Presented By :• Sumedha (14087)• Tanvir (14090)• Suneet (14089)

ORGANISATION CULTURE

What is Organizational Culture?

A system of meaning shared by the organization’s members

Cultural values are collective beliefs, assumptions, and feelings about what things are good, normal, rational, valuable, etc.

Organisation Culture Defined

“The basic pattern of shared values and assumptions governing the way employees within an organization think about and act on problems and opportunities”

ELEMENTS OF ORGANIZATIONAL CULTURE

Visible

• Unconscious, taken-for-granted perceptions or beliefs

• Mental models of ideals

Shared Assumptions

• Conscious beliefs• Evaluate what is good or bad, right

or wrong

Shared Values

ArtifactsArtifacts

• Stories/legends• Rituals/ceremonies• Organizational language• Physical structures/décor

• Stories/legends• Rituals/ceremonies• Organizational language• Physical structures/décor

Invisible(below the surface)

Nature Of Organisation Culture• Observed behavioral regularities, as typified by common

language, terminology, and rituals.

• Norms, as reflected by things such the amount of work to be done and the degree of cooperation between management and employees.

• Dominant values that the organization advocates and expects participants to share, such as high product and service quality, low absenteeism, and high efficiency.

• A philosophy that is set forth in the MNC's beliefs regarding how employees and customers should be treated.

CONTINUED…..• Rules that dictate the do's and don'ts of employee behavior

relating to areas such as productivity, customer relations and intergroup cooperation.

• Organizational climate, or the overall atmosphere of the enterprise as reflected by the way that participants interact with each other, conduct themselves with customers, and feel about the way they are treated by higher-level management.

Functions of Organisation 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 in the organization

• Culture serves as a control mechanism for shaping behaviour

ICICI Bank• India’s second largest bank exudes a performance-

oriented culture. Its organizational practices place a premium on training, career development, goal setting, and pay-for-performance, all with the intent of maximizing employee performance and customer service.

• “We believe in defining clear performance for employees and empowering them to achieve their goals “ says ICICI Bank executive director Kalpana Moraria. “This has helped to create a culture of high performance across the organization

SAS Institute

SAS Institute has one of the most employee friendly culture on the planet. Located on a 200-acre campus, the world’s largest privately held software company supports employee well being with free on-site medical care, unlimited sick days, subsidized day care, ski trips, personal trainers, inexpensive gourmet cafeterias, and tai chi classes. Unlike other software companies, SAS encourages its employees to stick to a 35-hour workweek.

Creating And SustainingCorporate Culture

CREATING CORPORATE CULTURE

• The ultimate source of an organisational culture is its founders

• Culture creation occurs in three ways: Employee hired and kept with same thinking

Indoctrinate and socialize the employee with the organization's thinking

The founders behavior acts as role model for the employees

With the organizations' success the founder’s personality is embedded in the organisational culture.

ATTRACTION-SELECTION-ATTRITION THEORY

Organizations attract, select, and retain people with values and personality characteristics consistent with the organization’s character, resulting in a more homogeneous organization and a stronger culture

• Attraction -- applicants self-select and weed out companies based on compatible values

• Selection -- Applicants selected based on values congruent with organization’s culture

• Attrition -- Employee quite or are forced out when their values oppose company values

Maintaining Organisation CultureThree forces play a particular important part in sustaining a culture :

• Selection Practices

• Action of top management

• Socialization Methods

SELECTION• Explicit goals - Identifying and hiring individuals having

knowledge, skills and abilities to perform the jobs successfully.

• Individuals having values consistent with those of the organization are selected as per the decision makers guidelines.

TOP MANAGEMENT The action of top management establishes

the norms so as to:• Whether risk taking is desirable

• How much freedom should be given to their subordinates

• What actions will pay off in terms of pay rise, promotions and other rewards, etc

SOCIALISING

• New employees are not familiar with the organisational culture and are potentially likely to disturb the existing culture

• The process through which the employees are proselytized about the customs and traditions of the organization is known as socialization

• It is the process of adaption by which new employees are to understand the basic values and the norms for becoming “accepted” member of the organization

Socialising Process• Pre arrival:

– Newcomers form expectations regarding particular occupations and what it would be like to be a member of a particular organization

• Encounter

– Newcomer confronts the reality of his or her organizational role

– Not yet an “insider” (uncertainty vs. information seeking)

– Not socialized by the organization

– Not individualized role requirements - affect organizational situation

• Metamorphosis

– When new employees begin to change some of his behaviors and expectations in order to meet the standards of the new environment

– Create an individual identity

– A time of ethical dilemmas

Socializing Process

o Pre arrival Newcomers form expectations regarding particular occupations and what it would be

like to be a member of a particular organization

o Encounter Newcomer confronts the reality of his or her organizational role

Not yet an “insider” (uncertainty vs. information seeking)

Not socialized by the organization

Not individualized role requirements - affect organizational situation

o Metamorphosis When new employees begin to change some of his behaviors and expectations in order

to meet the standards of the new environment

Create an individual identity

A time of ethical dilemmas

Whole Foods Spreads its Culture

When expanding operations, Whole Foods Market maintains its culture through a ‘yoghurt culture’ strategy. This is a socialization process in which current employees who carry the grocer’s unique culture are transferred to new stores so recently-hired employees learn and embrace that culture more quickly.

Diversity is the sum total of the differences which make individuals who they are, and their collective ability to contribute to the goals of an organization.

Managing Diversity is a conscious choice and commitment by an organization to VALUE these differences by using diversity as a source of strength to achieve organizational goals.

Diversity

Elements of Diversity

• Education• Geographic

Location• Religious Beliefs• Military Experience• Class/Income• Ethnicity

• Age• Race• Gender• Sexual Orientation• Physical Abilities• Parental Status

Can enhance creativity, lead to better decisions, and result in more effective and productive performance.

Can prevent groupthink. Social conformity and pressures on

individual members of a group to conform and reach consensus.

Can be very effective team under right conditions

Tasks requiring innovativeness. Activities must be determined by the

stage of team development.

Advantages of Diversity

The extent to which managers and employees recognize cultural diversity and its potential advantages and disadvantages defines an organization’s approach (strategy) to manage cultural diversity.Adler (1997) has identified the following strategies for managing cultural differences:

Ignore cultural differences Minimize cultural differences Manage cultural differences

Strategies forManaging Cultural

Diversity

By following this strategy, managers do not recognize cultural differences (diversity) or its impact on the organization. This strategy is very popular in parochial type of organizations. In such type of organizations, managers and employees believe that “our way is the only way” to manage and organize. Therefore, they do not see any impact of cultural diversity on managing an organization. They consider the diversity is irrelevant. The strategy of ignoring differences precludes effective management of cultural diversity and also precludes the possibility of minimizing negative impacts and increasing positive impacts of diversity.

Ignore Differences

This strategy of minimizing cultural differences is commonly adopted by ethnocentric organizations. Here managers do recognize cultural diversity but only as a source of problems. In an ethnocentric organization, managers believe that “our way is the best way” to organize and manage. They consider others’ ways of doing as inferior ways of managing. In this approach managers try to reduce the problems of differences by reducing diversity. They do not think about the advantages of diversity. Such type of organizations tries either to select a culturally homogenous workforce or to attempt to socialize all employees into the behaviour patterns of the dominant culture. Ethnocentric organizations, by minimizing differences, prevent the possibility of benefiting from the many cultures present.

Minimize Differences

The organizations which adopt the strategy of managing differences are synergistic organizations. These type of organizations recognize the impacts of cultural diversity that leads to both advantages and disadvantages. Managers using synergistic approach believe that “our way and their way of behaving and managing differ, but neither is superior to the other”. Creative combinations of our way and their way may be the best approach to organizing and managing. By adopting synergistic approach, managers and employees minimize potential problems by managing the impacts of cultural diversity, not by attempting to minimize the diversity itself. In the same manner, managers maximize the potential advantages by managing the impacts of diversity, rather than by ignoring them. Organizations which use the strategy of managing differences train their managers and employees to recognize cultural differences and to use cultural differences to create advantages for the organization.

Managing Differences

Developing cultural competence results in an ability to understand, communicate with, and effectively interact with people across cultures, and work with varying cultural calendars. While there are myriad cultural variations, here are some essential to the workplace:

Communication: Providing information accurately and promptly is critical to effective work and team performance. This is particularly important when a project is troubled and needs immediate corrective actions. However, people from different cultures vary in how, for example, they relate to bad news. People from some Asian cultures are reluctant to give supervisors bad news - while those from other cultures may exaggerate it.

Team-building: Some cultures - like the United States - are individualistic, and people want to go it alone. Other cultures value cooperation within or among other teams. Team-building issues can become more problematic as teams are comprised of people from a mix of these cultural types. Effective cross-cultural team-building is essential to benefiting from the potential advantages of cultural diversity in the workplace

Managing Cultural Differences

Time: Cultures differ in how they view time. For example, they differ in the balance between work and family life, and the workplace mix between work and social behaviour. Other differences include the perception of overtime, or even the exact meaning of a deadline. Different perceptions of time can cause a great misunderstanding and mishap in the workplace, especially with scheduling and deadlines. Perceptions of time underscore the importance of cultural diversity in the workplace, and how it can impact everyday work.

Calendars: The business world generally runs on the western secular year, beginning with January 1 and ending with December 31. However, many cultures use others calendars to determine holidays such as New Years or specific holy days. For example, Eastern Orthodox Christians celebrate Christmas on a different day from western Christians. For Muslims, Friday is a day for prayer. Jews observe holidays ranging from Rosh Hashanah to Yom Kippur. These variations affect the workplace as people require time off to observe their holidays. Cultural diversity calendars are helpful tools to ensure meetings are successful, and deadlines are met.

Continued...

o Ignoring diversity issues costs time, money, and efficiency.

o Some of the consequences can include unhealthy tensions; loss of productivity because of increased conflict; inability to attract and retain talented people of all kinds; complaints and legal actions; and inability to retain valuable employees, resulting in lost investments in recruitment and training.

o Diversity increases ambiguity, complexity and confusion.o Cultural diversity creates difficulties for an organization

when it wants to reach on a single agreement.

Consequences of Ignoring Diversity

Indian Cultureand

Characteristics

• Population of India: 1,173,108,018 (July 2010)• Religions: 80% Hindu, 13.5% Muslim, 2% Christian, 2% Sikh• World’s largest democracy• Languages: Hindi (national language – 41%); 14 official

languages; over 100 languages spoken• 28 states and 7 territories

Quick Facts

Definition: It refers to the intellectual development evolved out of the physical and mental training acquired in the course of the ages in a country.

Indian Culture

The Indian culture can be best expressed as :-

Humanity Tolerance Unity Secularism Close Knit Social System Cultural Heritage Diversity

The mildness of the Indians has continued till date, despite the aggressiveness of the Muslim conquerors and the reforming zeal of the British, the Portuguese and the Dutch. The Indians are noted for their humanness and calm nature without any harshness in their principles and ideals.

Humanity

Gandhiji’s satyagraha principle or Ahimsa - freedom without taking a drop of blood, worked wonders and gave credit to India in the international arena. Swami Vivekananda in his famous Chicago Speech on the 11th of September, 1893 spoke of this.

Tolerance

India is a conglomeration of men and women of various castes and creed. It is a fusion of old traditional values and the modern principles, thus satisfying all the generations in the present India. The Elite businessman and the common vendor on the road share the same news and worship the same deity .

Unity

India is a secular country as stated in its Constitution. There is freedom of worship throughout the length and breadth of India without any breeches or violations of any other’s religious beliefs. The Hindus, The Muslims, The Christians, and The Sikhs in times of calamity and during festivities come openly together to share their thoughts despite their religious affinities. The catholicity of the Indian culture can be best understood by the fact that hundreds of Hindus visit the Velankanni shrine or the Nagore Dargah in Tamilnadu.

Secularism

The Indian Social System is mostly based on the Joint family System, but for some of the recently cropped nuclear families. The families are closely knit with Grandfathers, fathers, sons and grandsons sharing the same spirit, tradition and property.

Closely knit Social System

The great Epic, The Mahabharata, The Ramayana and the sacred text, the Bhagavad-Gita teaches the Indians that survival can only be in terms of quality of life. It provides a framework of values to make the Indian culture well- groomed.

Cultural Heritage

Thank You…