ORGANISATIONAL CULTURE

ORGANISATIONAL CULTURE

 ORGANISATIONAL CULTURE:
• organisational culture has assumed considerable importance now a days
because of its impact on employee performance and satisfaction here we
discuss the nature, functional and dysfunctional consequences, creation
and sustenance, way of changing of org culture.

Page  2
ORGANISATIONAL CULTURE

 Def:-it has been defined as philosophies,ideologies,values,

assumptions,beliefs, expectations, attitudes and norms that knit an org
together and are shared by its employees.
 The following ten characteristics helps us to understand the nature of
culture better.
Individual initiative
Risk tolarance
Direction
Integration
Management support
Control

Page  3
ORGANISATIONAL CULTURE

Identity
Rewad system
Conflict tolarance
Communication patterns

Page  4
HOW CULTURE IS CREATED

 HOW CULTURE IS CREATED IN ORG:

 Culture is essentially learnt.
 What applies to the learning process applies to culture also. There are
some model which can comprenensively explain the culture creation.
 CULTURE FORMATION AROUND CRITICAL INCIDENTS:
 Norms and beliefs arise around the way members respond to
critical(situation) insidents.Somthing emotionally charged or mental
disorder behaviour may happen, such as an attack by a member an the
leader.Because everyone witness it and because tension is high when the
attack occurs, the immediate next set of behaviours teds to create a
norm.

Page  5
HOW CULTURE IS CREATED

Ex:- if the leader counter attacks the subordinates(have the same openion)
concur with silence or approval and that the offending member indicates
with an apology that he or she accept his or her letter.
by this example we came to know that we do not attack the leader of
the group the norm may eventually if the same pattern occurs. If the
leader and the group consistently respond differently to attacks, a
different norms will arrise.

Page  6
HOW CULTURE IS CREATED

 IDENTIFICATION WITH LEADERS:

 A second mechanism of culture is the modelling by leader figures that
permits group of members to identify with them and internalism their
values and assumption.
 When groups or org are first form, there are usually dominant figures or
“founders” who they have a mission or vision of what the org should be
the founders will have idea thay also typically have a basis on how to get
the idea fulfilled.
 The org culture results from the interaction b/w
 1.the founders basis and assumptions.
 2.what the original members who the founders initially employee learn
subsequently from their own experiances.

Page  7
HOW CULTURE IS CREATED

 Ex:- late J R D expressed essential characteristics of culture creation. His

supportive consultive role, his belief on professionalism, and assumption
that only honesty and fair dealing will pay have made the vast TATA
dealing what it is today.

Page  8
HOW IS CULTURE LEARNT BY EMPLOYEE IN ORG

 HOW IS CULTURE LEARNT BY EMPLOYEE:

 Culture is transmitted to employees through number of means. The most
effective means are stories, rituals ,material symbols, language and principles.
 STORIES:- founding fathers of org emerge as heroes. The sacrifices, valorous
deeds, and integenuity is the difficult initial years of the org and later during
crises periods are embellished into stories.
 RITUALS:-rituals refer to any practice or pattern of behaviour repeated in a
preseribed manner. Key values of org are reflected in rituals.
 Ex:- M E S coolege banglore is a primier instution dedicated to excellence in
education and perpetuation of indian ethos(it’s excellence in education is the
key value of the M E S college ).

Page  9
HOW IS CULTURE LEARNT BY EMPLOYEE IN ORG

 MATERIAL SYMBOLS:- the layout of corporate headquarters ,the types

of automobiles top excentives are given,the presence or absence of
corporate aircraft ,size and layout of officers ,the elegance of furnishings,
execntives perks ,dress ,attire and like represent materialsymbols .
these symbols convey to employees who is important ,the degree of
egalitarianism desired by top management ,and tke kinds of behaviour
that are appropriate .
 LANGUAGE:-many org’s and units with in org’s use laguage as a way
to identify members of a culture or subculture.By learning this
language ,members attest to their acceptance of the culture and in so
doing , help to preserve it .

Page  10
HOW IS CULTURE LEARNT BY EMPLOYEE IN ORG

 STATEMENT OF PRINCIPLES:-the last way in which culture is

transmitted is through the direct statements of principles .Some org’s
have explictly written their principles for all to see .Some other companies
make explicit the moral aspects of their culture by publishing codes of
ethics.statements of a companies the newly hired employees to
understand the culture of their org’s .

Page  11
HOW IS CULTURE SUSTAINED

 HOW IS CULTURE SUSTAINED:-once a culture is created ,there are

practices with in the org that help keep it alive .three such practeases are
selection process ,actions of top management and socialisation methods.
 SELECTION:- the main purpouse of selection process is to hire right people
for right job’s.when,for a given job, two or more candidates ,with identical skils
and abilities,are availible, final selection is influenced by how well the
candidates who can culturally match org culture,selection hepls sustain
culture considerably.
 TOP MANAGEMENT:- the action’s of top management also have a major
impact on the org culture through what they say and how they behave ,the
senior executives establish norms that filter down through the org as to
whether risk taking is desirable ;howmuch freedom managers should give to
their subordinates; what is the appropriate dress ;what action will play off in
terms of pay raises –promotions ,other rewards .

Page  12
HOW IS CULTURE SUSTAINED

 CREATION AND MAINTANANCE OF ORGANISATIONAL CULTURE

Top management
Critical insidents

Selection criteria Org culture

Org’s founders socialisation

Page  13
HOW IS CULTURE SUSTAINED

 SOCIALISATION:- no matter how good job the org does in hiring people,
new employees are not fully involved in the org culture.because they are
least familiar with org culture,new employees are potentially most likely to
distrub the beliefs and customs that are in palce.the org will ,therefore
want to help new employees abopt to its culture.the aboption process is
called socialisation.
 Socilisation can be conceptualised as a proess madeup of three stages
• Prearrival
• Encounter
• Melamorphosis

Page  14
HOW IS CULTURE SUSTAINED

 Prearrival stage :-Encompasses all the learnin g that occures before a

new member joins the org.
 Encounter stage:- the second satge ,the new employees sees what the
org is really like and confronts the likelyhood that expectations and
reality may diverge .
 Melamorphosis:- the relatively long lasting changes take place . The new
employee masters the skills required for his or her new role and makes
adjustement to his or her work groups values and norms.

Page  15
IMAPCT OF CULTURE ON ORG EFFECTIVENESS

 Impact of culture on org effectiveness is both functonal as well as

dysfunctional .
 Talking about the dysfunctional , it may be stated that culture leads to “group
think”.
 Culture makes an org clan (group of people related by blood or marriage)
 The clan form in an industry possess a few potentially disabling weakness
 The clan always tends to develop xenophobia(an irretational fear of froigners
or strangers).
 Another problem form welll-knit (strongly and firmly constructed) culture relate
to the managment of diversity(the condition or result of being changed).
 Strrong culture put considerable pressure on employees to confirm.

Page  16
IMAPCT OF CULTURE ON ORG EFFECTIVENESS

 Modren orgs are known for diversity of workforce.Workforce diversity is

being accepted and even encouraged .Obviously there developes conflict
between the need for conformity and the advantage of having employees
with diverse behaviour and strengths.
 Culture acts as a barrier to mergers and acquisitions .
 Inrecent years cultural cpmpatability has become the primary concern .

Page  17
IMAPCT OF CULTURE ON ORG EFFECTIVENESS

 On the positive side culture has impact on control,normative order ,

employee performansce and satisfaction
 Effective control:-org culture serves as a control mechanism in directing
behaviour . As the culture is diffused through out the org ,people
understand what they are supposed to do and waht not to do.
 When individuals are not in accordance with the beliefs and values of the
culture ,managers and co-workers will step-in and insist on corrective
action.
 A strong culture is characterised by shared beliefs and expectations to
which all must adhere.

Page  18
IMAPCT OF CULTURE ON ORG EFFECTIVENESS

 Normative order:-closey linked to effective control is the use of norms to

guide behaviours.These expectations regarding appropriate and
inappropriate behaviours are greatly influencing by culture and strong
cltures have both consious and intensity regarding these norms.
 Everyone understands the culturally bsaed norms,and there is strong
support for them .
 In weak cultures ,consensus(agreement of the majority in snetiment or
belief) may be present but intensity is not.
 This comaprision helps to explain why some companies are very
successful at what they do.
 It also helps to explain why orgs with strong cultures often have great
difficulty in changing their stratagies and behavirours.

Page  19
IMAPCT OF CULTURE ON ORG EFFECTIVENESS

 Performance and Satisfaction :-org culture has its impact on

performance and satisfaction of org members,but not in equal proportion.
 there is relatively strong relationship between culture and satisfaction,
but this is moderated by individual needs and the culture .
 In general satisfaction will be the highest when there is concruence( the
quality of agreeing)between the individual needs and the culture.
 Requisites :- may it also be remembered that the impact of culture on org
is function of three factors
Direction
Strength
Pervasiveness

Page  20
IMAPCT OF CULTURE ON ORG EFFECTIVENESS

 Direction:- it refers to the path indicates by the org’s culture .direction may
be positive or negitive.
 Strength:- it is defined by the pressure it can exert on org members.
strength is largely affected by the length of time the culture has existed
and turnover among members .
 A strong culture with positive direction will have considerable impact on
org effectiveness.

Page  21
IMAPCT OF CULTURE ON ORG EFFECTIVENESS

 The Pervasivenes:- or called as Homogenity of the culture is related to

the degree to which a culture is characteristic of org.
 Org typically have a number of subcultures with in various divisions or
departments.the more distinct the subciltures and the greater their
strength the less homogenious the overall org culture willbe.
 This turn reduces the impact hat org culture will have on org
effectiveness.

Page  22
 THANK U

Page  23