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8/9/2019 Organisation culture &Climate
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ORGANIZATIONAL CLIMATE & CULTURE
Definition:Organizational culture refers to a system of shared meaning held bymembers that distinguishes the organization from otherorganizations.
The research suggests that there are seven primary characteristicsthat in aggregate, capture the essence of an organizations culture.1. Innovation and Risk Taking2. Attention to Orientation3. Outcome orientation4. People Orientation5. Team Orientation6. Aggressiveness7. Stability
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ORGANIZATIONAL CLIMATE & CULTURE
Uniformity of Culture:
A common misconception is that an organization has auniform culture. An organization culture is a commonperception held by the organizations member everyone in theorganization would have to share this perception. However, allmay not do so to the same degree. As a result, there can be adominant culture as well as subcultures throughout a typicalorganization.
Dominant Culture is a set of core values shared by a majorityof the organizations members. For e.g. At Hewlett Packard,most of the employees seems to share a concern for product.Innovativeness, product quality, and responsiveness tocustomer needs.
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ORGANIZATIONAL CLIMATE & CULTURE
Subculture is a set of values shared by a minority usually asmall minority, of the organizations members. It reflectcommon problems, situations or experiences that membersface. These subcultures are likely to be defined by dept,designations and geographical separation. The purchasing
dept, for e.g. can have a subculture that is uniquely shared bymembers of that dept. It will include the CORE VALUES of the dominant culture plus additional values unique tomembers of the purchasing dept.
CORE VALUES : The primary or dominant values that areaccepted throughout the organization.
STRONG CULTURES: Cultures in which the core values areintensely held and widely shared.
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ORGANIZATIONAL CLIMATE & CULTURE
Beginning of Organizational Culture: It can be developedin a number of ways, the process usually involves some versionof the following steps:
1. A single person (founder) has an idea for a new enterprise.
2. The founder brings in one or more other key people andcreate a core group that shares a common vision with thefounder.
3. The founding core groups begins to act in concert to createan organizations by raising funds, obtaining patents,incorporating, locating space, building and so on.
4. At this point, others are brought into the organization, and acommon history begins to built.
Example: Motorola, Mac Donalds and Wal-Mart.
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ORGANIZATIONAL CLIMATE & CULTURE
MOTOROLA:Establish by Paul V. Galvin in 1928
Core Values Constant Renewal
Awarded Malcolm Baldrige National Quality Award.
Galvin Described Cultural Values of quality and customer service The paramount idiom in our Company is total customersatisfaction. And total in our case means total. It does not mean a lot,it does not mean best in class. It means every thing.
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ORGANIZATIONAL CLIMATE & CULTURE
McDonalds:Started with multimixture machine.
Franchise bought by Ray Kroc
Core Culture: Quality, Cleanliness, Service and Price.
His values are his thoughts on cleanliness If you have got timeto lean, you have got time to clean.
Competition: When you are green you grow, when you are ripe,you rot.
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ORGANIZATIONAL CLIMATE & CULTURE
Socialization: The process that adapts employees to theorganizations culture:
STARTCareful Selection
of entry levelcandidates
Humility- inducingexperiences promote
openness to wardaccepting organizations
norms & values
In-the trenchestraining leads tomastery of a core
discipline
Rewards and controlsystems are meticulously
refined to reinforce behaviour that is deemed pivotal to success in the
market place
Adherence to valuesenables the
reconciliation of personal sacrifice
Reinforcingfolklore
Consistentrole models
DESELECT
Fig: Steps of Socialization
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ORGANIZATIONAL CLIMATE & CULTURE
Changing Organization Culture :
Guidelines:
Developing a sense of history.Creating a sense of oneness
Promoting a sense of membership
Organization must be careful not to abandon their roots &blindly copy the so called successful or excellentcompanies.
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ORGANIZATIONAL CLIMATE & CULTURE
Example: Procter & Gamble
The work team concept in which production and maintenanceworkers called technicians are required to master and use asecond skill, was extended throughout P&Gs operations.
The lifetime job tradition that once made P&G worker the envy of their blue-collar counterparts elsewhere gave way to layoffs.
Executives and workers were put on notice that plants that did notmeasure up on productivity, cost and quality would be shut down.
A determined management vigorously resisted attempts byorganized labour to dictate how P&Gs operation should be run.
P&G trimmed its work force by 5% on the plant floor and 4%company wide.
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ORGANIZATIONAL CLIMATE & CULTURE
Merging Organizational Culture:
Merger Strategy Description Works Best When
Assimilation Acquired Companyembraces acquiringfirms culture
Acquired firm has aweak culture
Deculturation Acquiring firm imposesits culture on unwillingacquired firm
Rarely works maybe necessary onlywhen acquiredfirms culture doesnot work employeesdo not realize it.
Integration Combining two or morecultures with a newcomposite culture.
Existing culture canbe improved.
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ORGANIZATIONAL CLIMATE & CULTURE
Merging Organizational Culture:
Merger Strategy Description Works Best When
Separation Merging Companiesremain distinct entitieswith minimal exchangeof culture ororganizational practices
Firms operatesuccessfully indifferent businessrequiring differentcultures.
Fig: Strategies for merging different organizational culture.
Source: based on ideas in AR. Malekazeda and A-Nahavandi; making mergers work by managing cultures.Journal of Business Strategies.
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ORGANIZATIONAL CLIMATE & CULTURE
Strengthening Organizational Culture: Five Strategies.
Fig: Strategies for strengthening organization culture.
StrengtheningOrganizational
Culture
Actions of Founders &
LeadersIntroducing
culturallyconsistentrewards
Maintaininga stable
work-force
Managingthe cultural
network
Selecting andsocializing
employees