organisation climate

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Contd


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Organization A

This organization is a manufacturing firm. Managers are expected to fully document all

decisions; and good managers are those who can provide detailed data to support their

recommendations. Creative decisions that incur significant change or risk are not

encouraged. Because managers of failed projects are openly criticized and penalized,

managers try not to implement ideas that deviate much from the status quo. One lower-

level manager quoted an often used phrase in the company: If it aintbroke, dont fix it.

There are extensive rules and regulations in this firm that employees are required to

follow. Managers supervise employees closely to ensure there are no deviations.

Management is concerned with high productivity, regardless of the impact on employee

morale or turnover.

Work activities are designed around individuals. There are distinct departments and

lines of authority, and employees are expected to minimize formal contact with other

employees outside their functional area or line of command. Performance evaluations and

rewards emphasize individual effort, although seniority tends to be the primary factor in the

determination of pay raises and promotions.

Contrasting Organizational Cultures


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Contrasting Organizational Cultures (contd)

Organization B

This organization is also a manufacturing firm. Here, however, management encouragesand rewards risk taking and change. Decisions based on intuition are valued as much as

those that are well rationalized. Management prides itself on its history of experimenting

with new technologies and its success in regularly introducing innovation products.

Managers or employees who have a good idea are encouraged to run with it. And

failures are treated as learning experiences. The company prides itself on being market-

driven and rapidly responsive to the changing needs of its customers.There are few rules and regulations for employees to follow, and supervision is loose

because management believes that its employees are hardworking and trustworthy.

Management is concerned with high productivity, but believes that this comes through

treating its people right. The company is proud of its reputation as being a good place to

work.

Job activities are designed around work teams, and team members are encouraged

to interact with people across functions and authority levels. Employees talk positively

about the competition between teams. Individuals and teams have goals, and bonuses

are based on achievement of these outcomes. Employees are given considerable

autonomy in choosing the means by which the goals are attained.


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Characteristics of Culture

1. Innovation and risk taking

2. Attention to detail

3. Outcome orientation

4. People orientation

5. Team orientation

6. Aggressiveness

7. Stability


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Do Organizations Have Uniform

Cultures?Dominant Culture

Expresses the core values thatare shared by a majority ofthe organizations members.

Subcultures

Minicultures within anorganization, typically definedby department designationsand geographical separation.


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2005 Prentice Hall Inc. Allrights reserved.

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Do Organizations Have Uniform

Cultures? (contd)

Core Values

The primary or dominant values that are acceptedthroughout the organization.

Strong Culture

A culture in which thecore values are intenselyheld and widely shared.


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What Do Cultures Do?

Cultures Functions:

1. Defines the boundary between one organization and others.

2. Conveys a sense of identity for its members.

3. Facilitates the generation of commitment to something larger than

self-interest.

4. Enhances the stability of the social system.

5. Serves as a sense-making and control mechanism for fitting

employees in the organization.


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What Do Cultures Do?

Culture as a Liability:

1. Barrier to change.

2. Barrier to diversity

3. Barrier to acquisitions and mergers


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How Culture Begins

Founders hire and keep only employeeswho think and feel the same way they do.

Founders indoctrinate and socialize these

employees to their way of thinking andfeeling.

The founders own behavior acts as a role

model that encourages employees toidentify with them and thereby internalizetheir beliefs, values, and assumptions.


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How Organization Cultures Form


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Keeping Culture Alive

Selection Concern with how well the candidates will fit

into the organization.

Provides information to candidates about the

organization. Top Management

Senior executives help establish behavioral

norms that are adopted by the organization.

Socialization

The process that helps new employees adapt

to the organizations culture.


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Stages in the Socialization Process

Prearrival StageThe period of learning in the socialization process thatoccurs before a new employee joins the organization.

Metamorphosis Stage

The stage in the socialization process in which a newemployee changes and adjusts to the work, work group,and organization.

Encounter Stage

The stage in the socialization process in which a new employeesees what the organization is really like and confronts thepossibility that expectations and reality may diverge.


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A Socialization Model


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How Employees Learn Culture


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How Employees Learn Culture


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Case of Oakleys


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Bases of organizational Culture

Soft Culture Hard Culture

Formal Culture Informal Culture

Strong culture Weak Culture


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Functions of Organizational Culture


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Organizational Climate


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What is Organizational Climate?

Refers to meaningful interpretations of a work

environment by the people in it

Are social relationships warm and caring?

Are people treated fairly forrewards/recognition?

Do people take pride in excellence?

Organizational Climate is often referred to as

Corporate Climate


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Factors that inf luence Organizational Cl imate

Involvement

Co-worker Cohesion

Supervisor Support

Autonomy

Task Orientation

Work Pressure

Clarity

Managerial Control

Innovation

Physical Comfort


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How HR Practices influence Organizational

Climate?

Employee Relations

Employee Retention

Team building activities

done to bring feel good factor in

the organization

Payroll management

organisation climate

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