Organisational culture

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  2. 2. WHAT IS ORGANISATIONAL CULTURE? A common perception that is held by the members associated to the organization. There is also something that is called a subculture which is the miniculture within the organization that is defined by the department designation and geographical separation. A strong culture is the one in which companys core values (primary values) are strongly held and discussed. 2
  3. 3. Origins of Organizational Culture Origins lies with: The founder who got strong values and vision External environment for example : Customer demand. Nature of the work and mission and the goals of the organization 3
  4. 4. Typical American Organizational Culture U.S. companys decision making is quick. Contribution of individual is very important as linked to company goals Focus on Return On Investment (ROI) or the end result. Even if they are not sure, they make sure to complete the task given. U.S. is multicultural, which means there are so many different way to think. The meetings are fewer and less time. Contacting clients by email or on the phone more natural in conducting business Work-Life balance is a must. 4
  5. 5. Typical Japan organizational culture Decision making is in stages, cautious and conservative backed by meetings and documentation. Require individual contribution to the whole group. Japanese also focus on ROI, however, they emphasize the process on how to get there. If the Japanese feel that its possible to achieve most likely 100%, they dont say Yes. Basically a Japanese company is organized by Japanese. Meetings are very common in large companies. They dont permit working at home. In Japan, priority is on the work life. It is given work is the center of life. 5
  6. 6. Theory Z of William G. Ouchi Sociological description of the humanistic organization Based on both American and Japanese style of management. This theory can lead to : greater employee job satisfaction, lower rates of absenteeism Higher quality products. Better overall financial performance for U.S. firms adapting It. 6
  7. 7. Features of Theory Z Long term employment : Employees should not be treated as replaceable cogs in profit making machinery. Companies should make life long commitment to them and expect loyalty. 7
  8. 8. Consensual Decision Making The Type Z organization emphasizes communication, collaboration, and consensus in decision making 8
  9. 9. INDIVIDUAL RESPONSIBILITY Type Z organizations retain the emphasis on individual contributions that are characteristic of most American firms by recognizing individual achievements 9
  10. 10. INFORMAL CONTROL WITH FORMAL ORGANIZATIONS The Type Z organization relies on informal methods of control, but does measure performance through formal mechanisms. 10
  11. 11. MODERATELY SPECIALIZED CAREER PATH The Type Z organization adopts a middle-of-the-road posture, with career paths that are less specialized than the traditional U.S. model but more specialized than the traditional Japanese model. 11
  12. 12. HOLISTIC CONCERN The Type Z organization is characterized by concern for employees that goes beyond the workplace. This philosophy is more consistent with the Japanese model than the U.S. model. 12
  13. 13. Significance of organizational culture Communicates info about overall acceptable and unacceptable behavior. Provides common frame of reference for managerial decision making. It generates heroes. Enhances the stability of the social system. Defines the boundary between two organizations 13
  14. 14. It is not significant also!!!!! It acts as a barrier : To change To mergers and acquisitions To diversity. 14
  15. 15. ORGANISATIONAL MODEL Harrison gives an organizational model. Indicates that the four dimensions of culture orientation are measured. Measured with two modes of operation, Formalization Centralization 15
  17. 17. POWER CULTURE Represented as spiders web with all important spider siting at the centre The closer you are to the spider, the more influence you have. People response quickly to the situations,but depends on people at centre. Performance is judged on results Success is accompanied by low morale and high turnover. 17
  18. 18. ROLE CULTURE Represented as building supported by columns. Each column has a specific role playing keeping up the building Position is the main power source Efficiency based on rationality of the allocation of work and responsibility Successful in a predictable market Role culture finds it difficult to respond to change. Frustrating for ambitious people 18
  19. 19. TASK CULTURE Its is job or project oriented Emphasis is on getting the job done It is a team culture where outcome of the team works takes precedence over individual objectives Organisations can respond rapidly as each group ideally contains all the decision making powers required. Control is difficult,managed by senior managers. When resources are limited, it tends to shift towards role culture. 19
  20. 20. PERSON CULTURE Organisation exists only to serve individuals within it. Not by many organisations as companys objective is more important People do what they are good at and are listened to for all their expertise Consultant and freelance workers have this persons orientation. 20
  21. 21. EXAMPLES Google The company has an informal product development process gives staff members access to the co-founders and chief executive. DreamWorks Animation DreamWorks executives strive to foster creativity Encourages employees to take risks and giving staff members the opportunity to engage in spontaneous discussions. company has an astonishing 97 percent employee retention rate. Delivers cloud computing solutions for businesses around the world. Staff members collaborate by sharing ideas via a social networking app Chatter. T app allows employees to analyze data, compare drafts of documents, and share ideas in real time. Real-time data sharing eliminates the lag associated with the use of email and other older methods of communication 21
  22. 22. How employees learn culture? Stories Rituals Symbols Shared values Common assumptions Subculture 22
  23. 23. STORIES Japanese car Lexus has enjoyed a reputation for quality and service by such stories as company flying in repairmen to help customer who had problem with car and could not find local repairmen 23
  24. 24. SYMBOLS 24
  25. 25. Symbol communicate organizational culture by unspoken messages Certain code of dress or logo can reflect companies core values. Example : Mary kay cosmetics, leading cosmetics company in US award top sales performers a diamond bumblebee. 25
  26. 26. SHARED VALUES Deeper level of culture. Reflects how individuals behave. EX: TATA GROUP TYPES OF VALUES Instrumental values Ex: like honesty, sincerity, ambition, independence Terminal Values Ex : like happiness, self respect, family security, recognition, freedom, 26
  27. 27. COMMON ASSUMPTIONS Deepest and the most fundamental level of cultural diagnosis Manifest themselves in individuals that violation of these is unthinkable EX: Chaparrel steel, an American company reflect three assumptions People are basically good : companys emphasis on trust. People are willing to learn, grow and achieve: Companys training programmes. People are motivated by challenges : Common goal settings and objectives. Another example : IBM operating in Japan in 1960s. 27
  28. 28. Subculture and Counterculture Subculture has its own pattern of values and philosophy. For example, Ford motor company want to bring car model that would become highest selling car in America . Marketing and production dept gave R&D complete freedom to innovate. Lead to creation of : TAURUS Counterculture hold beliefs and values that contradict the values of organization itself. Example : John DeLorean of GM, holding top management position was against companys value of respect for authority and team work. 28
  29. 29. How culture forms?29
  30. 30. Keeping culture alive Selection Concerned with how well the candidates will fit into the organization. Provides information to candidates about the organization. Top Management Senior executives help establish behavioral norms that are adopted by the organization. Socialization The process that helps new employees adapt to the organizations culture. 30
  31. 31. Managerial Decisions Select new employees with attitudes and personality consistent with high service orientation. Train employees to be more customer oriented. Change organizational structure to give employees more control Conduct performance appraisals based on customer focused employees behaviour 31
  32. 32. A socialization model32
  33. 33. Stages in socialization33
  34. 34. Creating an ethical organizational culture CHARACTERISTICS High tolerance for risk Low to moderate in aggressiveness Focus on means as well as outcomes Practices that promote ethical culture Being a role model. Communicating ethical expectations. Provide ethical training. Visibly rewarding ethical acts and punishing unethical acts 34
  35. 35. Creating customer responsive culture Variables shaping customer responsive relationship 1. The types of employees hired by the organization. 2. Low formalization: the freedom to meet customer service requirements. 3. Empowering employees with decision-making discretion to please the customer. 4. Good listening skills to understand customer messages. 5. Role clarity that allows service employees to act as boundary spanners. 6. Employees who engage in organizationa