ORGANIZATIONAL CULTURE AND CLIMATE

A Presentation By:

Kunal Kumar

Neha Anand

Rashmi Sharma

ORGANIZATION CULTURE: CONCEPT

A common perception held by organization’s members.

A system of shared meaning. Culture is the social glue that helps hold the

organisation together.

ORGANIZATION CULTURE: DEFINITION

“Organization culture is the basic pattern of shared assumptions, values and beliefs considered to be the correct way of thinking about and acting on problems and opportunities facing the organization.”

CHARACTERISTICS OF ORGANIZATION CULTURE

Innovation and risk taking Attention to detail Outcome orientation People orientation Team orientation Aggressiveness Stability

FUNCTIONS OF ORGANIZATIONAL CULTURE

Organisational culture provides a sense of identity for members.

Organisational culture enhances commitment to the organisation’s mission.

Organisational culture clarifies and reinforces standards of behaviour.

Defines the boundary between one organization and others.

Enhances the stability of the social system.

EFFECTS OF ORGANIZATIONAL CULTURE

Organizational performance Length of employment Person/organization fit

HOW EMPLOYEES LEARN ORGANIZATIONAL CULTURE

Artifacts Values Assumptions Beliefs

Artifacts Observable symbols and signs of an organization’s culture. eg:., structures, processes etc.

Stories and legends

Rituals and ceremonies

language

Physical structures

and symbols

Values The reasons given by an organisation for the way things are done. Eg:strategies, goals, philosophies.

AssumptionsThe beliefs that are taken for granted by the organisational members. These are ultimate source of values and action that include: unconscious, perceptions, taken for-granted beliefs, thoughts, feelings etc.

BeliefsRepresent the individual’s perception of reality.

UNIFORMITY OF CULTURE

Organization culture is a common perception held by the organization’s members.

All members cannot share this perception at the same degree.

This gives result to: Dominant culture Sub-culture

DOMINANT CULTURE

Set of core values shared by a majority of the organization’s members.

SUB-CULTURE

Set of values shared by a minority of the organization’s members.

Formed as a result of problems or experiences that are shared by members of different departments.

Some subcultures enhance the dominant culture.

Some directly oppose the organization’s core values and beliefs. They are called “counter-cultures.”

STRONG AND WEAK CULTURES

A culture in which the core values are intensely held and widely shared.

Strong managers determine a strong culture.

Factors determining strength of a culture: Sharedness: degree to which organization’s

members have same values. Intensity: degree of commitment to the core

values of the organization. Both of these factors are determined by

orientation and rewards.

ADAPTIVE CULTURE

Culture in which employees focus on the changing needs of customers and other stakeholders, and support initiatives to keep pace with those changes.

External focus. Employees in an adaptive culture pay as

much attention to organizational processes as they do to organizational goals.

Strong sense of ownership. Proactive and quick.

CREATING AND MAINTAINING A CULTURE

HOW ORGANIZATIONAL CULTURE STARTS?

• Founder has an

idea of a new enterprise

• Founder creates a

core group with one or more key people with common vision

•The core group begins to act in a concert to create an organization

•Others are brought in the organization and a common history begins to be built

MAINTAINING CULTURE

Forces that play a significant role in sustaining culture:

Selection practices Concern with how well the candidates will fit into the

organization.–Provides information to candidates about the organization.

Actions of top management Senior executives help establish behavioural norms

that are adopted by the organization. Socialisation method. The process that helps new employees adapt to the

organization’s culture.

EDGAR SCHEIN ORGANIZATIONAL CULTURE:

SOCIALIZATIONSocialization refers to process of inheriting norms,

customs & ideologies.It may provide the individual with the skills & habits

necessary within their own society.Socialization is thus ‘the means by which social &

cultural continuity are attained.

AGENTS OF SOCIALIZATION:The familyEducationReligionPeer groupsMass mediaOther- work place, public institutions.

PROCESS OF SOCIALIZATION

Selection of entry level personnel

Placement on the job

Job mastery

Measuring and rewarding performance

Adherence to important values

Reinforcing the stories and folklore

Recognition and promotion

ORGANIZATIONAL CLIMATE

Climate is defined as the recurring patterns of behaviour, attitudes and feelings that characterize life in the organization.

The shared perception of the way things are around here.

Typical climates correspond to human feelings or moods: excitement, depression, anger, fear, optimism or anxiety

Culture and Climate

Example We can compare organizational culture and

climate to personality and mood. The former is enduring; the latter is temporary. We acquire our basic personalities early in life, but our moods can shift several times in one day.

Although organizational culture endures like personality, it is easier to change. Climate is variable like mood and is just as important as human feelings.

DIFFERENCE BETWEEN CULTURE & CLIMATE

Refers to current situation in an organization.

Climate is often defined as the recurring patterns of behaviour, attitudes and feelings that characterize life in the organization.

Climate often proves easier to assess and change

Refers to the historical & tradition of the organization.

Organizational cultures are generally deep and stable.

Culture of an organization is not that easy to change.

Climate Culture