This document discusses organizational culture. It defines organizational culture as the underlying set of beliefs, assumptions, values and feelings shared by organizational members that is reflected in their actions and interactions. Organizational culture is influenced by the larger society, past experiences, and other organizations. It has physical manifestations like infrastructure and routines, as well as implicit elements like dominant values and philosophy. The document examines different types of organizational cultures and characteristics. It also discusses the importance of organizational culture and how leaders can shape and change culture over time.

1. ORGANISATION CULTURE
KULDEEP MATHUR
M.B.A. JIWAJI UNIVERSITY GWALIOR

2. Organizational culture is very important – cultural capital.
It is organization specific.
Culture means “to grow”.
Organization culture is a dynamic process – how and why it
develops, how it is sustained, how it is transmitted and managed
and its impact on organization effectiveness.
Organization is and organic entity which is either receptive and
adaptive or dormant or sterile.

3. Organization culture is submerged part of organization ice berg
– pervasive, intangible.
It is described as the personality of the organization/DNA of the
organization. It is underlying set of beliefs, assumptions, values
shared feelings & perceptions which is reflected in actions &
inter actions of organizational members.

4. Many sources of organization culture
It is influenced by the culture of the society in which it operates.
It is inherited from past.
It is influenced by better cultures of other organization.
It has to respond to the market Imperatives.

5. Nature of Organization culture.
Physical Infrastructure.
Routine behavior, language, ceremonies.
Rules & Procedures (Rigid, Responsive)
Gender equality, equality in payment.
Dominant values like qualities and efficiency.
Philosophy that guides organization.
Policies towards
Employees
Customers
Approach to innovation / creativity

6. Peter & Waterman – In search of Excellence
Craze for customers.
Craze for creativity
Care for the people

7. Formal Components of Organizational
Culture
Component Description Effect on Organizational
Culture
Mission /
Vision
The milestones to be reached Could be unrealistic
Policies Statements designed to be guides
behavioral decision
Policies, if not drafted
properly, can provide
leeway.
Procedures Methods providing specific
guidelines
Can facilitate or create
obstacles in smooth
functioning.
Rules Specific instructions for performing
a task
Rules could be a means or
an end in themselves.
State of
Organizational
Development
Organization at young, growing,
maturing and mature stage of
development.
State of organizational
development has direct
impact on work culture.

8. Characteristics of Four Types of
Organizational Cultures
Rational
culture
Developm
ental
culture
Consensual
culture
Hierarchical
culture
Organizati
onal
purpose
Pursuit of
rational
objectives
Creation;
developme
nt
Group-
maintenance
; team-
building
Execution;
regulation
Performanc
e criteria
Productivity;
efficiency
Growth;
innovation
Cohesion;
morale
Control; stability
Authority
Bases of
power
Boss
Competence
Charisma
Values
Membership
Informal
status
Rules; seniority
Knowledge of
regulations
Motives Achievements Growth Affiliation;
mutual
dependence
security

9.  Organizational culture and change
 •Transformational leadership and organizational culture
 Learning organizations
 Examples
(1) JRD Tata
(2) McDonald
(3) Enforces

10. Decision-
making
Planned;
decisive
Intuitive;
insightful
Participative Factual;
routine
Leadership
style
Goal
oriented
Innovative;
risk-taking
Supportive;
concerned
Conservativ
e; cautious
Compliance
style
Contractual
agreement
Commitment
to values
Commitment
to group
Control and
surveillance
Appraisal Tangible
results
Intensity of
efforts
Quality of
relationship
Formal and
impersonal
criteria

11. Rejuvenating organization culture
Purposeful Meaning
To
•Objectives & goals
vision, mission and
core value
•Vibrant dynamic
management style
•Create role model
•Indoctrination of new
entrants to core value
•Spread unique cult of
organization
Value Management
•Internal/external
Credibility
•Encourage dissent
•Openness &
transparency
•Learning organization
Social Glues
•Organisation as
extension of family
Social culture
celebrations
•Mentoring process
•Clean and Green
environment
•Adequate employee
welfare measures
•Common facilities-
canteen, uniform
transport, toilets, etc.
•Develop organization
myths, archetypes
stories, etc

12. Transparent Management
Practices
Encourage
OCTAPACE
Employee
communication quality
of work life
Objective reward,
appraisal & promotion
Trade Unions-Partners
in progress
Total Productive
Management
Delegation & de-
centralization system
perfection
Business strategy
Employee participation
Employee
empowerment
Productivity-Way of
Life
Work as meta value
Kaizen, TPM, TQM
Customer delight
Brand equity

13. Shared meanings Organization
pride
Sense of belonging
Organization identity
Job satisfaction

14. Roots of Cultural Perspective in
Organization
Practice Focus
Quality circles, TPM circles
Shop floor committee
Employee involvement
Suggestion scheme Exploration of individual creativity
and potential
Best Employee Award, Best
Attendance Award,
Best Safety Award, Best House
Keeping Award
Creating individual urge and
initiative for excellence
Managing by walking around
(MBWA)
Developing work place contacts,
empathetic relationship
Common uniform, toilets, bus, Developing sense of parity and

15. Birthday greetings, company gift
on marriage, festival gift,
participation by Senior Executives
in social ceremonies
Exploit family for a to develop
linkages with employees
Employment of employees
relatives on merit preferably in
other group units
Develop personal bondage and
loyalty
Competitive remuneration
package
To attract, retain and develop
talent; maintain continuity
Merit based reward system To develop objective, healthy
competitive urge for superordinate
goals
House magazine/newsletter, open
communication meeting by Unit
To develop transparency
openness, trust and effective
communication channel

16. Head (Darbar), daily and monthly
operations review meeting, personal
meeting with unit head of employees
at certain level at least once a year
Climate and attitude survey once in
two years
To understand employees perceptions
and feelings about organization and
take corrective actions, if any
Formulate committees for allotment of
house, telephone facilities, etc
Decision by Consensus
Emphasis on detailed MIS, SPC, SQC,
TQM, goal setting performance review
monitoring, zero budgeting, personnel
policy and systems, job description,
structure etc.
Analytical business approach system
approach

17. Continuous modernization, up
gradation of technology
Technology edge
Continuous training at all levels
opportunities
Exploration of employee potential
and improve knowledge and skills
Physical facilities, safety and
health care measures
Clean, green and friendly
environment/facilities
Fair and firm IR policies, justice
equity
Democratization of work