ORGANISATIONAL CULTURE

- It encompasses values and behaviour that ‘ contributes to the unique

social and psychological environment of an organisation’ .
- Represents the collective values, beliefs of the organisations members
- Culture includes organisations values, norms, systems, symbols,
language, habit, etc.
CHARACTERISTICS OF ORGANISATIONAL
CULTURE

• Innovation and risk taking

• Attention to detail
• Outcome orientation
• People orientation
• Team orientation
• Aggressiveness
• stability
 EXAMPLES

Adobe-

• Provides employees challenging projects.

• No rating system, let employees set goals and determine how they should be
assessed.
• Employees are also given stock option
• Continual training.

Google-
• Sets the tone for many of the perks and benefits
• Free meals, employee trips and parties, financial bonuses.
• Open presentations by high-level executives, gyms, a dog-friendly environment and
so on.
Types of Organizational Culture
The basic types of organizational culture are:

Clan Culture

Adhocracy Culture

Market Culture

Hierarchy Culture
• Clan Culture
In this culture working environment is a friendly one. People have a lot in common, and it’s
similar to a large family. The leaders or the executives are seen as mentors or maybe even as
father figures. The organization is held together by loyalty and tradition. The organization
emphasizes long-term Human Resource development and bonds colleagues by morals. Success
is defined within the framework of addressing the needs of the clients and caring for the people.
The organization promotes teamwork, participation, and consensus.
• Adhocracy Culture
This is a dynamic and creative working environment. Employees take risks. Leaders are
seen as innovators and risk takers. Experiments and innovation are the bonding materials
within the organization. The long-term goal is to grow and create new resources. The
availability of new products or services is seen as success. The organization promotes
individual initiative and freedom.
• Market Culture
This is a results-based organization that emphasizes finishing work and getting things done.
People are competitive and focused on goals. Leaders are hard drivers, producers, and rivals at
the same time. They are tough and have high expectations. The emphasis on winning keeps
the organization together. Reputation and success are the most important. Long-term focus is
on rival activities and reaching goals. The organizational style is based on competition.

• Hierarchy Culture
This is a formalized and structured work environment. Procedures decide what people do.
Keeping the organization functioning smoothly is most crucial. Formal rules and policy keep
the organization together. The long-term goals are stability and results. Trustful delivery,
smooth planning, and low costs define success.
How is Organizational culture created and sustained?
How Organizational Culture Begins?

An organization’s current customs, traditions and general way of doing things are largely due
to what it has done before and the degree of success it has had with those endeavours.
The original source of an organization’s culture usually reflects the vision or mission of the
organization’s founders. Because the founders had the original idea, they also may have
biases on how to carry out the idea. Their focus might be on aggressiveness or it might be on
treating employees as family.
Organizational cultures can develop in a number of different ways, these steps are explained
below:-
1. A single person (founder) has an idea for a new enterprise: Some organizational
cultures may be the direct, or at least, indirect, result of actions taken by the founders. The
founders of an organization traditionally have a major impact on that organization’s early
culture. They have a vision of what the organization should be.
2. Founders’ creation of a core group: The founder brings in one or more other key
people and creates a core group that shares a common vision with the founder.

3. Indoctrinate and Socialize: The founding core group begins to act in concert to create an
organization by raising funds, obtaining patents, incorporating, locating land, building
infrastructure and so on. The core group indoctrinate and socialize employees to their way of
thinking and feeling.
4. Build a Common History: The founders’ own behaviour acts as a role model that
encourages employees to identify with them and thereby internalize their beliefs, values, and
assumptions. At this point, others are brought into the organization, and a common history
begins to be built.
Most of today’s successful organizations follow the vision of their founders.
Sustaining a Culture:
Selection: The goal of the selection process is to identify and hire individuals who could make
the organization successful through their services. Therefore candidates who believe in the
values of the organizational have to be selected. Thus, the selection process attempt to ensure
a proper match in the hiring of people who have values essentially consistent with those of
the organization or at least a good portion of those values cherished by the organization.
Top Management: Top management have a important role to play in sustaining the
organization’s culture. It is the top management who establish norms that filter down through
the organization. It is they through their conduct both implicit and explicit that shows what is
desirable. They do this through pay raises, promotions and other rewards.
Socialization: Socialization is the process that adapts employees to the organization’s culture.
Organization wants to help new employees adapt to its culture. The adaptation is done
through the process of “socialization”.
 HOW EMPLOYEES LEARN CULTURE

STORIES

Stories typically contain a narrative of events about the organisation’s founders, rule
breaking, rags to riches successes, and organisational coping. These stories anchor
the present, in the past and provide explanations and legitimacy for current practices.

RITUALS

Rituals are repetitive sequences of activities that express and reinforce the key values
of an organisation, which people are important, and which people are expendable.
MATERIAL SYMBOLS

The layout of corporate headquarters, the types of automobiles top executives are given,
and the presence or absence corporate aircraft are some examples of material symbols.
These symbols convey to the employees who is important, the degree of egalitarianism
desired by top management, and the kinds of behaviour that are appropriate.

LANGUAGE

Many organisations and units within organisations use language as a way to identify
members of a culture or sub-culture. By learning this language members attest to their
acceptance of the culture and help to preserve it.
CREATING AN ETHICAL ORGANIZATIONAL CULTURE
• The content and the strength of a culture influence an organization's ethical climate and the
ethical behavior
of its members.
• Managers in such a culture are supported for taking risks and discouraged in engaging in
unbridled competition.
• A strong organizational culture will exert more influence on employees than a weak one.

What can Management do to create a More Ethical Environment?

1. Be a visible role model:
When senior management is seen as taking the ethical high road, it provides positive message
for all employees.
2. Communicate ethical expectations
Ethical ambiguities can be minimized by creating and disseminating an organizational code of
ethics.
3. Provide ethical training
Set up seminars, workshops and similar ethical training programs.
4.Visibly reward ethical acts and punish unethical ones
Performance should be evaluated against the organization’s code of conduct. Good ethical
behavior should be rewarded and bad ethical behavior should be punished.
5. Provide ethical mechanisms
The organization needs to provide formal mechanisms so that employees can discuss and
report ethical dilemmas.
 CREATING A POSITIVE ORGANIZATIONAL CULTURE
A positive organizational culture is defined as a culture that emphasizes building on
employee strengths,
rewards more than it punishes and focuses on individual vitality and growth.
WHAT CAN BE DONE TO CREATE A POSITIVE ORGANIZATIONAL CULTURE?

1. Building on employee Strengths

 A positive organization culture does not ignore problems but it does emphasize on
showing workers how they can capitalize on their strengths.
 If employees really want to excel, they have to know what they are good at and what they
are not so good at.
2. Rewarding more than punishing
It involves that managers take note of the good work done by the employees and
articulating praise.
Most organizations are sufficiently focused on extrinsic rewards like pay and promotions
and forget about the power of smaller ones like praise.
THANK YOU