Organizational Culture

Presented By :

Avick BiswasISB&M, BANGALORE.

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A system of shared meaning held by

members that distinguishes the

organization from others organizations.

Organizational Culture Organizational Culture

Primary Characteristics

Innovation and risk taking – the degree to which employee are encouraged to be innovative and take risks.

Attention to detail – the degree to which employees are expected to exhibit precision, analysis, and attention to deal.

Outcome orientation – the degree to which management focuses on results or outcomes rather than on the techniques and processes used to achieve those outcomes.

People orientation – The degree to which management decisions take into consideration the effect of outcomes on people within the organization.

Team orientation – The degree to which work activities are organized around teams rather than individuals.

Aggressiveness – The degree to which people are aggressive and competitive rather than easygoing.

Stability – The degree to which organizational activities emphasize maintaining the status quo in contrast to growth.

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Do organization have uniform cultures ?

Organizational culture represents a common perception held by the organization’s members.

Individuals with different backgrounds or different levels in the organization will tend to describe the organization’s culture in similar terms.

In most of the large organizations have a Dominant culture and numerous sets of sub-cultures.

Dominant Culture : Express the core values that are shared by majority of the organization's members.

Subculture : Minicultures within an organization, typically defined by department designations and geographical separation.

Core values : The primary or dominant values that are accepted thoughout the organization

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What Do Culture Do?

Culture's Functions

Boundary defining role

Provides sense of identity for organization members

Culture facilitates the generation of commitment something larger than one's individuals self interest

It enhances the stability of the social system

Serves as sense making & control mechanism

Culture as a Liability

Barriers to change: Culture is a liability when the shared values are not in agreement with those that will

further the organizations effectiveness. This is mostly likely to occur when an organizations an organization is dynamic. When an environment is undergoing rapid change, an organizations entrenched culture may no longer be appropriate. So consistency of behavior is an asset to an organization when it faces a stable environment .

Barriers to diversity:Hiring new employee who, because of race, age, generation, disability, or other

differences, are not like the majority of the organizations members create a paradox. Management wants new employee to accept the organizations core culture values. Otherwise , these employee are unlikely to fit in or be accepted. But at same time, management wants to openly acknowledge and demonstrate support for the differences that these employee bring support to the workplace

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Culture as a Liability continued…

Barriers to acquisitions and Mergers:

Cultural compatibility has become the primary concern. While favorable financial statement or product line may be the initial attraction of an acquisition candidate, whether the acquisition actually works seem to have more to do with how well the two organizations culture match up.

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Creating and sustaining culture

How a Culture begins: The founder of an organization traditionally have a major impact on that organizations

early culture. They have a vision of what the organization should be. They are unconstrained by previous custom or ideologies.

Keeping a culture alive :

Selection: Concern with how well the candidates will fit into the organization.

Provides information to candidates about the organization.

Top Management: Senior executives help establish behavioral norms that are

adopted by the organization.

Socialization: The process that helps new employees adapt to the organization’s culture.

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Socialization

The process that helps new employees adapt to the organization’s culture.

Socialization stages

Pre arrival Stage:

The period of learning in the socialization process that occurs before a new employee joins the organization.

Encounter Stage:

The stage in the socialization process in which a new employee sees what the organization is really like and confronts the possibility that expectations and reality may diverge.

Metamorphosis Stage:

The stage in the socialization process in which a new employee changes and adjusts to the work, work group, and organization

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How Organization Cultures Form

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How Employees learn culture Stories: In the old days, we used to.. Organization also transmit information

culture by virtue of the stories that are told in them, both formally and informally. Stories illustrate key aspects of an organizations culture and telling them can effectively introduce those values to employee.

Rituals: Repetitive sequences of activities that express and reinforce the key values of the organization, which goals are most important, which people are important, and which are expandable.

Material symbols: Object that say more then meets the eye. Organization often rely on symbols material objects that connote meanings that extend beyond their intrinsic content.

Language: Many organization and units within organization use language as a way to identify members of a culture. By learning this language, members attest to their acceptance of the culture and, help to preserve it.

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Creating an ethical organizational culture Be a visible role model: Employees will look to the behavior of top management

as benchmark for defining appropriate behavior. And it provides a positive message for all employees.

Communicate ethical expectations: It state the organizations primary values and the ethical rules that employees are expected to follow.

Provide ethical training: Use these training sessions to reinforce the organizations standards of conduct, to clarify what practices are and are not permissible and to address possible ethical dilemmas.

Visibly reward ethical acts and punish unethical ones: People who act ethically should be visibly rewarded for their behavior. Just as importantly, unethical acts should be punished.

Provide protective mechanisms: The organization need to provide formal mechanisms so that employees can discuss ethical dilemmas and report unethical behavior without fear.

CREATING A POSITIVE ORGANIZATIONAL CULTURE

Building on employee strengths: You have to know yourself- you have to know what you are good at and you have to know what you are not so good at.

Rewarding more than punishing: There is of course a time and place for punishment, but there is also a time for and place for rewards.

Emphasizing vitality and growth: A positive organizational culture emphasize not only organizational effectiveness, but individuals growth as well.

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Identifying organizational culture

The Double S Cube

A system of categorizing four types of organizational culture by combining two dimensions – sociability and solidarity. Each of the four resulting cultural types can be both positive and negative in nature.

SociabilitySociability: A dimension of the double S cube characterized by the degree of friendliness typically found among members of an organization.

SolidaritySolidarity: A dimension of the double S cube characterized by the degree to which people in an organization share a common understanding of the tasks and goals about which they are working.

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The Double S Cube

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Four Organizational Cultures

Networked CultureNetworked Culture: This type of organizational culture is characterized by high levels of

sociability and low levels of solidarity.

Mercenary CultureMercenary Culture: This type of organizational culture is characterized by a low degree of

sociability and a high degree of solidarity.

Fragmented CultureFragmented Culture: This type of organizational culture is characterized by a low degree of

sociability and a low degree of solidarity.

Communal CultureCommunal Culture: In the double S cube, this type of organizational culture is characterized by

both a high degree of sociability and a high degree of solidarity.

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Why and how does organizational culture change?

Composition of the workforce

Mergers and acquisitions

Planned organizational change

Responding to the internet

How Organizational Cultures Have an Impact on Performance and Satisfaction

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…..Thank you………