ORGANISATION CULTURE

KULDEEP MATHURM.B.A. JIWAJI UNIVERSITY GWALIOR

Organizational culture is very important – cultural capital.

It is organization specific.Culture means “to grow”.Organization culture is a dynamic process –

how and why it develops, how it is sustained, how it is transmitted and managed and its impact on organization effectiveness.

Organization is and organic entity which is either receptive and adaptive or dormant or sterile.

Organization culture is submerged part of organization ice berg – pervasive, intangible.

It is described as the personality of the organization/DNA of the organization. It is underlying set of beliefs, assumptions, values shared feelings & perceptions which is reflected in actions & inter actions of organizational members.

Many sources of organization culture It is influenced by the culture of the society in

which it operates.It is inherited from past.It is influenced by better cultures of other

organization.It has to respond to the market Imperatives.

Nature of Organization culture.Physical Infrastructure.Routine behavior, language, ceremonies.Rules & Procedures (Rigid, Responsive)Gender equality, equality in payment.Dominant values like qualities and efficiency.Philosophy that guides organization.Policies towards

EmployeesCustomersApproach to innovation / creativity

Peter & Waterman – In search of ExcellenceCraze for customers.Craze for creativityCare for the people

Formal Components of Organizational CultureComponent Description Effect on Organizational

Culture

Mission / Vision

The milestones to be reached Could be unrealistic

Policies Statements designed to be guides behavioral decision

Policies, if not drafted properly, can provide leeway.

Procedures Methods providing specific guidelines

Can facilitate or create obstacles in smooth functioning.

Rules Specific instructions for performing a task

Rules could be a means or an end in themselves.

State of Organizational Development

Organization at young, growing, maturing and mature stage of development.

State of organizational development has direct impact on work culture.

Characteristics of Four Types of Organizational Cultures

Rational culture

Developmental culture

Consensual culture

Hierarchical culture

Organizational purpose

Pursuit of rational objectives

Creation; development

Group-maintenance; team-building

Execution; regulation

Performance criteria

Productivity; efficiency

Growth; innovation

Cohesion; morale

Control; stability

Authority Bases of power

Boss Competence

Charisma Values

Membership Informal status

Rules; seniority Knowledge of regulations

Motives Achievements Growth Affiliation; mutual dependence

security

Organizational culture and change •Transformational leadership and

organizational culture Learning organizations Examples

(1) JRD Tata(2) McDonald(3) Enforces

Decision-making

Planned; decisive

Intuitive; insightful

Participative Factual; routine

Leadership style

Goal oriented

Innovative; risk-taking

Supportive; concerned

Conservative; cautious

Compliance style

Contractual agreement

Commitment to values

Commitment to group

Control and surveillance

Appraisal Tangible results

Intensity of efforts

Quality of relationship

Formal and impersonal criteria

Rejuvenating organization culture

Purposeful Meaning To•Objectives & goals vision, mission and core value•Vibrant dynamic management style •Create role model•Indoctrination of new entrants to core value•Spread unique cult of organization

Value Management•Internal/external Credibility•Encourage dissent•Openness & transparency•Learning organization

Social Glues•Organisation as extension of family Social culture celebrations•Mentoring process•Clean and Green environment•Adequate employee welfare measures•Common facilities-canteen, uniform transport, toilets, etc.•Develop organization myths, archetypes stories, etc

Transparent Management Practices

Encourage OCTAPACEEmployee communication quality of work lifeObjective reward, appraisal & promotionTrade Unions-Partners in progress

Total Productive ManagementDelegation & de-centralization system perfectionBusiness strategyEmployee participationEmployee empowerment

Productivity-Way of LifeWork as meta value Kaizen, TPM, TQM Customer delight Brand equity

Shared meanings Organization prideSense of belonging Organization identity Job satisfaction

Roots of Cultural Perspective in Organization

Practice FocusQuality circles, TPM circles Shop floor committee

Employee involvement

Suggestion scheme Exploration of individual creativity and potential

Best Employee Award, Best Attendance Award,Best Safety Award, Best House Keeping Award

Creating individual urge and initiative for excellence

Managing by walking around (MBWA)

Developing work place contacts, empathetic relationship

Common uniform, toilets, bus, canteen and recreational facilities

Developing sense of parity and equity

Birthday greetings, company gift on marriage, festival gift, participation by Senior Executives in social ceremonies

Exploit family for a to develop linkages with employees

Employment of employees relatives on merit preferably in other group units

Develop personal bondage and loyalty

Competitive remuneration package

To attract, retain and develop talent; maintain continuity

Merit based reward system To develop objective, healthy competitive urge for superordinate goals

House magazine/newsletter, open communication meeting by Unit

To develop transparency openness, trust and effective communication channel

Head (Darbar), daily and monthly operations review meeting, personal meeting with unit head of employees at certain level at least once a year

Climate and attitude survey once in two years

To understand employees perceptions and feelings about organization and take corrective actions, if any

Formulate committees for allotment of house, telephone facilities, etc

Decision by Consensus

Emphasis on detailed MIS, SPC, SQC, TQM, goal setting performance review monitoring, zero budgeting, personnel policy and systems, job description, structure etc.

Analytical business approach system approach

Continuous modernization, up gradation of technology

Technology edge

Continuous training at all levels opportunities

Exploration of employee potential and improve knowledge and skills

Physical facilities, safety and health care measures

Clean, green and friendly environment/facilities

Fair and firm IR policies, justice equity

Democratization of work