Organizational culture is defined as the shared values, beliefs, and norms that are developed in an organization. It is the soul of an organization that provides direction, identity, and cohesion. There are several models for describing organizational culture types such as power versus role versus task cultures, and control versus compete versus collaborate versus create cultures. Developing and sustaining culture involves establishing shared values and assumptions, creating a vision and mission, socializing new employees, and actions from top management to reinforce the culture. Organizational culture impacts objectives, work ethics, motivation, processes, performance, and provides a sense of identity and commitment. Maintaining, reinforcing, and managing changes to culture are important ongoing issues.
2. Introduction
• Culture is the characteristics and knowledge of a
particular group of people, encompassing
language, religion, cuisine, social habits, music
and arts. The word "culture" derives from a
French term, which in turn derives from the Latin
"colere," which means to tend to the earth and
grow, or cultivation and nurture.
• Culture is the beliefs, behaviors, objects, and
other characteristics shared by groups of people.
4. Organizational Culture
Henry Mintzberg
“Culture is the soul of the organization — the
beliefs and values, and how they are
manifested. one thinks of the structure as the
skeleton, and as the flesh and blood. And
culture is the soul that holds the thing together
and gives it life force.”
5. Culture as the philosophies &
practices of an organization
Patterns
• Mechanistic (how it is working, clear cut chain of
authority & duties has been defined) & Organic
(flexibility, Adaptable)
• Authoritarian (authority based, concentrated at
center) & Participative (allowing employees to
take part in decision making process)
• Subculture (diff. departments) & Dominant (one
prominent culture is followed by everyone)
• Strong (positive) & Weak Culture (negative)
6.
7. Characteristics of Culture
• Initiative and Risk Taking (new, Innovative)
• Outcome Orientation (approach for the result)
• Detail Orientation (internal environment)
• People Orientation (supportive, caring)
• Team Orientation (mutual help, co-ordination)
• Stability (future prediction)
• Outcome Oriented (targets, performance)
• Aggressive Culture (extra efforts to achieve
objectives)
9. Developing & sustaining Culture
Organizational culture The term ‘Culture’
signifies values, beliefs, morals, customs, habits
and knowledge acquired by the people living in
a society. Organizational Culture is the
acquisition of values, beliefs, attitudes,
expectations, etc by the employees of an
organization.
10. Process of developing & sustaining
Culture
Establish
Values &
shared
Assumptio
ns
Create
Vision &
Mission
Sustaining
Culture
Socializati
on of
Employees
Culture
Emerges
11. Establish Values & shared Assumptions
• Values reflect what one feels is important in their life. At an individual
level, values could include concepts such as caring, empathy, or trust,
among many others. At the organizational level, examples of values might
include accountability, customer service, Dependability, Reliability,
Loyalty, Commitment, Open-mindedness, Consistency, Honesty,
Efficiency and safety.
• Organizational values are the bedrock of an organization. They are the
foundation on which the organization is built. They describe the individual
and corporate behaviors that will get the organization from where it is
now, to achieving the mission and living the vision.
• All deeper levels of organizational culture begin as a shared value and
eventually become shared basic assumptions (over time, after repetition).
For example, values such as trust, honesty and integrity play a strong role
within the moral structure of many organizations.
12. Create Vision & Mission
• A vision describes the company's purpose, what the company is striving
for, and what it wants to achieve.
• It describes the desired future position of the company.
• A Mission Statement defines the company's business, its objectives and
its approach to reach those objectives. Elements
of Mission and Vision Statements are often combined to provide
a statement of the company's purposes, goals and values.
•
The mission and vision statements of a company help direct
the organizational strategy. ... Mission and vision statements help
businesses to outline performance standards and metrics based on the
goals they want to achieve. They also provide employees with a specific
goal to attain, promoting efficiency and productivity.
• A great culture starts with a vision or mission statement. These simple
turns of phrase guide a company's values and provide it with purpose. ...
When they are deeply authentic and prominently displayed, good vision
statements can even help orient customers, suppliers, and other
stakeholders.
13. Sustaining Organizational Culture
• The following approaches are useful:
– Selection
– Identify and hire right individuals.
– Actions of Top Management
– Senior executives establish and communicate the norms of the organization.
– Socialization
– Organizations need to teach the culture to new employees.
• Selection- An individual who is well qualified and trained may not be prepared to accept the
organization’s culture.
• It is important that the principle of ‘right man for the right job’ is applied to find out the
preparedness of an individual to accept and follow faithfully the organization’s practices.
• Employees should be rewarded to encourage their behaviour matching to organizational
values.
• Actions of Top Management- For keeping the organizational culture alive, the top
management should reiterate is values, beliefs, and goals by advising the middle and lower
level managers and through them the employees of the entire organization.
• If any deviation occurs from the basic norms of the organization, it shall take appropriate action
to set things right.
14. Socialization
• Acc to Allen & Mayor, it is the process that adapts employees to the
organization’s culture.
• Preparing the new employees to adapt & understand the org culture,
which has the following 3 stages. Socialization Process Outcomes
Productivity Prearrival Encounter Metamorphosis Commitment Turnover
• Stages in the Socialization
– Pre arrival -The period of learning prior to a new employee joining the
organization.
– Encounter - When the new employee sees what the organization is really like,
He/She starts comparing the expectations they had in the pre-arrival stage
with the reality.
– Metamorphosis - When the new employee changes and adjusts to the work,
work group, and organization. At this stage the employee masters the art of
adapting to the organization’s values and norms.
15. Means of Transmitting Org Culture
The Organizational culture is transmitted to the employees usually through the
following means.
• Stories Transmitting the org culture by narrating the hardships and sufferings of
people who have founded the organization. Once the employees are understand
the same, they will be able to appreciate and emulate the values and beliefs for the
promotion of which the org has been founded.
• Rituals Repetitive sequences of activities that express and reinforce the key values
of the organization. Examples- Daily morning prayer, weekly family dinner, monthly
picnic, annual award presentation, etc are a few examples of such rituals. The
performance of these rituals helps the employees appreciate the organization’s
culture.
• Symbols Certain physical symbols used in the organization do reflect its culture.
Examples - Inscribing the logo of the org in all the stationery items provided for the
staff, uniforms for different categories of employees, reserved car park for
executives, luxurious office furnishing, etc.These symbols become important tools
of transmitting and sustaining the culture of the organization.
16. • Language Every org develops certain unique terms to describe the
staff, customers, suppliers, equipments, work situation and so on.It
may take sometimes for a new employee to become familiar with
these terms that are used effortlessly by the existing employees.By
learning the language of the org the members convey their
acceptance of the organizational culture.
• Slogans Slogans can be useful not only to the employees but also
those who deal with the organization to understand and appreciate
its culture.
Example – "Because You're Worth It" - L'Oreal,‘Think Different’-
Apple, ‘We bring good things to Life’-GE, ‘We love to see you
smile’- Mcdonalds, ‘The choice of new generation’- Pepsi, "Just Do
It" - Nike , etc are few slogans that symbolise what the organization
stands for.
17. Types of organisational culture
• According to Goffee and Jones
– Networked culture (family & friend working
together with high tolerance, close contacts and
care about each other and do not criticize )
– Mercenary culture (focuses on strict goals at the
cost of ethics)
– Fragmented culture (individual commitment,
criticising each other, lack of cooperation)
– Communal culture (sense of belonging among all,
leader with clear vision and zeal)
18. Types of organisational culture
• According to Handy
– Power culture - The closer you are to the spider (centre), the
more influence you have (power to control-resources, enjoying
authority, low morale, high turnover ratio)
– Role culture - like beams or pillars in building No personal
power, only expert power will be tolerated (Position (post),
formal, senior post, bound with rules & regulation)
– Task culture - like importance of intersect of strands in
badminton racket it is a team culture, where the outcome of
the team’s work takes precedence over individual objectives
(job, work , project)
– Person culture - like Consultants – both within organisations
and freelance workers – and architects’ partnerships often have
this person-orientation (revolve around the person)
19. Types of organisational culture
• According to Cameron and Quinn
– Control (hierarchy) well-defined and formal, usually with
strict protocols, rules, regulations and policies to ensure
order, efficiency and consistency
– Compete (market) highly ambitious, competitive and
confident in nature but high chance of work stress or
employee burnout
– Collaborate (clan) well-defined and formal, usually with
strict protocols, rules, regulations and policies to ensure
order, efficiency and consistency, result is synergy
– Create (adhocracy) innovation and creative new ways
employees will find in solving problems
20.
21. Impact
1. Objective setting
2. Work Ethics
3. Motivation
Pattern
4. Organisational
Process
On
Image 1. Long-term
economic
performance
2. Determine
success or failures
3. Strong financial
performance
4. Enhance
performance of the
organisation
On
Perfor-
mance
22. Roles/functions
• Gives a Sense of Identity to workforce
• Helps to Generate Commitment amongst
Employees
• Helps to Create Healthy Work Relationship
• Helps to Understand Roles & Responsibilities
• Build Brand Image of the Organisation
23. Issues in Organisational Culture
• Maintaining the Org. Culture (require
continuous committed actions)
• Reinforcing Org. Culture (one should not be
diverted from core values)
• Involvement of All the Employees (all must
embrace the culture)
• Change in Culture (change must be
communicated & resistance to it must be
tackled in positive way)