Organisational Culture

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Text of Organisational Culture


What is Organisational Culture The basic paTTern of shared values and assumpTions governing The way employees wiThin as organisaTion Think abouT and acT on problems and opporTuniTies

A system of meaning shared by the organizations members Cultural values are collective beliefs, assumptions, and feelings about what things are good, normal, rational, valuable, etc.

Aspects of cultureValues Symbols



Cultural Diversity

Why doesnt McDonalds sell hamburgers in India?

Coca-Colas name in China was first read as Kekoukela, meaning Bite the wax tadpole or female horse stuffed with wax, depending on the dialect.

Coke then researched 40,000 characters to find a phonetic equivalent kokou kole, translating into happiness in the mouth.

Culture and the workplace (Hofstede) Purpose: understanding of business situations across-cultures MUST understand own culture AND other culture(s)

Geert Hofstede sampled 100,000 IBM employees 1963-1973 Compared employee attitudes and values across 40 countries

Isolated 4 dimensions summarizing culture: 1. 2. 3. 4. Power distance Individualism vs. collectivism Uncertainty avoidance Masculinity vs. feminity

Managerial ImplicationsEthnocentrism vs Polycentrism Must a company adapt to local cultures or can corporate -- often home-country dominated -- culture prevail? Cross-cultural literacy essential Do some cultures offer a national competitive advantage over others?

Organisational Culture at people soft PeopleSoft is one of the loopiest places on the planet. The Pleasanton, California, business management software company has mini golf tournaments in the hallways. Dress-down day is every day of the week. A white collar is usually a T-shirt. The gourmet coffee are free. Having fun is so ingrained. In other words, give the bagel delivery guy the same respect as the company president. PeopleSoft is also extreme on technology and flexible customer service. Job applicants use an automated voice response system to accept their job offer. On the first day of work, newcomers are outfitted with a notebook computer and a backpack. They also receive tools for posting personal web pages on the company intranet. This corporate culture has contributed to PeopleSofts success. The company has grown faster than SAP and Oracle and is now the second largest provider of business management software (after SAP). Our true competence is our culture, explains Dave Duffield. Thats what attracts people and keep them here. It also helps sell customers. Customers want to work with companies that are competent, trustworthy, and fun.



How Employees Learn Culture/ How it is reinforced Material Symbols


Oakley, Inc.s headquarters symbolizes a corporate culture in which employees believe they are at war with competitors.

Oakleys combat-ready headquarters symbolizes a corporate culture that attacks such rivals as Nike with gladiator glee. The lobby of the two-year-old, $40million building looks like a bomb shelter. Its huge, echoing vault is straight out of Star Wars. Sleek pipes, watertight doors, and towering metallic walls studded with oversize bolts suggest a place that is routinely subjected to laser fire and floods. Ejection seats from a B-52 bomber furnish the waiting area. Oakleys culture is also apparent in its annual report, which reads more like the Art of War than a financial report. Weve always had a fortress mentality, says Colin Baden, Oakleys vice president of design. What we make is gold, and people will do anything to get it, so we protect it.

Examples of few culture

Innovation and risk taking (3M) Outcome orientation (Bausch & Lomb) Aggressiveness (Microsoft)

Cultures Effects on Managerial ProcessDecision Making (Central/Decentralization) Safety vs. Risk Individual vs. Group Rewards Informal/Formal Procedures Organizational Loyalty Co-operation vs. Competition Time Horizons- Long or Short Stability Innovation

The Nature of Organizational CultureOrganizational cultureShared values and beliefs that enable members to understand their roles and the norms of the organization, includingObserved behavioral regularities, as typified by common language, terminology, and rituals. Norms, as reflected by things such as the amount of work to be done and the degree of cooperation between management and employees. Dominant values that the organization advocates and expects participants to share, such as high product and service quality, low absenteeism, and high efficiency.

A philosophy that is set forth in the MNCs beliefs regarding how employees and customers should be treated. Rules that dictate the dos and donts of employee behavior relating to areas such as productivity, customer relations, and intergroup cooperation. Organizational climate, or the overall atmosphere of the enterprise as reflected by the way that participants interact with each other, conduct themselves with customers, and feel about the way they are treated by higher-level management

What are the values/beliefs/norms of the following companies?ICICI BANK

Indias second largest bank exudes a performance-oriented culture. Its organizational practices place a premium on training, career development, goal setting, and pay-forperformance, all with the intent of maximizing employee performance and customer service. We believe in defining clear performance for employees and empowering them to achieve their goals -MD ICICI BANK

Wal-Mart, Inc.

Wal-Marts headquarters almost screams out frugality and efficiency. The worlds largest retailer has a Spartan waiting room for suppliers, rather like a government office waiting areas. Visitors pay for their own soft drinks and coffee. In each of the buildings inexpensive cubicles, employees sit at inexpensive desk finding ways to squeeze more efficiencies and lower costs out of suppliers as well as their own work processes.

Importance of Organisational Culture Talent attractor Talent Retainer Engages People Creates energy and momentum Changes the view of work Creates greater Synergy Makes evryone ,ore successful

Types of Organisational Culture

Organisational culture can vary in a number of ways. It is these variances that differentiate one organisation from the others. Some of the bases of the differentiation are presented here:

Strong vs weak culture Soft vs hard culture : Formal vs informal culture

Types of Cultures The Clan Culture A very friendly place to work where people share a lot of themselves. It is like an extended family.

The Hierarchy Culture A very formalized structured place to work. Procedures govern what people do.

ExampleHewlett Packard (HP) is a global organization with a corporate culture that is spread to employees around the world. Whether at HPs Far East distribution center in Singapore or at research labs in California, employees live by five well-established values known as The HP Way: These values include trust and respect for individuals, a focus on achievement and contribution, the conduct of business with uncompromising integrity, achievement of common objectives through teamwork, and encouragement of flexibility and innovation.

The Adhocracy Culture A dynamic entrepreneurial, and creative place to work. People stick their necks out and take risks.

The Market Culture A results oriented organization whose major concern is with getting the job done. People are competitive and goal-oriented.

Collaborate (Clan) Culture An open and friendly place to work where people share a lot of themselves. It is like an extended family. Leaders are considered to be mentors or even parental figures. Group loyalty and sense of tradition are strong. There is an emphasis on the long-term benefits of human resources development and great importance is given to group cohesion. There is a strong concern for people. The organization places a premium on teamwork, participation, and consensus.

Create (Adhocracy) Culture A dynamic, entrepreneurial, and creative place to work. Innovation and risk-taking are embraced by employees and leaders. A commitment to experimentation and thinking differently are what unify the organization. They strive to be on the leading edge. The long-term emphasis is on growth and acquiring new resources. Success means gaining unique and new products or services. Being an industry leader is important. Individual initiative and freedom are encouraged.

Control (Hierarchy) CultureA highly structured and formal place to work. Rules and procedures govern behavior. Leaders strive to be good coordinators and organizers who are efficiency-minded. Maintaining a smooth-running organization is most critical. Formal policies are what hold the group together. Stability, performance, and efficient operations are the long-term goals. Success means dependable delivery, smooth scheduling, and low cost. Management wants security and predictability.

Compete (Market) CultureA results-driven organization focused on job completion. People are competitive and goaloriented. Leaders are demanding, hard-driving, and productive. The emphasis on winning unifies the organization. Reputation and success are common concerns. Long-term focus is on competitive action and achievement of measurable goals and targets. Sucess means market share and penetration. Competitive pricing and market leadership are important.

Each year Fortune magazine releases its list of indias Top Employers. Visit the site and do a keyword search on best companies to work for. Who are some of the top companies to work for according to Fortune? What might employees find appealing about the o