Download Part 1/5 - OB Notes

Organizational culture is a system of shared beliefs & attitudes that develop within
an organization & guides the behavior of its members. It is also known as
"corporate culture", & has a major impact on the performance of organization &
especially on the quality of work life experienced by the employees. Organizational
culture "consists of the norms, values & rules of conduct of an organization as well
as management styles, priorities, beliefs & inter-personal behaviors. Together they
create a climate that influences how well people communicate, plan & make
decisions".
CONCEPT OF ORGANIZATIONAL CULTURE: - Culture consists of beliefs &
behavior. It is cultivated behavior in the sense that it is learnt from the other
members of the society. Organizational culture is the totality of beliefs, customs,
traditions & values shared by the members of the organization. Organizational
culture stress on sharing of norms & values that guide the organizational members'
behavior. These norms & values are clear guidelines as to how employees are to
behave within the organization& their expected code of conduct outside the
organization.
NATURE OF ORGANIZATIONAL CULTURE:- The main features of
organizational culture are as follows:1. Like an individual, every organization has its own personality.
2. The personality of the organization defines the internal environment of an
organization.
3. It differentiates an organization from the others.
4. It is relatively enduring or stable over time.
5. It exercises a significant influence on the attitudes, behavior & performance
of organizational members.
Organizational culture is a set of beliefs, assumptions, values, shared feelings &
perceptions which influence the actions & decisions taken by the organizational
members. For e.g., if the culture encourages innovativeness, any problem will
make people take initiative & risks, & try out new ways of doing things. On the
other hand, if the organizational culture is security oriented, the same problem
situation would cause people to start looking for rules, procedures as a mode of
response.
"Organizational Climate" is different from "Organizational Culture".
According to Stephen P. Robbins "Organizational culture is a relatively uniform
perception held by the organization, it has common characteristics, it is
descriptive, it can distinguish one organization from another & it integrates
individual, group & organization system variables". Each & every organization
has a culture that influences the behavior of the employees toward colleagues,
supervisors, subordinates, clients, competitors, etc. Internal environment of an
organization is often referred to organizational climate. This makes one
organization unique; such differences are found in various kinds of employees in
terms of personal characteristics of members such as their values, needs,
attitudes, expectations, stay in organization. When considered collectively, the
actions of the individuals become more meaningful for viewing the total impact
upon the climate & determining the stability of the work environment. It should
be noted that the climate is to be viewed from a total system perspective. While
there may differences in climates within departments these will be integrated to
a certain extent to denote overall organizational climate.
ELEMENTS OF ORGANIZATIOAL CULTURE:- Following are the elements
of organizational culture:1. INDIVIDUAL AUTONOMY:- In this the individuals have responsibility,
freedom & opportunities of exercising initiative that an individual has in the
organization.
2. STRUCTURE:- In this the organization creates objectives, performance
expectations & authority relationships.
3. MANAGEMENT SUPPORT:- In this the managers provide clear
communication, assistance, warmth & support to their subordinates.
4. IDENTITY:- In this the members identify with the organization as a whole
rather than with their particular work group or field of professional
expertise.
5. PERFORMANCE REWARD SYSTEM:- Reward system of an organization
include increase in salary, promotions etc., is based on employee
performance rather than on seniority & favoritism.
6. RISK TOLERANCE:- In this employees are encouraged to be innovative,
aggressive & risk taking.
ROLE & SIGNIFICANCE OF ORGANIZATIONAL CULTURE:- Each
organization is recognized by its culture. Whenever people name an
organization, the culture attached to the organization is immediately recalled.
One organization is different from other organizations because of cultural
values, beliefs & norms. Following are the functions performed by
organizational culture:1. Organizational culture creates the boundary beyond which no employees are
allowed to go. They automatically observe the organizational standards &
norms of behavior.
2. An organization is well recognized by its culture. The culture of an
organization provides its stability. People like to continue with the
organization. Employees, customers, financers & other related persons like
to remain with the organization.
3. The social recognition of the organizational culture makes the organization
grow & develop in all ways.
4. Organizational culture acts as a motivator that guides & controls the
employees. Satisfied employees get more spirit & enthusiasm for performing
their jobs.
5. The attitude & behavior of the employees are directed towards the
achievement of goals through a sound culture. Disciplined employees make
other employees disciplined & well-behaved.
6. Culture gives rise to a positive attitude & behavior which are again an
addition to culture. Culture leads to good behavior & good behavior makes
good culture which is useful for better behavior. Both employees & the
organization enjoy culture.
A strong culture ensures better performance. Culture enhances organizational
commitment & increases the consistency of employee behavior.
TYPES OF ORGANIZATIONAL CULTURES:- Following are the types of
organizational cultures:1. AUTHORITARIAN & PARTICIPATIVE CULTURE:- In the authoritarian
culture there is centralization of power with the leader & obedience to orders
& discipline are stressed. Any obedience is punished severely to set an
example to others. The basic assumption is that the leader knows what is
good for the organization & he always acts in its interests.
2. MECHANISTIC & ORGANIC CULTURES:- The mechanistic
organizational culture has the values of bureaucracy & so is also called
"Bureaucratic Culture". Organizational jobs are created around narrow
specializations & people think of their careers mainly within these
specialization. There is a great deal of departmental loyalty. This sort of
culture resists change & innovation. In organic culture formal hierarchy of
authority, departmental boundaries, formal rules & regulations &
prescribed channels of communications are found. Emphasis is on task
accomplishment, team work, free flow of communication – formal &
informal. There is a understanding within the staff like at the of problems,
threats & opportunities the organization is facing & willingness to take part
in solving the problems. The cultures stresses flexibility, consultation, change
& innovation.
3. SUB-CULTURE & DOMINANT CULTURE:- Each department of an
organization may have its own culture representing a sub-culture of the
system. An organizational culture takes place when there is an integration of
all the departments. Within any given unit the tendency for integration &
consistency will be assumed to be present, but it is perfectly possible for
coexisting units of a larger system to have cultures that are independent &
even in conflict with each other.
CREATION OF CULTURE:- Organization culture provides the members with
a sense of organizational identity & generates a commitment. Though ideas that
become part of culture can come from anywhere within the organization, an
organization's culture generally beings with the leader who implements
particular ideas & values as a vision, philosophy or business strategy. When
these ideas & values lead to success, they become institutionalized & give shape
to an organizational culture.
Creation of an organization culture is a very lengthy & complicated process.
Culture has 3 levels. Namely:1. Artifacts.
2. Beliefs & Values.
3. Assumptions.
1. OBSERVABLE ARTIFACTS:- These are the symbols of culture in the
physical & social work environment & are most visible. Following are the
things found in artifacts:(i). ORGANIZATIONAL HEROES:- As a reflection of the organization's
philosophy, concerns the behavior of top executives & their leadership styles.
These leaders become the role models of an organization's culture. They
represent what the company stands for & reinforce the values of the culture.
(ii). CEREMONIES & RITES:- Ceremonies & rites tell about activities that are
done on important occasions. Members of the organization who have achieved
success are recognized & rewarded on such occasions. Annual convocations at
colleges & universities where degrees, diplomas & medals are distributed to the
students are reflections of culture in educational institutions. These ceremonies
bond organization members together. Such ceremonies as company picnics,
retirement dinners, encourage interpersonal communication & togetherness.
(iii). STORIES:- Stories about organization's heroes are powerful tools to
reinforce cultural values throughout the organization. These stories tell about
cultural network & remind employees as to why we do things in a certain way.
(iv). CULTURAL SYMBOLS:- Symbols tell about organizational culture.
Certain code of dress or company's logo can reflect its values. Some of the
material artifacts created by an organization might also speak of its cultural
orientation.
2. SHARED VALUES:- Values are reflected in the way individuals actually
behave. Values reflect an organization's beliefs as to what should be & what
should not be. Values are those principles & qualities that shape our thinking &
behavior. Values can be of 2 types. Namely:(i). INSTRUMENTAL VALUES:- Are beliefs that certain behaviors are
appropriate at all times irrespective of the objectives or outcomes.
(ii). TERMINAL VALUES:- Are beliefs that certain more tangible objectives
are worth striving for & the objectives become more important than the
behavior in achieving such objectives.
Values are emotionally charged. For example, Mahatma Gandhi in promoting
hand-woven khadi as against textiles produced by technologically sophisticated
machinery, expressed values of human survival.
3. COMMON ASSUMPTIONS:- Assumptions are the most fundamental level
of an organization's culture. These are deeply held beliefs which are not
objectively observed. For example, an organization may establish values based
on 3 basic assumptions. Namely:(i). People are basically good. This assumption is reflected in the company's
emphasis on trust.
(ii). People are willing to learn, grow & achieve if they are given proper
opportunities. This assumption is reflected in the company's extensive training
programs.
(iii). People are motivated by the challenging work. This assumption is reflected
by the process of common goal setting & goal achievement by participation of
members.
MAINTAINING A CULTURE:- Following are the practices that help to
maintain the culture:1. SELECTION PROCESS:- The main purpose of selection process is to select
right type of person for the right job. When for a given job 2 or more
candidates with identical skills & abilities are available then the final
selection is influenced by how well the candidate fits into the organization. It
is by selecting the candidates who can match the organizational culture, the
management can think of maintaining organizational culture.
2. ACTIONS OF TOP MANAGEMENT:- Besides managerial vision the
actions of the top executives also have a major impact on the organizational
culture. Through what they say & how they behave, senior executives
establish norms that help the organization to take risks, how much freedom
managers should allow their subordinates, what actions will pay off during
promotions & other rewards.
CONCEPT OF ORGANIZATIONAL CLIMATE:- Just as every individual has
a personality that makes him/her unique, each organization has an
organizational climate that distinguishes its personality from other
organizations. The concept of organizational climate was introduced by human
relations in the late 1940s. Now it has become very useful for thinking &
describing the social system.
Organizational climate is the summary perception which people have about an
organization. It is a global expression of what the organization is. Organization
climate helps to tell about the attitude of the organizational members towards
the organization itself.
FEATURES OF ORGANIZATIONAL CLIMATE:- Following are the features
of organizational climate:1. Organizational climate is an abstract & intangible concept. But it causes an
impact on the behavior & performance of organizational members.
2. It gives distinct identity to organization & differentiates it from other
organizations.
3. It is a total expression of what the organization is. It is the summary which
people have about the organization.
4. It is a multi-dimensional concept. It consists of all organizational factors, e.g.,
authority pattern, leadership pattern, communication pattern, control, etc.
ELEMENTS OF ORGANIZATIONAL CLIMATE:- Following are the elements
of organizational climate:-
1. INDIVIDUAL AUTONOMY:- It allows the employees to feel free to manage
themselves, have decision making power & are not continuously accountable
to the higher management. It means that individual have the freedom to
exercise responsibility.
2. POSITION STRUCTURE:- In this the objectives of the job & methods for
accomplishing it are established & communicated to the employees. In other
words it means the extent of direct supervision, formalization &
centralization in an organization.
3. REWARD ORIENTATION:- It means an organization rewards individuals
for hard work or achievement. Reward orientation is high when
organizations ask people to perform better & rewards them for doing so.
4. TASK ORIENTATION:- If the management is task oriented, the leadership
style will be autocratic. The employees will have to seed up the pace of work
to please their bosses.
5. RELATIONS ORIENTATION OR CONSIDERATION:- The organizational
climate will be considerate & supportive if the managers are relations
oriented while dealing with the workers. The needs of the workers will be
given due importance. This will produce team spirit in the organization.
6. JOB SATISFACTION:- The satisfaction the workers get on their jobs is also
an important part of organizational climate. The workers feel happy if the
jobs are designed to allow the workers to use their innovative skills.
ORGANIZATIONAL CLIMATE & EFFECTIVENESS:- Every organization
requires organizational climate to realize its objectives. The study of the climate
is necessary because it helps in communication, co-operation, creativity,
employee satisfaction & morale. All these determine the effectiveness of the
organization. An organization can be more effective if there are 2 way
communication & employees are co-operative & have better knowledge of the
organization. Such employees have higher job satisfaction & feel committed to
the organization. Their productivity will also be higher. Thus, good organization
climate helps in employee satisfaction, better human relations & higher
productivity.
Organizational climate influences satisfaction & performance through change in
behavior in different ways:1. It influences behavior through evaluation of the self & others such evaluation
is based on different physiological variables.
2. It causes problem upon individual freedom of choice & decision making. The
behavior is influenced by attaching different rewards & punishments.
3. It influences the behavior of the employee towards the whole organization &
of his own ability. Ability is influenced by the nature & clarity of the job,
degree of freedom, extent of authority, scope of responsibility, supervisory
support, training, safety, physical working conditions & previous experience.
EMPLOYEE MORALE:- Morale means extent to which individual needs are
satisfied & the extent to which the individual gets satisfaction is from his job.
Morale is direct & indirect satisfaction & need fulfillment through work. Morale
is based on both individual & group. In group high morale is reflected in good
team work & team spirit. In high morale situation people have few grievances,
frustration & complaints. They are clear about the goals & tasks – both
organizational & individual & interactions between them. Morale is sometimes
regarded as the effect of a complex of personality & situational variables. Job
content, nature of job, quality of supervision, types of rewards, family
circumstances, culture, working & living conditions have a positive influence on
morale.
NATURE OF MORALE:- Morale is multi-dimensional in nature in the sense
that it is complex mixture of several elements. It recognizes the influence of job
situation on attitudes of individuals & also includes the role of human needs as
motivational forces. Morale is mostly regarded as a long-term process. Raising
morale to a higher level & maintaining long-run & continuous process which
can't be achieved through short-run measures such as contests. Managers
cannot establish high morale once & then forget about it for years. High morale
is to be built & maintained by continuous efforts.
IMPORTANCE OF MORALE:- Morale is important for any organizational
success because it reflects the attitudes & sentiments of organizational members
towards the organization, its objectives & policies. These attitudes & sentiments
affect productivity & the satisfaction of individuals. Morale is the total
satisfaction of a person derives from his job, his work-group, his boss, his
organization & his environment.
TYPES OF MORALE:- Following are the types of morale:1. HIGH MORALE:- It exists when employees attitude is favorable towards
their fellow workers – favorable to total situation of the group & to the
attainment of its objectives. Employees with high morale like their jobs & cooperate fully with the management towards the achievement of goals of the
organization. It results in job satisfaction & increases job enthusiasm. High
morale of employees leads to the following benefits:(i). Willing co-operation towards objectives of the organization.
(ii). Loyalty to the organization & its leadership.
(iii). Good discipline i.e., voluntary conformity to rules & regulations.
(iv). High degree of employee's interest in the job & the organization.
(v). Pride in the organization.
(vi). Reduction of rates of absenteeism & labor turnover.
2. LOW MORALE:- It indicates the presence of mental unrest. The mental
unrest not only hampers production but also leads to ill-health of the
employees. Low morale exists when doubt & suspicion are common & when
individuals are depressed & discouraged, i.e., there is a lot of mental tension.
Such a situation will have the following consequences:(i). Higher rates of absenteeism & labor turnover.
(ii). Excessive complaints & grievances.
(iii). Frustration among the workers.
(iv). Friction among the workers.
(v). Lack of discipline.
MEASUREMENT OF ORGANIZATIONAL CLIMATE & MORALE:Following are measurement of organizational climate & morale:1. OBSERVATION METHODS:- A manager can measure the morale of his
subordinates by observing their attitudes & behavior towards the
management, co-workers & the work. Normally there is direct relationship
between morale & productivity. But it is possible that low productivity is
associated with high morale. Overall behavior of the employees should be
observed to determine the level of their morale.
2. MORALE SURVEY:- This is a formal method of knowing the morale of the
employees. A questionnaire maybe drafted & the employees maybe asked to
provide answers about their attitudes towards supervision, peers,
management & work. The data maybe compiled & classified to draw
interferences about the state of morale of the employees.
3. STUDY OF MORALE INDICATORS:- The attitudes of the workers can be
known by studying a large number of factors which reflect their behavior.
Some of these factors are as follows:(i). PRODUCTIVITY:- Generally low level of productivity is associated with low
degree of morale.
(ii). ABSENTEEISM:- Greater rate of absenteeism reflects a low morale. But
exceptions maybe there due to sickness, etc.
(iii). JOB SATISFACTION:- If the workers are satisfied with their jobs, their
morale will be higher.
(iv). RELATIONS WITH OTHER EMPLOYEES:- The morale of the workers is
high, if they feel belongingness & togetherness among themselves.
(v). NUMBER OF ACCIDENTS:- Generally, low morale leads to more
accidents.
(vi). NUMBER OF GRIEVANCES:- If the number of grievances increases, there
will be low morale of the workers.
(vii). EMPLOYEE TURNOVER:- If there is higher employee turnover due to
avoidable causes, there will be low morale.
BUILDING SOUND ORGANIZATIONAL CLIMATE & MORALE:- Sound
organizational climate can be developed over a long period of time. The type of
climate that an organization seeks is contingent upon its members, its technology
& other variables. Organizational climate should represent the philosophy &
goals those who have created & who run the organization. In order to develop a
sound organizational climate, managers must understand their people in the
organization. Their efforts should be to develop an organizational climate. This
will also build up the morale of the employees.
It is a very complex job to build & maintain high morale in a work-group. It is a
continuous process which cannot be stopped. Following are the techniques which
help to maintain high morale of workforce:-
1. INCENTIVE SYSTEM:- There should be a proper incentive system in the
organization to ensure monetary & non-monetary rewards to the employees
to motivate them. Morale has been found to be low in organizations where
economic needs of the workforce are not met adequately.
2. WELFARE MEASURES:- Management must provide for employees welfare
measures like canteens, credit facilities, sports clubs, education facilities for
their children. Management's concern for workers welfare will increase the
goodwill of the management in front of the workers.
3. EFFECTIVE COMMUNICATION SYSTEM:- There should be 2 way
communication between the management & the workers to influence on
morale. The workers should be kept informed about the organization's
policies & programs through conferences, bulletins & informal discussions
with the workers. They should be allowed to ask questions & satisfy
themselves about their doubts.
4. SOCIAL ACTIVITIES:- Management should encourage social group
activities by the workers. This will help to develop greater groups which can
be used by the management for building high morale.
5. WORKERS PARTICIPATION:- There should be industrial democracy in
the organization. Management should allow workers participation in
management. Whenever a change is to be introduced which will affect the
workers, they must be consulted & taken into confidence. Workers must be
allowed to put forward their suggestions on the matters affecting their work
life to the top management.