6 Culture Session 6 [Compatibility Mode] (1)

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

6 Culture Session 6 [Compatibility Mode] (1)

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