Building Organizational Culture Pankaj Kumar IIM Lucknow

Building Organizational Culture Pankaj Kumar IIM, Lucknow

Issues of Concern • Meaning of Organizational Culture • Measuring Organizational Culture • Building Organizational Culture

Do you really know your Organization’s Culture ? * What 10 words would you use to describe your company? * Around here what is really important? * Around here who gets promoted? * Around here what behaviours get rewarded? * Around here who fits and who does not?

The Meaning & Content • No Universal Definition. • Various Conceptual Frameworks. • Dimensions of OC.

Schein (1985) “ …a pattern of basic assumptions-invented, discovered or developed by a given group as it learns to cope with its problems of external adaptation and internal integration-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 those problems. ”

Pareek (1995) “ … a cumulative preference of some states of life over others (values), the predispositions concerning responses towards several significant issues and phenomena (attitudes), organized ways of filling time in relation to certain affairs (rituals), and ways of promoting desired behaviours and preventing undesirable ones (sanctions). ”

Vision Mission Goals & Objectives Strategies Structure Culture Behaviour Performance

Artifacts & creation Technology Arts Visible & Audible Behavior Patterns Values Basic Assumption Relationship to environment Nature of reality Time & Space Nature of Human activities Nature of Human Relationship Visible but often not decipherable Greater levels of awareness Taken for granted Invisible preconscious Levels of Culture and its interaction

Developing OC involves * Developing a strong corporate identity * Development of important values * Building healthy traditions * Developing consistent management practices

Cultural aspect of HRD concerned with * Development of Appropriate OC * Creating conducive Org. Climate * Improving Communication * Evolving effective reward system

Strong Corporate Identity develops when employees have a sense of belonging, and feel proud of working with the organization, which develops as a result of interaction of employees with the organization. * Developing an attractive Induction Booklet * Films on success experiences in the organization * Company newsletters * Mobility of People

Developing important values Values of excellence and human consideration develop only by demonstrating these values in action. * Surveys of Values and differences b/w espoused v/s practiced values * Special value orientation programmes * Examining the various systems operating in the organization * Special OD intervention in Cooperation and Collaboration

Building Healthy traditions & practices Traditions are built in org. on the basis of important Functional rituals or celebrations * Induction programme for new entrant * Promotions as transition * Ritual associated with “old age” and retirement * Exceptional behaviour * Celebration of special individual & important organizational days

Types * Autocratic or feudal culture is characterized by centralized power concentrated in a few persons, and observation of proper protocol in relation to the person/s in power. * Bureaucratic culture is characterized by primacy of procedures and rules, hierarchy and distant and impersonal relationship. * Technocratic culture emphasizes technical / professional standards and improvement. * Entrepreneurial culture in concerned about achievement of results and providing excellent services to the customers.

Profile of OC Cultures Focus Autocratic/ Feudal Proper Protocol Climate Ethos Dependency+ All opposite Affiliation values of OCTAPACE Bureaucratic Rules & Control + safe playing, Regulations Dependency inertia, conflict & closed Technocratic Perfection Expert power proaction, + Extension autonomy, collaboration, experimentation Entrepreneurial/ Results, Achievement OCTAPACE Democratic/ Customers +Extension Organic

ACQUIRE Basic new knowledge, facts, skills, process, concepts, values and beliefs etc. . TEST Implications of concepts in new situations EMBED New knowledge through reflection and practice INTEGRATE New facts into existing concepts and generalization Learning Culture Model

Building Culture • • • Recruitment and selection. Socialization. Performance Evaluation. Leadership. - Employee Motivation & Decision Making Compensation Packages. Grievance Handling. Conflicts & Differences handling. Discipline & Morale Career Planing and Development

Measuring Organizational Culture • Quantitative • Questionnaire & Survey • Qualitative • Depth Interview • Clinical Intervention • Analyzing Visual Artifacts. • Analyzing stories, rituals and myths. • Participant Observation.

Changing Culture # Understand the environmental & other forces that will influence your future strategy # Determine what are the core values that have been fundamental to your business identity, core purpose & success and that you will not compromise # Create a shared vision of what the company needs to become # Assess the existing culture & determine what elements of culture need to change

# Determine what changes need to occur to implement strategy and address the gaps # Define the role of senior management in leading the culture change # Craft an implementation plan with targets of intervention, time lines, milestones & accountabilities # Communicate the need for change and plan for change and create motivation and buy in among key stake holders

# Identify obstacles and sources of resistance and develop strategies for getting around them # Institutionalize, model and reinforce the changes in culture # Continually reassess the organization’s culture and establish a norm of continuous learning and transformation

Organizational Climate & Ethos # Achievement (concern for excellence) # Expert Power (concern for impact through expertise) # Extension (concern for relevance to larger goals and entities) # Control (concern for orderliness) # Affiliation (concern for maintaining good personal relations) # Dependency (concern for approval & maintenance of hierarchical order) * OCTAPACE

Constituents of OC Determinants - Societal Culture - Shared learning from shared history - Leadership - Consistent Mgt. practices - Structural Stability Consequences - Performance - Behaviour Dimensions -Visual Artifacts - Values - Rituals - Stories & Myths - Assumptions