ORGANISATIONAL

CULTURE

PROF. A. ARUN PERUMAL

ORGANIZATIONAL CULTURE
Culture:

It refers to the system of shared values

and norms in the organization. It is a
description of how people are expected
to behave and what kind of behavioral
patterns and value systems are

Cultivated
Encouraged
Tolerated
Desirable
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PROF. A. ARUN PERUMAL

ORGANIZATIONAL CULTURE
Increasing
Diversity
More older workers
More immigrants
More varied ethnic and
racial groups
More persons with
disabilities
More women
Cultural difference
among nations.
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Functions of Organizational
Culture
Culture provides a sense of identity to
members and increases their commitment
to the organization
Culture is a sense-making device
for organization members
Culture reinforces the values
of the organization
Culture serves as a control
mechanism for shaping
behavior
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Elements of culture
Risk tolerance or attitude towards
uncertainty and risk
Precision orientation
Outcome orientation
Human concern
Aggressiveness
Team orientation
Power differences
Change orientation
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Edgar Scheins cultural web

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Understanding
Organizational Culture
Antecedents
Founders values
Industry &
business
environment
National culture
Senior leaders
vision and
behavior

Organizational
Culture
Observable
artifacts
Espoused values

Organizationa
l Structure &
Practices

Group &
Social
Processes
Socialization

Reward
systems

Mentoring
Decision
making
Group
dynamics
Communication
Influence &
empowerment
Leadership

Organizational
design

Basic
assumptions

Organizationa
l Outcomes
Effectiveness
Innovation &
stress

Collective
Attitudes &
Behavior
Work attitudes
Job satisfaction
Motivation

PROF. A. ARUN PERUMAL

The Culture Iceberg: 90%

hidden
Shorter,
easier to
change

Observable
symbols,
ceremonies,
slogans, stories,
dress, physical
settings,
decoration, etc.

Level of
conscious
awareness

Values, beliefs,
norms, customs,
nonverbal
behavior, etc.

Long term,
difficult to
change
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Edgar Scheins levels of culture

Level 1: visible culture
Level 2: professed culture
Microsofts Mission: To enable people and
businesses throughout the world to realize
their full potentials.
Tata: trustworthy culture
Reliance: Aggressive entrepreneurship
Infosys: democratic growth for all

Level 3: Tacit Level

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Cameron & Quinn Model of Culture

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Now the hard stuff

(culture change)
Requires a damn good
reason! to change
Gap analysis is an
important (if not essential)
motivator
Culture almost always wins
over strategy
Remove barriers, dont
push the river
There are usually revenge
effects (unexpected
consequences)
It takes time (4-7 years)
PROF. A. ARUN PERUMAL

Interventions for Changing

Organizational Culture

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PROF. A. ARUN PERUMAL

Organizational Socialization
Phase 1: Anticipatory
Phase 2: Encounter
Phase 3: Change and acquisition

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Organizational Socialization Process

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Organizational Socialization
Perceptual and
Social Processes

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

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

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Organizational Socialization
Perceptual and
Social Processes

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

Managing lifestyleversus-work conflicts

Managing intergroup role

conflicts

Seeking role definition

and clarity

Becoming familiar with

task and group dynamics

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Organizational Socialization
Perceptual and
Social Processes

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

Competing role demands

are resolved

Critical tasks are

mastered

Group norms and values

are internalized

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Outcomes of
Socialization
Newcomers who are successfully
socialized should exhibit:
Good performance
High job satisfaction
Intention to stay with organization
Low levels of distress symptoms
High level of organizational
commitment
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PERUMAL

Levels of Change

Societal Culture
Who we are, customs
Organizational
Culture
The way we do things
here
Team Norms
Whats (un)acceptable;
This is what we do
Individual Personality
Values, beliefs, PROF. A. ARUN PERUMAL

Assessment of Corporate Culture (Schein):

An anthropological approach
Norms
Expected Behavior
Standards
Chain of command
Wardrobe
Languages
Jargon
terminology

Heroes & Heroines

Personify values
create role models
intuitive & visionary
ethic of creation not
competition
success attainable
symbolize company
standard of performance
motivate employees

Folkways
Customs
Unconscious acts
Shaking hands
Arriving early

Culture

Myths
Frequently told
stories
Based on true or
imaginary events
shared & told to
newcomers
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Mores
Subclass of folkways
important to survival
right-wrong behavior
cheating on expenses
Ceremonies & Rites
Elaborate, planned events
to
celebrate values
often dramatic in nature
reinforce specific values
create bond of common
understanding
anoint cultural heroes &
heroines
Symbols
Events & things with special
& deeply held meanings
large office with window
seating close to CEO

PROF. A. ARUN PERUMAL

Implications for Managers

For managerial effectiveness, it is helpful to
analyze organizational cultures in order to
coordinate activities or change them;
Understand what levels of culture can be
influenced and how;
Know how national culture and organizational
culture can interact to influence management
philosophy and employee behaviors.
Person-culture fit for individual career success

PROF. A. ARUN PERUMAL

Organizational Culture Research

Suggests:
1) Organizational culture correlated with
employee attitudes and behavior
2) Congruence between an individuals values
and the organizations values associated
with organizational commitment, job
satisfaction, intentions to quit, and
turnover
3) Organizational culture did not predict a
companys financial performance
4) Mergers frequently failed due to
incompatible cultures

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Sample Culture Change Retreat

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