Organizational Culture

Parking Lot innovation

20% of the employee’s time can be utilized for personal Projects.

By

KAMALAKKANNAN G VENKATESAN T

DEPARTMENT OF MANAGEMENT STUDIES PONDICHERRY UNIVERSITY

Organizational Culture Originated in 1940s •organizational climate studies, was prominent during the 1960s and 1970s • •Popularized in early 1980s • •viewed the informal, nonmaterial, interpersonal, moral bases of cooperation and commitment as perhaps more important

Organizational culture became a business phenomenon in the early 1980s, triggered by four seminal books: ♦ Ouchi’s (1981) Theory Z : How American Business Can Meet the Japanese Challenge ♦ Pascale and Athos’s (1982) The Art of Japanese Management : Applications for American Executives ♦ Deal and Kennedy’s (1982) Corporate Cultures : The Rites and Rituals of Corporate Life ♦ Peters and Waterman’s (1982) In Search of Excellence : Lessons from America ’ s Best Run Companies .

A system of shared meaning held by members that distinguishes the organizations.

eliefs and shared understandings that are shared by mem

• • • • • • •

Innovation and Risk Taking Attention to detail Outcome Orientation People Orientation Team Orientation Aggressiveness Stability

Organizational Culture & the Bottom Line- Dr . Kathleen Miller ,

1992

1.an environment where people felt that they were all part of the company team 2. 3.consultants on a weekly basis to address their interpersonal and relationship issues 4. 5.owners committed to spending time on the shop floor each day listening to employees about their vision for the company and how the employees fit into that vision 4.daily communications meetings for discussing their opinions and differences behind closed doors rather than in public

Objective Factors •Innovation and risk taking Perceive •Attention to detailsd Organizati •Outcome orientation onal •People orientation culture •Team orientation as •Aggressiveness •Stability •

Streng th

Performanc e

Hi

Low

Satisfacti on

Dominan t Culture

Subcultu res Core Values

Top Top Management Management Philosophy Philosophy of of Organization’s Organization’s Founders Founders

Selectio Selectio nn Criteria Criteria

Organizational Culture

Socializati Socializati on on

Organization A • Managers must fully document all decisions • Creative decisions, change, and risks are not encouraged. • Extensive rules and regulations exist for all employees. • Productivity is valued over employee morale. • Employees are encouraged to stay within their own department. • Individual effort is encouraged.

Organization B • Management encourages and rewards risk-taking and change. • Employees are encouraged to “ run with ” ideas, and failures are treated as “ learning experiences.” • Employees have few rules and regulations to follow. • Productivity is balanced with treating its people right. • Team members are encouraged to interact with people at all levels and functions. • Many rewards are team based.

Stories Stories

Rituals Rituals

How How Employees Employees Learn Learn Culture/ Culture/ How How we we “reinforce” “reinforce” itit Language Language

Material Material Symbols Symbols

•Barrier to change •Barrier to diversity •Barrier to acquisitions and mergers

Organizational Characteristics – Maintaining High Ethical Standards § High in risk tolerance § Low to moderate in aggressiveness § Focus on means as well as outcomes – •Ethical Culture can be Created by the following Steps § Being a visible role model § Communicating ethical expectations § Providing ethical training § Visibly rewarding ethical acts and punishing unethical ones § Provide Protective Mechanism •

Positive Organizational Culture

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vBuilds on employee strengths vRewards more than it punishes vEmphasizes individual vitality and growth

Case Study 2 Creating Innovative Organizational Culture - Business Week Magazine , 2007 In 3M 1.Recruiting and Retaining Talent 2. 3.Creating a Challenging Environment 4. 5.Knowledge Sharing 6. 7.Rewarding Innovation 8. 9.Mentors, Sponsors and Champions

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