Organisation culture &Climate

8/9/2019 Organisation culture &Climate

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ORGANIZATIONAL CLIMATE & CULTURE

Definition:Organizational culture refers to a system of shared meaning held bymembers that distinguishes the organization from otherorganizations.

The research suggests that there are seven primary characteristicsthat in aggregate, capture the essence of an organizations culture.1. Innovation and Risk Taking2. Attention to Orientation3. Outcome orientation4. People Orientation5. Team Orientation6. Aggressiveness7. Stability


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Uniformity of Culture:

A common misconception is that an organization has auniform culture. An organization culture is a commonperception held by the organizations member everyone in theorganization would have to share this perception. However, allmay not do so to the same degree. As a result, there can be adominant culture as well as subcultures throughout a typicalorganization.

Dominant Culture is a set of core values shared by a majorityof the organizations members. For e.g. At Hewlett Packard,most of the employees seems to share a concern for product.Innovativeness, product quality, and responsiveness tocustomer needs.


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Subculture is a set of values shared by a minority usually asmall minority, of the organizations members. It reflectcommon problems, situations or experiences that membersface. These subcultures are likely to be defined by dept,designations and geographical separation. The purchasing

dept, for e.g. can have a subculture that is uniquely shared bymembers of that dept. It will include the CORE VALUES of the dominant culture plus additional values unique tomembers of the purchasing dept.

CORE VALUES : The primary or dominant values that areaccepted throughout the organization.

STRONG CULTURES: Cultures in which the core values areintensely held and widely shared.


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Beginning of Organizational Culture: It can be developedin a number of ways, the process usually involves some versionof the following steps:

1. A single person (founder) has an idea for a new enterprise.

2. The founder brings in one or more other key people andcreate a core group that shares a common vision with thefounder.

3. The founding core groups begins to act in concert to createan organizations by raising funds, obtaining patents,incorporating, locating space, building and so on.

4. At this point, others are brought into the organization, and acommon history begins to built.

Example: Motorola, Mac Donalds and Wal-Mart.


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MOTOROLA:Establish by Paul V. Galvin in 1928

Core Values Constant Renewal

Awarded Malcolm Baldrige National Quality Award.

Galvin Described Cultural Values of quality and customer service The paramount idiom in our Company is total customersatisfaction. And total in our case means total. It does not mean a lot,it does not mean best in class. It means every thing.


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McDonalds:Started with multimixture machine.

Franchise bought by Ray Kroc

Core Culture: Quality, Cleanliness, Service and Price.

His values are his thoughts on cleanliness If you have got timeto lean, you have got time to clean.

Competition: When you are green you grow, when you are ripe,you rot.


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Socialization: The process that adapts employees to theorganizations culture:

STARTCareful Selection

of entry levelcandidates

Humility- inducingexperiences promote

openness to wardaccepting organizations

norms & values

In-the trenchestraining leads tomastery of a core

discipline

Rewards and controlsystems are meticulously

refined to reinforce behaviour that is deemed pivotal to success in the

market place

Adherence to valuesenables the

reconciliation of personal sacrifice

Reinforcingfolklore

Consistentrole models

DESELECT

Fig: Steps of Socialization


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Changing Organization Culture :

Guidelines:

Developing a sense of history.Creating a sense of oneness

Promoting a sense of membership

Organization must be careful not to abandon their roots &blindly copy the so called successful or excellentcompanies.


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Example: Procter & Gamble

The work team concept in which production and maintenanceworkers called technicians are required to master and use asecond skill, was extended throughout P&Gs operations.

The lifetime job tradition that once made P&G worker the envy of their blue-collar counterparts elsewhere gave way to layoffs.

Executives and workers were put on notice that plants that did notmeasure up on productivity, cost and quality would be shut down.

A determined management vigorously resisted attempts byorganized labour to dictate how P&Gs operation should be run.

P&G trimmed its work force by 5% on the plant floor and 4%company wide.


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Merging Organizational Culture:

Merger Strategy Description Works Best When

Assimilation Acquired Companyembraces acquiringfirms culture

Acquired firm has aweak culture

Deculturation Acquiring firm imposesits culture on unwillingacquired firm

Rarely works maybe necessary onlywhen acquiredfirms culture doesnot work employeesdo not realize it.

Integration Combining two or morecultures with a newcomposite culture.

Existing culture canbe improved.


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Merging Organizational Culture:

Merger Strategy Description Works Best When

Separation Merging Companiesremain distinct entitieswith minimal exchangeof culture ororganizational practices

Firms operatesuccessfully indifferent businessrequiring differentcultures.

Fig: Strategies for merging different organizational culture.

Source: based on ideas in AR. Malekazeda and A-Nahavandi; making mergers work by managing cultures.Journal of Business Strategies.


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Strengthening Organizational Culture: Five Strategies.

Fig: Strategies for strengthening organization culture.

StrengtheningOrganizational

Culture

Actions of Founders &

LeadersIntroducing

culturallyconsistentrewards

Maintaininga stable

work-force

Managingthe cultural

network

Selecting andsocializing

employees

Organisation culture &Climate

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