CORPORATE CULTUREBy Prof. B D Singh

By:B.D Singh

Prof. HRM & Dean MDP & ConsultancyIMT, Ghaziabad

Culture is the conventionalized behavior of the society and Culture is the conventionalized behavior of the society and affects most of the actions of the individual without one’s affects most of the actions of the individual without one’s conscious thoughts. Organizational culture is actually a conscious thoughts. Organizational culture is actually a subset of the culture of a society.subset of the culture of a society.It is helpful in developing the identity of their community and It is helpful in developing the identity of their community and are used by them to respond to changing environment.are used by them to respond to changing environment.

Organizational culture is not the same as corporate cultureOrganizational culture is not the same as corporate culture. . Senior management may try to determine a corporate Senior management may try to determine a corporate culture. They may wish to impose corporate values and culture. They may wish to impose corporate values and standards of behavior that specifically reflect the objectives standards of behavior that specifically reflect the objectives of the organization. Work-group within the organization have of the organization. Work-group within the organization have their own behavioral quirks and interactions which, to an their own behavioral quirks and interactions which, to an extent, affect the whole system. Charles Handy, suggests extent, affect the whole system. Charles Handy, suggests that unlike organizational culture, corporate culture can be that unlike organizational culture, corporate culture can be imported. It can be developed as per corporate imported. It can be developed as per corporate requirementsrequirements

Of late, multinationals have brought the concept of Of late, multinationals have brought the concept of corporate citizenship where an individual suppose to corporate citizenship where an individual suppose to discharge dual responsibility.discharge dual responsibility.

Corporate culture is submerged part of organization ice berg – pervasive, intangible.It is described as the personality of the organization/DNA of the organization. It is underlying set of beliefs, assumptions, values shared feelings & perceptions which is reflected in actions & inter actions of organizational members.

Corporate culture is very important and has a decisive influence on sustained performance – cultural capital.

It is organization specific.Culture means “to grow”. It is

personality/DNA of the organization. It provides unique identity.

Corporate culture is a dynamic process – how and why it develops, how it is sustained, how it is transmitted & managed its impact on Corporate effectiveness.Corporate is an organic entity which is

either receptive and adaptive or dormant or sterile.

Many sources of organization culture It is influenced by the culture of the society in

which it operates----It is inherited from past.It is influenced by better cultures of other

organization/ Country.It has to respond to the market Imperatives.

Nature of Organization culture.Physical Infrastructure.Routine behavior, language, ceremonies.Rules & Procedures (Rigid, Responsive)Gender equality, equality in payment.Dominant values like qualities and efficiency.Philosophy that guides organization.Policies towards

Employees Customers Approach to innovation / creativity Approach towards honest mistakes

TypesBureaucratic CultureParticipative CultureDevelopmental CulturePerformance Oriented CultureLearning Organization—Unlearning. Learning and Continuous

learning-adapting to change.

Strong & weak culture

Action orientation.Customer orientationHigh value to people.Autonomy is working.Encouraging leadership behavior

Peter & Waterman – In search of ExcellenceCraze for customers.Craze for creativityCare for the people

Formal Components of Organizational Culture

ComponentComponent DescriptionDescription Effect on Organizational Effect on Organizational CultureCulture

Mission / Mission / VisionVision

The milestones to be reachedThe milestones to be reached Could be unrealisticCould be unrealistic

PoliciesPolicies Statements designed to be guides Statements designed to be guides behavioral decisionbehavioral decision

Policies, if not drafted Policies, if not drafted properly, can provide properly, can provide leeway.leeway.

ProceduresProcedures Methods providing specific Methods providing specific guidelinesguidelines

Can facilitate or create Can facilitate or create obstacles in smooth obstacles in smooth functioning.functioning.

RulesRules Specific instructions for performing Specific instructions for performing a taska task

Rules could be a means or Rules could be a means or an end in themselves.an end in themselves.

State of State of

Organizational Organizational Development Development

Organization at young, growing, Organization at young, growing, maturing and mature stage of maturing and mature stage of development.development.

State of organizational State of organizational development has direct development has direct impact on work culture.impact on work culture.

Characteristics of Four Types of Organizational CulturesRational Rational culture/ culture/ performance performance centriccentric

DevelopmDevelopmental ental cultureculture

Consensual Consensual cultureculture

Hierarchical Hierarchical cultureculture

OrganizatioOrganizational purposenal purpose

Pursuit of Pursuit of rational rational objectivesobjectives

Creation; Creation; developmedevelopmentnt

Group-Group-maintenancemaintenance; team-; team-buildingbuilding

Execution; Execution; regulationregulation

PerformancPerformance criteriae criteria

Productivity; Productivity; efficiencyefficiency

Growth; Growth; innovationinnovation

Cohesion; Cohesion; moralemorale

Control; stabilityControl; stability

Authority Authority Bases of Bases of powerpower

Boss Boss CompetenceCompetence

Charisma Charisma ValuesValues

Membership Membership Informal Informal statusstatus

Rules; seniority Rules; seniority Knowledge of Knowledge of regulationsregulations

MotivesMotives Achievements Achievements GrowthGrowth Affiliation; Affiliation; mutual mutual dependencedependence

securitysecurity

Formal Components of Formal Components of Organizational CultureOrganizational Culture

ComponentComponent DescriptionDescription Effect on Organizational Effect on Organizational CultureCulture

Mission / Mission / VisionVision

The milestones to be reachedThe milestones to be reached Could be unrealisticCould be unrealistic

PoliciesPolicies Statements designed to be guides Statements designed to be guides behavioral decisionbehavioral decision

Policies, if not drafted Policies, if not drafted properly, can provide properly, can provide leeway.leeway.

ProceduresProcedures Methods providing specific Methods providing specific guidelinesguidelines

Can facilitate or create Can facilitate or create obstacles in smooth obstacles in smooth functioning.functioning.

RulesRules Specific instructions for performing Specific instructions for performing a taska task

Rules could be a means or Rules could be a means or an end in themselves.an end in themselves.

State of State of

Organizational Organizational Development Development

Organization at young, growing, Organization at young, growing, maturing and mature stage of maturing and mature stage of development.development.

State of organizational State of organizational development has direct development has direct impact on work culture.impact on work culture.

Levels of organizational culture – observable culture and core Levels of organizational culture – observable culture and core culture.culture.

Stories• Tales about events

conveying core values

Heroes• People (past and present)

Who display core value

Rites and Rituals • Celebration of heroes and events displaying

core values

Core CultureCore Values

• Beliefs about the right ways to behave

Symbols • Language and other symbols conveying

Core values

The main features of organizational culture are as under:The main features of organizational culture are as under:

1.1. Like an individual every organization has its own Like an individual every organization has its own personality.personality.

2.2. The personality defines the internal environment of an The personality defines the internal environment of an organization.organization.

3.3. It differentiates one organization from others.It differentiates one organization from others.4.4. It is relatively enduring or stable over time.It is relatively enduring or stable over time.5.5. It is perceived by the members and the outsiders.It is perceived by the members and the outsiders.6.6. It exercises a significant influence on the attitudes, It exercises a significant influence on the attitudes,

behavior and performance of organizational members.behavior and performance of organizational members.

Strengths of Organizational CultureStrengths of Organizational Culture

Morgan proposes four essential strengths of organizational Morgan proposes four essential strengths of organizational culture approach:culture approach:• It focuses attention on the human side of organizational life, It focuses attention on the human side of organizational life, and finds significance and learning in even its most mundane and finds significance and learning in even its most mundane aspects (for example, the setup in an empty meeting room).aspects (for example, the setup in an empty meeting room).• It makes clear the importance of creating appropriate It makes clear the importance of creating appropriate systems of shared meaning to help people work together systems of shared meaning to help people work together toward desired outcomes.toward desired outcomes.• it requires members – especially leaders – to acknowledge it requires members – especially leaders – to acknowledge the impact of their behavior on the organization’s culture. the impact of their behavior on the organization’s culture. Morgan proposes that people should ask themselves: “What Morgan proposes that people should ask themselves: “What impact am I having on the social construction of reality in my impact am I having on the social construction of reality in my organization?” “What can I do to have a different and more organization?” “What can I do to have a different and more positive impact?” positive impact?”

• It encourages the view that the perceived relationship It encourages the view that the perceived relationship between an organization and its environment is also affected between an organization and its environment is also affected by the organization’s basic assumptions.by the organization’s basic assumptions.

Functions of CultureFunctions of Culture

• Culture has a boundary – defining role; that is, it creates Culture has a boundary – defining role; that is, it creates distinctions between one organization and others.distinctions between one organization and others.• Culture conveys a sense of identity for organization members.Culture conveys a sense of identity for organization members.• Culture facilitates the generation of commitment to something Culture facilitates the generation of commitment to something larger than one’s individual self – interest.larger than one’s individual self – interest.• it enhances the stability of the social system.it enhances the stability of the social system.• Culture serves as a sense – making and control mechanism Culture serves as a sense – making and control mechanism that guides and shapes the attitudes and behaviour of that guides and shapes the attitudes and behaviour of employees.employees.

Strong cultures have four key componentsStrong cultures have four key components

• Values – basic beliefs and concepts (concrete guidelines Values – basic beliefs and concepts (concrete guidelines for success)for success)• Heroes – personify cultural valuesHeroes – personify cultural values• Rites and rituals – public performances that display and Rites and rituals – public performances that display and enact valuesenact values• Cultural network – primary carrier of cultural information Cultural network – primary carrier of cultural information (stories, myths, legends, jokes, and gossip)(stories, myths, legends, jokes, and gossip)• Criticisms: shortsighted, more than strategy, not just a skill; Criticisms: shortsighted, more than strategy, not just a skill; culture is a complex, communicative phenomenon rooted in culture is a complex, communicative phenomenon rooted in the history of the organizations events.the history of the organizations events.

• Code of Business Conduct• Right & Wrong•It defines ‘winning’• Role of integrity• Defines ‘Way of life’

• Sizing• Quality• Diversity• Competency

• Degree of technology involvement• Workflows• Turnaround times• Acceptance and innovation• Scalability

• Goal setting • Defines development• Defines expectations• Linkage to value chain• Development

• Flow of power• Resource allocation• Decision process• Flow of communication• Definition of leadership

• Entrepreneurship practices• Participative vs. autocratic• Process orientation• Flexibility• Work-life balance

• Relationship with environment• Definition of customer• Defines the value• Defines the speed to market• Defines the route to market

Structure

Skills Staff

Shared Values StyleStrategy

System

How does Organization Culture emerge?

A successful organization in a given paradigm is always in a state of cultural equilibrium with the 7 determinants of culture

Culture ProfilingCulture Profiling

Bureaucratic

Accountable

Individualistic

Tentative

Risk avoiding

People-avoiding

Directive

Strategically oriented

Status quo

Rigid

ApatheticFlexible

Entrepreneurial

Unaccountable

Collaborative

Decisive

Risk taking

Task-oriented

Participative

Short-term oriented

Progressive

Passionate

Culture vs. structureCulture vs. structure

VisionVisionManagementManagement

MissionMission ValueValue

StructureStructure Objectives Objectives Principles CulturePrinciples Culture

StrategiesStrategies StylesStyles

Plans Plans BehaviorsBehaviors

PredictabilityPredictability ResultsResults ChangeChange

Organizational culture and change Transformational leadership and

organizational culture Learning organizations Examples

(1) JRD Tata(2) McDonald(3) Enforces

Rejuvenating organization culturePurposeful Meaning Purposeful Meaning ToToObjectives & goals Objectives & goals vision, mission and core vision, mission and core valuevalueVibrant dynamic Vibrant dynamic management style management style Create role modelCreate role modelIndoctrination of new Indoctrination of new entrants to core valueentrants to core valueSpread unique cult of Spread unique cult of organizationorganization

Value ManagementValue ManagementInternal/external Internal/external CredibilityCredibilityEncourage dissentEncourage dissentOpenness & Openness & transparencytransparencyLearning organizationLearning organization

Social GluesSocial GluesOrganization as Organization as extension of family extension of family Social culture Social culture celebrationscelebrationsMentoring processMentoring processClean and Green Clean and Green environmentenvironmentAdequate employee Adequate employee welfare measureswelfare measuresCommon facilities-Common facilities-canteen, uniform canteen, uniform transport, toilets, etc.transport, toilets, etc.Develop organization Develop organization myths, archetypes myths, archetypes stories, etcstories, etc

O C T A P A C E

O- OpennessC- CredibilityT- TrustA- AuthenticityP- Proactively A-AutonomyC-CollaborationE-Experimentations

Transparent Management Practices

Encourage Encourage OCTAPACEOCTAPACE

Employee Employee communication quality communication quality of work lifeof work life

Objective reward, Objective reward, appraisal & promotionappraisal & promotion

Trade Unions-Partners Trade Unions-Partners in progressin progress

Total Productive Total Productive ManagementManagement

Delegation & de-Delegation & de-

centralization system centralization system perfectionperfection

Business strategyBusiness strategy

Employee participationEmployee participation

Employee Employee empowermentempowerment

Productivity-Way of Productivity-Way of LifeLife

Work as meta value Work as meta value

Kaizen, TPM, TQM Kaizen, TPM, TQM Customer delight Customer delight Brand equityBrand equity

Shared meanings Organization Shared meanings Organization pridepride

Sense of belonging Sense of belonging

Organization identity Organization identity

Job satisfactionJob satisfaction

Roots of Cultural Perspective in OrganizationPracticePractice FocusFocusQuality circles, TPM circles Quality circles, TPM circles

Shop floor committeeShop floor committee

Employee involvementEmployee involvement

Suggestion schemeSuggestion scheme Exploration of individual creativity Exploration of individual creativity and potential and potential

Best Employee Award, Best Best Employee Award, Best Attendance Award,Attendance Award,

Best Safety Award, Best House Best Safety Award, Best House Keeping AwardKeeping Award

Creating individual urge and Creating individual urge and initiative for excellence initiative for excellence

Managing by walking around Managing by walking around (MBWA)(MBWA)

Developing work place contacts, Developing work place contacts, empathetic relationshipempathetic relationship

Common uniform, toilets, bus, Common uniform, toilets, bus,

canteen and recreational facilitiescanteen and recreational facilities Developing sense of parity and Developing sense of parity and equityequity

Birthday greetings, company gift Birthday greetings, company gift on marriage, festival gift, on marriage, festival gift, participation by Senior Executives participation by Senior Executives in social ceremoniesin social ceremonies

Exploit family for a to develop Exploit family for a to develop linkages with employeeslinkages with employees

Employment of employees Employment of employees relatives on merit preferably in relatives on merit preferably in other group unitsother group units

Develop personal bondage and Develop personal bondage and loyaltyloyalty

Competitive remuneration Competitive remuneration packagepackage

To attract, retain and develop To attract, retain and develop talent; maintain continuitytalent; maintain continuity

Merit based reward systemMerit based reward system To develop objective, healthy To develop objective, healthy competitive urge for superordinate competitive urge for superordinate goalsgoals

House magazine/newsletter, open House magazine/newsletter, open

communication meeting by Unitcommunication meeting by Unit To develop transparency To develop transparency openness, trust and effective openness, trust and effective communication channelcommunication channel

Head (Darbar), daily and monthly Head (Darbar), daily and monthly operations review meeting, personal operations review meeting, personal meeting with unit head of meeting with unit head of employees at certain level at least employees at certain level at least once a yearonce a year

Climate and attitude survey once in Climate and attitude survey once in two yearstwo years

To understand employees To understand employees perceptions and feelings about perceptions and feelings about organization and take corrective organization and take corrective actions, if anyactions, if any

Formulate committees for allotment Formulate committees for allotment of house, telephone facilities, etcof house, telephone facilities, etc

Decision by ConsensusDecision by Consensus

Emphasis on detailed MIS, SPC, Emphasis on detailed MIS, SPC, SQC, TQM, goal setting SQC, TQM, goal setting performance review monitoring, performance review monitoring, zero budgeting, personnel policy zero budgeting, personnel policy

and systems, joband systems, job description, description, structure etc.structure etc.

Analytical business approach Analytical business approach system approachsystem approach

Continuous modernization, up Continuous modernization, up gradation of technologygradation of technology

Technology edgeTechnology edge

Continuous training at all levels Continuous training at all levels opportunitiesopportunities

Exploration of employee potential Exploration of employee potential and improve knowledge and skillsand improve knowledge and skills

Physical facilities, safety and health Physical facilities, safety and health care measurescare measures

Clean, green and friendly Clean, green and friendly environment/facilities environment/facilities

Fair and firm IR policies, justice Fair and firm IR policies, justice equityequity

Democratization of workDemocratization of work

11. Progressive HR Interventionsa) Effective Communication – System two way

feedbacks for continuous improvement / corrections.

b) Objective Performance Appraisal System – Open / Transparent to eliminate biases.

c) Proactive Grievance Redressal System.d) Positive Disciplines – “Violence is the cry of

unheard.”e) Dynamic dispensation for unleashing creativity /

innovations/ suggestion schemes.f) Developing Redressal of Sexual – Harassment

Dispensation – zero tolerant policy.g) Management of contract labour

12.Building Synergetic work – culture.

• Setting cultural boundaries – what makes us different than others.

• Building Commitment to something above self – interest.

• Building Social Cohesiveness.

• Value – based work – culture.• Frequent cultural Audit.• Developing work place pride.• Inculcating work – dignity.• Setting standard by self example.• Encouraging Creativity, Risk taking,

Positive-dissent, Honest –failures etc.• Social glue – long term boundage.

Learning culture at work placesPeter F.Drucker, the management guru

foresees as our future “ the real value of an organisation will lie in its people’s ability to think and learn.” if thought generates knowledge the credo of tomorrow's corporation is clear. The new economy demands that organisations move beyond the old organisation architecture with its hierarchical order

If learning is critical, and people are the only source then what your company must became is a people-centered learning organisation

Climate supportive & Cooperative.Climate of challenges, competition & over –

performance.Working requires – flexible, non-judgmental.Tolerance for failure.

FOR THOSE WHO DARE“It is not the critic who counts, or how the strong person stumbled and fell, or where the doer of deeds could have done better. The credit belongs to those who are actually in the arena, whose faces are marred by dust and sweat and blood, who strive valiantly, who err and come short again and again, who know the great enthusiasms, the great devotion, and spend themselves in a worthy cause; and if they fail, at least fail while daring greatly; so that they will never be with those cold and timid souls who walk the earth knowing neither victory nor defeat.”

• Joyful work places• Jack welch – engaging culture.• Arranging Competitive meets.• Introducing QCS / Kaizens autonomous

groups. • Arranging off-work place meets – family

meets, get together, games.• Arranging Indoor games, gyms, yoga, music,

swimming facilities etc.• Converting work places as fun-places to

treat boredom and monotony etc.

Try to make work a play and create the atmosphere where employee enjoy every minute of working.

Laughing, Playing, Exercising Yoga being encouraged.

Create upbeat and juvenerating atmosphere.

Workplace becomes a place of worship.This requires : -

Change in the mind sets of shop floor managers.

Facilitators / Enabler than controller.Leading from front by setting

example.Let the idea be prevailed that no work

is low and no employee – small.Creating and enabling culture.Creating a learning culture.Peter Drucker – “ The real value of an

orgainsation will lie in its people’s ability to think and learn.

Squirrel in the Ramayana.Lone Man picking the tinny fishes and

throwing them in sea.Adhering the value- Yudhister & the

dog.Hell & Heaven – all in pattern of

working.

Herry Keller – “ The world is moved not by mighty shovels of heroes, but by aggregate of tinny pushes of each honest workers.”