MODULE - 5

UNDERSTANDING
CULTURE
 CHAPTER OBJECTIVES
• Understanding Culture
• Strong and weak cultures
• Types of Cultures
• Importance of Culture
• Creating and sustaining culture
• Culture and strategy
• Implications for practicing managers
 CHAPTER OBJECTIVES
FORCES OF CHANGE
• Meaning and definition
• Forces of Change
• Resistance to change
• Types and forms of Change
• Organisational Evolution and sustenance--- organisational life cycle
• Models of Transformation
• Models of Organisational Decision making
 LEVELS OF ORGANISATIONAL
CULTURE
• Behavioural system
• Ideational System
• Cultural system

• Behavioural system
• It includes observable manifestations in the form of verbal and non verbal responses
,language, material design, art forms.
• The symbolic representation of ideas ,concepts, values and norms through rituals
relationships also constitutes the behavioural system.
• Ideational system
• It includes system of values and beliefs.
• System of norms,etical standards,stereotypes,prejudices ,ingroup,out group
codes of conduct, attitudes and orientations ideologies constitute the
ideational system.

• Cultural paradigm
• It represents basic assumptions held by organisational members regarding
the relationship of the organisation to its environment. These assumptions
are the sources from which various dimensions of ideational and behavioural
systems are derived.
 TEN DIMENSIONS OF
ORGANISATIONAL CULTURE

1.Individual Initiative
2.Rsik tolerance
3.Direction.
4.Integration
5.Management support.
6.Control
7.Identity
8.Reward system
9.Conflict Tolerance
10.Communication patterns
Forces of change
ORGANISATIONAL
EVOLUTION AND
SUSTENANCE
 ORGANISATIONAL LIFE CYCLE
• A very useful model of organizational growth has been developed by
Larry E. Greiner. In his 1998 Harvard Business Review article entitled
“Evolution and Revolution as Organizations Grow,” Greiner outlined five
phases of growth punctuated by what he termed “revolutions” that shook
up the status quo and ushered in the successive stage.
• Greiner’s Model of organizational growth is based on certain
assumptions about the organization which are as under:
• First assumption is organisations are rigid, bureaucratic, control-centric, and
centralized entities.
• Second, organisations fail to see that the future success of an organisation lie
within their own organisation, and also fail to assess their evolving states of
development.
• Therefore inability of a management to understand its organisation
development problems can result in organisation becoming frozen in its
present stage of evolution (failure to evolve) regardless of market
opportunities
• Before discussing the Greiner’s Model of organizational growth, first let us
define the two terms: evolution and revolution. Evolution is used to describe
prolonged period of growth where no major upheaval occurs in
organisation practices.
• The term revolution is used to describe those periods of substantial turmoil
in organisational life. Each evolutionary period creates its own revolution, as
organisation progresses through developmental phases.
• For instance centralized practices eventually lead to demand
for decentralization. Moreover the nature of management’s solution to each
evolutionary period determines whether organisation will move forward into
next stage of evolutionary growth.
•
• There are five phases in Greiner’s Model of organizational growth —
creativity, direction, delegation, coordination and collaboration followed by a
particular crisis and management problems. It can be argued that growing
organizations move through five relatively calm periods of evolution, each
of which ends with a period of crisis and revolution.
1.Creativity Stage.
• Growth through creativity is the first phase. This phase is dominated by the
entrepreneurs of the organizations and the emphasis is on creating both a
product and a market.
• However, as the organization grows in size and complexity, the need for
greater efficiency cannot be achieved through informal channels of
communication.
• Thus, many managerial problems occur which the entrepreneur may not
solve effectively because they may not be suited for the kind of job or they
may not be willing to handle such problems.
2.Direction Stage.
• When leadership crisis leads to the entrepreneurs relinquishing some of their
power to a professional manager, organizational growth is achieved through
direction.
• During this phase, the professional manager and key staff take most of the
responsibility for instituting direction, while lower level supervisors are treated
more as functional specialists than autonomous decision making managers.
• Thus, directive management techniques enable the organisation to grow, but they
may become ineffective as the organisation becomes more complex and diverse.
Since lower level supervisors are most knowledgeable and demand more
autonomy in decision making, a next period of crisis — crisis of
autonomy begins. In order to overcome this crisis, the third phase of growth —
growth through delegation — emerges.
3.Delegation Stage.
• Resolution of crisis for autonomy may be through powerful top managers
relinquishing some of their authority and a certain amount of power
equalization. However, with decentralization of authority to managers, top
executives may sense that they are losing control over a highly diversified
operation.
• Field managers want to run their own show without coordinating plans,
money, technology or manpower with the rest of the organisation and
a crisis of control emerges. This crisis can be draft with the next
evolutionary phase — the coordination stage.
4.Coordination Stage.
• Coordination becomes the effective method for overcoming crisis of control. The
coordination phase is characterized by the use of formal systems for achieving grater
coordination with top management as the watch dog.
• The new coordination system proves useful for achieving growth and more
coordinated efforts by line managers, but result in a task of conflict between line and
staff, between head quarters and field.
• Line becomes resentful to staff, staff complains about un-cooperative line managers,
and everyone gets bogged down in the bureaucratic paper system. Procedure takes
precedence over problem solving; the organisation becomes too large and complex to
be managed through formal programmes and rigid systems.
• Thus, crisis of red — tape begins. In order to overcome the crisis of red-tape, the
organisation must move to the next evolutionary stage — the collaboration stage.
5.Collaboration Stage.
• The Collaboration stage involves more flexible and behavioural approaches
to the problems of managing a large organisation.
• While the coordination stage was managed through formal systems and
procedures, the collaboration stage emphasizes greater spontaneity in
management action through teams and skilful confrontation of
interpersonal differences. Social control and self — discipline take over
from formal control.
• Though Greiner is not certain what will be the next crisis because of
collaboration stage, he feels that some problems may emerge as it will centre
round the psychological saturation of employees who grow emotionally and
physically exhausted by the intensity of team work and of the heavy
pressure for innovating solutions.
 THE CAMERON AND WHETTON
MODEL
1.The Entrepreneurial stage.
2.The Collectively stage
3.The formalization and control stage.
4.The elaboration stage
5.The Decline Stage.
1.Entrepreneurial Stage
• Organisation is in in its infancy.
• Low formalization, goals are not clearly spelled out.
• Creativity is strong

2.Collectivity Stage
 Clear mission and hard work

3.Formalization and Control Stage

5.The Decline Stage

Characteristic Non -bureaucratic Pre-bureaucartic Bureaucratic Very bureaucratic

Structure Informal, one person Mostly informal, some Formal Procedures, Team work within
show procedures division of labour, bureaucracy, small
specialities added. company thinking
Products and services Single product or Major product or Line of products or Multiple product or
service service with variations services service lines

Reward and control Personal ,Paternalistic Personal, contribution Impersonal Extensive, tailored to
systems to success. ,formalized systems product and
department
Innovation By owner manager By employees and By separate innovation By institutionalised R
managers group and D
Goal Survival Growth Internal Stability, Reputation, complete
market expansion organisation
Top management style Individualistic, Charismatic direction Delegation with Team approach, attack
entrepreneurial giving control bureaucracy
ORGANISATIONAL
DECISION MAKING
 Decision Making models
• Organizational decision making is the process by which one or more
organizational units make a decision on behalf of the organization. The
decision making unit can be as small as an individual, e.g., a manager, or as large as
the entire organizational membership
• There are four organizational decision making models. These are known as
• (i) Rational model,
• (ii) Political model,
• (iii) Garbage can model, and
• (iv) Process or programme model.
1.Rational decision-making model
• Do you need to make a complex, high-stakes choice? Are you making this decision with
other people? Are there strong emotions around the different options? And do you have
the time for serious thought and research?
• Then you’ll probably want to consider using the rational decision-making model.
• It has six steps:
• Define the problem
• Identify the criteria you will use to judge possible solutions
• Decide how important each criterion is
• Generate a list of possible alternatives
• Evaluate those alternatives
• Determine the best solution
 Process or programme Model
• A decision-making model is a system or process which individuals can
follow or imitate to ensure they make the best choice among various
options.
• A model makes the decision-making process easier by providing guidelines to
help businesses reach a beneficial conclusion.
 END OF MODULE
RD
FOR 3 SEMESTER