Unit Ix Organiztional Culture

8/9/2019 Unit Ix Organiztional Culture

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BY-PROF.RASHMI GUPTACopyright Houghton Mifflin Company. Allrights reserved.

UNIT IX

ORGANIZATIONAL CULTURE,

CREATIVITY & INNOVATION

BY-PROF.RASHMI GUPTA


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Innovation

CR

E

A

T

I

VI

T

Y

CREATIVITY AND INNOVATION


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MEANING OF INNOVATION

Innovation is a process of taking new ideas to

satisfied customers. It is the conversion of

new knowledge into new products and

services.

Innovation is about creating

value and increasing efficiency,and therefore growing your

business.


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MEANING OF CREATIVITY

Creativity refers to the process by which novel but

situationally appropriate outcomes are brought about.

The essence of creativity is the element of

freshness,originality and novelty that is appropriate tothe context.


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INNOVATION STRATEGIES

Financial backing to innovation

Give opportunities to employees

Skillful recruitment policy

Information from outside the organization

Target being set for innovation

Employees should be rewarded


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EFFECTIVENESS CRITERIA FOR AN

INNOVATIVE PROCESS

EFFECTIVENESS CRITERIA FOR AN

INNOVATIVE PROCESS

Implement a few ideas at regular intervals

Ensure feedback takes place - there must be

communication channels to originators.

Screening system should be simple, understood by

everyone

Ensure the system is promoted

Transform ideas into reality at a reasonable speed - if

the system is too slow we may be too slow to react to

the market pace and turn off idea originators.


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INNOVATION IN ORGANIZATION

A creative idea needs to be converted into a product

so that it fulfills needs and wants of users. The

process of converting creative idea into a useful

product is called innovation. The most innovative companies of the twentieth

century:

GE GM EASTMAN KODAK

IBM HITACHI

AT&T CANON


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THE PROCESS OF INNOVATION

Stage 1

Setting the

Agenda

Stage 2

Setting the

stage

Stage 3

Testing and

Implementing the

Idea

Stage 4

Assessing the

Outcome

Progress

Success Failure

End End


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Process of Creativity

Step 3- Insight

Step 2- Incubation

Step 4-Verification

Step 1-Preparation


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Creativity Inducing Factors

Creative people

Organisational support

Organisational culture

Diversity.

Exposure

Sufficient time and resources.


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COMMON MISTAKES IN INNOVATION

1. Over-reliance on Pilot Initiatives

2. Unhealthy fascination with Unique CharismaticExamples

3. Misapplication of other Companies Approaches

4. Descent into a Cycle of Self-recrimination

5. Resignation to Superficial Changes


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MEANING OF CULTURE

Organizational culture is a system of shared beliefs

and attitudes that develop within an organization and

guides the behaviour of its members.

It is a set of

ideologies,values,assumptions,beliefs,expectations,

attitude and norms that knit an organisation together

and are shared by its employees


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KEY ELEMENTS OF ORGANIZATIONAL

CULTURE

Innovation and Risk Taking

The degree to which employees are encouraged to be

innovative & take risk.

Attention to Detail

The degree to which employee are expected to exhibit

accuracy, analysis & attention to details.

Outcome Orientation The degree to which management focuses on result or

outcomes rather than on the techniques & processes

used to achieve those outcome.


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People Orientation

The degree to which management decision take intoconsideration the effect of outcome on people within theorganization.

Team Orientation

The degree to which work activities are organized aroundteam rather than individual.

Aggressiveness

The degree to which people are aggressive & competitiverather than easygoing.

Stability

The degree to which organizational activities emphasizemaintaining the status in contrast to growth

KEY ELEMENTS OF ORGANIZATIONAL

CULTURE


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Levels of Culture

National Culture

Business Culture

Organisational

Culture

Occupational

Culture

Management


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FUNCTIONS OF CULTURE

It creates distinction between one organization andanother.

It conveys a sense of identity to organization

members. It generates commitment to something larger than

an individuals self interest.

It is a social glue that helps hold the organizationtogether.

It is a sense making and control mechanism thatguides and shapes the attitudes and behaviour ofpeople.


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EFFECTS OF CULTURE

Effective control

Promotion of innovation

Strategy formulation & innovation

Strong commitment from employees

Performance & satisfaction


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HOW IS CULTURE CREATED?

Culture is formed in response to two major

challenges that confront every organization:-

External adaptation & survival

Internal integration


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How employees learn culture

Stories

Rituals

Material symbol Language


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Authoritarian culture

Participative culture

Mechanistic culture

Organic culture

Sub-cultures and Dominant culture

TYPES OF CULTURE


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Authoritarian culture

In authoritarian culture, there is a centralization of power with the leader

& obedience to orders & discipline are stressed.

Any disobedience is punished severely.

It is assumed that leader know what is good for the organization &

always acts in its interest.

Participative culture

Participative culture tends to emerge where most organizational

members see themselves as equals & take part in decision-making.

TYPES OF CULTURE


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Mechanistic Cultures

This culture exhibits the values of bureaucracy.

Authority flows down from the top of the organisation to the lower levels

Communication flows through prescribed channels.

There is great departmental loyalty.

It resist change and innovation.

Organic Culture

Emphasis on task accomplishment, team work and free flow of

communication. There is widespread understanding of the problem, threats & opportunities

the organization is facing.

There is Flexibility, Change & Innovation.

TYPES OF CULTURE


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Sub-culture & Dominant Culture

A subculture is a group of people with a culture (whether distinct or

hidden) which differentiates them from the larger culture to which they

belong.

Organizational culture emerges when there is an integration of all

departments (subculture) into a whole.

Subcultures may be even in conflict with the dominant culture.

TYPES OF CULTURE


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Where an organisational culture comes

from?

Organisational

culture

Culture formation

around critical

incident

Property right

system

Identification with

The leaders

Organisational

structure

Organisational

ethics

Characteristics

Of

employees


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Creating a positive Organisational

Culture

A Positive organisational culture is defined as a

culture that emphasizes building on employeestrengths, rewards more than it punishes,and

emphasizes individual vitality and growth.

Unit Ix Organiztional Culture

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