Building Organizational Culture

Pankaj Kumar
IIM, Lucknow
Issues of Concern
• Meaning of Organizational Culture
• Measuring Organizational Culture
• Building Organizational Culture
Do you really know your
Organization’s Culture ?
* What 10 words would you use to describe
your company?

* Around here what is really important?

* Around here who gets promoted?

* Around here what behaviours get rewarded?

* Around here who fits and who does not?

 The Meaning & Content
• No Universal Definition.
• Various Conceptual Frameworks.
• Dimensions of OC.
Schein (1985)
“ …a pattern of basic assumptions-invented,
discovered or developed by a given group as
it learns to cope with its problems of external
adaptation and internal integration-that has
worked well enough to be considered valid
and, therefore, to be taught to new members
as the correct way to perceive, think and feel
in relation to those problems.”
Pareek (1995)

“ … a cumulative preference of some states of

life over others (values), the predispositions
concerning responses towards several
significant issues and phenomena (attitudes),
organized ways of filling time in relation to
certain affairs (rituals), and ways of
promoting desired behaviours and preventing
undesirable ones (sanctions).”
 Vision

Mission

Goals & Objectives

Strategies

Structure

Culture

Behaviour

Performance
Artifacts & creation
Technology Visible but often not
Arts decipherable
Visible & Audible
Behavior Patterns

Values
Greater levels of
awareness
Basic Assumption
Relationship to environment
Nature of reality Taken for granted
Time & Space Invisible
Nature of Human activities preconscious
Nature of Human Relationship

Levels of Culture and its interaction

Developing OC involves
* Developing a strong corporate identity

* Development of important values

* Building healthy traditions

* Developing consistent management practices

Cultural aspect of HRD
concerned with
* Development of Appropriate OC

* Creating conducive Org. Climate

* Improving Communication

* Evolving effective reward system

Strong Corporate Identity
develops when employees have a sense of belonging,
and feel proud of working with the organization,
which develops as a result of interaction of
employees with the organization.

* Developing an attractive Induction Booklet

* Films on success experiences in the organization
* Company newsletters
* Mobility of People
Developing important values
Values of excellence and human consideration
develop only by demonstrating these values in
action.

* Surveys of Values and differences b/w espoused

v/s practiced values
* Special value orientation programmes
* Examining the various systems operating in the
organization
* Special OD intervention in Cooperation and
Collaboration
Building Healthy traditions &
practices
Traditions are built in org. on the basis of important
Functional rituals or celebrations

* Induction programme for new entrant

* Promotions as transition
* Ritual associated with “old age” and retirement
* Exceptional behaviour
* Celebration of special individual & important
organizational days
Types
* Autocratic or feudal culture is characterized by
centralized power concentrated in a few persons,
and observation of proper protocol in relation to
the person/s in power.
* Bureaucratic culture is characterized by primacy
of procedures and rules, hierarchy and distant
and impersonal relationship.
* Technocratic culture emphasizes technical
/ professional standards and improvement.
* Entrepreneurial culture in concerned about
achievement of results and providing excellent
services to the customers.
Profile of OC
Cultures Focus Climate Ethos

Autocratic/ Proper Dependency+ All opposite

Feudal Protocol Affiliation values of
OCTAPACE
Bureaucratic Rules & Control + safe playing,
Regulations Dependency inertia, conflict
& closed
Technocratic Perfection Expert power proaction,
+ Extension autonomy,
collaboration,
experimentation
Entrepreneurial/ Results, Achievement OCTAPACE
Democratic/ Customers +Extension
Organic
 ACQUIRE
Basic new knowledge, facts, skills,
process, concepts, values and beliefs etc..

TEST EMBED
Implications of New knowledge through
concepts in new reflection and practice
situations
INTEGRATE
New facts into existing concepts and
generalization

Learning Culture Model

Building Culture
• Recruitment and selection.
• Socialization.
• Performance Evaluation.
• Leadership. - Employee Motivation & Decision Making
• Compensation Packages.
• Grievance Handling.
• Conflicts & Differences handling.
• Discipline & Morale
• Career Planing and Development
 Measuring Organizational Culture
• Quantitative
• Questionnaire & Survey

• Qualitative
• Depth Interview
• Clinical Intervention
• Analyzing Visual Artifacts.
• Analyzing stories, rituals and myths.
• Participant Observation.
Changing Culture
# Understand the environmental & other forces that
will influence your future strategy

# Determine what are the core values that have been

fundamental to your business identity, core purpose
& success and that you will not compromise

# Create a shared vision of what the company needs

to become

# Assess the existing culture & determine what

elements of culture need to change
# Determine what changes need to occur to
implement strategy and address the gaps

# Define the role of senior management in leading

the culture change

# Craft an implementation plan with targets of

intervention, time lines, milestones &
accountabilities

# Communicate the need for change and plan for

change and create motivation and buy in among key
stake holders
# Identify obstacles and sources of resistance and
develop strategies for getting around them

# Institutionalize, model and reinforce the changes in

culture

# Continually reassess the organization’s culture and

establish a norm of continuous learning and
transformation
Organizational Climate & Ethos
# Achievement (concern for excellence)
# Expert Power (concern for impact through
expertise)
# Extension (concern for relevance to larger goals
and entities)
# Control (concern for orderliness)
# Affiliation (concern for maintaining good personal
relations)
# Dependency (concern for approval & maintenance
of hierarchical order)

* OCTAPACE
Constituents of OC
Determinants Dimensions
- Societal Culture -Visual Artifacts
- Shared learning from - Values
shared history
- Leadership - Rituals
- Consistent Mgt. practices - Stories & Myths
- Structural Stability - Assumptions
Consequences
- Performance
- Behaviour