MOD-3 MOD-3

Organizational culture and change

Syllabus overview Syllabus overview
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
merging trends in org culture
Organization culture Organization culture
Culture is social principle, goals or standards held by members of an organization, indi!idually or
collecti!ely"
Organization culture is a set of basic assumptions , !alues , morals and Norms that guide and direct an
indi!idual beha!e in specified #ay"
Organizational culture is similar to, say, regional culture" The same person in different organizations $or
parts of the same organization% #ould act in different #ays"
Organizational culture can loosely be defined as the shared assumptions, beliefs, and $&normal beha!iors& %
norms of a group"
These are po#erful influences on the #ay people li!e and act, and they define #hat is& normal' To a large
degree, #hat #e do is determined by our culture"
Corporate culture Corporate culture
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-in!ented, disco!ered or de!eloped by a
gi!en group as it learns to cope #ith its problems of e(ternal adaptation and internal integration-that has
#or)ed #ell enough to be considered !aluable and therefore, to be taught to ne# members as the correct #ay
to percei!e, thin), and feel in relation to those problems*
Types of culture Types of culture
+echanistic and organic culture
Dominant and subcultures
,trong !s" #ea) cultures
-uthoritarian and participati!e cultures
Mechanistic culture Mechanistic culture
The mechanistic culture is characterized by the !alues of bureaucracy and feudalism"
Organizational #or) is concei!ed as a system of narro# specialism and people thin) of their careers
mainly #ithin these specialism"
-uthority is through of as flo#ing do#n from the top of the organization do#n to the lo#er le!els and
communication flo#s through prescribed channels"
There is a great deal of departmental loyalty and interdepartmental animosity"
This sort of culture resists change and inno!ation
Organic culture Organic culture
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 tas) accomplishment, team #or), and free flo# of communication-
formal and informal"
.n the problem situations, the persons #ith e(pertise may #ield far more influence than the formal boss"
There is a #idespread understanding #ithin the staff, or the problems, threats and opportunities the org
is facing and there is #illingness and preparedness to ta)e appropriate roles to sol!e the problems"
The culture stresses fle(ibility, consultation, change and inno!ation
Doinant culture Doinant culture
- dominant culture e(presses the core !alues that are shared by a ma/ority of the organizations
members"
0hen #e tal) about an organizations culture, #e are referring to its dominant culture"
Subculture Subculture
,ubcultures tend to de!elop in large org to reflect common problems, situations or e(periences that
members face"
These subcultures are li)ely to be defined by department designations and geographical separation"
"g" purchasing department can ha!e a subculture that is uni1uely shared by members of that
department"
.t #ill include the core !alues of the dominant culture plus additional !alues uni1ue to members of the
purchasing department"
Strong culture !s wea" culture Strong culture !s wea" culture
,trong cultures ha!e a greater impact on employees beha!ior and are more directly related to reduce
turno!er"
.n a strong culture, the organizations core !alues are both intensely held and #idely shared
The more members #ho accept the core !alues and the greater their commitment to those !alues are, the
stronger the culture is"
,trong culture #ill ha!e a great influence on the beha!ior of its members because the high degree of
sharedness and intensity creates an internal climate of high beha!ioral control"
,pecific result of strong culture should be lo#er employee turno!er"
,trong culture demonstrates high agreement among members about #hat the organization stands for"
,uch unanimity of purpose builds cohesi!eness, loyalty and organizational commitment
#uthoritarian culture #uthoritarian culture
.n authoritarian culture po#er is concentrated on the leader and obedience to orders and discipline are
stressed
-ny disobedience is punished se!erely to set an e(ample to others"
The basic assumption is that the leader )no#s #hat is good for the org and the one al#ays acts in its
interests"
$articipative culture $articipative culture
The participati!e culture premised on the notion that people are more committed to the decisions that are
participati!ely made than to those #hich are imposed on them"
2roup problem sol!ing leads to better decisions because se!eral ne# points and information are shared
during discussions"
3articipati!e culture tend to emerge #here most org members are professional or see themsel!es as
e1uals"
%ature of culture %ature of culture
&nnovation and ris" ta"ing4 the degree to #hich employees are encouraged to be inno!ati!e and ta)e
ris)s"
#ttention to detail4 the degree to #hich employees are e(pected to e(hibit precision, analysis, and
attention to detail"
Outcoe orientation4 the degree to #hich management focuses on results or outcomes rather than on the
techni1ues and processes used to achie!e those outcomes"
$eople orientation4 the degree to #hich management decisions ta)en into consideration the effect of
outcomes on people #ithin the organization
Tea orientation4 the degree to #hich #or) acti!ities are organized around teams rather than indi!iduals
#ggressiveness4 the degree to #hich people are aggressi!e and competiti!e rather than easy-going
Stability4 the degree to #hich organizational acti!ities emphasize maintaining the status 1uo in contrast to
gro#th
'oral and inforal coponents of culture 'oral and inforal coponents of culture
Observed behavior regularities4 #hen org participants interact #ith one another, they use common
language, terminology and rituals related to deference and demeanor"
%ors4 standards of beha!ior e(ist, including guidelines on ho# much #or) to do, #hich in many org
come do#n to 5do not do too much6 do not do too little7
Doinant values4 there are ma/or !alues that org ad!ocates and e(pects the participants to share" Typical
e"g" high product 1uality , lo# absenteeism, and high efficiency"
(ules4 there are strict guidelines related to getting along in the org" ne#comers must learn those rules in
order to be accepted as full-fledged members of the group"
Org cliate4 the #ay participants interact and the #ay members of the org conduct themsel!es #ith
customer or other outsiders"
Coponents given by )ohnson Coponents given by )ohnson
The paradig4 #hat the org is about6 #hat it does6 its mission6 its !alues"
Control systes4 the processes in place to monitor #hat is going on, role cultures #ould ha!e !ast
ruleboo)s"
Org structures4 reporting lines, hierarchies, and the #ay that #or) flo#s through the business
$ower structures4 #ho ma)es the decisions, ho# #idely the po#er is spread, and on #hat is the po#er
based8
Sybols4 org logos and designs and e(tend to symbols of po#er such as par)ing spaces and e(ecuti!e
#ashrooms
(itual and routines4 management meetings, board reports
'unctions of culture 'unctions of culture
Culture performs a no of functions"
.t has a boundary defining roles"
.t con!eys a sense of identity for org members"
Culture facilitates the generation of commitment to something larger than one7s indi!idual self-
interest"
.t enhances the stability of the social system"
Culture ser!es as a sense ma)ing and control mechanism that guides and shapes the attitudes and
beha!ior of employees
Creating and sustaining and anaging culture Creating and sustaining and anaging culture
Creating culture4 an org current customs, traditions and general #ay of doing things are largely due to
#hat it has done before and the degree of success it has had #ith those endea!ors"
Culture creation occurs in 9 #ays
Founders hire and )eep only employees #ho thin) and feel the same #ay they do"
The indoctrinate and socialize these employees to their #ay of thin)ing and feeling"
The founders o#n beha!ior acts as a role model that encourages employees to identify #ith them
and thereby internalize their beliefs, !alues and assumptions"
Designing strategy for cultural change Designing strategy for cultural change
.f culture is so stable, #hy and ho# does it e!er change8
(ternal e!ents such as shifts in mar)et conditions, ne# technology, altered go!t policies and many other
factors change o!ertime, necessitating changes in an org mode of doing business and hence its culture"
The five approaches*Methods to change culture " They are4
Change re#ard system4
-dd ne# members
.mplement culture shoc)4 cut in profits, dismissal of top boss"
Change of top management
.n!ol!e members4 participati!e mechanisms are successful
+ +
Cross cultural contents Cross cultural contents
0ith the ad!ent of technology and the global !illage ma)ing its mar), the no of business tra!elers
from and to different countries has increased multifold in the past last :; years"
This has brought in need to understand the !arious cultures of the countries "
<usiness relationships often suffer because #e fail to understand the psychology and beha!ior of that
nation"
ach cultural #orld operates according to its o#n internal dynamic, its o#n principles and its o#n
la#s"
!en dimensions of time and space uni1ue to each culture"
Organizational culture and leadership Organizational culture and leadership
=eadership, as defined by most dictionaries, means &to go before, or #ith, to sho# the #ay6 to induce"&
!ery organization needs a leader $and preferably se!eral leaders% to &sho# the #ay& to others as the
organization stri!es to define and achie!e its goals"
0hether these goals are entrepreneurial or humanitarian > or both > the leader?s #or) is to instill a sense of
purpose and passion to the #or) that the organization underta)es"
.dentifying, de!eloping and sustaining leadership in your organization must be one of your strategic
ob/ecti!es"
0ithout leaders at e!ery le!el of your organization, your organization may #ell under-perform"
.t may miss strategic opportunities, inno!ation, underutilize your employees, and fall short of its goals
in customer ser!ice, 1uality, producti!ity, and profitability"
Eerging trends in org culture Eerging trends in org culture
+ission and @ision ,tatement -nalysis
,trategic 3lanning
Re#ard and Recognition
Change +anagement
=eadership
Team <uilding
Facilitation
End of odule-3 End of odule-3
Than) Aou