Organizational Culture and Organizational Climate

7/30/2019 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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2007 The McGraw-Hill Companies, Inc. All rights reserved.

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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


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


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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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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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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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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2007 The McGraw-Hill Companies Inc All rights reserved

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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2007 Th M G Hill C i I All i ht d

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.

Documents

Organizational Culture and Organizational Climate