How culture of an organisation influence the external and internal environement of a business firm

1. ORGANISATION
CULTURE
PRESENTED BY
MOHD. AAMIR
PM/2014/406
NIPER, HYDERABAD
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2. WHAT IS ORGANISATIONAL CULTURE?
 A common perception that is held by the members associated to the
organization.
 There is also something that is called a subculture which is the miniculture
within the organization that is defined by the department designation and
geographical separation.
 A strong culture is the one in which company’s core values (primary values)
are strongly held and discussed.
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3. Origins of Organizational Culture
 Origins lies with:
 The founder who got strong values and vision
 External environment for example : Customer demand.
 Nature of the work and mission and the goals of the organization
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4. Typical American Organizational
Culture
 U.S. company’s decision making is quick.
 Contribution of individual is very important as linked to company goals
 Focus on Return On Investment (ROI) or the end result.
 Even if they are not sure, they make sure to complete the task given.
 U.S. is multicultural, which means there are so many different way to think.
 The meetings are fewer and less time.
 Contacting clients by email or on the phone more natural in conducting
business
 Work-Life balance is a must.
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5. Typical Japan organizational culture
 Decision making is in stages, cautious and conservative backed by
meetings and documentation.
 Require individual contribution to the whole group.
 Japanese also focus on ROI, however, they emphasize the process on how
to get there.
 If the Japanese feel that it’s possible to achieve most likely 100%, they don’t
say “Yes”.
 Basically a Japanese company is organized by Japanese.
 Meetings are very common in large companies.
 They don’t permit working at home.
 In Japan, priority is on the work life. It is given work is the center of life.
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6. Theory Z of William G. Ouchi
 Sociological description of the humanistic organization
 Based on both American and Japanese style of management.
 This theory can lead to :
 greater employee job satisfaction,
 lower rates of absenteeism
 Higher quality products.
 Better overall financial performance for U.S. firms adapting It.
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7. Features of Theory Z
Long term employment :
Employees should not be
treated as replaceable cogs
in profit making machinery.
Companies should make life
long commitment to them
and expect loyalty.
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8. Consensual Decision
Making
The Type Z organization
emphasizes communication,
collaboration, and consensus
in decision making
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9. INDIVIDUAL RESPONSIBILITY
Type Z organizations retain
the emphasis on individual
contributions that are
characteristic of most
American firms by
recognizing individual
achievements
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10. INFORMAL CONTROL WITH
FORMAL ORGANIZATIONS
The Type Z organization relies
on informal methods of control,
but does measure
performance through formal
mechanisms.
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11. MODERATELY SPECIALIZED
CAREER PATH
The Type Z organization adopts a
middle-of-the-road posture, with
career paths that are less
specialized than the traditional
U.S. model but more specialized
than the traditional Japanese
model.
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12. HOLISTIC CONCERN
The Type Z organization is
characterized by concern for
employees that goes beyond
the workplace. This
philosophy is more consistent
with the Japanese model
than the U.S. model.
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13. Significance of organizational culture
 Communicates info about overall acceptable and unacceptable
behavior.
 Provides common frame of reference for managerial decision making.
 It generates heroes.
 Enhances the stability of the social system.
 Defines the boundary between two organizations
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14. It is not significant also!!!!!
 It acts as a barrier :
 To change
 To mergers and acquisitions
 To diversity.
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15. ORGANISATIONAL MODEL
 Harrison gives an organizational model.
 Indicates that the four dimensions of culture orientation are measured.
 Measured with two modes of operation,
 Formalization
 Centralization
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16. CHARLES & HARRISON
ORGANIZATIONAL MODEL
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17. POWER CULTURE
Represented as spider’s web with all
important spider siting at the centre
The closer you are to the spider, the
more influence you have.
People response quickly to the
situations,but depends on people at
centre.
Performance is judged on results
Success is accompanied by low
morale and high turnover.
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18. ROLE CULTURE
Represented as building supported by
columns.
Each column has a specific role
playing keeping up the building
Position is the main power source
Efficiency based on rationality of the
allocation of work and responsibility
Successful in a predictable market
Role culture finds it difficult to respond
to change.
Frustrating for ambitious people
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19. TASK CULTURE
Its is job or project oriented
Emphasis is on getting the job done
It is a team culture where outcome of
the team works takes precedence
over individual objectives
Organisations can respond rapidly as
each group ideally contains all the
decision making powers required.
Control is difficult,managed by senior
managers.
When resources are limited, it tends to
shift towards role culture.
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20. PERSON CULTURE
Organisation exists only to
serve individuals within it.
Not by many organisations as
company’s objective is more
important
People do what they are
good at and are listened to
for all their expertise
Consultant and freelance
workers have this persons
orientation.
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21. EXAMPLES
 Google
 The company has an informal product development process
 gives staff members access to the co-founders and chief executive.
 DreamWorks Animation
 DreamWorks executives strive to foster creativity
 Encourages employees to take risks and giving staff members the opportunity to
engage in spontaneous discussions.
 company has an astonishing 97 percent employee retention rate.
 Salesforce.com
 Delivers cloud computing solutions for businesses around the world.
 Staff members collaborate by sharing ideas via a social networking app
Chatter. T
 app allows employees to analyze data, compare drafts of documents, and
share ideas in real time.
 Real-time data sharing eliminates the lag associated with the use of email and
other older methods of communication
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22. How employees learn culture?
Stories
Rituals
Symbols
Shared values
Common assumptions
Subculture
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23. STORIES
 Japanese car Lexus has enjoyed a reputation for quality and service by
such stories as company flying in repairmen to help customer who had
problem with car and could not find local repairmen
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24. SYMBOLS
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25.  Symbol communicate organizational culture by unspoken
messages
 Certain code of dress or logo can reflect companies core values.
 Example : Mary kay cosmetics, leading cosmetics company in US
award top sales performers a diamond ‘bumblebee”.
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26. SHARED VALUES
 Deeper level of culture.
 Reflects how individuals behave.
 EX: TATA GROUP
TYPES OF
VALUES
Instrumental
values
Ex: like honesty,
sincerity,
ambition,
independence
Terminal Values
Ex : like
happiness, self
respect, family
security,
recognition,
freedom,
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27. COMMON ASSUMPTIONS
 Deepest and the most fundamental level of cultural diagnosis
 Manifest themselves in individuals that violation of these is unthinkable
 EX: Chaparrel steel, an American company reflect three assumptions
 People are basically good : company’s emphasis on trust.
 People are willing to learn, grow and achieve: Company’s training
programmes.
 People are motivated by challenges : Common goal settings and
objectives.
Another example : IBM operating in Japan in 1960s.
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28. Subculture and Counterculture
 Subculture has its own pattern of values and philosophy.
 For example, Ford motor company want to bring car model that would
become highest selling car in America .
 Marketing and production dept gave R&D complete freedom to innovate.
 Lead to creation of : TAURUS
Counterculture hold beliefs and values that contradict the values of
organization itself.
Example : John DeLorean of GM, holding top management position was
against company’s value of respect for authority and team work.
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29. How culture forms?29

30. Keeping culture alive
 Selection
 Concerned with how well the candidates will fit into the organization.
 Provides information to candidates about the organization.
 Top Management
 Senior executives help establish behavioral norms that are adopted by the
organization.
 Socialization
 The process that helps new employees adapt to the organization’s culture.
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31. Managerial Decisions
 Select new employees with attitudes and personality consistent with high
service orientation.
 Train employees to be more customer oriented.
 Change organizational structure to give employees more control
 Conduct performance appraisals based on customer focused employees
behaviour
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32. A socialization model32

33. Stages in socialization33

34. Creating an ethical organizational
culture
 CHARACTERISTICS
 High tolerance for risk
 Low to moderate in aggressiveness
 Focus on means as well as outcomes
Practices that promote ethical culture
Being a role model.
Communicating ethical expectations.
Provide ethical training.
Visibly rewarding ethical acts and punishing unethical acts
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35. Creating customer responsive culture
 Variables shaping customer responsive relationship
1. The types of employees hired by the organization.
2. Low formalization: the freedom to meet customer service requirements.
3. Empowering employees with decision-making discretion to please the
customer.
4. Good listening skills to understand customer messages.
5. Role clarity that allows service employees to act as “boundary spanners.”
6. Employees who engage in organizational citizenship behaviors.
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36. Impact of culture on performance36

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