Parking

Lot

innovation
 20%
of
the
employee’s time
can
be
utilized
for
personal
Projects.
By

KAMALAKKANNAN G
VENKATESAN T
DEPARTMENT OF MANAGEMENT STUDIES
PONDICHERRY UNIVERSITY
 Organizational
Culture
Originated in 1940s

•organizational climate studies, was prominent

during the 1960s and 1970s
•
•Popularized in early 1980s
•
•viewed the
informal,
nonmaterial,
interpersonal,
moral bases

of cooperation and commitment as perhaps more

important
Organizational culture became a business
phenomenon in the early 1980s, triggered by
four seminal books:

♦ Ouchi’s (1981) Theory Z : How American Business Can Meet

the Japanese Challenge

♦ Pascale and Athos’s (1982) The Art of Japanese

Management : Applications for American Executives

♦ Deal and Kennedy’s (1982) Corporate Cultures : The Rites

and Rituals of Corporate Life

♦ Peters and Waterman’s (1982) In Search of Excellence :

Lessons from America ’ s Best Run Companies .
 A system of shared meaning held by members
that distinguishes the organizations.

eliefs and shared understandings that are shared by mem

• Innovation and Risk Taking
• Attention to detail
• Outcome Orientation
• People Orientation
• Team Orientation
• Aggressiveness
• Stability
 Organizational Culture & the
Bottom Line- Dr . Kathleen Miller , 1992
1.an environment where people felt that they were all
part of the company team
2.
3.consultants on a weekly basis to address their
interpersonal and relationship issues
4.
5.owners committed to spending time on the shop floor
each day listening to employees about their vision
for the company and how the employees fit into that
vision

4.daily communications meetings for discussing their

opinions and differences behind closed doors rather
than in public
 Streng
Objective Factors th Performanc
•Innovation and risk e
taking Perceive Hi
•Attention to detailsd Organizati
•Outcome orientation onal
•People orientation culture
•Team orientation as
•Aggressiveness
•Stability
• Low Satisfacti
on
Dominan Subcultu
t res
Culture
Core
Values
 Top
Top
Management
Management
Philosophy
Philosophy
of
of Selectio
Selectio Organizational
Organization’s
Organization’s nn Culture
Founders
Founders Criteria
Criteria

Socializati
Socializati
on
on
 Organization A
• Managers must fully document all
decisions
• Creative decisions, change, and risks
are not encouraged.
• Extensive rules and regulations exist
for all employees.
• Productivity is valued over employee
morale.
• Employees are encouraged to stay
within their own department.
• Individual effort is encouraged.
Organization B
• Management encourages and
rewards risk-taking and change.
• Employees are encouraged to
“ run with ” ideas, and failures are
treated as “ learning experiences.”
• Employees have few rules and
regulations to follow.
• Productivity is balanced with treating
its people right.
• Team members are encouraged to interact
with people at all levels and functions.
• Many rewards are team based.
 Stories
Stories Rituals
Rituals

How
How Employees
Employees
Learn
Learn Culture/
Culture/
How
How we
we
“reinforce”
“reinforce” itit

Language
Language Material
Material
Symbols
Symbols
•Barrier to change
•Barrier to diversity
•Barrier to acquisitions and mergers
•Organizational Characteristics – Maintaining High Ethical
Standards
§ High in risk tolerance
§ Low to moderate in aggressiveness
§ Focus on means as well as outcomes
–
•Ethical Culture can be Created by the following Steps

§ Being a visible role model

§ Communicating ethical expectations
§ Providing ethical training
§ Visibly rewarding ethical acts and punishing
unethical ones
§ Provide Protective Mechanism
Positive Organizational Culture
•

vBuilds on employee strengths

vRewards more than it punishes
vEmphasizes individual vitality and growth
 Case Study 2
Creating Innovative Organizational
Culture- Business Week Magazine , 2007

In 3M
1.Recruiting and Retaining Talent
2.
3.Creating a Challenging Environment
4.
5.Knowledge Sharing
6.
7.Rewarding Innovation
8.
9.Mentors, Sponsors and Champions
THANK YOU