Organizational culture and change

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

Pavithra S, RITM, MBA Dept

Culture is social principle, goals or standards held by members of an organization, individually or collectively.
Organization culture is a set of basic assumptions , values , morals and Norms that guide and direct an individual behave in specified way.

Pavithra S, RITM, MBA Dept

Organizational culture is similar to, say, regional culture. The same person in different organizations (or parts 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 large degree, what we do is determined by our culture.
Pavithra S, RITM, MBA Dept 4

Corporate culture refers to a system of shared meaning held by members that distinguishes the organization from other organizations. Edgar schein, defines org culture as a pattern of basic assumption-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 valuable and therefore, to be taught to new members as the correct way to perceive, think, and feel in relation to those problems

Pavithra S, RITM, MBA Dept

Mechanistic and organic culture

Dominant and subcultures Strong vs. weak cultures Authoritarian and participative cultures

Pavithra S, RITM, MBA Dept

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 careers mainly within these specialism.

Pavithra S, RITM, MBA Dept

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

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

This sort of culture resists change and innovation

Pavithra S, RITM, MBA Dept

Organic culture is characterized by formal hierarchy of authority, departmental boundaries, formal rules and 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.

Pavithra S, RITM, MBA Dept

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 org is facing and there is willingness and preparedness to take appropriate roles to solve the problems. The culture stresses flexibility, consultation, change and innovation
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A dominant culture expresses the core values that are shared by a majority of the organizations members.
When we talk about an organizations culture, we are referring to its dominant culture.

Pavithra S, RITM, MBA Dept

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Subcultures tend to develop in large org to reflect common problems, situations or experiences that members face.
These subcultures are likely to be defined by department designations and geographical separation.

Pavithra S, RITM, MBA Dept

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E.g. purchasing department can have a subculture that is uniquely shared by members of that department.
It will include the core values of the dominant culture plus additional values unique to members of the purchasing department.

Pavithra S, RITM, MBA Dept

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Strong cultures have a greater impact on employees behavior and are more directly related to reduce turnover. 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, the stronger the culture is.
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Strong culture will have a great influence on the behavior of its members because the high degree of sharedness 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
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In authoritarian culture power is concentrated on the leader and obedience to orders and discipline are stressed 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 its interests.
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The participative culture premised on the notion that people are more committed to the decisions that are participatively made than to those which are imposed on them. Group problem solving leads to better decisions because several new points and information are shared during discussions. Participative culture tend to emerge where most org members are professional or see themselves as equals.
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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.

Pavithra S, RITM, MBA Dept

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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

Pavithra S, RITM, MBA Dept

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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

Pavithra S, RITM, MBA Dept

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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.

Pavithra S, RITM, MBA Dept

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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
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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

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Culture performs a no of functions. 1. It has a boundary defining roles. 2. It conveys a sense of identity for org members. 3. Culture facilitates the generation of commitment to something larger than ones individual selfinterest. 4. It enhances the stability of the social system. 5. Culture serves as a sense making and control mechanism that guides and shapes the attitudes and behavior of employees

Pavithra S, RITM, MBA Dept

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1.

2.

3.

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.

Pavithra S, RITM, MBA Dept

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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 other factors change overtime, necessitating changes in an org mode of doing business and hence its culture.

Pavithra S, RITM, MBA Dept

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The five approaches to change culture . They are: 1. Change reward system: 2. Add new members 3. Implement culture shock: cut in profits, dismissal of top boss. 4. Change of top management 5. Involve members: participative mechanisms are successful

Pavithra S, RITM, MBA Dept

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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.

Pavithra S, RITM, MBA Dept

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In cultures with low power distance, people expect and accept power relations that are more consultative or democratic ( Austria, Australia, Denmark, new Zealand) In Malaysia they expect autocratic or paternalistic culture. Germany people tend to have more loose relationships than countries where there is a collectivism where people have large extended families. In IBM studies reveal that women values differ less among societies than men values. Germans try to avoid uncertainty compared to Denmark Singapore

Pavithra S, RITM, MBA Dept

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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 the organization 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 of purpose and passion to the work that the organization undertakes.

Pavithra S, RITM, MBA Dept

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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.
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Mission and Vision Statement Analysis Strategic Planning Reward and Recognition Change Management Leadership Team Building Facilitation

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Thank You