Effects of Organizational Culture:-

There has been a great deal of anecdotal evidence and some empirical evidence regarding the performance effects of organizational culture. Anecdotal evidence begins Peters and Waterman s !n "earch of E#cellence $%&'(). This boo* basicall+ stimulated the no, familiar business school case stud+ approach. -ore recent anecdotal evidence regarding the most successful companies in the last several decades has also been proffered. According to Cameron and .uinn $%&&&)/ man+ of the most successful companies/ including "outh,est Airlines $(%/0012 return on investment 34O!5)/ Wal--art $%&/'602 4O!)/ T+son 7oods $%'/%%'2 4O!)/ Circuit Cit+ $%8/9%62 4O!)/ and Plenum Publishing $%1/8'&2 4O!)/ score lo, on ,ell-established critical success factors $i.e./ entr+ barriers that prevent organizations from competing for the same mar*et/ non-substitutable products/ lo, levels of bargaining po,er on the part of bu+ers due to customer dependence/ lo, levels of bargaining po,er for suppliers because the+ have no alternative customers/ a large mar*et share that promotes economies of scale/ and rivalr+ among the competition that deflects head-to-head competition ,ith a potential dominator). These unli*el+ Winners have strong leadership that promotes uni:ue strategies and a strong culture to help them realize these strategies. There is also strong anecdotal support indicating that the primar+ cause of failure of most ma;or change efforts $such as T.- and reengineering) has been the failure

to successfull+ change the organizational culture ,as a *e+ factor. !n addition/ <enison $%&&6) found empirical support for the participation=involvement vie, of culture > higher levels of emplo+ee participation ,ere correlated ,ith better organizational performance. !n contrast to this supporting anecdotal and empirical evidence/ it has become ,ell *no,n/ and a point of great contention/ that the e#emplar+ companies identified b+ Peter and Waterman $%&'() did not remain e#emplar+. The general e#planation for this is that these companies failed to change ,ith the times > perhaps the ver+ strength of their culture and their past success prevented them from :uic*l+ and successfull+ adapting to ne, environmental re:uirements $Christensen %&&0). This parado# suggested the need for more longitudinal investigations of the effects of organizational culture. ?ro,ing evidence that e#cellent companies do not remain e#cellent for long also suggests that the traditional notion of a strong culture ma+ need to be replaced ,ith a more discerning understanding of the t+pes and role of culture and the need to change culture over the life c+cle of the organization. 7or E#ample/ perhaps a strong consistent culture is useful in the beginning start-up phase of an organization but a mature organization ma+ need to become more differentiated as ,ell as more oriented to change and learning. What is important for long term@ organizational success ma+ not be a particular t+pe of organizational culture per se but the abilit+ to effectivel+ manage and change the culture over time to ad;ust to changes

in the situation and needs of the organization. This understanding has pointed to the need for a more d+namic understanding of culture and the role of organizational leaders in ensuring that the culture contributes both to the organization s current and future success. "chein $%&&() argues that leadership toda+ is essentiall+ the creation/ the management/ and at times the destruction and reconstruction of culture. !n fact/ he sa+s/ AThe onl+ thing of importance that leaders do is create and manage cultureB and Athe uni:ue talent of leaders is their abilit+ to understand and ,or* ,ithin cultureB. Ceaders must be able to assess ho, ,ell the culture is performing and ,hen and ho, it needs to be changed. Assessing and improving organizational culture as ,ell as determining ,hen ma;or cultural transformations are necessar+ is critical to long-term organizational success. -anaging differentiated cultures and creating s+nergies across these cultures is also a critical leadership challenge. Effective culture management is also necessar+ to ensure that ma;or strategic and organizational changes ,ill succeed. Dasicall+/ culture management is a *e+ leadership and management competenc+. We are all a,are of successful leaders $Eerb Fellerher of "outh,est Airlines/ Cee !acocca of Chr+sler/ Alfred P. "loan of ?.E./ and ?eneral 4obert E. Wood of "ears/ 4oebuc* G Co.) ,ho have succeeded in transforming the culture of the organization. Critical instrumental mechanisms for changing and managing culture include "trategic planning and the identification of necessaril+ cultural re:uisites

 Ensuring consistenc+ of culture ,ith mission/ goals/ strategies/ structures and processes Creating formal statements of organizational philosoph+ and values Establishing consistent incentives/ recognition s+stems/ and performance measurement -aintaining appropriate error-detection and accountabilit+ s+stems $"chein %&&&) Coaching/ mentoring/ informal and formal training/ and identif+ing role models $"chein %&&&) Embracing appropriate rites/ rituals/ s+mbols/ and narratives $"chein %&&&) Ta*ing advantage of the gro,th of subcultures $"chein %&&&) -anaging and promoting strong communities of practice

7eature of organizational culture:a. Observed Dehavioral 4egularities:

When people in the organizations interact ,ith one another/ the+ generall+ use common language/ terminolog+/ and other rituals that relates to deference and demeanor.

b. Horms:
"tandards of behaviopur are set to guide the organizational members ho, much ,or* to do. This/ in man+ organizations/ is e#pressed as Do not do too much, do not do too little.

c. <ominant Ialues:
Organizations advocate some ma;or values and e#pect the same to be imbibed b+ its organizational participants. EJA-PCE: Eigh product :ualit+/ regularit+/ and efficienc+.

d. Philosoph+:
Organizations set forth certain beliefs about ho, emplo+ees and=or customers are to be treated.

e. 4ules:
There are guidelines prescribed ho, the ne, participants of the organizations have to adopt so as to be accepted the full-fledged member of their group in the organization.

f. Organizational Climate:
This is an overall AfeelingB that is conve+ed b+ the ph+sical la+out/ the ,a+ organizational members conduct themselves ,ith outside persons. Each of these features e#ists on a continuum from lo, to high. There is empirical research support for most of them/ such as the important role that dominate values pla+ in organizational culture. Here is a real-world illustration !n the 4eliance ?roup/ one of the much tal* about and practiced principal is the value of time. There are also countless stories of ho, people $ranging from departmental managers to <hirubhai Ambani himself) too* :uic* decisions to meet a crisis/ ho, people sho, there concern about doing thing/ and doing them in shortest possible time. Hot

surprisingl+/ the 4eliance ?roup completed there Patalganga pro;ect in record time of %1 months. Even there collaborators/ E! <u Pont de > Hemours found this achievement unbelievable and unparalleled

-organ proposes four essential strengths of the organizational culture approach: !t focuses attention on the human side of organizational life/ and finds significance and learning in even its most mundane aspects $for e#ample/ the setup in an empt+ meeting room). !t ma*es clear the importance of creating appropriate s+stems of shared meaning to help people ,or* together to,ard desired outcomes. !t re:uires membersKespeciall+ leadersKto ac*no,ledge the impact of their behavior on the organization s culture. -organ proposes that people should as* themselves: LWhat impact am ! having on the social construction of realit+ in m+ organization@L LWhat can ! do to have a different and more positive impact@L !t encourages the vie, that the perceived relationship bet,een an organization and its environment is also affected b+ the organization s basic assumptions. -organ sa+s: According to Edgar "chein/ cultural anal+sis is especiall+ valuable for dealing ,ith aspects of organizations that seem irrational/ frustrating/ and intractable. Ee ,rites/ LThe bottom line for leaders is that if the+ do not become

conscious of the cultures in ,hich the+ are embedded/ those cultures ,ill manage them.L $"chein M01) !t is significant that "chein uses the plural Lcultures.L Nsing open-s+stems concepts/ ,e *no, that members of a group culture ma+ also belong to subcultures ,ithin an organization. "ince organizations do have a shared histor+/ there ,ill normall+ be at least a fe, values or assumptions common to the s+stem as a ,hole. Dut sometimes/ as in man+ orchestra organizations/ the subcultures have had different e#periences over time/ and their group learning has produced ver+ different sets of basic assumptions. This is an e#emplar+ application of Ldouble-loopL learningO a term coined b+ Chris Arg+ris of Hational Training Caboratories in Washington/ <.C./ and no, in general use among organizational theorists. !n contrast ,ith Lsingle-loopL learning/ or the process of solving problems based on an e#isting set of assumptions/ double-loop learning also involves becoming a,are of a group s underl+ing assumption set and continuall+ in:uiring ,hether it is still useful for the tas* at hand. Decause culture is so deepl+ rooted in an organization s histor+ and collective e#perience/ ,or*ing to change it re:uires a ma;or investment of time and resources. Eelp from a change agent outside the s+stem is often advisable. Without such help/ it is difficult for insiders to vie, their Lrealit+L as something the+ ve constructed/ and to see meaning in things the+ normall+ ta*e for granted. He#t time/ ,e ,ill ta*e a loo* at ,a+s some organization change practitioners have ta*en on

the challenge of culture change in the corporate ,orld/ as ,ell as in the orchestra field. "ta+ tunedP

!ncreasing !mportance of Organizational Culture:-

"chein $%&&() suggests that organizational culture is even more important toda+ than it ,as in the past. !ncreased competition/ globalization/ mergers/ ac:uisitions/ alliances/ and various ,or*force developments have created a greater need for: Coordination and integration across organizational units in order to improve efficienc+/ :ualit+/ and speed of designing/ manufacturing/ and delivering products and services Product innovation "trateg+ innovation Process innovation and the abilit+ to successfull+ introduce ne, technologies/ such as information technolog+. Effective management of dispersed ,or* units and increasing ,or*force diversit+

 Cross-cultural management of global enterprises and=or multi-national partnerships Construction of meta- or h+brid- cultures that merge aspects of cultures from ,hat ,ere distinct organizations prior to an ac:uisition or merger -anagement of ,or*force diversit+ 7acilitation and support of team,or*. !n addition to a greater need to adapt to these e#ternal and internal changes/ organizational culture a. has become more important because/ for an increasing number of corporations/ intellectual as b. opposed to material assets no, constitute the main source of value. -a#imizing the value of c. emplo+ees as intellectual assets re:uires a culture that promotes their intellectual participation and d. facilitates both individual and organizational learning/ ne, *no,ledge creation and e. application/ and the ,illingness to share *no,ledge ,ith others. Culture toda+ must pla+ a *e+ role in promoting Fno,ledge management Creativit+ Participative management Ceadership