Organizational Culture, & Organizational Climate

Dr. Govind Swaroop Pathak, Professor, Department of Management Studies, Indian School of Mines Dhanbad Dhanbad

Organizational Culture
Shared values and beliefs that underlie a companys identity What types of organizational cultures have you worked in? How does the organizations culture manifest itself?
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Figure 3-1

Understanding Organizational Culture

Antecedents Founders values Industry & business environment National culture Senior leaders vision and behavior Organizational Culture Observable artifacts Espoused values Basic assumptions Collective Attitudes & Behavior Work attitudes Job satisfaction Motivation
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Organizational Structure & Practices Reward systems Organizational design

Group & Social Processes Socialization

Mentoring Decision making

Group dynamics Communication Influence & empowerment Leadership

Organizational Outcomes Effectiveness Innovation & stress

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Layers of Organizational Culture

Observable artifacts Examples? Values enduring belief in a mode or conduct or end-state Difference between espoused and enacted? Basic Assumptions
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Four Functions of Organizational Culture

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Three Types of Cultures

Constructive Passive-defensive Aggressive-defensive

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Constructive Culture

Table 3-1

Constructive Culture employees are encouraged to interact with

others and to work on tasks and projects that will assist in satisfying their needs to grow and develop
Normative Beliefs Organizational Characteristics

Achievement

Goal and achievement oriented

Self-actualizing
Humanisticencouraging Affiliative

Value self-development and creativity

Participative, employee centered, and supportive High priority on constructive interpersonal relationships, and focus on work group satisfaction

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Passive-Defensive Culture
interact with others in ways that do not threaten their job security
Normative Beliefs Organizational Characteristics

Table 3-1

Passive- Defensive Culture overriding belief that employees must

Approval
Conventional Dependent Avoidance

Avoid conflict, strive to be liked by others, and approval oriented Conservative, bureaucratic, and people follow the rules Nonparticipative, centralized decision making, and employees do what they are told Negative reward system and Defensive avoid accountability
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Aggressive-Defensive Culture
Aggressive-Defensive Culture encourage employees to

Table 3-1

approach tasks in forceful ways in order to protect their status and job security
Normative Beliefs

Organizational Characteristics

Oppositional

Confrontation and negativism rewarded

Power

Competitive Perfectionistic

Nonparticipative, take charge of Defensive subordinates, and responsive to superiors Winning is value and a winlose approach is used
Perfectionistic, persistent, and hard working
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Embedding Culture in Organizations

Formal statements or organizational philosophy Design of physical space Slogans, language, acronyms, sayings Deliberate role modeling, training Explicit rewards, status symbols Stories, legends, myths
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Embedding Culture in Organizations

Leader reactions to critical incidents Workflow and organizational structure Organizational activities, processes, or outcomes leaders attend to Organizational systems and procedures Organizational goals and criteria for managing human resources
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Figure 3-4

Organizational Socialization
Phases Perceptual and Social Processes
Anticipating realities about the organization and the new job Anticipating organizations needs for ones skills and abilities Anticipating organizations sensitivity to ones needs and values

1) Anticipatory socialization learning that occurs prior to joining the organization

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Figure 3-4

Organizational Socialization
Phases Perceptual and Social Processes
Managing lifestyle-versuswork conflicts Managing intergroup role conflicts Seeking role definition and clarity Becoming familiar with task and group dynamics

2) Encounter values, skills, and attitudes start to shift as new recruit discovers what the organization is truly like

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Figure 3-4

Organizational Socialization
Phases Perceptual and Social Processes
Competing role demands are resolved Critical tasks are mastered

3) Change and acquisition recruit masters skills and roles and adjusts to work groups values and norms

Group norms and values are internalized

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Figure 3-4

Organizational Socialization
Outsider Phases 1) Anticipatory socialization 2) Encounter 3) Change and acquisition

Behavioral Outcomes
Performs role assignments Remains with organization Spontaneously innovates and cooperates

Socialized Insider

Affective Outcomes
Generally satisfied Internally motivated to work High job involvement
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Socialization Tactics

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Contrasting Organization Cultures

Organization A Managers must fully document all decisions. Organization B Management encourages and rewards risk-taking and change.

Creative decisions, change, and risks Employees are encouraged to are not encouraged. run with ideas, and failures are treated as learning experiences. Extensive rules and regulations exist for all employees. Employees have few rules and Productivity is valued over employee regulations to follow. Productivity is balanced with treating Morale its people right. morale. Employees are encouraged to stay Team members are encouraged to intera within their own department. with people at all levels and functions. Many rewards are team based. Individual effort is encouraged.

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Cultures Functions

Social glue that helps hold an organization together Boundary-defining Conveys a sense of identity for organization member Facilitates commitment to something larger than one individual self-interest Enhances social system stability Serves as a sense-making and control mechanism

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Do Organizations Have Uniform Cultures?

Organizational culture represents a common perception held by the organization members. Core values or dominant primary values are accepted throughout the organization.
Dominant culture Subcultures

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Conditions for Culture Change

A dramatic crisis Turnover in leadership Young and small organizations Weak culture

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Lewins Three-Step Change Model

Unfreezing

Moving

Refreezing

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Change Is A Process Of Transition

Driving Forces Restraining Forces

PRESENT STATE

TRANSITION STATE

DESIRED STATE

Unfreezing Occurs

Refreezing Occurs

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Culture As A Liability
Barrier to Change Barrier to Diversity Barrier to Mergers and Acquisitions

Emerging Trends In Work Culture

Open office layouts Fostering Teams Flexi-time work systems Emphasis on quality Equitable treatment of employees Emphasis on Talent Retention Advent on computers as a way of life Performance Appraisal

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HCL

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A Glimpse At Work Place Of HCL

Participative Style adopted by management Innovative Team work Zero Defect Policy Relationship building Congenial Environment Challenging tasks Reward and Recognition

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Mr. HCL

Mrs. HCL
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Psychological Climate
Organizational Climates Are created by SHARED psychological climates It is the employees PERCEPTION of the work environment and not the environment that is important
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Definitions of Culture
The shared values, beliefs, and behavioral norms in an organization (Ouchi, 1981) The social process by which members share their values, beliefs, and norms
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Culture describes the social context of the work environment

Climate describes the psychological impact of the work environment
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The success of Human Services organizations generally depends on the relationships and interactions between service providers and service recipients. These relationships are central to the quality and outcome of services.

Why are climate and culture important?

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The Big Debate

CULTURE CLIMATE Shared value developd ovr time * Environmental Characteristics Less Easily change * More Easily Changed Perceptions of Underlyng Values * Perceptions of Observable practices More Dynamic * More Static Created * Experienced Sociology & Anthropology * Psychology

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How do we differentiate?
(According to Landy)
CLIMATE: Created at lower levels of the organization the context in which action occurs CULTURE: Created and Communicated from higher levels in the organization (e.g., Senior Executives) the meaning intended by and inferred from the actions

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How do we differentiate
CLIMATE
Refers to current situation in an organization Climate is often defined as the Recurring patterns of Behavior attitudes and feelings that characterize life in the organization. Climate often proves easier to assess and change

CULTURE
Refers to the Historical & Tradition of the organization. Organizational cultures are generally Deep & Stable

Culture of an Organization is not that easy to change

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Culture And Climate

We can compare Organizational culture and climate to personality and mood. The former is enduring; the latter is temporary. We acquire our basic personalities early in life, but our mood can shift several times in one day.

Although organizational culture endures like Personality, it is easier to change. Climate is variable like mood and is just as important as human feelings

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The Role of Norms & Values

The norms and values that drive service providers behavior and communicate what is valued in organizations and the shared perceptions that influence service provider attitudes create a social and psychological context that shapes tone, content, and objectives of the service, in the case of Service Organizations.
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How Does Climate Develop or Change?

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Individual Differences
Administrators use selective hiring and firing as means of either maintaining existing norms or changing them. Individual perception is consistent across work environments - Positive or negative views carry from one workplace to another.
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Importing Climate and Culture From the External Environment Organizations adopt ways from other organizations with which they compete or cooperate. Organizational mimicry- norms of one organization adopted in effort to emulate success.
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Impact of Organizational Design: Structure, Technology & Leadership

Structure, core technology, and leadership describer the patterns of interaction between practitioners, interaction of practitioners and clients and administrations style of governance.

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Structure Impacts:
Flexibility, approval seeking, risk taking and innovation Highly centralizes structure restricts participation in decision making Highly formalized division of labor with strict procedures place little value on flexibility and innovation

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Leadership Impacts
Manipulation of culture is an essential function of leadership Values in practice are often those of the leader Symbolic acts are important Leadership shapes perception of fairness and support

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Leadership Impacts (cont.)

Good leadership has been identified as one of the few factors that contributes to both employee job satisfaction and commitment, each which is highly correlated with positive organizational climate

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How Are Climate & Culture Maintained in an Organization?

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The Need for Certainty

Organizations abhor uncertainty Certainty is engendered by sharing common ideas about the way things get done Culture contributes to certainty in through shared norms and values
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The Need for Power

Power is distributed both formally and informally through processes of conflict that lead to a negotiated order. Many have an investment in maintaining existing norms to maintain power base. Mergers, reorganizations and new administrations are are opportunities for culture change.

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Transferring Climate and Culture to New Employees

New employees are socialized into the culture and climate of their work group or they resign. Employee selection is important in maintaining existing cultures and climates. More experienced, competent hires may import new norms, values and perceptions.

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Conclusion
Organizational climate and culture are important to any Organizationl because they provide the critical links between Organizational characteristics and Organizational outcomes.

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