ORGANIZATIONAL CULTURE AND CLIMATE

Organizational Culture
Institutionalization:

an organization takes on a life of its own, apart from any of its members, becomes valued for itself, and acquires immortality. Definition A system of shared meaning held by members that distinguishes the organization from other organizations. A belief system shared by an organizations members (Spender,1983)

A forerunner of culture When

Historical foundations
Fundamental understanding of OC Anthropology Sociology Social psychology Economics.

Primary characteristics
Innovation and risk taking-The degree to which employees

are encouraged to be innovative takes risks. Attention to detail-Precision ,analysis and attention to detail. Outcome orientation-Mgt focus on results and outcomes rather than techniques and processes. People orientation-Mgt decision and effect of outcome on the people within. Team orientation-Organization of work activities around teams rather than individuals. Aggressiveness-Aggressive and competitive Vs. easy going. Stability-Emphasis on status quo rather than growth.

Elements of OC
behavioural regularities-in their interaction use common

language,terminology etc. Norms-standards of behaviour Dominant values-major values that the organization advocates eg.high quality,efficiency Philosophy-policies of organizations beliefs Rules-strict guidelines relating to getting along in the organization Organizational climate-an overall feeling that is conveyed by the physical layout,the way participants interact,the way members of the organization conduct themselves with customer or other outsiders

Do Organizations Cultures?

Have

Uniform

Dominant culture and sub culture Dominant culture-Expresses the core values that are shared by a majority of organizations members. Macro view of OCdistinct personality. Subculture-likely to be defined by the department designations and geographical separation.defines common problems,situations ,or experiences that members face. Strong culture and weak culture Strong culture-When organizations core values are both intensely held and widely shared.

Functions of OC
1) Boundary defining role 2) Sense of identity to organizations members 3) Generation of commitment to team interest 4) Stability of social system-social glue by providing

standards 5) Sense making and control mechanism that guides and shapes the attitudes and behaviours of employees

OC as liability
Barriers to change

Consistency of behaviour is an asset when it faces a stable environment.burden when creates difficuty to respond in rapidly changing environment.
Barriers to diversity

People from diverse background are likely to diminish the strong cultures as people attempt to fit in. Hindrance in tapping unique strenghts offered by such people.
Barriers to acquisition and mergers

Cuture compatibility is being considered these days. People issues are found to increase failure rate

Creating and maintaining a culture

How a culture begins Although number of ways, the process usually involves some of these versions. 1) single person(founder) has an idea of a new enterprise. 2) Creates a core group by bringing other key people with similar vision and socialize them to the the founders way of thinking and feeling. 3) Creates organization by raising funds, incorporating, locating space etc. 4) Founders own behaviour act as role model to employees to internalize their beliefs ,values and assumptions and his vision becomes embedded in the culture of the organization.

Keeping Culture Alive

1.

Selection
Concern with how well the candidates will fit into the

organization. Provides information to candidates about the organization.

2.

Top Management
Senior executives help establish behavioral norms that are

adopted by the organization.

3.

Socialization
The process that helps new employees adapt to the

organizations culture.

A Socialization Model

Definition of socialization

A process that adapts employees to the organizations culture.

Stages in the Socialization Process

Prearrival Stage
Encompasses all learning that occurs before a new employee joins the organization.

Encounter Stage
The new employee sees what the organization is really like and confronts the possibility that expectations and reality may diverge.

Metamorphosis Stage
The employee changes and adjusts to the work, work group, and organization.

Entry Socialization Options

Formal vs. Informal

Individual vs. Collective

Fixed vs. Variable Serial vs. Random

Socialization outcomes:
Higher productivity Greater commitment Lower turnover

How Organization Cultures Form

How employees learn culture

Stories-eg.narrative of events about org. founders rule

breaking, reaction to past mistakes, org. coping etc. Rituals-repetitive sequence of activities that express and reinforce the key values of the organization-important goals,people etc. Material symbols -eg. Corporate headquarters layout,aircraft,elegance of furnishings, executive perks etc. Language- over time org. develop unique terms to describe their equipmant,offices,key personnel etc.They act as a common denominator that unites the members of a given org.

Culture
Be

a visible role model-employees will look to top management behaviour as benchmark for defining appropriate behaviour. Communicate ethical expectations-Create and disseminate organizational code of ethics. Provide ethical training-seminars,workshops, and similar ethical training programs. Visibly reward ethical acts and punish unethical onesinclude means taken to achieve organizational goals as well as ends.eg. performance appraisal. Provide protective mechanisms-so that employees can discuss ethical dilemmas and report unethical behaviour without fear.Incl. ethical counselors,ombudsmen or ethical officers

Characteristics of Organizations that Develop High Ethical Standards

High tolerance for risk ii. Low to moderate in aggressiveness iii. Focus on means as well as outcomes iv. Supported for taking risks, Innovation v. Discouraged from useless competition vi. If strong , powerful ,leads to positive influence on employee behaviour
i.

Creating a Customer-Responsive Culture

Key Variables Shaping Customer-Responsive Cultures 1. The types of employees of the organization. 2. Low formalization: the freedom to meet customer service requirements. 3. Empowering employees : ie. decision-making discretion to please the customer. 4. Good listening skills to understand customer messages. 5. Role clarity :service employees to act as boundary spanners b/w org. and customers 6. Employees who engage in organizational citizenship behaviors and have the desire to please and take initiative.

Managerial actions
Hiring employees with personality and attitudes

consistent with high service orientation. Train and socialize current employees to be more customer responsive. Make the structural design flexible by reducing rules and regulations so as to give them more control Empowering employees with discretion to make day to day decisions about job related activities Customer focused vision and behaviour of the leaders showing commitment to customers.

 Behaviour based performance evaluations

effort , commitment, teamwork, friendliness solving customer problems. Reward and recognition of good service and effort to please customers. Make pay and promotion contingent on outstanding customer service.

Creating a Positive Organizational Culture

Definition: A positive organizational culture is defined as a culture that emphasizes building on employee strengths, rewards more than it punishes, and emphasizes individual vitality and growth.
Building on employee strengths
Rewarding more than punishing Emphasizing vitality and growth

Spirituality and Organizational Culture

What is workplace Spirituality:The recognition that people have an

inner life that nourishes and is nourished by meaningful work that takes place in the context of the community.
Characteristics of spiritual organization
A. Strong sense of purpose B. Trust and respect

C. Humanistic work practices

D. Toleration of employee expressions

Criticisms
1) Scientific 2) Legitimacy 3) economics

Reasons for the Growing Interest in Spirituality As a counterbalance to the pressures and stress of a
turbulent pace of life and the lack of community many people feel and their increased need for involvement and connection.

Formalized religion hasnt worked for many people. Job demands have made the workplace dominant in many
peoples lives, yet they continue to question the meaning of work.

The desire to integrate personal life values with ones

professional life.

An increasing number of people are finding that the pursuit

of more material acquisitions leave them unfulfilled.

Culture and Nations

Concepts

Attitudes and behaviours

Social institution Public policy and legal framework

Societal cultural values

Organizational climate
Climate is the label used to describe the

dimensions of work environment that can be measured with relative precision.

Factors influencing organizational climate

Leadership

Organizational structure
Historical forces Std of accountability and behaviours communication Rewards Trust,commitment Vision and strategies External environment