1. Organizational Culture
Mission- operation or task ; clan- family; adaptability; bureaucratic – routine

2. What is Culture?
Organizational culture: the set of shared values and norms that controls organizational members’ interactions with each other and with people outside the organization
Taught to new members as the correct way to think, feel and behave
“The way we do things here” (McKinsey)

3. What is Culture? (cont.) Organizational culture exists at two levels
Organizational culture exists at two levels
Observable symbols
Underlying values

4. Levels of Corporate Culture
Observable Symbols
Ceremonies, Stories, Slogans,
Behaviors, Dress,
Physical Settings
Underlying
Values,
Assumptions,
Beliefs, Attitudes,
Feelings

5. Organizational culture
Characteristics
Culture represent a true “way of life” for organizational members, who often takes its influence for granted.
an organization’s culture become obvious only when it is contrasted with that of other organization or when it undergoes change
Because culture involves basic assumptions, values and beliefs, it tends to be fairly stable over time.
once a culture is well established, it can persist despite turnover among organizational personnel, providing social continuity

6. Companies with Strong Cultures
Wal-Mart – Associates—not employees—are recognized as the primary interface for customers at Wal-Mart. This concern for great customer service, combined with the hard work, produces strong loyalty and great performance.
12-3

7. Companies with Strong Cultures
Proctor & Gamble - P&G values staying focused on the customer and the firm revels in listening well to customers.
McDonald’s - Consistency in food and service; was a first in the fast-food industry and is now imitated by many others.
Nucor Corporation – This large U.S. steel producer is known for its concern for all employees, offering employees and senior executives alike the same perquisites and privileges.
12-2

8. Infosys The values that drive us: C-LIFE
Customer Delight: A commitment to surpassing our customer expectations.
Leadership by Example: A commitment to set standards in our business and transactions and be an exemplar for the industry and our own teams.
Integrity and Transparency: A commitment to be ethical, sincere and open in our dealings.
Fairness: A commitment to be objective and transaction-oriented, thereby earning trust and respect.
Pursuit of Excellence: A commitment to strive relentlessly, to constantly improve ourselves, our teams, our services and products so as to become the best.

9. Emergence of Culture
Emergence of culture is generally from a founder or early leader who articulates and implements certain values as a vision or business philosophy.
When these ideas and values led to success they become institutionalized and an organizational culture emerges that reflects the vision of the leader

10. “Organizational culture, is the pattern of basic assumptions that a given group has invented, discovered, or developed in learning to cope with the problems of external adaptation and internal integration – a pattern of assumptions 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 these problems” (Schein, 1983)

11. Emergence and Purpose of Culture
Provides sense of organizational identity
Two critical functions in organizations:
To integrate members so they know how to relate to one another
To help organization adapt to external environment
Internal Integration – collective identity and know how to work together
External Integration – how the organization meets goals and deals with outsiders

12. How do you read a culture?
Symbols
Objects, Physical artifacts, uniforms that convey some larger meaning
What meaning Google Headquarter Convey?

13. How do you read a culture?
Google had an informal work culture at Googleplex (its headquarters)
Both Larry and Sergey wanted to make Google a fun place to work
Believe in open communication across the organization
“We try to provide an environment where people are going to be happy”

14. How do you read a culture?
Language
Words or phrases that are commonly used to remind those inside and outside the firm – to emphasize its main value
Disney carefully chooses the words it uses to describe nearly everything
No customers, only “guests”
“cast members” – not employees
“Go on stage” (to work)
“costumes” (not uniforms)
Helps convey to cast members that they’re in the entertainment business

15. How do you read a culture?
Rites and Ceremonies
Rites and rituals are set of activities that are used over and over again at special times to emphasize key organizational values

16. Organizational Rites

17. How do you read a culture?
Stories
Stories about the boss, the founder of the company, a crisis –the firm overcame, employees getting fired and new ones being hired
Particular set of stories can reveal a great deal about its values and assumptions
Stories keep alive the primary values of the organization and provide shared understanding among all employees

18. Organizational Chart for Nordstrom
Organizational Chart for Nordstrom
Nordstrom’s structure reflects the emphasis the department store chain puts on empowering and supporting lower-level employees.

19. How Do You Keep A Culture Going?
Selection of New People
Socialization: Learning the Ropes
Evaluation/Rewards: Putting Your Money Where your Culture is
Culture by example: Behavior can speak louder than visions

20. How Do You Keep A Culture Going?
Selection of New People
Concerned with how well the candidates will fit into the organization.
Provides information to candidates about the organization.
Procter & Gamble requires an intense and exhaustive screening process even for entry level positions.
The interviewers are carefully chosen and highly trained.
Core values are the theme in interviews and applications face an extensive battery of employees meeting and general tests. The idea is to compare notes with others to see if the candidate is P & G Material

21. Top Reasons to work For Google
Hot award winning technology
Intelligent, fun, high-energy teammates
Great culture and amazing perks such as massage therapy and all the snacks you can eat
Free lunches served daily
Start-up environment with excellent benefits
Stock options
Spacious, colorful, fun work environment
Located in the heart of Silicon valley
Millions use Google- your ideas will make a difference

22. Qualities Sought in Googlers
People with broad knowledge and expertise in many different areas of computer science and mathematics
People with world-class programming skills
People with excellent communication and organizational skills
People who are passionate about their work and great colleagues
People who enjoy working in a high-energy, unstructured environment on very small project team to build amazing product used by millions of people every day
People with diverse interest and skills

23. How Do You Keep A Culture Going?
Socialization: Learning the Ropes
the process by which members learn and internalize the values and norms of an organization’s culture

24. Steps in Socialization
7. Role model to sustain culture
6. Rituals, taboos, rites, and stories to reinforce culture
5. Adoption of cultural value policies
Removal of employees who deviate from culture
4. Rewards that sustain the culture
3. Training to develop capabilities consistent with culture
2. Challenging early work assignments
Removal of candidates who do not “fit” culture
1. Careful selection

25. Evaluation/Rewards: Putting Your Money Where your Culture is
Changes in reward system leads to change in culture of org;
Mgrs consciously & unconsciously disseminate values by the choice they make concerning
what kinds of performance to reward and how generously to reward it;

26. Relationship of Environment and Strategy to Corporate Culture
Corporate culture should reinforce the strategy and structural design that the organization needs to be effective within its environment.
A complementary relationship among cultural values, organizational strategy and structure, and the environment can enhance organizational performance.

27. Relationship of Environment and Strategy to Corporate Culture
Needs of the Environment
Flexibility
Stability
External
Adaptability
Culture
Mission
Culture
Strategic Focus
Clan
Culture
Bureaucratic
Culture
Internal
Sources: Based on Daniel R. Denison and Aneil K. Mishra,
“Toward a Theory of Organizational Culture and Effectiveness,”
Organization Science 6, no. 2 (March-April 1995): ; R.
Hooijberg and F. Petrock, “On Culture Change: Using the Company
Values Framework to Help Leaders Execute a Transformational
Study,” Human Resource Management 32 (1993): 29-50; and
R. E. Quinn, Beyond Rational Management: Mastering the Paradoxes
And Competing Demands of High Performance (San Francisco:
Jossey-Bass, 1988).

28. Relationship of Environment and Strategy to Corporate Culture
The Adaptability / Entrepreneurial Culture
the company actively creates change. Innovation and risk-taking are rewarded.
Success means having unique and new products or services and being a product and market service leader

29. Relationship of Environment and Strategy to Corporate Culture
The Mission/Market Culture
The organization is very results orientated. A major concern is getting on with the job.
Success is defined in terms of market share and penetration

30. Relationship of Environment and Strategy to Corporate Culture
The Clan Culture
Need of employees as a route to high performance
Important value – team work, participation and consensus
The organization defines success on the basis of the development of human resources, teamwork, employee commitment and concern for people.

31. Relationship of Environment and Strategy to Corporate Culture
The Bureaucratic Culture/Hierarchy Culture
Long-term concerns are stability, predictability and efficiency
Formal rules and policies hold the organization members together
The organization defines success on the basis of efficiency. Dependable delivery, smooth scheduling