OB lecture 9 organizational culture

Elements of Organizational Culture Physical Structure Language Rituals and Ceremonies Symbols Shared Values Shared Assumptions How Organizational culture is formed Types of Cultures Performance ManagementChange Management

Lecture 9 Organizational Culture

http://www.scribd.com/doc/20631 781/Organization-Culture-and-its- Impact-on-Business-Performance

How we will do the assignment

Application of Theory:

1.Find a case

2.Use a case study

The set of shared attitudes, values, goals,

and practices that characterizes an

institution, organization or group.

1 (national) culture - culture of the people

religion, language, practices

2 Organizational culture / Corporate culture (text book 102 – 113)

Culture influences work ethics

Outlier – The Story of Success

The 1,000 hours rule

The Paddy Field Planting People

It is a shame to do Planting

Alexis de Tocqueville

Is it ingrained in the Cultural ?

Poverty in India

Corruption in China

Application of Culture in International Business

Research by Geert Hofstede

1.Individualism / Collectivism 2.Power Distance

3.Uncertainty Avoidance

4.Quantity vs Quality of Life

Geert Hofstede Cultural Diversity, 1983

Country Individualism

Collectivism

Power Distancee

Uncertainty Avoidance Quantity of lifeUSA Individual Small Low

Elements of Organizational Culture

Physical StructureLanguageRituals and Ceremonies

Symbols

Shared ValuesShared Assumptions

We can decipher the culture by visiting, seeing and talking,

Hidden Visible

“To provide academic programs of the highest quality

and standard to help fulfill individual dreams and

ambitions, regardless of their origin”

Our beliefs

Quality, Integrity, Innovation, Customer, Staff

Enacted value may not be Espoused Value

Shared Assumptions

e.g.

1 Happy Family View

Conflict View (Members battles for

limited resources, status, rewards, or professional

values)

2 Risk Taking - success will be rewarded

Making the minimum error

How Organizational Culture is formed

1 Founder or strong leader

2 Characteristics of workforce

sex, age, nationalities

3 Economic conditions

4 Industry

How Organizational culture is

formed

Recruitment 1 attraction

2 selection

3 attrition Cultural fit

3 Role Management /Metamorphosis

(productive, commitment, or turnover)

Types of Cultures

Charles HandyProfessor at London Business School

Gods of Management

He uses 4 geek gods to represent culture

1.Zeus - Power Culture

2.Apollo - Role Culture

3.Athena - Task Culture

4.Dionysus - Personal

Text Book Page 106 to 109

Gods of Management

Charles Handy’s Gods of Management

(I have read the work) provides models

which an organization culture can be

Easily identified.

However, his work is not popular or cited outside the

UK ( I have read US or Australian text books citing

his work.

Power Culture

Power is concentrated in a one or few

persons and radiates out from the centre, to

others in departments, functions or units

which have to implement It is difficult for

others outside the ‘family network’ to

influence events

Organization of the power culture can move

very quickly However, the success of

power culture depends on the ability and

perception of the few

The Web

Power - Zeus

Drucker described Ford Motors

ran by the founder Henry Ford in

a style similar to Power culture

Ford Motors ran into problem after Henry Ford

In such culture, there is no management

in which professional managers perform:

Functions of Management – Henri Fayol

See your text book page 9

Zeus

Role Culture

A Greek temp , the apex of the temple is where

the decision making takes place, the pillars of

the temple reflect the functional units of the

organization which have to implement the

decisions from the apex

The strength of the culture lies in specialization

within its pillars Organization runs by job

descriptions, procedures, rules and systems

This is very much Co-ordination is by a narrow

band of senior staff

Performance beyond the role prescription is not

required or encouraged.

Greek Temple

Role Culture - Apollo

ApolloRule Based

It looks like our ‘Functional Structure’

Task Culture

Net

Information and expertise are the skills that

are of value here The culture is represented

best by a net

There is close liaison between departments,

functions and specialities, liaison,

communication and integration are the

means whereby the organisation can

anticipate and adapt to change quickly

Influence in this team culture is based upon

expertise and up-to-date information where

the culture is most in tune with results The

dangers for this culture exist when there is a

restriction in resources causing it to become

more power’ or ‘role’ orientated

Task Culture - Athena

Athena

Athena - Goddess of Wisdom

It looks like Team structure

Used in advertising agency

Personal Culture

Cluster

It services the needs of the

individuals within the structure

e.g in a committee, law firm, or

universities

It rejects formal hierarchies for

‘getting things done’ and exist

solely to meet the needs of their

members

Personal Culture - Dionysus

Manager, as administrator, has

little power in the organization

Law firm, university

Culture is one of the most precious things

an organization has So you must work hard on

it than any other things.

Herb Kelleher

Founder of SouthWest Airlines

Culture is a barrier to change.

It makes change management one of the

most challenging task.

Performance Management

Change Management

A

EF

D

CB

“System”, very difficult to move

Plan Crashed at KAL !

Changing culture by making English the working language

Culture as Liability

• Barrier to Diversity

Lack of diversity lack to group thinking

Culture as Liability

Culture is a major issue Mergers and

Acquisitions

Incompatibility in culture is the major

reason failure of mergers and acquisitions.

• Acquire company without strong culture

• Keeping a distance

Change Culture is Difficult

Change Culture comes last

John Kotter Harvard University

He may have made a mistake by attempting to change culture first, starting with Glasnost

Mikhail Gorbachev

Glasnost - openness

Perestroika – restructuring

Change Culture Comes Last

Changing culture is difficult.

1 Establish success measurable success first

1 Change people – Retirement package.

2 Ensure new recruits are not screened according to old culture

3 Promote people who embrace the new culture

End