MOD-3 MOD-3

Organizational culture and change

Syllabus overviewSyllabus overview

Corporate culture

Types of culture, importance

Nature

Formal & informal components of org culture

Functions

Creating & sustaining culture

Designing strategy for cultural change- trans global & cross cultural contents

Researches on cultural differences in org

Org culture & leadership

Emerging trends in org culture

Organization cultureOrganization culture

Culture is social principle, goals or standards held by members of an organization, individually orcollectively.

Organization culture is a set of basic assumptions , values , morals and Norms that guide and direct anindividual behave in specified way.

Organizational culture is similar to, say, regional culture. The same person in different organizations (orparts of the same organization) would act in different ways.

Organizational culture can loosely be defined as the shared assumptions, beliefs, and ("normal behaviors" )norms of a group.

These are powerful influences on the way people live and act, and they define what is" normal“ To a largedegree, what we do is determined by our culture.

Corporate cultureCorporate culture

Corporate culture refers to a system of shared meaning held by members that distinguishes the organizationfrom other organizations.

Edgar schein, defines org culture as a “ pattern of basic assumption-invented, discovered or developed by agiven group as it learns to cope with its problems of external adaptation and internal integration-that hasworked well enough to be considered valuable and therefore, to be taught to new members as the correct wayto perceive, think, and feel in relation to those problems”

Types of cultureTypes of culture

Mechanistic and organic culture

Dominant and subcultures

Strong vs. weak cultures

Authoritarian and participative cultures

Mechanistic cultureMechanistic culture

The mechanistic culture is characterized by the values of bureaucracy and feudalism.

Organizational work is conceived as a system of narrow specialism and people think of their careersmainly within these specialism.

Authority is through of as flowing down from the top of the organization down to the lower levels andcommunication flows through prescribed channels.

There is a great deal of departmental loyalty and interdepartmental animosity.

This sort of culture resists change and innovation

Organic cultureOrganic culture

Organic culture is characterized by formal hierarchy of authority, departmental boundaries, formal rulesand regulations and prescribed channels of communications.

There is great deal of emphasis on task accomplishment, team work, and free flow of communication-formal and informal.

In the problem situations, the persons with expertise may wield far more influence than the formal boss.

There is a widespread understanding within the staff, or the problems, threats and opportunities the orgis facing and there is willingness and preparedness to take appropriate roles to solve the problems.

The culture stresses flexibility, consultation, change and innovation

Dominant cultureDominant culture

A dominant culture expresses the core values that are shared by a majority of the organizationsmembers.

When we talk about an organizations culture, we are referring to its dominant culture.

Subculture Subculture

Subcultures tend to develop in large org to reflect common problems, situations or experiences thatmembers face.

These subcultures are likely to be defined by department designations and geographical separation.

E.g. purchasing department can have a subculture that is uniquely shared by members of thatdepartment.

It will include the core values of the dominant culture plus additional values unique to members of thepurchasing department.

Strong culture Vs weak cultureStrong culture Vs weak culture

Strong cultures have a greater impact on employees behavior and are more directly related to reduceturnover.

In a strong culture, the organizations core values are both intensely held and widely shared

The more members who accept the core values and the greater their commitment to those values are, thestronger the culture is.

Strong culture will have a great influence on the behavior of its members because the high degree ofsharedness and intensity creates an internal climate of high behavioral control.

Specific result of strong culture should be lower employee turnover.

Strong culture demonstrates high agreement among members about what the organization stands for.

Such unanimity of purpose builds cohesiveness, loyalty and organizational commitment

Authoritarian cultureAuthoritarian culture

In authoritarian culture power is concentrated on the leader and obedience to orders and discipline arestressed

Any disobedience is punished severely to set an example to others.

The basic assumption is that the leader knows what is good for the org and the one always acts in itsinterests.

Participative cultureParticipative culture

The participative culture premised on the notion that people are more committed to the decisions that areparticipatively made than to those which are imposed on them.

Group problem solving leads to better decisions because several new points and information are sharedduring discussions.

Participative culture tend to emerge where most org members are professional or see themselves asequals.

Nature of cultureNature of culture

Innovation and risk taking: the degree to which employees are encouraged to be innovative and take

risks.

Attention to detail: the degree to which employees are expected to exhibit precision, analysis, and

attention to detail.

Outcome orientation: the degree to which management focuses on results or outcomes rather than on the

techniques and processes used to achieve those outcomes.

People orientation: the degree to which management decisions taken into consideration the effect of

outcomes on people within the organization

Team orientation: the degree to which work activities are organized around teams rather than individuals

Aggressiveness: the degree to which people are aggressive and competitive rather than easy-going

Stability: the degree to which organizational activities emphasize maintaining the status quo in contrast to

growth

Formal and informal components of cultureFormal and informal components of culture

Observed behavior regularities: when org participants interact with one another, they use common

language, terminology and rituals related to deference and demeanor.

Norms: standards of behavior exist, including guidelines on how much work to do, which in many org

come down to ‘do not do too much; do not do too little’

Dominant values: there are major values that org advocates and expects the participants to share. Typical

e.g. high product quality , low absenteeism, and high efficiency.

Rules: there are strict guidelines related to getting along in the org. newcomers must learn those rules in

order to be accepted as full-fledged members of the group.

Org climate: the way participants interact and the way members of the org conduct themselves with

customer or other outsiders.

Components given by johnsonComponents given by johnson

The paradigm: what the org is about; what it does; its mission; its values.

Control systems: the processes in place to monitor what is going on, role cultures would have vast

rulebooks.

Org structures: reporting lines, hierarchies, and the way that work flows through the business

Power structures: who makes the decisions, how widely the power is spread, and on what is the power

based?

Symbols: org logos and designs and extend to symbols of power such as parking spaces and executive

washrooms

Ritual and routines: management meetings, board reports

Functions of cultureFunctions of culture

Culture performs a no of functions.

It has a boundary defining roles.

It conveys a sense of identity for org members.

Culture facilitates the generation of commitment to something larger than one’s individual self-

interest.

It enhances the stability of the social system.

Culture serves as a sense making and control mechanism that guides and shapes the attitudes and

behavior of employees

Creating and sustaining and managing cultureCreating and sustaining and managing culture

Creating culture: an org current customs, traditions and general way of doing things are largely due to

what it has done before and the degree of success it has had with those endeavors.

Culture creation occurs in 3 ways

Founders hire and keep only employees who think and feel the same way they do.

The indoctrinate and socialize these employees to their way of thinking and feeling.

The founders own behavior acts as a role model that encourages employees to identify with them

and thereby internalize their beliefs, values and assumptions.

Designing strategy for cultural changeDesigning strategy for cultural change

If culture is so stable, why and how does it ever change?

External events such as shifts in market conditions, new technology, altered govt policies and many otherfactors change overtime, necessitating changes in an org mode of doing business and hence its culture.

The five approaches/Methods to change culture . They are:

Change reward system:

Add new members

Implement culture shock: cut in profits, dismissal of top boss.

Change of top management

Involve members: participative mechanisms are successful

\\

Cross cultural contentsCross cultural contents

With the advent of technology and the global village making its mark, the no of business travelers

from and to different countries has increased multifold in the past last 15 years.

This has brought in need to understand the various cultures of the countries .

Business relationships often suffer because we fail to understand the psychology and behavior of that

nation.

Each cultural world operates according to its own internal dynamic, its own principles and its own

laws.

Even dimensions of time and space unique to each culture.

Organizational culture and leadershipOrganizational culture and leadership

Leadership, as defined by most dictionaries, means "to go before, or with, to show the way; to induce."

Every organization needs a leader (and preferably several leaders) to "show the way" to others as theorganization strives to define and achieve its goals.

Whether these goals are entrepreneurial or humanitarian — or both — the leader's work is to instill a sense ofpurpose and passion to the work that the organization undertakes.

Identifying, developing and sustaining leadership in your organization must be one of your strategic

objectives.

Without leaders at every level of your organization, your organization may well under-perform.

It may miss strategic opportunities, innovation, underutilize your employees, and fall short of its goals

in customer service, quality, productivity, and profitability.

Emerging trends in org cultureEmerging trends in org culture

Mission and Vision Statement Analysis

Strategic Planning

Reward and Recognition

Change Management

Leadership

Team Building

Facilitation

End of module-3End of module-3

Thank You