Organizational Culture and Organizational Climate
Transcript of Organizational Culture and Organizational Climate
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Organizational Culture, &
Organizational Climate
Dr. Govind Swaroop Pathak,Professor,
Department of Management Studies,
Indian School of Mines Dhanbad
Dhanbad
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Organizational Culture
Shared values and beliefs thatunderlie a companys identity
What types of organizationalcultures have you worked in?
How does the organizationsculture manifest itself?
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Understanding Organizational Culture
Antecedents
Founders values
Industry & businessenvironment
National culture
Senior leadersvision and behavior
OrganizationalStructure &
Practices
Reward systems
Organizationaldesign
OrganizationalCulture
Observable artifacts
Espoused values
Basic assumptions
Group & SocialProcesses
Socialization
Mentoring
Decisionmaking
Groupdynamics
Communication
Influence &
empowerment Leadership
OrganizationalOutcomes
Effectiveness
Innovation &stress
Collective
Attitudes &Behavior
Work attitudes
Job satisfaction
Motivation
Figure 3-1
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Layers of Organizational Culture
Observable artifacts
Examples?
Values enduring belief in a modeor conduct or end-state
Difference between espoused andenacted?
Basic Assumptions
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Four Functions of Organizational Culture
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Three Types of Cultures
Constructive
Passive-defensiveAggressive-defensive
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Constructive Culture
Constructive Cultureemployees are encouraged to interact withothers and to work on tasks and projects that will assist in satisfying theirneeds to grow and develop
High priority on constructive interpersonalrelationships, and focus on work groupsatisfaction
Affiliative
Participative, employeecentered, and supportive
Humanistic-encouraging
Value self-development andcreativity
Self-actualizing
Goal and achievementoriented
Achievement
Organizational CharacteristicsNormative Beliefs
Table 3-1
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Passive-Defensive Culture
Passive- Defensive Cultureoverriding belief that employees mustinteract with others in ways that do not threaten their job security
Negative reward system and Defensive avoidaccountability
Avoidance
Nonparticipative, centralized decision making,and employees do what they are told
Dependent
Conservative, bureaucratic,and people follow the rules
Conventional
Avoid conflict, strive to beliked by others, and approvaloriented
Approval
Organizational CharacteristicsNormative Beliefs
Table 3-1
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Aggressive-Defensive Culture
Aggressive-Defensive Cultureencourage employees toapproach tasks in forceful ways in order to protect their statusand job security
Perfectionistic, persistent, and hard workingPerfectionistic
Winning is value and a win-
lose approach is usedCompetitive
Nonparticipative, take chargeof Defensive subordinates,
and responsive to superiors
Power
Confrontation and negativismrewarded
Oppositional
Organizational CharacteristicsNormative Beliefs
Table 3-1
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Embedding Culture in Organizations
Formal statements or organizationalphilosophy
Design of physical space
Slogans, language, acronyms, sayings
Deliberate role modeling, training
Explicit rewards, status symbolsStories, legends, myths
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Embedding Culture in Organizations
Leader reactions to critical incidentsWorkflow and organizational structure
Organizational activities, processes, oroutcomes leaders attend to
Organizational systems and procedures
Organizational goals and criteria formanaging human resources
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Organizational Socialization
Phases Perceptual andSocial Processes
1) Anticipatorysocialization learningthat occurs prior tojoining the
organization
Anticipating realities aboutthe organization and the new
job
Anticipating organizationsneeds for ones skills andabilities
Anticipating organizationssensitivity to ones needs andvalues
Figure 3-4
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Organizational Socialization
Phases Perceptual andSocial Processes
2) Encounter values,skills, and attitudesstart to shift as newrecruit discoverswhat theorganization is trulylike
Managing lifestyle-versus-work conflicts
Managing intergroup roleconflicts
Seeking role definition andclarity
Becoming familiar with task
and group dynamics
Figure 3-4
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Organizational Socialization
Phases Perceptual andSocial Processes
3) Change andacquisition recruitmasters skills androles and adjusts towork groups valuesand norms
Competing role demands areresolved
Critical tasks are mastered
Group norms and values areinternalized
Figure 3-4
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Organizational Socialization
Phases
1) Anticipatory socialization
2) Encounter
3) Change and acquisition
Outsider
Behavioral Outcomes
Performs role assignments Remains with organization
Spontaneously innovates and
cooperates
Socialized InsiderAffective Outcomes
Generally satisfied Internally motivated to work
High job involvement
Figure 3-4
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Socialization Tactics
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Contrasting Organization
CulturesOrganization A Organization BManagers must fully documentall decisions.
Creative decisions, change, and risks
are not encouraged.Extensive rules and regulations existfor all employees.
Productivity is valued over employeeMoralemorale.Employees are encouraged to stay
within their own department.
Individual effort is encouraged.
Management encourages andrewards risk-taking and change.
Employees are encouraged to
run with ideas, and failures aretreated aslearning experiences.
Employees have few rules andregulations to follow.
Productivity is balanced with treatingits people right.
Team members are encouraged to inter
with people at all levels and functions.Many rewards are team based.
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Cultures Functions
Social glue that helps hold an organization together
Boundary-defining
Conveys a sense of identity for organization membe
Facilitates commitment to something larger than onindividual self-interest
Enhances social system stability
Serves as a sense-making and control mechanism
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Do Organizations HaveUniform Cultures?
Organizational culture represents a commonperception held by the organization members.
Core values or dominant primary values areaccepted throughout the organization.
Dominant culture
Subcultures
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Conditions for Culture Change
A dramatic crisisTurnover in leadership
Young and small organizations
Weak culture
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Lewins Three-Step Change Model
RefreezingMovingUnfreezing
Ch I A P
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Change Is A ProcessOf Transition
PRESENTSTATE
TRANSITIONSTATE DESIRED
STATE
Unfreezing Occurs Refreezing Occurs
Driving Forces Restraining Forces
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Culture As A Liability
Barrier to Change
Barrier to Diversity
Barrier to Mergers and Acquisitions
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Emerging Trends In Work Culture
Open office layouts
Fostering Teams
Flexi-time work systems
Emphasis on qualityEquitable treatment of employees
Emphasis on Talent Retention
Advent on computers as a way of life
Performance Appraisal
HCL
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HCL
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A Glimpse At Work Place Of HCL
Participative Style adopted by management Innovative
Team work
Zero Defect Policy Relationship building
Congenial Environment
Challenging tasks Reward and Recognition
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Mr. HCL
Mrs. HCL
Psychological Climate
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Psychological ClimateOrganizational Climates
Are created by SHAREDpsychological climates
It is the employeesPERCEPTION of the workenvironment and not the
environment that is important
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Definitions of Culture
The shared values, beliefs, andbehavioral norms in an organization(Ouchi, 1981)
The social process by whichmembers share their values, beliefs,and norms
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Culture describes the social
context of the workenvironment
Climate describes thepsychological impact of the
work environment
Why are climate and culture
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Why are climate and culture
important?
The success of Human Servicesorganizations generally depends onthe relationships and interactions
between service providers andservice recipients. Theserelationships are central to the
quality and outcome of services.
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The Big Debate
CULTURE CLIMATE
Shared value developd ovr time * Environmental Characteristics
Less Easily change * More Easily Changed
Perceptions of Underlyng Values * Perceptions of Observable
practices More Dynamic * More Static
Created * Experienced
Sociology & Anthropology * Psychology
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How do we differentiate?
(According to Landy) CLIMATE:
Created at lower levels of the organization thecontext in which action occurs
CULTURE:Created and Communicated from higher levels in theorganization (e.g., Senior Executives) the meaningintended by and inferred from the actions
H d diff ti t
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CLIMATE
Refers to current situation inan organization
Climate is often defined asthe Recurring patterns ofBehavior attitudes andfeelings that characterize lifein the organization.
Climate often proves easier toassess and change
CULTURE
Refers to the Historical &Tradition of the organization.
Organizational cultures aregenerally Deep & Stable
Culture of an Organization isnot that easy to change
How do we differentiate
C lt A d Cli t
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Culture And Climate
We can compare Organizational culture and climate to personalityand mood. The former is enduring; the latter is temporary. Weacquire our basic personalities early in life, but our mood can shiftseveral times in one day.
Although organizational culture endures like Personality, it is easierto change. Climate is variable like mood and is just as important ashuman feelings
f &
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The Role of Norms & Values
The norms and values that drive serviceproviders behavior and communicatewhat is valued in organizations and the
shared perceptions that influence serviceprovider attitudes create a social andpsychological context that shapes tone,content, and objectives of the service, inthe case of Service Organizations.
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How Does Climate Develop orChange?
I di id l Diff
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Individual Differences
Administrators use selective hiringand firing as means of eithermaintaining existing norms or
changing them.Individual perception is consistentacross work environments - Positive
or negative views carry from oneworkplace to another.
Importing Climate and Culture From
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Importing Climate and Culture From
the External Environment
Organizations adopt ways fromother organizations with whichthey compete or cooperate.
Organizational mimicry- normsof one organization adopted in
effort to emulate success.
mpac o rgan za ona es gn:St t T h l & L d hi
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p g gStructure, Technology & Leadership
Structure, core technology, andleadership describer the patterns ofinteraction between practitioners,
interaction of practitioners andclients and administrations style of
governance.
St t I t
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Structure Impacts:
Flexibility, approval seeking, risk taking andinnovation
Highly centralizes structure restricts participation indecision making
Highly formalized division of labor with strictprocedures place little value on flexibility andinnovation
L d hi I t
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Leadership Impacts
Manipulation of culture is an essential function ofleadership
Values in practice are often those of the leader
Symbolic acts are important
Leadership shapes perception of fairness and support
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How Are Climate & Culture
Maintained in an Organization?
The Need for Certainty
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The Need for Certainty
Organizations abhor uncertaintyCertainty is engendered by sharingcommon ideas about the way thingsget done
Culture contributes to certainty in
through shared norms and values
The Need for Power
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The Need for Power
Power is distributed both formally and informallythrough processes of conflict that lead to a negotiatedorder.
Many have an investment in maintaining existingnorms to maintain power base.
Mergers, reorganizations and new administrations areare opportunities for culture change.
Transferring Climate and Culture to
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New Employees
New employees are socialized into the culture andclimate of their work group or they resign.
Employee selection is important in maintainingexisting cultures and climates.
More experienced, competent hires may import newnorms, values and perceptions.
Conclusion
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Conclusion
Organizational climate and cultureare important to any Organizationlbecause they provide the critical
links between Organizationalcharacteristics and Organizational
outcomes.