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8/13/2019 6 Culture Session 6 [Compatibility Mode] (1)
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Organizational Culture
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Organisational Culture is theSet of values,
Guiding beliefs,
Understandings,
and wa s of thinkin
. that is shared by the members of anorganization and taught to new members as
correct.
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Iceberg Model
Surface and Deep Culture
In awarenessBehaviour
Visible
Norms
SymbolsThe way people DressStories
Ceremonies
Beliefs
Assumptions
ValuesOut of
consciousawareness
Invisible
Feelings
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How Cultures Form
Initialization to Institutionalization
ValuesValuesof theof the
OrganizationsOrganizationsFoundersFounders
OrganizationalOrganizational
SuccessSuccess
OrganizationalOrganizationalCultureCulture
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The Basic Functions
of anOrganizational Culture
Internal Inte ration External Ada tation
Provides a sense ofidentity for membersClarifies and reinforcesStandards of behaviorAcceptable and unacceptable
behaviorGuides the way peoplecommunicateAnd
Power and status is allocated
How Organization meets GoalsDeals with outside world
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A Few Characteristics of Organizational Culture
1. Innovation and risk taking
2. Attention to detail
3. Outcome orientation
.
5. Team orientation
6. Aggressiveness
7. Stability
8. Agility
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Do Organizations Have Uniform Cultures? Dominant Culture
Expresses the core values that are shared by a majority ofthe organizations members.
Subcultures
Mini cultures within an organization, typically defined by departmentdesignations and geographical separation, unique problems and values
Core Values
The primary or dominant values that are accepted throughout theorgan zat on.
Strong CultureA culture in which the core values are intensely held and widely shared.
Weak Culture
A weak organizational culture can be the result of many subcultures, orthe shared values, assumptions, and behaviors of a subset of theorganization.
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Types of Culture
Adaptability / entrepreneurial Culture
Bureaucratic culture
Clan Culture
Mission Culture
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Adaptability/
EntrepreneurialCulture
Mission
Culture
External
Focus
Needs of the Environment
Flexibility Stability
Bureaucratic
Culture
Bureaucratic
Culture
Clan
Culture
Internal
Strateg
i
Relationship of Environment and Strategy to Corporate Culture
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Adaptability/Entrepreneurial Culture
Strategic Focus on external environment thru flexibility andchange to meet customer needs
Norms and beliefs support organizational capacity to detect,interpret and translate signal /cues from environment
Not onl res ondin but activel creatin chan e
Promote individual initiative and entrepreneurship
Innovation, creativity and risk-taking are rewarded
Ex: e- Bay , 3M
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Bureaucratic Culture
Internal Focus and consistency orientation for stableenvironment
Methodical approach of doing business
Symbols, ceremonies support cooperation, tradition andfollowin established olices and rocedures
Personal involvement a bit lower but high level of consistency,conformity and collaboration
Organization succeeds as it is integrated and efficient
Ex: PSU and Regimented Co Like insurance
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Clan Culture
Primary focus on involvement and participation and rapidlychanging expectations from external environment
This creates sense of responsibility and ownership and hencegreater commitment to the organization
Satisf in needs of the em lo ees is the route to hi h
performance
Ex: Fashion Industry
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Mission Culture
Emphasis on clear vision of the organization purpose andachievement of goals (Market share, profitability)
Individual held responsible for delivery of performance and aregiven specified reward
Mana ers sha e behavior b envisionin and communicatin
the desired state
As the environment is stable the organization get competitiveand acquire profit making orientation
Ex:
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The Four Components of Every Organization
Physical
Structures
and tools
hange
Short Term
nceChang
e
Easy
Cultural
Deeply Held Assumptions, Beliefs and Norms
Behavioral
(What Groups and Individuals Do)
ProcessesStrategy, Systems,
Measurement, Rewards
Durabilityo
f
Long Term
A
bilitytoinflu
Difficult
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Rule of Law and Ethical Standards
Ethics is the code of moral principles and values
that governs the behavior of a person or a group
with respect to what is right and wrongEthical values set standards as to what is good and
bad in conduct and decision making.
The rule of law arises from a set of codified
principles and regulations that describe how people
are required to act, are generally accepted in society
and are enforceable in the courts.
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Organizational CultureRitual, Ceremonies
Stories, heroes
Language, symbols
Slogan , founders
History
Personal ethicsBeliefs and Values
Moral Developmentethical framework
Is
Decision /
Conduct
Organizational Systems
Structure
Policies
Rules, code of ethics
Reward system
Selection training
External Stakeholders
Regulations
Customers
Special interest groups
Global market forces
ethical?
FORCES that shape Managerial Ethics
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Formal Structure and Systems toshape cultural values
Ethics Committee
Ethics ombudsperson
Code of ethics
Training programs
Leaders influence by articulating thevalues and everyday behavior
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Cultural change at Chrysler (1994)
In the early 1990s, CHRYSLERhad terrible customer service and press relations, witha history of innovation but a present of outdated products.
Bob Lutz, then the president, wanted Chrysler to become the technology and quality
leader in cars and trucks -- a clear, globally applicable vision.
A program of cultural change, Customer
One, was built around it.
THE RESULTS???
The results were impressive: overhead was cut by $4.2 billion in under four years, the
stock price has quadrupled, and the company reversed its slide into bankruptcy and
became profitable.
They did this with the same people, but working in different
ways.
HOW????
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By Agreeing on Objectives
Core objectives were agreed on at the beginning by all parties; because "Everybody agrees up front and we stick to
the plan," (Bernard Robertson, Jeep/Truck team), there were
- ,
expensive disasters (such as the Corvair, Vega, and Fiero).
Because everyone was involved in setting goals, they took
responsibility for living up to them.
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Strategies for Building a Growth Culture Emphasize the future, not the past
Emphasize the possibility, not the constraints
Reach customers outside through the employeesinside
Encourage risk taking and discourage political
Reward collective, not individual, successes, butmaintain clear individual accountabilities and keep
heroes visible
Look for alternatives before seeking closure
Ensure a high level of personal freedom and trust
Encourage debate before consensus
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"Organisations where people continually expand
their capacity to create the results they truly desire,
where new and expansive patterns of thinking are
nurtured, where collective aspiration is set free, andwhere people are continually learning to learn
together"
What is a learning organization?
-Senge P.
Five Components of Learning Organization
Building Shared Vision
Systems Thinking
Team Learning
Personal Mastery
Mental Models
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A Learning Organization ...
understands that it can learn from others,
seeks out and benchmarks best practices,
develops leaders who routinely put learning at the
center of meetings and planning,
requires all projects to start with understanding best
prac ces,
creates strategic partnerships with customers,
sponsors, other agencies and stakeholders,
creates and prioritizes a two-way communicationprocess,
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Primary characteristics of a learning organization is a strong
organizational culture.
the culture of a learning organization encourages change and
adaptation.
Learnin Or anizations have stron , da tive culture that incor orate
Culture and Learning Organization
the following values:- The whole is more important than the part and the boundaries between
parts are minimized.
Equality is a primary value.
The culture encourages risk taking, change and improvement.
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Jack Welchs goal was to make GE "the world's most competitive
enterprise."He knew that it would take nothing less than a "revolution" to transform
that dream into a reality.
"The model of business in corporate America in 1980 had not changed in
decades. Workers worked, managers managed, and everyone knew theirplace.
Forms and approvals and bureaucracy ruled the day.
Welch's self-proclaimed revolution meant waging war on GE's old ways ofdoing things and reinventing the company from top to bottom.
Today, GE with its unique learning culture and boundary-less organization
is one the most admired company in the world. The techniques and ideas
that Welch has employed to move GE forward are applicable to any sizecorporations, small, medium, or large.
HIS MANTRA WAS: LEAD MORE, MANAGE LESS.
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A Learning Culture
Encourages Continuous Learning
Encourages Openness & Boundarylessness
Maximizes Information Sharing
Brin s Continuous Im rovement
Promotes Risk-taking
Enables to See the Big Picture
Helps to Share a Common Vision
Andhelps healthy adaptation to external environment