Managing Organizational Culture

Group -10 Avijit Shukla-11P014 Deepak Jangid-11P017 Gaurav Chauhan -11P020 Nitin Sharma -11P030 Raghav Pandey- 11P035 Sourabh Manna- 11P053

think and feel .UNDERSTANDING CULTURE: ‡Ambiguous concept ‡Misunderstood as a cultural phenomenon ‡Set of people with common history and stability Pattern of basic assumption Invented and developed by a given group As it learns to cope with its problems of external adaptation and internal integration Has worked well to be considered valid and correct way to perceive.

Organization No overarching culture due to lack of common history or frequent turnovers Strong because of long shared history and shared intense experiences .

1 Observable artifacts:  Physical layout  Dress code  Manner of addressing  Smell and feel  Emotional intensity Problems: ‡Palpable ‡Difficult to ‡decipher 2 Values:  Norms 3 Basic underlying assumptions: Perceptions  Ideologies Thought Process  Charters Feelings  Philosophies Behavior Open ended interviews Problems Difficult to know if the dimensions are relevant and salient in that culture  Once understood becomes easier to decipher the implicit meanings in the various phenomenon one observes .

Dominant The organization·s relation to its environment Pragmatic Nature of reality and truth Submissive Harmonizin g Reliance/wis dom Social consensus Pro-active Nature of human activity Basic orientation Nature of time Fatalistic Harmonizin g Time units Deadlines/c onduct .

Nature of human nature Good/neutral/evil Homogeneity vs diversity Pro-active Perfectible/fixed Fatalistic Harmonizin g Distribute power or affection Competitive or cooperative Nature of human relationship Individualism or groupism Autocratic/Paternalistic Collegial/Participative .

CULTURAL DYNAMICS: SOCIALIZATION Dimensions along which socialization processes can vary Group versus Individual Formal versus Informal Self-destructive and reconstructing versus self enhancing Serial versus Random Sequential versus disjunctive Fixed versus Variable Tournament versus contest Socialization consequences Custodial orientation or total conformity Creative individualism Rebellion or the total rejection of all assumptions .

Leaders can articulate a new direction and set of assumptions thus providing a clear and new role model Key positions in the organization may be filled with new incumbents Leaders may reward the adoption of new directions and punish adherence to earlier directions Organization members may be coerced into adopting new behaviors that are more consistent with new assumptions Myths can be exploded that preserve dysfunctional traditions Leaders may create new emotionally charged rituals. symbols and artifacts using the embedded mechanism.CULTURAL DYNAMICS: GUIDED EVOLUTION Role of leaders in bringing desired cultural changes Leaders can highlight the threats to the organization and thereby unfreeze the present system. .


sharing of information and a spirit of openness to new ideas ‡ Freedom to express and accept out-of-box thinking ‡ May allow tolerance of poor performance ‡ Exaggerated concern for consensus ‡ May lack formal/organizational structure Solidarity ‡ Based on common tasks mutual interests or shared goals ‡ Generates high degree of strategic focus. equality-of-suffering effect ‡ Develops a strong sense of trust ‡ If the strategy is not good it will lead to corporate suicide ‡ Cooperation occurs only when advantage to individual is clear ‡ Lack of cross sectional collaborative overlapping .Sociability ‡ Measure of emotional noninstrumental relations ‡ Social interaction valued for own stake ‡ Fosters teamwork. swift response and nontolerance of poor performance ‡ Strict standards.


Soaring of revenues Thomas Watson Sr.Recording to International Business Machines Company by Thomas Watson Sr. However. ‡ Ran the company for 42 years ‡ Had a µsuperstitious¶ learning style ± drew lessons from his life and implemented them in the company ‡ Was impressed by his own business philosophies ‡ Led to an unwritten dress code ‡ Alcohol became prohibited in the company ‡ Intolerant of any complaint made by customers ± Threatened Bethlehem Steel when it gave recommendations ‡ Executed lay-offs and salary reductions. over time he realized the importance of satisfied workers and his views became progressive .Overview -1924 onwards € € € IBM was born in 1924 Name changed from Computing ± Tabulating.

respectively Responsible for pushing IBM into electronics .led the development of IBM 701 IBM¶s revenues exploded Tom Watson Junior ‡ Ran the company for 15 years ‡ Codified the philosophy of 3 basic beliefs which the company could not change under any circumstances ± Respect for individual ± Customer Service ± Excellence .Overview -1950 onwards € 1950s ƒ ƒ ƒ Tom Watson Junior became president in 1952 and CEO in 1956.

¶ Market Driven Quality¶ focussing on µEmpowerment¶ and New pay-for-performance incentive system These steps could not prevent the company¶s declining profits .Overview -1950 onwards € 1960s Introduction of the revolutionary and highly successful Systems/360 line € IBM continued to be a one product-line company for the next 20 years € 1965 ± 1985 ƒ Growth rate ± 14% and average gross margin ± 60% € John Akers became the CEO in1985 ƒ Growth declined drastically ƒ IBM faced overcapacity problems ƒ John Akers ‡ Was responsible for decentralization ‡ Started to overhaul IBM¶s operations and management as soon as the sales /profits started declining ± Slashed manufacturing capacity and work force ± Decentralized management ± Launched a culture change program.

µan outsider¶. became the CEO Lou Gerstner ‡ Recognized the arrogant attitude of the company ‡ Understood that IBM¶s challenges lay in the absence of focus on culture. teamwork.000 employees had been let go share prices had declined drastically € More € IBM¶s € Lou Gerstner.Overview -1993 onwards € IBM had suffered its first loss than 100. customers and leadership in the company ± µCult like¶ culture ± Narrow-minded and inward-focussed view .

dedicated people make it all happen. particularly when they work together as a team We are sensitive to the needs of all employees and to the communities in which we operate We operate an entrepreneurial organization with a minimum bureaucracy and a never ending focus on productivity .Lou Gerstner Introduced 8 principles in place of Tom Watson Jr·s Basic Belief The marketplace is the driving force behind everything we do Our primary measures of success are customer satisfaction and shareholder value We operate an entrepreneurial organization with a minimum bureaucracy and a never ending focus on productivity We never lose sight of our strategic vision We think and act with a sense of urgency Outstanding.

Changes made Changed the µno alcohol¶ policy Abolished IBM¶s dress code Limited the use of overhead transparencies or µfoils¶ ± wanted people to emphasized on business Worked towards changing IBM¶s µcontention system¶ Tried to make the senior management focus on the competition Changed IBM¶s measurement and rewards system IBM was changed to market driven rather than process driven enterprise Things that were not changed Focus on customer Respect for individual Maintained the core competency Protected the fundamental R&D budget .

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