CORPORATE CULTURE AND Organization Culture

Org Design and Culture

VALUES Ethics, Values, CSR

Shaping the Culture
▪ How do you explain the actions and
behaviors of the Taj Bombay hotel
employees during the 26/11 crisis?

▪ Why did the hotel employees not save their

own lives? Why did they stay?
▪ Did they remain in the hotel out of loyalty to
the guests or Taj Hotel?
▪ How much of this behavior is explained
by the national culture and how much is
explained by the hospitality industry
culture?
▪ Could this employee response have occurred
at another hotel in Mumbai; or another
hospitality industry setting; or in any other
organization?
▪ How do you recruit and train such
people?
ORGANIZATIONAL CULTURE

▪ Values, beliefs, assumptions and norms that

contributes to the unique social and
psychological environment of an organization
and govern how members behave
▪ A system of shared meaning held by an
organization’s members that distinguishes the
organization from others
▪ Has worked well enough to be considered
valuable and, therefore, to be taught to new
members as the correct way
Image source: Cengage
INTERPRETING ORG. CULTURE
▪ Observed behavioral regularities (use of common language,
symbols, rites, rituals, and ceremonies)

▪ Norms and rules (standards, Code of conduct)

▪ Organization structures (and control systems)
▪ Power relationships
▪ Dominant Values (values that org. advocates; stories and myths)
▪ Philosophy (policies about how employees/customers are to be treated)
▪ Organizational climate (Shared perception about organization
and work environment)
SPECIFIC CHARACTERISTICS OF ORG.
CULTURE
▪ Innovation and risk taking (Adaptability)
▪ Attention to details (Detail orientation)
▪ Outcome/result orientation
▪ People/customer orientation
▪ Collaboration/team orientation
▪ Integrity and ethical standards
COMMON ORG CULTURE FRAMEWORK
▪ The Clan – a culture based on human affiliations
(attachment, collaboration, trust and support)
▪ The Adhocracy – a culture based on change
(growth, variety, attention to detail, stimulation
and autonomy)
▪ The Market – a culture based on achievement
(communication, competence, and competition)
▪ The Hierarchy – a culture based on stability
(formalization and routine)
TYPES OF ORG CULTURE
ORG. CULTURE - CHARACTERISTICS

▪ Uniformity of culture
▪ Dominant culture and sub-culture
▪ Strong and Weak culture
▪ Sharedness and Intensity
ORG. CULTURE AND PERFORMANCE

▪ Constructive Culture
▪ Non-constructive Culture
ORGANIZATIONAL VALUES AND ETHICS

▪ Organizational values are the beliefs and

principles that drive a business forward; guiding
principles that provide an organization with
purpose and direction.
▪ Managerial ethics are principles that guide the
decisions and behaviors of managers with
regard to whether they are right or wrong
▪ Corporate social responsibility
 SHAPING ORGANIZATIONAL CULTURE

▪ How a culture begins?

▪ How organizations keep a culture alive?
▪ Selection; Top management; socialization
▪ How employees learn culture?
▪ Stories; Rituals; Material Symbols; Language

▪ Value-based leadership
▪ Formal Structures and Systems
COMPETITIVE ADVANTAGE
FORMAL STRUCTURE AND SYSTEMS

• Ethics Committees
• Ethics Hotlines
• Disclosure Mechanisms – whistle-blowing
• Code of Ethics
• Training Programs
Thank you