Work Culture Types n Imporance

Organizational Culture

By: Kriti Gupta

Mehak Singla

Akashdeep Singh

Abhineet Dhaliwal

CULTURE

Culture is the way of life of a particular society or group of people, including patterns of thought, beliefs, behavior, customs, traditions, rituals, dress, and language, as well as art, music, and literature.

Organizational Culture

Questions for Consideration

What is organizational Culture? What are the types of

organizational cultures? Do mergers and acquisitions

affect work culture?

What is organization culture??

The pattern of shared values, beliefs and assumptions considered to be the appropriate way to think and act within an organization. Culture is shared Culture helps members solve problems Culture strongly influences behavior

In word of Louis “A set of understandings or meanings shared by a group of people that are largely tacit among members and are clearly relevant and distinctive to the particular group which are also passed on to new members.”

Characteristics of Organizational Culture

Innovation and risk taking

Attention to detail

Outcome orientation

People orientation

Team orientation

Aggressiveness

Stability

Benefits of good organization culture

Talent attractor and talent retainer

Creates energy and momentum

Changes the view of work

Creates greater synergy

Makes everyone more successful

How can employees learn culture?

STORIES

RITUALS

LANGUAGE

MATERIAL SYMBOLS

Types of Cultures CONTROL (HIERARCHY)

COMPETE (MARKET)

CREATE (ADHOCRACY)

COLLABORATE (CLAN)

CONTROL(HIERARCHY)

Features:

Highly structures and formal place

Rules and regulations guide behaviour

Formal policies hold groups together

Stability and performance oriented

Example:

MC Donald’s – standardisation and efficiency

Ford motors - typical hierarchy structure of 17 levels

COMPETE(MARKET)

Features:

Leaders are demanding and productive

Result driven organization

Focus is on market share and penetration

Highly competitive

Example:

General Electric – highly competitive culture where performance speaks louder than process

CREATE (ADHOCRACY)

Features:

Highly dynamic and creative place to work

Innovation and risk taking are embraced by people

Emphasis on growth and acquiring new resources

Depends on ability of an entrepreneur to develop new product

Example:

NASA-Culture is highly flexible, innovative and temporary

COLLABORATE(CLAN)

Features :

Open and friendly place to work

Extended family and sense of togetherness

Group commitment and loyalty

Long term benefit of HR development

Example:

People express airlines-founder Don Burr

Importance of organization culture

It indicates direction in which organization will move in future

It is a powerful tool for guiding behaviour

Helps employees to do their work

Provides guidelines for day to day activities

Gives sense of belongingness to employees

Less labour turn over.

Diversification in Organisation Culture

IBM INNOVATIVE AND RISK TAKING

ATTENTION TO DETAILS

PEOPLE AND TEAM ORIENTED

AGGRESSIVE AND COMPITITIVE

LOW STABILITY

INNOVATIVE

Culture is highly innovative and highly risk taking in terms of technology, strategy and business model. It was ranked among one of the world’s most innovative companies by Business Week and Boston Consultancy Group

IBM has been granted more patents than any other company or individual. it has held the no 1 position for patents for the last 8 years

It has acquired 2886 patents from United States Patents and Trademarks office in a single year

ATTENTION TO DETAILS

Management demands its employees to be expert and precise in whatever they do

PEOPLE AND TEAM ORIENTED

Mgt is highly committed to its people. Informal discussions are a cliché to discuss work related issues

AGGRESSIVE

Employees are expected to be highly aggressive and competitive towards their duties and goals. They work for 45 hours a week and even on weekends

STABILITY

It is quite low. Management slack off all those who underperform or cannot meet to the expectations. Employees say than IBM has sweet shop culture

MICROSOFT BUREAUCRATIC CULTURE

PEOPLE BACK STAB EACH OTHER

CONFLICTS BETWEEN GOALS

DISSATISFIED EMPLOYESS

INDIVIDUAL CONTRIBUTION GIVEN IMPORTANCE OVER TEAMS

The environment inside company is dog eat dog types. For each person who gets a good performance review, an equal number of people must receive a "bad" performance review. This leads to cutthroat internal competition, a lack of empathy or friendship in the office, and generally an unfriendly environment.

Employees are highly dissatisfied. They are not paid for their extra efforts. Just a 3% hike in pay adds to their grievances

MS has a performance review system that values "individual" contributions over team work, everybody wants to make impact on everything. This leads to mutually exclusive ideas.

Mergers and Acquisitions

M & A can be compared to a marriage where a newly married couple has to adjust to new circumstances. When the two cultures are comparatively close to each other, it becomes easier to adjust.

Do mergers and acquisitions affect culture??

According to KPMG study. Around 83% of M & A fails to produce any benefits or they destroy value.When they tried to find out the reason, they concluded that it was people and cultural differences between organizations

People cannot shed values or norms of their prior organizations and adopt to the new culture instantly. The prior culture remains in the merged companies even after years of mergers

Once upon a time...

one observer attending an HP reception after the HP/Compaq merger commented that he “’could tell the H-P folks from the Compaq folks right away.’ The former Compaq employees, in suits and ties, huddled on one side of the room. Polo-shirted H-P staffers stood on the other.”

BMW & ROVER DIVORCE

BMW had acquired Rover in 1994. The acquisition proved problematic from the outset, both in terms of declining sales of Rover in the UK, and because of differences in management styles between the UK and Germany. In March 2000, due to such problems, the parent company announced its decision to sell its unprofitable British subsidiary. This was met by protests by British car workers and trade unions . A number of bids were then made for the company’s assets over years, resulting in their being sold to a Chinese bidder

The major problems were:

Difference in the mgt styles between Britain and Germany

In Britain , leadership style is more people oriented where as in Germany it is task oriented

GE MEDICAL SYSTEMS Under the leadership of Jeffrey Immelt, General Electric (GE) Medical Systems

acquired Marquette Medical Systems (MMS), a privately held company, in late 1998. Both organisations had a history as bitter rivals. Each company had very different organisational cultures. Marquette Medical projected a strong entrepreneurial culture as defined by its founder, who did not tolerate much bureaucracy. GE was part of a multinational corporation, heavily embarked with process orientation. Serious union avoidance issues and concerns about change in benefits and rewards structures existed at Marquette Medical.

Immelt and his leadership team spent significant time meeting with employees of both companies — to explain their vision for the new combined organisation. They worked to create a shared vision for the future that everyone could embrace. GE leadership personally address the concerns. They explained why these control requirements were necessary and how they would drive stronger business results for the combined organisation. This merger was a great success and helped Emmet into the top job at GE.

How to overcome effect of organisation culture to make M&A successful??

Forming a team which will be in charge of cultural integration. It will be responsible to define and implement the new culture in organisation

Evaluation of circumstances and risk involved in M&A in advance and work on the solutions before hand

Use M&A as a tool to obtain competency and skill rather than primarily increasing the size or efficiency of organisation

Work Culture Similarities and Differences

Europe India

Character

Adherence to specifications • Penalties in case of non- performance Promises have to be kept

Tend to generalize rather than being specific Incentives for completing the transactionConfirmations are flexible

PerspectivesPrecise & accurate Do it yourself attitude

Think practical Servants make life easier from childhood on

CommunicationClear & Brief Yes / No

Indirect way of communicating Saying no is impolite

Social StructuresLive in small families Generations go separate ways Need freedom, privacy is very important

Live in large families Strong bonding within the family Hardly any personal sphere, privacy, think in terms of ‘we’

BIBLIOGRAPHY B.McMenamin, “The Virtue of Making Mistakes,” Forbes (May 9,

1994), pp.192-94.

Stephen P. Robbins, “Organizational Behavior: Concepts, Controversies, Applications,” 7th edition.

Haworth org culture,4 org culture types, Bruce m Tharp.

<http://w3.ibm.com/technical/news/20010110_patent.html>.

http://www.icmrindia.org/casestudies

http://mergers-and-growth.com/media

Research paper on unraveling mystical Indian organizational culture by DR Uday Salunkhe

New York times