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Organizational Culture

Organizational Culture

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Organizational Culture

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  1. Organizational Culture

  2. Introduction • Organizational Culture is the totality of beliefs , customs, traditions and values shared by the members of the organization. • It is important to consider culture while managing change in the organization.

  3. Culture’s Overall Function Culture is the social glue that helps hold an organization together by providing appropriate standards for what employees should say or do.

  4. Key Characteristics of Corporate Culture • Innovation and Risk Taking • Attention to Detail • Outcome Orientation • People Orientation • Team Orientation • Aggressiveness • Stability

  5. Importance of Organizational Culture • Talent-attractor • Talent-retainer • Engages people • Creates energy and momentum • Changes the view of “work” • Creates greater synergy • Makes everyone more successful

  6. The Culture Iceberg: 90% hidden Shorter, easier to change Observable symbols, ceremonies, slogans, stories, dress, physical settings, decoration, etc. Level of conscious awareness Values, beliefs, norms, customs, nonverbal behavior, etc. Long term, difficult to change

  7. Organizational Culture v/s National Culture • National cultural values are learned early, held deeply and change slowly over the course of generations. • Organizational culture, on the other hand, is comprised of broad guidelines which are rooted in organizational practices. • A nation’s culture is similar to that of an organization as it is comprised of the symbols, values, rituals, and traditions of the people living in a particular region. • Cultures usually differ in relationships between the individual and society, ways of dealing with conflict, relationships to authority, and conceptions of class and gender. All of these things are comparable to organizational culture, just on a grander scale.

  8. Creating and Sustaining Organizational Culture

  9. Creating Corporate Culture • The ultimate source of an organization’s culture is its founders. • Culture creation occurs in three ways: • Employees hire and keep employees with same thinking • They indoctrinate and socialize the employees with the organization’s thinking • The founder’s behavior acts as a role model for the employees • With the organizational success, the founder’s personality is embedded in the organizational culture.

  10. How Organization Cultures Form Robbins, 1989

  11. Sustaining Organizational Culture • Three forces play a particularly important part in sustaining a culture: • Selection practices • Actions of top management • Socialization methods

  12. Selection • Explicit goal – identifying and hiring individuals having knowledge, skills and abilities to perform the jobs successfully. • Implicit - Individuals having values consistent with those of the organization are selected as per the decision maker’s judgements.

  13. Top Management • The actions of top management establishes the norms for the organization as to: • Whether risk taking is desirable • How much freedom managers should give to their subordinates • What actions will pay off in terms of pay rises, promotions and other rewards, etc.

  14. Socialization • New employees are not familiar with the organizational culture and are potentially likely to disturb the existing culture. • The process through which the employees are proselytized about the customs and traditions of the organization is known as socialization. • It is the process of adaptation by which new employees are to understand the basic values and norms for becoming ‘accepted’ members of the organization.

  15. Socialization Process • Socialization is a process made up of three stages: • Pre-arrival - All the learning occurring before a new member joins. • Encounter - The new employee sees what the organization is really like and confronts the possibility that expectations and reality may diverge. • Metamorphosis - The relatively long-lasting changes take place. The new employee masters the skills required for the job, successfully performs the new roles, and makes the adjustments to the work group’s values and norms.

  16. Socialization Model

  17. Stories Rituals How Employees Learn Culture/ How it is “reinforced” Language Material Symbols Chapter 17

  18. How Employees Learn Culture • Stories – Depicting the past events of the organization. Some organizations actually try to manage this element of culture learning. • Rituals – Repetitive sequential activities reinforcing the values of the organization. • Material Symbols – Conveying social equality, desired organizational behavior, etc. by the top management. • Language – Acceptance and preservation of culture.

  19. Conclusion • Culture adapts to diverse circumstances. • Managers need to understand the nature and role of culture. • Managers must understand the importance of culture for organizational change. • Corporate culture also impacts the day-to-day decision-making of the organization.