Organizational Culture

What is Organizational Culture?

Organizational Culture is the set of values, norms, guiding beliefs, understandings, and ways of thinking that is shared by members of an organization and that is taught to new members. It represents the unwritten, feeling part of the organization (Richard L. Daft 2004). The basic pattern of shared assumptions, values, and beliefs considered to be the correct way of thinking about and acting on problems and opportunities facing the organization (McShane & Von Glinow).

Levels of Organizational Culture

Why Organizational Culture Matters?

Why Organizational Culture Matters?

At least some sound evidence that variations in cultural values may have a significant impact on employee turnover and possibly employees job performance. Hence the study of organizational culture is important for the understanding and practice of organizational behaviour (Luthans, 1998). Culture gives identity, provides collective commitment, builds social system stability and allows people to make sense of the organization (Sannwald, 2000)

Role Of Culture In An Organization

Cultures serve two critical functions in an organization:

Internal Integration to integrate members so they develop a collective identity and know how to work together effectively External Adaptation to help the organization meet goals and deals with outsiders by responding rapidly to customer needs

Objective of the Study

To assess the organizational cultures at IT services based organizations and IT product based organizations and identify the differences in the cultures of the two types of IT organizations (if there are any).

Methodology
A Questionnaire consisting of two parts:
o First part captures details and demographics of the respondents. o Second part consists of 24 questions answered using a five-point Likert scale. Responses from strongly disagree through strongly agree categories, were scored from 1 to 5 respectively.

The survey was hosted on the web and forwarded through emails to the respondents.

Methodology (Cont.)
The respondents were segregated as per the type of organization they work i.e. Service Vs Product. The questions were grouped into 4 categories, based on the type of the culture they access/evaluate. The Mean and Standard deviations were computed for each of the respondent for each of the four types of organization cultures. Mean and Standard deviations were computed for IT Services and Product based organizations as a whole for the four types of cultures based on the values calculated in the above step.

Results and Analysis

Four types of cultures have been identified based in the framework by Daniel R. Denison and Aneil K. Mishra.

Results and Analysis

IT Service based organizations have a dominant Mission Culture.
Mean scores of respondents for IT services based organization culture
Clan
5 4.5 4 3.5 3 2.5 2 1.5 1 0.5 0

Bureaucratic

Adaptability

Mission

Results and Analysis

There is less variability in the responses about the dominant mission culture in IT Service based organizations.
Standard Deviation of responses for IT services based organization culture
1

0.9

0.8

0.7

0.6

Clan

Adaptability

mission

Bureaucratic

Results and Analysis

For the product based organization, as expected, the dominant culture is the Adaptability culture.
Mean scores of respondents for IT product based organization culture
Clan
5 4 3 2 1

Bureaucratic

Adaptability

Mission

Results and Analysis

Similar phenomenon can be seen here where the variability about the responses for the dominant culture is relatively less than others.
Standard Deviation of responses for IT services based organization culture
0.9

0.8

0.7

0.6

0.5

0.4

Clan

Adaptability

Mission

Bureaucratic

Results and Analysis IT Products

Mean scores of respondents for Clan culture
5 4.5 4 3.5 3 2.5 2 5 4.5 4 3.5 3 2.5 2

Mean scores of respondents for Adaptability Culture

Airtight Networks

Microsoft

Persistent Systems Private Limited

Airtight Networks

Microsoft

Persistent Systems Private Limited

Mean scores of respondents for Bureucratic Culture

5 4.5 4 3.5 3 2.5 2 5 4.5 4 3.5 3 2.5 2

Mean scores of respondents for Mission Culture

Airtight Networks

Microsoft

Persistent Systems Private Limited

Airtight Networks

Microsoft

Persistent Systems Private Limited

Results and Analysis IT Services

Mean scores of respondents for Clan culture
5 4.5 4 3.5 3 2.5 2 5 4.5 4 3.5 3 2.5 2

Mean scores of respondents for Adaptability Culture

Hcl Tech

Infosys Technologies Limited

TCS

Hcl Tech

Infosys Technologies Limited

TCS

Mean scores of respondents for Bureucratic Culture

5 4.5 4 3.5 3 2.5 2 5 4.5 4 3.5 3 2.5 2

Mean scores of respondents for Mission Culture

Hcl Tech

Infosys Technologies Limited

TCS

Hcl Tech

Infosys Technologies Limited

TCS

Results and Analysis

Using the outcome approach, cultures in IT services and product based organizations are described in terms of the following variables: Innovation versus Stability - The degree to which organizational members are encouraged to be innovative, creative and to take risks.
Mean scores of respondents for IT product based organization culture
5 4.5 4 3.5 3 2.5 2 1.5 1 0.5 0 5 4.5 4 3.5 3 2.5 2 1.5 1 0.5 0

Mean scores of respondents for IT services based organization culture

Clan

Adaptability

Clan

Adaptability

Results and Analysis

Strategic versus Operational Focus - The degree to which the members of the management team focus on the long term big picture versus attention to detail.
Mean scores of respondents for IT product based organization culture
5 5

Mean scores of respondents for IT services based organization culture

Mission

Mission

Results and Analysis

Outcome versus Process Orientation - The degree to which management focuses on outcomes, goals and results rather than on techniques, processes, or methods used to achieve these results.
Mean scores of respondents for IT product based organization culture
5 5

Mean scores of respondents for IT services based organization culture

Mission

Mission

Results and Analysis

Team versus Individual orientation - The degree to which work activities are organized around teams rather than individuals.

Mean scores of respondents for IT product based organization culture

5 4 3 2 1 0 5 4 3 2 1 0

Mean scores of respondents for IT services based organization culture

Clan

Bureaucratic

Clan

Bureaucratic

Results and Analysis

Customer Focus versus Cost Control - The degree to which managers and employees are concerned about customer satisfaction and Service rather than minimizing costs.
Mean scores of respondents for IT product based organization culture
5 5

Mean scores of respondents for IT services based organization culture

Mission

Mission

Results and Analysis

Internal verses External Orientation - The degree to which the organization focuses on and is adaptive to changes in its environment.
Mean scores of respondents for IT product based organization culture
5 4.5 4 3.5 3 2.5 2 5 4.5 4 3.5 3 2.5 2

Mean scores of respondents for IT services based organization culture

Thank You