Organizational Culture and Climate PDF

Organizational Culture and Climate Introduction Humans are social beings and society plays a major role in shaping the culture of human beings. Once a person joins an organization (s)he is bound by the culture of that organization. Organizational culture is the practice of shaping human behavior i...

Organizational Culture and Climate Introduction Humans are social beings and society plays a major role in shaping the culture of human beings. Once a person joins an organization (s)he is bound by the culture of that organization. Organizational culture is the practice of shaping human behavior in order to facilitate smooth interaction between the employees that enhances the effectiveness of the organization. The culture of an organization is influenced by the culture of the nation. Multinational companies that establish branches in various foreign locations have to adhere to the native cultures in order to utilize local human resources. Introduction (Contd) At the same time, organizations can also influence people to work according to their own organizational culture. Thus building organizational culture is both proactive and reactive. What is Organizational Culture? Culture as generally understood implies a set of code of conduct which regulates human life. Thus culture is set on many factors like value, beliefs, ideas, perceptions, preferences, concept of morality, code of conduct and expected ways of behavior of people of the society. Characteristics of Organizational Climate a) It is a common ideology of employees in an organization. b) Organizations are distinguished based on the organizational culture. c) Organizational culture is a set of unwritten rules of conduct that guide the actions of the employees. d) It influences the effectiveness of the organization and the employees’ efficiency. e) New employees learn the culture of the organization as they continue to work in the organization. Characteristics of Organizational Culture 1) Stability: The degree to which organizational activities maintain a status quo with respect to growth. 2) Team Orientation: The degree to which work activities are organized around teams rather than individual. 3) Outcome Orientation: The degree to which the management focusses on results or outcomes rather than on the techniques and processes used to achieve these outcomes. 4) People Orientation: The degree to which the management decisions take into consideration the effect of outcomes on people within the organization. 5) Attention to detail: The degree to which employees are expected to exhibit precision, analysis and attention to detail. 6) Aggressiveness: The degree to which people are aggressive and competitive rather than easygoing. 7) Innovation and Risk Taking: The degree to which employees are encouraged to be innovative and take risks. Factors in the Organizational Culture Performance Standards Performance Evaluations Expectations of various people Interpersonal relations Interpersonal Trust Communications among employees Leadership Support Participation Mutually shared trust Socialization Customer Support Mutually shared purpose Social Responsibility Quality of Work environment CRM* etc., (*CRM: Customer Relationship Management) Significance of Organizational Culture Organizational culture determines the way employees in the organization perform various roles. While a strong and positive organizational culture may not necessarily ensure an organization’s success, a weak organizational culture will surely kill it. If properly nurtured, a strong organizational culture promotes a positive performance in the employees. Significance of Organizational Culture a) Bonding: An employee’s willingness to perform in an organization depends on the internal environment and good interpersonal relationships that are determined by the organizational culture. Organizational culture creates a strong sense of bonding between the organization and its employees. b) Sense of Identity: Employees identify themselves with the organization based on the culture. c) Attitude Development: Employees joining an organization from various organizational cultures develop a positive work attitude towards the organization, if the culture of the organization is such that it has a positive attitude towards its employees. Organizational Culture and Organizational Climate The terms organizational Culture and organizational Climate are used synonymously and interchangeably even though there are clear distinctions between these two aspects. Climate at work place can be either physical climate (like the temperature or humidity) or the psychological climate created in the minds of employees (like belongingness). Differences between Organizational Culture and Organizational Climate Organizational Culture and Climate: OCTAPACE CULTURE of an Organization Organizational Culture is the collective behavior of humans who are part of an organization and the meanings that the people attach to their actions. Organizational culture is composed of several characteristics that range in priority from high to low. Every organization has a distinct value for each of these characteristics, which, when combined, defines the organization's unique culture. Members of organizations make judgments on the value their organization places on these characteristics and then adjust their behavior to match this perceived set of values. Every organization develops and maintains a unique culture, which provides guidelines and boundaries for the behavior of the members of the organization. OCTAPACE CULTURE of an Organization OCTAPACE CULTURE includes ethics, values, beliefs, attitudes, norms, ethos, climate, environment and culture. The eight dimensions of OCTAPACE culture are openness, confrontation, Trust, Authenticity, pro-action, autonomy, collaboration and experimentation which are essential for a strong and successful organization. A culture with OCTAPACE values has the greater chance of achieving high involvement and satisfaction, team work, growth and free flow of communication within the organization. The most important aspect of organizational culture are the values it practices. What elements make up an organization's culture? Eight values usually examined to develop the profile of an organizational culture that is called OCTAPACE that Stands for: O - Openness C - Collaboration T - Trust A - Autonomy P - Pro-Active A - Authenticity C - Confrontation E - Experimentation OCTAPACE CULTURE of an Organization O – Openness: It signifies the transparent environment in the organization like Freedom to communicate, share and interact without hesitation, receiving feedback from customers and giving ideas and suggestions to team members etc.,. C – Confrontation: The term signifies the actual problems which teams face in the day to day work. It implies to face the problem and find the best solutions to get over it rather than stepping back to escaping the problems. Facing the problems and challenges boldly and not shying away is the main theme of Confrontation. If an organization encourages people to recognize a problem, bring it to people concerned, explore with them and search possible ways of dealing with it. T – Trust: The trust factor come with Openness which includes maintaining the confidentiality of information shared by the organization as well as others. If the level of trust is low, the various dimensions of HRD are likely to be seen with suspicion and therefore the credibility of the system may go down. A – Authenticity: Authenticity is the congruence between what one feels and says. It is the value underlying trust. Authenticity is reflected in the narrowest gap between the stated values and the actual behavior. This value is important for the development of a culture of mutuality. OCTAPACE CULTURE of an Organization: P - Pro- Active: Proactive means anticipating issues in advance and its measures are taking initiative, preplanning and taking preventive action. Organizations must be proactive in terms of their planning. A – Autonomy: Autonomy is the willingness to use power without fear and helping others to do same. Basically autonomy is all about using and giving freedom to plan and act in one’s own sphere. Organizations must avoid Autocratic type of environment and give chance to teams to use their powers in positive way. OCTAPACE CULTURE of an Organization C – Collaboration: involves working together in a team for a common cause. Individuals solve their problems by sharing their concerns with one another and prepare strategies, work out plan of action and implement the plan of action together. E – Experimentation: It Involves using and encouraging innovative approaches to solve problems. It is the value which emphasizes the importance given to innovating and trying out new ways of dealing with problems in the organization.