1 An Overview of Organizational Culture and Organizational Change* Dr.T.S.Devaraja Associate Professor & Head Department of Commerce University of Mysore, Hassan-573220, Karnataka State, India. Tel: Mobile: +91-98807-61877 : +91 – 8172-65100 Fax: +91-8172-240674 Web: http://devaraja.me Email: [email protected]Venugopal Research Scholar, Department of Commerce Post Graduate Centre University of Mysore Hassan, India --------------------------------------------------------------------------------- This research report has been a part of the ongoing research study carried out by the authors
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An Overview of Organizational Culture and Organizational Change*
Dr.T.S.Devaraja Associate Professor & Head Department of Commerce
University of Mysore, Hassan-573220, Karnataka State, India.
Mean Scores could range from 0 to 100, representing a percentage out of 100. (Source: Angel A Berrio ,2003)
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The major findings of the above study indicate that three dimensions of
organizational culture displayed a distinctive profile from the overall culture profile of the
organization in current and preferred situations. The dimension labeled as “Dominant
Characteristics” is concerned with what the overall organization is like. The Adhocracy
classification in the preferred situation is not in agreement with the overall culture profile
of the organization, but in agreement with the finding that no statistically significant
difference was found between the mean scores of the Clan and Adhocracy cultures in the
preferred situation.
The dimension labeled as “Organizational Leadership” is related to the dominant
leadership style and approaches used by leaders and administrators in the organization.
The Hierarchy classification in the current situation of this dimension is not in agreement
with the overall culture profile of the organization. In terms of the leadership style the
employees perceive its leaders and administrators as currently having a Hierarchical type
of culture, wanting them to change to a preferred Clan culture type.
The dimension labeled as “Strategic emphasis” is concerned with the definition of
areas of emphasis that drive the organization’s strategy. The Adhocracy classification in
both the current and preferred situations are not in agreement with the overall Clan
culture exhibited by the organizations, but are in agreement with the finding that no
statistically significant difference was found between the mean scores of the Clan and
Adhocracy cultures in both current and preferred situation.
As can be seen from the above findings, it is the dominant cultural factors,
leadership factors and strategy factors, which have lead to the majority of organizational
culture. All the three factors have also formed the important variables of the present
study also along with other factors.
12. Corporate Governance Reflected through Organizational
Culture
Corporate governance, through may be studied as a separate concept, the code of
conduct and ethical part of it lend themselves to be included in the study of
organizational culture. The code of conduct is generally explicitly stated, for an
organization.
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The corporate governance practices vis-à-vis organizational culture have also been
included as one of the objectives of the present study.
The model in the form of a framework proposed herein is to be fitted against the
leadership of the organization. It is through the organizational leadership, the corporate
governance is reflected. The present study has questions related to leadership, ethics
and corporate Governance. (For detailed questionnaire please refer to appendix)
Venugopal, et al (2011) have explored theoretical framework while examining
ethics leadership in the context of organizational culture. They argue that there is an
imminent imperative for the organizational leadership in the form of change in
perception. It is not the set of activities which create a value for the organization (and
thereby the society). But it is action; accordingly the perception should be revised to
‘Actions’.
Following is the list of such desired changes for an organization, seeking itself for
its increased effectiveness.
Existing Perception Revised Perception
Activity Action
Individualistic approach Collaborative approach
Fear of failure in reaching goals Joy of scaling new heights
Hard work Wise work
Imposing order Enlisting co-operation
Organizational productivity Social productivity
Non-conformity Conformity
Organization profit Beneficiary profit
The revised perception is essential not only for the economic prosperity but also
for the ethical prosperity of an organization. Out of the above list of perceptions, it is the
social productivity perception which leads to enhanced corporate governance.
They argue that morals or ethics, while taking the view of distributive justice
would ensure equitable distribution of benefits. Benefits, though include both tangible
and intangible elements, can be conveniently equated with economic benefits also,
which is one of the primary reasons for the existence of business. The revised perception
would also fit the Utilitarian theory of ethics viz. the principle that every one should act
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to generate the greatest benefits for the largest number of people. Hence it can be
argued that high ethical standards are supplementary to economic prosperity also. A
group can be conveniently construed as an organization. The leadership which emerges
as an offshoot of organization, which in turn operates in a society, is in fact shaping the
organizational culture through the organizational members i.e. employees.
Diagrammatically when depicted it would result in a triangle with individual
(employee), organization and society at the three apexes and leadership having a central
pivotal place. Thus the when the effect of corporate governance is seen in society, it is
to be understand that it can neither be above nor below the other two apexes of
triangle, namely individual (employee) and organization. However, it needs to be
emphasized that it is the organizational leadership, which has to balance all these three
apexes to an heightened degree.
Fig 2: Triangular Relationship Among Society, Individual And
Organization With Leadership At The Core
Leadership – for corporate
Governance
Society
Individual (Employee)
Organization
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13. Conclusion
Organizational culture being an important determinant of organizational performance
needs to be studied, not only for its description; but also for prediction. The business of
the organization whether in manufacturing or service, is dependent on how the cultural
elements are managed in the company. The study and findings come in handy for an
organization, while it looks to change its technology or strategy.
Several of the factors of ethics and corporate governance are shaped by
organizational culture and they also in turn shape organizational culture. It was studied
with respect to the following associated elements.
a. Ethical conduct and honesty
b. Conflict level, the employees feel while confiding with their superiors
c. Senior members understanding of their own decisions and its implications
d. Empowerment of employees
e. Effectiveness of decision making process.
The values cherished by the organization, the style in which it is imbibed and
propagated through various leadership styles are important aspects of organizational
culture. A large part of organizational culture can be directly traced to internal factors or
internalities as explained elsewhere. Many of the dimensions in the form of stories,
jargons, rituals etc., are explicit also. As can be conjectured organizational culture is a
combination of both. However both of them needs to be integrated properly for the
betterment of the organization.
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