ORGANIZATIONAL CULTURE

INTRODUCTION
Pattern of learned behaviors that is shared
& passed on among the members of the
organization.
Comprises of -
Values, beliefs, norms, rituals language
etc.
Evolutionary process that has been
established, accepted & internalized over a
period of time.
Organizations differ in their cultures
 Characteristics of
Organizational Culture
Norms:
Relates to the standards of the behavior &
guidelines on the expected quality &
quantum.
Adherence is required to preserve the
culture of the organization.
Innovation & risk taking:
Degree to which an employees are
encouraged to take risks.
Ex In DRL the innovation is considered as
key to the success & growth.
 Characteristics of
Organizational Culture
Attention to detail
Extent to which employees are expected to
develop precision, analysis & attention to
detail.
Outcome orientation
Extend to which organization stresses the
outcome rather than the means & process.
Over emphasize may encourage unethical
behavior.
 Characteristics of
Organizational Culture
People orientation
Degree of people participation in the
organization
Number of facilities to take care of need of
employees
Ex. Mandatory leave
Team orientation
Level of importance laid on effective team
work
Ex problem solving teams
 Characteristics of
Organizational Culture
Observed behavioral regularities
Common language, terminology,
rituals, symbols etc
Dominant values
Commonly accepted & adopted
values expected to be followed being
in the organization
Ex High productivity, low absenteeism
 Characteristics of
Organizational Culture
Rules
Strict guidelines for employees to adapt to
the culture & get adjusted quickly.
Philosophy
Refers to general policy & guidelines
Ex Wipro’s philosophy- Develop leaders
within the organization
Organizational Climate
The overall impression an employee
experiences .
Uniformity Of Culture

Dominant Culture
Represents the core values shared by a
majority of members in the organization
Guides the day today behavior of the
organization.
Subculture
Represents values & norms held by small
minority members in the organization.
Tend to develop in large organizations.
People belonging to same occupational
groups have common problems
Strong Vs Week Culture
Depends on how widely the & intensely the
core values of the organization are upheld
& accepted.
Strength of the organization depends on –
Sharedness- Refers to the degree to
which the core values are accepted &
shared by its members.
The greater the value of sharedness of the
core values the stronger will be the culture
of the organization.
Shardeness depends upon-
The kind of orientation given to the
employees at the time of joining.
Reward system
Induction program
Strong Vs Week Culture

Intensity
Refers to degree to which the
members of the organization are
committed towards its core values.
Results in strict adherence to core
values
Strengthens the organizational
culture
Influenced by the reward system of
the organization
Types of culture

Market Culture
Organizational stability is given importance
Focus on interaction with the external
environment & gaining competitive
advantage.
Tends to be an achievement oriented
culture
Performance is evaluated based on output
generated.
Directive style of leadership is followed
Types of culture
Adhocracy
Establishment of informal organization.
Away from formal rules & regulation.
Flexibility & adaptability to changes
Led by charismatic leaders
Creative, risk taking managers
Employees are growth oriented
The performance is judged on the basis of
commitment to the values & norms of the
organization
Types of culture
Clan Culture
Emphasizes informal governance & group
maintenance.
Leadership style shows concern for people
Participative decision making
Members are directed by the values &
norms of the organization
Performance is based on the extent to
which employees uphold the values
Quality of relationship maintained among
the members.
Types of culture

Hierarchical Culture
Conservative style of leadership
Employees behavior is judged on the
basis of formally established
performance criteria.
Characterized by formal
organizational processes & norms of
the organizational culture
Culture & Formalization
The degree of standardization of jobs
in an organization is referred to as
formalization.
Characterized by explicit job
description, clearly defined work
processes, rules etc.
Contributes to the consistency in
employee behavior.
Requires documentation of rules &
procedures
Functions of culture
Boundary defining Role
Values, traditions & rituals
Sense of Identity :
Enhances employee commitment towards
organizational goals.
Collective Commitment
Common values, assumptions & ideologies
upheld by the members.
Stability of social System
Acts as social bond among the members of
the organization
Brings uniformity in the behavior of the
employees.
Functions of culture

Shared meaning & control

mechanism
Core set of assumptions, values, &
norms govern routine activities &
employee behavior at work place.
Not obeying the norms deprives the
members from rewards & promotions.
Act as a control mechanism for the
benefit of the organization
Beginning of culture in an
Organization
Founders play an important role
The values, assumptions & personal traits
of the founders.
Factors leading towards dominant culture
of the organization
A) Selection
Understanding cultural fit between a
prospective employee & the organization.
Effective selection process helps to sustain
& maintain organizational culture.
Beginning of culture in an
Organization
Top management
The ideologies & values upheld by
the top management, their behavior,
actions & speech have influence on
maintaining culture.
Socialization
Formal procedure to educate new
employees.
Plays important role in molding
employees.
 How cultures form

TOP MNGT.

PHILOSPHY OF ORG’S. SELECTION

FOUNDER CRITERIA O.C.

SOCIALIZATION
Process of Socialization
A) Prearrival stage
Each employee is treated as an individual
with a distinct set of values & principles.
Gradual attempt is made to introduce the
values, norms & expectations of the
organization to the new employee.
B) Encounter stage
Most critical stage
Employee becomes aware of the reality of
the workplace The process is successful if
there is minimal deviation than what is
expected
Process of Socialization
Metamorphosis stage.
Refers to the actual process of
change.
Process is complete when the new
member internalizes the values &
practices & accepts the norms.
Feel accepted by his peers &
superiors.
The stage is successful when the
commitment of the employees is
enhanced .
 Socialization
process

PREARRIVAL ENCOUNTER METAMORPHOSIS

COMMITTMENT

PRODUCTIVITY TURNOVER

OUTCOMES
Changing organizational culture

Guidelines to change the culture

Assess existing culture
Change agent
Introduce alternatives
Define a new paradigm
Change must be top-down
Employee participation
Shed the old paradigm
Quick transition
 How to change an
organizational culture
CHANGE THE
CEO

ADD NEW
MEMBERS

INVOLVE
MEMBERS CHANGE IN
O.C.
CHANGE THE
REWARD SYS.

CULTURE
SHOCK

CHANGE VALUE
SYSTEM
Learning Culture
Different ways to learn the culture
Stories – serves as effective
communication tool to guide
employee behavior.
Rituals & ceremonies
Reinforces the core value &
objectives of the organization.
Helps to communicate the culture of
the organization
Learning Culture
Material symbols
Importance given to the employees by the
organization
Ex privilege of having chauffer-driven car,
office cabin, layout furnishing & other
official perks.
Language
Distinct languages used by the members
Helps to strengthen bonds between the
members
 Microsoft

An employee bumps into Bill

gates while leaving at 8:00 pm.
Bill gates: “Home?”
Employee: “I’ve been working
for 12 hours!!”
Bill Gates: “only working half a
day ’’
 Infosys
Narayanmurthy is also asked
for an I-card while entering the
campus!!!
The Walt Disney Company

Disney employees are asked:

 “Ford makes cars, Sony makes
TVs, Microsoft makes Software,
what does Disney make?
All respond:
 “Disney makes people
Happy!!! ”
 McDonald’s
People vision:
We’re not just a hamburger
company serving people; we’re a
people company serving
hamburgers”
Our People promise:
To be the best employer in each
community around the world
 Nike
Nike’s Goal: “to enhance
peoples’ lives through sports
and fitness”

75 acres sprawling campus equipped

with all courts & jogging tracks
Employees paid extra for driving to
work