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Organizational Culture:

Organizational Culture Presented By: Asha Vijay T. Roll No: 11 3 rd Semester MBA Full Time, School Of Management Studies

Organisational Culture:

Organisational Culture Every organisation has some characteristics which are common with any other organisation. At the same time, each organisation has its unique set of characteristics and properties. This Psychological structure of organisation and their subunits is usually referred to as Organisational Culture. “Organisational culture is a relatively uniform perception held of the organisation, it has common characteristics, it is descriptive, it can distinguish one organisation from another and it interrelates individual, group and organisation system variables” Stephen P. Robbins

Organisational Culture Continues……:

Organisational Culture Continues…… Just as one have a personality , a set of relatively stable traits, so does an organisation. Just as how each member should behave with a fellow member or outsider, similarly each organisation has a culture that influences the behaviour of employees towards clients, competitors, colleagues, supervisors, subordinates and strangers In short Organisational Culture can be defined as “A system of shared meaning held by members that distinguishes the organisation from other organisations” It is Composed of seven key characteristics

Seven Characteristics of Organizational Culture:

Seven Characteristics of Organizational Culture Innovation and Risk Taking Attention to Detail Outcome Orientation People Orientation Team Orientation Aggressiveness Stability

Importance of Organizational Culture:

Importance of Organizational Culture It is contended that organizational culture acts as a system of social control and can influence employees’ attitudes and behaviours through the values and beliefs operating in a company. Organizational culture has been shown to have a direct influence on staff satisfaction and commitment. It holds the organization together and encourages employees not only to perform well but also to feel committed to the organization. Although organizational culture is implicit in organizational activities, researchers have proved that organizational culture does affect performance and efficiency.. Organizational culture has been studied in relation to major organizational ideas and activities like creativity and innovation and knowledge transfer.

Culture’s Five Basic Functions:

Culture’s Five Basic Functions Defines Boundaries Conveys a Sense of Identity Generates Commitment Beyond Oneself Enhances Social Stability Sense-making and Control Mechanism

Stories, Ceremonies, and Organisational Language:

Stories, Ceremonies, and Organisational Language The cultural values are often evident in the stories, ceremonies and language found in the organisation . Organization rites Rites of passage: mark an individual’s entry to, promotion in, and departure from the organization Rites of integration: shared announcements of organizational success, office parties and cookouts Rites of enhancement: public recognition and reward for employee contributions

Organisational Rites:

Organisational Rites

Where Does Organisational Culture Come From?:

Where Does Organisational Culture Come From? Comes from interaction of four factors: The personal and professional characteristics of people within the organisation Organisational ethics The property rights that the organisation gives to employees The structure of the organisation

Where an Organization’s Culture Comes From:

Where an Organization’s Culture Comes From

Where Does Organisational Culture Come From? (cont.):

Where Does Organisational Culture Come From? (cont.) Characteristics of people within the organisation Through a process of hiring people that match existing culture and attrition, people become more and more similar over time Organisational ethics The moral values, beliefs, and rules that establish the appropriate way for organisational stakeholders to deal with one another and with the environment Derived from the personality and beliefs of the founder and top management

Factors Influencing the Development of Organizational Ethics:

Factors Influencing the Development of Organizational Ethics

Where Does Organizational Culture Come From? (cont.):

Where Does Organizational Culture Come From? (cont.) Property rights: rights that an organization gives to members to receive and use organizational resources The distribution of property rights to different stakeholders determines: How effective an organization is The culture that emerges in the organization

Common Property Rights Given to Employees:

Common Property Rights Given to Employees

Where Does Organizational Culture Come From? (cont.):

Where Does Organizational Culture Come From? (cont.) Property rights (cont.) Top managers are in a strong position to establish the terms of their own employment and the property rights received by others Changing property rights changes the corporate culture by changing the instrumental values that motivate and coordinate employees Strong property rights may harm the organization

Where Does Organizational Culture Come From? (cont.):

Where Does Organizational Culture Come From? (cont.) Organizational structure Mechanistic vs. Organic Mechanistic – predictability and stability are desired goals Organic – innovation and flexibility are desired end states Centralized vs. Decentralized Centralized – reinforces obedience and accountability Decentralized – encourages and rewards creativity and innovation

Can Organizational Culture be Managed?:

Can Organizational Culture be Managed? Changing a culture can be very difficult Hard to understand how the previous four factors interact Major alterations are sometimes needed Some ways culture can be changed: Redesign structure Revise property rights used to motivate people Change the people – especially top management

Social Responsibility:

Social Responsibility Social responsibility : refers to a manager’s duty or obligation to make decisions that nurture, protect, enhance, and promote the welfare and well-being of stakeholders and society as a whole Approaches to Social Responsibility Obstructionist approach : the low end of the organization’s commitment to social responsibility Managers choose to behave unethically and illegally Defensive approach : a minimal commitment to ethical behavior Managers attempt to stay within the law but do not attempt social responsibility beyond what is required by law

Approaches to Social Responsibility (cont.):

Approaches to Social Responsibility (cont.) Accommodative approach : the acknowledgment of the need to support social responsibility Managers want to make the right choices when called on to do so Proactive approach : actively embrace the need to behave in socially responsible ways Managers go out of their way to learn about the needs of different stakeholder groups Willing to utilize organizational resources to promote the interests not only of stockholders, but of other stakeholders

Approaches to Social Responsibility:

Approaches to Social Responsibility

Why Be Socially Responsible?:

Why Be Socially Responsible? Workers and society benefit directly because organizations bear some of the costs of helping workers Quality of life as a whole would be higher as a climate of caring is encouraged It is the right thing to do Companies that act responsibly toward their stakeholders benefit from increasing business and see their profits rise

Why Be Socially Responsible? (cont.):

Why Be Socially Responsible? (cont.) Whistle-blower : a person who reports illegal or unethical behavior Takes a stand against unscrupulous managers or other stakeholders Evidence suggests that managers who behave socially responsible will, in the long run, benefit all organizational stakeholders

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