Can A Strong Culture Be Too Strong

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HRM CASE ASSIGNMENT

Can a strong culture be too strong?

Course: Human Resource Management


Instructor: Prof. Teena Bharti
Student name: Vishal S
Roll no: MBA\3098\09
Case: Can a strong culture be too strong?

1. Why is Parivar's employee turnover rate so high? What does it tell you about the
organization's management practices?

Parivar's employee turnover rate is high at 35%.

Critical factors related to the organization's management practices:

Strong "family-like" culture pushed by CEO Sudhir Gupta While this caring,
personal culture was initially attractive to employees. Some, like Amal,
now find it overbearing and prefer more professional boundaries.

Lack of differentiation/favouritism: Employees perceive an "in-crowd" that gets more personal


attention from the CEO and top executives. Others feel left out of this inner circle despite the
supposed family culture applying to all.

Compensation issues: A primary reason cited for employees leaving is that competitors are offering
30% pay raises that Parivar cannot match. While the culture was initially a draw, higher
compensation is now a bigger priority for some employees.

Rapid growth strains the culture: As Parivar multiplies, maintaining the personal family-like touch
across a larger workforce is becoming challenging.

2. What is your assessment of the people support idea? What should Pandit recommend to
Gupta when they meet?

From my assessment of the proposed "People Support" idea at Parivar, the idea has its benefits,
including reinforcing and institutionalizing Parivar's "family-like" culture, providing a formal
mechanism for grievance resolution, and demonstrating a commitment to supporting employees.
However, several challenges need consideration.

Challenges:

Formalizing an organic culture: Building processes around an organic culture can be complex and
may risk diluting the essence that employees are initially attracted to.

Evaluating success: The measurement of the success of this function is unaddressed.

International scalability: Extending the idea outside India as Parivar expands globally in countries like
the UK and the US could be challenging due to cultural differences and varying legal frameworks.

Cost associated: The cost of maintaining a dedicated "People Support" function across a growing
workforce needs careful consideration.
Pandit's recommendation to Gupta:

When Pandit meets Gupta, she should recommend a balanced approach that addresses the concerns
raised in the organization. Pandit can suggest Reassessing "Family Culture" for Attrition, Seeking
Broader Employee Input on "People Support", Prioritize Competitive Compensation, and Exploring
talent attraction and retention drivers strategies. After the changes, they can implement the pilot
program in a controlled environment.

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Case: Can a strong culture be too strong?

3. Considering the Hofstede model of culture, how can you tell that the culture is too strong?

The Hofstede model shows that culture becomes too strong when its key aspects like hierarchy,
teamwork vs. individualism, gender roles, risk aversion, and focus on tradition overly shape
everything, limiting diversity and outside ideas. Signs of this are strict social order, low acceptance of
different views, strict gender expectations, fear of change, and a heavy emphasis on the past, which
can slow down progress and creativity in a company or community.

Power Distance

There's a noticeable hierarchy, with specific individuals having more personal access to top leaders,
creating a feeling of exclusion among employees like Amal.

Individualism vs Collectivism in Workplace Culture

Parivar values a strong team spirit akin to a "family,"


prioritizing personal connections. However, some
employees, like Amal, prefer more professional
boundaries.

Masculinity vs Femininity in Organizational Values

Parivar's nurturing, people-centric approach leans,


which are further emphasized in the proposed "People
Support" function, promoting a caring ethos.

Uncertainty Reduction and Structured Culture

The family-like culture provides clear guidelines and


support, reducing employee uncertainties, but may
not align with those seeking more entrepreneurial opportunities.

Long-term Adaptability vs Tradition

Focusing solely on maintaining the current culture might limit the company's ability to adapt to
changing needs and market trends in the long run.

4. Referring to CEO Sudhir Gupta, what does he mean by "cult is part of culture"?

CEO Sudhir Gupta's statement "cult is part of the culture" is made in the context of a discussion
about the company's strong culture at Parivar, an IT services firm. The statement reflects Sudhir's
belief that the distinctive and close-knit culture within the organization, often described as family-
like, has elements that resemble a cult-like following or devotion. This suggests that the company's
culture, characterized by a sense of belonging, loyalty, and genuine care for employees, may have
aspects akin to a cult regarding the deep connections and commitment it fosters among its
members.

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