Human Resources/ms 01
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What are the determinants of organizational climate and culture? Briefly describe how do these affect various functions of the organization. Explain with examples from the organization you have worked for or familiar with. Specifically describe the situations and main features of the organization you are referring to with respect to the concepts referred in this question
What are the determinants of organizational climate and culture? Briefly describe how do these affect various functions of the organization. Explain with examples from the organization you have worked for or familiar with. Specifically describe the situations and main features of the organization you are referring to with respect to the concepts referred in this question.
The Climate of your Organization is the State of its Health
How your employees feel about their jobs, their supervisors, their peers, top management, and many other factors affects their individual productivity, and collectively the ability of the organization to achieve its objectives.
Without a formal process, finding out about employee attitudes usually relies on the manager's instincts or the employee's own willingness to communicate upward. But managerial instinct rarely provides the kind of hard data needed for decision making. And most employees are hesitant to communicate anything but positive information to their supervisors.
The formal process generally involves using a climate survey or questionnaire.
Organizational climate measures attempts to assess organizations in terms of dimensions that are thought to capture or describe perceptions about the climate.
1. Structure feelings about constraints and freedom to act and the degree of formality or informality in the working atmosphere.
2. Responsibility the feeling of being trusted to carry out important work.
3. Risk the sense of riskiness and challenge in the job and in the organization; the relative emphasis on taking calculated risks or playing it safe.
4. Warmth the existence of friendly and informal social groups.
5. Support the perceived helpfulness of managers and co workers; the emphasis (or lack of emphasis) on mutual support.
6. Standards the perceived importance of implicit and explicit goals and performance standards; the emphasis on doing a good job; the challenge represented in personal and team goals.
7. Conflict the feeling that managers and other workers want to hear different opinions; the emphasis on getting problems out into the open rather than smoothing them over or ignoring them.
8. Identity the feeling that you belong to a company; that you are a valuable member of a working team.
9.autonomy the perception of self determination with respect to work procedures, goals and priorities;
10.cohesion the perception of togetherness or sharing within the organization setting, including the willingness of members to provide material risk;
11.trust the perception of freedom to communicate openly with members at higher organizational levels about sensitive or personal issues, with the expectation that the integrity of such communications will not be violated;
12.resource the perception of time demands with respect to task competition and performance standards;
13.support the perception of the degree to which superiors tolerate members' behaviour, including willingness to let members learn from their mistakes without fear of reprisal;
14. recognition the perception that members' contributions to the organization are acknowledged;
15.fairness the perception that organizational policies are non arbitrary or capri¬cious;
16.innovation the perception that change and creativity are encouraged, including
risk taking into new areas where the member has little or no prior experience.
The organizational climate consists of:-
An organization’s structure is actually a ‘snapshot’ of a work process, frozen in time so that it can be viewed. The structure enables the people’s energy to be focused towards process achievement and goal achievement. Employee must have a clear definition of not only the work structure but also the role used to organize the work. If the structure and the role is not clear, people will not know what the work process is, who is responsible for what, whom to go for help and decision, and who can Assist in solving problems that may arise.
Organisational culture is the pattern of beliefs, knowledge, attitudes, and customs that exists within an organisation. Organizational culture may result in part from senior management beliefs or from the beliefs of employees.
Organizational culture can be supportive or unsupportive, positive or negative. It can affect the ability or willingness of employees to adapt or perform well within the organisation.
The most effective work culture is one that supports the organizations HR strategies by aligning behaviors, processes and methods with the desired results. It is not just achieving results but the methods through which they are achieved that are critical to long-term success.
Before any HR strategy is designed there must be a clear understanding of the organisation, its current values, its structure, its people as well as its goals and vision for the future.
Organization culture can be a set of key values , assumptions,
understandings and norms that is shared by members of an
Organization values are fundamental beliefs that an organization
considers to be important , that are relatively stable over time,
and they have an impact on employees behaviors and attitudes.
Organization Norms are shared standards that define what
behaviors are acceptable and desirable within organization.
Shared assumptions are about how things are done
in an organization.
Understandings are coping with internal / external problems
LEVELS OF ORGANIZATION CULTURE
LEVEL 1---VISIBLE, that can be seen at the surface level
-office layout [ open office]
-ceremonies[ monthly / annual awards/long service/birthdays etc.
LEVEL 2- INVISIBLE , that can be cannot be seen but only felt.
-stories about people performance
-symbols [ flag, trademark, logos, etc]
-corporate mission statements
-recruitment/selection [ methods used]
-fairness in treatment
-risk taking in business deals
-formality in approach
-autonomy for departments
-responsiveness to communication
-empowerment of staff.
THE ORGANIZATION, I AM REFERRING TO
The organization, I am familiar with is a
-a large manufacturer/ marketer of safety products
-the products are used as [personal protection safety] [ industrial safety]
-the products are distributed through the distributors as well as sold directly
-the products are sold to various industries like mining/fireservices/defence/
as well as to various manufacturing companies.
-the company employs about 235 people.
-the company has the following functional departments
COMPANY’S STRATEGY AND CULTURE
Strategy is the hard nosed approach to business that traditionally stresses the impact of
competitive advantage on the bottom line. Culture is paying attention to organizational and people needs.
T 0 unite strategy with culture:
a. First, develop a vision of the future.
b. Nurture a culture that is motivated and dedicated to the vision.
Most organizations are either strategy-deﬁcient or culture-deficient. Quality circles, Japanese style
management practices, continue to fail because executives have not made fundamental changes in their
attitudes and approaches. There: are three deadly attitudes that permeate the way traditional management
approaches these new methods. Generally the failure of these new practices are victim to short term
orientation, quick fix expectations and shallow thinking. Under the new age leadership approaches
leaders have begun to move away from the business school management practices where managers, set
goals, priorities and procedures. Organization, motivation and control over people are important.
Managers concentrate on analyzing situations and forming strategic plans. They respond to change
through new strategies and reorganization and implement change through new policies and procedures
with all effort directed towards achieving results.
New age leadership focuses on creative insight by asking the right questions. It orients on sensitivity,
vision, versatility, focus and patience. Managerial values have shifted over the past several years. What
has changed is the orientation towards quality, service, values, and to home and family. What has
remained constant is that we expect honesty and competence, that top management will see the climate
and our customers as our key stakeholders. People are no less committed to work - all they want is self
expression and organizational cooperation.
FOR STRATEGIC DECISIONS, THE APPROACH IS AS FOLLOWS:
THE COMPANY ANALYSES THE FOLLOWING DATABASE
AND APPLYS THE PROBELM SOLVING/ DECISION
MAKING APPROACH / FINALIZES THE PLAN.
-apply the pestel analysis with respect TO ITS BUSINESS
1.Political (incl. Legal)
-Environmental regulations and protection
[what are the government regualtions/ protection laws that must be observed ]
what tax hinder the business and what taxes incentives are available]
-International trade regulations and restrictions
[ does the government encourage exports / with high tariffs on imports]
-Contract enforcement law/Consumer protection
[does the government enforce on consumer protection ]
[ is the government encouraging skilled immigrants with temp. permits]
-Government organization / attitude
[ does the government have a very positive attitude towards this industry]
[ are there regulation for limiting competition]
[ politically , does the government have a very stable government ]
[ has the government adopted some of the modern safety regulations]
[ what is the economic growth rate / what are the reasons ]
-Interest rates & monetary policies
[ are the interest rates under control / is there a sound monetary policies]
[is government spending is significant and is it under control ]
[what is the employment / unemployment policies of the government ]
[ has the taxation encouraged the industry ]
[ is there well managed exchange controls and is it helping the industry]
[ is the inflation well under control ]
-Stage of the business cycle
[ is your industry is on the growth pattern]
[ is the consumer confidence is high/ strong and if not, why ]
[is there balanced income distribution policy ]
-Demographics, Population growth rates, Age distribution
[ what is population growth and why ]
-Labor / social mobility
[ what are the labor policies and is there labor mobility]
[ are there significant lifestyle changes taking place--more modernization/ why ]
-Work/career and leisure attitudes
[ are the population career minded and are seeking better lifestyle]
[ what are the education policies / is it successful ]
[are the people becoming fashion conscious ]
-Health consciousness & welfare, feelings on safety
[ are the people becoming health consciousness]
[ is the living conditions improving fast and spreading rapidly]
Government research spending
[is the government spending on research and development]
Industry focus on technological effort
[are the industries focused on using improved technology]
New inventions and development
[ are new inventions being encouraged for developments]
Rate of technology transfer
[ is the rate of technology transfer is speeding up ]
(Changes in) Information Technology
[ is the information technology rapidly moving and is there government support]
(Changes in) Internet
[ is the internet usage rapidly increasing and why]
(Changes in) Mobile Technology
[is the Mobile technology rapidly developing and is there government support]
Areas for opportunities and threats
* Markets [ what is the market situation, which is forcing the change requirements
*Customers [ how can service the customer -internal / external -better .
* Industry [ is the industry trend ]
* Competition [ is it the competitive situation
*Factors of business [ causing the change]
* Technology [ is it technology change ]
CONDUCT A ''SWOT'' ANALYSIS OF THE COMPANY'S RESOURCES.
Areas for strengths, weaknesses, and barriers to success
*Culture [ is the working culture change ]
* Organization [ is the organization demanding change ]
* Systems [ is it the systems change ]
* Management practices [ change in managemement process]
OTHER KEY DIMENSIONS
*Cost efficiency[ is it for cost efficiency ]
* Financial performance [ is it for financial performance improvement ]
* Quality [ is it for quality performance improvement
*Service [ is it for service performance improvement
*Technology[ is it for technology performance improvement
* Market segments [ is it for sales performance improvement
* Innovation[ is it for performance improvement
*new products[ is it for new product performance improvement
*Asset condition[ is it for financial performance improvement
*productivity[ is it for financial performance improvement
NOW THE CO. KNOWS WHERE IT STANDS.
FROM THE ABOVE , DETERMINE THE CORE ISSUES
WHICH NEEDS TO SOLVED WITH YOUR INVESTMENT.
FROM THE ABOVE CORE ISSUES , DETERMINE YOUR
Your CORE PURPOSE
Your CORE OBJECTIVES
Your Core markets;
Your CORE strategic thrusts.
The arena of products, services, customers, technologies, distribution methods, and geography in which you'll compete to get results.
WHERE DOES THE CO. WANTS TO GO
THE COMPANY ARRIVES AT THE FOLLOWING
DECISIONS AT THE END OF THE SESSIONS:
2.GROSS PROFIT BUDGET.
3.NET PROFIT BUDGET.
4.SALES TOTAL FORECAST.
5.SALES BY PRODUCTS.
6.OPERATIONAL EXPENSES BUDGET.
7.FIXED EXPENSES BUDGET.
8.PRODUCTIVITY IMPROVEMENT %
9.PROFITABILITY INCREMENT %
10. RETURN ON INVESTMENT.
Critical instrumental mechanisms for changing and managing culture include
-Strategic planning and the identification of necessarily cultural requisites
-Ensuring consistency of culture with mission, goals, strategies, structures and processes
-Creating formal statements of organizational philosophy and values
-Establishing consistent incentives, recognition systems, and performance measurement
-Maintaining appropriate error-detection and accountability systems
-Coaching, mentoring, informal and formal training, and identifying role models
-Embracing appropriate rites, rituals, symbols, and narratives
-Taking advantage of the growth of subcultures
-Managing and promoting strong communities of practice .
Several requisites for organizational success that organizational culture must now take into account:
-The organization must be proactive, not just reactive.
-The organization must influence and manage the environment, not just adapt.
-The organization must be pragmatic, not idealistic.
-The organization must be future-oriented, not predominantly present/past oriented.
-The organization must embrace diversity, not uniformity.
-The organization must be relationship-oriented, not just task-oriented.
-The organization must embrace external connectivity, as well as promote internal integration.
These fundamental assumptions are key to eliminating obstacles that will inhibit the kinds of internal and external organizational adaptations necessary for future success. They are not,
however, sufficient. They must be reinforced by values, behavioral norms and patterns, artifacts
and symbols, as well as accompanied by a particular mission, set of goals, and strategies.
Others emphasize more specific cultural mandates, such as that the modern organizational culture
-Knowledge and learning oriented .
-Alliance and partnership oriented .
-Another emerging mandate is to
-Know when to emphasize and how to balance cultural maintenance and cultural
-Managers must actively work to keep the existing organization culture relevant to the present and
future while maintaining some sense of continuity with the past.
Companies with long-term success had a limited but strong set of timeless core values that did
not prevent organizational change over time. These companies were able to preserve the core
while stimulating progress.
1. Organizational climate is something that is sensed rather than something that is recognized cognitively.
2. Climate is a set of attributes which can be perceived about a particular organization and/or its subsystems, and that may be induced from the way the organization and/or its subsystems deal with their members and environments.
3. Organizational climate is the combined perceptions of individuals that are useful in differentiating organizations according to their procedures and practices.
4. Organizational climate is the collective view of the people within the organization as to the
nature of the environment in which they work.
Inﬂuencing the Internal Environment Through Climate
Goals & Objectives
Measures of Climate
1. How much conﬁdence is shown in subordinates?
2. How free do they feel to talk to superiors about their job?
3. To what extent are subordinates’ ideas sought and used?
4. Is predominant use made of fear, threats, punishment, rewards, involvement?
5.Where is responsibility felt for achieving the organization’s goals?
6. How much cooperative teamwork exists?
7. What is the direction of communication flow?
8. How is downward communication accepted?
9. How accurate is upward communication?
10. How well do superiors know the problems faced by subordinates?
11. At what level are decisions made?
12. How are subordinates involved in decisions related to their work?
13. What/how does the decision-making process contribute to motivation?
14. How are organizational goals established?
15. How much covert resistance to goals is present?
16. How concentrated are review and control functions?
17. Is there an informal organization resisting the formal one?
18. What are cost, productivity, and other control data used for?
To Make the Climate Work
0 Clarity, common understanding, and congruent application by senior leaders and their staffs regarding
simply stated goals, objectives, priorities and command philosophy.
~ Understanding of the nature of organizational climate, its principal components, and its interactive
0 Taking actions to make the organizational climate directly support the organization’s goals, objectives,
priorities, and command philosophy.
I Embedding within the climate “the principle of rationality,” i.e.Do what seems right and sensible; and
questioning policies, procedures, and requirements that seen otherwise. Starting with the boss,
demonstrate downward the willingness to take calculated risks, with the calculations based on the principle of rationality.
I As the expected mode of leadership permeates downward, encourage, reward, and “tell stories about”
incidents of independent but disciplined actions in the absence of positive control. Follow through as this
occurs successively at lower and lower echelons and among more and more leaders.
Creating a Climate for Learning
Empowerment is what leaders can do to develop the capacity of their subordinates; creating a climate for learning.
Here are a few suggestions for developing capacity,
. Stop making decisions.
. Stop talking at staff meetings.
. Set up opportunities for coaching.
. Invite people to assume responsibility.
. Give everyone a customer (stakeholder).
Have an open house. Invite the customers (stakeholders).
. Enrich people’s jobs; demonstrate that they all have value and make a difference.
. Share the big picture.
Model the behaviors that you expect.
Contrasting Climate and Culture
Met Expectations --------Nature of Expectations
Norms - Behavior -------Values — Beliefs
organizations is essentially healthy, and willing, patients. They lack certain skills and may be handicapped by dysfunctional values, but these gaps ARE remedied through careful clinical work.
a. Focus on surprises in the organization.
b. Set yourself up with a method for systematic observation and checking of what the
organization does well and not so well.
c. Locate a motivated insider. A person within the informal system that can provide
insights to which one might not be aware.
d. Reveal surprises when they happen. Attempt to explain puzzlement and hunches.
e. Jointly explore (get others involved) to ﬁnd explanation.
f. Formalize hypothesis.
g. Systematically check and consolidate.
h. Push the level of assumptions. Go beyond the articulated values and get to the assumptions behind them.
As an example, we make assumptions about time. In reality, there are only three things that one can do with time.
a. Spend it.
b. Waste it.
c. Make good use of it.
But when it is over, it is gone forever. Time is a convenient target for blaming for our failures, mistakes
and for our lack of risk taking. Maybe this sounds familiar, “two weeks is certainly not enough time to
get to (open up) know to someone else, or, I’ve known, worked with, him/her so long, that I could never
tell the real truth.” It most likely has nothing to do with time, but with our reluctance to assume
responsibility and accountability for our own actions.
Another assumption that pervades our organizational culture is about truth. We should all be committed
to telling the truth, but culture tends to guide the way we choose to operate in our relationship with each
Other at work and at home. Telling the truth simply means a willingness to root out the ways we limit
Ourselves from seeing what is and to continually challenge our theories of why things are the way they
are. We always have the option of seeing the truth, no matter how blind or prejudicial we may be, if we have the courage.
Improving Organizational Communication
“communication can and does affect work adversely if not properly handled. There are graduations of degrees of these effects, ranging from a slight drag against the progress of the enterprise to the causing of errors or misunderstanding of the philosophical foundation of the main organization, and thereby make the output of the system virtually impossible,” stating further that, “one ever-present cause of faulty communication is that, language, whether oral or written, is itself faulty or imperfection when the meaning of words and sentences and equally the emotional content is ambiguous.”
Barriers and other associated problems common with organizational communication climate affect work productivity negatively especially where people and records are jointly managed together, such as the case of academic libraries. The extreme need to improve or find solutions to the highlighted problems and barriers is imperatively necessary.) recommends the under-listed improvement techniques among the operators and participants:
techniques to improve communication:
• Understanding of the background and culture of the receiver.
• Expectation of feedback
• Formal training in oral and written communication
• Knowing and understanding the sender
• Make the receiver's level of understanding clear to the sender.
• Understand the language and practices of the organizational unit to improve listening and interpretation.
• Feedback loop
• Reduce noise by using multiple channels.
5. The Organization
• Organization Communication Audit to assess the current state of the communication system.
• Electronic message system
• Voice mail
• Local Area Networking
• Global Satellite Communication Mobile
THE VARIOUS DEPARTMENTS FUNCTION WITHIN THIS CULTURE
-Focuses on the customers’ needs and increases the sales/ profit
-focuses on the customer service / relationships and increases the sales/profit.
-focuses on the quality/ efficiency/ effectiveness/ productivity and increases the profit.
4.HUMAN RESOURCE DEPARTMENT
-focuses on the quality recruitment/ skill ,
Knowledge, competence development and talent retention.