Building Organizational Culture
Pankaj Kumar
IIM, Lucknow
Issues of Concern
• Meaning of Organizational Culture
• Measuring Organizational Culture
• Building Organizational Culture
Do you really know your
Organization’s 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?
The Meaning & Content
• No Universal Definition.
• Various Conceptual Frameworks.
• Dimensions of OC.
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.”
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).”
Vision
Mission
Goals & Objectives
Strategies
Structure
Culture
Behaviour
Performance
Artifacts & creation
Technology
Arts
Visible & Audible
Behavior Patterns
Values
Basic Assumption
Relationship to environment
Nature of reality
Time & Space
Nature of Human activities
Nature of Human Relationship
Visible but often not
decipherable
Greater levels of
awareness
Taken for granted
Invisible
preconscious
Levels of Culture and its interaction
Developing OC involves
* Developing a strong corporate identity
* Development of important values
* Building healthy traditions
* Developing consistent management practices
Cultural aspect of HRD
concerned with
* Development of Appropriate OC
* Creating conducive Org. Climate
* Improving Communication
* Evolving effective reward system
Strong Corporate Identity
develops 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
Developing important values
Values 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
Building Healthy traditions &
practices
Traditions 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
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.
Profile of OC
Cultures
Focus
Autocratic/
Feudal
Proper
Protocol
Climate
Ethos
Dependency+ All opposite
Affiliation
values of
OCTAPACE
Bureaucratic Rules &
Control +
safe playing,
Regulations Dependency inertia, conflict
& closed
Technocratic Perfection
Expert power proaction,
+ Extension autonomy,
collaboration,
experimentation
Entrepreneurial/ Results,
Achievement OCTAPACE
Democratic/
Customers +Extension
Organic
ACQUIRE
Basic new knowledge, facts, skills,
process, concepts, values and beliefs etc..
TEST
EMBED
Implications of
concepts in new
situations
New knowledge through
reflection and practice
INTEGRATE
New facts into existing concepts and
generalization
Learning Culture Model
Building Culture
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Recruitment and selection.
Socialization.
Performance Evaluation.
Leadership. - Employee Motivation & Decision
Making
Compensation Packages.
Grievance Handling.
Conflicts & Differences handling.
Discipline & Morale
Career Planing and Development
Measuring Organizational Culture
• Quantitative
• Questionnaire & Survey
• Qualitative
• Depth Interview
• Clinical Intervention
• Analyzing Visual Artifacts.
• Analyzing stories, rituals and myths.
• Participant Observation.
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
# 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
# Identify obstacles and sources of resistance and
develop strategies for getting around them
# Institutionalize, model and reinforce the changes in
culture
# Continually reassess the organization’s culture and
establish a norm of continuous learning and
transformation
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
Constituents of OC
Determinants
- Societal Culture
- Shared learning from
shared history
- Leadership
- Consistent Mgt. practices
- Structural Stability
Consequences
- Performance
- Behaviour
Dimensions
-Visual Artifacts
- Values
- Rituals
- Stories & Myths
- Assumptions