Organizational culture is a system of shared beliefs &
attitudes that develop within an organization & guides the behaviour of its members. It is also known as "corporate culture", & has a major impact on the performance of organization & especially on the uality of work life e!perienced by the employees. Organizational culture "consists of the norms, values & rules of conduct of an organization as well as management styles, priorities, beliefs & inter"personal behaviours. #ogether they create a climate that in$uences how well people communicate, plan & make decisions". Organizational culture is a set of beliefs, assumptions, values, shared feelings & perceptions which in$uence the actions & decisions taken by the organizational members. %or e.g., if the culture encourages innovativeness, any problem will make people take initiative & risks, & try out new ways of doing things. On the other hand, if the organizational culture is security oriented, the same problem situation would cause people to start looking for rules, procedures as a mode of response. &ach & every organization has a culture that in$uences the behaviour of the employees toward colleagues, supervisors, subordinates, clients, competitors, etc. Internal environment of an organization is often referred to organizational climate. #his makes one organization uniue' such di(erences are found in various kinds of employees in terms of personal characteristics of members such as their values, needs, attitudes, e!pectations, and stay in organization. )hen considered collectively, the actions of the individuals become more meaningful for viewing the total impact upon the climate & determining the stability of the work environment. It should be noted that the climate is to be viewed from a total system perspective. )hile there may di(erences in climates within departments these will be * integrated to a certain e!tent to denote overall organizational climate. Concept of organizational culture:- +ulture consists of beliefs & behaviour. It is cultivated behaviour in the sense that it is learnt from the other members of the society. Organizational culture is the totality of beliefs, customs, traditions & values shared by the members of the organization. Organizational culture stresses on sharing of norms & values that guide the organizational members, behaviour. #hese norms & values are clear guidelines as to how employees are to behave within the organization& their e!pected code of conduct outside the organization. Nature of organizational culture:- #he main features of organizational culture are as follows-" *. .ike an individual, every organization has its own personality. /. #he personality of the organization de0nes the internal environment of an organization. 1. It di(erentiates an organization from the others. 2. It is relatively enduring or stable over time. 3. It e!ercises a signi0cant in$uence on the attitudes, behaviour & performance of organizational members. Elements of organizational culture- " %ollowing are the elements of organizational culture-" *. Individual autonomy- In this the individuals have responsibility, freedom & opportunities of e!ercising initiative that an individual has in the organization. /. Structure- In this the organization creates objectives, performance e!pectations & authority relationships. 1. Management support- In this the managers provide clear communication, assistance, warmth & support to their subordinates. / 2. Identity- In this the members identify with the organization as a whole rather than with their particular work group or 0eld of professional e!pertise. 3. Performance reward system- 4eward system of an organization includes increase in salary, promotions etc., is based on employee performance rather than on seniority & favouritism. 5. is! tolerance- In this employees are encouraged to be innovative, aggressive & risk taking. ole " signi#cance of organizational culture- &ach organization is recognized by its culture. )henever people name an organization, the culture attached to the organization is immediately recalled. One organization is di(erent from other organizations because of cultural values, beliefs & norms. %ollowing are the functions performed by organizational culture-" *. Organizational culture creates the boundary beyond which no employees are allowed to go. #hey automatically observe the organizational standards & norms of behaviour. /. 6n organization is well recognized by its culture. #he culture of an organization provides its stability. 7eople like to continue with the organization. &mployees, customers, 0nancers & other related persons like to remain with the organization. 1. #he social recognition of the organizational culture makes the organization grow & develop in all ways. 2. Organizational culture acts as a motivator that guides & controls the employees. 8atis0ed employees get more spirit & enthusiasm for performing their jobs. 3. #he attitude & behaviour of the employees are directed towards the achievement of goals through a sound culture. 9isciplined employees make other employees disciplined & well"behaved. 5. +ulture gives rise to a positive attitude & behaviour which are again an addition to culture. +ulture leads to good behaviour & good behaviour makes good culture 1 which is useful for better behaviour. :oth employees & the organization enjoy culture. $ey C%aracteristics of Corporate Culture: *. Innovation and is! &a!ing- #he degree to which employees are encouraged to be innovative and take risks. /. 'ttention to (etail- #he degree to which employees are e!pected e!hibit precision, analysis and attention to detail. 1. Outcome Orientation- #he degree to which management focuses on results or outcomes rather than on the techniues and processes used to achieve those outcomes. 2. People Orientation- #he degree to which management decisions are take into consideration and the e(ect of outcomes on people within the organization. 3. &eam Orientation- #he degree to which work activities are organized around teams rather than individuals. 5. 'ggressiveness- #he degree to which people are aggressive and competitive rather easy going. ;. Sta)ility- #he degree to which organizational activities emphasize maintaining the status uo in contrast to growth. &ypes of organizational cultures: " %ollowing are the types of organizational cultures-" *. 'ut%oritarian " participative culture- " In the authoritarian culture there is centralization of power with the leader & obedience to orders & discipline are stressed. 6ny obedience is punished severely to set an e!ample to others. #he basic assumption is that the leader knows what is good for the organization & he always acts in its interests. 2 /. Mec%anistic " organic cultures- " #he mechanistic organizational culture has the values of bureaucracy & so is also called ":ureaucratic +ulture". Organizational jobs are created around narrow specializations & people think of their careers mainly within these specialization. #here is a great deal of departmental loyalty. #his sort of culture resists change & innovation. In organic culture formal hierarchy of authority, departmental boundaries, formal rules & regulations & prescribed channels of communications are found. &mphasis is on task accomplishment, team work, and free $ow of communication < formal & informal. #here is an understanding within the sta( like at the of problems, threats & opportunities the organization is facing & willingness to take part in solving the problems. #he culture stresses $e!ibility, consultation, change & innovation. 1. Su)-culture " dominant culture- " &ach department of an organization may have its own culture representing a sub"culture of the system. 6n organizational culture takes place when there is an integration of all the departments. )ithin any given unit the tendency for integration & consistency will be assumed to be present, but it is perfectly possible for coe!isting units of a larger system to have cultures that are independent & even in con$ict with each other. Creation of culture Organization culture provides the members with a sense of organizational identity & generates a commitment. #hough ideas that become part of culture can come from anywhere within the organization, an organization,s culture generally beings with the leader who implements particular ideas & values as a vision, philosophy or business strategy. )hen these ideas & values lead to success, they become institutionalized & give shape to an organizational culture. 3 +reation of an organization culture is a very lengthy & complicated process. +ulture has 1 levels. =amely-" *. 6rtifacts. /. :eliefs & >alues. 1. 6ssumptions. *. O)serva)le artifacts- " #hese are the symbols of culture in the physical & social work environment & are most visible. %ollowing are the things found in artifacts-" ?i* Organizational %eroes- " 6s a re$ection of the organization,s philosophy, concerns the behaviour of top e!ecutives & their leadership styles. #hese leaders become the role models of an organization,s culture. #hey represent what the company stands for & reinforce the values of the culture. ?ii* Ceremonies " rites- " +eremonies & rites tell about activities that are done on important occasions. @embers of the organization who have achieved success are recognized & rewarded on such occasions. 6nnual convocations at colleges & universities where degrees, diplomas & medals are distributed to the students are re$ections of culture in educational institutions. #hese ceremonies bond organization members together. 8uch ceremonies as company picnics, retirement dinners, encourage interpersonal communication & togetherness. ?iii* Stories- " 8tories about organization,s heroes are powerful tools to reinforce cultural values throughout the organization. #hese stories tell about cultural network & remind employees as to why we do things in a certain way. ?ivA Cultural sym)ols: " 8ymbols tell about organizational culture. +ertain code of dress or company,s logo can re$ect its values. 8ome of the material artifacts created by an organization might also speak of its cultural orientation. 5 /+ S%ared values- " >alues are re$ected in the way individuals actually behave. >alues re$ect an organization,s beliefs as to what should be & what should not be. >alues are those principles & ualities that shape our thinking & behaviour. >alues can be of / types. =amely-" ?iA Instrumental values- " 6re beliefs that certain behaviours are appropriate at all times irrespective of the objectives or outcomes. ?iiA &erminal values:" 6re beliefs that certain more tangible objectives are worth striving for & the objectives become more important than the behaviour in achieving such objectives. >alues are emotionally charged. %or e!ample, @ahatma Bandhi in promoting hand"woven khadi as against te!tiles produced by technologically sophisticated machinery, e!pressed values of human survival. ,+ Common assumptions- 6ssumptions are the most fundamental level of an organization,s culture. #hese are deeply held beliefs which are not objectively observed. %or e!ample, an organization may establish values based on 1 basic assumptions. =amely-" ?iA 7eople are basically good. #his assumption is re$ected in the company,s emphasis on trust. ?iiA 7eople are willing to learn, grow & achieve if they are given proper opportunities. #his assumption is re$ected in the company,s e!tensive training programs. ?iiiA 7eople are motivated by the challenging work. #his assumption is re$ected by the process of common goal setting & goal achievement by participation of members. Maintaining a culture: " -+ Selection process: " #he main purpose of selection process is to select right type of person for the right job. ; )hen for a given job / or more candidates with identical skills & abilities are available then the 0nal selection is in$uenced by how well the candidate 0ts into the organization. It is by selecting the candidates who can match the organizational culture, the management can think of maintaining organizational culture. .+ 'ctions of top management: " :esides managerial vision the actions of the top e!ecutives also have a major impact on the organizational culture. #hrough what they say & how they behave, senior e!ecutives establish norms that help the organization to take risks, how much freedom managers should allow their subordinates, what actions will pay o( during promotions & other rewards. ,+ &%e Socialization process: #he 8ocialization process through which the employees are proselytized about the customs and traditions of the organization is known as socialization. It is the process of adaptation by which new employees are to understand the basic values and norms for becoming CacceptedD members of the organization. 8ocialization is a process made up of three stages- o Pre-arrival- #he 0rst stage, pre"arrival, encompasses all the learning that occurs before a new member joins. o Encounter: In the second stage, encounter, the new employee sees what the organization is really like and confronts the possibility that e!pectations and reality may diverge. o Metamorp%osis: In the third stage, metamorphosis, the relatively long"lasting changes take place. #he new employee masters the skills reuired for hisEher job, successfully performs hisEher new roles, and makes the adjustments to hisEher work groupDs values and norm. C%anging a culture: F *. Clarify values: >alues are the foundation of organizational culture. 6ny culture change must being with clarity about what leaders in the organization value and how those values will drive success. Gelp leaders identify their personal values and create connections between their personal values and the organizationDs values. /. einforce t%e vision: >ision should answer the uestion Hwhere are we goingI. 8uccessful culture change does not reuire a new vision. )hat is reuired is to ensure that the vision paints an inspiring picture of the future that draws on the values embraced by leaders in the organization. @ake sure everyone in the organization is clear on the vision and values < and how those elements lead to the success of the organization as a whole. 1. Empower )e%aviors aligned to values and vision- +hanging behaviors, particularly leader behaviors, is the key driver achieving a culture change. :ehaviors create e!periences for the people in organizations. #hose e!periences are the day"to"day reality of the culture. 9e0ning the behaviors is critical. &ven more critical is removing the obstacles to aligned behavior. 2. 'lign conversations up and down the organization- Bet people talkingJ .eaders should be discussing values, vision and behavior < and their link to organizational success. +ommunication is key and leader driven communication is critical. #hese conversations should be woven through team organizational meetings, team meetings, and one to one performance conversations. 3. &arget e/ort on high impact areas- )eave the values based culture into high impact organizational structures. #his may be your compensation plan, behavioral competency model, performance management process, and E or interviewing process. #hink about training for K your managers in the speci0cs how to lead in a values based culture. 5.Emp%asize success, reward change- 7ublicize your success. @ake sure you communicate major HwinsI back to the organization. #his builds momentum and converts the doubters. 6lso, ensure that recognition is aligned to your values. #hink about formal programs as well as individual recognition. *L