MSL733

Lecture No - 7
Date 16-03-2022

PROF. (DR.) ARC 16-03-2022 MSL733, LECTURE - 7

Organizational Culture

PROF. (DR.) ARC 16-03-2022 MSL733, LECTURE - 7

 Recap
1. We have upto now understood the requirement of an organization for any
activity even if these organizations are family run, section 8 or
multinational companies. We have studied about the types of
organization structures, the design and the role & responsibilities of
various level in the organizations.
2. We have understood how the organization analysis its business
environment and structures its vision, mission & goal.
3. We have understood issues which affects the ecosystem of the
organization both from Internal and External Environment and players.
4. We have understood why an organization should have a corporate plan
and how that is linked to the vision, mission and goal of the organization.
5. Today we will discuss the culture and ethics of the organization and how
that encompasses the employees and the management.
PROF. (DR.) ARC 16-03-2022 MSL733, LECTURE - 7
 What is Culture?
• Values

• Norms,

• Guiding beliefs,

• Understandings that are shared by members of an organization

• Taught to new members as the correct way to think, feel, and behave.

PROF. (DR.) ARC 16-03-2022 MSL733, LECTURE - 7

 The Mission Culture

• Emphasis on a clear vision of the organization

• On the achievement of goals

• It translate the vision into measureable goals

• It creates high level of competitiveness

• It encourages profit making orientation

PROF. (DR.) ARC 16-03-2022 MSL733, LECTURE - 7

 The Clan Culture

• Focuses on involvement and participation of the organization’s member.

• In this culture it is an important value of taking care of employees.

• It encourages and releases the creativity of employees.

• Generate belongingness and loyalty of employees towards the organization.

PROF. (DR.) ARC 16-03-2022 MSL733, LECTURE - 7

 The Adaptability Culture
• Adaptability culture focus on the external environment.

• It is flexible and changes to meet customer needs.

• Culture and beliefs support the capacity of the organization to detect,

interpret and translate signals form the environment.

• This type of company react quickly to environmental changes.

• It also actively creates: Changes, Innovation, Creativity and Risk taking

ability
PROF. (DR.) ARC 16-03-2022 MSL733, LECTURE - 7
 The Bureaucratic Culture
• It is a culture which encourages consistency and a stable environment.

• Has a methodical approach to doing business.

• Supports a traditional age old policies and practices

• Results are not related on personal initiative but more credit is given to
consistency and conformity

• Managers who are shifting form bureaucratic culture because of need for
flexibility in business environment find it very difficult to adopt to new
system culture. PROF. (DR.) ARC 16-03-2022 MSL733, LECTURE - 7
Relationship of Environment and Strategy to
Corporate Culture

PROF. (DR.) ARC 16-03-2022 MSL733, LECTURE - 7

 Essence of Organization Culture

When we think about culture we are think about the glue, the holds the
organization together, but what does it really mean.

There are three levels of organizational culture :

• Artifacts
• Value & Beliefs
• Underlying Assumption

PROF. (DR.) ARC 16-03-2022 MSL733, LECTURE - 7

ABOVE WATER

BELOW WATER

ORGANIZATION CULTURE CAN

BE EXPLAINED BY THIS ICE
BERG

PROF. (DR.) ARC 16-03-2022 MSL733, LECTURE - 7

 ARTIFACTS
• SYMBOLS
• UNIFORM
• DISPLAY
• INTERIOR

PROF. (DR.) ARC 16-03-2022 MSL733, LECTURE - 7

 ARTIFACTS
• SYMBOLS
• UNIFORM
• DISPLAY
• INTERIOR

VALUES & BELIEFS

(what cannot be seen)
What They Do
Why They Do
How They Do

PROF. (DR.) ARC 16-03-2022 MSL733, LECTURE - 7

 ARTIFACTS
• SYMBOLS
• UNIFORM
• DISPLAY
• INTERIOR

VALUES & BELIEFS

(what cannot be seen)
What They Do
Why They Do
How They Do

UNDERLYING
ASSUMPTIONS
Actual Culture

PROF. (DR.) ARC 16-03-2022 MSL733, LECTURE - 7

Levels of Corporate Culture

PROF. (DR.) ARC 16-03-2022 MSL733, LECTURE - 7

Constructive Versus Non-Constructive Cultures

PROF. (DR.) ARC 16-03-2022 MSL733, LECTURE - 7

 Symbols
Stories and
Myths

Power
Relationships
Organization
Culture Organization
Structues

Rites and
Ceremonies Control
System

PROF. (DR.) ARC 16-03-2022 MSL733, LECTURE - 7

Organizational Chart for Nordstrom
(Retail Business)

Reverse Pyramid

PROF. (DR.) ARC 16-03-2022 MSL733, LECTURE - 7

Thank You

PROF. (DR.) ARC 16-03-2022 MSL733, LECTURE - 7