Organizational culture

Basically, organizational culture is the personality of the organization. Culture is comprised of the assumptions, values, norms and tangible signs (artifacts) of organizations members and their behaviors.

Key Characteristics of Corporate Culture

Innovation and Risk Taking Attention to Detail Outcome Orientation People Orientation Team Orientation Aggressiveness Stability
The degree to which employees are encouraged to be innovative and take risks. The degree to which employees are expected exhibit precision, analysis and attention to detail. The degree to which management focuses on results or outcomes rather than on the techniques and processes used to achieve those outcomes. The degree to which management decisions are take into consideration and the effect of outcomes on people within the organization. The degree to which work activities are organized around teams rather than individuals.

The degree to which people are aggressive and competitive rather easy going
The degree to which organizational activities emphasize maintaining the status quo in contrast to growth.

Importance of Organizational Culture

A strong culture is a talent-attractor
A strong culture is talent-retainer A strong culture engages people. A strong culture creates energy and momentum A strong culture changes the view of work

A strong culture creates greater synergy

A strong culture makes everyone more successful

Three levels of culture

Assumptions and taken for granted beliefs Values

Behaviors

Type of culture
Power cultures, Handy argues, are found in small, entrepreneurial organisations. In these, as illustrated in Figure 9.3, power lies at the centre of a web. The organisation depends on informal communications, and people who adopt the attitudes and norms of the central power source (often the owner/senior executive) will be valued and trusted. Power relations are clear. Role cultures have high levels of bureaucracy, and coordination is provided by a small, elite, senior management. An organisation characterised by role culture is departmentalised, often into clear functions and areas of specialisation. Employees have clear roles clarified by job descriptions. Work is rationally allocated and organisational life is impersonal. The organisation is suited to stable environments where efficiency is stressed and required. Role cultures provide security for employees. The task culture adopts a project focus and is represented in Figure 9.3 by a net where power lies at the intersections. A task culture is common in matrix organisations (see Chapter 7) where a team culture exists alongside autonomy. As a consequence these organisations are more flexible than those characterised by a role culture and they can react to changing markets. Finally, in the person culture, the individual is paramount. These cultures are common to professional organisations, such as firms of accountants or solicitors. There is limited formal control and communication links are informal.

Power culture Frequently found in small entrepreneurial organisations, power culture relies on central power, informal communication and trust. A unity of purpose negates the need for bureaucracy. The competence, flexibility and dynamism of the central power force, often the owner, are essential. Increased size might 'break' the tight web-like relationships, in which case the organisation might establish a satellite or replicate itself elsewhere. Power cultures place considerable demands on staf f.

Role culture In contrast to the smaller power culture, this cultural type is characterised by high levels of bureaucracy and formality. A small group of senior managers control the coordination between specialists and functional areas, as the diagram below illustrates. Rules, procedures and job descriptions are the norm. Work is thought to be rationally allocated to staff. Suited to stable environments, role cultures find change difficult to cope with. They provide security and predictability for staff.

Task culture Task cultures are often found in matrix organisations where power resides at the intersection of responsibilities. Employees tend to hold joint or multiple responsibilities and work relatively autonomously. Influence is based on expertise as opposed to rank. The need for authority is reduced by the existence of both individual control and teamwork. Operational decisions can be made quickly, making the organisation flexible. These organisations find specialisation, or achieving economies of scale, difficult.

The individual is the key feature in this culture, which only exists if individuals come together because they see some mutual benefits ensuing. Teams of professionals, or even 'hippie' communities, illustrate this culture type. There is no formal control and no single or overriding objective: individual objectives predominate in the constraints that 'organisation' involves. Influence is shared and based on expertise and mutual respect. Individuals tend to share common interests. There is little, or no, formal structure, as shown below.

cultural norms and symbols

Visible objects, actions, stories that represent the culture - Most easily changed - Rites, rituals, ceremonies - Stories, myths, legends - Symbols - Language/jargon/gestures

Artifacts/Symbols
Visible objects, actions, stories that represent the culture Most easily changed Rites, rituals, ceremonies Stories, myths, legends Symbols Language/jargon/gestures

Behavior Patterns
- Shared ways of interacting, approaching a task - Shared ways of responding to something new

Norms
- Socially constructed preferences - Group expectations about how things should be done

Values
- Preferred states - Feelings & beliefs about whats good or right

Shared Assumptions
- Taken for granted - Not conscious - Hard to change

Vision Mission Goals & Objectives Strategies Structure Culture Behaviour Performance

values and beliefs

development of organizational culture

Vision Mission Goals & Objectives Strategies Structure Culture Behaviour Performance

Artifacts & creation Technology Arts Visible & Audible Behavior Patterns

Visible but often not decipherable

Values

Greater levels of awareness

Basic Assumption Relationship to environment Nature of reality Time & Space Nature of Human activities Nature of Human Relationship

Taken for granted Invisible preconscious

Levels of Culture and its interaction

Developing OC involves
* Developing a strong corporate identity

* Development of important values

* Building healthy traditions

* Developing consistent management practices

Cultural aspect of HRD concerned with

* Development of Appropriate OC * Creating conducive Org. Climate * Improving Communication * Evolving effective reward system

Strong Corporate Identity

develops when employees have a sense of belonging, and feel proud of working with the organization, which develops as a result of interaction of employees with the organization. * Developing an attractive Induction Booklet * Films on success experiences in the organization * Company newsletters * Mobility of People

Developing important values

Values of excellence and human consideration develop only by demonstrating these values in action.

* Surveys of Values and differences b/w espoused v/s practiced values * Special value orientation programmes * Examining the various systems operating in the organization * Special OD intervention in Cooperation and Collaboration

Building Healthy traditions & practices

Traditions are built in org. on the basis of important Functional rituals or celebrations * Induction programme for new entrant * Promotions as transition * Ritual associated with old age and retirement * Exceptional behaviour * Celebration of special individual & important organizational days

* Autocratic or feudal culture is characterized by centralized power concentrated in a few persons, and observation of proper protocol in relation to the person/s in power. * Bureaucratic culture is characterized by primacy of procedures and rules, hierarchy and distant and impersonal relationship. * Technocratic culture emphasizes technical / professional standards and improvement. * Entrepreneurial culture in concerned about achievement of results and providing excellent services to the customers.

Profile of OC
Cultures
Autocratic/ Feudal

Focus
Proper Protocol

Climate

Ethos

Dependency+ All opposite Affiliation values of OCTAPACE Bureaucratic Rules & Control + safe playing, Regulations Dependency inertia, conflict & closed Technocratic Perfection Expert power proaction, + Extension autonomy, collaboration, experimentation Entrepreneurial/ Results, Achievement OCTAPACE Democratic/ Customers +Extension Organic

ACQUIRE
Basic new knowledge, facts, skills, process, concepts, values and beliefs etc..

TEST
Implications of concepts in new situations

EMBED
New knowledge through reflection and practice

INTEGRATE
New facts into existing concepts and

generalization

Learning Culture Model

Building Culture
Recruitment and selection. Socialization. Performance Evaluation. Leadership. - Employee Motivation & Decision Making Compensation Packages. Grievance Handling. Conflicts & Differences handling. Discipline & Morale Career Planing and Development

Measuring Organizational Culture

Quantitative
Questionnaire & Survey

Qualitative
Depth Interview Clinical Intervention Analyzing Visual Artifacts. Analyzing stories, rituals and myths. Participant Observation.