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ORGANISATION CULTURE

PRESENTED BY MOHD. AAMIR

PM/2014/406

NIPER, HYDERABAD

2 WHAT IS ORGANISATIONAL CULTURE?

A common perception that is held by the members associated to the organization.

There is also something that is called a subculture which is the miniculture within the organization that is defined by the department designation and geographical separation.

A strong culture is the one in which company’s core values (primary values) are strongly held and discussed.

3 Origins of Organizational Culture

Origins lies with:

The founder who got strong values and vision

External environment for example : Customer demand.

Nature of the work and mission and the goals of the organization

4 Typical American Organizational Culture

 U.S. company’s decision making is quick. 

Contribution of individual is very important as linked to company goals

 Focus on Return On Investment (ROI) or the end result.

Even if they are not sure, they make sure to complete the task given.

U.S. is multicultural, which means there are so many different way to think.

The meetings are fewer and less time.

Contacting clients by email or on the phone more natural in conducting business

Work-Life balance is a must.

5 Typical Japan organizational culture

Decision making is in stages, cautious and conservative backed by meetings and documentation.

Require individual contribution to the whole group.

Japanese also focus on ROI, however, they emphasize the process on how to get there.

If the Japanese feel that it’s possible to achieve most likely 100%, they don’t say “Yes”.

Basically a Japanese company is organized by Japanese.

Meetings are very common in large companies.

 They don’t permit working at home.

In Japan, priority is on the work life. It is given work is the center of life.

6 Theory Z of William G. Ouchi

Sociological description of the humanistic organization

Based on both American and Japanese style of management.

This theory can lead to :

greater employee job satisfaction,

lower rates of absenteeism 

Higher quality products.

Better overall financial performance for U.S. firms adapting It.

7Features of Theory Z

Long term employment : Employees should not be treated as replaceable cogs in profit making machinery. Companies should make life long commitment to them and expect loyalty.

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Consensual Decision Making

The Type Z organization emphasizes communication, collaboration, and consensus in decision making

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INDIVIDUAL RESPONSIBILITY

Type Z organizations retain the emphasis on individual contributions that are characteristic of most American firms by recognizing individual achievements

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INFORMAL CONTROL WITH FORMAL ORGANIZATIONS

The Type Z organization relies on informal methods of control, but does measure performance through formal mechanisms.

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MODERATELY SPECIALIZED CAREER PATH

The Type Z organization adopts a middle-of-the-road posture, with career paths that are less specialized than the traditional U.S. model but more specialized than the traditional Japanese model.

12HOLISTIC CONCERN

The Type Z organization is characterized by concern for employees that goes beyond the workplace. This philosophy is more consistent with the Japanese model than the U.S. model.

13 Significance of organizational culture

Communicates info about overall acceptable and unacceptable behavior.

Provides common frame of reference for managerial decision making.

It generates heroes.

Enhances the stability of the social system.

Defines the boundary between two organizations

14 It is not significant also!!!!!

It acts as a barrier :

To change

To mergers and acquisitions

To diversity.

15 ORGANISATIONAL MODEL

Harrison gives an organizational model.

Indicates that the four dimensions of culture orientation are measured.

Measured with two modes of operation,

Formalization

Centralization

16 CHARLES & HARRISON ORGANIZATIONAL MODEL

17POWER CULTURE

Represented as spider’s web with all important spider siting at the centre

The closer you are to the spider, the more influence you have.

People response quickly to the situations,but depends on people at centre.

Performance is judged on results

Success is accompanied by low morale and high turnover.

18ROLE CULTURE

Represented as building supported by columns.

Each column has a specific role playing keeping up the building

Position is the main power source

Efficiency based on rationality of the allocation of work and responsibility

Successful in a predictable market

Role culture finds it difficult to respond to change.

Frustrating for ambitious people

19TASK CULTURE

Its is job or project oriented

Emphasis is on getting the job done

It is a team culture where outcome of the team works takes precedence over individual objectives

Organisations can respond rapidly as each group ideally contains all the decision making powers required.

Control is difficult,managed by senior managers.

When resources are limited, it tends to shift towards role culture.

20PERSON CULTURE

Organisation exists only to serve individuals within it.

Not by many organisations as company’s objective is more important

People do what they are good at and are listened to for all their expertise

Consultant and freelance workers have this persons orientation.

21EXAMPLES

Google

The company has an informal product development process

gives staff members access to the co-founders and chief executive.

DreamWorks Animation

DreamWorks executives strive to foster creativity

Encourages employees to take risks and giving staff members the opportunity to engage in spontaneous discussions.

company has an astonishing 97 percent employee retention rate.

Salesforce.com

Delivers cloud computing solutions for businesses around the world.

Staff members collaborate by sharing ideas via a social networking app Chatter. T

app allows employees to analyze data, compare drafts of documents, and share ideas in real time.

Real-time data sharing eliminates the lag associated with the use of email and other older methods of communication

22 How employees learn culture?

Stories Rituals

SymbolsShared values

Common assumptionsSubculture

23 STORIES

Japanese car Lexus has enjoyed a reputation for quality and service by such stories as company flying in repairmen to help customer who had problem with car and could not find local repairmen

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SYMBOLS

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Symbol communicate organizational culture by unspoken messages

Certain code of dress or logo can reflect companies core values.

Example : Mary kay cosmetics, leading cosmetics company in US award top sales performers a diamond ‘bumblebee”.

26 SHARED VALUES

Deeper level of culture.

Reflects how individuals behave.

EX: TATA GROUPTYPES OF VALUES

Instrumental valuesEx: like

honesty, sincerity, ambition,

independence

Terminal ValuesEx : like

happiness, self respect, family

security, recognition,

freedom,

27 COMMON ASSUMPTIONS

Deepest and the most fundamental level of cultural diagnosis

Manifest themselves in individuals that violation of these is unthinkable

EX: Chaparrel steel, an American company reflect three assumptions

People are basically good : company’s emphasis on trust.

People are willing to learn, grow and achieve: Company’s training programmes.

People are motivated by challenges : Common goal settings and objectives.

Another example : IBM operating in Japan in 1960s.

28 Subculture and Counterculture

Subculture has its own pattern of values and philosophy.

For example, Ford motor company want to bring car model that would become highest selling car in America .

Marketing and production dept gave R&D complete freedom to innovate.

Lead to creation of : TAURUS

Counterculture hold beliefs and values that contradict the values of organization itself.

Example : John DeLorean of GM, holding top management position was against company’s value of respect for authority and team work.

29 How culture forms?

30 Keeping culture alive

Selection

Concerned with how well the candidates will fit into the organization.

Provides information to candidates about the organization.

Top Management

Senior executives help establish behavioral norms that are adopted by the organization.

Socialization

The process that helps new employees adapt to the organization’s culture.

31 Managerial Decisions

Select new employees with attitudes and personality consistent with high service orientation.

Train employees to be more customer oriented.

Change organizational structure to give employees more control

Conduct performance appraisals based on customer focused employees behaviour

32 A socialization model

33 Stages in socialization

34 Creating an ethical organizational culture

CHARACTERISTICS

High tolerance for risk

Low to moderate in aggressiveness

Focus on means as well as outcomes

Practices that promote ethical culture

Being a role model.

Communicating ethical expectations.

Provide ethical training.

Visibly rewarding ethical acts and punishing unethical acts

35 Creating customer responsive culture

Variables shaping customer responsive relationship

1. The types of employees hired by the organization.

2. Low formalization: the freedom to meet customer service requirements.

3. Empowering employees with decision-making discretion to please the customer.

4. Good listening skills to understand customer messages.

5. Role clarity that allows service employees to act as “boundary spanners.”

6. Employees who engage in organizational citizenship behaviors.

36 Impact of culture on performance

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