Tag Archives: human resource

Dysfunctional Organization Cultures And Falling Corporate Empires

ganesh article on Culture

Ganesh Subramanian from IIM Trichy writes why without transparency in communication organizations would invite doom. 

A friend of mine called me up a few days ago seeking some suggestions to come out of the problems that she finds herself in, in her company. She works as a recruitment executive in a firm. She said that a week before her recruitment, the firm had rolled out offers to candidates who are joining a multinational firm, which is a client of this recruitment firm. Despite slogging for a week and achieving targets which have never been achieved before, there was little appreciation for the work done. Forget appreciation, there wasn’t even a mention of the work in the subsequent team meetings by her boss. To complicate matters, the recruitment team was asked to report to a lady who is supposedly well known to the boss. Now this lady is new to the business of recruitment having moved into this role only a few months back and behaves more like a school teacher than a team lead. In this scenario, my friend was contemplating quitting her job and she says that the organization culture is bad beyond repair.

In another example, a CEO of a firm is known for his frequent outbursts of anger, shouting at his subordinates, in front of others. The CEO’s behaviour has percolated down to the individual business units as business unit heads shout at their subordinates because the CEO shouts at them. The funny part is that this organization had a 360 degree appraisal system for assessment of performance. No wonder that the employees of the organization are scared to death when it comes to rating their superiors.

These two examples set me thinking on how organization cultures can make or mar organizations. Organizations such as those mentioned above fall into oblivion and get into a very bad cycle because nobody knows how to change this bad culture. It is very obvious that the cue has to come from the top management. The behaviour and the culture of the organisation have to be driven by the CEO and carried on by the business unit heads.

For sustainable growth of organizations, there must be transparency in communication, freedom and autonomy in work and more importantly an environment where everyone feeds off each other’s growth which in term helps them grow. The HR in the bad-cultured organizations become the scapegoat in the whole process as employees blame the HR for anything and everything little realizing that HR in such organisations do not have the power to overhaul systems in one go and they are mere spectators in the whole game.

To conclude, top management must be proactive in setting the right environment for a thriving organizational culture and must give the HR department the full freedom to maintain the culture, suggest changes for betterment and even change it.

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