Organisational Culture

Systematic system of shared meaning held by members that distinguishes the organisation from other ones.

This system of shared meaning is a set of key characteristics that the organisation values.

Characteristics:Innovation and Risk taking.Attention to detailOutcome OrientationPeople OrientationTeam OrientationAggressivenessStability

Philosophy of Organisation’s

founders

Selection Criteria

Top Manageme

nt

Socialization

Organisation Culture

Networked

(Club)

Communal

(Academy)

Fragmented

(Fortress)

Mercenary

(Baseball)

High

Low

Low High

SOC

IAB

ILI

TY

SOLIDARITY

The two Dimensions:

Sociability: Measure of Friendliness.

Solidarity: Measure of Task Orientation. High Solidarity means people can overlook personal biases and rally behind common interests and common goals. Solidarity is consistent with high attention to detail and high aggressiveness.

Four Culture Types(Given by Goffee

& Jones):Networked(high soc, low sol) These organisations view members as family and

friends.The negative aspect associated with this culture is that the focus on friendliness may lead to tolerance for poor performance.

Mercenary (low soc, high sol) These organisations are goal focused.They have a zest for

getting things done quickly and a powerful sense of purpose.The negative point is that it can lead to inhumane treatment of low performers.

• Fragmented (low soc, low sol) Commitment is first to these organizations. Employees are judged on the basis of their

productivity and quality of their work.• Communal (high soc, high sol) Values both friendship and performance.

Leaders tends to be charismatic and inspirational. The charismatic leaders tend to create disciples rather than followers, resulting in a work climate that is almost cult like.

Types as Given by “Sonnenfeld”

Academy Culture (high soc, high sol) Employees are highly skilled and tend to stay

in the organization, while working their way up the rank. The organization provides a stable environment in which employees can develop and exercise their skills. Eg.- universities, Hospitals etc.

Base Ball team culture (low soc, high sol) Employees are ‘free agents’ who have highly

prized skills. They are in high demand and can rather easily get job elsewhere. Eg- Investment banking, Advertising

Club Culture(high soc, low sol) The most important requirement for

employees in this culture is to fit into the group. Usually employee start at the bottom and stay with the organization. Eg- military etc.

Fortress(low soc, low sol) Employee don’t know if they will be laid or

not. These organization often undergo massive reorganization. There are many opportunities for those with timely, specialized skills. Eg- Large car co.

Hofstede Dimension Of Culture

Power DistanceUncertainty AvoidanceIndividualism and CollectivismMasculinity v/s Feminity

Elements:The ParadigmControl SystemOrganisational Structure(Reporting

Lines,Hierarchy)Power StructureSymbols(Logos and Designs)Rituals and RoutinesStories and Myths

External

Internal

Flexible Stability

Organisational Culture Assessment Instrument

CULTURAL MULTIPLICITY

Culture is synthesis of mgmt values, styles & communication

Synergistic collaboration b/w culturesAbility & eagerness to learnNational & cultural frameworkMultiplicity should translate into strength“unity in diversity”, a USP for Indian mgrs:Flexible responseDeliberate improvizationCreative innovationProactive tolerance

INDIA IS DIFFERENTStrong business culture evolves along

several dimensions:Timings: “me-too” approachInnovation: “proactive opportunistic”

approachBusiness systems: changing the rules of

established business in order to gain competitive edge

Corporate strategy: “strategie-c’est moil”

BIGGER, BETTER, BRIGHTER DAYS AHEAD

Framework: hard & soft factorsSoft factors: corporate culture, corporate

communication, leadership style, individual motivation, entry prerequisites, career modalities.

Hard factors: economic structures, organisational structures, decision patterns, corporate strategy, strategic success factors.

Willingness to learn, to review & revise preconceptions, break prejudices & inhibitions

“mgr need to look far beyond his own nose”

Integration of country specific features into mgmt cultures of corporations

Corporate communication Leadership style

Individual motivation

Entry prerequisites

Career modalities

Economic structures Organizational structures Decision patterns

Corporate strategy

Strategic success factors

Soft factors

Hard factors

Hard & soft dimensions of culture : A framework

CULTURES CAN BE CHANGED.

In the following conditions the culture is/ can be changed

• Dramatic crisis: questioning the relevance of current culture.

• Turnover in leadership: provides new set of key values to crisis.

• Young and small organizations.• Weak culture.

• Stories about important events and people.• Organizational systems and procedures: the

way we do things around here.• Design of physical space, fercades and

buildings.• Organizational design and structure.

STRATEGIES ADOPTED BY LEADERS FOR TRANSFORMING CULTURE IN

ORGANIZATIONTransformational leaders must “ promulgate

the culture”According to EDGAR H SCHEIN some steps :Leaders should pay attention to control and

measures: something measured and emphasized will have effects.

Leaders reactions to critical incidents and organizational crisis: crisis brings out the underlying core values.

Deliberate role modeling, teaching and coaching: walking the talk is very necessary for transforming the culture.

Managing & Changing Culture

If culture is a critical determinant of organisational effectiveness, then it is essential for the organisational leaders to understand the critical aspects of managing and changing the organisational culture.

There are several conditions which facilitate change and guidelines for initiating change.

Conditions for Cultural ChangeThere are five situations that facilitate change

in the culture:• When the environment is undergoing

fundamental changes, and the company has always been highly value-driven.

• When the industry is highly competitive and the environment changes quickly.

• When the company is mediocre, or worse.• When the company is truly at the threshold of

becoming a large corporation.• When the company is growing very rapidly.

Guidelines for facilitating CultureManagers can act as positive role models for the

cultural values.New symbols and rituals can replace the earlier

ones.Eg: Many organisations introduce a new dress code

for its members to create changes in the organisational identity.

• The reward system must encourage the acceptance of new set of values.Employees practising new values must be identified,supported and rewarded.

Eg: If the new values emphasise team-spirit the

performance system must reinforce group efforts rather than individual achievement only.

• The selection,placement and socialisation systems must be to align with new values.

• Since the major resistance to cultural change comes from the subcultures,the efforts of the manager must focus on either diluting their influence in the organisation(eg: through extensive job rotation) ,or should aim at integrating them in the mainstream organisational culture.

• Do not forget that culture is something which is shared and not imposed.Employee acceptance must be solicited through participation around new values.

Driven by passion for new products with no end to challenges and opportunities.‘Work hard Play hard’ ethics – Goal: To make tech. seamless for everyone.Style not too formal but result driven approach.Focus on career opportunities & employability security, compensation and benefits

offered.Fosters Culture of Secrecy (Surprise factor)Despite being coolest company, there is strong work ethics and commitment to deadlines.“Steve Jobs have made Apple an institution of himself.”

f

Wal-Mart: Founder Sam Walton’s concern and respect for staff from the foundation of the company creates an environment of trust that persists to this day. Walton met staff, calling them by their first name and encouraged change to maintain the competitive edge.

Southwest Airlines: Its relaxed culture can be traced back to unconventional CEO Herb Kelleher, who encourages informality and wants staff to have fun at their jobs. Employees are valued, with Kelleher acknowledging births, marriages and deaths by notes and cards. Staff are encouraged to pitch in and help out, especially at check-in, giving Southwest turnaround times less than half the industry average .

When Chrysler Corporation and Daimler-Benz announced their merger in the late 1990s, it caused a stir in the automotive industry. Mergers and acquisitions have occurred in many different industries, particularly in the 1980s and 1990s, but the automotive industry had not seen a merger of such large companies based in different countries that had vastly different corporate cultures. This research considers the rationale for mergers and acquisitions in general, and considers the potential and the reality of the Daimler-Chrysler merger in particular.

" Daimler-Benz was characterized by methodical decision-making while Chrysler encouraged creativity. Chrysler was the very symbol of American adaptability and resilience. Chrysler valued efficiency, empowerment, and fairly egalitarian relations among staff; whereas Daimler-Benz seemed to value respect for authority, bureaucratic precision, and centralized decision-making. These cultural differences soon became manifest in the daily activities of the company.

For example, Chrysler executives quickly became frustrated with the attention Daimler-Benz executives gave to trivial matters, such as the shape of a pamphlet sent to employees.

Another key issue at DCX was the differences in pay structures between the two pre-merger entities. Germans disliked huge pay disparities and were unlikely to accept any steep revision of top management salaries. But American CEOs were rewarded handsomely.