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Batch 22 B ITM, Kharghar. Group # 06 Vibhavari Pawar Jaswant Singh Jigyasa Soni Kadir Shaikh

organisational culture

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Batch 22 B ITM, Kharghar. Group # 06 Vibhavari Pawar Jaswant Singh Jigyasa Soni Kadir Shaikh


Culture? Define Organization culture? Seven Primary characteristic that capture OC. Strong V/s Weak Cultures. What do Cultures do in Organization? Cultures function in Organization. Culture as a Liability. Creating and Sustaining a Culture.

How culture Begins. Keeping Culture Alive. How employees learn Culture? Number of elements that can be used to describe or influence Organizational Culture. Creating an Ethical Organizational Culture.

An integrated pattern of human knowledge, belief, and behavior that depends upon the capacity for symbolic thought and social learning. The set of shared attitudes, values, goals, and practices that characterizes an institution, organization or group

It is a system of shared meaning held by members that distinguishes the organization from other Organization.

Innovation and Risk taking:- The degree to which employees are encouraged to be innovative and take risks. Attention to detail:- The degree to which employees are expected to exhibit precision, analysis, and attention to detail. Outcome orientation:- The degree to which management focuses on the results or outcomes rather than on the techniques and process used to achieve those outcomes.

People Orientation:- The degree to which management decisions take into consideration the effect of outcomes on people within the organization. Team Orientation:- The degree to which work activities are organized around teams rather then individuals. Aggressiveness:- The degree to which people are aggressive and competitive rather than easy going. Stability:- The degree to which organization activities emphasize maintaining the status quo in contrast to growth.

It has become increasingly popular to differentiate between strong and week cultures. The argument here is that strong cultures have a greater impact on employee behavior and are more directly related to reduced turnover. In a strong culture, the organization score values are both intensely held and widely shared. A strong culture demonstrates high agreement amount members about what to the organization stand for. Such unanimity of purpose builds cohesiveness, loyalty and organizational commitment. These quality in turns, lessen employees propensity to leave the organization.

In this section we will carefully review the functions that culture performs and assess whether culture can be a liability for an organization?

Cultures perform a number of functions within an organization. It has a boundary defining role; that is, it creates distinction between one organization members. It conveys a sense of identity for organization members. Culture facilitates the generation of commitment to something larger ones individual self-interest. It enhances the stability of the social system. Culture is the social glue that helps hold the organization together by providing appropriate standards for what employees should say and do. Culture serves as a sense-making and control mechanism that guides and shapes the attitude and behavior of employee.

Culture by definition is elusive , intangible, implicit and taken for granted. But every Organization develops a core set of assumptions, understandings and implicit rules that govern day-to-day behavior in the workplace. Until new comers learn the rules they are not accepted as a full-fledged members of the organization.

Culture enhances organizational commitment and increases the consistency of employee behavior. These are clearly benefits to an organization. From an employees standpoint, culture is valuable because it reduces ambiguity. It tells employees how things are done and whats important. But we shouldnt ignore the potentially dysfunctional aspects of culture, especially a strong one, on an organizations effectiveness.

An Organizations culture doesn't pops up out of the air. Once established, it rarely fades away. What forces influence the creation of a culture? What reinforces and sustains these forces once theyre in place? We will answer both these questions in following session..

An Organizations current customs, traditions, and general way of doing things are largely due to what it has done before and the degree of success it has had with those endeavors. This leads us to the ultimate source of an organizations culture:- Its Founders. The founders of an organization traditionally have a major impact on that organization's early culture. They have a vision of what the organization should be.

Firstly, founders hire and keep only employees who think and feel the same way they do. Secondly, they indoctrinate and socialize these employees to their way of thinking and feeling. Finally, the founders own behavior acts as a role model that encourages employees to identify with them and thereby internalize their beliefs and assumptions. When the organization succeeds, the founders vision becomes seen as a primary determinant of that success. At this point, the founders entire personality becomes embedded in the culture of the organization.

Once a culture is in place, there are practices within the organization that act to maintain it by giving employees a set of similar experiences. For example :- Many of human resources practices such as:- The selection process, performances evaluation criteria, training and development activities, and promotion procedures ensures that those hired fit in with the culture, reward those who support it and penalize (ad even expel) those who challenge it.

These three forces play a particular important part in sustaining a culture:-

1. 2. 3.

Selection Practices. The Action of Top Management. Socialization methods.

Selection:- The explicit goal of the selection procedure is to identify and hire individuals who have the knowledge, skills and abilities to perform the jobs within the organizational success. The selection process thus provides information to the applicants about the organization, Job nature, Job profile & relevant information regarding organization. Candidates learn about the organization, and if they perceive a conflict between their values and those of the organization, they can self select themselves out if applicant pool.

Hence selection becomes a two-way street, allowing employer or applicant to abrogate a marriage if there appears to be a mismatch. In this way the selection process sustains an organizations culture by selecting out those individuals who might attack or undermine its core value. Top Management:- The action of top Management also have a major impact on the Organizations culture, through what they say n how they behave, senior executives establish norms that filter down through the organization as to whether risk taking is desirable; how much freedom Managers should give

to their employees; what is appropriate dress; what actions will pay off in terms of pay raises, promotions, and other rewards; and the like. Socialization:- No matter how good a job the organization does in recruiting and selection, new employees are not fully indoctrinated in the organizations employees are potentially likely to disturb the beliefs and customs adapt to its culture. This adaptation process is called socialization. In short we can say introducing a new employee to organization by the means of Induction, short introductory training, Job training, introduction to SOPs n so on.

Culture is transmitted to employees in a number of forms, the most potent being:1. 2. 3. 4.

Stories. Rituals. Material Symbols. Language.

Stories:- Stories such as these circulate through many organizations. They are typically contain a narrative of events of the organization founders, rule breaking, rag-to-riches, reductions in the workforce, relation of employees, reaction to past mistakes, and organizational coping. These stories anchor the present in the past and provides explanations and legitimacy for current practices. Rituals:- These are repetitive sequences of activities that express and reinforces the key values of the organization what goals are most important, which people are important & which people are expendable.

Material Symbols:- The type of facilities perks and the level of facilities perks to be given to the employee is called material symbol. Language:- Making aware of the language / terminology used in the organization in all aspects like (computer software's and applications, names of different locations, terminology used for different equipments and so on)

The Paradigm: What the organization is about; what it does; its mission; its values. Control Systems: The processes in place to monitor what is going on. Role cultures would have vast rulebooks. There would be more reliance on individualism in a power culture. Organizational Structures: Reporting lines, hierarchies, and the way that work flows through the business. Power Structures: Who makes the decisions, how widely spread is power, and on what is power based?

Symbols: These include organizational logos and designs, but also extend to symbols of power such as parking spaces and executive washrooms. Rituals and Routines: Management meetings, board reports and so on may become more habitual than necessary. Stories and Myths: build up about people and events, and convey a message about what is valued within the organization. These elements may overlap. Power structures may depend on control systems, which may exploit the very rituals that generate stories which may not be true.

An Organization culture most likely to shape a high ethical standards is one thats high in risk tolerance, low to moderate in aggressiveness, and focuses on means as well as outcomes. Managers in such a culture are supported for taking risks, and innovating are discouraged from engaging in unbridled competition and will pay attention to how goals are achieved as well as to what goal are achieved. A strong organizational culture will exert more influence on employees than a weak one. If the culture is strong and supports high ethical standards, it should have a very powerful and positive influence on employee behavior.

What can a management do to create a more ethical culture? These are the following practices:

Be a visible role model:- Employees will look to the behavior of top management as a benchmark for defining appropriate behavior. When senior management is seen as taking the ethical high road, it provides a positive message for all employees. Communicate ethical expectations:- Ethical ambiguities can be minimized by a disseminating an organizational code of ethics rules that employees are expected to follow

Providing Ethical training:- Set up seminars, workshops, and similar ethical training programs. Use these training sessions to reinforce the organizations standards of conduct, to clarify what practices are and are not permissible, and to address possible ethical dilemmas. Visibly reward ethical act and punish unethical ones:- Performance appraisals of managers should include a point-by-point evaluation of how his or her decisions measure up against the organizations code of ethics. Appraisals must include the means taken to achieve goals as well as the ends themselves. People who act ethically should be visibly rewarded for their behavior. Just as importantly unethical acts should be conspicuously punished.

Provide proactive mechanisms:- The organization needs to provide formal mechanisms so that employees can discuss ethical dilemmas and report unethical behavior without fear of reprimand. This might include creation of ethical counselors of ethical officers.