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Organizational Culture
The document discusses organizational culture, defining it as the shared beliefs, values, and norms that shape group behavior and individual socialization within an organization. It outlines different types of organizational cultures, such as bureaucratic, clan, market, and entrepreneurial, and highlights their characteristics and implications for employee behavior and performance. The document also emphasizes the importance of socialization processes, values, and ethical standards in fostering strong organizational cultures that drive performance and adaptability.
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Organizational Culture
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- 2. Group Members Shubhangi Bhirud KaustubhBarve Aditya Bhimanawar Hasti Bhanushali Jignesh Bhavsar Yogita Bhadekar
- 3. What is Culture Cultureis the unique dominant pattern of shared beliefs, assumptions, values, and norms that shape the socialization, symbols, language and practices of a group of people. The attitudes and approaches that typify the way staff carry out their tasks. Culture is developed and transmitted by people, consciously and unconsciously, to subsequent generations.
- 4. ORGANIZATIONAL CULTURE “A pattern ofbasic assumptions that the group learned as it solved its problems of external adaptation and internal integration, that has worked well enough to be considered valid and, therefore, to be taught to new members as the correct way to perceive, think and feel in relation to those problems.”
- 5. Elements of Organizational Culture Innovationand Risk Taking Attention to Detail Outcome Orientation Team Orientation Aggressiveness Stability
- 6. Functions of Organizational Culture Cultureprovides a sense of identity to members and increases their commitment to the organization Culture is a sense-making device for organization members Culture reinforces the values of the organization Culture serves as a control mechanism for shaping behavior
- 7. Types of OrganizationalCulture The basic types of organizational culture are: 1. Bureaucratic 2. Clan 3. Market 4. Entrepreneurial
- 8. Bureaucratic Culture In thistype of culture the behaviour of employees is governed by formal rules and standard operating procedures. Such a culture creates stability. Organizations with bureaucratic culture tend to produce standardized goods and services, examples: Government ministries Fast food establishments
- 9. Clan Culture In aclan culture the behaviour of individuals is shaped by tradition, loyalty, personal commitment, extensive socialization and selfmanagement. A clan culture achieves unity through socialization. Long-term employees serve as mentors Members are aware of the organization’s history and have an understanding of the expected manner of conduct and organizational style. Members share feelings of pride in membership.
- 10. Market Culture In amarket culture, the values and norms reflect the significance of achieving measurable and demanding goals mainly concerning those that are financial and market based. Companies with a market culture tend to focus on: Sales growth Profitability Market share In a market culture the relationship between individuals and the organization is contractual (previously agreed). Individuals are responsible for their performance; whereas the organization promises specific rewards for levels of performance. Managers are not judged on their effectiveness as role models
- 11. Entrepreneurial Culture Organizations existing inthe context of an entrepreneurial culture are characterized by high levels of risk taking and creativity. There is a commitment to experimentation, innovation, and being Steve Jobs – Apple
- 12. Stories Rituals How Employees Learn Culture/ Howit is “reinforced” Language Material Symbols
- 13. Stories and Legends Socialprescriptions of desired (undesired) behavior Provides a realistic human side to expectations Most effective stories and legends: Describe real people Assumed to be true Known throughout the organization Are prescriptive
- 14. Rituals and Ceremonies Rituals programmed routines (eg., how visitors are greeted) Ceremonies planned activities for an audience (eg., award ceremonies)
- 15. Physical Structures/Symbols Building structure-- may shape and reflect culture Office design conveys cultural meaning Furniture, office size, wall hangings Courtesy of Microsoft Corp.
- 16. Artifacts Artifacts are thephysical things that are found that have particular symbolism for culture The purpose of Artifacts are as reminders and triggers
- 17. Language Language is ashared system of vocal sounds, written signs, and/or gestures used to convey meaning among members of a culture. The Nike swoosh was inspired by the Greek goddess Nike, the winged goddess of victory. The swoosh symbolizes her flight. It conveys the meaning of a brand of sports shoes
- 18. Socialization Socialization is the processby which people lean valves, norms, behaviours and social skills. It is the means by which new members are brought into a culture.
- 19. Dimensions of Socialization Programs IntensePrograms Formal – new workers separated for training Collective – group basis Fixed – planned activities Serial – role models used Divestiture – strip away characteristics to build up new ones Moderate Programs Informal – new workers immediately put to work Individual – one-onone Variable – no timetables Random – on your own Investiture – accepts and confirms existing
- 20. Process of Socialization PreArrival Encounter Metamorphosis
- 21. Outcomes of Socialization Process Successfulsocialization Job satisfaction Role clarity High work performance Understanding of culture Commitment to organization Internal values Unsuccessful socialization Job dissatisfaction Role ambiguity and conflict Misunderstanding, tension, and perceived lack of control Low job involvement Low performance Rejection of values
- 22. Organizational Culture Strength Howwidely and deeply employees hold the company’s dominant values and assumptions Strong cultures exist when: most employees understand/embrace the dominant values values and assumptions are institutionalized through well-established artifacts culture is long lasting -- often traced back to founder
- 23. Building a strongorganizational culture 1. 2. 3. 4. A common behavioural style must be shared by managers and employees. Have the same basic approaches to solving problems, meeting goals, and dealing with stakeholders. Have share common norms that guide rule governing rewards and punishment. A strong organizational culture assists in the creation of a stable organization, the consequence of which lead to the achievement of the company’s strategic goals.
- 24. Relationship between cultureand organizational performance Organizational culture has the potential to enhance organizational performance, individual satisfaction, the sense of certainty about how problems are to be handled. Culture serves as a control mechanism to channel behaviour towards desired behaviours and to prevent undesired behaviours.
- 25. Creating an Ethical OrganizationalCulture A strong culture with high risk tolerance, low-tomoderate aggressiveness, and focuses on means as well as outcomes is most likely to shape high ethical standards Managers must be visible role models Communicate ethical expectations Provide ethical training Visibly reward ethical acts and punish unethical ones Provide protective mechanisms
- 26. Global Implications National andOrganizational Cultures: Organizations exist in a global context Must be aware of local and national cultures Suggestions and Observations: Organizations heavily dependent on foreign markets and labor National culture does influence organizational culture All managers must be culturally sensitive 15-26
- 27. SAMSUNG CASE STUDY –CULTURAL CHANGE Samsung’s Chairman – Lee Kun Hee
- 28. Samsung – CulturalChange In 1993, Samsung’s Chairman – Lee Kun Hee, went on a world tour to figure out how his company was doing internationally. From 1987 to 1993, when Lee took over his business from his father, Samsung grew by two and a half times. But Lee wanted it to be like G.E- an internationally regonized industrial powerhouse.
- 29. Speech by LeeKun Hee “ Top global companies are reeling and (I’m) not sure what will happen to Samsung. Most products and businesses that Samsung represents today will be gone in 10 years time. We should start again. There is no time to waste.” “CHANGE EVERYTHING BUT YOUR WIFE AND CHILDREN.” -most famous quote by Lee Kun Hee.
- 30. Change Samsung focused on“innovation” . Introduced outsiders who could not speak their language and were unfamiliar with the company’s culture. Introduced merit pays and promotions. Going against the traditional ways of meriting the elders, Samsung started putting the young in the position of authority.
- 31. Results One of theworld’s leading developers and producers of semi-conductors. Listed in Fortune Magazine’s list of the 100 largest corporations in the world in 2007. Today Samsung’s revenues are 39 times what they in 1987. It generates around 20 % of South Korea’s GDP Lee is South Korea’s richest man.
- 32. Conclusion Understanding of workgroup subcultures, influences strategies for changing organizational culture and overcoming resistance to change programs. Should clearly defined as it impacts on day-today decision-making. Cultures create an environment and also adapt to diverse and changing circumstances.