{"id":320,"date":"2018-10-26T12:14:35","date_gmt":"2018-10-26T12:14:35","guid":{"rendered":"http:\/\/mgmtp13.epgpbooks.inflibnet.ac.in\/?post_type=chapter&#038;p=320"},"modified":"2018-10-26T12:23:20","modified_gmt":"2018-10-26T12:23:20","slug":"organizational-culture","status":"publish","type":"chapter","link":"https:\/\/ebooks.inflibnet.ac.in\/mgmtp13\/chapter\/organizational-culture\/","title":{"rendered":"Organizational Culture"},"content":{"raw":"<div>\r\n\r\n&nbsp;\r\n\r\n1.\u00a0\u00a0\u00a0\u00a0\u00a0 Learning Outcome\r\n\r\n&nbsp;\r\n\r\n2.\u00a0\u00a0\u00a0\u00a0\u00a0 Introduction\r\n\r\n&nbsp;\r\n\r\n3.\u00a0\u00a0\u00a0\u00a0\u00a0 Characteristics of organizational culture\r\n\r\n&nbsp;\r\n\r\n4.\u00a0\u00a0\u00a0\u00a0\u00a0 Levels of culture\r\n\r\n&nbsp;\r\n\r\n5.\u00a0\u00a0\u00a0\u00a0\u00a0 Uniformity in culture\r\n\r\n&nbsp;\r\n\r\n6.\u00a0\u00a0\u00a0\u00a0\u00a0 Functions of culture\r\n\r\n&nbsp;\r\n\r\n7.\u00a0\u00a0\u00a0\u00a0\u00a0 Origin of culture\r\n\r\n&nbsp;\r\n\r\n8.\u00a0\u00a0\u00a0\u00a0\u00a0 Sustaining the culture\r\n\r\n&nbsp;\r\n\r\n9.\u00a0\u00a0\u00a0\u00a0\u00a0 Summary\r\n\r\n&nbsp;\r\n\r\n&nbsp;\r\n\r\n<strong>2. Introduction<\/strong>\r\n\r\n&nbsp;\r\n<p style=\"text-align: justify\">Culture is invisible power of any organization. When thinking and actions of employees are institutionalized, an organizational culture is deemed to have taken birth. Culture guides the employees. Organizational culture is not inborn. It has to be invented and later developed over a period of time. Environment and demographic factors play a decisive role in developing the culture. Culture of an organization is informal in nature and relates to shared way of living. It is a common binding factor in the organization. Value system is the corner stone of the organization culture. Let us have a look on some definitions of culture:<\/p>\r\n&nbsp;\r\n<p style=\"text-align: justify\"><em>Culture is a pattern of basic assumptions invented, discovered or developed by given group as it learns to cope with its problems of external adoption and internal integration worked well\u00a0<\/em><em style=\"text-align: initial;font-size: 1em\">enough to be considered valuable and therefore, to be taught to new members as a correct way to perceive, think and feel, in relation to those problems.<\/em><\/p>\r\n\r\n<\/div>\r\n<div>\r\n\r\n&nbsp;\r\n\r\nEdgar Schein\r\n\r\n&nbsp;\r\n\r\n<em>Culture is the shared attitude and perceptions in an organization that are based on a set of<\/em>\r\n\r\n&nbsp;\r\n\r\n<em>fundamental norms and values and help members understand the organization.\u201d<\/em>\r\n\r\n&nbsp;\r\n\r\nWagner III and Hollenbeck\r\n\r\n&nbsp;\r\n\r\n<em>Corporate culture consists of norms, values and unwritten rules of conduct of an organization as<\/em>\r\n\r\n&nbsp;\r\n\r\n<em>well as management styles, priorities, belief and interpersonal behaviors that prevail. Together<\/em>\r\n\r\n&nbsp;\r\n\r\n<em>they create climate that influences how well people communicate, plan and make decisions.<\/em>\r\n\r\n&nbsp;\r\n\r\nSinn\r\n\r\n&nbsp;\r\n\r\nIt is clear from above definitions that (i) culture is about combination of the factors that are learnt\r\n\r\n&nbsp;\r\n\r\nthrough interaction with environment and (ii) organization culture stress on the sharing of norms\r\n\r\n&nbsp;\r\n\r\nand values that guide the employees\u201f behavior. Culture guides the employees\u201f behavior within\r\n\r\n&nbsp;\r\n\r\nthe organization and defines a code of conduct outside the organization.\r\n\r\n&nbsp;\r\n\r\n&nbsp;\r\n\r\n<strong>3.\u00a0\u00a0\u00a0 <\/strong><strong>Characteristics of organizational culture: <\/strong>Organizational Culture is identified through following characteristics:\r\n\r\n<strong>\u00a0<\/strong>\r\n<p style=\"text-align: justify\">1.\u00a0 \u00a0Individual autonomy: It is the degree of responsibility and freedom to take initiative for decision making by employees;<\/p>\r\n&nbsp;\r\n<p style=\"text-align: justify\">2. Structure: It refers to the degree to which the organization creates clears objectives and performance expectations and<\/p>\r\n<p style=\"text-align: justify\">includes degree of direct supervision used to control the employees\u201f behaviour.<\/p>\r\n&nbsp;\r\n<p style=\"text-align: justify\">3.\u00a0 Support of management: this is the degree to which the management provides clear communication, assistance, warmth<\/p>\r\n<p style=\"text-align: justify\">and support to subordinates;<\/p>\r\n&nbsp;\r\n\r\n4.\u00a0\u00a0\u00a0\u00a0\u00a0 Identity: this is the extent to which the employees identify with the organization as a whole, rather than with their\r\n\r\nparticular work group.\r\n\r\n&nbsp;\r\n<p style=\"text-align: justify\">5.\u00a0 Performance reward system: the degree to which the reward system in the organization like salary hike, promotions,<\/p>\r\n<p style=\"text-align: justify\">recognition etc is based on employee performance than on unfair practices like seniority, favouritism etc;<\/p>\r\n\r\n<\/div>\r\n<div>\r\n\r\n&nbsp;\r\n\r\n6.\u00a0 \u00a0Tolerance to conflict: this refers to the degree of conflict present in relationships between colleagues and work groups.\r\n<p style=\"text-align: justify\">It also refers to the extent to which the employees are encouraged to air conflicts and criticisms openly;<\/p>\r\n&nbsp;\r\n\r\n7.\u00a0 Risk tolerance: It refers the degree to which employees are encouraged to be innovative, aggressive and risk taking.\r\n\r\n&nbsp;\r\n<p style=\"text-align: justify\">8.\u00a0 Communication patterns: the degree to which the organization communication is restricted to formal hierarchy of authority;<\/p>\r\n&nbsp;\r\n\r\n9. Orientation towards outcomes: it refers to the extent to which the management focuses on final outcomes rather than\r\n<p style=\"text-align: justify\">techniques and processes used to arrive at these outcomes.<\/p>\r\n&nbsp;\r\n<p style=\"text-align: justify\">10.\u00a0 People orientation: this is the degree to which the management decisions take into consideration the impact of outcomes<\/p>\r\n<p style=\"text-align: justify\">on people within the organization.<\/p>\r\n&nbsp;\r\n\r\n&nbsp;\r\n\r\n<strong>4.\u00a0\u00a0 <\/strong><strong>Levels of culture\/ Learning of culture<\/strong>: Schein proposes three levels of culture at which it is learnt:\r\n\r\n&nbsp;\r\n<p style=\"text-align: justify\"><strong>1.\u00a0\u00a0 <\/strong><strong>Observable artifacts of culture<\/strong>: These are the symbols of culture in the physical and social work environment. These are visible and most accessible. These include founders of organization, their leadership styles and ethical behaviors. Employees are expected to follow and copy their work ethics.<\/p>\r\n&nbsp;\r\n<p style=\"text-align: justify\"><strong>Rites and rituals <\/strong>are recurring activities that are used at special times to influence the behavior and understanding of organizational members. For example taking out Colours during oath ceremony is in the defense services. Colours remind soldiers of the excellent work done and sacrifices made by their predecessors, presentations of certificates\/degrees during convocation ceremony in the university. Rituals are systems of rites like departmental song, colors, and company picnic or retirement dinners. <strong>Cultural symbols<\/strong> are an object, act, or event that serves to transmit cultural meaning\u201d. Corporate uniform, tie, buttons etc are the examples. <strong>Saga<\/strong> is a heroic account of accomplishments Sagas are important because they are used to tell new members the real mission of the organization, how the organization operates, and how individual can fit into the organizational settings.<\/p>\r\n&nbsp;\r\n<p style=\"text-align: justify\"><strong>2.\u00a0\u00a0 <\/strong><strong>Shared values<\/strong>: The values can be terminal values that reflects end state of existence; and instrumental values, the means to achieve terminal values. Being hard working (instrumental value) may lead to achieve solace (terminal value). Shared value resides at the very heart of the\u00a0<span style=\"font-size: 1em;text-align: initial\">organizational culture. It helps turn routine activities into valuable, important actions, tie the corporation to important value of society that may provide a very distinctive source of competitive advantage. Values should be linked with work. A person should feel that he is producing an umbrella that keeps health of the society. He is not merely working for material gain but for good of society. An organizations should therefore develop a \u201cdominant and coherent\u00a0<\/span><span style=\"text-align: initial;font-size: 1em\">set of shared values\u201d so that individual behaves in a graduated manner in line with the organizational philosophy.<\/span><\/p>\r\n\r\n<\/div>\r\n<div>\r\n\r\n&nbsp;\r\n<p style=\"text-align: justify\"><strong>3.\u00a0<\/strong><strong>Common Assumptions: <\/strong>Common assumptions are fallout of shared value system and observable artifacts of culture. Employees, over a period of time form within themselves a common culture. In Bajaj Automobiles, everybody comes in time to the plant. Punctuality is therefore a common assumption that is embedded in their organizational culture. Indians believe in truth and non-violence. Therefore it is a common assumption of our national culture.<\/p>\r\n&nbsp;\r\n\r\n&nbsp;\r\n<p style=\"text-align: justify\"><strong>5. Uniformity of Culture:\u00a0<\/strong>It is commonly presumed that organization has a uniform culture throughout. It means that employees with different backgrounds interpret the culture in the similar way. But it is not always true. There have been different types of the cultures which have been identified so far:<\/p>\r\n&nbsp;\r\n<p style=\"text-align: justify\"><strong>(i) Dominant culture and Sub culture<\/strong>: A dominant culture is a set of core values shared by a majority of an organization\u201fs employees. Most prevalent and talked about organizational culture is the dominant culture. Dominant culture helps guide the day to day behavior of employees.<\/p>\r\n&nbsp;\r\n<p style=\"text-align: justify\">A sub culture is a set of values shared by a small minority of organizations\u201f members.sub culture arises as a result of experiences shared by members of a particular department or unit of the organization. In the sub culture, core values of dominant culture are retained but are modified to reflect the particular unit\u201fs situation. E.g. marketing department has its own sub culture and R &amp; D has its own sub culture due to additional values unique to these departments.<\/p>\r\n&nbsp;\r\n<p style=\"text-align: justify\">An organization must have a strong dominant culture. If sub cultures become stronger, these will come into conflict with the dominant culture. As a result, the dominant culture will become weak and concept of shared behavior will no longer be effective.<\/p>\r\n&nbsp;\r\n<p style=\"text-align: justify\"><strong>(b) Strong culture and weak culture<\/strong>: An organizational culture can be strong or weak. Strong culture has strong values and strong leadership; is always widely shared; and is intensely held by its members who show sense of deep commitment towards culture.<\/p>\r\n&nbsp;\r\n\r\n<span style=\"font-size: 1em;text-align: initial\">A weak culture is the reverse of the strong culture. A strong culture leads to reduced turnover and positive employee attitude. Major drawback of strong culture is that it leads to \u201egroup think\u201f, collective blind spots and resistance to change and innovation.<\/span>\r\n\r\n<\/div>\r\n<div>\r\n\r\n&nbsp;\r\n<p style=\"text-align: justify\"><strong>(c) Mechanistic and Organic Culture<\/strong>: In mechanistic type of culture, the values of bureaucracy and feudalism are maintained. Emphasis is given to specialization, flow of authority from top to lower levels and well defined communication channels. This culture can result into loyalty of employees, but inter departmental rivalry exist. This culture also resists change and innovation.<\/p>\r\n&nbsp;\r\n<p style=\"text-align: justify\">Organic culture is the contrast of mechanistic culture. Stress is on flexibility, consultation, change and innovation. There are no well defined communication channels, departmental boundaries, hierarchies of authority or formal rules and regulations. Whole staff acts as a team.<\/p>\r\n&nbsp;\r\n<p style=\"text-align: justify\"><strong>(d) Authoritarian and Participative Culture<\/strong>: Authoritarian culture is characterized by centralization of power, stress on discipline and punishment for disobedience. It is assumed that leader knows what is good for the organization. This type of culture discourages professionalism because professionals consider themselves as equals.<\/p>\r\n&nbsp;\r\n<p style=\"text-align: justify\">The participative culture is based on the assumption that if all people working in the organization participate in decision making, then they are more likely to be committed to the decision that has been taken rather than to those decisions which are imposed on them by autocratic leaders. Group problem solving always leads to better decisions because several minds working together are always better than single mind working alone.<\/p>\r\n&nbsp;\r\n<p style=\"text-align: justify\"><strong>(e) National Culture vs. Organizational culture<\/strong>: organizational culture is always influenced by the culture of the country, irrespective of the origin of the company. If there is a clash between organizational culture and national culture, the organizational culture generally prevails. E.g. multinational companies operating in India declare holidays according to Indian festivals.<\/p>\r\n&nbsp;\r\n\r\n&nbsp;\r\n\r\n<strong>6.\u00a0 <\/strong><strong>Functions <\/strong><strong>of organizational culture<\/strong>\r\n\r\n&nbsp;\r\n\r\nOrganizational culture serves the following functions:\r\n\r\n&nbsp;\r\n<p style=\"text-align: justify\">1.\u00a0 It gives members an organizational identity: Sharing norms, values and perceptions gives people a sense of togetherness<\/p>\r\n<p style=\"text-align: justify\">that helps promote a feeling of common purpose. This also enables the employees how to think and behave as expected of<\/p>\r\n<p style=\"text-align: justify\">them.<\/p>\r\n<p style=\"text-align: justify\"><span style=\"font-size: 1em;text-align: initial\">2.\u00a0 It facilitates collective commitment: The common purpose that grows out of shared culture tends to elicit strong <\/span><\/p>\r\n<p style=\"text-align: justify\"><span style=\"font-size: 1em;text-align: initial\">commitment from all employees who accept the culture as their own.<\/span><\/p>\r\n<p style=\"text-align: justify\"><span style=\"text-align: initial;font-size: 1em\">3.\u00a0 \u00a0It promotes systems stability: By encouraging a shared sense of identity and commitment, culture encourages <\/span><\/p>\r\n<p style=\"text-align: justify\"><span style=\"text-align: initial;font-size: 1em\">lasting\u00a0<\/span><span style=\"text-align: initial;font-size: 1em\">integration and cooperation among the members of an organization. It enhances social stability by holding the <\/span><\/p>\r\n<p style=\"text-align: justify\"><span style=\"text-align: initial;font-size: 1em\">organizational\u00a0<\/span><span style=\"text-align: initial;font-size: 1em\">members together by providing them appropriate standards.<\/span><\/p>\r\n<p style=\"text-align: justify\"><span style=\"text-align: initial;font-size: 1em\">4.\u00a0 \u00a0It shapes behaviour by helping members make sense of their surroundings: An organization culture serves as a source of <\/span><\/p>\r\n<p style=\"text-align: justify\"><span style=\"text-align: initial;font-size: 1em\">shared meaning that explains why things occur the way they do. Organizational culture is seen but felt. Culture reflects the <\/span><\/p>\r\n<p style=\"text-align: justify\"><span style=\"text-align: initial;font-size: 1em\">value shared by organizational members.<\/span><\/p>\r\n<p style=\"text-align: justify\"><span style=\"text-align: initial;font-size: 1em\">5.\u00a0\u00a0\u00a0\u00a0\u00a0 It provides a boundary: Culture creates distinction between one organization and the other. Such boundary defining <\/span><\/p>\r\n<p style=\"text-align: justify\"><span style=\"text-align: initial;font-size: 1em\">helps identify members and non-members of the organization.<\/span><\/p>\r\n<p style=\"text-align: justify\"><span style=\"text-align: initial;font-size: 1em\">6. Culture facilitates the generation of commitment to something larger them one\u201fs individual self-interest. It serves as <\/span><\/p>\r\n<p style=\"text-align: justify\"><span style=\"text-align: initial;font-size: 1em\">control mechanism that guides and shapes the attitude and behaviour of organizational members.<\/span><\/p>\r\n<p style=\"text-align: justify\"><span style=\"text-align: initial;font-size: 1em\">7.\u00a0 It helps organizational members stick to conformity and expected mode of behaviour. Culture ensures that everyone <\/span><\/p>\r\n<p style=\"text-align: justify\"><span style=\"text-align: initial;font-size: 1em\">thinks and behaves in a prescribed manner.<\/span><\/p>\r\n\r\n<\/div>\r\n<div>\r\n\r\n&nbsp;\r\n\r\n<strong>6.1 Dysfunctions of Culture<\/strong>\r\n\r\n&nbsp;\r\n\r\nThough organizational culture is very important and serves many functions, yet it can prove to be a liability for the organization.\r\n\r\n&nbsp;\r\n<p style=\"text-align: justify\"><strong>1.\u00a0\u00a0 <\/strong><strong>Barrier to change<\/strong>: when the business environment is stable, the consistency of employee behavior is an asset for the organization. But when the environment becomes dynamic, the consistent behavior becomes a problem as the employees try to resist the changes in the environment. Many companies, have a strong culture, that has worked very well for them in the past, had to face many difficulties when need to change with the environmental changes arose (e.g. General Motors, IBM). Thus strong culture can become an obstacle to change if these cultures fail to match with changing environmental needs.<\/p>\r\n<strong>\u00a0<\/strong>\r\n<p style=\"text-align: justify\"><strong>2.\u00a0\u00a0 <\/strong><strong>Barrier to Diversity<\/strong>: Strong cultures put a lot of pressure on employees to confirm to the accepted values and styles of the organization. The employees belonging to different country,\u00a0<span style=\"font-size: 1em;text-align: initial\">race or religion also have to conform to organizations\u201f culture and values; otherwise they are believed to be unfit for the company. Strong cultures do not accept the fact that people from different backgrounds bring unique strengths to the company. This proves to be a barrier in the diversity management.<\/span><\/p>\r\n\r\n<\/div>\r\n<div>\r\n\r\n&nbsp;\r\n<p style=\"text-align: justify\"><strong>3.\u00a0\u00a0 <\/strong><strong>Barrier to Mergers and Acquisitions<\/strong>: Earlier, during mergers and acquisitions, the financial matters and product synergy alone were considered the key factors in deciding which company should merge with which company or which company should acquire which company. In the recent years, trend has changed. Cultural compatibility has become a primary concern during mergers and acquisitions. Strong cultures of the two merging companies create problems of acceptability of the other culture. Same is true of acquisitions.<\/p>\r\n&nbsp;\r\n\r\n&nbsp;\r\n\r\n<strong>7. Origin of the organizational culture<\/strong>\r\n\r\n&nbsp;\r\n<p style=\"text-align: justify\">The vision of founders and various functions of the organization create culture. The ideology and customs are bedrock of any organizational culture. The mission and vision of founder members, hard work, competitive spirit and the way of life is important as it establishes cultural value of any organization. E.g. the vision of Ratan Tata has created a Tata culture. There are two steps in creation of culture.<\/p>\r\n&nbsp;\r\n\r\n1.\u00a0 A single person (founder) has an idea for a new enterprise.\r\n\r\n&nbsp;\r\n\r\n2.\u00a0 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 the core group believe that the idea is good one, is workable, and is worth running some risk for.\r\n\r\n&nbsp;\r\n\r\n3. The founder core group starts to create an organization by raising funds, obtaining patents, locating land, designing building etc.\r\n\r\n&nbsp;\r\n\r\n4.\u00a0 \u00a0At this point, others are brought into organization and a common history begins to be built.\r\n\r\n&nbsp;\r\n<p style=\"text-align: justify\">5.\u00a0 The founders have a major impact on the organization\u201fs early culture. They do not have any constrains of previous customs or ideologies. As new enterprises have small size, it becomes easy for the founders to exercise their will on organization members. The founders have their own prejudices regarding the fulfilment of original ideas. The organization culture results from interaction between<\/p>\r\n&nbsp;\r\n\r\n(a) Founder\u201fs biases and assumptions;\r\n\r\n&nbsp;\r\n\r\n<span style=\"font-size: 1em;text-align: initial\">(b) What the original members, who were employed by founders, learnt from them.<\/span>\r\n\r\n<\/div>\r\n<div>\r\n\r\n&nbsp;\r\n<p style=\"text-align: justify\">Best example of this is the Tata Empire. The late J.R.D. Tata was the founder. His supportive and constructive role; his beliefs in hard work and professionalism ; and his assumption that only honesty and fair dealing pays, has been followed by his successors and is imbibed deeply in the Tata culture. This has made Tata group, what it is today.<\/p>\r\n&nbsp;\r\n\r\n<strong>7.1 Sustaining the organizational culture<\/strong>\r\n\r\n&nbsp;\r\n\r\nFollowing practices help to sustain the organizational culture:\r\n\r\n&nbsp;\r\n<p style=\"text-align: justify\"><strong>Selection<\/strong>: Standardized procedure should be used to hire right people for right job. Experts should try to screen out those whose value system does not conflict with that of the organization. It is important that organizations lay down detailed process of selection criteria and selects a team who can employ right people for right jobs. The vision, mission, and policy of a sound organization must not be bypassed while selecting the people for work performance. People who do not have core values of an organization must not be appointed because one day they might destroy the very foundation of value system in an organization.<\/p>\r\n&nbsp;\r\n<p style=\"text-align: justify\"><strong>Top Management<\/strong>: The actions of top management have a major impact on the organization culture. . It is the duty of the management to lay down organizational mission, which is achievable. It is the duty of managers to ensure that all workers respect the organizational culture and run the organization as per its philosophy. It is therefore important that managers play a significant role in keeping values, behaviors and opinions of the organizational members under control and guide them appropriately. Leaders in the organization should pay continuous attention to maintaining the established standards and send clear signals to all the members as to what is expected of them.<\/p>\r\n&nbsp;\r\n<p style=\"text-align: justify\"><strong>Socialization<\/strong>: Employees should be properly inducted in the organization. Organization policy should lay down procedure for this. Individual employee should be briefed on the organization structure, his department and the immediate superior to whom he is to report. Induction also involves lying down career path for managerial cadre. Training and development programmes, promotional cadres should be planned on a regular basis so that an appropriate message is passed on to the employees. It is the duty of the senior managers to ensure that organizational culture is enriched. During induction the employees receive a positive signal of the level of organizational culture. In case employees fail to adapt to the organization\u201fs culture are called \u201enon conformist\u201f and are further put through an intensive training programme as under.<\/p>\r\n&nbsp;\r\n\r\n<strong style=\"text-align: initial;font-size: 1em\"><em>Pre-arrival Stage<\/em><\/strong><span style=\"text-align: initial;font-size: 1em\">: The values, attitudes, personality and learning aptitude are assessed to drive the individual towards organizational culture. It is diagnosis stage, which identifies, in an individual the possibilities of socialization (adaptation) of the organization\u201fs culture.<\/span>\r\n\r\n&nbsp;\r\n<p style=\"text-align: justify\"><strong style=\"text-align: initial;font-size: 1em\"><em>Encounter Stage<\/em><\/strong><span style=\"text-align: initial;font-size: 1em\">: It is an induction stage where a recruit joins an organization and is put through the job. He compares his expectations and image that he has formed with the organizational set up. If the expectations are far from reality, they are expected to learn and follow organizational value system. Those who modify and learn are taken into the mainstream of the organization. Those who resist have to quit the organization being misfit.<\/span><\/p>\r\n\r\n<\/div>\r\n<div>\r\n\r\n&nbsp;\r\n<p style=\"text-align: justify\"><strong><em>Metamorphosis Stage<\/em><\/strong>: It is a consolidation stage where individual learn the values, norms, culture of the organization. It is voluntary process where an individual is put under a facilitator for learning process. Individual masters skills required for job performance, he adopts new role and adjust himself to changed life style.<\/p>\r\nIn the defense services socialization has a great importance and is also known as \u201eregimentation\u201f. Each officer is required to follow daily routine that soldiers follow. The aim of the exercise is to make him aware of the criticality and knowing each function from grass route level. This also enables his troops to understand him and his commitment towards them in exercise of command. This type of induction has paid rich dividends.\r\n\r\n&nbsp;\r\n\r\n<strong>8. Changing organizational culture<\/strong>\r\n\r\n&nbsp;\r\n\r\nUnder some critical circumstances, the existing culture may become undesirable, giving rise to the need of a new culture. Some of such circumstances are as under:\r\n\r\n&nbsp;\r\n\r\n1.\u00a0\u00a0\u00a0\u00a0\u00a0 A major crisis like financial setback, cost cutting, loss of key customers or technological breakthrough;\r\n\r\n&nbsp;\r\n\r\n2.\u00a0\u00a0\u00a0\u00a0\u00a0 When a top executive leaves the organization and a new leadership takes over, era of a new culture sets in;\r\n\r\n&nbsp;\r\n\r\n3.\u00a0\u00a0\u00a0\u00a0\u00a0 In young and small organizations, the culture can be easily changed;\r\n\r\n&nbsp;\r\n\r\n4.\u00a0\u00a0\u00a0\u00a0\u00a0 Weak Culture: a weak culture is easy to change than a strong one.\r\n\r\n&nbsp;\r\n\r\n&nbsp;\r\n\r\n<strong>Following points should be considered while changing the culture of an organization<\/strong>:\r\n\r\n&nbsp;\r\n\r\n1.\u00a0\u00a0\u00a0\u00a0\u00a0 The top management should become the positive role model through their own behaviour;\r\n\r\n<span style=\"text-align: initial;font-size: 1em\">2.\u00a0\u00a0\u00a0\u00a0\u00a0 Culture is learnt through stories, rituals etc. the old ones should be replaced by new ones , which are in vogue;<\/span>\r\n\r\n<span style=\"text-align: initial;font-size: 1em\">3.\u00a0\u00a0\u00a0\u00a0\u00a0 Adding a new executive at the top is the powerful strategy to change the culture;<\/span>\r\n\r\n<span style=\"text-align: initial;font-size: 1em\">4.\u00a0\u00a0\u00a0\u00a0\u00a0 The socialisation process should be redesigned to align with new values;<\/span>\r\n\r\n<span style=\"text-align: initial;font-size: 1em\">5.\u00a0\u00a0\u00a0\u00a0\u00a0 Reward system establishes and reinforces the cultural behaviours. So this should also align with and support new culture;<\/span>\r\n\r\n<span style=\"text-align: initial;font-size: 1em\">6.\u00a0\u00a0\u00a0\u00a0\u00a0 Unwritten norms and beliefs should be replaced with formal written rules and regulations;<\/span>\r\n\r\n<span style=\"text-align: initial;font-size: 1em\">7.\u00a0\u00a0\u00a0\u00a0\u00a0 Liberal use of job rotations should be made to shake current sub culture.<\/span>\r\n\r\n<\/div>\r\n<div>\r\n\r\n&nbsp;\r\n\r\n&nbsp;\r\n\r\n<strong>Enriching organizational culture<\/strong>\r\n\r\n&nbsp;\r\n\r\nFollowing additional practices contribute to enrich the organizational culture;\r\n\r\n&nbsp;\r\n\r\n1.\u00a0\u00a0\u00a0\u00a0\u00a0 Job analysis should be done periodically;\r\n\r\n&nbsp;\r\n\r\n2.\u00a0\u00a0\u00a0\u00a0\u00a0 An individual should be encouraged in public for good work done;\r\n\r\n&nbsp;\r\n\r\n3.\u00a0\u00a0\u00a0\u00a0\u00a0 job requirements should be clearly defined ;\r\n\r\n&nbsp;\r\n\r\n4.\u00a0\u00a0\u00a0\u00a0\u00a0 Celebrate festivals that employees greatly value;\r\n\r\n&nbsp;\r\n\r\n5.\u00a0\u00a0\u00a0\u00a0\u00a0 Publicize stories, encourage hero worship;\r\n\r\n&nbsp;\r\n\r\n6.\u00a0\u00a0\u00a0\u00a0\u00a0 Organize social functions;\r\n\r\n&nbsp;\r\n\r\n7.\u00a0\u00a0\u00a0\u00a0\u00a0 Ensure quality decisions;\r\n\r\n&nbsp;\r\n\r\n8.\u00a0\u00a0\u00a0\u00a0\u00a0 Show concern to all employees;\r\n\r\n&nbsp;\r\n\r\n9.\u00a0\u00a0\u00a0\u00a0\u00a0 Encourage innovative ideas and reward them;\r\n\r\n&nbsp;\r\n\r\n10.\u00a0 Lay down promotion policy; create a healthy and competitive work environment;\r\n\r\n&nbsp;\r\n\r\n11.\u00a0 Ensure quality of work life.\r\n\r\n&nbsp;\r\n\r\n&nbsp;\r\n\r\n<strong>9. Summary<\/strong>\r\n\r\n&nbsp;\r\n\r\nCulture is invisible power of any organization. When thinking and actions of employees are institutionalized, an organizational culture is deemed to have taken birth. Culture guides the employees. Organizational culture is not inborn. It has to be invented and later developed over a period of time. Organizational culture comes into existence due to philosophy and beliefs of founder team. It is passed on to successive employees. It is learnt through shared values, sagas\/ stories, rites, rituals and assumptions. Top management plays a major role in creating and\u00a0<span style=\"text-align: initial;font-size: 1em\">sustaining a culture. Organizational culture has sub cultures as its parts. A strong culture can prove to be a liability for the organization due to problems it can possess; including resistance to change and diversity management. There are different types of cultures: dominant\/ sub culture, strong\/ weak culture, mechanistic\/organic culture, authoritarian \/ participative culture and national culture. Due to dynamic external environment, sometimes it becomes inevitable to change the organizational culture. Changing the culture is a long and tedious process and it may take years to properly implement the new organizational culture.<\/span>\r\n\r\n<\/div>\r\n<p style=\"text-align: center\"><strong>Learn More:<\/strong><\/p>\r\n\r\n<ol>\r\n \t<li>Aswathappa,K. (2008). <strong><em>Organizational Behaviour<\/em><\/strong>. Himalaya Publishing House, New Delhi<\/li>\r\n \t<li>Gupta, S.K., Joshi, Rosy. (2013). <strong><em>Organizational Behaviour<\/em><\/strong>. Kalyani Publishers, New Delhi<\/li>\r\n \t<li>Kondalkar,V.G. (2009).<strong><em>Organizational Behaviour<\/em><\/strong>.New Age Publishers, New Delhi<\/li>\r\n \t<li>Prasad, L.M. (2009). <strong><em>Organizational Behaviour<\/em><\/strong>. Sultan Chand &amp; Sons, New Delhi<\/li>\r\n \t<li>Robbins, S., Timothy.A.J.,Sanghi, S. (2009).<strong><em>Organizational Behaviour: Text and Cases<\/em><\/strong>. Pearson Prentice Hall, New Delhi<\/li>\r\n \t<li><a href=\"http:\/\/www.centreforum.org\/assets\/pubs\/workplace-democracy.pdf\">http:\/\/www.centreforum.org\/assets\/pubs\/workplace-democracy.pdf<\/a><\/li>\r\n \t<li><a href=\"http:\/\/www.arabianjbmr.com\/pdfs\/OM_VOL_3_(2)\/4.pdf\">http:\/\/www.arabianjbmr.com\/pdfs\/OM_VOL_3_(2)\/4.pdf<\/a><\/li>\r\n \t<li><a href=\"http:\/\/www.usa-journals.com\/wp-content\/uploads\/2014\/01\/Elnaga_Vol-21.pdf\">http:\/\/www.usa-journals.com\/wp-content\/uploads\/2014\/01\/Elnaga_Vol-21.pdf<\/a><\/li>\r\n \t<li><a href=\"https:\/\/www.researchgate.net\/publication\/233868664_Role_of_Employee_Empowerment_in_Organization_Performance_A_review\">https:\/\/www.researchgate.net\/publication\/233868664_Role_of_Employee_Empowerment<\/a> <a href=\"https:\/\/www.researchgate.net\/publication\/233868664_Role_of_Employee_Empowerment_in_Organization_Performance_A_review\">_in_Organization_Performance_A_review<\/a><\/li>\r\n \t<li><a href=\"http:\/\/maxwellsci.com\/print\/ajbm\/v5-313-319.pdf\">http:\/\/maxwellsci.com\/print\/ajbm\/v5-313-319.pdf<\/a><\/li>\r\n \t<li>http:\/\/www.inc.com\/kevin-daum\/8-tips-for-empowering-employees.html<\/li>\r\n<\/ol>","rendered":"<div>\n<p>&nbsp;<\/p>\n<p>1.\u00a0\u00a0\u00a0\u00a0\u00a0 Learning Outcome<\/p>\n<p>&nbsp;<\/p>\n<p>2.\u00a0\u00a0\u00a0\u00a0\u00a0 Introduction<\/p>\n<p>&nbsp;<\/p>\n<p>3.\u00a0\u00a0\u00a0\u00a0\u00a0 Characteristics of organizational culture<\/p>\n<p>&nbsp;<\/p>\n<p>4.\u00a0\u00a0\u00a0\u00a0\u00a0 Levels of culture<\/p>\n<p>&nbsp;<\/p>\n<p>5.\u00a0\u00a0\u00a0\u00a0\u00a0 Uniformity in culture<\/p>\n<p>&nbsp;<\/p>\n<p>6.\u00a0\u00a0\u00a0\u00a0\u00a0 Functions of culture<\/p>\n<p>&nbsp;<\/p>\n<p>7.\u00a0\u00a0\u00a0\u00a0\u00a0 Origin of culture<\/p>\n<p>&nbsp;<\/p>\n<p>8.\u00a0\u00a0\u00a0\u00a0\u00a0 Sustaining the culture<\/p>\n<p>&nbsp;<\/p>\n<p>9.\u00a0\u00a0\u00a0\u00a0\u00a0 Summary<\/p>\n<p>&nbsp;<\/p>\n<p>&nbsp;<\/p>\n<p><strong>2. Introduction<\/strong><\/p>\n<p>&nbsp;<\/p>\n<p style=\"text-align: justify\">Culture is invisible power of any organization. When thinking and actions of employees are institutionalized, an organizational culture is deemed to have taken birth. Culture guides the employees. Organizational culture is not inborn. It has to be invented and later developed over a period of time. Environment and demographic factors play a decisive role in developing the culture. Culture of an organization is informal in nature and relates to shared way of living. It is a common binding factor in the organization. Value system is the corner stone of the organization culture. Let us have a look on some definitions of culture:<\/p>\n<p>&nbsp;<\/p>\n<p style=\"text-align: justify\"><em>Culture is a pattern of basic assumptions invented, discovered or developed by given group as it learns to cope with its problems of external adoption and internal integration worked well\u00a0<\/em><em style=\"text-align: initial;font-size: 1em\">enough to be considered valuable and therefore, to be taught to new members as a correct way to perceive, think and feel, in relation to those problems.<\/em><\/p>\n<\/div>\n<div>\n<p>&nbsp;<\/p>\n<p>Edgar Schein<\/p>\n<p>&nbsp;<\/p>\n<p><em>Culture is the shared attitude and perceptions in an organization that are based on a set of<\/em><\/p>\n<p>&nbsp;<\/p>\n<p><em>fundamental norms and values and help members understand the organization.\u201d<\/em><\/p>\n<p>&nbsp;<\/p>\n<p>Wagner III and Hollenbeck<\/p>\n<p>&nbsp;<\/p>\n<p><em>Corporate culture consists of norms, values and unwritten rules of conduct of an organization as<\/em><\/p>\n<p>&nbsp;<\/p>\n<p><em>well as management styles, priorities, belief and interpersonal behaviors that prevail. Together<\/em><\/p>\n<p>&nbsp;<\/p>\n<p><em>they create climate that influences how well people communicate, plan and make decisions.<\/em><\/p>\n<p>&nbsp;<\/p>\n<p>Sinn<\/p>\n<p>&nbsp;<\/p>\n<p>It is clear from above definitions that (i) culture is about combination of the factors that are learnt<\/p>\n<p>&nbsp;<\/p>\n<p>through interaction with environment and (ii) organization culture stress on the sharing of norms<\/p>\n<p>&nbsp;<\/p>\n<p>and values that guide the employees\u201f behavior. Culture guides the employees\u201f behavior within<\/p>\n<p>&nbsp;<\/p>\n<p>the organization and defines a code of conduct outside the organization.<\/p>\n<p>&nbsp;<\/p>\n<p>&nbsp;<\/p>\n<p><strong>3.\u00a0\u00a0\u00a0 <\/strong><strong>Characteristics of organizational culture: <\/strong>Organizational Culture is identified through following characteristics:<\/p>\n<p><strong>\u00a0<\/strong><\/p>\n<p style=\"text-align: justify\">1.\u00a0 \u00a0Individual autonomy: It is the degree of responsibility and freedom to take initiative for decision making by employees;<\/p>\n<p>&nbsp;<\/p>\n<p style=\"text-align: justify\">2. Structure: It refers to the degree to which the organization creates clears objectives and performance expectations and<\/p>\n<p style=\"text-align: justify\">includes degree of direct supervision used to control the employees\u201f behaviour.<\/p>\n<p>&nbsp;<\/p>\n<p style=\"text-align: justify\">3.\u00a0 Support of management: this is the degree to which the management provides clear communication, assistance, warmth<\/p>\n<p style=\"text-align: justify\">and support to subordinates;<\/p>\n<p>&nbsp;<\/p>\n<p>4.\u00a0\u00a0\u00a0\u00a0\u00a0 Identity: this is the extent to which the employees identify with the organization as a whole, rather than with their<\/p>\n<p>particular work group.<\/p>\n<p>&nbsp;<\/p>\n<p style=\"text-align: justify\">5.\u00a0 Performance reward system: the degree to which the reward system in the organization like salary hike, promotions,<\/p>\n<p style=\"text-align: justify\">recognition etc is based on employee performance than on unfair practices like seniority, favouritism etc;<\/p>\n<\/div>\n<div>\n<p>&nbsp;<\/p>\n<p>6.\u00a0 \u00a0Tolerance to conflict: this refers to the degree of conflict present in relationships between colleagues and work groups.<\/p>\n<p style=\"text-align: justify\">It also refers to the extent to which the employees are encouraged to air conflicts and criticisms openly;<\/p>\n<p>&nbsp;<\/p>\n<p>7.\u00a0 Risk tolerance: It refers the degree to which employees are encouraged to be innovative, aggressive and risk taking.<\/p>\n<p>&nbsp;<\/p>\n<p style=\"text-align: justify\">8.\u00a0 Communication patterns: the degree to which the organization communication is restricted to formal hierarchy of authority;<\/p>\n<p>&nbsp;<\/p>\n<p>9. Orientation towards outcomes: it refers to the extent to which the management focuses on final outcomes rather than<\/p>\n<p style=\"text-align: justify\">techniques and processes used to arrive at these outcomes.<\/p>\n<p>&nbsp;<\/p>\n<p style=\"text-align: justify\">10.\u00a0 People orientation: this is the degree to which the management decisions take into consideration the impact of outcomes<\/p>\n<p style=\"text-align: justify\">on people within the organization.<\/p>\n<p>&nbsp;<\/p>\n<p>&nbsp;<\/p>\n<p><strong>4.\u00a0\u00a0 <\/strong><strong>Levels of culture\/ Learning of culture<\/strong>: Schein proposes three levels of culture at which it is learnt:<\/p>\n<p>&nbsp;<\/p>\n<p style=\"text-align: justify\"><strong>1.\u00a0\u00a0 <\/strong><strong>Observable artifacts of culture<\/strong>: These are the symbols of culture in the physical and social work environment. These are visible and most accessible. These include founders of organization, their leadership styles and ethical behaviors. Employees are expected to follow and copy their work ethics.<\/p>\n<p>&nbsp;<\/p>\n<p style=\"text-align: justify\"><strong>Rites and rituals <\/strong>are recurring activities that are used at special times to influence the behavior and understanding of organizational members. For example taking out Colours during oath ceremony is in the defense services. Colours remind soldiers of the excellent work done and sacrifices made by their predecessors, presentations of certificates\/degrees during convocation ceremony in the university. Rituals are systems of rites like departmental song, colors, and company picnic or retirement dinners. <strong>Cultural symbols<\/strong> are an object, act, or event that serves to transmit cultural meaning\u201d. Corporate uniform, tie, buttons etc are the examples. <strong>Saga<\/strong> is a heroic account of accomplishments Sagas are important because they are used to tell new members the real mission of the organization, how the organization operates, and how individual can fit into the organizational settings.<\/p>\n<p>&nbsp;<\/p>\n<p style=\"text-align: justify\"><strong>2.\u00a0\u00a0 <\/strong><strong>Shared values<\/strong>: The values can be terminal values that reflects end state of existence; and instrumental values, the means to achieve terminal values. Being hard working (instrumental value) may lead to achieve solace (terminal value). Shared value resides at the very heart of the\u00a0<span style=\"font-size: 1em;text-align: initial\">organizational culture. It helps turn routine activities into valuable, important actions, tie the corporation to important value of society that may provide a very distinctive source of competitive advantage. Values should be linked with work. A person should feel that he is producing an umbrella that keeps health of the society. He is not merely working for material gain but for good of society. An organizations should therefore develop a \u201cdominant and coherent\u00a0<\/span><span style=\"text-align: initial;font-size: 1em\">set of shared values\u201d so that individual behaves in a graduated manner in line with the organizational philosophy.<\/span><\/p>\n<\/div>\n<div>\n<p>&nbsp;<\/p>\n<p style=\"text-align: justify\"><strong>3.\u00a0<\/strong><strong>Common Assumptions: <\/strong>Common assumptions are fallout of shared value system and observable artifacts of culture. Employees, over a period of time form within themselves a common culture. In Bajaj Automobiles, everybody comes in time to the plant. Punctuality is therefore a common assumption that is embedded in their organizational culture. Indians believe in truth and non-violence. Therefore it is a common assumption of our national culture.<\/p>\n<p>&nbsp;<\/p>\n<p>&nbsp;<\/p>\n<p style=\"text-align: justify\"><strong>5. Uniformity of Culture:\u00a0<\/strong>It is commonly presumed that organization has a uniform culture throughout. It means that employees with different backgrounds interpret the culture in the similar way. But it is not always true. There have been different types of the cultures which have been identified so far:<\/p>\n<p>&nbsp;<\/p>\n<p style=\"text-align: justify\"><strong>(i) Dominant culture and Sub culture<\/strong>: A dominant culture is a set of core values shared by a majority of an organization\u201fs employees. Most prevalent and talked about organizational culture is the dominant culture. Dominant culture helps guide the day to day behavior of employees.<\/p>\n<p>&nbsp;<\/p>\n<p style=\"text-align: justify\">A sub culture is a set of values shared by a small minority of organizations\u201f members.sub culture arises as a result of experiences shared by members of a particular department or unit of the organization. In the sub culture, core values of dominant culture are retained but are modified to reflect the particular unit\u201fs situation. E.g. marketing department has its own sub culture and R &amp; D has its own sub culture due to additional values unique to these departments.<\/p>\n<p>&nbsp;<\/p>\n<p style=\"text-align: justify\">An organization must have a strong dominant culture. If sub cultures become stronger, these will come into conflict with the dominant culture. As a result, the dominant culture will become weak and concept of shared behavior will no longer be effective.<\/p>\n<p>&nbsp;<\/p>\n<p style=\"text-align: justify\"><strong>(b) Strong culture and weak culture<\/strong>: An organizational culture can be strong or weak. Strong culture has strong values and strong leadership; is always widely shared; and is intensely held by its members who show sense of deep commitment towards culture.<\/p>\n<p>&nbsp;<\/p>\n<p><span style=\"font-size: 1em;text-align: initial\">A weak culture is the reverse of the strong culture. A strong culture leads to reduced turnover and positive employee attitude. Major drawback of strong culture is that it leads to \u201egroup think\u201f, collective blind spots and resistance to change and innovation.<\/span><\/p>\n<\/div>\n<div>\n<p>&nbsp;<\/p>\n<p style=\"text-align: justify\"><strong>(c) Mechanistic and Organic Culture<\/strong>: In mechanistic type of culture, the values of bureaucracy and feudalism are maintained. Emphasis is given to specialization, flow of authority from top to lower levels and well defined communication channels. This culture can result into loyalty of employees, but inter departmental rivalry exist. This culture also resists change and innovation.<\/p>\n<p>&nbsp;<\/p>\n<p style=\"text-align: justify\">Organic culture is the contrast of mechanistic culture. Stress is on flexibility, consultation, change and innovation. There are no well defined communication channels, departmental boundaries, hierarchies of authority or formal rules and regulations. Whole staff acts as a team.<\/p>\n<p>&nbsp;<\/p>\n<p style=\"text-align: justify\"><strong>(d) Authoritarian and Participative Culture<\/strong>: Authoritarian culture is characterized by centralization of power, stress on discipline and punishment for disobedience. It is assumed that leader knows what is good for the organization. This type of culture discourages professionalism because professionals consider themselves as equals.<\/p>\n<p>&nbsp;<\/p>\n<p style=\"text-align: justify\">The participative culture is based on the assumption that if all people working in the organization participate in decision making, then they are more likely to be committed to the decision that has been taken rather than to those decisions which are imposed on them by autocratic leaders. Group problem solving always leads to better decisions because several minds working together are always better than single mind working alone.<\/p>\n<p>&nbsp;<\/p>\n<p style=\"text-align: justify\"><strong>(e) National Culture vs. Organizational culture<\/strong>: organizational culture is always influenced by the culture of the country, irrespective of the origin of the company. If there is a clash between organizational culture and national culture, the organizational culture generally prevails. E.g. multinational companies operating in India declare holidays according to Indian festivals.<\/p>\n<p>&nbsp;<\/p>\n<p>&nbsp;<\/p>\n<p><strong>6.\u00a0 <\/strong><strong>Functions <\/strong><strong>of organizational culture<\/strong><\/p>\n<p>&nbsp;<\/p>\n<p>Organizational culture serves the following functions:<\/p>\n<p>&nbsp;<\/p>\n<p style=\"text-align: justify\">1.\u00a0 It gives members an organizational identity: Sharing norms, values and perceptions gives people a sense of togetherness<\/p>\n<p style=\"text-align: justify\">that helps promote a feeling of common purpose. This also enables the employees how to think and behave as expected of<\/p>\n<p style=\"text-align: justify\">them.<\/p>\n<p style=\"text-align: justify\"><span style=\"font-size: 1em;text-align: initial\">2.\u00a0 It facilitates collective commitment: The common purpose that grows out of shared culture tends to elicit strong <\/span><\/p>\n<p style=\"text-align: justify\"><span style=\"font-size: 1em;text-align: initial\">commitment from all employees who accept the culture as their own.<\/span><\/p>\n<p style=\"text-align: justify\"><span style=\"text-align: initial;font-size: 1em\">3.\u00a0 \u00a0It promotes systems stability: By encouraging a shared sense of identity and commitment, culture encourages <\/span><\/p>\n<p style=\"text-align: justify\"><span style=\"text-align: initial;font-size: 1em\">lasting\u00a0<\/span><span style=\"text-align: initial;font-size: 1em\">integration and cooperation among the members of an organization. It enhances social stability by holding the <\/span><\/p>\n<p style=\"text-align: justify\"><span style=\"text-align: initial;font-size: 1em\">organizational\u00a0<\/span><span style=\"text-align: initial;font-size: 1em\">members together by providing them appropriate standards.<\/span><\/p>\n<p style=\"text-align: justify\"><span style=\"text-align: initial;font-size: 1em\">4.\u00a0 \u00a0It shapes behaviour by helping members make sense of their surroundings: An organization culture serves as a source of <\/span><\/p>\n<p style=\"text-align: justify\"><span style=\"text-align: initial;font-size: 1em\">shared meaning that explains why things occur the way they do. Organizational culture is seen but felt. Culture reflects the <\/span><\/p>\n<p style=\"text-align: justify\"><span style=\"text-align: initial;font-size: 1em\">value shared by organizational members.<\/span><\/p>\n<p style=\"text-align: justify\"><span style=\"text-align: initial;font-size: 1em\">5.\u00a0\u00a0\u00a0\u00a0\u00a0 It provides a boundary: Culture creates distinction between one organization and the other. Such boundary defining <\/span><\/p>\n<p style=\"text-align: justify\"><span style=\"text-align: initial;font-size: 1em\">helps identify members and non-members of the organization.<\/span><\/p>\n<p style=\"text-align: justify\"><span style=\"text-align: initial;font-size: 1em\">6. Culture facilitates the generation of commitment to something larger them one\u201fs individual self-interest. It serves as <\/span><\/p>\n<p style=\"text-align: justify\"><span style=\"text-align: initial;font-size: 1em\">control mechanism that guides and shapes the attitude and behaviour of organizational members.<\/span><\/p>\n<p style=\"text-align: justify\"><span style=\"text-align: initial;font-size: 1em\">7.\u00a0 It helps organizational members stick to conformity and expected mode of behaviour. Culture ensures that everyone <\/span><\/p>\n<p style=\"text-align: justify\"><span style=\"text-align: initial;font-size: 1em\">thinks and behaves in a prescribed manner.<\/span><\/p>\n<\/div>\n<div>\n<p>&nbsp;<\/p>\n<p><strong>6.1 Dysfunctions of Culture<\/strong><\/p>\n<p>&nbsp;<\/p>\n<p>Though organizational culture is very important and serves many functions, yet it can prove to be a liability for the organization.<\/p>\n<p>&nbsp;<\/p>\n<p style=\"text-align: justify\"><strong>1.\u00a0\u00a0 <\/strong><strong>Barrier to change<\/strong>: when the business environment is stable, the consistency of employee behavior is an asset for the organization. But when the environment becomes dynamic, the consistent behavior becomes a problem as the employees try to resist the changes in the environment. Many companies, have a strong culture, that has worked very well for them in the past, had to face many difficulties when need to change with the environmental changes arose (e.g. General Motors, IBM). Thus strong culture can become an obstacle to change if these cultures fail to match with changing environmental needs.<\/p>\n<p><strong>\u00a0<\/strong><\/p>\n<p style=\"text-align: justify\"><strong>2.\u00a0\u00a0 <\/strong><strong>Barrier to Diversity<\/strong>: Strong cultures put a lot of pressure on employees to confirm to the accepted values and styles of the organization. The employees belonging to different country,\u00a0<span style=\"font-size: 1em;text-align: initial\">race or religion also have to conform to organizations\u201f culture and values; otherwise they are believed to be unfit for the company. Strong cultures do not accept the fact that people from different backgrounds bring unique strengths to the company. This proves to be a barrier in the diversity management.<\/span><\/p>\n<\/div>\n<div>\n<p>&nbsp;<\/p>\n<p style=\"text-align: justify\"><strong>3.\u00a0\u00a0 <\/strong><strong>Barrier to Mergers and Acquisitions<\/strong>: Earlier, during mergers and acquisitions, the financial matters and product synergy alone were considered the key factors in deciding which company should merge with which company or which company should acquire which company. In the recent years, trend has changed. Cultural compatibility has become a primary concern during mergers and acquisitions. Strong cultures of the two merging companies create problems of acceptability of the other culture. Same is true of acquisitions.<\/p>\n<p>&nbsp;<\/p>\n<p>&nbsp;<\/p>\n<p><strong>7. Origin of the organizational culture<\/strong><\/p>\n<p>&nbsp;<\/p>\n<p style=\"text-align: justify\">The vision of founders and various functions of the organization create culture. The ideology and customs are bedrock of any organizational culture. The mission and vision of founder members, hard work, competitive spirit and the way of life is important as it establishes cultural value of any organization. E.g. the vision of Ratan Tata has created a Tata culture. There are two steps in creation of culture.<\/p>\n<p>&nbsp;<\/p>\n<p>1.\u00a0 A single person (founder) has an idea for a new enterprise.<\/p>\n<p>&nbsp;<\/p>\n<p>2.\u00a0 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 the core group believe that the idea is good one, is workable, and is worth running some risk for.<\/p>\n<p>&nbsp;<\/p>\n<p>3. The founder core group starts to create an organization by raising funds, obtaining patents, locating land, designing building etc.<\/p>\n<p>&nbsp;<\/p>\n<p>4.\u00a0 \u00a0At this point, others are brought into organization and a common history begins to be built.<\/p>\n<p>&nbsp;<\/p>\n<p style=\"text-align: justify\">5.\u00a0 The founders have a major impact on the organization\u201fs early culture. They do not have any constrains of previous customs or ideologies. As new enterprises have small size, it becomes easy for the founders to exercise their will on organization members. The founders have their own prejudices regarding the fulfilment of original ideas. The organization culture results from interaction between<\/p>\n<p>&nbsp;<\/p>\n<p>(a) Founder\u201fs biases and assumptions;<\/p>\n<p>&nbsp;<\/p>\n<p><span style=\"font-size: 1em;text-align: initial\">(b) What the original members, who were employed by founders, learnt from them.<\/span><\/p>\n<\/div>\n<div>\n<p>&nbsp;<\/p>\n<p style=\"text-align: justify\">Best example of this is the Tata Empire. The late J.R.D. Tata was the founder. His supportive and constructive role; his beliefs in hard work and professionalism ; and his assumption that only honesty and fair dealing pays, has been followed by his successors and is imbibed deeply in the Tata culture. This has made Tata group, what it is today.<\/p>\n<p>&nbsp;<\/p>\n<p><strong>7.1 Sustaining the organizational culture<\/strong><\/p>\n<p>&nbsp;<\/p>\n<p>Following practices help to sustain the organizational culture:<\/p>\n<p>&nbsp;<\/p>\n<p style=\"text-align: justify\"><strong>Selection<\/strong>: Standardized procedure should be used to hire right people for right job. Experts should try to screen out those whose value system does not conflict with that of the organization. It is important that organizations lay down detailed process of selection criteria and selects a team who can employ right people for right jobs. The vision, mission, and policy of a sound organization must not be bypassed while selecting the people for work performance. People who do not have core values of an organization must not be appointed because one day they might destroy the very foundation of value system in an organization.<\/p>\n<p>&nbsp;<\/p>\n<p style=\"text-align: justify\"><strong>Top Management<\/strong>: The actions of top management have a major impact on the organization culture. . It is the duty of the management to lay down organizational mission, which is achievable. It is the duty of managers to ensure that all workers respect the organizational culture and run the organization as per its philosophy. It is therefore important that managers play a significant role in keeping values, behaviors and opinions of the organizational members under control and guide them appropriately. Leaders in the organization should pay continuous attention to maintaining the established standards and send clear signals to all the members as to what is expected of them.<\/p>\n<p>&nbsp;<\/p>\n<p style=\"text-align: justify\"><strong>Socialization<\/strong>: Employees should be properly inducted in the organization. Organization policy should lay down procedure for this. Individual employee should be briefed on the organization structure, his department and the immediate superior to whom he is to report. Induction also involves lying down career path for managerial cadre. Training and development programmes, promotional cadres should be planned on a regular basis so that an appropriate message is passed on to the employees. It is the duty of the senior managers to ensure that organizational culture is enriched. During induction the employees receive a positive signal of the level of organizational culture. In case employees fail to adapt to the organization\u201fs culture are called \u201enon conformist\u201f and are further put through an intensive training programme as under.<\/p>\n<p>&nbsp;<\/p>\n<p><strong style=\"text-align: initial;font-size: 1em\"><em>Pre-arrival Stage<\/em><\/strong><span style=\"text-align: initial;font-size: 1em\">: The values, attitudes, personality and learning aptitude are assessed to drive the individual towards organizational culture. It is diagnosis stage, which identifies, in an individual the possibilities of socialization (adaptation) of the organization\u201fs culture.<\/span><\/p>\n<p>&nbsp;<\/p>\n<p style=\"text-align: justify\"><strong style=\"text-align: initial;font-size: 1em\"><em>Encounter Stage<\/em><\/strong><span style=\"text-align: initial;font-size: 1em\">: It is an induction stage where a recruit joins an organization and is put through the job. He compares his expectations and image that he has formed with the organizational set up. If the expectations are far from reality, they are expected to learn and follow organizational value system. Those who modify and learn are taken into the mainstream of the organization. Those who resist have to quit the organization being misfit.<\/span><\/p>\n<\/div>\n<div>\n<p>&nbsp;<\/p>\n<p style=\"text-align: justify\"><strong><em>Metamorphosis Stage<\/em><\/strong>: It is a consolidation stage where individual learn the values, norms, culture of the organization. It is voluntary process where an individual is put under a facilitator for learning process. Individual masters skills required for job performance, he adopts new role and adjust himself to changed life style.<\/p>\n<p>In the defense services socialization has a great importance and is also known as \u201eregimentation\u201f. Each officer is required to follow daily routine that soldiers follow. The aim of the exercise is to make him aware of the criticality and knowing each function from grass route level. This also enables his troops to understand him and his commitment towards them in exercise of command. This type of induction has paid rich dividends.<\/p>\n<p>&nbsp;<\/p>\n<p><strong>8. Changing organizational culture<\/strong><\/p>\n<p>&nbsp;<\/p>\n<p>Under some critical circumstances, the existing culture may become undesirable, giving rise to the need of a new culture. Some of such circumstances are as under:<\/p>\n<p>&nbsp;<\/p>\n<p>1.\u00a0\u00a0\u00a0\u00a0\u00a0 A major crisis like financial setback, cost cutting, loss of key customers or technological breakthrough;<\/p>\n<p>&nbsp;<\/p>\n<p>2.\u00a0\u00a0\u00a0\u00a0\u00a0 When a top executive leaves the organization and a new leadership takes over, era of a new culture sets in;<\/p>\n<p>&nbsp;<\/p>\n<p>3.\u00a0\u00a0\u00a0\u00a0\u00a0 In young and small organizations, the culture can be easily changed;<\/p>\n<p>&nbsp;<\/p>\n<p>4.\u00a0\u00a0\u00a0\u00a0\u00a0 Weak Culture: a weak culture is easy to change than a strong one.<\/p>\n<p>&nbsp;<\/p>\n<p>&nbsp;<\/p>\n<p><strong>Following points should be considered while changing the culture of an organization<\/strong>:<\/p>\n<p>&nbsp;<\/p>\n<p>1.\u00a0\u00a0\u00a0\u00a0\u00a0 The top management should become the positive role model through their own behaviour;<\/p>\n<p><span style=\"text-align: initial;font-size: 1em\">2.\u00a0\u00a0\u00a0\u00a0\u00a0 Culture is learnt through stories, rituals etc. the old ones should be replaced by new ones , which are in vogue;<\/span><\/p>\n<p><span style=\"text-align: initial;font-size: 1em\">3.\u00a0\u00a0\u00a0\u00a0\u00a0 Adding a new executive at the top is the powerful strategy to change the culture;<\/span><\/p>\n<p><span style=\"text-align: initial;font-size: 1em\">4.\u00a0\u00a0\u00a0\u00a0\u00a0 The socialisation process should be redesigned to align with new values;<\/span><\/p>\n<p><span style=\"text-align: initial;font-size: 1em\">5.\u00a0\u00a0\u00a0\u00a0\u00a0 Reward system establishes and reinforces the cultural behaviours. So this should also align with and support new culture;<\/span><\/p>\n<p><span style=\"text-align: initial;font-size: 1em\">6.\u00a0\u00a0\u00a0\u00a0\u00a0 Unwritten norms and beliefs should be replaced with formal written rules and regulations;<\/span><\/p>\n<p><span style=\"text-align: initial;font-size: 1em\">7.\u00a0\u00a0\u00a0\u00a0\u00a0 Liberal use of job rotations should be made to shake current sub culture.<\/span><\/p>\n<\/div>\n<div>\n<p>&nbsp;<\/p>\n<p>&nbsp;<\/p>\n<p><strong>Enriching organizational culture<\/strong><\/p>\n<p>&nbsp;<\/p>\n<p>Following additional practices contribute to enrich the organizational culture;<\/p>\n<p>&nbsp;<\/p>\n<p>1.\u00a0\u00a0\u00a0\u00a0\u00a0 Job analysis should be done periodically;<\/p>\n<p>&nbsp;<\/p>\n<p>2.\u00a0\u00a0\u00a0\u00a0\u00a0 An individual should be encouraged in public for good work done;<\/p>\n<p>&nbsp;<\/p>\n<p>3.\u00a0\u00a0\u00a0\u00a0\u00a0 job requirements should be clearly defined ;<\/p>\n<p>&nbsp;<\/p>\n<p>4.\u00a0\u00a0\u00a0\u00a0\u00a0 Celebrate festivals that employees greatly value;<\/p>\n<p>&nbsp;<\/p>\n<p>5.\u00a0\u00a0\u00a0\u00a0\u00a0 Publicize stories, encourage hero worship;<\/p>\n<p>&nbsp;<\/p>\n<p>6.\u00a0\u00a0\u00a0\u00a0\u00a0 Organize social functions;<\/p>\n<p>&nbsp;<\/p>\n<p>7.\u00a0\u00a0\u00a0\u00a0\u00a0 Ensure quality decisions;<\/p>\n<p>&nbsp;<\/p>\n<p>8.\u00a0\u00a0\u00a0\u00a0\u00a0 Show concern to all employees;<\/p>\n<p>&nbsp;<\/p>\n<p>9.\u00a0\u00a0\u00a0\u00a0\u00a0 Encourage innovative ideas and reward them;<\/p>\n<p>&nbsp;<\/p>\n<p>10.\u00a0 Lay down promotion policy; create a healthy and competitive work environment;<\/p>\n<p>&nbsp;<\/p>\n<p>11.\u00a0 Ensure quality of work life.<\/p>\n<p>&nbsp;<\/p>\n<p>&nbsp;<\/p>\n<p><strong>9. Summary<\/strong><\/p>\n<p>&nbsp;<\/p>\n<p>Culture is invisible power of any organization. When thinking and actions of employees are institutionalized, an organizational culture is deemed to have taken birth. Culture guides the employees. Organizational culture is not inborn. It has to be invented and later developed over a period of time. Organizational culture comes into existence due to philosophy and beliefs of founder team. It is passed on to successive employees. It is learnt through shared values, sagas\/ stories, rites, rituals and assumptions. Top management plays a major role in creating and\u00a0<span style=\"text-align: initial;font-size: 1em\">sustaining a culture. Organizational culture has sub cultures as its parts. A strong culture can prove to be a liability for the organization due to problems it can possess; including resistance to change and diversity management. There are different types of cultures: dominant\/ sub culture, strong\/ weak culture, mechanistic\/organic culture, authoritarian \/ participative culture and national culture. Due to dynamic external environment, sometimes it becomes inevitable to change the organizational culture. Changing the culture is a long and tedious process and it may take years to properly implement the new organizational culture.<\/span><\/p>\n<\/div>\n<p style=\"text-align: center\"><strong>Learn More:<\/strong><\/p>\n<ol>\n<li>Aswathappa,K. (2008). <strong><em>Organizational Behaviour<\/em><\/strong>. Himalaya Publishing House, New Delhi<\/li>\n<li>Gupta, S.K., Joshi, Rosy. (2013). <strong><em>Organizational Behaviour<\/em><\/strong>. Kalyani Publishers, New Delhi<\/li>\n<li>Kondalkar,V.G. (2009).<strong><em>Organizational Behaviour<\/em><\/strong>.New Age Publishers, New Delhi<\/li>\n<li>Prasad, L.M. (2009). <strong><em>Organizational Behaviour<\/em><\/strong>. Sultan Chand &amp; Sons, New Delhi<\/li>\n<li>Robbins, S., Timothy.A.J.,Sanghi, S. (2009).<strong><em>Organizational Behaviour: Text and Cases<\/em><\/strong>. Pearson Prentice Hall, New Delhi<\/li>\n<li><a href=\"http:\/\/www.centreforum.org\/assets\/pubs\/workplace-democracy.pdf\">http:\/\/www.centreforum.org\/assets\/pubs\/workplace-democracy.pdf<\/a><\/li>\n<li><a href=\"http:\/\/www.arabianjbmr.com\/pdfs\/OM_VOL_3_(2)\/4.pdf\">http:\/\/www.arabianjbmr.com\/pdfs\/OM_VOL_3_(2)\/4.pdf<\/a><\/li>\n<li><a href=\"http:\/\/www.usa-journals.com\/wp-content\/uploads\/2014\/01\/Elnaga_Vol-21.pdf\">http:\/\/www.usa-journals.com\/wp-content\/uploads\/2014\/01\/Elnaga_Vol-21.pdf<\/a><\/li>\n<li><a href=\"https:\/\/www.researchgate.net\/publication\/233868664_Role_of_Employee_Empowerment_in_Organization_Performance_A_review\">https:\/\/www.researchgate.net\/publication\/233868664_Role_of_Employee_Empowerment<\/a> <a href=\"https:\/\/www.researchgate.net\/publication\/233868664_Role_of_Employee_Empowerment_in_Organization_Performance_A_review\">_in_Organization_Performance_A_review<\/a><\/li>\n<li><a href=\"http:\/\/maxwellsci.com\/print\/ajbm\/v5-313-319.pdf\">http:\/\/maxwellsci.com\/print\/ajbm\/v5-313-319.pdf<\/a><\/li>\n<li>http:\/\/www.inc.com\/kevin-daum\/8-tips-for-empowering-employees.html<\/li>\n<\/ol>\n","protected":false},"author":3,"menu_order":38,"template":"","meta":{"pb_show_title":"on","pb_short_title":"","pb_subtitle":"","pb_authors":["dr-radha-kanwal-sharma"],"pb_section_license":""},"chapter-type":[],"contributor":[61],"license":[],"class_list":["post-320","chapter","type-chapter","status-publish","hentry","contributor-dr-radha-kanwal-sharma"],"part":3,"_links":{"self":[{"href":"https:\/\/ebooks.inflibnet.ac.in\/mgmtp13\/wp-json\/pressbooks\/v2\/chapters\/320","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/ebooks.inflibnet.ac.in\/mgmtp13\/wp-json\/pressbooks\/v2\/chapters"}],"about":[{"href":"https:\/\/ebooks.inflibnet.ac.in\/mgmtp13\/wp-json\/wp\/v2\/types\/chapter"}],"author":[{"embeddable":true,"href":"https:\/\/ebooks.inflibnet.ac.in\/mgmtp13\/wp-json\/wp\/v2\/users\/3"}],"version-history":[{"count":3,"href":"https:\/\/ebooks.inflibnet.ac.in\/mgmtp13\/wp-json\/pressbooks\/v2\/chapters\/320\/revisions"}],"predecessor-version":[{"id":323,"href":"https:\/\/ebooks.inflibnet.ac.in\/mgmtp13\/wp-json\/pressbooks\/v2\/chapters\/320\/revisions\/323"}],"part":[{"href":"https:\/\/ebooks.inflibnet.ac.in\/mgmtp13\/wp-json\/pressbooks\/v2\/parts\/3"}],"metadata":[{"href":"https:\/\/ebooks.inflibnet.ac.in\/mgmtp13\/wp-json\/pressbooks\/v2\/chapters\/320\/metadata\/"}],"wp:attachment":[{"href":"https:\/\/ebooks.inflibnet.ac.in\/mgmtp13\/wp-json\/wp\/v2\/media?parent=320"}],"wp:term":[{"taxonomy":"chapter-type","embeddable":true,"href":"https:\/\/ebooks.inflibnet.ac.in\/mgmtp13\/wp-json\/pressbooks\/v2\/chapter-type?post=320"},{"taxonomy":"contributor","embeddable":true,"href":"https:\/\/ebooks.inflibnet.ac.in\/mgmtp13\/wp-json\/wp\/v2\/contributor?post=320"},{"taxonomy":"license","embeddable":true,"href":"https:\/\/ebooks.inflibnet.ac.in\/mgmtp13\/wp-json\/wp\/v2\/license?post=320"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}