ORGANIZATIONAL CULTURE

By prof. Dr. Gagan Kumar Gouda

COMPONENTS Artefacts – total physical & socially constructed

environmentMaterial objects : logos and mission statementsCorporate architecture and corporate identityLanguageMetaphorStoriesMythsCeremonies, rites, ritualsnorms of behaviorSymbolsheroes

Beliefs, values and attitudesBasic assumptions –taken for granted solution to an

identifiable problem

SOURCES OF ORGANIZATIONAL CULTURE Societal and national culture – HofstedeLeadershipNature of the business

DOMINANT CULTURE DOMINANT CULTURE

Expresses the core values that are shared by a majority of

the organisation’s members.

SUBCULTURE SUBCULTURE

Minicultures within an organization typically defined

by departments, designations and geographical separation.

CAUSES OF SUBCULTURES

Differential interactionShared experiencesSimilar personal characteristicsCohesion

TYPES OF SUBCULTURES

Enhancing subcultureOrthogonal subcultureCounterculture

ESPOUSED CULTURE AND CULTURE-IN-PRACTICE

Desired stateActual culture

Organizational culture appears confused and contradictory.

CULTURE AS A LIABILITY CULTURE AS A LIABILITY Barrier to change – changing environmentBarrier 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 OF FUNCTIONS OF ORGANIZATIONAL CULTURE ORGANIZATIONAL 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. InformalIndividual vs. collectiveFixed vs. variableSerial v. randomInvestiture vs. divestiture

SOCIALIZATION PROCESS SOCIALIZATION 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 CULTURE HOW 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 symbolsLanguage

MATCHING PEOPLE WITH CULTURE MATCHING PEOPLE WITH CULTURE Organizations now attempt to select new members

who fit well with the organization's cultureSociability – a measure of friendlinessSolidarity – 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

Communal

High

Low

Low High

Solidarity

Soc

iab

ilit

y

MANAGING MANAGING ORGANIZATIONAL CULTURE ORGANIZATIONAL 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 cultureGap analysis and modification

POINTS TO BE NOTED FOR CHANGE

Make the crisis more visibleNew leader to introduce his new vision quickly

Communication of the new valuesState 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-organizationJob 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