PRAHLADRAI DALMIA LIONS

COLLEGE OF COMMERCE AND

ECONOMICS

ORGANIZATIONAL
BEHAVIOUR
Topic:
Organizational Culture

Prepared by: Group 2

Class: S.Y.B.M.M. Div.: A
Submitted to: Prof. Minu Paul

_________
Sign
 INDEX
Sr. no. Topics
1 Introduction
2 Characteristics of Organizational
Culture
3 Functions of Organizational Culture
4 Types of Organizational Culture
5 Creating Organizational Culture
6 Maintaining Organizational Culture
7 Transmitting Organizational Culture
8 Effect of Organizational Culture
9 Changing Organizational Culture
 Project Prepared by:
2011 – Bhushetty Virat
2012 – Borana Rahul
2013 – Kalpita Chatim
2014 – Chokshi Karan
2015 – Riddhi Chordia
2016 – Vepashyana Dube
2017 – Fernandes Aldrich
2018 – Sibin Sabu
2019 – Gidla Shashikant
2020 – Rohan Gujar
 INTRODUCTION
Organization culture
Organizational culture encompasses values and behaviors that
"contribute to the unique social and psychological environment
of an organization "According to Needle organizational culture
Represents the collective values, beliefs and principles of
organizational members and is a
Product of such factors as history, product, market, technology,
strategy, type of employees,
Management style, and national culture; Culture includes the
organization's vision, values, norms, systems, symbols,
language, assumptions, environment, location, beliefs, and
habits.
A cultural institution or cultural organization is an organization
within a culture/sub-culture that
Works for the preservation or promotion of culture. The term is
especially used of public and
Charitable organizations, but its range of meaning can be very
broad. Examples of cultural
Institutions in modern society are museums, libraries and
archives, churches, art galleries.
Organizational culture refers to culture in any type of
organization including that of schools,
Universities, not-for-profit groups, government agencies, or
business entities. In business, terms
Such as corporate culture and company culture are often used
to refer to a similar concept. The
Term corporate culture became widely known in the business
world in the late 1980s and early 1990s. Corporate culture was
already used by managers, sociologists, and organizational
Theorists by the beginning of the 80s. The related idea of
organizational climate emerged in the
1960s and 70s, and the terms are now somewhat overlapping.

If organizational culture is seen as something that characterizes

an organization, it can be
Manipulated and altered depending on leadership and
members. Culture as root metaphor sees
The organization as its culture, created through communication
and symbols, or competing metaphors. Culture is basic, with
personal experience producing a variety of perspectives.
Characteristics of Organizational
Culture

1. Innovation: Some organizations encourage its employees to

be creative and generate new ideas where as some
organizations strictly go by the rules laid down in the company
manual.

2. Stability- Some organizations prefer to maintain stable work

where some organizations encourage too much change. They
prefer to maintain stable and predictable work.

3. People orientation- Management focuses on people before a

decision is made.
For example, Infosys technologies

4. Result orientation- Management focuses on the results or

outcomes rather than the methods used for obtaining the
result.
For example, reliance industries
5. Easygoingness- In some organizations the work environment
is relaxed and laid back where in some organizations the
atmosphere is aggressive and competitive.
For example, public sector banks

6. Attention to detail- Employees in the organizations are

expected to show precision, analysis and attention to detail.

7. Team orientation- The work activities are organized in teams

rather than individuals.
For example, software development companies.
Functions of Organization Culture

Organizational culture is a system of shared assumptions,

values, and beliefs that governs how people behave in
organizations. ... Specifically, the culture of an organization
performs the following functions: The culture of an
organization provides organizational members with a sense of
identity.
Culture acts as a means of social control through norms,
folkway, and moves laws. Thus culture functions too deeply
influence control and direct behavior and life of the individual
and of group. All these functions are controlled through norms
or rules made in society.
Culture defines situations. (Actions and behavior of leaders)
Culture is the treasury of knowledge
Culture provides behavior pattern. ([Link] providing code of
conduct)
An organization gives identity to its members. For e.g.
Manger post in a society members.

A functional organizational structure is a structure that

consists of activities such as coordination, supervision and
task allocation.
Types of Organizational culture

 Clan Culture:
This working environment is a friendly one. People
have a lot in common, and it’s similar to a large family.
The leaders or the executives are seen as mentors or
maybe even as father figures. The organization is held
together by loyalty and tradition. There is great
involvement. The organization emphasizes long-term
Human Resource development and bonds colleagues by
morals. Success is defined within the framework of
addressing the needs of the clients and caring for the
people. The organization promotes teamwork,
participation, and consensus.

• Adhocracy Culture:
This is a dynamic and creative working environment.
Employees take risks. Leaders are seen as innovators and
risk takers. Experiments and innovation are the bonding
materials within the organization.
 • Market Culture:
This is a results-based organization that emphasizes finishing
work and getting things done. People are competitive and
focused on goals. Leaders are hard drivers, producers, and
rivals at the same time. They are tough and have high
expectations is emphasized.

• Hierarchy Culture:
This is a formalized and structured work environment.
Procedures decide what people do. Leaders are proud of their
efficiency-based coordination and organization. Keeping the
organization functioning smoothly is most crucial. Formal rules
and policy keep the organization together.
 Creating Organizational
Culture
A deliberate effort to build a specific type of
Organizational culture.

Happens when an entrepreneur Forms an

organization to pursue a Vision or when managers of an
Existing organization form a new Operating unit.

The new culture needs an ideology that is

understandable, convincing, and widely discussed.

Ideology is a key tool forgetting commitment to the

vision from organization members.
 Effects of Organizational
Culture
• Organizational Performance:
There have been no conclusive findings with regard to the
relationship between organizational culture and the
organization’s performance.
Studies have found that a strong organizational culture
leads to a strong organizational performance. That is
widespread acceptance of values and norms among
organizational members will contribute to a strong
performance in the organization.
• Length of employment:
The nature of the organization’s culture is one of the
important factors that determine whether an employee will
stay on the job or not. Research has found that employees
stayed longer in cultures that placed importance on pleasant
internships than organization’s that emphasized the
importance of hard work.

• Attract employees:
 A strong organizational culture will attract high level
talent. The high level talent entering corporations want to go to
the companies that offer opportunities for advancement and to
show off their talents. The best people can be choosy and they
will strongly consider the companies where the organizational
culture appears effective and positive and the workers get
along with each other and are united in their goals of making
the company better.
• Person-organization fit:
Research has found that when the values of the individual
and those of the organization match each other than the
employee will be more satisfied and is less likely to leave the
organization. The greater the person-organization fit, higher is
the level of satisfaction.
• Build momentum:
A strong culture creates energy and momentum. Once a
strong organizational culture is built, it will gain a momentum
of its own and will help to allow people to feel valued and
express themselves freely. The excitement and energy this will
cause will end up being a positive influence that affects every
part of the organization. Positive influence that affects every
part of the organization.
Changing Organization Culture
Changes in the external world often compel organizations to
either change or modify their culture. Changes in government
policies, market conditions, and new technology are some of
the factors that could upset the stable nature of organizational
culture and result in its change.
The culture of an organization may change due to the following
reasons:
1. Changes in the composition of the workforce: As people
with different backgrounds and values enter the workforce,
changes in organizational culture follows. This is because the
new employees may hold different views about various aspects
of behavior at work.
2. Mergers and acquisitions: Dramatic changes can occur in
organizational culture when one organization is purchased or
absorbed by another. This can also result in 'culture clashes’.
Often the larger organization tries to dominate and impose its
culture on the smaller one resulting in serious problems.
3. Planned organizational change: Organizations sometimes
make conscious and deliberate decisions to change their ways
and structure of working. For example, the organization may
focus on goals different from those in the past or there might
be changes in the recruitment policies. Such changes result in
new norms of behavior, attitudes and values emerging.