Organizational Culture

Team 8
Anand Babu (27002)
S.Haareesh ( 27017)
R.Muthuraj (27027)
Naren Kartic (27029)
Roshni (27052)
Vikram S (27059)
Leader’s role in shaping & reinforcing culture

Leadership elements that affect managing culture:

i. Focus and attention
ii. Reaction to crises
iii. Behavior
iv. Rewards allocation
v. Hiring and firing

Enron The gap between words and deeds

Ethics
Shows how leader’s behavior affects
organizational culture.
 Focus and Attention
• Leaders communicate priorities and beliefs to organization.
• Leader’s focus and consistency in paying attention determines if the rest of the
organization receives clear signals or is left to decipher the leader’s inconsistent
views

Reaction to Crises
Enron Jeffery Skilling paid attention to profits at all costs and so rest of the
organization could do anything as long as results are shown

• During a crisis – Emotions are heightened; Learning is intense.

o M&A: Willingness to change, Transparency and Communication.
o Economic downturn: Laying off and right-sizing.
• Employees pay careful attention to this as they perceive it to be company’s true
colors.

Enron Managers resorted to anonymous whistle blowing, blame shifting and

finger pointing just before declaring bankruptcy.
Behavior
• Employees emulate leader’s behavior.
• Leaders should provide proper behavioral cues to employees.

Managers broke the law for profits and escaping.

Enron Ignored and denied that problems existed.

Rewards Allocation

• Well allocated rewards to improve consistent positive behavior.

• Consistency in reward allocated and promised.

Enron Rewards provided to employees who increased results irrespective of the means used.
Performance reviews were made public to ridicule poor performers.
Organizational Socialization

• Process through which a new employee learns to adapt to an

organizational culture.
• individuals learn the values, expected behaviors, and social
knowledge necessary to assume their roles.
• Learning Process
• Adjustment Process
Stages of socialization
Realism Congruence

1. Anticipatory Socialization
Job demands
• Task
• Role
2. Encounter • Interpersonal

Mastery
3. Change and Acquisition
Performance
Satisfaction
Mutual influence
Low levels of distress
Outcomes of Socialization Intent to remain
 Pre-Employment Socialization conflicts

B: Applicant polishes up the

résumé to look good

Individual Organization
Attracts Attracts
Organization Individual
C: Applicant avoids B D: Company avoids
asking important using valid
C D selection tests that
questions that
may be awkward. might scare away
A applicants
Individual Organization
Selects Selects
Organization Individual

A: Firm “sells” the job and

company, hides negative info
Assessing Organizational Culture

• Qualitative and Quantitative Methods

• Quantitative method: good precision, Comparability and

objectivity
Eg: Questionnaires

• Qualitative method: detailed , descriptive and Unique

Eg: Interviews and observations
Quantitative method : organizational culture
inventory
• OCI focuses on behaviours that members believe are required to fit in and meet
expectations within their organization.

• Measures 12 cultural styles packed into 3 clusters (4 under every cluster)

• Constructive Cluster :
Members are encouraged to interact with others and approach tasks in ways
that will help them meet their higher order satisfaction needs. They are given by
following styles

• Achievement
• Self-actualizing
• Humanistic-Encouraging
• Affiliative
Quantitative method : Organizational culture
inventory

 Aggressive/Defensive Cluster:
Members believe they must interact with people in ways that will not threaten their
own security. They are given by following styles

 Oppositional
 Power
 Competitive
 Perfectionist

 Passive/Defensive Cluster:
Members are expected to approach tasks in forceful ways to protect their status and
security. They are given by following styles
 Approval
 Conventional
 Dependent

QUANTITATIVE METHOD : Kilman – Saxton Gap
survey

• Survey that focuses on what actually happens and on the

expectation of others in the organization
• Two underlying dimensions of cultural norms
(1) technical versus people
(2) short term versus long term
• Survey has 2 parts
Part 1 – Assesses the actual norms that is present
Part 2 - Assesses the desired norms that will improve group's
performance, job satisfaction, and morale.
• A culture graph profile is graphed
QUANTITATIVE METHOD : Kilman – Saxton Gap
survey

• Pin points Culture-Gaps that are barriers to organizational

success
Task Support technical in nature ,short time frame.
Task Innovation technical in nature ,long time frame
Social Responsibility people orientation , short time frame
Personal Freedom people orientation, long time frame.
Triangulation

• Use of multiple methods to measure organizational culture

• Survey at Rehabilitation
• Methods adopted
– Self – administered questionnaires
– Personal Interview
– Observation done by trained observers
• Better understanding , a complete picture
Changing Organizational Culture

• Why does an organization's culture change?

Merger and Acquisitions:
• The case of AOL - Time Warner
• The case of Daimler - Chrysler

Workforce Diversity :
• Research comparing foreign employees working in an MNC with
employees working in different organizations within their own countries.
• Results were surprising.

Why is the Change so difficult?

• Unconscious assumptions
• Need to unlearn to learn
Interventions for Changing Organizational
Culture
Hiring and CULTURE Removing
socializing members who
members who reject the new
fit in with new culture
culture

Culture
communication Changing
behavior

Examining
justifications for
changed
behavior
 Contd.

• Change the behavior of employees in the organization.

• Managers must ensure that the change in behavior results in buying a
new set of values of the organization.
• Cultural communication is essential to deliver the values of the
organization to its sub-ordinates.
• Organization can revise its selection strategies to suit its current culture.
• Organization can reshape its work force by hiring members who fit in the
culture and remove people who reject it.
• The process of cultural change happens gradually over a long period of
time.
Evaluation of Cultural change:
• Cultural change can be successful only if the behavior is intrinsically
motivated.
• Example AT&T – slow and painful change
Developing a Global Organizational Culture

• Global corporations suffer from conflicting process of

centralization and decentralization
• Guidelines to create a global culture
– Mission statement – clear and simple
– Effective flow of information
– Create matrix minds among managers
– Create global career paths
– Use cultural differences as a major asset
– Unified training efforts
Developing an ethical Organizational culture

• Implementation of code of ethics and its effects

• Role of Organizational culture on ethical behavior
• Mutual Trust between the employee and organization is
essential
• Violations are often justified by the culprits
Unleash employee’s creativity and innovation

Components of the creativity Steps in the creative process

Prepare to be
Skills in creative
the task
domain
Skills in
Intrinsic
creative Allow ideas
motivation
thinking to incubate

Creativity
Document
Insight

Verify ideas
Promoting creativity in organizations

Training people to be Developing a creative

creative
• Openness to new ideas
• Take enough time to think
• Divergent thinking
work environment
• Autonomy
• Exposure to creative
people
• Cross pollinate the ideas
• Make Jobs Interesting
• Diversity
Organizational Innovation process

Progress
Stage 4
Stage 1 Stage 2 Stage 3 Stage 5
Testing & Success End
Setting the Setting the Producing the Assessing the
Implementing
Agenda stage ideas outcome
the Ideas Failure
End

Individual or
Motivation
Team
Productivity

Motivation

Motivation
Managerial Implications

• Downsizing and restructuring trend – maintaining an organizational

culture is a challenge

Globalization Workforce
Diversity

Challenges Organizational
and Effect change-
demand

Ethical Behavior
Technology
 Managing Organizational Culture

Manipulating
Artifacts,
Communicating
Values

Techniques

Socialization Process Personal Enactment

of Managers
 Summary!

Levels & Three

Three
What is Four
Visibility Basis theories
theories
organizational organizational
Artifacts & culture-
culture-
culture functions
values performance
performance

Leaders Role organizational

Changing
in Shaping & socialization Assessing
organizational
Reinforcing for culture
culture
Culture newcomers