Organizational Culture and Organizational Climate

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    Organizational Culture, &

    Organizational Climate

    Dr. Govind Swaroop Pathak,Professor,

    Department of Management Studies,

    Indian School of Mines Dhanbad

    Dhanbad

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    Organizational Culture

    Shared values and beliefs thatunderlie a companys identity

    What types of organizationalcultures have you worked in?

    How does the organizationsculture manifest itself?

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    Understanding Organizational Culture

    Antecedents

    Founders values

    Industry & businessenvironment

    National culture

    Senior leadersvision and behavior

    OrganizationalStructure &

    Practices

    Reward systems

    Organizationaldesign

    OrganizationalCulture

    Observable artifacts

    Espoused values

    Basic assumptions

    Group & SocialProcesses

    Socialization

    Mentoring

    Decisionmaking

    Groupdynamics

    Communication

    Influence &

    empowerment Leadership

    OrganizationalOutcomes

    Effectiveness

    Innovation &stress

    Collective

    Attitudes &Behavior

    Work attitudes

    Job satisfaction

    Motivation

    Figure 3-1

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    Layers of Organizational Culture

    Observable artifacts

    Examples?

    Values enduring belief in a modeor conduct or end-state

    Difference between espoused andenacted?

    Basic Assumptions

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    Four Functions of Organizational Culture

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    Three Types of Cultures

    Constructive

    Passive-defensiveAggressive-defensive

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    Constructive Culture

    Constructive Cultureemployees are encouraged to interact withothers and to work on tasks and projects that will assist in satisfying theirneeds to grow and develop

    High priority on constructive interpersonalrelationships, and focus on work groupsatisfaction

    Affiliative

    Participative, employeecentered, and supportive

    Humanistic-encouraging

    Value self-development andcreativity

    Self-actualizing

    Goal and achievementoriented

    Achievement

    Organizational CharacteristicsNormative Beliefs

    Table 3-1

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    Passive-Defensive Culture

    Passive- Defensive Cultureoverriding belief that employees mustinteract with others in ways that do not threaten their job security

    Negative reward system and Defensive avoidaccountability

    Avoidance

    Nonparticipative, centralized decision making,and employees do what they are told

    Dependent

    Conservative, bureaucratic,and people follow the rules

    Conventional

    Avoid conflict, strive to beliked by others, and approvaloriented

    Approval

    Organizational CharacteristicsNormative Beliefs

    Table 3-1

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    Aggressive-Defensive Culture

    Aggressive-Defensive Cultureencourage employees toapproach tasks in forceful ways in order to protect their statusand job security

    Perfectionistic, persistent, and hard workingPerfectionistic

    Winning is value and a win-

    lose approach is usedCompetitive

    Nonparticipative, take chargeof Defensive subordinates,

    and responsive to superiors

    Power

    Confrontation and negativismrewarded

    Oppositional

    Organizational CharacteristicsNormative Beliefs

    Table 3-1

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    Embedding Culture in Organizations

    Formal statements or organizationalphilosophy

    Design of physical space

    Slogans, language, acronyms, sayings

    Deliberate role modeling, training

    Explicit rewards, status symbolsStories, legends, myths

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    Embedding Culture in Organizations

    Leader reactions to critical incidentsWorkflow and organizational structure

    Organizational activities, processes, oroutcomes leaders attend to

    Organizational systems and procedures

    Organizational goals and criteria formanaging human resources

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    Organizational Socialization

    Phases Perceptual andSocial Processes

    1) Anticipatorysocialization learningthat occurs prior tojoining the

    organization

    Anticipating realities aboutthe organization and the new

    job

    Anticipating organizationsneeds for ones skills andabilities

    Anticipating organizationssensitivity to ones needs andvalues

    Figure 3-4

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    Organizational Socialization

    Phases Perceptual andSocial Processes

    2) Encounter values,skills, and attitudesstart to shift as newrecruit discoverswhat theorganization is trulylike

    Managing lifestyle-versus-work conflicts

    Managing intergroup roleconflicts

    Seeking role definition andclarity

    Becoming familiar with task

    and group dynamics

    Figure 3-4

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    Organizational Socialization

    Phases Perceptual andSocial Processes

    3) Change andacquisition recruitmasters skills androles and adjusts towork groups valuesand norms

    Competing role demands areresolved

    Critical tasks are mastered

    Group norms and values areinternalized

    Figure 3-4

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    Organizational Socialization

    Phases

    1) Anticipatory socialization

    2) Encounter

    3) Change and acquisition

    Outsider

    Behavioral Outcomes

    Performs role assignments Remains with organization

    Spontaneously innovates and

    cooperates

    Socialized InsiderAffective Outcomes

    Generally satisfied Internally motivated to work

    High job involvement

    Figure 3-4

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    Socialization Tactics

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    Contrasting Organization

    CulturesOrganization A Organization BManagers must fully documentall decisions.

    Creative decisions, change, and risks

    are not encouraged.Extensive rules and regulations existfor all employees.

    Productivity is valued over employeeMoralemorale.Employees are encouraged to stay

    within their own department.

    Individual effort is encouraged.

    Management encourages andrewards risk-taking and change.

    Employees are encouraged to

    run with ideas, and failures aretreated aslearning experiences.

    Employees have few rules andregulations to follow.

    Productivity is balanced with treatingits people right.

    Team members are encouraged to inter

    with people at all levels and functions.Many rewards are team based.

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    Cultures Functions

    Social glue that helps hold an organization together

    Boundary-defining

    Conveys a sense of identity for organization membe

    Facilitates commitment to something larger than onindividual self-interest

    Enhances social system stability

    Serves as a sense-making and control mechanism

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    Do Organizations HaveUniform Cultures?

    Organizational culture represents a commonperception held by the organization members.

    Core values or dominant primary values areaccepted throughout the organization.

    Dominant culture

    Subcultures

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    Conditions for Culture Change

    A dramatic crisisTurnover in leadership

    Young and small organizations

    Weak culture

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    Lewins Three-Step Change Model

    RefreezingMovingUnfreezing

    Ch I A P

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    Change Is A ProcessOf Transition

    PRESENTSTATE

    TRANSITIONSTATE DESIRED

    STATE

    Unfreezing Occurs Refreezing Occurs

    Driving Forces Restraining Forces

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    Culture As A Liability

    Barrier to Change

    Barrier to Diversity

    Barrier to Mergers and Acquisitions

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    Emerging Trends In Work Culture

    Open office layouts

    Fostering Teams

    Flexi-time work systems

    Emphasis on qualityEquitable treatment of employees

    Emphasis on Talent Retention

    Advent on computers as a way of life

    Performance Appraisal

    HCL

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    HCL

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    A Glimpse At Work Place Of HCL

    Participative Style adopted by management Innovative

    Team work

    Zero Defect Policy Relationship building

    Congenial Environment

    Challenging tasks Reward and Recognition

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    Mr. HCL

    Mrs. HCL

    Psychological Climate

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    Psychological ClimateOrganizational Climates

    Are created by SHAREDpsychological climates

    It is the employeesPERCEPTION of the workenvironment and not the

    environment that is important

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    Definitions of Culture

    The shared values, beliefs, andbehavioral norms in an organization(Ouchi, 1981)

    The social process by whichmembers share their values, beliefs,and norms

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    Culture describes the social

    context of the workenvironment

    Climate describes thepsychological impact of the

    work environment

    Why are climate and culture

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    Why are climate and culture

    important?

    The success of Human Servicesorganizations generally depends onthe relationships and interactions

    between service providers andservice recipients. Theserelationships are central to the

    quality and outcome of services.

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    The Big Debate

    CULTURE CLIMATE

    Shared value developd ovr time * Environmental Characteristics

    Less Easily change * More Easily Changed

    Perceptions of Underlyng Values * Perceptions of Observable

    practices More Dynamic * More Static

    Created * Experienced

    Sociology & Anthropology * Psychology

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    How do we differentiate?

    (According to Landy) CLIMATE:

    Created at lower levels of the organization thecontext in which action occurs

    CULTURE:Created and Communicated from higher levels in theorganization (e.g., Senior Executives) the meaningintended by and inferred from the actions

    H d diff ti t

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    CLIMATE

    Refers to current situation inan organization

    Climate is often defined asthe Recurring patterns ofBehavior attitudes andfeelings that characterize lifein the organization.

    Climate often proves easier toassess and change

    CULTURE

    Refers to the Historical &Tradition of the organization.

    Organizational cultures aregenerally Deep & Stable

    Culture of an Organization isnot that easy to change

    How do we differentiate

    C lt A d Cli t

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    Culture And Climate

    We can compare Organizational culture and climate to personalityand mood. The former is enduring; the latter is temporary. Weacquire our basic personalities early in life, but our mood can shiftseveral times in one day.

    Although organizational culture endures like Personality, it is easierto change. Climate is variable like mood and is just as important ashuman feelings

    f &

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    The Role of Norms & Values

    The norms and values that drive serviceproviders behavior and communicatewhat is valued in organizations and the

    shared perceptions that influence serviceprovider attitudes create a social andpsychological context that shapes tone,content, and objectives of the service, inthe case of Service Organizations.

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    How Does Climate Develop orChange?

    I di id l Diff

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    Individual Differences

    Administrators use selective hiringand firing as means of eithermaintaining existing norms or

    changing them.Individual perception is consistentacross work environments - Positive

    or negative views carry from oneworkplace to another.

    Importing Climate and Culture From

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    Importing Climate and Culture From

    the External Environment

    Organizations adopt ways fromother organizations with whichthey compete or cooperate.

    Organizational mimicry- normsof one organization adopted in

    effort to emulate success.

    mpac o rgan za ona es gn:St t T h l & L d hi

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    p g gStructure, Technology & Leadership

    Structure, core technology, andleadership describer the patterns ofinteraction between practitioners,

    interaction of practitioners andclients and administrations style of

    governance.

    St t I t

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    Structure Impacts:

    Flexibility, approval seeking, risk taking andinnovation

    Highly centralizes structure restricts participation indecision making

    Highly formalized division of labor with strictprocedures place little value on flexibility andinnovation

    L d hi I t

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    Leadership Impacts

    Manipulation of culture is an essential function ofleadership

    Values in practice are often those of the leader

    Symbolic acts are important

    Leadership shapes perception of fairness and support

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    How Are Climate & Culture

    Maintained in an Organization?

    The Need for Certainty

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    The Need for Certainty

    Organizations abhor uncertaintyCertainty is engendered by sharingcommon ideas about the way thingsget done

    Culture contributes to certainty in

    through shared norms and values

    The Need for Power

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    The Need for Power

    Power is distributed both formally and informallythrough processes of conflict that lead to a negotiatedorder.

    Many have an investment in maintaining existingnorms to maintain power base.

    Mergers, reorganizations and new administrations areare opportunities for culture change.

    Transferring Climate and Culture to

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    New Employees

    New employees are socialized into the culture andclimate of their work group or they resign.

    Employee selection is important in maintainingexisting cultures and climates.

    More experienced, competent hires may import newnorms, values and perceptions.

    Conclusion

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    Conclusion

    Organizational climate and cultureare important to any Organizationlbecause they provide the critical

    links between Organizationalcharacteristics and Organizational

    outcomes.