Q1.

Please outline the relation between the organisational culture and organisational
structure? Explain the steps for creating organisational culture. Describe six socialization
tactics?

Answer:-

Introduction: Organizational culture can be defined as “a system of assumptions, values, norms, and
attitudes, manifested through symbols which the members of an organization have developed and
adopted through mutual experience and which help them determine the meaning of the world around
them and the way they behave in it” As this definition implies, organizational culture has a cognitive and
a symbolic component in its content. The cognitive component consists of mutual assumptions, beliefs,
norms, and attitudes that the organization’s members share, and which also shape their mental
schemes. Organizational culture Organizational culture therefore determines the way the organization
members perceive and interpret the surrounding world, as well as the way they behave in it. The
cognitive content of organizational culture ensures a unique manner of assigning meaning and a unique
reaction to phenomena within and around the organization. Hence, if a strong culture exists in an
organization, all the members of the organization will make decisions, take actions, or enter interactions
in a similar and foreseeable fashion. Symbols are a visible part of organizational culture, and they
manifest its cognitive component. Semantic, behavioural, and material symbols strengthen, transmit,
and also modify organizational culture.

Organizational structure is defined as a relatively stable, either planned or spontaneous, pattern of

actions and interactions that organization members undertake for the purpose of achieving the
organization’s goals. This understanding of organizational structure is based on a fundamental
assumption of it being purposeful, i.e., on the idea that organizational structure has its purpose.
Purposefulness of structure implies that it is a rational instrument in the hands of those governing the
organization, used for directing the course of activities in the organization towards realizing its
objectives. Rationality of the organizational structure is ensured by its differentiation and integration of
organization members’ individual and collective activities.

Steps for creating organizational culture are as follows:

 Performing a culture audit: Culture audit is undertaken to determine the strengths and
weaknesses of existing organizational culture. It also involves reviewing the vision and mission
statements of the organization. Further, one-to-one interactions are carried out with
employees to understand their viewpoints on the existing culture and their expectations. This
ultimately helps the organization to create a new culture by considering the strengths and
weaknesses of the existing culture.
 Assessing the management team: In this step, the members of the top management of
the organization are assessed. This assessment helps in revealing which managers are
flexible to adopt the new culture. In case managers resist change, they are given proper
counseling. Even after that, if they resist change, they are moved out of the organization.
 Focusing on results and building accountability: A positive culture is necessary for an
organisation to achieve its long-term
strategic goals. For this, the roles of each manager are set so that they can work towards
achieving the strategic goals of the organization. Moreover, the performance of managers is
reviewed against the prescribed standards on a weekly or monthly basis. In the case of St.
 George Bank, Kelly developed a culture where managers were required to be accountable for
all tasks performed by them.
 Managing the drivers of culture: The culture of an organization develops as a result of various
drivers. These drivers include the attitude, perception and thought process of employees;
nature of business; customer base; management style; etc. In order to create or
implement new organizational culture, all drivers of cultural change must be managed
efficiently. In case of St. George Bank, drivers such as the framework of management,
discipline and strategy need to be strengthened for creating a culture.
 Communicating and rewarding: A strong culture can be developed if there is effective
communication among all stakeholders of the organisation. For example, frequent interaction
between the management and employees would help in identifying on-going problems at the
workplace. Similarly, communicating with customers regularly and getting their feedback
would help the organisation in making improvements in products and services. Taking the
example of St. George’s Bank, Kelly made a habit of calling customers every week and
hearing their concerns. In order to promote the change process, the employees should be
motivated to make change efforts. For this, they should be rewarded appropriately with
incentives.

Six socialization tactics:-

 Collective versus individual socialization tactics: Under the collective socialization tactic, all
new employees are made to go through a common set of experiences. For example, fire
drills, where employees get collective training on evacuating a building during an incident of
fire. However, under the individual socialization tactic, new employees are put through different
sets of experiences. For example, internships, where employees get training as per their job
profiles
 Formal versus informal socialization tactics: Under the formal socialization tactic,
employees are given off-the-job training so that they can learn and develop skills required
for performing their jobs. However, under the informal socialization tactic, employees are
directly transferred to the floor for performing their jobs with-out any special training or
orientation. This process is called on-the-job training. For example, waiters at a road-side
dhaba learn while performing their jobs.
 Sequential versus random socialization tactics: Under the sequential socialization tactic, an
organization defines certain steps for new employees to perform their jobs. For example,
internship programmes for doctors. On the other hand, random socialization takes place when
the steps are ambiguous in nature. For example, management training is random in nature.
 Fixed versus variable socialization tactics: Under the fixed socialization tactic, employees
are required to work as per a fixed schedule. For example, in case of a bank, the probation
period is fixed for two years. However, under the variable socialization tac-tic, the employee is
prohibited to enter the next stage until he/she is deemed fit by the organization. This type of
tactic is mostly used in the private sector.
 Serial versus disjunctive socialization tactics: Under the serial socialization tactic, employees
learn through role models or organizational leaders. For example, mentoring programmes.
However, under the disjunctive socialization tactic, there are no role mod-els or leaders,
and the employees have to engage in socialization themselves. For example, employees at a
new business setup have to learn on their own as there are no standard procedures laid.
 Investiture versus divestiture tactics: Under the investiture socialization tactic, the existing
skills and abilities of new employ-ees are considered and preserved by an organization.
 Orientation programmes, relocation assistance, career counseling, etc. are examples of
investiture socialization. On the other hand, under the divestiture socialization tactic, the skills
and abilities of new employees are ignored, and they are asked to learn new skills. For ex-
ample, medical students are trained by using the divestiture tactic.

Q2. Discuss the practices that can be used by an organization to create an ethical organizational culture.
What is a positive organizational culture? Explain.

Answer:-

Ethics refer to the moral and behavioral codes of conduct that every individual working within an
organization must follow. These codes are meant to prevent malpractices, such as corruption and
fraud, in organizations. Ethics are integral to any organizational culture and therefore, are
reflected in the behavior of employees. An ethical or-generational culture is one that influences
employees to abide by the codes of conduct. Ethical organizational culture varies from organization to
organization. For example, in some organizations, giving non-monetary rewards to clients to gain
business is considered ethical, while in some, the same practice is considered to be unethical. Ethical
organisational culture does not develop on its own. For this, top executives design the code of
ethics that describes principal values and ethical rules. These are expected to be followed by all
employees in the organization. While developing an ethical organizational culture, both formal and
informal systems must be aligned. The formal system in an organization includes organizational
arrangement, reward systems, decision-making processes and training and orientation programs.

The prime requirement to imbibe ethical values in an organization is the management’s commitment
towards the beliefs and values of the organization. Robbins and Judge have provided a list of some
important practices to create an ethical organizational culture. These practices are discussed as follows:

 Become a role model: Employees always learn from the behavior of senior-level managers. The
attitude and deeds of senior managers explain the type of behavior acceptable in the
organization. Thus, if the senior management adopts a behavior that is high on ethical values, a
positive message is communicated to all employees.
 Communicate ethical expectations: Sometimes, inadequate communication confuses
employees regarding the ethical values at the workplace. To reduce ethical ambiguities,
organizations must develop and disseminate an organizational code of ethics. This will help
the employees to know the primary values and ethical rules to be followed.
 Impart ethics training: No work culture can be incorporated un-less the employees are trained.
Therefore, various ethical training programs, seminars and workshops must be conducted to
rein-force the organization’s standards of conduct. Training programs help employees to get a
clear picture about the ethical practices that are permissible at the workplace. From these
programs, employees also learn how to address ethical dilemmas.
 Adopt a fair reward system: While assessing an employee’s performance, managers must offer
ratings to his/her decisions. These ratings must be measured against the organization’s code of
ethics. People who act ethically should be rewarded for their behavior, and unethical acts
should be punished.
 Provide discussion mechanisms: A formal mechanism should be created by organizations where
employees can discuss ethical di-lemmas and report unethical behavior. Ethical officers and
counselors should be there for resolving unethical behavior.
Positive organizational culture:- Organizations always aim to develop a positive culture to grow
and flourish. Positive organizational culture is nurturing, democratic and progressive in nature. Such
culture encourages and rewards the con-attribution of its employees and quickly adapts to the
constantly changing world. A positive organizational culture mainly emphasizes the following three
areas:

 Building up employee strengths: A positive organizational cuture focuses on developing

employees’ skills and abilities. This in-creases their contribution towards the achievement of an
organization’s goals and objectives. In addition, employees must be aware of their strengths so
that they can improve their productivity.
 Rewarding more than reprimanding: To promote a positive organizational culture,
organizations must reward employees even for small ethical acts instead of only instilling the
fear of punishment for any ethical misconduct. This will make employees feel valuable and
strengthen their faith in the organizational culture.
 Focusing on employee’s vitality and growth: A positive organizational culture should focus on
hiring people with the best talents and improving their capabilities and skills. In addition, it
includes conducting training programs and recreational activities and encouraging employees
to opt for advanced educational programs. These activities help employees to improve their
personal and professional skills.

Answer 3(a): Organizational culture is the collection of values, expectations, and practices that guide and
inform the actions of all team members. Think of it as the collection of traits that make your company
what it is. A great culture exemplifies positive traits that lead to improved performance, while a
dysfunctional company culture brings out qualities that can hinder even the most successful
organizations.
We must not confuse culture with organizational goals or a mission statement, although both can help
define it. Culture is created through consistent and authentic behaviors, not press releases or policy
documents. We can watch company culture in action when you see how a CEO responds to a crisis, how
a team adapts to new customer demands, or how a manager corrects an employee who makes a
mistake.

Organizational culture affects all aspects of your business, from punctuality and tone to contract terms
and employee benefits. When workplace culture aligns with your employees, they’re more likely to feel
more comfortable, supported, and valued. Companies that prioritize culture can also weather difficult
times and changes in the business environment and come out stronger.
Culture is a key advantage when it comes to attracting talent and outperforming the competition. 77
percent of workers consider a company’s culture before applying, and almost half of employees would
leave their current job for a lower-paying opportunity at an organization with a better culture. The
culture of an organization is also one of the top indicators of employee satisfaction and one of the main
reasons that almost two-thirds (65%) of employees stay in their job.
Every organization’s culture is different, and it’s important to retain what makes your company unique.
However, the cultures of high-performing organizations consistently reflect certain qualities that you
should seek to cultivate:
•  Alignment comes when the company’s objectives and its employees’ motivations are all pulling in the
same direction. Exceptional organizations work to build continuous alignment to their vision, purpose,
and goals.
•  Appreciation can take many forms: a public kudos, a note of thanks, or a promotion. A culture of
appreciation is one in which all team members frequently provide recognition and thanks for the
contributions of others.
•  Trust is vital to an organization. With a culture of trust, team members can express themselves and
rely on others to have their back when they try something new.

Employees in Mobius ltd clearly lack cohesion, motivation and commitment. The organisation’s
engagement quotient scores were below the sector benchmark of competitor organisations. During the
last organisational engagement survey track action planning, staff found it challenging to engage in a
meaningful manner with the action planning process. The company has a rank & file structure in place
and is hierarchical in its approach. More importantly as indicated in the engagement survey, employees
at Mobius Ltd seems to have significantly low levels of job satisfaction, teamwork, trust (among
themselves and the management), and expectations for future advancements (promotions and
rewards).

Organizational culture has a direct impact on employee motivation and indirectly on organizational
performance as well. The better the organizational culture, the higher the motivational level of
employees. It was observed that if organizations develop a strong culture of rewarding and
acknowledging employees’ effort, it leads to increase motivation and their performance would be
significantly enhanced. Enhancing the organizational culture through the development of strong
relationship with main stakeholders is one of the tools that can be used by a corporation to be more
efficient and competitive. It also contributes towards strengthening the company’s competitive
advantage (Surroca, Tribó, & Waddock, 2010). In this respect, a company cannot enhance its
organizational culture without focusing on it, in order to create more transparent conditions among all
stakeholders and increase competitive benefits over its rivals. Accordingly, managers should carefully
investigate the organizational culture and make certain that it maintain good relations with the
stakeholders (Kalyar et al., 2013). It seems that the organizational culture plays an important role within
an organization as it influences the managerial behavior. It affects, as well as, is affected by the main
stakeholders. This will be reflected on the company’s performance.

3(b) Cultural transformation is an evolving and developing process of shifting a company culture
that takes place based on the values and organization of your company.

The reward is a thriving, values-driven company culture that drives sustainable success. A
cultural transformation requires taking an introspective look at your company and making
changes to you shape your policies, commitments, processes, and behaviors, so they reflect the
values and beliefs of your employees. The result of a successful cultural transformation process
will be your employees knowing what your company stands for, what defines it, and what
distinguishes you from other organizations, and thriving in such working environment.A well-
rounded cultural transformation will change the way your employees think, act and deliver your
services and products to your customers. Every interaction should reflect your cultural values,
from the first time that a customer makes contact with your company to the very end of the
transaction.
Knowing how people and the organization will benefit from a successful cultural transformation
will inspire them to put effort into the process. If every employee can identify the benefits a
cultural transformation will bring, it’s easier to get them to make the changes necessary for it to
succeed. Speaking of benefits a cultural transformation will bring a company, the main ones
include: 

 Building a better work culture: Creating a better work culture is at the core of a culture

transformation, which can help with every aspect of your company from employee

retention to productivity.

 Increasing employee satisfaction: Transforming a company’s culture ultimately

creates a more inclusive environment for every employee. In turn, this increases

employee satisfaction and happiness, and when your employees feel like they are

essential to the company’s success, it allows them to see themselves as an asset rather

than a liability.

 Boosting productivity: It’s no secret that happy employees are productive employees.

A true cultural transformation will instill confidence in your staff and encourage them to

work hard.

Let us now write Mobius’s detailed culture journey plan with indicative timelines and outcome
milestones.

 Understand your current culture challenges by surveying employees, conducting focus

groups, holding meeting with top employees of the organization and with those who
impact the organization culture.

 As a company’s leadership team will be at the very center of the transformation, they
must be invested in the process and have faith that it will be done successfully. One
reason for a number being so low is because, while cultural transformation must be led
from the top, the entire organization must be committed to making the change. Hence
the need to understand the company’s culture and its challenges from the onset. 

 To create a strategy plan that match our business goal, we need to focus on the
strengths of your existing culture and on a few major points that we want to change.
Then, we must map out the desired goals we want to achieve without going overboard.
Starting with a limited, achievable number of goals that are each clear, actionable and
can be measured.
 Engage our employees. The key to engaging with employees is making them feel
involved and connected in the cultural transformation of our company. Make sure each
employee feels like they are contributing to the structural changes we are undertaking,
and that we are making an effort to understand their culture and what we expect of
them. 

 Track our progress. Just as we would with any new strategy of campaign you implement,
we need to rigorously measure each part of the transformation to see where it’s
succeeding, and where it needs improvement.