Organization culture

Presented By: Divya P Revathi MS Veena M Sabitha S Asvathy T

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ORGANISATION CULTURE
Culture is a conceptual word that has been discussed for thousands of years by anthropologists, sociologists, historians and philosophers. Each society is underpinned and defined by

a distinctive culture. culture is a set of values, beliefs,

common understanding, thinking and norms for behavior that are shared by all members of a society.
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CULTURE
A pattern of basic assumptions that are considered valid and that are taught to new members as the way to perceive, think, and feel in the organization

The basic pattern of shared values and assumptions

governing the way employees within an organization

think about and act on problems and opportunities.

To have a strong and effective organization culture, you will want to be asking questions like,
Do all employees in the organization have a common understanding of our purpose, strategy and goals? What are the core values in the organization and do all have a

common understanding of these values?

Do we have a team spirit in the organization? Is everybody highly involved and committed? How do we define success? How do we handle agreement and disagreement? What behaviors are regarded as deviant in the company? How adaptive and innovative are we as an organization?
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 At the surface level, culture can present itself as visible symbols, slogans, languages, behaviors, histories and stories, dress codes, heroes, legends,

rituals and ceremonies. But underlying these visible signs of culture, are
the core values, beliefs and shared assumptions of each employee that help define the organizations culture.

We cannot change culture easily by switching the logos, rearranging the

of the office space, or repeating some heroic stories to employees. They may work to a certain degree but are definitely far from adequate to win

employees hearts and their minds, as well as the market. What we need
is some deeper analysis and reflection of your peoples collective beliefs and assumptions.
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Contd
Only when we understand these in more depth we will be able to
define appropriate steps to strengthen the organizations culture and effectiveness.

How Do We Know Our Culture?

The result of a global research says that four cultural traits (adaptability; mission; involvement; and consistency)

influence organization performance to a significant degree. Through a precise examination by statistical tools, the effects of these four traits are remarkably reflected in Sales Growth, Return on Assets (ROA), Quality; Profits; Employee

Satisfaction; and Overall Performance.

Levels of Organizational Culture (Adapted from Schein 1980; Schein 1985)

 In Scheins view, fundamental assumptions constitute the core and

most important aspect of organizational culture. Accordingly, he

offers the following formal definition of organizational culture: A pattern of shared basic assumptions that the group learned as it solved 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

Increasing Importance of Organizational Culture

organizational culture is even more important today than it was in the

past. Increased competition, globalization, mergers, acquisitions,

alliances, and various workforce developments have created a greater need for: Coordination and integration across organizational units in order to improve efficiency, quality, and speed of designing, manufacturing,

and delivering products and services

Product innovation Strategy innovation Process innovation and the ability to successfully introduce new 10 technologies, such as IT.

Contd
Effective management of dispersed work units and increasing

workforce diversity
Cross-cultural management of global enterprises and/or multinational partnerships Construction of meta- or hybrid- cultures that merge aspects of cultures from what were distinct organizations prior to an

acquisition or merger
Management of workforce diversity Facilitation and support of teamwork.
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Culture today must play a key role in promoting,

Knowledge management

Creativity
Participative management and, Leadership

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Requisites for effective organizational culture

The organization must be proactive, not just reactive. The organization must influence and manage the environment, not just adapt. The organization must be pragmatic, not idealistic. The organization must be future-oriented, not predominantly present/past oriented. The organization must embrace diversity, not uniformity. The organization must be relationship-oriented, not just taskoriented. The organization must embrace external connectivity, as well as promote internal integration.

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Functions of Organizational Culture

Culture provides a sense of identity to members and increases

their commitment to the organization

Culture is a sense-making device for organization members Culture reinforces the values of the organization Culture serves as a control mechanism for shaping behavior

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Strong Culture
An organizational culture with a consensus on the values that drive the company and with an intensity that is recognizable even to outsiders.

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Strong Cultures Facilitate Performance

Because
They are characterized by goal They create a high level of motivation Because of shared values by the members They provide control without the oppressive effects of bureaucracy

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Adaptive Culture
An organizational culture that encourages confidence and risk taking among employees, has leadership that produces change, and focuses on the changing needs of customers

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Types of Cultures
Constructive
Valuing members, self-actualizing, affiliative, and humanistic/encouraging normative beliefs (expected behavior or conduct)

Passive-defensive
Approval-oriented, traditional and bureaucratic, dependent and non participative, punish mistakes but ignore success

Aggressive-defensive
Confrontation and negativism are rewarded, non participative, positional power, winning valued, competitiveness rewarded, perfectionistic
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How cultures are embedded in organizations

Formal/public statements

Physical Layout
Slogans, co. lingo Mentoring, modeling Explicit rewards, promotion criteria Stories, legends, myths

Processes and outcomes, measurement

Workflow and systems
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Most Important Elements in Managing Culture

What leaders pay attention to?

How leaders react to crises ?

How leaders behave ? How leaders allocate rewards ? How leaders hire and fire individuals ?

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Benefits of Strong Corporate Cultures

Social Control

Strong Organizational Culture

Social Glue

Improves Sense-Making

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Strengthening Organizational Culture

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Organizational Culture Profile

Org Culture Organizational Culture Profile Dimensions Dimension Characteristics
Innovation Stability Experimenting, opportunity seeking, risk taking, few rules, low cautiousness Predictability, security, rule-oriented

Respect for people Fairness, tolerance Outcome orientation Attention to detail Team orientation Aggressiveness Action oriented, high expectations, results oriented

Precise, analytic
Collaboration, people-oriented Competitive, low emphasis on social responsibility
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Cultural Changes
With rapid environmental changes such as globalization, workforce diversity and technological innovation, the fundamental assumptions and basic values that drive the organization may need to be altered.

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Cultural Change
Cultural change typically refers to radical versus limited change. It is not easy to achieve; it is a difficult, complicated, demanding effort that can take several years to accomplish. There are three basic types of cultural change

Revolutionary and comprehensive efforts to change the culture of the entire organization Efforts that are gradual and incremental but nevertheless are designed to cumulate so as to produce a comprehensive reshaping of the entire organizational culture Efforts confined to radically change specific subcultures or cultural components of the overall differentiated culture.

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Strategies for effecting cultural change include

Unfreezing the old culture and creating motivation to change Capitalizing on propitious momentsproblems, opportunities, changed circumstances, and/or accumulated excesses or deficiencies of the past

Making the change target concrete and clear

Maintaining some continuity with the past Creating psychological safety through a compelling positive vision, formal training, informal training of relevant groups and teams, providing coaches and positive role models, employee involvement

and opportunities for input and feedback, support groups, and

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contd
Selecting, modifying, and creating appropriate cultural forms,

behaviors, artifacts, and socialization tactics

Cultivating charismatic leaders Having a realistic and solid transition plan Exercising risk management by understanding and addressing the risks and the benefits as well as the potential inequitable distribution

of these risks and benefits.

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Why is Change Difficult?

Assumptions are often unconscious Culture is deeply ingrained and behavioral norms and rewards are well learned

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Conclusion
Culture is a set of values, beliefs, common understanding, thinking and norms for behavior that are shared by all members of a society. You cannot precisely define it, but you can sense it and feel it. Culture provides guidance to behaviors in the society, in apparent and sometimes unnoticeable ways; and it profoundly influences your decision-making.

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Reference
Alvesson, Mats, and Per Olof Berg. 1992. Corporate Culture and Organizational Symbolism: An Overview. Berlin: Walter de Gruyter & Co. Caldwell, Bruce. 1994. Missteps, Miscues: Business Reengineering Failures Have Cost Corporations Billions, and Spending is Still on the Rise. Information Week (June 20):5060. Cameron, Kim S., and Robert E. Quinn. 1999. Diagnosing and Changing Organizational Culture: Based on the Competing Values Framework. Reading, MA: Addison-Wesley Publishing Co. Kotter, John, and James L. Heskett. 1992. Corporate Culture and Performance. New York: The Free Press.
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