defining roles.

2. It conveys a sense of identity for org members.

3. Culture facilitates the generation of commitment

to something larger than ones individual self-interest.

4. It enhances the stability of the social system.

5. Culture serves as a sense making and control

mechanism that guides and shapes the attitudesand behavior of employees


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Creating culture: an org current customs, traditions andgeneral way of doing things are largely due to what it hasdone before and the degree of success it has had with thoseendeavors.

Culture creation occurs in 3 ways

1. Founders hire and keep only employees who think and feelthe same way they do.

2. The indoctrinate and socialize these employees to their wayof thinking and feeling.

3. The founders own behavior acts as a role model that

encourages employees to identify with them and therebyinternalize their beliefs, values and assumptions.


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If culture is so stable, why and how does itever change?

External events such as shifts in marketconditions, new technology, altered govtpolicies and many other factors changeovertime, necessitating changes in an orgmode of doing business and hence itsculture.


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The five approaches to change culture . Theyare:

1. Change reward system:

2. Add new members

3. Implement culture shock: cut in profits,dismissal of top boss.

4. Change of top management

5. Involve members: participative mechanismsare successful


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With the advent of technology and the global villagemaking its mark, the no of business travelers fromand to different countries has increased multifold inthe past last 15 years.

This has brought in need to understand the various

cultures of the countries . Business relationships often suffer because we fail to

understand the psychology and behavior of thatnation.

Each cultural world operates according to its owninternal dynamic, its own principles and its own laws.

Even dimensions of time and space unique to eachculture.


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In cultures with low power distance, people expectand accept power relations that are more consultativeor democratic ( Austria, Australia, Denmark, newZealand)

In Malaysia they expect autocratic or paternalisticculture.

Germany people tend to have more looserelationships than countries where there is acollectivism where people have large extendedfamilies.

In IBM studies reveal that women values differ less

among societies than men values. Germans try to avoid uncertainty compared to

Denmark Singapore


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Leadership, as defined by most dictionaries,means "to go before, or with, to show theway; to induce."

Every organization needs a leader (and

preferably several leaders) to "show the way"to others as the organization strives to defineand achieve its goals.

Whether these goals are entrepreneurial or

humanitarian or both the leader's workis to instill a sense of purpose and passion tothe work that the organization undertakes.


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Identifying, developing and sustainingleadership in your organization must be oneof your strategic objectives.

Without leaders at every level of your

organization, your organization may wellunder-perform.

It may miss strategic opportunities,innovation, underutilize your employees, andfall short of its goals in customer service,quality, productivity, and profitability.


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Mission and Vision Statement Analysis Strategic Planning

Reward and Recognition

Change Management Leadership

Team Building

Facilitation

Pavithra S, RITM, MBA Dept

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Thank You

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