Organizational Culture

Organizational Culture

A cognitive framework consisting of attitudes, values,

behavioral norms, and expectations shared by

organization members

A common perception held by the organization’s

members; a system of shared meaning

14-2
 Organizational Culture

 Seven primary characteristics

1. Innovation and risk taking

2. Attention to detail
3. Outcome orientation
4. People orientation
5. Team orientation
6. Aggressiveness
7. Stability
 Do Organizations Have Uniform Cultures?

Culture is a descriptive term: it may act as a substitute for

formalization:

Dominant Culture
Subcultures
Core Values
Strong Culture
Organizational Culture’s Role

14-5
 Culture as a Liability

Institutionalization
Barrier to change
Barrier to diversity
Barrier to acquisitions and mergers
 How Culture Begins

Stems from the actions of the founders:

 Selection: Founders hire and keep only employees who think and
feel the same way they do.
 Socialization: Founders indoctrinate and socialize these employees
to their way of thinking and feeling.
 Role Models: The founders’ own behavior acts as a role model that
encourages employees to identify with them and thereby internalize
their beliefs, values, and assumptions.

16-7
 Keeping a Culture Alive

Three forces play a particularly important role in sustaining

a culture:
Selection
 Identify and select individuals who are high performers and whose
values are consistent with at least a good portion of the
organization’s values
Top Management
 Through words and behaviors, senior executives establish norms
that filter through the organization
Socialization
 The process that helps new employees adapt to the prevailing
organizational culture

16-7
 Stages in the Socialization Process

 Pre arrival
 The period of learning prior to a new employee joining
the organization

 Encounter
 The stage at which the new employee sees what the
organization is really like and confronts the possibility
that expectations and reality may diverge

 Metamorphosis
 The stage at which the new employee changes and
adjusts to the work, work group, and organization
 Socialization Program Options

Choose the appropriate alternatives:

 Formal versus Informal
 Individual versus Collective
 Fixed versus Variable
 Serial versus Random
 Investiture versus Divestiture
Socialization outcomes:
 Higher productivity
 Greater commitment
 Lower turnover
Source: Based on J. Van Maanen, “People Processing: Strategies of Organizational Socialization,” Organizational Dynamics, Summer 1978, pp. 19–
36; and E. H. Schein, Organizational Culture,” American Psychologist, February 1990, p. 116.
 Summary: How Organizational Cultures Form

Organizational cultures are derived from the founder

They are sustained through the selection process,
managerial action, and socialization methods

Esource:Robbins ,s,14 ed
Esource:Robbins ,s,14 ed
 How Employees Learn Culture

Stories
 Anchor the present into the past and provide explanations and legitimacy
for current practices
Rituals
 Repetitive sequences of activities that express and reinforce the key values
of the organization
Material Symbols
 Acceptable attire, office size, opulence of the office furnishings, and
executive perks that convey to employees who are important in the
organization
Language
 Jargon and special ways of expressing one’s self to indicate membership in
the organization
 Creating an Ethical Organizational Culture

Characteristics of Organizations that Develop High Ethical

Standards
 Has high tolerance for risk
 Low to moderate in aggressiveness
 Focused on means as well as outcomes

Managerial Practices Promoting an Ethical Culture

 Being a visible role model
 Communicating ethical expectations
 Providing ethical training
 Visibly rewarding ethical acts and punishing unethical ones
 Providing protective mechanisms
 Creating a Positive Organizational Culture

Positive Organizational Culture

 A culture that:
 Builds on employee strengths
 Focus is on discovering, sharing, and building on the strengths of
individual employees
 Rewards more than it punishes
 Articulating praise and “catching employees doing something right”

 Emphasizes individual vitality and growth

 Helping employees learn and grow in their jobs and careers

Limits of Positive Culture:

 May not work for all organizations or everyone within them
 Culture at HCL technologies
17-
15

Vineet Nayar:HCL
Leading IT global company
Employee First ;Customer second
Smart service Desk for grievance redressing
End to end appraisal systems
U&I CEO talks with employees
24X7 “Mitra” Career planning advise helpline
Genie-Coordinator for helping in other works
Awards- monthly /annual
Fundoo Friday
 Spirituality and Organizational Culture

Workplace Spirituality
 Recognizes that people have an
inner life that nourishes and is
nourished by meaningful work in
the context of the community

 NOT about organized religious

practices
 Contd..

 It helps to counterbalance the pressures and stress of a turbulent

pace of life and caters to the increased need for involvement and
connection
 Job demands have made the workplace dominant in many people’s
lives; yet they continue to question the meaning of work
 People feel the need to integrate personal life values with one’s
professional life
 An increasing number of people are finding that the pursuit of more
material acquisitions leaves them unfulfilled
 Characteristics of a Spiritual Organization

Concerned with helping people develop and reach

their full potential
Directly addresses problems created by work–life
conflicts
Four characteristics of spiritual organizations:
1. Strong sense of purpose
2. Trust and respect
3. Humanistic work practices
4. Toleration of employee expression
 Criticisms of Spirituality

What is the scientific foundation?

 We still don’t have an answer; there is very little research on the
subject
Are spiritual organizations legitimate – do they have the
right to impose values on employees?
 The goal of spirituality is to help employees find meaning and value
in their work
 Spirituality is not about God or any religious values
Are spirituality and profits compatible?
 Initial evidence suggests that they are
 Spirituality may result in greater productivity and dramatically lower
turnover
 Global Implications

Organizational cultures, while strong, can’t ignore

local culture
Managers should be more culturally sensitive by:
 Adjusting speech to cultural norms
 Listening more
 Avoiding discussions of controversial topics
All global firms need to be more culturally sensitive
 Summary and Managerial Implications

Strong cultures are difficult for managers to change

 Strong cultures tend to be stable over time
Selecting new hires that fit well in the organizational
culture is critical for motivation, job satisfaction,
commitment, and a low turnover
Socialization into the corporate culture is important
As a manager, your actions as a role model help create
the cultural values of ethics, spirituality, and a positive
culture
Thank you!