Organizational Culture Definition, creating, sustaining, types and implications Sources: Robbins and Ashwathapa

1. Organizational Culture
Instructor: Prof. Luxmi Malodia
Submitted by:
Prachi | Preeti | Radhika
MBA HR
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2. Definition & Nature
Organizational culture refers
to a system of shared
meaning held by members
that distinguishes the
organization from other
organizations.
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History
• Cultural norms of
a society are
transgenerational.
Shared Culture
• Cultural ethos are
shared among the
members of a
society.
Culture is not one person-specific.

3. Characteristics of Organization’s Culture
Characteristics
Innovation and Risk Taking
Attention To Detail
Outcome Orientation
People Orientation
Team Orientation
Aggressiveness
Stability
1
2
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5
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4. Functions of Organizational Culture
Gives a Sense of Identity
Clarify and Reinforce
Standards of Behaviour
It enhances the stability of
the social system. Culture
helps in developing sense-
making and control
mechanism that guides and
shapes employees’ attitudes
and behavior. Culture
defines the rules of the
game.
Culture has a boundary-defining
role: it creates distinctions between
one organization and others. It
conveys a sense of identity for
organization members.
Culture facilitates commitment
to something larger than
individual self-interest.
Generate Commitment
Among Employees
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5. 05-11-2021 Organizational Behaviour/Organizational Culture/Group 07 5
Levels of Culture
Mechanistic and Organic Cultures
Authoritarian and Participative Cultures
Dominant and Sub-Cultures
Strong and Weak Cultures
Five Dimensions of Corporate Culture

6. Levels of Culture
• Deepest/hidden level of culture.
• Taken-for-granted truths that organisational members share as a result of
their joint experience.
• For example, the way a senior executive, guilty of sexual harassment, is
handled or an employee caught indulging in an unethical act is dealt with.
Common
Assumptions
• Shared values are applicable to all organisational members and no
deviation is tolerated.
• Corporate vision and mission, common uniform and shared canteen
represent shared culture.
Shared Values
• At the surface.
• This manifests through symbols such as physical design, dress code,
logos, gadgets, and murals or stories, ceremonies and rituals.
Observable
Values
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7. Mechanistic and Organic Cultures
Mechanistic Organisational Culture
• Work is conceived as a system of
narrow specialism
• Authority tends to flow down
from the top down to the lower
levels
• Prescribed channels of
communication.
• Change is resisted.
Organic Culture
• Emphasis on task
accomplishment, team work
• The persons with expertise may
wield far more influence than
the formal boss.
• Free-flow of communication.
• The culture stresses flexibility,
consultation, change and
innovation.
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8. General Motors is an organization
using this model because:
• Large size
• Many people and functions
• Order is needed
• Repetitive tasks
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Example: Mechanistic Culture

9. Facebook Inc. is an
organization using this
model because:
• Creative problem solving
and decision-making
• Continuous improvement
• Boldness
• Openness
• Speed
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10. Authoritarian and Participative Cultures
Authoritarian Culture
• Power is concentrated on the the
top level management
• Authority demands obedience
from the employee and any
disobedience is punished to set an
example to others.
• Rigid ideas and limited creativity.
• This type of culture is followed by
military organization.
Participative Culture
• Employees actively participate in
the decision making process.
• Employees are perfectionist,
active and professional.
• Group problem-solving leads to
better decisions because of
many ideas and creativity.
• Professional employees who see
themselves as equals.
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11. Subculture and Dominant Culture
Dominant Culture
• A culture that expresses core
values that are shared by a
majority of the organization’s
members.
• Dominant culture is a product of
what is called national culture.
• Takes precedence over all other
cultures.
Subculture
• Mini-cultures found in
departments and divisions.
• Reflect the common problems or
experiences of employees who
reside in these areas.
• Consist of the core values of the
dominant culture as well as
values unique to the department
to which it relates
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12. Example: Dominant and Subculture Clash
• Hewlett-Packard putting up operations in India in late 1980s.
• Chief of the Asia Pacific region and the person in charge of the Indian
operations, curious about the cubical and railing in the entrance of the
plant.
• Frisking of employees was to be carried out in order to detect any
smuggling of valuable components, he was told. The chief, a Singaporean
by nationality, was aghast at these answers.
• Everywhere, HP stood by its credo- “Respect and Trust People”.
• “You will not letter the wall with the credo unless you pull out the railings.
You will not frisk anyone over here”’ shouted the chief. Finally, he had his
say and way. The railing was removed and the credo was put up .
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13. Subculture and Dominant Culture
Strong Culture
• Organization’s core values are both
intensely held and widely shared.
• Clear objectives
• High behavioral control
• Reduced employee turnover
• Unanimity of purpose builds
cohesiveness, loyalty, and
organizational commitment
• Less need for developing formal rules
and regulations.
Weak Culture
• Values shared by only a few people,
mostly the top management.
• No clarity in what is important.
• Low behavioral control
• Higher Turnover Rate
• Employees have little identification
with the culture. There are several
subcultures
• High need for formal rules and
regulations which are not as effective.
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Strong and Weak Cultures

14. Example: Strong Culture
Taj Hotel
11 Employees in Taj Hotel,
Mumbai lost their lives to save the
hotel’s guests in 2008.
ICICI Bank
During the merger with Bank of
Madura (2400 employees) in
2003, ICICI Bank (1600 employees)
was able to assimilate Bank of
Mudra.
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15. Disadvantages of a Strong Culture
Groupthink
Collective Blind Spots
Resistance to Change
Shirking from Innovation
Discouraged Diversity
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16. Challenges that Evoke Organizational Culture
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How the organization will
find a niche in and cope
with its constantly changing
external environment
Establishment and maintenance
of effective working relationships
among the members of an
organization.

17. Where does an OC Come From?
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Culture
Formation
around Critical
Incidents
Identification
with Leaders
Property Rights
Organizational
Structure
Organizational
Ethics
Characteristics
of People within
the Organization

18. Creating Culture
Founders hire and keep
only employees who
think and feel the same
way they do.
Founders indoctrinate
and socialize these
employees to their way
of thinking and feeling.
Founders’ own behavior
encourages employees
to identify with them
and internalize their
beliefs, values, and
assumptions.
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19. Sustaining Organizational Culture
Culturally Consistent Rewards
Managing the Cultural Network
Maintaining a Stable Workforce
Actions of Leaders and Founders
Selecting and Socializing Employees
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20. Socialization Process
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Individual comes with his own values > Encounter of expectations with reality > newcomers’
differences will be stripped away and replaced by standardized predictable behavior

21. In a nut shell: How Cultures Form
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The original culture derives from the founder’s philosophy and strongly influences hiring criteria as the firm
grows. Top managers’ actions set the general climate, including what is acceptable behavior and what is not.
The way employees are socialized will depend both on the degree of success achieved in matching new
employees’ values to those of the organization in the selection process, and on top management’s
preference for socialization methods.

22. Practices to Develop Culture
Hiring practices
• Conducting a cultural fit interview according to the vision and mission of the organization while
understanding the ideals of the applicant.
Orientation
• Employers must help newcomers become part of social network
Rewards and Recognition Programmes
• Put employees’ who personify company values in spotlight.
Performance Management Programmes
• Clearly outlining what is expected from employees as well as by providing a feedback tool that
informs employees about proper behavior
Communications
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23. Example
Google has created and communicated an exciting organizational culture.
The highly communicative work culture at Google offices worldwide fosters a
productivity and camaraderie fueled by the realization that millions of
people rely on Google results. Exciting and interesting celebrations such as
the Pajama Day, quarterly and annual off-sites, summer picnics give Googlers
a chance to get to know each other socially and have fun. The work
environment is laid back and gives google an edge over its competitors
because the employees are so committed.
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24. Global Implications
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All these dimensions are
different for different
countries. Most companies
conditions there managers
to be culturally sensitive.
For example: Individualism
is high in United States but
collectivism is high in china.
While, there is much higher
power distance in China as
compared to United States.

25. Implications for Managers
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26. Effects of Organizational Culture
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27. Thank You
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