This is Topic of Organizational Behavior. We visited a company and discussed with them culture of Organization

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2. Dedication
This work is respectfully dedicated to Our
Parents
&
Prof. Ahmad Rana
Who did their best to uplift us to the heights
Of ideal and successful life.
Love u all very much
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3. Organizational Culture
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4. Presented to:
Prof. Ghulam Ahmad Rana
Presented by:
Mian Skandar (1694)
Mohsin Javed (1707)
Hassan Nazir (1688)
Ahmad Fraz (1690)
Hajvery University, Euro camp. Lahore.
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5. The Meaning & Content
• No Universal Definition.
• Various Conceptual Frameworks.
• Dimensions of OC.
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6. What is Organizational Culture?
Every Organization has its own distinctive culture which
sets it apart from all other organizations, including those
which are operating in the same field.
Organizational culture basically refers to a system of
shared norms, beliefs, values, assumptions, attitudes and
behaviours which bind the members of the organization
together and determine ‚how we do things around here‘.
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7. What is Organizational Culture?
• A system of meaning shared by the
organization’s members
• Cultural values are collective beliefs,
assumptions, and feelings about what
things are good, normal, rational, valuable,
etc.
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8. Is There a Difference Between
Organizational & Corporate Culture?
Organizational culture and corporate culture are usually
used interchangeably.
Both refer to the collective values, outlooks and
approaches within an organization.
Obviously, the term corporate culture focuses on for-profit
corporations, while organizational culture extends
to all forms of organizations including small business,
privately held companies and nonprofit organizations.
However, the meaning is essentially the same.
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9. Culture’s Overall Function
Culture is the social glue that helps hold an
organization together by providing
appropriate standards for what employees
should say or do.
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What Is Organizational Culture?
• Innovation and risk taking
• Outcome orientation
• People orientation
• Aggressiveness
• Family-friendly

11. Organizational Culture – A Note of Caution!
Several research studies have been conducted over the years
in the US and other countries to determine the
relationship between Organiza-tional Culture and
Organizational Performance.
Excercize caution in interpreting the results of these
researches because studies undertaken in one country
reflect the cultural, social and psychological context of that
country and may not be valid for countries like Pakistan.
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12. Schein (1985)
“ …a pattern of basic assumptions-invented,
discovered or developed by a given group as it learns
to cope with 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.”
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13. Pareek (1995)
“ … a cumulative preference of some states of life
over others (values), the predispositions concerning
responses towards several significant issues and
phenomena (attitudes), organized ways of filling time
in relation to certain affairs (rituals), and ways of
promoting desired behaviours and preventing
undesirable ones (sanctions).”
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How Organizational
Cultures Form
Philosophy
of the
Organization’s
Founders:
Ben & Jerry,
Herb Kelleher,
Bill Gates
Organizational
Culture
Selection
Top
Management
Socialization

15. How Culture Begins
• Founders hire and keep only employees
who think and feel the same way they do.
• Founders indoctrinate and socialize these
employees to their way of thinking and
feeling.
• The founders’ own behavior acts as a role
model that encourages employees to
identify with them and thereby internalize
their beliefs, values, and assumptions.
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16. Profile of OC
Cultures Focus Climate Ethos
Autocratic/ Proper Dependency+ All opposite
Feudal Protocol 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
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17. Organizational Culture Profile
Org Culture
Dimensions Dimension Characteristics
Innovation
Experimenting, opportunity seeking, risk taking, few
rules, low cautiousness
Stability Predictability, security, rule-oriented
Respect for
Fairness, tolerance
people
Outcome
orientation
Action oriented, high expectations, results oriented
Attention to
detail
Precise, analytic
Team
orientation
Collaboration, people-oriented
Aggressiveness Competitive, low emphasis on social responsibility
Source: O’Reilly et al (1991)

18. How Employees Learn Culture
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• Stories
• Rituals
• Material Symbols
• Language

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Stories Rituals
How Employees
Learn Culture/
How it is “reinforced”
Material
Symbols
Language

20. Artifacts- Window into Culture
1. Organizational Stories/ Legends
-serve as powerful prescriptions of the way things
should (should not) be done.
2. Rituals
-the programmed routine of daily organization life
that dramatizes the organization culture
3. Ceremonies:
- planned activities specifically for the
benefit of an audience.
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4. Organizational Language:
-language of the workplace
speaks volume about company’s culture.

22. 5. Physical Structure and Symbols:
-size, shape, location of head office;
layout of organization’s offices
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23. Cultural Analysis Technique
• Diagnosing Organizational Culture for Strategic
Application (DOCSA)
– Hofstede identifies dimensions of organizational
culture (www.docsa.com)
– When applied to different subsidiaries of an MNC
different corporate cultures can be identified and
proactive solutions developed to ensure
compatibility between all subsidiaries
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Organizational Culture
Functions Liabilities
Controlling behavior
 Defining boundaries
 Conveying identity
 Promoting commitment
Blocking mergers
 Inhibiting diversity
 Inhibiting change
 Blocking acquisitions

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Do Organizations Have Uniform
Cultures
Core
Values
Subcultures
Dominant
Culture

26. Do Organizations Have Uniform
Cultures?
Dominant Culture
Expresses the core values that
are shared by a majority of the
organization’s members
Subcultures
Minicultures within an
organization, typically defined by
department designations and
geographical separation
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27. Do Organizations Have Uniform
Cultures? (cont’d)
Core Values
The primary or dominant values that are accepted
throughout the organization
Strong Culture
A culture in which the core
values are intensely held
and widely shared
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28. Culture’s Effects on Managerial Process
• Decision Making (Central/Decentralization)
• Safety vs. Risk
• Individual vs. Group Rewards
• Informal/Formal Procedures
• Organizational Loyalty
• Co-operation vs. Competition
• Time Horizons- Long or Short
• Stability Innovation
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29. Dimensions of Corporate Culture
Motivation
Activities-------------------------------Outputs
To be consistent and precise To be pioneers. To
To strive for accuracy and pursue clear aims and
Attention to detail. To refine objectives. To innovate
And perfect. Get it right. and progress.
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30. Dimensions of Corporate Culture
Relationship
Job-----------------------------------Person
To put the demands of the job To put the needs of the
before the needs of the individual before the
Individual needs of the job
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31. Dimensions of Corporate Culture
Identity
Corporate-----------------------------Professional
To identify with and uphold the To pursue the aims and
expectations of the employing ideals of each professional
organizations practice.
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32. Dimensions of Corporate Culture
Communication
Open----------------------------------Closed
To stimulate and encourage To monitor and control
a full and free exchange the exchange and
of information and opinion accessibility of information
and opinion
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33. Dimensions of Corporate Culture
Control
Tight -------------------------------Loose
To comply with clear and To work flexibly and
definitive systems and adaptively according
procedures. to the needs of the
situation.
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34. Dimensions of Corporate Culture
Conduct
Conventional----------------------------Pragmatic
To put the expertise and To put the demands and
standards of the employing expectations of customer
organization first. To do what first. To do what they ask.
we know is right.
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35. Mohsin Javaid
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36. Fullfillment-orientated
Incubator
Equity
Project-Oriented
Guided Missile
Family
Power-oriented
culture
Eiffel-Tower
Rule-oriented
culture
Person
Emphasis
Hierarchy
Task
Emphasis
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37. • Family culture
– Strong emphasis on hierarchy and orientation to
the person
– Family-type environment that is power oriented
and headed by a leader who is regarded as a
caring parent
– Management looks after employees, and tries to
ensure that they are treated well and have
continued employment
– May catalyze and multiply the energies of the
personnel or end up supporting a leader who is
ineffective and drains their energies and loyalties
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38. • Eiffel Tower
– Strong emphasis on hierarchy and orientation to the
task
– Jobs are well defined, and everything is coordinated
from the top
– This culture is narrow at the top, and broad at the
base
– Relationships are specific, and status remains with the
job.
– Managers seldom create off-the-job relationships with
their people, because they believe this could affect their
rational judgment
– This culture operates very much like a formal hierarchy—
impersonal and efficient and loyalties 38

39. • Guided Missile
– Strong emphasis on equality in the workplace and
orientation to the task
– This culture is oriented to work
– Work typically is undertaken by teams or project
groups
– In projects, formal hierarchical considerations are given
low priority, and individual expertise is of greatest
importance
– All team members are equal (or at least potentially equal
– All teams treat each other with respect, because they
may need the other for assistance
– Egalitarian and task-driven organizational culture
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40. • Incubator
– Strong emphasis on equality and personal
orientation
– Based on the premise that organizations
serve as incubators for the self-expression
and self-fulfillment of their members
– Little formal structure
– Participants in an incubator culture are there
primarily to perform roles such as confirming,
criticizing, developing, finding resources for, or
helping to complete the development of an
innovative product or service
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Hassan Nazir

43. 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
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44. Benefits of Strong Corporate Cultures
Strong
Organizational
Culture
Social
Control
Social
Glue
Improves
Sense-Making
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45. 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
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46. What is a healthy Organizational
Culture?
 A healthy organizational culture is one which should help all the
supervisors and employees of the company to be on the same
page as those in charge.
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A good organizational culture is of benefit to every member of
the company from the very top to the very bottom.
If any group of workers feels marginalized, then the culture can
be improved.

47. 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
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Ahmad Fraz

49. Changing Culture
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50. Changing Culture
Changing the organizational culture of a workplace
can be difficult. But, it may be necessary to improve
workplace performance.
A leader can have a profound impact on the work
environment, but he or she must work down
through the layers of supervision.
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51. Changing Culture
Understand the environmental & other forces that will
influence your future strategy
Determine what are the core values that have been
fundamental to your business identity, core purpose & success
and that you will not compromise
Create a shared vision of what the company needs to become
Assess the existing culture & determine what elements of
culture need to change
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52. # Define the role of senior management in leading the culture
change
# Craft an implementation plan with targets of intervention,
time lines, milestones & accountabilities
# Communicate the need for change and plan for change and
create motivation and buy in among key stake holders
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53. # Identify obstacles and sources of resistance and develop
strategies for getting around them
# Institutionalize, model and reinforce the changes in culture
# Continually reassess the organization’s culture and establish
a norm of continuous learning and transformation
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54. How to Change Culture
• Have top-management people become positive role
models, setting the tone through their behaviour.
• Create new stories, symbols, and rituals to replace
those currently in vogue.
• Select, promote, and support employees who
espouse the new values that are sought.
• Redesign socialization processes to align with the
new values.
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55. How to Change Culture
• Change the reward system to encourage acceptance
of a new set of values.
• Replace unwritten norms with formal rules and
regulations that are tightly enforced.
• Shake up current subcultures through transfers, job
rotation, and/or terminations.
• Work to get peer group consensus through utilization
of employee participation and creation of a climate
with a high level of trust.
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56. How to Change Culture
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Unfreezing
• Arouse dissatisfaction with the current state
– Tell them about deficiencies in organization
• Activate and strengthen top management support
– Need to break down power centers
• Use participation in decision making
– Get people involved
• Build in rewards
– Tie rewards to change/use recognition, status symbols, praise
to get people to go along

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Moving
• Establish goals
– E.G. Make business profitable by end of next
year
• Institute smaller, acceptable changes that
reinforce and support change
– E.G. Procedures and rules, job descriptions,
reporting relationships
• Develop management structures for change
– E.G. Plans, strategies, mechanisms that
ensure change occurs
• Maintain open, two-way communication

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Refreezing
• Build success experiences
– Set targets for change, and have everyone work toward targets
• Reward desired behaviour
– GOOD - reward behaviour that reinforces changes
– BAD - reward old system (e.g., people relying on old systems while
computerization is going on)
• Develop structures to institutionalize the change
– Organizational retreats, appropriate computer technology,
performance appraisals that examine change efforts
• Make change work

60. Effects of
Organizational Culture
Functional
• Boundary-defining role
• Conveys a sense of
identity
• Facilitates the generation
of commitment
• Enhances social system
stability
• Sense-making and control
mechanism
Dysfunctional
• Shared values do not
agree with organization’s
effectiveness
• Environment is dynamic
• Entrenched culture in
rapid change
• Hinders ability to respond
to changes
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61. Keeping Culture Alive
• Selection
– Concern with how well the candidates will fit
into the organization
– Provides information to candidates about the
organization
• Top Management
– Senior executives help establish behavioral
norms that are adopted by the organization
• Socialization
The process that helps new
employees adapt to the
organization’s culture
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62. Problems with Strong Cultures
• Culture content might be incompatible with the
organization’s environment.
• Strong cultures focus attention on one mental
model.
• Strong cultures suppress dissenting values from
subcultures.
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63. Adaptive Organizational Cultures
• External focus -- firm’s success
depends on continuous change
• Focus on processes more than
goals
• Strong sense of ownership
• Proactive --seek out
opportunities
AP/Wide World

64. Strengthening Organizational Culture
Founders
and leaders
Strengthening
Organizational
Culture
Culturally
consistent
rewards
Stable
workforce
Selection
and
socialization
Managing the
cultural
network
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65. Point-Counter Point
• Why Culture Doesn’t
Change
 Culture develops over many
years, and becomes part of
how the organization thinks
and feels
 Selection and promotion
policies guarantee survival
of culture
 Top management chooses
managers likely to maintain
culture
• When Culture Can
Change
 There is a dramatic crisis
 There is a turnover in
leadership
 The organization is young
and small
 There is a weak culture
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66. Bicultural Audit
• Part of due diligence in merger
• Minimizes risk of cultural collision by
diagnosing companies before merger
• Three steps in bicultural audit:
1. Examine artifacts
2. Analyze data for cultural conflict/compatibility
3. Identify strategies and action plans to bridge
cultures
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67. Merging Organizational Cultures
Assimilation
Deculturation
Acquired company embraces acquiring
firm’s cultural values
Acquiring firm imposes its culture on
unwilling acquired firm
Integration
Cultures combined into a new composite
culture
Separation
Merging companies remain separate with
their own culture
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68. Our Visit to State life Insurance
Corporation
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73. Interview With Lahore Zone Head
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Mr. Shafeeq Bhullar

74. Interview With Sales Manager
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Mr. Muhammad Yousuf.

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76. Questions
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77. Mr. Shafeeq: Friendly environment,
Unity, Punctuation.
Mr Yousuf: Unity, Honesty, Motivation
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Q 1.If you could describe your corporate culture in three words,
what would you say?

78. Q 2. What are the most common complaints
employees make about your company culture?
• Mr. Shafeeq: Usually they don’t have any
complain, some time some new employees
get disturb by Delay in Payments, Long
process of payments.
• Mr. Yousuf: There is no complain, we have
frankly culture, we work here as family.
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