ORGANIZATIONAL CULTURE AND CLIMATE

By:M. Chakrapani (22017)

M. Vennela (22018)Venkatesh (22020)

Niranjan Nahak (22021)P. Sai Anusha (22022)V. Aishwarya (22023)

P. Nithin Reddy (22024)

What is Organizational Culture?

• A system of meaning shared by the organization’s members

• Cultural values are collective beliefs, assumptions, and feelings about what things are good, normal, rational, valuable, etc.

Culture’s Overall Function

• Culture is the social glue that helps hold an organization together by providing appropriate standards for what employees should say or do.

Elements of Organizational Culture

Visible

• Unconscious, taken-for-granted perceptions or beliefs

• Mental models of ideals

Shared assumptions

• Conscious beliefs• Evaluate what is good or bad, right or

wrong

Shared values

ArtifactsArtifacts

• Stories/legends• Rituals/ceremonies• Organizational language• Physical structures/décor

• Stories/legends• Rituals/ceremonies• Organizational language• Physical structures/décor

Invisible(below the surface)

How EmployeesLearn Culture/

How it is “reinforced”

How EmployeesLearn Culture/

How it is “reinforced”

MaterialSymbolsMaterialSymbols

LanguageLanguage

StoriesStories RitualsRituals

How OrganizationalCultures Form

Philosophyof the

Organization’sFounders

Philosophyof the

Organization’sFounders

OrganizationalCulture

OrganizationalCultureSelectionSelection

TopManagement

TopManagement

SocializationSocialization

The Culture Iceberg: 90% hidden

Values, beliefs, norms, customs, nonverbal behavior, etc.

Level of conscious awareness

Observable symbols, ceremonies, slogans, stories, dress, physical settings, decoration, etc.

Shorter, easier to change

Long term, difficult to

change

Do Organizations Have Uniform Cultures

Do Organizations Have Uniform Cultures

CoreValues

SubculturesDominantCulture

Benefits of Strong Corporate Cultures

StrongOrganizational

Culture

SocialControl

ImprovesSense-Making

SocialGlue

Contingencies of Org Culture & Performance

Strong organizational cultures do not always result in higher organizational performance because:

1. Culture content might be misaligned with the organization’s environment.

2. Strong cultures may focus on mental models that could be limiting

3. Strong cultures suppress dissenting values from subcultures.

Adaptive Organizational Cultures

• External focus -- firm’s success depends on continuous change

• Focus on processes more than goals

• Employees assume responsibility for org performance– They seek out opportunities

• Proactive and responsive

Strengthening Organizational Culture

Bicultural Audit

• Part of due diligence in merger

• Minimizes risk of cultural collision by diagnosing companies before merger

• Three steps in bicultural audit:1. Examine artifacts2. Analyze data for cultural conflict/compatibility3. Identify strategies and action plans to bridge cultures

Merging Organizational Cultures

Assimilation

Deculturation

Acquired company embraces acquiring firm’s cultural values

Acquiring firm imposes its culture on unwilling acquired firm

IntegrationCultures combined into a new composite culture

SeparationMerging companies remain separate with their own culture

Org. Culture Vs Org. Climate

• Culture refers to ideologies, values and norms as reflected in stories and symbols. We would look for clues to the culture, for example, in accounts of the organizations founding.

• Climate, on the other hand, refers to the psychological environment as reflected in attitudes and perceptions.

Climate Debate

Organizational Climate is a relatively enduring quality of the

internal environment of an organization that

a- is experienced by its members

b- influences their behavior

c- can be described in terms of the values of a particular set

of characteristics of the organization

Elements of Climate• Quality of Leadership• Amount of Trust• Communication, upward and downward• Feeling of useful work• Responsibility• Fair rewards• Reasonable job pressure• Opportunity• Reasonable controls, structure, and bureaucracy• Employee involvement, participation.

Climate Influences

Motivation Performance Satisfaction

Thank You