Module-3

Organizational
Culture
 Organization culture is the set of basic
assumptions , values , morals and Norms
that guide and direct an individual
behave in specified way.
 Culture is social principle, goals or
standards held by members of an
organization, individually or
collectively.
Defining organizational culture

…a collective understanding, a shared

and integrated set or perceptions,
memories, values and attitudes that
have been learned over time and which
determine the expectations of behavior
that are taught to new members in
their socialization into the organization.
Understanding culture for organizational change

Impact of culture
Culture gives identity, provides
collective commitment, builds
social system stability and allows
people to make sense of the
organization
(Sannwald, 2000)
 5 Elements of Culture


 Values

 Values are heartfelt beliefs about the

appropriate way to behave. Values
constitute the should and shouldn't of
individual and cultural life.
 Norms

A norm is an expected and

accepted behavior:
"It's the way we do things around
here." These social standards of
behavior may or may not be
consistent with individual or
cultural values.
Organizational Support Systems

There are a variety of mechanisms

that define and perpetuate the
culture. Formal structures such as
laws, rules and policies play an
important role. And informal
structures such as the "grapevine"
are also powerful.
Information about organizational support
can be organized into the following 10
broad categories: (1) modeling; (2)
recruitment and selection; (3)
orientation; (4) training; (5) rewards and
recognition; (6) confrontation; (7)
communication systems; (8)
relationships and interactions; (9)
symbols, myths and rituals; and (10)
allocation of resources.
 Peer Support

 Family, friends and coworkers assist one

another in a variety of ways. When most
people think of peer support, they think
about listening and advice giving. In its
negative form such advice is sometimes
called nagging.
 Climate

 Some cultures embrace needed change

while other cultures are highly resistant.
Three attributes seem to determine a
culture's receptivity to change--sense of
community, shared vision and positive
outlook
 Definition
 Organizational culture : comprises the
attitudes, experiences, beliefs and
values of an organization.
 It has been defined as "the specific
collection of values and norms that are
shared by people and groups in an
organization and that control the way
they interact with each other and with
stakeholders outside the organization.
 Organizationalvalues are beliefs and
ideas about what kinds of goals
members of an organization should
pursue and ideas about the appropriate
kinds or standards of behavior
organizational members should use to
achieve these goals.
 Organizational values develop
organizational norms, guidelines or
expectations that prescribe appropriate
kinds of behavior by employees in
particular situations and control the
behavior of organizational members
towards one another"
Five core cultural values

Integrity
Respect & Trust
Excellence
Individual fulfillment
Profitable growth
 Definition
 Organizational culture can loosely be defined
as the shared assumptions, beliefs, and
"normal behaviors" norms of a group.
 These are powerful influences on the way
people live and act, and they define what is
" normal" and how to sanction those who are
not "normal." To a large degree, what we do is
determined by our culture.
 Organizational culture is similar to, say,
regional culture. The same person in
different organizations (or parts of the
same organization) would act in different
ways.
What we do is determined
by our culture.
What Is Organizational Culture

Characteristics:
2. Innovation and risk
taking
3. Attention to detail
4. Outcome orientation
5. People orientation
6. Team orientation
7. Aggressiveness
8. Stability
Institutionalization: A Forerunner of Culture
What Is Organizational Culture
 British Airways

Culture is very powerful. (One

example is the cultural change effort
at British Airways, which
transformed an unprofitable airline
with a poor reputation into a
paragon of politeness and
profit).
Stages in the Socialization
Process
A Socialization Model
How Organizational Cultures Have an Impact
on Performance and Satisfaction
Ways of Transmitting Organizational Culture

Formal socialization
practices

Ceremonial
Employees The
Rites
learn organizational
and
through: language
Ceremonies

Signs, symbols, stories

Strong Vs Week Culture
 Depends on how widely the & intensely the core values of
the organization are upheld & accepted.
 Strength of the organization depends on –
 Sharedness- Refers to the degree to which the core
values are accepted & shared by its members.
 The greater the value of sharedness of the core values the
stronger will be the culture of the organization.
 Shardeness depends upon-
 The kind of orientation given to the employees at the time
of joining.
 Reward system
 Induction program
Strong Vs Week Culture
 Intensity
 Refers to degree to which the members
of the organization are committed
towards its core values.
 Results in strict adherence to core
values
 Strengthens the organizational culture
 Influenced by the reward system of the
organization
Functions of culture
 Boundary defining Role
 Values, traditions & rituals
 Sense of Identity :
 Enhances employee commitment towards
organizational goals.
 Collective Commitment
 Common values, assumptions & ideologies upheld
by the members.
 Stability of social System
 Acts as social bond among the members of the
organization
 Brings uniformity in the behavior of the employees.
 Cultural GAP

 Where are we now as a culture?

 Where do we need to be going
strategically as an organization?
 What are the gaps between where we
are as a culture and where we should
be?
 What is our plan of action to close those
gaps?
 Manycompanies have turned
themselves around, converting imminent
bankruptcy into prosperity.
Some did it through financial gimmickry,
but the ones who have become stars did
it by changing their own culture.
 The underlying causes of many companies'
problems are not in the structure, CEO, or
staff; they are in the social structure and
culture. Because people working in different
cultures act and perform differently, changing
the culture can allow everyone to perform
more effectively and [Link]
applies to colleges and schools as much as it
applies to businesses.
 Chrysler-Cultural change

 In the early 1990s, company had terrible

customer service and press relations,
with a history of innovation but a present
of outdated products. Its market share
was falling, and its fixed costs and
losses were high.
 Chrysler-Cultural change

 Bob Lutz, then the president, wanted

Chrysler to become the technology and
quality leader in cars and trucks –
 a clear, globally applicable vision.
 A program of cultural change, Customer
One, was built around it.
 Culturalchange is neither easy nor
foolproof. It can take time - at least one
year, more likely between three and six
years - and it takes effort and vigilance.
A great deal of patience and long-term
support is needed.
 The proponents of change must model
the behavior they want to see in
others carefully. If they do not send a
consistent messag`e and keep that
message clear and dominant over time,
cultural change may be seen as just
another fad.
 Frequently, change becomes harder when the
organization starts to turn around. At Chrysler,
the pace of change dropped off
dramatically when profits started to
appear regularly, and [Link] began to
fatten middle management again, adding
layers between line workers and decision
[Link] is an ever-present
danger when changes start to take effect.
 The example of Chrysler also shows that
cultural change, though powerful, is
always subject to the whims of senior
leaders. In the late 1990s, Chrysler CEO
Robert Eaton chose to sell the company
to Daimler-Benz (at an immense
personal profit).
 Strategy for cultural change

There are two alternative approaches to

culture charge –
Top Down and Bottom Up.

 The top down approach is referred to as

programmatic charge and is introduced
& steered by the top or senior manager.
 Top down approach

These generally focus on employee

behavior & tend to extend to entire
organization.
The typical changes involved in this
approach are
 Structural change,
 Relocation of spaces,
T & D, empowerment,
 Quality initiatives and so on.

Culture transformation is perceived

as the task of a leader.
 Bottom up Approach

 The bottom up changes involves

incremental changes and are linked with
an organization “critical path”

 Here change is initiated by manager in
one part of the organization.
 There is no formal structure / system,
the focus is on solving a concrete
business problem.
 Developing people capabilities,
enhancing & mobilizing commitment.
&shared vision
 Cross cultural contents

With the advent of technology and the

global village making its mark, the
number of business travelers from and
to different countries has increased
multifold in the past last 15years.
The world has literally become very small.
This has brought in the need of knowing
and understanding the various cultures
of the countries that we travel to in order
to clearly understand the needs and deal
with them appropriately.
 Anyculture is primarily a system for
creating, sending, storing and
processing information.
 Basic mental attitudes

 Every body is affected by childhood

experiences.
 These experiences create negative or
positive reaction in us.
 Our reaction tend to be repeated as an
repeatedly experiences the situation
which creates +ve or – ve reactions
I am OK - you are not OK
 I am not OK – you are OK
 I am not OK – you are not OK
 I am OK - you are OK
 SPACE

 Personal space is a form of territory. Each

person has around him an invisible bubble of
space which expands and contracts
depending on his relationship to those around
him, his emotional state, his cultural
background and the activity he is performing.
Few people are allowed to penetrate this bit of
mobile territory, and then only for short periods
of time.
 Time

 Situation
 People
 Structure
 Policy
 Architecture Change Management

 The art or practice of designing and

building structures and especially
habitable ones, formation or
construction as (or as if as) the result of
a conscious act,
 architectural product or work,
 a method or style of building.
 Theobjective of this phase is to
establish an Architecture Change
Management process for the new
Enterprise Architecture baseline that is
achieved with completion of the
Implementation governance phase.
 This process will typically provide for the
continual monitoring of such things as
new developments in technology and
changes in the business environment,
and for determining whether to formally
initiate a new architecture evolution
cycle.
 The Architecture Change Management
process is very closely related to the
architecture governance processes of
the enterprise, and to the management
of the Architecture Contract between the
Architecture function and the business
users of the enterprise.
 Registration of all events that may
impact the architecture.
 Resource allocation and management
for architecture tasks.
Culture Change Process
STRATEGY FOR A CULTURE
CHANGE
Strategy for a cultural change
 The following are the four generic change scenarios.
We shall look at the particular management
challenges involved in initiating and implementing
each type of change.

 These scenarios are:-

 Structural change.
 Mergers and acquisitions.
 Cultural change.
 IT-based process change.
 The whole process begins with an internal or external
trigger for change.

 We will develop our new vision, mission and values.

We have to adjust one or all of following.

 The organizational structure.

 The commercial approach.
 The organizational culture.
 The relevant process.
GUIDELINES FOR ACHIEVING SUCCESSFUL
CULTURE CHANGE IS GIVEN BELOW

 Always link to organizational vision, mission and objectives.

 Create a sense of urgency and continually reinforce the need to

change.

 Attend to stakeholder issues.

 Remember that ‘the how’ is as important as ‘the what’.

 Build on the old, and step into the new.

 Generate enabling mechanisms such as the reward
systems, and planning and performance
management systems that support the objectives and
preferred behavior of the new culture.

 Managers need to act as role models

 Create a community of focused and flexible leaders

during period of change.

 Insist on collective ownership of the changes.

CULTURE CREATION OCCURS IN THREE WAYS

 Founders hire and keep only employees who think and

feel the same way they do.

 They indoctrinate and socialize these employees to

their way of thinking and feeling. And

 Finally, the founder’s own behavior acts as a role

model that encourages employees to identify with
them and there by internalize their beliefs, values and
assumptions.
TRANS GLOBAL CONTENTS
Cultural training will strengthen your
international relationship:-

 Now you can gain a crucial advantage in the

global market place. Get to know the behavior
and business practices of your business pattern.
This is the key to successful long term
relationships. Our culture awareness, training will
enable you to learn and apply your new
understanding effectively.
Cultural briefings on specific countries or
regions:-
 If you are going to have contact daily with
overset partners you will benefit from cross
cultural skill our focus will depend on which you
will be based – at home or in the target country. A
cultural briefing will give you a thorough insight
into their social and business life.
General cultural awareness training:-

 Perhaps you need more general cross – cultural

skill we can give you practical cultural onwards
training to improve your Trans national
communications and from effectiveness. Typical
solution include from building, global
presentations, employee communication and
cross cultural coaching.
CROSS CULTURAL
CONTENT
CROSS CULTURAL CONTENT

 With the advent of technology and the global village

making its mark, the number of business travelers
from and to different countries has increased multifold
in the past last 15 years. The world has literally
become very small.

 This has brought in the need of knowing and

understanding the various cultures of the countries
that we travel in order to clearly understand the needs
and deal with them appropriately
 INTERGROUP DEVELOPMENT

 A major area of concern in OD is the dysfunctional

conflict that exists between groups. As a result,
change efforts have been directed toward improving
intergroup relations

 Intergroup development seeks to change the attitudes

stereotypes, and perceptions that groups have of each
other
 Although there are a number of approaches for
improving intergroup relations, a popular method
emphasizes problem solving.

 In this method, member of each group meet

independent to develop lists of their perception of
themselves, the other group and how they believe the
other group perceives them.

 The group then store lists offer which similar and

differences are discussed.
 Are the group goals at odds?

 Were perception distorted?

 On what basis were stereotypes formulated. Have

some differently by each group?
 Answer to question like these clarify the exact nature
of the conflict.

 Once the causes of the difficult have been identified,

the groups can move to the integration phase and
work to develop solutions that will improve relations
between the groups.

 Subgroups with members from each of the conflicting

groups can now be created for further diagnoses are
to begin to formulate possible alternative actions that
will improve relations.
CHANGE ARCHITECTURE
 ARCHITECTURE CHANGE MANAGEMENT

 Provides for continuous monitoring of new

developments in technology and changes in business
environment.

 Determines whether to initiate a new architecture

evolution cycle or not.

 It provides for changes to the framework and

principles set up in preliminary phase.
 APPROACH

 The goal is to ensure changes to architecture

are managed in a cohesive and architected
way.

 To establish and support the implemented

ENTERPRISE ARCHITECTURE as a dynamic
architecture.
 A DYNAMIC ARCHITECTURE is one having flexibility
to evolve rapidly in response to changes in technology
and business environment.

 Change management process determines,

 The circumstance under which the Enterprise
Architecture will be permitted to change after
implementation.

 The circumstances under which the Enterprise

Architecture development cylce will be initiated again
to develop to new architecture.
 The process is closely related to the architecture
governance process of enterprise.

 The government body has to establish criteria to judge

whether an update is required or a new cycle of
architecture development method.

 Avoid creeping elegance.

 DRIVERS FOR CHANGE

The technology related drivers for change are as

follows:-

 New Technology reports.

 Asset Management Cost Reductions.
 Technology Withdrawal.
 Standard Initiatives.
Business Drivers for Change are as follows:-

 Business as usual developments.

 Business Exceptions.
 Business Innovations.
 Business Technology Innovations.
 Strategic Change.
 CHANGE MANAGEMENT PROCESS

 Determines how changes are to be managed,

techniques applied and methodologies used.

 Needs a filter function which determines which phases

of architecture development process are impacted by
requirements.
 3 architectural change categories are,

SIMPLIFICATION CHANGE
Can be handled via change management
techniques.

INCREMENTAL CHANGE
Capable of being handled or require partial re-
architecting or techniques, depending on nature of
change.
RE-ARCHITECTING CHANGE

Requires putting the whole architecture through

the architecture development cycle again.