Organization Culture [New]

8/9/2019 Organization Culture [New]

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Oriental Institute of ManagementOriental Institute of Management

Organization CultureOrganization Culture



The Basic Functions of OrganizationalThe Basic Functions of Organizational

CultureCulture

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W hat is Organizational Culture ?

A common perception held by the organization·s

member.

A system of shared meaning held by the members.

Characteristics:

Innovation and risk taking

Attention to detail

Outcome orientation People orientation

Team orientation

Aggressiveness

Stability

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Core Organizational Values Reflected inCore Organizational Values Reflected in

CultureCulture

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Sensitivity to needs of customers and employees.

Freedom to initiate new ideas.

Willingness to tolerate taking risks.

Openness to communication options.



Values & Culture

y Core Values :

The primary or dominant values

that are accepted throughoutthe organization.

y

Strong CultureCulture in which core values are intensely held and

widely shared.

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Institutionalization: A Forerunner of Culture

66y When an organization becomes

institutionalized, it takes / leads

life of its own, apart from it

founders or any of its members.

y Also when an organization becomes

institutionalized it becomes valued for

itself, not merely for the good &

Services it produce, but acquires

immorality.Example : ¶Ross Perot· created Electronic Data System

(EDS) in early 1960, but he left it in 1987 & found a new company

named ¶Perot Systems·. EDS continued to thrive despite the

departure of Perot.

Sony, Gillette, McDonald·s etc.



Organizational Culture

y Dominant Culture

Expresses the core values that

are shared by the majority of members

y Subcultures

It tends to develop in large

organization to reflect problems,situations etc that members face.

Typically defined by department

designation and geographical

separation

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W hat do Cultures do ?

Culture·s Functions :

Defines the boundary between one organization and others.

Conveys a sense of identity for its members.

Facilitates the generation of commitment to something larger

than self-interest.

Enhances the stability of the social system.

Culture as a Liability:

Barrier to change

Barrier to diversity

Barrier to acquisitions and mergers

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How does a Culture Begins ?

y Organization·s current customs, traditions &

general ways of doing things, degree of success.

y This lead to the ultimate source of an organization

culture : its f o

undersf o

undersy The founder of an organization traditionally have a

major impact on organization culture.

y They have a vision of what organization should be.

y So the founder·s entire personality becomesembedded in the culture.

y E.g. The culture at Hydundai, the giant Korean Co.

is reflection of its founder ¶Chung Ju Yung·.

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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

organization·s culture.

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Stages in the Socialization Process11

OutcomesSocialization Process

Prearrival Stage

The period of learning that occurs before a new employee joins the

organization. Encounter Stage

The new employee sees what the organization really like & confronts the

possibility that expectation & reality may diverge

Metamorphosis Stage

The new employee adjust to job, work group & organization.

Prearrival Encounter Metamorphosis

Productivity

Commitment

Turnover



Entry Socialization Options

Formal vs. Informal.

Individual vs. Collective. Fixed vs. Variable.

Serial vs. Random.

Investiture vs. Divestiture.

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How Organization Culture Forms ?13

Philosophy

of organization

f ounders

Selection

Criteria

Top

Management

Socialization

Organization

Culture



How Employees Learn Culture ?

Stories

Rituals

Material Symbols

Language

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Spirituality and Organizational Culture

W orkplace Spirituality : W orkplace Spirituality :

The recognition that the people have an inner life that

nourishes and is nourished by meaningful work that

takes place in the context of the community. Characteristics:Characteristics:

Strong sense of purpose

Focus on individual developmentTrust and openness

Employee empowerment

Toleration of employee expression

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Creating an Ethical Organization CultureCreating an Ethical Organization Culture

y The content & strength of a culture influence organization·s

ethical culture

y If the culture is strong & supports high ethical values,

then it has very powerful & positive influence on employee

behavior.

y Following factors helps in creating ethical culture :

Be a visible role model.

Communicate ethical expectations.

Provide ethical expectation.

Visibly reward ethical acts and punish unethical ones.

Provide protective mechanisms.

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Hofstede·sHofstede·s Model of National CultureModel of National Culture

DimensionsDimensions

Small vs. Large Power Distance.

Individualism vs. collectivism.

Achievement vs Nurturing

Uncertainty avoidance.

Long term vs. short term

orientation.

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Small vs Large Power DistanceSmall vs Large Power Distance1818

Large

Inequalities exist

Gap between rich andpoor

Example

Malaysia

Small

y Social welfare programs

reduce gaps

y Example

France

Germany



Individualism vs. Collectivism1919

Individualism

y Individual achievement

y Freedomy Competition

y Example

United States

Collectivism

y Group harmony

y Cohesivenessy Consensus

y Cooperation

y Example

Japan



Achievement vs Nurturing Orientation Achievement vs Nurturing Orientation

2020

Achievement

y Assertiveness

y Performancey Success

y Competition

y Results-oriented

y Example

Japan

United States

Nurturing

y Quality of life

y warm personalrelationships

y Service

y Caring

y Example Denmark

Sweden



Uncertainty AvoidanceUncertainty Avoidance2121

Low

y Easygoing

y Value diversityy Tolerant of

differences

y Example

United States Hong Kong

High

y Rigid

y Intoleranty Conformity

y Structure

y Example

Japan

France



Long-Term vs Short-Term Orientation2222

Long-term

y Thrift

y Persistencey High savings rate

y Patience

y Example

Japan

Hong Kong

Short-term

y Personal stability

y Happinessy Living in the present

y Example

United States

France



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Organization Culture [New]