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Organisational culture (1)

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An organization is a man made system. It aims at coordinating and continuing group efforts for achieving common goals. The operations of an organization are carried out, authority is exercised , relationship is maintained and role is played within a framework of those values and beliefs. These values and beliefs are shared by all the employees and constitute the culture of the organization


According to J.C.Spender : Organizational culture is a belief system shared by organization members

C.P.Reilly Defines it as Strong widely shared common values

Characteristics of Organizational Culture

Values and Beliefs

Followed by all members

Organizational Culture may be Implicit / Explicit

Organizational Culture is Dynamic in Nature

Communication of Organizational Culture

Integration & Coordination of individual actions with a group

Culture Differences

Process Of Creating Organizational Culture

To create an Organizational Culture is not easy task. At the time of formation of an organization, the promoters are fully concentrated on designing the process of the organization and distributing goods & services. It is after the completion of these that they start thinking about the culture of the organization. The process of creating an Organizational Culture involves setting the tone of organizational activities with the external environment.

It also includes establishing implied rules for the behavior of its members. On the basis of these rules , it is judged whether the pattern of their working behavior is acceptable or not. The set of values & norms determined by the promoters indicates the vision of the organization for the future.


General electric co. Organizational Culture is Progress is our most important product

Delta Airlines The Delta Family feeling

IBM - Service

Although there is no set process for creating OC, generally organizations adopt the following general process for building a culture particularly in a newly-formed organization. This process consists of the following steps.

Developing strategic values

Establishing cultural values

Developing vision or the future image of the organization

Making implementation programmes

Reinforcing & Sustaining culture.

Types of Organizational Culture

u Academy

An Organization that provides employees opportunities to master many jobs & move on to others can be called an academy

E.g. :- coca-cola, IBM

u Club

Organization that lay emphasis on getting people to fit in & be loyal & values the age & experience of employees can be called clubs

u Baseball Team

Organization in high-tech fields ( E.g. :- Between department firms & biotech companies ) & professional fields ( E.g. :- Investment, Banking, Law & Accounting ) have highly skilled employees who tend to take risks are handsomely rewarded for their success. They have a culture that can be compared with the culture of a professional baseball team with stars who are welling to be traded to another baseball team if the compensation is right.

u Fortress

An organization that is facing hard times & is preoccupied with survival fits into the fortress culture. A fortress may be a stimulating place to work for those who thrive on the challenges of turning around a company.

Functions of Organizational Culture

Culture to an organization is an intangible force, with far reaching consequences. It plays several important roles in organization.

Culture gives a sense of identity to its members

Culture helps to generate commitment among employees

Culture serves to clarify & Reinforce standards of behavior

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