Building Organizational Culture

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Building Organizational Culture

• Pankaj Kumar
• IIM, Lucknow

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Issues of Concern

• Meaning of Organizational Culture
• Measuring Organizational Culture
• Building Organizational Culture

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Do you really know your Organizations
Culture ? What 10 words would you use to
describe your company? Around here what
is really important? Around here who gets
promoted? Around here what behaviours get
rewarded? Around here who fits and who does
not?
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The Meaning Content

• No Universal Definition.
• Various Conceptual Frameworks.
• Dimensions of OC.

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Schein (1985) a pattern of basic
assumptions-invented, discovered or developed by
a given group as it learns to cope with its
problems of external adaptation and internal
integration-that has worked well enough to be
considered valid and, therefore, to be taught to
new members as the correct way to perceive, think
and feel in relation to those problems.
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Pareek (1995) a cumulative preference
of some states of life over others (values), the
predispositions concerning responses towards
several significant issues and phenomena
(attitudes), organized ways of filling time in
relation to certain affairs (rituals), and ways
of promoting desired behaviours and preventing
undesirable ones (sanctions).
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VisionMissionGoals
ObjectivesStrategiesStructureCultureBehavi
ourPerformance
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Artifacts creation Technology Arts Visible
Audible Behavior Patterns
Visible but often not decipherable
Values
Greater levels of awareness

Basic Assumption Relationship to
environment Nature of reality Time Space Nature
of Human activities Nature of Human Relationship
Taken for granted Invisible preconscious
Levels of Culture and its interaction
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Developing OC involves Developing a
strong corporate identity Development of
important values Building healthy
traditions Developing consistent management
practices
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Cultural aspect of HRD concerned with
Development of Appropriate OC Creating
conducive Org. Climate Improving
Communication Evolving effective reward system

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Strong Corporate Identitydevelops when
employees have a sense of belonging, and feel
proud of working with the organization, which
develops as a result of interaction of employees
with the organization. Developing an
attractive Induction Booklet Films on success
experiences in the organization Company
newsletters Mobility of People
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Developing important valuesValues of
excellence and human consideration develop only
by demonstrating these values in action.
Surveys of Values and differences b/w espoused
v/s practiced values Special value orientation
programmes Examining the various systems
operating in the organization Special OD
intervention in Cooperation and Collaboration
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Building Healthy traditions
practicesTraditions are built in org. on the
basis of important Functional rituals or
celebrations Induction programme for new
entrant Promotions as transition Ritual
associated with old age and retirement
Exceptional behaviour Celebration of special
individual important organizational days
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Types Autocratic or feudal culture is
characterized by centralized power
concentrated in a few persons, and observation
of proper protocol in relation to the person/s
in power. Bureaucratic culture is characterized
by primacy of procedures and rules, hierarchy
and distant and impersonal relationship.
Technocratic culture emphasizes technical /
professional standards and improvement.
Entrepreneurial culture in concerned about
achievement of results and providing excellent
services to the customers.
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Profile of OCCultures Focus
Climate EthosAutocratic/ Proper
Dependency All opposite Feudal
Protocol Affiliation
values of

OCTAPACEBureaucratic Rules Control
safe playing,
Regulations Dependency inertia,
conflict

closedTechnocratic Perfection Expert
power proaction,
Extension autonomy,

collaboration,

experimentationEntrepreneurial/
Results, Achievement OCTAPACEDemocratic/
Customers ExtensionOrganic
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ACQUIRE Basic new knowledge, facts,
skills, process, concepts, values and beliefs
etc..
TEST Implications of concepts in new situations
EMBED New knowledge through reflection and
practice
INTEGRATE New facts into existing concepts
and generalization
Learning Culture Model
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Building Culture

• Recruitment and selection.
• Socialization.
• Performance Evaluation.
• Leadership. - Employee Motivation Decision
  Making
• Compensation Packages.
• Grievance Handling.
• Conflicts Differences handling.
• Discipline Morale
• Career Planing and Development

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Measuring Organizational Culture

• Quantitative
• Questionnaire Survey
• Qualitative
• Depth Interview
• Clinical Intervention
• Analyzing Visual Artifacts.
• Analyzing stories, rituals and myths.
• Participant Observation.

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Changing Culture Understand the
environmental other forces that will influence
your future strategy Determine what are the
core values that have been fundamental to your
business identity, core purpose success and
that you will not compromise Create a shared
vision of what the company needs to become
Assess the existing culture determine what
elements of culture need to change
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Determine what changes need to
occur to implement strategy and address the
gaps Define the role of senior management in
leading the culture change Craft an
implementation plan with targets of intervention,
time lines, milestones accountabilities
Communicate the need for change and plan for
change and create motivation and buy in among key
stake holders
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Identify obstacles and sources of
resistance and develop strategies for getting
around them Institutionalize, model and
reinforce the changes in culture Continually
reassess the organizations culture and establish
a norm of continuous learning and transformation
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Organizational Climate Ethos
Achievement (concern for excellence) Expert
Power (concern for impact through
expertise) Extension (concern for relevance to
larger goals and entities) Control (concern
for orderliness) Affiliation (concern for
maintaining good personal relations)
Dependency (concern for approval maintenance
of hierarchical order) OCTAPACE
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Constituents of OC Determinants
Dimensions- Societal Culture
-Visual Artifacts- Shared
learning from - Values shared history -
Leadership -
Rituals- Consistent Mgt. practices -
Stories Myths- Structural Stability -
Assumptions Consequences
- Performance
- Behaviour