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Unformatted text preview: Lesson:-36 TYPOLOGY,FUNCTIONS AND EVOLUTION OF ORGANISATIONAL CULTURE Students now that we have got an idea of what organizational culture is, today let us learn about the evolution of organizational culture. Harrison (1972) and (1991) have given the following four typologies of organisational culture. 1. Power Culture : Power culture can be observed in small organisations and large conglomerates where there is centralised power. In this culture results are the basis of assessment of effectiveness, sometimes to the satisfaction of the central authority figure. In this culture ends justify the means. There are both positive and negative aspects of this culture. On the positive side, the culture can help an organisation become strong, dynamic, fast to respond to external demands. On the flip side, it often leads to staff dissatisfaction, dependence on the ability and decision making of the centralized power figure, dysfunctional conflict, and power lobbying. Only those members succeed who have a political bent of mind, power orientation and manipulative ness, and low need for security. Personal equation with the centre and control over resources make people powerful and influential. 2. Role Culture : Based on logic and rationality, this culture is often referred to as bureaucracy. Appointment is done on the basis of the ability of the persons to carry out the functions satisfactorily. There is security for employees and career progressions are predictable. Coordination, however, takes place at the top. Departments are assigned specific functional roles and their work is governed by authority, structure, and a set of procedures. The departments follow certain mechanisms and rules for decision making and resolving conflicts. There are both merits and demerits of this culture. In role culture, importance is given to consistency, predictability, and stability, consequently such a culture contributes to creation of stable environments. But the drawback is that it makes adaptation to change difficult. Also, innovations, new ways of solving problems, and product and process innovations are discouraged. Such a culture is slow to respond to competitive pressures. However, some private sector organisations like IBM, TISCO, and public sector undertakings and banks have responded to globalization pressures and have resorted to voluntary retirement schemes, decentralization, disinvestment, and downsizing, 3. Task (Project Team) Culture : Task culture is a small team culture which exists in organisations in the form of network organisation or project oriented matrix organisation. In this culture, power and authority are distributed to the right people at the appropriate level and the focus is on performance and results to be achieved. the appropriate level and the focus is on performance and results to be achieved....
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This note was uploaded on 05/20/2010 for the course BUSINESS Organizati taught by Professor N/a during the Spring '10 term at Open Uni..
- Spring '10