PPT shown to PGDM students at S P Jain Institute on the importance of culture in an organization and how it helps and hinders

1. LLEEAARRNNIINNGG TTHHRROOUUGGHH
IINNDDUUSSTTRRIIAALL SSTTOORRIIEESS
HHooww ssttuuddyyiinngg ooff ccuullttuurree hheellppss yyoouu mmaannaaggee bbeetttteerr
Prof S K Palekar
ADMAP COURSE PGDM SEPTEMBER 2014
skpalekar@spjimr.org Visit http://marketing-eye.blogspot.com

2. Manpower is one of the biggest
(1) Problem (2) Opportunity (3) Enigma
in management
Behavior of material and mmaacchhiinneess aanndd mmoonneeyy
iiss pprreeddiiccttaabbllee.. BBuutt bbeehhaavviioorr ooff ppeeooppllee iiss nnoott pprreeddiiccttaabbllee..
skpalekar@spjimr.org Visit http://marketing-eye.blogspot.com

3. And who are these people relevant to managers ?
Managing Those who work for you, yyoouurr ppeeeerrss,, yyoouurr bboosssseess..
MMaannaaggiinngg oouuttssiiddeerrss :: CCuussttoommeerrss,, VVeennddoorrss,, CCoollllaabboorraattoorrss
AAnndd ddoonn’’tt ffoorrggeett :: mmaannaaggiinngg yyoouurrsseellff ……
skpalekar@spjimr.org Visit http://marketing-eye.blogspot.com

4. Elementary Model of Human Behavior
Response
Response
Response
P1 P2 P3
Different Persons P1, P2, P3 respond differently to the same stimulus.
Response to external stimulus is a test of what is “inside” the person.

5. How should managers change
the behavior of the organization
which consists of different people with different backgrounds?
Change people ? Personalities ? Stimuli ? Motivation ?
Sun Pharma : wanted to respond to rapid environmental change
Infosys : Similar behavior from local employees in different countries.
IBM changed from a product selling company to a solution selling one.

6. CHANGING THE ORGANIZATIONAL BEHAVIOR
Through management oversight and intervention
or
through a social pressure of the culture
exerted by the entire organization
skpalekar@spjimr.org Visit http://marketing-eye.blogspot.com

7. How to get the right behavior from the organization consisting of
many different people of different personalities and membership of
so many different past / present groups?
Family
Parents
College
School
Office
Clubs
Reference
Profession
Friends
Neighbors
Some Group Memberships
(A)Cannot be changed
(B)Cannot be easily changed :
(C)Can be changed : Voluntary

8. Make People Behave
Through “Managing through formal oversight from the
top” OR through “self sustaining culture at the bottom” ?
Response
Response
Response
P1 P2 P3
Aim : To get a certain commonality in the behavior of employees
In spite of diversity of people and their backgrounds and their groups

9. 7 S Model
“Engineered and deliberate System” for doing the work. It is
expendable and can be changed quickly
 Strategy , Structure, Systems.
Assigned roles and interdependency .
Internal interest groups.
People : “software” embedded
in the individuals
 Staff and Skills
Culture : “software” embedded
in the workplace as a whole
and takes time to develop
 Style and Shared Values
Culture is a mental program /
software that runs in the background
without your being aware of it.
Culture is not what you have been
told formally or in some manual but
what you learnt on your own through
the process of “culturisation” within
the company. You know the “right
behaviors” needed to “fit in” and
join the undercurrent of mutual
expectations from employees within
the organization.
skpalekar@spjimr.org Visit http://marketing-eye.blogspot.com

10. Shein’s Model of Culture
Artifacts can be seen or felt by even a casual visitor
 Facilities, offices, furnishings, Awards, Recognition, Dress Code,
Behavior of employees, Employee scripts, Mission statements.
 Behavioral : rituals and ceremonies and collective interpersonal behavior
 Myths, stories, sagas, language
Values : preferences : these can studied by interviewing the
organization's membership.
Tacit assumptions are unspoken rules that run deep and
sometimes even the members cannot articulate them well.
Sometimes they are even a taboo to discuss
skpalekar@spjimr.org Visit http://marketing-eye.blogspot.com

11. How Japanese captured the US auto market?
Artifacts : Uniform, CCoommmmoonn ppllaacceess
RRiittuuaallss :: mmoorrnniinngg rriittuuaallss
VVeerrbbaall :: qquuaalliittyy cciirrcclleess ((iimmppoorrttaannccee ggiivveenn))
VVaalluueess :: YYoouu,, yyoouurr ttaalleenntt aanndd yyoouurr ccoonnttrriibbuuttiioonn iiss vvaalluueedd
skpalekar@spjimr.org Visit http://marketing-eye.blogspot.com

12. How Culture Needs to be appropriate to the
industry
SSoonnyy
PPaannaassoonniicc
AAIIWWAA
skpalekar@spjimr.org Visit http://marketing-eye.blogspot.com

13. What is the use of culture ? It creates less day to day
burden of managing and it promotes self learning
External Alignment : A good culture holds the potential for
generating sustained competitive advantage
Internal integration : Shapes correct employee behavior through
socialization at workplace. Reinforces culture on a daily basis
and work towards achieving its vision, mission, and goals
Strong cultures guide the people unknowingly what is the right
thing to do. It fosters employee motivation and loyalty. It
increases cohesiveness among various departments and
divisions. It promoting consistency and coordination and control
within the company.
skpalekar@spjimr.org Visit http://marketing-eye.blogspot.com

14. Each Group Has
FORMAL / ORGANIZATIONAL SIDE ( TOP DOWN)
 Membership criteria to decide who is “in” and who is not.
 Norms of conduct to set expectations
 Privileges of membership and affiliation
 Way of grading members and treating them differently.
 Pressure of reward / punishment system
INFORMAL / CULTURAL SIDE ( BOTTOM UP)
 Membership criteria to decide who is “in” and who is not.
 Norms of conduct to set expectations
 Privileges of membership and affiliation
 Way of grading members and treating them differently.
 Pressure of social acceptance and recognition
skpalekar@spjimr.org Visit http://marketing-eye.blogspot.com

15. Thank You
skpalekar@spjimr.org Visit http://marketing-eye.blogspot.com