2. Organizational Culture
Organization culture refers to a
system of shared meaning held
by members that distinguishes
from other organizations.

3. Seven common elements/characteristics
1. Innovation & risk taking: the degree to which
employees are expected to be creative and take risks.
2. Stability: degree to which activities focus on the status
quo rather than change.
3. Attention to detail: degree to which there is concern
for precision and detail.
4. Outcome orientation: degree to which management
emphasizes results.
5. People orientation: degree to which management
decisions are sensitive to individual.
6. Team orientation: degree to which work activities are
organized around teams rather than individuals.
7. Aggressiveness: degree to which employees are
expected to be competitive than easy going.

4. Functions of Culture
 Defines the boundary between one organization
and others.
 Conveys a sense of identity for its members.
 Facilitates the generation of commitment to
something larger than self-interest.
 Acts as social glue that helps to hold the
organization together by providing appropriate
standards for employees to follow.
 Serves as a sense-making and control
mechanism for fitting employees in the
organization

5. Culture as a liability
Dysfunctions of culture: especially applicable in
strong culture
 Barrier to change: occurs when organization’s
environment is dynamic & organization has strong
culture that worked well in past.
 Barrier to diversity: strong cultures put considerable
pressure on employees to conform. Diverse behaviors are
likely to diminish in strong cultures as people attempt to
fit in.
 Barrier to acquisition & merger: related to financial
advantage and product synergy but cultural
compatibility is the primary concern.

6. Creating culture
 Organization culture does not pop out of thin air.
 It takes time to develop and also difficult to fade
away.
 Organization’s current customs, traditions, and
general way of doing things start with founders,
success and achievement.
Culture creation occurs in 3 ways:
1. Hiring and keeping employees who think and feel
the way founders do.
2. Socialize employees to the founder’s way of thinking
and feeling.
3. Founder’s own behavior acts as a role model.

7. Sustaining culture
Organization culture is kept alive by:
Selection: the main theme behind selection is to identify and
hire a person of knowledge, skill and abilities who could
perform job one after matching the need of the
organization with that of an individual well without
creating any problem. It is a two way street. Applicants also
learn about organization.
Top Management: Top manager’s behavior reflect on
organization culture. Well behaved, dress, right judgment
on performance by the managers, filter down to
organization as to whether risk taking is desirable. So as
others do.
Socialization: It is a process which help the employees to
adapt to the culture of the organization. It is a process of
adaptation. New employees are to be fully indoctrinated in
the culture of organization through socialization.

8. Stages of socialization
Pre-arrival stage: It is the period of learning in the
socialization process that occurs before the new employee
joins the organization. Employees come with different value
and norms. Requirements to be fulfilled for the job along with
other behavior leaves tremendous impression on the new
comers.
Encounter stage: New comers confronts expectation and
reality diverge. Proper attention by means of induction
program, social get-together etc helps to get them adapt to
new culture.
Metamorphosis stage: It is the time for the new employees to
be changed and get adjusted to the job, work group and
organization.

9. Property right
system
Characteristics Organisational Organisational
of people within culture structure
the organisation
For details, refer Organisational
to seminar slides ethics

10. Typologies of Culture
Power culture
Leadership in few, entrepreneurial in nature
Role culture
Clearly defined roles and rules, power balanced
between the leadership and structure
Achievement culture
Stress on motivation, commitment and action
Support culture
Mutuality, trust, relationships, solidarity
Person culture
Individual as the central point

11. Generic Corporate Culture
Source of values
Charismatic Organisational
leadership traditions
Entrepreneurial Strategic
Functional
(external, short (external, long
Focus of term) term)
values
Chauvinistic Exclusive
Elitist
(internal, short (internal, long
term) term)

12. The Entrepreneurial Culture
Source - a charismatic leader
Basis for strong corporate culture
Initial value orientation of the founder: functional
and externally oriented (to create value for
customers)
Good chance for success because of commitment to
satisfying the changing needs of the environment
Unstable, risky and chance of turning elitist

13. The Strategic Culture
Institutionalisation of functional values
Source – organisational traditions and multiple role
models
External and long run focus
Relatively rational culture without excessive
dependence on charismatic leadership
Focus on preserving corporate identity while still
adapting to changes

14. The Chauvinistic Culture
More internally focused, blind loyalty to corporate
leadership and an overriding concern for institutional
superiority
We – they orientation
Susceptible to the development of “groupthink”,
illusion of invulnerability, self- righteousness and
stereotyping

15. The Exclusive Culture
Institutionalisation of elitist value orientation
Elitist but club like orientation independent of
charismatic leadership
Elitist orientation anchored in well entrenched
organisational traditions

16. Organisational Subcultures
Values shared by a group rather than an
organisation as a whole
Exist in large organisations without a dominant
central corporate culture
May be divisive in the absence of a unifying
corporate culture

17. Positive Culture
People-centred (value on professional and personal
development)
Performance driven (value on performance based
rewards)
Goal oriented (promotion of a clear sense of
direction)
Innovation inclined (stimulation of creative
behaviours)
Client committed (value on serving the needs of
the customers)
Quality obsessed (striving to do better all the time)

18. Cultural Transformation
Not easy –but possible
Identify the “culture now” – culture analysis
Articulate “culture alternative” – culture visioning
Identify “culture gaps” – culture planning
Introduce “culture change” - culture support and
reinforcement

19. Cultural Change Strategies
Develop self awareness by leadership
Avoid equating personal identity with that of the
organisation
Avoid elitist trap
Steps to be followed:
Discourage the development of personality cult or
hero worshipping
Practice delegation and participation to encourage
the development of enduring management structures
independent of the influence of an individual leader

20. Cultural Change Strategies
Steps to be followed:
Encourage constructive dissent to take decision
makers away from the influence of charismatic
leader
Promote functional values (cooperation , discipline,
fairness, initiatives)
Be willing to step aside or move on if the staying
involved inhibits the transition to a more stable and
strategic culture
Recruit and select people with values congruent
with functional organizational values

21. Cultural Change Strategies
Steps to be followed:
Institutionalise the proper functional values by
extensive socialisation
Prevent the development of counter-cultures by a
strong central culture
Remove the charismatic leader if he/ she is
blocking the effective transformation of the
entrepreneurial organization into a strategic
culture

22. Cultural Change Strategies
Deliberate role modelling, teaching and coaching by
leaders
Criteria for allocation of rewards and status
Criteria for recruitment, selection, promotion and
commitment
Promotion of functional values
Socialisation programmes

23. Creating an Ethical Organizational Culture
Characteristics of organizations that develop high
ethical standards
 High tolerance for risk
 Low to moderate in aggressiveness
 Focus on means as well as outcomes
Managerial practices promoting an ethical culture
 Being a visible role model.
 Communicating ethical expectations.
 Providing ethical training.
 Rewarding ethical acts and punishing unethical ones.
 Providing protective mechanisms.

24. Creating a Customer-Responsive Culture
 Key variables shaping customer-responsive
cultures
 The types of employees hired by the organization.
 Low formalization: the freedom to meet customer
service requirements.
 Empowering employees with decision-making
discretion to please the customer.
 Good listening skills to understand customer
 Role clarity that allows service employees to act as
“boundary spanners.”
 Employees who engage in organizational citizenship
behaviors.

25. Creating a Customer-Responsive Culture
Managerial Actions :
 Select new employees with personality and
attitudes consistent with high service orientation.
 Train and socialize current employees to be more
customer focused.
 Change organizational structure to give
employees more control.
 Empower employees to make decision about their
jobs.