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Muhammad Sherif , Founder, Managing Director & Sr. Lead Business Consultant , New Directions Consulting, Training & Services
ORGANIZATIONAL CULTURE AND CLIMATE By: M. Chakrapani (7) M. Vennela (8) Venkatesh (0) Niranjan Nahak (1) P. Sai Anusha (2) V. Aishwarya (3) P. Nithin Reddy (4)
2.What is Organizational Culture? • A system of meaning shared by the organization’s members • Cultural values are collective beliefs, assumptions, and feelings about what things are good, normal, rational, valuable, etc.
3.Culture’s Overall Function • Culture is the social glue that helps hold an organization together by providing appropriate standards for what employees should say or do.
4.Elements of Organizational Culture Artifacts • • • • Stories/legends Rituals/ceremonies Organizational language Physical structures/décor Visible Shared values • Conscious beliefs • Evaluate what is good or bad, right or wrong Invisible (below the surface) Shared assumptions • Unconscious, taken-for-granted perceptions or beliefs • Mental models of ideals
5.Stories Rituals How Employees Learn Culture/ How it is “reinforced” Language Material Symbols
6.How Organizational Cultures Form Top Management Philosophy of the Organization’s Founders Organizational Culture Selection Socialization
7.The Culture Iceberg:% hidden Observable symbols, ceremonies , slogans, stories, dr ess, physical settings, decoration, etc. Values, beliefs, norms, customs, nonverbal behavior, etc. Shorter, easier to change Level of conscious awareness Long term, difficult to change
8.Do Organizations Have Uniform Cultures Dominant Culture Subcultures Core Values
9.Benefits of Strong Corporate Cultures Social Control Strong Organizational Culture Social Glue Improves Sense-Making
.Contingencies of Org Culture & Performance Strong organizational cultures do not always result in higher organizational performance because:1. Culture content might be misaligned with the organization’s environment.2. Strong cultures may focus on mental models that could be limiting3. Strong cultures suppress dissenting values from subcultures.
.Adaptive Organizational Cultures • External focus -- firm’s success depends on continuous change • Focus on processes more than goals • Employees assume responsibility for org performance – They seek out opportunities • Proactive and responsive
.Bicultural Audit • Part of due diligence in merger • Minimizes risk of cultural collision by diagnosing companies before merger • Three steps in bicultural audit:1. Examine artifacts2. Analyze data for cultural conflict/compatibility3. Identify strategies and action plans to bridge cultures
.Merging Organizational Cultures Assimilation Acquired company embraces acquiring firm’s cultural values Deculturation Acquiring firm imposes its culture on unwilling acquired firm Integration Cultures combined into a new composite culture Separation Merging companies remain separate with their own culture
.Org. Culture Vs Org. Climate • Culture refers to ideologies, values and norms as reflected in stories and symbols. We would look for clues to the culture, for example, in accounts of the organizations founding. • Climate, on the other hand, refers to the psychological environment as reflected in attitudes and perceptions.
.Climate Debate Organizational Climate is a relatively enduring quality of the internal environment of an organization that a- is experienced by its members b- influences their behavior c- can be described in terms of the values of a particular set of characteristics of the organization
.Elements of Climate • • • • • • • • • • Quality of Leadership Amount of Trust Communication, upward and downward Feeling of useful work Responsibility Fair rewards Reasonable job pressure Opportunity Reasonable controls, structure, and bureaucracy Employee involvement, participation.
