Organizational Culture

1. Organizational Culture Organizational Behaviour Prof. Pratik Joshi Thanks to EjazKalwat and Group

2. Meaning & Definitions • Organizational culture is the collective behavior of humans that are part of an organization, it is also formed by the organization values, visions, norms, working language, systems, and symbols, it includes beliefs and habits. • Organizational culture refers to culture in any type of organization be it school, university, not-for-profit groups, government agencies or business entities. In business, terms such as corporate culture and company culture are sometimes used to refer to a similar concept.

3. Formal components of organizational culture

4. Characteristics of Organizational Culture • Individual Initiative • Risk Tolerance • Direction • Integration • Management Support • Control • Identity • Reward System • Communication Patterns

5. Functions of culture • The Organization is recognized by its culture • Organization culture makes the boundary • Organization culture provides the facilities for self satisfaction • The Culture of an organization provides its stability • Employees get an opportunity to set the standards of performance • Organization culture acts as a motivator • The attitude and behavior of the employees are directed towards the achievement of goals through a sound culture

6. Importance of Organizational Culture • It focuses attention on the human side of organizational Life • It Helps people to work together toward desired outcomes • It Encourages the View that relationship between organization & environment is perceived under OC • It contributes significantly to the organization brand and image • Organizational culture creates energy and momentum

7. Link between organizational culture and formalization 1) Selection and hiring of members Organizational Culture • Organizational effectiveness • Production • Quality • Efficiency • Flexibility • Satisfaction • Competitiveness • Development • survival • Environmental factors • Social norms • Educational attainment • Political beliefs • National events and history • 2) Managerial Functions • Planning • Organizing • Leading • Controlling • 3) Organizational Characteristics • Behaviour • Structure • Process feedback 4) Removal of Deviate members

8. National Culture • History and Culture • Organizational Culture vs. National Culture

9. Types of Culture • Market Culture • Adhocracy • Clan Culture • Hierarchical Culture

10. How does culture starts and sustained • Starting of culture • Establishing views • Creating vision • Operationalizing values and vision • Socialization of employees • Sustaining of culture • Practices • Customs • Beliefs • values

11. How Employee Learns Culture • Artifacts • Stories, Histories, Myths • Rituals, Rites, Celebration • Heroes • Symbols and Symbolic Action • Beliefs, Assumption and Mental Models • Attitudes • Rules, Norms, Ethical codes and value

12. Levels of Organization Culture • Observable Artifacts • Organizational Heroes • Ceremonies and Rites • Stories • Cultural Symbols • Shared Values • Common Assumption

13. Levels of manifestations of culture

14. Strong Culture • Advantages of strong organizational culture • Attract high level talent • Help to keep top level talent • Energy and momentum • Alter the employee’s view of work • Help to make everyone more efficient and successful • Disadvantages of strong organizational culture • Innovation decreases because of rigidity • Complexity of rules and regulations, frustration

15. Weak culture • Advantages • Encourages innovation • Can consist management informing plan according to situation • Increases flexibility • Increases moral through participative management • Disadvantages • Process is more important than purpose • Authority is more important than service • Form is more important than reality • Precedence is more important than adaptability

16. Implications of organizational culture • Freedom • Equality • Security • Opportunity

17. Sub-culture • Development of sub-culture • Functions of sub-culture

18. Changing culture of organization • Reasons for changing organizational culture • Nature of workforce • More cultural diversity • Increase in professionals • Many new entrants with inadequate skills • Technology • Faster and cheaper computers • New mobile communication devices • Deciphering of the human genetic code • Economic shocks • Raise and fall of dot com stocks • Decline in the value of euro • Collapse of Enron corporation • Competition • Global competitors • Mergers and consolidations • Growth of e-commerce • Social trends • Internet chat rooms • Retirement of baby boomers • Increased interest in urban living • World politics • Escalation of hostilities in the middle east • Opening markets in china • The war on terrorism following 09-11-01

19. Changing culture of organization • Creating culture of empowerment • Listen to the employee’s ideas • Demonstrate trust in employees • Keep employees informed • Help employees balance work and personnel demands • Offer opportunities • Foster open communication • Don’t sugarcoat bad news • Encourage reasonable risk • Foster autonomy • Praise successes • Link rewards to organizational goals

20. Changing culture of organization • Ethical conduct • Creating an ethical organizational culture • Be a visible role model • Communicate ethical expectations • Provide ethical training • Visibility reward ethical acts and punish unethical ones • Provide proactive mechanism • Innovation • Where innovation occurs • Psychological safety • Psychological freedom • Empathy • Where ideas are accepted and advanced • Leaders have understanding of psychology of expression and counter block

21. Changing culture of organization • Customer responsive culture • Key variables for shaping customer responsive culture • Type of employees themselves • Low formalization • Use of empowerment • Good listening skills • Role clarity • Organizational citizenship behavior • Spirituality • Seven principles of spirituality on work place • Creativity • Communication • Respect • Vision • Partnership • Energy • Flexibility

22. Changing culture of organization • Maintaining organizational culture Start Careful selection of entry level candidates Deselect Humility – including Experiences promote openness towards accepting organizational norms and values In-the-trenches training leads to mastery of a core discipline Consistent role model Rewards and control systems are meticulously refined to reinforce behavior that is deemed vital to success in the market place Reinforcing Adherence to values enables the reconciliation of personal sacrifices