UNITUNIT-3 Organizational Climate and Culture

3.1 3.2 3.3 3.4 Perceived Characteristics of Culture and Climate The Determinants of Organizational Culture Maintaining and Communicating Culture Managing Across Cultures

Culture is a social glue that helps hold the organization together

Organizational Climate
Every organization in this universe is unique like fingerprints. Each one is different from others, in its culture, traditions, norms, standards, methods of action and they all constitute climate for its people. Everyone at the time of entering the organization, make a psychological contract with his organization and expect a supportive climate to help him meet his economic, social and psychological needs. . An organization tends to attract people who are fit for its climate just like a good geographical climate attracts people towards it. Each organization is different. Some are bustling and efficient while others are easy-going. Some are human while some others are hard and cold. If, suppose, management of an organization stresses seniority, centralized control and cautious decisions, the young new entrants in that organization will not fare well with the company. They will, very soon, move to some other organization where merit is counted for promotions and where they have bright opportunities to advance. It means, the organizational climate does not suit them, they will prefer to leave the organization. A sound climate is an asset for the organization and good management must protect it for betterment of the organization. Climatic aspect is a long run proposition and change in it is very slow. It takes a long period to create a sound climate and people recognize the organization with its climatic past. It can improve the climate by making sincere efforts. Non-intelligent discipline and pressuring people may yield better productivity for a short while but at the cost of its climatic asset, so the organization eventually will suffer from its depleted asset.

Measuring Organizational Climate

1. 2. 3. 4. 5. 6. 7. 8. 9. 1. 2. 3. 4. 5. 6. 7. Litwin and Stringer have developed a nine point questionnaire covering Structure Responsibility Reward Risk Warmth Support Standards Conflict and Identity. By the use of this questionnaire, they concluded that different management approaches do create different organisational climate that does affect the motivation, performance and job satisfaction to a great extent. Likert an another authority, developed an instrument known as Likert' scale that focuses mainly on behavioural conditions and the management styles used. Likert Scale covered seven characteristics as: leadership processes used, motivational forces, communication, interaction-influence process, decision making, goal setting, and control. .

Importance of Organizational Climate

Affects Motivation, Productivity and Job Satisfaction Contingency Relations Represents entire Social Systems Governs the Group Behaviour OD and Effectiveness Attracting and Retaining Good People

Models of OB
Autocratic
Basis of Model Managerial Orientation Employee Orientation Employee Psychological Result Employee Need Met Performance Result Power Authority Obedience Dependence on Boss Subsistence Minimum

Custodial
Economic Resources Money Security and benefits Dependence on Organization Security Passive Cooperation

Supportive
Leadership Support Job Performance Participation

Collegial
Partnership Teamwork Responsible Behaviour Selfdependence Self Actualization Moderate Enthusiasm

Status and Recognition Awakened Drives

Organizational Culture
Social (national) culture creates the wide-ranging context in which organizations operate. It provides the complex social system of laws, values, and customs in which organizational behaviour occurs. Part of that environment is the social culture in which the individual lives and works, which provides broad clues as to how a person with a given background and behave. Inside the organization lies another powerful force for determining individual and group behaviour. Organizational culture is the set of assumptions, beliefs, values, and norms that is shared among its members. This culture may be consciously a key element of the work environment in which employees perform their jobs. A culture may exist across an entire organization, or it may refer to the environment within a singly division, branch, plant, or department. Because it is a dynamic systems concept, culture is also affected by almost everything that occurs within an organization.

Definitions
Edgar Schein, defines it as . . . a pattern of basic assumptionsinvented, 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 valuable and, therefore, to be taught to new members as the correct way to perceive, think, and feel in relation to those problems. Joanne Martin, defines it .As individuals come into contact with organizations, they come into contact with dress norms, stories people tell about what goes on, the organization's formal rules and procedures, its formal codes of behavior, rituals, tasks, pay systems, jargon, and jokes only understood by insiders, and so on. These elements are some of the manifestations of organizational culture. Joanne Martin, defines it in one another way as. When cultural members interpret the meanings of these manifestations, their perceptions, memories, beliefs, experiences, and values will vary, so interpretations will differ-even of the same phenomenon. The patterns or configurations of these interpretations, and the ways they are enacted, constitute cultures

Essence of Organizational Culture

Innovation and Risk taking Attention to detail Outcome Orientation People Orientation Team Orientation Aggressiveness Stability

Importance of Organizational Culture

Organizational cultures are important to firms success for several reasons. They give an organizational identity to employeesa defining vision of what the organization represents. They are also an important source of stability and continuity to the organization, which provides a sense of security to its members. At the same time, knowledge of ones organizational culture helps newer employees interpret what goes on inside of it, by providing an important context for events that would otherwise seem confusing. More than anything else, perhaps, cultures help stimulate employee enthusiasm for their tasks. Cultures attract attention, convey a vision, and typically honour high producing and creative individuals. By recognizing and rewarding these persons, organizational cultures are identifying them as role models to emulate.

Perceived Characteristics of Cultures

Organizations, like most fingerprints and snowflakes, are unique. Each has its own history, patterns of communication systems and procedures, mission statements and visions, stories and myths which, in their totality, constitute its distinctive culture. Cultures are also relatively stable in nature, usually changing only slowly over time. Exceptions to his may occur when a major crisis threatens a firm or when two organizations merge with each other (requiring a careful blending of the two so as to avoid culture clash). A final defining characteristic of most cultures is that they are seen as symbolic representations of underlying beliefs and values. Seldom do we read a description of a firms culture. More frequently, employees make inferences about it from hearing stories about the way things are done, from reading slogans that portray corporate ideals, or from watching ceremonies in which certain types of employees are honored.

The Determinants of Organizational Culture

1. Observed behavioral regularities. When organizational participants interact with one another, they use common language, terminology, and rituals related to deference and demeanor. 2. Norms. Standards of behavior exist, including guidelines on how much work to do which in many organizations come down to "Do not do too much; do not do too little." 3. Dominant values. There are major values that the organization advocates and expects the participants to share, Typical examples are high product quality, low absenteeism, and high efficiency. 4. Philosophy. There are policies that set forth the organization's beliefs about how employees and/or customers are to be treated. 5. Rules. There are strict guidelines related to getting along in the organization. Newcomers must learn those "ropes" in order to be accepted as full-fledged members of the group. 6. Organizational climate. This is an overall "feeling" that is conveyed by the physical layout, the way participants interact, and the way members of the organization conduct themselves with customers or other outsiders.

Types of Culture
Core Values- The primary or dominant values that are accepted throughout the organization. Dominant Culture-Expresses the core values that are shared by majority of the organizations members. Subculture- Mini-cultures within an organization typically defined by departments designations and geographical separation. Strong Cultures- Cultures in which the core values are intensely held and widely shared

How Organizational Culture Starts?

While organizational cultures can develop in a number of different ways, the process usually involves some version of the following steps: 1. A single person (founder) has an idea for a new enterprise. 2. The founder brings in one or more other key people and creates a core group that shares a common vision with the founder. That is, all in this core group believe that the idea is a good one, is workable, is worth running some risks for, and is worth the investment of time, money, and energy that will be required. 3. The founding core group begins to act in concert to create an organization by raising funds, obtaining patents, incorporating, locating space, building, and so on. 4. At this point, others are brought into the organization, and a common history begins to be built.

Maintaining Culture
Three important forces which play important role in sustaining and maintaining culture: Selection Top Management Socialization-Socialization is the process that adapts employees to the organizations culture. It can be conceptualized as a process made up of three stages 1. Pre-arrival stageThe period of learning in the socialization process that occurs before a new employee joins the organization. 2. Encounter stageThe stage in the socialization process in which a new employee sees what the organization is really like and confronts the possibility that expectations and reality may diverge. 3. Metamorphosis stageThe stage in the socialization process in which a new employee changes and adjusts to the job, work group, and organization.

Communicating Culture
1. StoriesStories circulate through many organizations. They typically contain a narrative of events about the organizations founders, rule breaking, rags-to-riches success, reductions in the workforce, relocation of employees, reactions to part mistakes, and organizational coping. 2. RitualsRepetitive sequences of activities that express and reinforce the key values of the organization, which goals are most important, which people are important and which are expendable. 3. Material symbolsThe layout of corporate headquarters, the types of automobiles top executives are given, and the presence or absence of corporate aircraft are a few examples of material symbols. Others include the size of offices; the elegance of furnishings, executive perks and dress attire. 4. LanguageMany organizations and units within organizations use language as a way to identify members of a culture or subculture. By learning this language, members attest to their acceptance of the culture and, in so doing, help to preserve it.

Managing Across Cultures

Organizational culture is an intervening variable. Employees form an overall subjective perception of the organization based on such factors as degree of risk tolerance, team emphasis, and support of people. This overall perception becomes, in effect, the organizations culture or personality. These favourable or unfavourable perceptions then affect employee performance and satisfaction, with the impact being greater for stronger cultures. Just as peoples personalities tend to be stable over time, so too do strong cultures. This makes strong cultures difficult for managers to change. When a culture becomes mismatched to its environment, management will want to change it. But, changing an organizations culture is a long and difficult process. The result, at least in the short term, is that managers should treat their organizations culture as relatively fixed.

One of the more important managerial implications of organizational culture relates to selection decisions. Hiring individuals whose values dont align with those of the organization is likely to lead to employees who lack motivation and commitment and who are dissatisfied with their jobs and the organization. Not surprisingly, employee misfits have considerably higher turnover rates than individuals who perceive a good fit. We should also not overlook the influence socialization has on employee performance. An employees depends to a considerable degree on knowing what he should or should not do. Understanding the right way to do a job indicates proper socialization. Furthermore, the appraisal of an individuals performance includes how well the person fits into the organization. Can he or she get along with co-workers? Does he or she have acceptable work habits and demonstrate the right attitude? These qualities differ between jobs and organizations. For instance, on some jobs, employees will be evaluated more favourably if they are aggressive and outwardly indicate that they are ambitious. On another job, or on the same job in another organization, such an approach may be evaluated negatively. As a result, proper socialization becomes a significant factor in influencing both actual job performance and how its perceived by others.

Matching People with Culture

Organizational Socialization -Viewed from the organizations perspective, organizational socialization is like placing an organizations fingerprints on people or stamping its own genetic code on them. From the employees viewpoint, it is the essential process of learning the ropes to survive and prosper when the firm. The important point is that socialization can be functional for both workers and their employees. Individualization -Employees can also have an active impact on the nature of the organizations culture and operations. Individualization occurs when employees successfully exert influence on the social system around them at work by challenging the culture of deviating from it.

Interaction Between Socialization and Individualization Conformity (High socialization and Low Individualization) Creative Individualism (High socialization and High Individualization) Isolation (Low socialization and Low Individualization) Rebellion (Low socialization and High Individualization)