Building Culture and Climate, Importance and Role of A

BUILDING CULTURE AND
CLIMATE,IMPORTANCE AND
ROLE OF A LEADER (CASE STUDY)
ORGANISATIONAL CULTURE
“Culture is the set of important understandings that members of a
community share in common. It consists of patterned ways thinking,
feeling, and reacting that are acquired by language and symbols that
create a distinctiveness among human groups. A system of shared
values is the building block of culture.”
- Vijay Sathe
TYPES OF CULTURE
• Authoritarian and Participative cultures
• Mechanistic and Organic Cultures
• Dominant Culture and Subculture
• Strong Culture and Weak Culture
• Bureaucratic Culture
• Clan Culture
• Entrepreneurial Culture
• Market Culture
• AUTHORITARIAN AND PARTICIPATIVE CULTURES
• There is centralization of power with the leader and obedience to orders and discipline are stressed. Any disobedience is punished
severely to set an example to others. The basic assumption is that the leader knows what is good for the organization and he always
acts in interests. Participative culture tends to where most organizational members see themselves equal.
• MECHANISTIC AND ORGANIC CULTURES
• Individual specialization: Employees work separately and specialize in one task. In this Hierarchy of authority is well-defined.
Mechanistic culture is much of written communication.
• Joint Specialization: Employees work together and coordinate tasks. There are task forces and team prepared. Organic culture is much
of verbal communication.
• DOMINANT AND SUBCULTURE
• Dominant culture is a set of core values shared by a majority of organization's members. It is macro view of beliefs and values.
• Subculture is a set of values shared by relatively small number of organizational members.
• STRONG CULTURE AND WEAK CULTURE
• A strong culture has strong values and leadership. It is always widely shared. It has a great influence on the behavior of its members.
Benefits of this culture is reduced turnover and positive employee attitude. A weak culture is just opposite of strong culture.
• BUREAUCRATIC CULTURE
• A bureaucratic culture is a hierarchical and formal organization that has several levels where tasks, authority and responsibilities
are delegated between departments, offices or people. This structure is held together by a central or main administration, and it
has led to the development of modern civilization.
• CLAN CULTURE
• A clan culture is a family-like or tribe-like type of corporate environment that emphasizes consensus and commonality of goals and
values. Clan cultures are the most collaborative and the least competitive of the four main corporate culture models.
• ENTREPRENEURIAL CULTURE
• An entrepreneurial culture is an environment where someone is motivated to innovate, create and take risks. In a business, an
entrepreneurial culture means that employees are encouraged to brainstorm new ideas or products. When work time is dedicated
to these activities, it is called entrepreneurship.
• MARKET CULTURE
• Market Culture is a relative term to describe: The overarching culture of a business relating to the attention it focuses on
markets/customers. The skills used to create value for customers. The level of belief that the ultimate purpose of the business is to
create superior customer value, profitably.
SCHEIN’S THREE LEVELS OF ORGANISATIONAL
CULTURE
Visible but often undecipherable
Greater level of awareness
Taken for granted and invisible

Observable Artifacts
ORGANISATIONAL HEROES
This concerns the behavior of top executives and their leadership styles. These
leaders become the role models and represent what the company stand for and
reinforce the values of the culture.
CEREMONIES AND RITES
This reflects such activities that are enacted repeatedly on important occasions.
Members who have achieved success are recognized and rewarded on such
occasions. These ceremonies bond the members together. Example picnics,
retirement dinners, annual convocations etc.
STORIES
Stories about the organizational heroes are the powerful tool to reinforce
cultural values throughout the organisation and specially in orienting new
employees.
CULTURAL SYMBOLS
Symbols communicate organizational culture by unspoken messages. Certain
code of dress or company’s logo can reflect its values and orientations.
SHARED VALUES
• Values are the second and deeper level of culture and are
reflected in the way individuals actually behave. Values reflect
an organisation’s underlying beliefs to what should be and
should be not. Values are those principles and qualities that
shape our thinking and behavior.
• Values are emotionally charged priorities. These are learned
during the process of socialization, through family
environment of upbringing and through religious influences
where values are given holy tinge.
COMMON ASSUMPTIONS
• Assumptions are the deepest and most fundamental level of
an organisation’s culture. These are deeply held beliefs which
are not objectively observable but manifest themselves in the
behavior of people so strongly that any violation of such
beliefs would be unthinkable.
• The first assumption is that people are basically good.
• The second assumption is that people are willing to learn,
grow, and achieve if they are afforded proper opportunities.
• The third assumption rest on the belief that people are
motivated by challenging work.
Organizational Climate
Organizational Climate is a set of characteristics that

describe an organization and that :
• Distinguish one organization from another
• Are relatively enduring over a period of time
• Influences their behavior of the people in the
organization
Features of Organizational climate
• It is an abstract and intangible concept. But it exercises a

significant impact on the behavior and performance of
organizational members .
• It refers to the relatively enduring characteristics which remain
stable over a period of time .
• It gives a distinct identity to organization .
• It is a total expression of what the organization is . It is the
summary perception which people have about the
organization.
• It is a multi-dimensional concept. It consists of all
organizational factors e.g.- authority pattern, communication
pattern , control etc.
ELEMENTS OF ORGANIZATIONAL
CLIMATE
• Individual Autonomy- Employees have freedom ,have
decision making power and are not continuously
accountable.
• Fair rewards- It means organization rewards individual
for hard work or achievement.
• Reasonable job pressure- If the management is task
oriented, the employees have to speed up the pace to
work to please their bosses.
• Job Satisfaction – The satisfaction the workers get on
their job is also an important component of
organizational climate. The employees feel happy in the
organization
Org. Culture Vs Org. 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.
CASE-STUDY

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BUILDING CULTURE AND

• MECHANISTIC AND ORGANIC CULTURES

• DOMINANT AND SUBCULTURE

• STRONG CULTURE AND WEAK CULTURE

Visible but often undecipherable

Greater level of awareness

Taken for granted and invisible

Organizational Climate is a set of characteristics that

• It is an abstract and intangible concept. But it exercises a

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