Org Culture

ORGANIZATIONAL CULTURE

INTRODUCTION Pattern of learned behaviors that is shared & passed on among the members of the organization. Comprises of Values, beliefs, norms, rituals language etc. Evolutionary process that has been established, accepted & internalized over a period of time. Organizations differ in their cultures

Characteristics of Organizational Culture Norms: Relates to the standards of the behavior & guidelines on the expected quality & quantum. Adherence is required to preserve the culture of the organization. Innovation & risk taking: Degree to which an employees are encouraged to take risks. Ex In DRL the innovation is considered as key to the success & growth.

Characteristics of Organizational Culture Attention to detail Extent to which employees are expected to develop precision, analysis & attention to detail. Outcome orientation Extend to which organization stresses the outcome rather than the means & process. Over emphasize may encourage unethical behavior.

Characteristics of Organizational Culture People orientation Degree of people participation in the organization Number of facilities to take care of need of employees Ex. Mandatory leave Team orientation Level of importance laid on effective team work Ex problem solving teams

Characteristics of Organizational Culture Observed behavioral regularities Common language, terminology, rituals, symbols etc Dominant values Commonly accepted & adopted values expected to be followed being in the organization Ex High productivity, low absenteeism

Characteristics of Organizational Culture Rules Strict guidelines for employees to adapt to the culture & get adjusted quickly. Philosophy Refers to general policy & guidelines Ex Wipro’s philosophy- Develop leaders within the organization Organizational Climate The overall impression an employee experiences .

Uniformity Of Culture Dominant Culture Represents the core values shared by a majority of members in the organization Guides the day today behavior of the organization. Subculture Represents values & norms held by small minority members in the organization. Tend to develop in large organizations. People belonging to same occupational groups have common problems

Strong Vs Week Culture Depends on how widely the & intensely the core values of the organization are upheld & accepted. Strength of the organization depends on – Sharedness- Refers to the degree to which the core values are accepted & shared by its members. The greater the value of sharedness of the core values the stronger will be the culture of the organization. Shardeness depends uponThe kind of orientation given to the employees at the time of joining. Reward system Induction program

Strong Vs Week Culture Intensity Refers to degree to which the members of the organization are committed towards its core values. Results in strict adherence to core values Strengthens the organizational culture Influenced by the reward system of the organization

Types of culture Market Culture Organizational stability is given importance Focus on interaction with the external environment & gaining competitive advantage. Tends to be an achievement oriented culture Performance is evaluated based on output generated. Directive style of leadership is followed

Types of culture Adhocracy Establishment of informal organization. Away from formal rules & regulation. Flexibility & adaptability to changes Led by charismatic leaders Creative, risk taking managers Employees are growth oriented The performance is judged on the basis of commitment to the values & norms of the organization

Types of culture Clan Culture Emphasizes informal governance & group maintenance. Leadership style shows concern for people Participative decision making Members are directed by the values & norms of the organization Performance is based on the extent to which employees uphold the values Quality of relationship maintained among the members.

Types of culture Hierarchical Culture Conservative style of leadership Employees behavior is judged on the basis of formally established performance criteria. Characterized by formal organizational processes & norms of the organizational culture

Culture & Formalization The degree of standardization of jobs in an organization is referred to as formalization. Characterized by explicit job description, clearly defined work processes, rules etc. Contributes to the consistency in employee behavior. Requires documentation of rules & procedures

Functions of culture Boundary defining Role Values, traditions & rituals Sense of Identity : Enhances employee commitment towards organizational goals. Collective Commitment Common values, assumptions & ideologies upheld by the members. Stability of social System Acts as social bond among the members of the organization Brings uniformity in the behavior of the employees.

Functions of culture Shared meaning & control mechanism Core set of assumptions, values, & norms govern routine activities & employee behavior at work place. Not obeying the norms deprives the members from rewards & promotions. Act as a control mechanism for the benefit of the organization

Beginning of culture in an Organization Founders play an important role The values, assumptions & personal traits of the founders. Factors leading towards dominant culture of the organization A) Selection Understanding cultural fit between a prospective employee & the organization. Effective selection process helps to sustain & maintain organizational culture.

Beginning of culture in an Organization Top management The ideologies & values upheld by the top management, their behavior, actions & speech have influence on maintaining culture. Socialization Formal procedure to educate new employees. Plays important role in molding employees.

How cultures form TOP MNGT. PHILOSPHY OF ORG’S. FOUNDER

SELECTION CRITERIA

O.C.

SOCIALIZATION

Process of Socialization A) Prearrival stage Each employee is treated as an individual with a distinct set of values & principles. Gradual attempt is made to introduce the values, norms & expectations of the organization to the new employee. B) Encounter stage Most critical stage Employee becomes aware of the reality of the workplace The process is successful if there is minimal deviation than what is expected

Process of Socialization Metamorphosis stage. Refers to the actual process of change. Process is complete when the new member internalizes the values & practices & accepts the norms. Feel accepted by his peers & superiors. The stage is successful when the commitment of the employees is enhanced .

Socialization process PREARRIVAL

ENCOUNTER

METAMORPHOSIS

COMMITTMENT

PRODUCTIVITY

TURNOVER

OUTCOMES

Changing organizational culture Guidelines to change the culture Assess existing culture Change agent Introduce alternatives Define a new paradigm Change must be top-down Employee participation Shed the old paradigm Quick transition

How to change an organizational culture CHANGE THE CEO ADD NEW MEMBERS INVOLVE MEMBERS CHANGE THE REWARD SYS. CULTURE SHOCK CHANGE VALUE SYSTEM

CHANGE IN O.C.

Learning Culture Different ways to learn the culture Stories – serves as effective communication tool to guide employee behavior. Rituals & ceremonies Reinforces the core value & objectives of the organization. Helps to communicate the culture of the organization

Learning Culture Material symbols Importance given to the employees by the organization Ex privilege of having chauffer-driven car, office cabin, layout furnishing & other official perks. Language Distinct languages used by the members Helps to strengthen bonds between the members

Microsoft An employee bumps into Bill gates while leaving at 8:00 pm. Bill gates: “Home?” Employee: “I’ve been working for 12 hours!!” Bill Gates: “only working half a day ’’

Infosys Narayanmurthy is also asked for an I-card while entering the campus!!!

The Walt Disney Company Disney employees are asked: 

“Ford makes cars, Sony makes TVs, Microsoft makes Software, what does Disney make?

All respond: 

“Disney makes people Happy!!! ”

McDonald’s People vision: We’re not just a hamburger company serving people; we’re a people company serving hamburgers”

Our People promise: To be the best employer in each community around the world

Nike Nike’s Goal: “to enhance peoples’ lives through sports and fitness” 75 acres sprawling campus equipped with all courts & jogging tracks Employees paid extra for driving to work