Concept of Management and Evolution of Management Thought

Prof. K.B. Akhilesh

Department of Management Studies
Indian Institute of Science, Bangalore

Lecture - 31
Organization Theory - II

Hello, in our past lectures we have examined different aspects of organization, we have also
examined different organizational theories, we have examined organizational change, the
drivers of organizational change, how to go about bringing about planned changes in the
organization and then we are discussing this various theories and particularly, we examined
the systems view of the organization systems theory of the organization. We will continue
our discussion to see and elaborate the organizational theories.

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In organizational theory, this particular lecture I think you focuses on the organization and it
is environment and particularly the how organizations go about reducing uncertainties, how
organization pursues its goals and then how can we think of organizational effectiveness, the
organizational goals and then we will also examine the types of goals and as we have defined
organizations as goal oriented systems it is extremely important to see and understand the
nature of goals and then we can relate human resource management and other functions of
management all contributing towards the overall performance and effectiveness of the
organizational system.

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The discussion about organizational effectiveness has come a long way, people have
approach this in terms of how do we look at this different approaches to measure these
organizational effectiveness, one can see in terms of resource acquisition, transformation
without can also see the kind of output of the organization, how recycling and environmental
friendly the organization could be the constituency and the satisfaction of this one can also
see in terms of climate of the organization as well as the culture it builds and supports.

So there are different approaches to measure organizational effectiveness. We will also see
how this multi view of organizational effectiveness has helped in building appropriate
measures and also focusing on the on the different aspects of managing any given
organization. Let us look at the reducing uncertainty, we talked about this in the previous
lecture essentially the uncertainty comes because of the heterogeneity of the environmental
elements, the relevant environmental elements that means one maybe having several lenders
with the organization or you are supplying to the multiple customers and then you also have
different suppliers, one is this the heterogeneity of these elements at the same time the rate of
change, they are dynamic and they are changing its preferences or methodologies, the
technologies.

So this fast changing nature of these environmental elements and the heterogeneous elements
always contributes for the complexity and when causing the effect relationships are not
known it increases that uncertainty. So the uncertainty threatens the organizational survival
and organization finds it difficult to cope and spends lot of energy in understanding and
developing strategies to deal with organizational uncertainties.

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So the organizational uncertainties means the environmental uncertainty, it also reduces its
effectiveness because then they are not in a position to satisfy one or more elements
internally or externally. So the most organizations adopt a variety of strategies to reduce
environmental uncertainty and depending on the kind of resources they have the kind of
alternatives before the organization defines the required strategy. So when we see the
different approaches, different strategies of reducing uncertainty. We can list the following
things one changing organizational structure, the changing organizational structure is where
particularly the environment is unstable, unstable in the sense that the time rate of change is
very high, the customer preferences are changing or the rules of the game, the standards itself
is changing then the organizational structure need to be responding to these external changes.
So it need to be informal that means less rules of the game then you know they decentralized
and also they coordinated by efforts of many individuals.

So as we are trying to see the organization structure has to be what people call it as profit
center kind of a thing, divisionalized kind of an organization and informal in the sense that
the rule implementation depends upon to the exact conditions prevailing at that point of time.
So they depending on the context depending on the external elements organization has to
bend its rules in its some in terms of responding to the customer requirements or the
conditions available in the market place.

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The other kind of an effort could be from the organization is planning and forecasting, see
here the organization can increase their capacity to respond to an unstable environment by
forecasting the kind of changes which is coming and also creating contingency plans
particularly, it is see you know seen in those organizations where they are exporting and one
of the key elements affecting their effectiveness is the exchange rates and also able to see the
changes in the political system of that country or they are able to forecast the kind of the
economic conditions or the growth in economic conditions of different countries and different
locations. The question is that how effectively the organization collect that required
information, analyze and get some kind of a patterns and then with that understanding they
take calculated risks.

So the planning and forecasting functions within the organization helps to classify, to codify
some of the things what is happening at the organizational environmental level. So that
appropriate capacities can be built or appropriate understanding can be developed within the
system. So that proper response can be there at different levels in the organization and also
one can have a backup plan the backup plan gives that kind of a if things go wrong. So
question in terms of the if and then analysis if those things can be done then it helps the
organization to see what kind of changes are likely to come and and regarding that the
organization would have a kind of a next level alternative plans.

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So that it can reduce that uncertainty. The third kind of a strategy what simply can be
described by co-option, co-option refers to any strategy of bring outside people into the
organization. So in other words what you are trying to do is to get some significant people on
board so on so that they feel obligated to contribute and the because of their organizational
involvement because we have involved them in the strategic decision making levels. So co-
option helps particularly, when the environment is hostile and also environment you really do
not know they cause effect kind of a relationship then it is better to bring some of the
significant people who are heard who are seen as important people.

So then if you bring them on board they can take care of the requirements, for example IIM
Ahmedabad had this you know or the N. R. Narayan Murthy as the chairman. So the question
is when some changes are happening at the highest level then the because of such senior
people involvement in the organization can help the organization to deal with and reduce that
required uncertainty and some of the people who also participated in different forums, in
different activities of the community can always it interpret, what is happening at the industry
level, what is happening at the societal level, what is happening at the policy level. So such
information when it is gathered and interpreted to the organization to that extent the
uncertainty gets reduced and the organization feels more comfortable to handle such
situation.

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The next strategy before the organization to reduce uncertainty is the public relations and
advertising. It becomes extremely important to get into that kind of a campaigns when the
when the organization is looking for more funds, organization is looking for investors and the
market rumors and market information you may not really know, how it is being shared or
who is creating what kind of understanding in the market place and that is the time where a
good advertising and public relations help the organization to reduce such ambiguities and
reduces that uncertainties.

So a clear positioning of the organization in the public domain would always help and a good
what one can call it as the public sympathy of the organization can always get that kind of a
support and the public perception becomes extremely relevant not only that all the important
stakeholders might be the unions or might be the investors or may be in the customers or it
may be the suppliers. It is good to get into that good relationships with them and also they got
media planning sending the required material and in different ways reaching the information
to them would all help the reducing that uncertainty because then the that confidence with of
the organization to initiate new activities or new programs get strengthened through that
reduction of uncertainty.

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The next one can call it as a political activity here the organization representatives try to
protect the interest of the organization by making members of the governing bodies aware of
the interest of the organization. So that means you also create that require lobbies, you also
create a required campaigns. So along with the public relations you also reach out to the
significant others in the community and involve them.

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So that the so that the capacity is built in the organization to deal with such situations, one
can also extend this to the what people would call it as illegal activities. So that means many
activities done by the organization which goes against the law of the land then many
organizations resort to illegal activities to control environmental uncertainties through
influencing people in power through illegal political contributions then promotions give you
know giving gifts, illegal kickbacks, commissions etcetera. So that they try and reduce these
things and the organization gets into a kind of a trap around these illegal activities. It is
extremely important to plan and promote organizational effectiveness through a systematic
understanding of the environmental elements, mapping these element and generating you
know the generating the kind of actions which requires a suitable and a proper response of the
relevant elements in the environment.

So let us look at the various dimensions of organizational effectiveness, organizational

effectiveness refers to the concept of organizational success or attainment of organizational
goals. So it is definitely the performance and one who would like to see it as performance
plus satisfaction, performance some hard aspects of the achievements as well as the soft, the
feeling aspect the emotional aspect about the achievements. So basically it is the it is the
induction of how well the organization is doing. So we need to define whether the
organization is performing or not and if performing, so what level of performance and with
what satisfaction.

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So the organizational effectiveness literature, the OE literature has established and then these
explore this dimension in different ways. Organizational goals have you know that the this
you know basically it is commonly shared by the most individuals. So it is meaningful to talk
about organizational goals and effectiveness together. So that one can see what kind of
consensuses what kind of understanding what kind of support is there within the
organizational system.

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So the consensual validation refers to a common belief that is widely shared among the
people of a large group. So it may be top management it maybe the middle management in
the functionaries and the kind of employees and the workers and also the outsiders if there is
a good alignment good understanding then the organizational goals strives as a kind of a
benchmark but when you see the goals of the organization it is both the official goals as well
as the operative goals.

So the types of organizational goals when you see one is very formally described and defined
what is there in the book, the other is what can call it as operative where the organization
actually what it perceives one side they may talk about highly participative kind of a decision
making as the objectives of the organization, goals of the organization to create a very
transparent participative kind of a climate but also in practice we may see that only certain
people are involved in certain task and they are involved in some significant decision making.

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So the operative goals really give some understanding of how the stated official goals are
implemented and to what level of effectiveness they usually describes the official goal, the
organization’s mission. So it is stated as a mission statement sometimes it is also further
elaborated in different documents of the organization. So normally it is written in a policy
manual or included in the company’s annual report or it is also written in terms of the some
of the slogans and some of the programs it adopts. So one need to see the secondary and the
other kind of documents to understand what are the official goals of the organization? So it
also serves as a guide the future direction of the organization. So what it is trying to promote,
what it is trying to support things like that.

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So the official goals to the operative goals the one can see the the realities in terms of how
this the stated goals are being implemented. So the operative goals identify what the
organization is actually trying to accomplish, what kind of steps they have followed. So goals
are usually short-run objectives. So you can one can see in a more measurable and a very
specific way whereas the previous one official goals comes as grand statements. So they
would be operative goals would be much more specific and a specific statements are
verifiable in terms of supportive actions and alternatives but when you see the importance of
the goals itself basically provides the kind of legitimacy that is the stated goals of an
organization provide a symbol of legitimacy to external constituencies.

So then they can understand what this organization is focusing on, it provides that kind of a
recognition, it maybe about the quality, it maybe about the speed with which they deliver,
the way they take care of the customer interest. So, many of these things stated as the values
and goals of the system. So what we are talking about is specific goals stated by the
organization and the goals also provide a direction and it motivates the employees.
(Refer Slide Time: 19:50)

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So the goals provide a sense of direction and the lot of and several research study show goals
have shown that is the research on goals have shown that the performance of employees can
be increased when the individual goals are aligned with the corporate goals. So the
synchronization, the identification of what the individual believes and also what the corporate
perceives then it makes lot of sense. The employees where they have been trained, they have
been trained in a particular ideology and they pursue set of goals and if they find their
organization also pursue similar objectives and they are contributing and making a difference
then the motivational levels, the alignment of the individuals with the organization is very
high. I think that is how the goals provide a basis for that required understanding of the
individual, when individual goals are in conflict with the organizational goals, it also
provides in disharmony or a dissonance and then we there are conflicts which employee
needs to handle because now, we are not able to meet what is required by the organization,
the goals also provide in terms of the decision guidelines.

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So they can serve as the criteria against which the decisions are made particularly, when it
comes to the customer and meeting the customer expectations. So one need to go different
ways out of the ways and then organization believes yes, these goals are extremely important
deadlines are important in some organization costs are very important, in some organization
innovations are very important, in some organization teamwork is important. So if individual
alone strives and contributes that is not seen as a good goal achievement where the
expectation is to see that kind of a required teamwork. So the goals provide a criteria for
decision making goals also provide reduce uncertainties in terms of what is that one should
focus on.

So the members of the organization they make it you know understand very clearly, what is
that they have to be in or what is that they should not be doing, for example part of the
reengineering many organization define their goals, redefine their goals for example public
sector organizations define look we are not here to just to create employment, we are not here
to do some you know the where to people who are feeling that profits are not necessarily very
important thing but then they redefined you know when the profits are necessary.

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So that means once the priorities are defined one such things are clarified the organizational
ambiguity comes down that is where it reduces that uncertainty. So the process of goal setting
tends to reduce at uncertainty for the members of the organization and then it also becomes a
criterion of performance. So when you see on time delivery or delivery before the due date
when it is seen as an important goal of the organization then it becomes the benchmark how
many times you have deviated from this stated goals.

So that means goals provide a standard for evaluating performance when we use organization
performing at six sigma level. So that basically we are trying to talk about that they are
meeting that most of the time the goals whatever stated and then without any deviations.
So the goals provide a clear basis of understanding how much different constituencies of the
organization performing and how much of these things have contributed to the achievement
of the goals.
(Refer Slide Time: 24:56)

So coming back to this organizational effectiveness that we defined earlier that the
organization has goal driven systems and then we need to see organizational effectiveness as
part of achievement of the goals of the organization. So the most popular criteria for
evaluating an organization are of two important things, one is the satisfaction of the members
put it as job satisfaction and the other side is the productivity. So the use of the resources use
of the time and the delivery of the results within the time within the you know set of people
things like that.

So what we are trying to see is productive companies that provide pleasant jobs are
considered much more effective or highly effective and also the survival is a kind of a
threshold measure of any organization. So that is measured in terms of growth in terms of the
changes but how whatever brought in from the previous year to the current year and any
positive change is seen as the survival existence. So the organizational effectiveness is
basically a multifold, multi view of the organizational performance and organizational
delivery as well as the involvement and satisfaction of the members of the organization.
(Refer Slide Time: 26:31)

So the effectiveness of this any organization could be judged solely on the basis of how they
firm meets the goals expectations and the demands of its shareholders better stated at all these
stakeholders. So that means the organization effectiveness can be seen in terms of the
perceptions the views of both internal as well as the external people, external people those of
them who are receiving the products and services of the company it could be the product
quality, it is in terms of the timeliness, in terms of the product support and the may be in
sometimes it is the support towards the trading and the use of the given technology and also
meeting all the required expectations and also the stakeholders who would like to see it as
and particularly, the shareholders who would like to see it as sometimes dividends,
sometimes it is the market value of the of the equity and things like that.

So the question is effectiveness can be viewed in multiple ways and the appropriate criteria
and the use of such things become extremely important. Let us look at different approaches of
determining the effectiveness of the organization, the first one we can call it as the resource
acquisition approach, in this resources acquisition approach what we are trying to focus is
that what is the ability of the organization to exploit its environment by acquiring scarce and
valued resources.
(Refer Slide Time: 27:47)

So that means one, one can view that are you in a position to attract some of the best talents
in the community or best talents not only from the city or the town where you are operating
but from different parts of the state, different parts of the nation and different parts of the
globe that talks about the resource acquisition that is particularly, the human resource. So if
you are a most preferred employer I think that is the concept if the if you are the most
preferred employer then your organization is effective because you are able to attract the best
of the talents and similarly, that you are able to get the resource in terms of the material
resources also in terms of the for example your shares are oversubscribed in a particularly in
an IPO situation.

So that means how many times it was oversubscribed talks about that your resource
acquisition capacity and the public perception of the organization. So in a in a way you are
talking about organization is very effective. So the several researches have focused on the
resource acquisition approach because the organization need to have a great internal strength
to do this, to acquire the best of the material best of the finances at the and you know for
example customers if they pay money and wait for your products for 3 years they talks about
that yes that you are the you are in a much more comfortable position and then there is a trust
is established between the customer and the organization.
So the resource acquisition also talks about the the every year you are able to get the new
customers that means how many new customers you are you have added to your list of the
customers is could be another dimension. So getting the talent, getting best of the finances
getting best of the raw materials then also the new customers, all these are part of this kind of
a resource acquisition approach of judging the organizational effectiveness.

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So the in other words you one need to define what is this valued resources and then arrive at
the set of measures in terms of the with the available pool of material, with the available pool
of manpower, with the available pool of the supporting organizations or the customers how
many top things you have acquired in the previous year that becomes an indicator of the
organizational effectiveness. The resource acquisition approach to if you will focus on
transformation approach the it incorporates both the measures of the human resources as well
as the economic efficiency measures.

So the transformation approaches are also called as the best practices for example, one can
see that this organization with about 50 people were how much they are producing and
similarly will compared with another organization with similar technology with similar
people what is that they are doing. So in other words, you are talking about per person output
per person value addition or you are talking about some kind of this efficiency measures or
the productivity measures that gives the idea of this transformation. So the transformation
approaches talks about the overall performance of the organization in relation to the per
person or per unit of inputs what is that it is, what it is doing.

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So then people talk about the efficiency the performance as well as the effectiveness of the
system. So, the transformation approach that one can always see in terms of a variety of
questionnaires have been developed also some of the specific measures have been developed
concerning the internal organizational health. So people talk about that Indian worker
produces something about 30 shirts, a Chinese worker would produce something about 53
shirts. So then you know one can always see okay why it is so what is happening what is the
what are all the inputs which go into definition of the skill and performance attitudes and
things like that.

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So the transformation approach provides a basis of analysis of the multiple inputs but all
focusing on the end results and in relation to one of the input variables and some of
refocusing only on the output approach. So the output approach is generally viewed as the
most relevant criterion of organizational effectiveness. So that means you are focusing only
on the growth, you are really not bothered about the kind of inputs, the kind of resources you
have utilized but you are able to talk about number of machines produced, number of in terms
of the volumes created, the wealth created, the profits generated and the said that new
markets, you are able to reach it is basically concerned about the output.

So the output approach focuses on the what is that organization has done compared to the
previous years and the also a continuous improvement is there or not one can see in this kind
of an output approach. So this seems logical because organizations try to maximize their
profit as well as the customer satisfaction.
(Refer Slide Time: 34:29)

So one has to see this the one has to see this kind of a multiple things, multiple goals and then
one need to talk about this output approaches. The output approaches sometimes it could be
the profits are increasing but not necessarily the numbers, sometimes the numbers are more
but it may contribute to the inventory and the profits may be coming down.

(Refer Slide Time: 35:22)

So the output approaches has to take care of this multiple sometimes conflicting, sometimes
misleading kind of an indicators but one need to identify what could be the best indicators
and then work around the things to decide the organization as effective or otherwise, the next
approach one can call it as the recycling approach. In the recycling approach, what we are
talking about is the how well the products produced by the organization are consumed by the
society and also translated into essential inputs. So that means you know the are you not
environmentally friendly, so the paper industry may be you know may be checked very
clearly, how much you are creating problems in terms of the deforestation.

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So the recycling approach involves a long-term prospective particularly, when people define
evaluate in terms of public policy in terms of the environmental friendly approaches, one can
would come to the judgment how much of this recycling, you are able to do how much you
are gained in the you know as an organization, how much you are environmental friendly I
think these dimensions will come when somebody is trying to evaluate in terms of the
recycling approach. Another dimension of coming to the or deciding about organizational
effectiveness is the constituency approach. The constituency refers to a group of basically, we
are talking about the significant others both inside as well as outside the organization and has
a stake in the organizational performance.
So it is basically the customer satisfaction when you assess do this through this some kind of
a service quality questioner or it could be the suppliers they feel happy about the kind of
payments you do or you pay as they supply things like that as well as the internal constituents
in terms of the employees and the managers. So how they think about the organization, so
strength of this approach is that it uses a broad view of the effectiveness and examines the
factors in the environment because some constituents or some constituency are not really
satisfied with the organization some are interested in the growth, investors prospective could
be the growth or some investors may be thinking about the dividends. So the immediate
returns on their investments.

So the constituency approach sometimes also brings in the inherent kind of a conflict in the
stakeholders and the kind of interest groups and how some of these interest groups can be
reconciled or sometimes not. So the a good understanding of the constituencies enable to
integrate all of them could bring in more effective or increase effectiveness of the
organization.

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The next one can see the dimension is organizational climate as we know the organizational
climate is a kind of a set of attributes, set of characteristics that distinguish one organization
from the other and how people feel how people describe their experience to work in an
organization.
(Refer Slide Time: 38:48)

So the organizational climate is the state of its health, how the employees feel about their
jobs, their supervisors, their peers, colleagues, top management and many other factors that
affect the individual productivity and collectively the ability of the organization to achieve its
objectives. So it is basically the employees feeling, it is employees perception, it is employee
experiences articulated in some key words about how it feels for them to be in a particular
system.

So it is the system of governance, it is the system of practices, a set of priorities and how the
set of priorities are perceived and with what support, with what recognition, with what
involvement I think these are all the things which one can describe the organizational climate
as. So the climate of an organization has been studied very extensively to look at the
implication for its individual motivation and involvement, however much more is the
organizational climate is seen as an important intervening variable in determining the
effectiveness of the organization.

So the how the organizational climate gets defined or determined is because of the following
and basically it is the managerial values. The values of managers have a strong influence on
organizational climate because as you see the actions of the managers, it influences the
decisions and the and whatever they how they pursue these values in terms of the decisions
creates that kind of a perception of the of the employees, it sometimes autocratic or in
sometimes it is participative.

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So it is also articulated in terms of the leadership styles where they have a confidence in their
subordinates and they want they you know employees to give their best gives that
opportunities for them to participate in decision making and when this, when they do such
things it builds that kind of a respect congenial atmosphere and helps for the for the
achievement of the excellence where members are not supported where members are not
guided properly, the leadership fails as well as the organizational climate is then described as
not very favorable. The organizational climate also gets influenced around a macro-economic
conditions where organization is not able to perform under very adverse conditions.

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So when the economy is growing the managers tend to be much more adventurous more risk
taking and more contributing and demanding such contribution at all levels. But when the
economic conditions are not favorable then it sets in a kind of a lethargy, it sets in a kind of a
feeling of doom, it sets in a kind of the anxiety at different levels and the climate also
perceive, gets perceived accordingly. The other important thing is the organizational
structure, so the several characteristics of the organization structure what we have discussed
earlier tend to have a great influence on the organizational culture and organizational climate.

So when people get empowered or the when the organization practices are decentralized and
there is empowerment and also there is a specialization and then where people can identify
their contribution to the overall success of the organization, their structure enables a good
climate and provide that required culture of performance. The organizational structure when
it is centralized when employees are treated as the cog in the wheel kind of an expression.
(Refer Slide Time: 42:16)

(Refer Slide Time: 43:30)

So then the individual contribution, individual involvement is at stake and the structure does
not enable people to people to perform. So organizational structure needs to be understood in
relationship or in relation to what kind of climate, what kind of culture it is creating. An
another important thing is the characteristics of the members and particularly, the
personalities of the organizational members also contribute significantly to the climate of the
organization in a typically if they are the solo performers if they are not interested in the
others if they are not supportive to the colleagues if they are highly competitive many of
these things do matter.

So in a very competitive climate but they do not have respect for the others is one kind of a
situation or in characteristics of the members may be they are preferring the work with the
groups but not as individuals or they are not experts in other particular area, they are too
generalist. So many of these of the you know characteristics of the members as well as the
personality influences the way, the rewards are perceived the way the members are supported
in task performance.

(Refer Slide Time: 44:35)

The other important variable one can also see the unionization. So the unionization itself is
nothing wrong that is not the presence or absence of a labor union but also the kind of
influence it has on the members of the organization is important, so dual loyalties when
unions pursue or question many of the activities of the organization and people also use the
word militant unionization would always affect the climate of the organization particularly,
the teamwork, relationships and the perceptions of different groups within the organization
and there could be a gap between the management and the labor.
(Refer Slide Time: 45:42)

So the unionization also has to happen in a positive way and that unions which are trusted by
the management and where the unions trust the management can contribute significantly in
building appropriate climate in the organization. Another dimension of the climate is the size
of the organization as the organization grows, so we have seen earlier there is a you know
when the organization is very small there is a high climate of creativity, innovation,
cohesiveness and high degree of participation.

Now such things are possible in small company but as the organizations grow then things
become more impersonal, more and more things are governed by the by the rule book and the
organizations become more and more bureaucratic and such rule driven behaviors highly
centralized kind of a system and too many coordination mechanisms in the organization and
many of these elaborate structures which can come because of the size of the organization
can always affect make this organizational climate as non-challenging routine and you know
the organization may not take enough risk in moving forward and also lethargies can get
developed at different levels of the organization.

So it is very important to see how the size of the organization affecting the organizational
climate and it is important to create smaller organizational system with much more elaborate
governor structure which is empowered, which is decentralized at the same time not affecting
the coordination efforts of the organization. The definitely the other point which affects the
satisfaction and the perception of the organizational members is the nature of the work a
routine task, repetitive task, do create, a kind of a monotony resulting in a kind of a
purposelessness, meaninglessness and a kind of an alienation at the workplace to the kind of
jobs and the type of industry contribute to creating a unique organizational climate as well as
the culture. So the climate leads to the culture over a period of time.

(Refer Slide Time: 47:23)

So the nature of the work in some other system could be a group but the team task team task
support much more collaborative practices. So how these work gets defined in terms of its
specialization, what kind of interdependencies it brings, what kind of information sharing
practices it demands all defines the organizational climate if the nature of the work
sometimes provides that individual recognition, it provides that intrinsic motivation, climate
seems to be better in such task and task performance. We will move onto the from this
understanding of organizational climate to the organizational culture, I did refer to this
organizational culture previously, when climate leading to the organizational culture.

So the so if in terms of the initial perceptions and repetitive reinforcement of such

perceptions defines the organizational culture. So that means a climate over a period of time
contributes and defines how the culture of the organization is so when we are talking about
culture it is the basically we are talking about the personality of the organization, it refers to
the set of key values believes and understandings that are shared by the members of the
organization, one can see the culture in different ways the it is one of those terms that are
very difficult to express distinctly but everyone knows that when they sense it.

(Refer Slide Time: 48:41)

(Refer Slide Time: 49:35)

So in sometimes it is those people who are part of the organization it is for them very difficult
to describe what the organization culture is but for an outsider it becomes very obvious
whether the culture of the organization is supportive excellence or not whether the culture of
the organization is highly customer centric or not whether the culture of the organization
supports cleanliness quality or not you know things like that. So the corporate culture is
always best looked best examined and by an outsider and it is a system of practices pursued
at different levels.

(Refer Slide Time: 50:27)

So the concept of culture is particularly important when we are trying to attempting to

particularly the manage organizational wide changes. So outputs or the effects of our culture
if you see they seeing an organizational behaviors, the technologies, the strategies, the kind of
it may the products services appearances etcetera many of these things in a different way in
an indirect way as well as direct way talks about the culture of the organization. So whether it
is the different practices driving different values one can feel the culture of an organization
just by looking at the arrangement of furniture, how the offices are defined and what do they
stand for, so what do the members wear in terms of their in terms of their you know the many
of the practices.
(Refer Slide Time: 51:07)

So that defines whether the organization is highly stratified or the organization is highly
participative organization has many places where people discuss informally or the
organization is extremely formal protocol driven, so things like that. So the buildings the
furniture the arrangements the facilities many of these things define what is the culture of the
organization one can also examine in terms of the ceremonies, what kind of events are
celebrated whether such things are recognized you know goes for the recognition of the
individual performance.

(Refer Slide Time: 51:56)

(Refer Slide Time: 52:29)

(Refer Slide Time: 52:59)

So the it also serves as the kind of a purpose the what this organization is really thinking
about, so sometimes it is much more religious and perform some of those things or whether it
is as we see it as a kind of a social club. So the what is organization not only the ceremonies
but also the stories what kind of stories are told within the an organization, can have a
profound impact on the organization’s culture, most stories are narrative based on true events
that are shared among employees and told to new members to inform about the organization.
So what kind of stories are told what kind of successes examples are there in the past. So the
stories and also the symbols is something that represents you know the you know all the
things, so the ceremonies the rituals the stories the symbols all these becomes part of the
deeper values of the organization. So how do they represent quality, how do they celebrate
quality, how do they celebrate delivery, what kind of language they use?

(Refer Slide Time: 53:24)

So the say every organization develops its own jargons and abbreviations. So how many
layers, how many protocols, how many rules? So these communication devices contribute a
very unique organizational culture whether the people are told well in advance or people are
guided or people are instructed, people are shouted at. So the language and the context of this
use of this language, so if sometimes the kind of metaphors the symbols and to convey what
the organization stands for so also do explain the kind of culture it supports.

So the point is that we need to understand organizational effectiveness and its dimensions
through clearly examining, how the effectiveness is viewed the goals and the and the details
of how the goals and the goal pursued of goals is supported through the climate and culture of
the organization. So far we have seen the following aspects of the organizational theory,
reducing uncertainties, the concept of organizational effectiveness and the organizational
goals and the types of goals and we also try to look at the organizational effectiveness in
terms of the following perspectives, resource acquisition, transformation, output, recycling,
different constituencies, organizational climate and organizational culture and what we will
do we will move onto an another important dimension of the organization that is the groups
and the group dynamics.

(Refer Slide Time: 53:50)

(Refer Slide Time: 54:09)

(Refer Slide Time: 54:50)

(Refer Slide Time: 55:11)

So in the next lecture we shall have a close look at the following the concept of group
dynamics, the types of groups, how groups form and groups develop and the stages of a
group development.