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ORGANIZATIONAL
CULTURE
By prof. Dr. Gagan Kumar Gouda
COMPONENTS
Artefacts – total physical & socially constructed
environment
Material objects : logos and mission statements
Corporate architecture and corporate identity
Language
Metaphor
Stories
Myths
Ceremonies, rites, rituals
norms of behavior
Symbols
heroes
Beliefs, values and attitudes
Basic assumptions –taken for granted solution to an
identifiable problem
SOURCES OF
ORGANIZATIONAL CULTURE
Societal and national culture – Hofstede
Leadership
Nature of the business
DOMINANT CULTUREDOMINANT CULTURE
Expresses the core values
that are shared by a majority of
the organisation’s members.
SUBCULTURESUBCULTURE
Minicultures within
an organization typically defined
by departments, designations
and geographical separation.
CAUSES OF SUBCULTURES
Differential interaction
Shared experiences
Similar personal characteristics
Cohesion
TYPES OF SUBCULTURES
Enhancing subculture
Orthogonal subculture
Counterculture
ESPOUSED CULTURE AND CULTURE-
IN-PRACTICE
Desired state
Actual culture
Organizational culture appears confused and
contradictory.
CULTURE AS A LIABILITYCULTURE AS A LIABILITY
Barrier to change – changing environment
Barrier to diversity – when they effectively
eliminate those unique strengths that people of
different backgrounds bring to the organization,
when they support institutional bias or become
insensitive to people who are different.
Barrier to mergers and acquisitions
FUNCTIONS OFFUNCTIONS OF
ORGANIZATIONAL CULTUREORGANIZATIONAL CULTURE
Has a boundary defining role.
Conveys a sense of identity for the members of
the organization.
Facilitates the generation of commitment to
something larger than the individual’s self
interest.
Enhances the social system stability.
Serves as a sense-making and control mechanism
that guides and shapes the attitudes and
behaviour of the employees.
As organizations have widened
spans of control, flattened structures,
introduced teams, reduced formalization
and empowered employees,
the shared meaning provided by
a strong culture ensures that
everyone is pointed in the same direction.
KEEPING A CULTURE ALIVEKEEPING A CULTURE ALIVE
Selection process – personality-organization
fit
The actions of top management – through
what they say and how they behave, senior
executives establish norms that filter down
through the organization.
Socialization methods – the process that
adapts employees to the organization's culture
SOCIALIZATIONSOCIALIZATIONPre-arrival – The period of learning in the
socialization process that occurs before a new
employee joins the organization
Encounter – 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 – The stage in the socialization
process in which a new employee changes and
adjusts to the job, work, group and organization
ENTRY SOCIALIZATION OPTIONS
Formal vs. Informal
Individual vs. collective
Fixed vs. variable
Serial v. random
Investiture vs. divestiture
SOCIALIZATION PROCESSSOCIALIZATION PROCESS
Pre-arrival Encounter Metamorphosis
Productivity
Commitment
Turnover
HOW CULTURES FORMHOW CULTURES FORM
Philosophy of
organization's
founders
Selection
criteria
Top
management
Organizational
culture
Socialization
HOW EMPLOYEES LEARN CULTUREHOW EMPLOYEES LEARN CULTURE
Stories – about the founders, rule breaking, rags-
to-riches success etc.
Rituals –
- Repetitive sequences of activities that
express and reinforce the key values of the
organization which goal are most important
and which are expendable
Material symbols
Language
MATCHING PEOPLE WITH CULTUREMATCHING PEOPLE WITH CULTURE
Organizations now attempt to select new members
who fit well with the organization's culture
Sociability – a measure of friendliness
Solidarity – a measure of task orientation
Networked culture –
High on sociability but low on solidarity.
Views members as family and friends.
Negativity is that poor performance and creation of
political cliques will be tolerated.
Mercenary culture –
Low on sociability but high on solidarity.
Are goal focused – people are intense and determined
to meet goals.
Not just winning – but destroying the competitor.
Downside is that it can lead to almost inhumane
treatment of people who are perceived as low
performers.
Fragmented culture –
- Low on sociability and low on solidarity
- Made up of individualists
- Little or no identification with the
organization
- Employees are judged solely on their
productivity and the quality of their work
- Excessive critiquing of others and an
absence of collegiality
Communal culture –
- High on sociability and high on solidarity
- Values both friendship and performance
- Leaders are inspirational and charismatic
with a clear vision of the organization's
future
- They often consume one’s total life.
- Leaders look for creating disciples rather
than followers
Networked
Fragmented Mercenary
CommunalHigh
Low
Low High
Solidarity
Sociability
MANAGINGMANAGING
ORGANIZATIONAL CULTUREORGANIZATIONAL CULTURE
A dramatic crisis – a shock that undermines the
status quo questioning current practices and opens
the door toward accepting a different set of values
that can respond better to the crisis.
Leadership turnover
Life-cycle stage – formation to growth and from
maturity to decline
Age of organization
Size of the organization
Strength of the current culture
CULTURE CHANGE
Unfreezing the current culture
Culture analysis
 Background of founders
 Past crises or critical events
 Response to the deviants
Values in new culture
Gap analysis and modification
POINTS TO BE NOTED FOR CHANGE
Make the crisis more visible
New leader to introduce his new vision quickly
Communication of the new values
State of business and competitors, outlook for future etc.
What the organization will become and how to achieve it
Progress of organization in the areas that are identified
as keys to the realization of vision
May be a need for re-organization
Job rotation in case of strong subculture
Power for those who accept or espouse the new
culture
Change in selection and socialization process and
evaluation and reward system

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ORGANIZATIONAL culture

  • 2. COMPONENTS Artefacts – total physical & socially constructed environment Material objects : logos and mission statements Corporate architecture and corporate identity Language Metaphor Stories Myths Ceremonies, rites, rituals norms of behavior Symbols heroes Beliefs, values and attitudes Basic assumptions –taken for granted solution to an identifiable problem
  • 3. SOURCES OF ORGANIZATIONAL CULTURE Societal and national culture – Hofstede Leadership Nature of the business
  • 4. DOMINANT CULTUREDOMINANT CULTURE Expresses the core values that are shared by a majority of the organisation’s members.
  • 5. SUBCULTURESUBCULTURE Minicultures within an organization typically defined by departments, designations and geographical separation.
  • 6. CAUSES OF SUBCULTURES Differential interaction Shared experiences Similar personal characteristics Cohesion
  • 7. TYPES OF SUBCULTURES Enhancing subculture Orthogonal subculture Counterculture
  • 8. ESPOUSED CULTURE AND CULTURE- IN-PRACTICE Desired state Actual culture Organizational culture appears confused and contradictory.
  • 9. CULTURE AS A LIABILITYCULTURE AS A LIABILITY Barrier to change – changing environment Barrier to diversity – when they effectively eliminate those unique strengths that people of different backgrounds bring to the organization, when they support institutional bias or become insensitive to people who are different. Barrier to mergers and acquisitions
  • 10. FUNCTIONS OFFUNCTIONS OF ORGANIZATIONAL CULTUREORGANIZATIONAL CULTURE Has a boundary defining role. Conveys a sense of identity for the members of the organization. Facilitates the generation of commitment to something larger than the individual’s self interest. Enhances the social system stability. Serves as a sense-making and control mechanism that guides and shapes the attitudes and behaviour of the employees.
  • 11. As organizations have widened spans of control, flattened structures, introduced teams, reduced formalization and empowered employees, the shared meaning provided by a strong culture ensures that everyone is pointed in the same direction.
  • 12. KEEPING A CULTURE ALIVEKEEPING A CULTURE ALIVE Selection process – personality-organization fit The actions of top management – through what they say and how they behave, senior executives establish norms that filter down through the organization. Socialization methods – the process that adapts employees to the organization's culture
  • 13. SOCIALIZATIONSOCIALIZATIONPre-arrival – The period of learning in the socialization process that occurs before a new employee joins the organization Encounter – 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 – The stage in the socialization process in which a new employee changes and adjusts to the job, work, group and organization
  • 14. ENTRY SOCIALIZATION OPTIONS Formal vs. Informal Individual vs. collective Fixed vs. variable Serial v. random Investiture vs. divestiture
  • 15. SOCIALIZATION PROCESSSOCIALIZATION PROCESS Pre-arrival Encounter Metamorphosis Productivity Commitment Turnover
  • 16. HOW CULTURES FORMHOW CULTURES FORM Philosophy of organization's founders Selection criteria Top management Organizational culture Socialization
  • 17. HOW EMPLOYEES LEARN CULTUREHOW EMPLOYEES LEARN CULTURE Stories – about the founders, rule breaking, rags- to-riches success etc. Rituals – - Repetitive sequences of activities that express and reinforce the key values of the organization which goal are most important and which are expendable Material symbols Language
  • 18. MATCHING PEOPLE WITH CULTUREMATCHING PEOPLE WITH CULTURE Organizations now attempt to select new members who fit well with the organization's culture Sociability – a measure of friendliness Solidarity – a measure of task orientation
  • 19. Networked culture – High on sociability but low on solidarity. Views members as family and friends. Negativity is that poor performance and creation of political cliques will be tolerated. Mercenary culture – Low on sociability but high on solidarity. Are goal focused – people are intense and determined to meet goals. Not just winning – but destroying the competitor. Downside is that it can lead to almost inhumane treatment of people who are perceived as low performers.
  • 20. Fragmented culture – - Low on sociability and low on solidarity - Made up of individualists - Little or no identification with the organization - Employees are judged solely on their productivity and the quality of their work - Excessive critiquing of others and an absence of collegiality
  • 21. Communal culture – - High on sociability and high on solidarity - Values both friendship and performance - Leaders are inspirational and charismatic with a clear vision of the organization's future - They often consume one’s total life. - Leaders look for creating disciples rather than followers
  • 23. MANAGINGMANAGING ORGANIZATIONAL CULTUREORGANIZATIONAL CULTURE A dramatic crisis – a shock that undermines the status quo questioning current practices and opens the door toward accepting a different set of values that can respond better to the crisis. Leadership turnover Life-cycle stage – formation to growth and from maturity to decline Age of organization Size of the organization Strength of the current culture
  • 24. CULTURE CHANGE Unfreezing the current culture Culture analysis  Background of founders  Past crises or critical events  Response to the deviants Values in new culture Gap analysis and modification
  • 25. POINTS TO BE NOTED FOR CHANGE Make the crisis more visible New leader to introduce his new vision quickly Communication of the new values State of business and competitors, outlook for future etc. What the organization will become and how to achieve it Progress of organization in the areas that are identified as keys to the realization of vision May be a need for re-organization Job rotation in case of strong subculture Power for those who accept or espouse the new culture Change in selection and socialization process and evaluation and reward system