1
ORGANISATION CULTURE
PRESENTED BY MOHD. AAMIR
PM/2014/406
NIPER, HYDERABAD
2 WHAT IS ORGANISATIONAL CULTURE?
A common perception that is held by the members associated to the organization.
There is also something that is called a subculture which is the miniculture within the organization that is defined by the department designation and geographical separation.
A strong culture is the one in which company’s core values (primary values) are strongly held and discussed.
3 Origins of Organizational Culture
Origins lies with:
The founder who got strong values and vision
External environment for example : Customer demand.
Nature of the work and mission and the goals of the organization
4 Typical American Organizational Culture
U.S. company’s decision making is quick.
Contribution of individual is very important as linked to company goals
Focus on Return On Investment (ROI) or the end result.
Even if they are not sure, they make sure to complete the task given.
U.S. is multicultural, which means there are so many different way to think.
The meetings are fewer and less time.
Contacting clients by email or on the phone more natural in conducting business
Work-Life balance is a must.
5 Typical Japan organizational culture
Decision making is in stages, cautious and conservative backed by meetings and documentation.
Require individual contribution to the whole group.
Japanese also focus on ROI, however, they emphasize the process on how to get there.
If the Japanese feel that it’s possible to achieve most likely 100%, they don’t say “Yes”.
Basically a Japanese company is organized by Japanese.
Meetings are very common in large companies.
They don’t permit working at home.
In Japan, priority is on the work life. It is given work is the center of life.
6 Theory Z of William G. Ouchi
Sociological description of the humanistic organization
Based on both American and Japanese style of management.
This theory can lead to :
greater employee job satisfaction,
lower rates of absenteeism
Higher quality products.
Better overall financial performance for U.S. firms adapting It.
7Features of Theory Z
Long term employment : Employees should not be treated as replaceable cogs in profit making machinery. Companies should make life long commitment to them and expect loyalty.
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Consensual Decision Making
The Type Z organization emphasizes communication, collaboration, and consensus in decision making
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INDIVIDUAL RESPONSIBILITY
Type Z organizations retain the emphasis on individual contributions that are characteristic of most American firms by recognizing individual achievements
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INFORMAL CONTROL WITH FORMAL ORGANIZATIONS
The Type Z organization relies on informal methods of control, but does measure performance through formal mechanisms.
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MODERATELY SPECIALIZED CAREER PATH
The Type Z organization adopts a middle-of-the-road posture, with career paths that are less specialized than the traditional U.S. model but more specialized than the traditional Japanese model.
12HOLISTIC CONCERN
The Type Z organization is characterized by concern for employees that goes beyond the workplace. This philosophy is more consistent with the Japanese model than the U.S. model.
13 Significance of organizational culture
Communicates info about overall acceptable and unacceptable behavior.
Provides common frame of reference for managerial decision making.
It generates heroes.
Enhances the stability of the social system.
Defines the boundary between two organizations
14 It is not significant also!!!!!
It acts as a barrier :
To change
To mergers and acquisitions
To diversity.
15 ORGANISATIONAL MODEL
Harrison gives an organizational model.
Indicates that the four dimensions of culture orientation are measured.
Measured with two modes of operation,
Formalization
Centralization
16 CHARLES & HARRISON ORGANIZATIONAL MODEL
17POWER CULTURE
Represented as spider’s web with all important spider siting at the centre
The closer you are to the spider, the more influence you have.
People response quickly to the situations,but depends on people at centre.
Performance is judged on results
Success is accompanied by low morale and high turnover.
18ROLE CULTURE
Represented as building supported by columns.
Each column has a specific role playing keeping up the building
Position is the main power source
Efficiency based on rationality of the allocation of work and responsibility
Successful in a predictable market
Role culture finds it difficult to respond to change.
Frustrating for ambitious people
19TASK CULTURE
Its is job or project oriented
Emphasis is on getting the job done
It is a team culture where outcome of the team works takes precedence over individual objectives
Organisations can respond rapidly as each group ideally contains all the decision making powers required.
Control is difficult,managed by senior managers.
When resources are limited, it tends to shift towards role culture.
20PERSON CULTURE
Organisation exists only to serve individuals within it.
Not by many organisations as company’s objective is more important
People do what they are good at and are listened to for all their expertise
Consultant and freelance workers have this persons orientation.
21EXAMPLES
The company has an informal product development process
gives staff members access to the co-founders and chief executive.
DreamWorks Animation
DreamWorks executives strive to foster creativity
Encourages employees to take risks and giving staff members the opportunity to engage in spontaneous discussions.
company has an astonishing 97 percent employee retention rate.
Salesforce.com
Delivers cloud computing solutions for businesses around the world.
Staff members collaborate by sharing ideas via a social networking app Chatter. T
app allows employees to analyze data, compare drafts of documents, and share ideas in real time.
Real-time data sharing eliminates the lag associated with the use of email and other older methods of communication
22 How employees learn culture?
Stories Rituals
SymbolsShared values
Common assumptionsSubculture
23 STORIES
Japanese car Lexus has enjoyed a reputation for quality and service by such stories as company flying in repairmen to help customer who had problem with car and could not find local repairmen
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SYMBOLS
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Symbol communicate organizational culture by unspoken messages
Certain code of dress or logo can reflect companies core values.
Example : Mary kay cosmetics, leading cosmetics company in US award top sales performers a diamond ‘bumblebee”.
26 SHARED VALUES
Deeper level of culture.
Reflects how individuals behave.
EX: TATA GROUPTYPES OF VALUES
Instrumental valuesEx: like
honesty, sincerity, ambition,
independence
Terminal ValuesEx : like
happiness, self respect, family
security, recognition,
freedom,
27 COMMON ASSUMPTIONS
Deepest and the most fundamental level of cultural diagnosis
Manifest themselves in individuals that violation of these is unthinkable
EX: Chaparrel steel, an American company reflect three assumptions
People are basically good : company’s emphasis on trust.
People are willing to learn, grow and achieve: Company’s training programmes.
People are motivated by challenges : Common goal settings and objectives.
Another example : IBM operating in Japan in 1960s.
28 Subculture and Counterculture
Subculture has its own pattern of values and philosophy.
For example, Ford motor company want to bring car model that would become highest selling car in America .
Marketing and production dept gave R&D complete freedom to innovate.
Lead to creation of : TAURUS
Counterculture hold beliefs and values that contradict the values of organization itself.
Example : John DeLorean of GM, holding top management position was against company’s value of respect for authority and team work.
29 How culture forms?
30 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.
31 Managerial Decisions
Select new employees with attitudes and personality consistent with high service orientation.
Train employees to be more customer oriented.
Change organizational structure to give employees more control
Conduct performance appraisals based on customer focused employees behaviour
32 A socialization model
33 Stages in socialization
34 Creating an ethical organizational culture
CHARACTERISTICS
High tolerance for risk
Low to moderate in aggressiveness
Focus on means as well as outcomes
Practices that promote ethical culture
Being a role model.
Communicating ethical expectations.
Provide ethical training.
Visibly rewarding ethical acts and punishing unethical acts
35 Creating customer responsive culture
Variables shaping customer responsive relationship
1. The types of employees hired by the organization.
2. Low formalization: the freedom to meet customer service requirements.
3. Empowering employees with decision-making discretion to please the customer.
4. Good listening skills to understand customer messages.
5. Role clarity that allows service employees to act as “boundary spanners.”
6. Employees who engage in organizational citizenship behaviors.
36 Impact of culture on performance
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