ORGANIZATION CULTURE

Definitions of Culture
"Shared meaning or understandings that are largely tacit and unique to group members. Morey and Luthans "A cognitive framework consisting of attitudes, values, behavioral norms, and expectations shared by group / organization members.
Schnider and Rentsch

"The system of meanings which are shared by members of human grouping and which define what is good and bad, right and wrong and what are the appropriate ways for members of that group to think and behave".
Watson

Culture is, "a pattern of basic assumptions-invented, discovered, or developed by a given group as it learns to cope with its problems of external adoption 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.
Edger Schien

Impact of Organizational Culture?

Innovation and risk taking Attention to detail Outcome orientation People orientation Team orientation Aggressiveness Stability

The Influence of Organizational Culture

Behavior
Common Patterns and Manners of Behavior

Decision Making
Strategic Planning, Managerial approaches and Recipes

Organization Culture
Affect / Emotion Motivation
Goals, Morale, Commitment, Acceptance of Standards Satisfaction, Perception of Fairness, Stress, Alienation Anxiety

Organizational Culture & Performance - 1

What impact does organizational culture have on the performance levels in the organization? All and sundry agree that the impact of the organizations culture on the thinking, behaviors and performance of organization members is profound but the exact nature and consequences are not agreed upon. Various studies have revealed that in organizations the impact of culture on organizational performance is influenced by at least seven or eight dimensions of climate. Peters and Waterman have suggested that "strong" cultures are the hallmark of organizations which excel. Dennison has reported that organizations with cultural values supporting employee participation in decision making generate a return on. investment wh1dl is twice that of organizations whose cultures do not support such decision making.

ORGANIZATIONAL CULTURE AND PERFORMANCE (2)

Hofstede et al. conclude from their research in Denmark that there are two key dimensions of organizational culture which can be correlated with performance levels. Firstly the employee versus job orientation and secondly the process versus result orientation of organizational culture were important when discussing performance levels. Another approach to this issue has been offered by the recent work of O'Reilly, Chatham and Caldwell. In their research O'Rielly et al. have found significant correlation between the performance levels of the organization and the fit between the organizational culture and its members. Of late another approach that of the "Fit" between the organization members, the organization culture and the operating environment of the organization has become quite popular. This approach postulates that the culture of the organization must fit both internally and externally if the organization is to achieve levels of excellence in productivity, dynamism and quality.

Do Organizations Have Uniform Cultures?

Dominant Culture

Subcultures Core Values

Cultures in an Organization
Dominant culture
Expresses the core values that are shared by a majority of the organizations members.

Subcultures
Mini-cultures within an organization, typically defined by departments, functions, designations and geographical separation.

Core values
The primary or dominant values that are accepted throughout the organization by a majority of the organizations members.

Organizational Culture
Functions
Defining boundaries Conveying identity Promoting commitment Controlling behavior

Liabilities
Impeding change Inhibiting diversity Blocking mergers Blocking acquisitions

Stories

Rituals

How Employees Learn Culture

Language
Material Symbols

THE IMPACT OF CULTURE

The impact of culture on individuals in society has been very comprehensively spelled out by Watson who says, A culture is, in part a moral system. It not only defines values (ideas about what is good and bad, right and wrong) for those who subscribe to it, but contains assumptions about the nature of the world and of human beings. It also helps people construct their identities. The culture of our society provides resources for the individual to create an answer to the question of who they are; it offers various types of haircut one m9ight adopt to be a man or a woman; various modes of dress one might wear to be a manager, a musician, a holiday-maker; various ways of behaving to be a parent, a son or daughter, a senior citizen. We all work on our identities all the time: making meaning through a dialogue with the culture (or cultures, in so far as we are parts of several groups), its norms, values and symbols. Through our actions we are contributing to culture as well as taking from it. Cultures are human-made and we are constantly remaking them as we interactively devise new ways of going about our lives. But cultures help us with more than the provision of resources of clothes, hairstyles and behavioral cues. They provide resources to help with more profound existential problems about the nature of obligation to others, the meaning of death, the character of live.

Types of Organizational Rituals

1. Social Rituals: Determining socializing and interaction 2. 3. 4.
behavior patterns which govern organizational relationships. Communication Rituals: Governing communication styles, usage of language, patterns of verbal and non verbal communication and their preference in the organization . Work Rituals: Guides for the broad parameters of performance, productivity, work standards, discipline, routines and practices. Management Rituals: Governing the procedures and practices used to manage an organization. Recognition Rituals: The ways and means which are used to recognize people who have performed very well. Transition Rituals: Related to organizational transitions like, promotions, reassignments, retirements, departures etc.

5.
6.

The Cultural Network of the Organization

All organizations with strong and well defined cultures have a hidden hierarchy which influences and shapes the culture. This hidden hierarchy is called the cultural network of the organization. This network is primary means of cultural communication in the organization; it ties together all parts of the organization without respect to position or titles. This cultural network, which is sometimes called the informal organization, is quite often the real determinant of how and why things get done in organization. Time and again it has been observed by researchers that real organizational power and position rests with individuals who play key functional and cultural roles in the organization. In effective organizations managers are seen to use the cultural network of the organization in a very productive and efficient manner to produce required results.

INDIVIDUAL ROLES IN THE CULTURAL NETWORK

1. STORY TELLERS Individuals who are authorized by cultural big wigs to spin and spread stories which provide a powerful way to shape behavior and spread stories. 2. PRIESTS Individuals in the organization who are store houses of historical and anecdotal information about the co. And whose interpretation of the companies values, beliefs and attitudes are widely accepted. 3. WHISPER'S Individuals who are the influencers of key cultural powers but who themselves have little cultural significance. They become the cultural mouthpieces and ears of the cultural supremos.

INDIVIDUAL ROLES IN THE CULTURAL NETWORK (2)

4. GOSSIPS : Individuals who primarily spread cultural news and events within the cultural network. They are found at all levels in the organization and are generally well known for their ability to supply the latest on culturally significant happenings. 5. SECRETARIAL SOURCES: Key secretarial and clerical sources who listen to or disseminate culturally relevant information or gossip. 6. SPIES: Individuals in the cultural network who inform or alert cultural bosses about events which have cultural significance. They have an excellent feel of the pulse of the culture and can give accurate information about it.

7. CLIQUES: In all cultural network some groupings of individuals are visible. These individuals usually act in consort to perpetuate or further some fact of the culture which they viewed as significant or pivotal for the organization or themselves.

Types of Corporate Heroes

1. Visionary Heroes

a) b) c) d)

Founders Path Breakers Men of Crisis Change Agents

2) Situational Heroes a) b) c) d) e) Outstanding Achievers Great Problem Solvers Company Men Good People Rebels with a Cause

The Impact of Heroes on the Organization

Organizational heroes reinforce the basic values of the culture by: 1. Making success seem attainable and human 2. Providing effective role models
3. Setting standards of performance 4. Motivating employees 5. Preserving what makes the Co. special 6. Symbolizing the company to the outside world

Factors of Natural Cultural Change in Organizations

1. Organization Growth 2. Change In Org. Performance Levels 3. Market Forces 4. Regulation / Legislation 5. New Technology 6. New Entrants

7. Loss of Key Members

8. Changes in Ownership

9. Mergers And Acquisitions

How Are Organization Cultures Sustained?

All organizations use various mechanisms to maintain and sustain organization culture. The following are some of the important culture sustaining mechanisms : 1. Formal statements 2. Role modeling 3. Story telling 4. Cultivation of org. Man image 5. Ceremonies and rituals 6. Style and substance of communication 7. Dress codes 8. Usage of status symbols 9. Socialization of new entrants 10. Leaders attention and reaction to events 11. Explicit reward systems 12. Design conformity

THE BASIC METHODS OF CULTURE CHANGE

1. Changing the key components of culture

2. Introduction of key new entrants

3. Change in socialization process 4. Role modeling by organization leaders 5. Organization development 6. Mergers and acquisitions

7. Divestures

Factors Influencing the Initial Development of Culture

1. Impact of founder 2. Nature of the initial core group 3. Early experiences 4. Impact of powerful new entrants 5. Critical incidents