Basics of Organisation Culture PDF

Basics of Organisation Understanding organizational Culture Post graduate Certification in Strategic Management Session 3-4 Vijaya . V Session Coverage • What is an Organisational culture? • How do culture? we understand organisational • What is the solidarity socialibility framework organis...

Basics of Organisation Understanding organizational Culture Post graduate Certification in Strategic Management Session 3-4 Vijaya . V Session Coverage • What is an Organisational culture? • How do culture? we understand organisational • What is the solidarity socialibility framework organisation’s culture? What is an Organisational culture?- Edgar Schein Culture • Can be a source of competitive advantage • Can be useful during crisis, disintegration, delayering, downsizing • Without culture, a company lacks values, direction & purpose • Culture is community. It is about how people relate to each other • • https://www.wsj.com/video/series/the-economics-of/inside-pantone-the-company-that-turns-color-into-money/9AC7FA56-AD60-4302-B5BD-CA0A235385BC https://www.google.com/search?q=Satya+microsoft&sca_esv=589336079&rlz=1C1CHZN_enIN971IN971&ei=ZCp0ZZm6CKijuMPsPC8kAk&ved=0ahUKEwiZ_Nne_IGDAxUon2MGHTA4D5IQ4dUDCBA&uact=5&oq=Satya+microsoft&gs_lp=Egxnd3Mtd2l6LXNlcnAiD1NhdHlhIG1pY3Jvc29mdDIKE C4YgAQYigUYQzIFEAAYgAQyBRAAGIAEMgUQABiABDIGEAAYFhgeMgYQABgWGB4yCBAAGBYYHhgPMgYQABgWGB4yBhAAGBYYHjIGEAAYFhgeMhkQLhiABBiKBRhDGJc FGNwEGN4EGN8E2AEBSJnJAVDAB1jawgFwDHgAkAEBmAGdBaAB7CKqAQgwLjI2LjUtMbgBA8gBAPgBAagCCsICCBAAGIAEGLADwgIOEAAYgAQYigUYhgMYsAPCAgsQLhi ABBiKBRiRAsICERAAGIAEGIoFGJECGLEDGIMBwgIREC4YgwEYxwEYsQMY0QMYgATCAg4QLhiABBiKBRixAxiDAcICDhAAGIAEGIoFGLEDGIMBwgILEC4YgAQYxwEY0QPCAgs QABiABBixAxiDAcICERAuGIAEGLEDGIMBGMcBGNEDwgIaEC4YgAQYigUYkQIYlwUY3AQY3gQY3wTYAQHCAg4QLhiABBiKBRiRAhixA8ICCxAAGIAEGIoFGJECwgIKEAAYgAQ YigUYQ8ICCxAuGIAEGLEDGIMBwgIdEC4YgAQYigUYkQIYsQMYlwUY3AQY3gQY4ATYAQHCAggQLhiABBixA8ICFBAuGIAEGIoFGLEDGIMBGMcBGNEDwgIZEC4YgAQYigUYQ xiXBRjcBBjeBBjgBNgBAcICDhAAGIAEGIoFGJECGLEDwgIOEC4YgAQYsQMYgwEY1ALCAg4QLhiABBixAxjHARivAcICDhAuGIAEGLEDGMcBGNEDwgIIEAAYgAQYsQPCAgUQLh iABMICDhAuGIMBGNQCGLEDGIAEwgIHEAAYgAQYCsICChAAGIAEGLEDGArCAhQQABiABBjjBBjpBBjqAhi0AtgBAsICFhAAGAMYjwEY5QIY6gIYtAIYjAPYAQPCAhYQLhgDGI8 BGOUCGOoCGLQCGIwD2AEDwgIUEC4YgAQYigUYkQIYsQMYxwEY0QPCAhEQLhiABBiKBRixAxiDARjUAsICCxAuGJECGIAEGIoFwgIQEAAYgAQYigUYQxixAxiDAcICCxAuGK8 BGMcBGIAEwgIaEC4YkQIYgAQYigUYlwUY3AQY3gQY3wTYAQHCAhEQLhiDARiRAhixAxiABBiKBcICDRAuGEMYsQMYgAQYigXCAhEQLhiDARivARjHARixAxiABMICDRAuGIA EGIoFGEMYsQPCAiAQLhiDARiRAhixAxiABBiKBRiXBRjcBBjeBBjfBNgBAcICBxAuGIAEGArCAg0QABiABBiKBRhDGLEDwgIIEC4YsQMYgATiAwQYACBBiAYBkAYEugYGCAEQA RgUugYECAIYB7oGBAgDGAo&sclient=gws-wiz-serp#fpstate=ive&ip=1&vld=cid:53f3b238,vid:QsWtiop4IJA,st:0 Changing Business through Culture • Doug Baker @ Eco Lab Industrial cleaning company – Many acquisitions – One stop shop for customer’s cleaning needs expanding beauracracy eating into the customer-centricity – More learning/ awareness of products and services made a difference - More decision making and fostering of frontline responsibility - Public acknowledgment of meritocracy • Richard Anderson @ Delta – Northwest merger – Emerging from bankruptcy - Delta dictates – Non executive Chairman who oversees agenda – More responsibility for COO and CMO - Earlier union culture changed to direct dealings with employees- Training – flexible scheduling – well maintained planes – Good crew hotels – Better compensation –Stock ownership plans - Greater loyalty, trust and better performance Changing Business through Culture • Alan Mullelly @ Ford – Facing 25% loss in market share Management team was aggressive not collaborative – Hiding information from each other - each unit different markets operates independently- enormous waste – defensive mentality- Changes Global Heads of marketing – product development and manufacturing to lead collaboration internationally– Easier identification of low performing brands • Dan Vasella @ Sandoz – Ciba Geigy merged Novartis – From prescription drugs to Health care portfolio – Clear metrics for gauging performance – No toleration of bribing no internal bad stories – Increase in spend on R&D – Decentralised decision making; more empowerment Putting organizational structures and processes in place to tackle business challenges = Cultural change What is Organizational Culture? • Organizational culture: The set of shared values and norms that controls organizational members’ interactions with each other and with people outside the organization – Can be a source of competitive advantage – Can be used to increase organizational effectiveness • Values: General criteria, standards, or guiding principles that people use to determine which types of behaviors, events, situations, and outcomes are desirable or undesirable – Terminal value: A desired end state or outcome that people seek to achieve – Instrumental value: A desired mode of behavior • Norms: Standards or styles of behavior that are considered acceptable or typical for a group of people Organisational Cultures at work Zappos • https://www.youtube.com/watch?v=wSHG3EU1EZ4 Google • https://www.google.com/search?q=psychological+safety+google&sca_esv=589318964&rlz=1C1CHZN_enIN971IN971&ei=7wd0ZYvz Kvme4EP2aKfkAg&oq=psychological+safety+google&gs_lp=Egxnd3Mtd2l6LXNlcnAiG3BzeWNob2xvZ2ljYWwgc2FmZXR5IGdvb2dsZSoCCAAy CxAAGIAEGIoFGJECMgUQABiABDIFEAAYgAQyBRAAGIAEMgYQABgWGB4yBhAAGBYYHjIGEAAYFhgeMgYQABgWGB4yBhAAGBYYHjILE AAYgAQYigUYhgNIvidQ9gZY8xRwAXgBkAEAmAGtAaABzQeqAQMwLje4AQHIAQD4AQHCAgoQABhHGNYEGLADwgINEAAYgAQYigUYQ xiwA8ICDhAAGOQCGNYEGLAD2AEBwgITEC4YgAQYigUYQxjIAxiwA9gBAsICChAAGIAEGIoFGEPiAwQYACBBiAYBkAYQugYGCAEQARgJug YGCAIQARgI&sclient=gws-wiz-serp#fpstate=ive&vld=cid:41990a0c,vid:-zrLI-Osg88,st:0 Solidarity-Sociablity framework -What holds the modern company together? • • • Without culture, a company lacks values , direction, purpose - Culture is community Sociability = sincere friendliness and reciprocity among the members, no strings attached, Solidarity = Community’s ability to pursue shared objectives quickly and effectively SociabiIity Advantages – Creativity, team work, morale, natural stretching beyond formal requirements Disadvantages – Tolerance of poor performance Need for consensus, compromises; not the best solution Four Dimensions of culture High Low Networked HUL Communal British Borneo Petroleum Syndicate Fragmented UBS Mercenary Mastiff wear Low High Solidarity Advantages Strategic focus, quick response to competitive threats, meritocracy, no favouritism Disadvantages – What is in it for me if not clear, turf battles Cultures in companies Sociability Solidarity A D V A N T A G E Unarticulated reciprocity We interact without any strings attached No pre-arranged deals Valued for its own sake (relationship) Work environment enjoyable People go beyond formal requirements of work and work harder Boon to creativity & team work Natural freedom to express No personal ties Based on mutual interests and shared agenda Unit when there is external threat Can be demonstrated as and when need arises Strategic focus, quick response to environmental threats D I S A D V A N T A G E Tolerance to poor performance Personal problems more accepted Not to disagree or criticize each other Diminished debate Compromise on problems, not solutions Small cliques can circumvent formal systems, People outside network feel mistreated No identity or loyalty to organization Work for oneself; along with others Cultures in companies Communal High sense of organizational identity, in mature organisations, self identity aligned with organizational identity; social events with strong ritualistic significance; equitable sharing or risks and rewards; values of fairness, justice, respect, deference and affection; clear about competition; helpful in religious, political and civic organisations; when innovation requires elaborate team work; when strategies are long term and when environment is complex and dynamic Mercenary High on data laden memos; Individual interest coincide with corporate objectives; Priorities decided quickly with little debate ; Clear separation of work and social life; Intolerant of poor performance, fired; Fair to hard work, does not encourage loyalty; Unhindered by friendships, people compete; Busy chasing individual specific targets, not willing to share information; Cooperation between units less likely; Helpful when change is rampagnt, competitive advantage is already achieve; corporate goals are clear and measurable; nature of competition and how to handle is clear Networked Decisions made before meetings!!; Flexible and informal ; Ability to collect soft information and the ability to acquire sponsors and allies; Can be political; Employees contest performance measures, rules, procedures and systems; Helpful when corporate strategies are long Fragmented Low consciousness of organizational membership; identify with profession than organization; less interactions, secretive about projects, can have gossips and rumour; high dissent about organizational goals; Leaders feel isolated and feel constrained to change things; Where an Organization’s Culture Comes From Stock options, salaries Sociability and solidarity Careful selection of people for organization-fit Organic or mechanistic Control systems