This document discusses organizational culture and climate. It defines organizational culture as shared meanings and beliefs within an organization that act as social glue. Culture is composed of visible elements like stories and rituals as well as invisible elements like shared values and assumptions. Culture forms through top management philosophy and is reinforced through stories, rituals, language and symbols. While strong cultures can benefit organizations, they do not always lead to higher performance if not aligned with the environment. The document also defines organizational climate as the psychological environment reflected in attitudes. It discusses how climate influences motivation, performance and satisfaction within an organization.
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)
2.
What is OrganizationalCulture?
• 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.
3.
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.
5.
Elements of OrganizationalCulture
Artifacts
•
•
•
•
Stories/legends
Rituals/ceremonies
Organizational language
Physical structures/décor
Visible
Shared values
• Conscious beliefs
• Evaluate what is good or bad, right or
wrong
Invisible
(below the surface)
Shared assumptions
• Unconscious, taken-for-granted
perceptions or beliefs
• Mental models of ideals
The Culture Iceberg:90% hidden
Observable
symbols, ceremonies
, slogans, stories, dr
ess, physical
settings, decoration,
etc.
Values, beliefs,
norms, customs,
nonverbal behavior,
etc.
Shorter,
easier to
change
Level of
conscious
awareness
Long term,
difficult to
change
Benefits of StrongCorporate Cultures
Social
Control
Strong
Organizational
Culture
Social
Glue
Improves
Sense-Making
15.
Contingencies of OrgCulture &
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.
16.
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
Bicultural Audit
• Partof due diligence in merger
• Minimizes risk of cultural collision by diagnosing
companies before merger
• Three steps in bicultural audit:
1. Examine artifacts
2. Analyze data for cultural conflict/compatibility
3. Identify strategies and action plans to bridge cultures
19.
Merging Organizational Cultures
Assimilation
Acquiredcompany embraces acquiring
firm’s cultural values
Deculturation
Acquiring firm imposes its culture on
unwilling acquired firm
Integration
Cultures combined into a new composite
culture
Separation
Merging companies remain separate with
their own culture
20.
Org. Culture VsOrg. 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.
21.
Climate Debate
Organizational Climateis 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
22.
Elements of Climate
•
•
•
•
•
•
•
•
•
•
Qualityof 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.