An interesting example of Organizational Culture...

An interesting example of Organizational Culture...

Organizational Behavior module at my MBA studies was something I liked a lot! Especially the Organizantional Structure and Organizational Culture part, because I could relate to my work-experience directly. It's difficult to make out Culture since its is subtle and intangible in nature. But the Culture often shows up in certain ways.

Recently iGate a relatively small US-based IT services firm (run by ex-Infosys executive Phaneesh Murthy) bought Patni Computer Services, a mid-sized IT services firm for close to $1.22 billion. Patni is more than double the size of iGate and iGate could buy Patni only with the help of financing from a consortium (i.e. through debt). 

I was reading an interview of Phaneesh Murthy when this Culture aspect caught my attention. Here's an excerpt:

Though this is a huge buy and you will take a while digesting it, are you looking at other companies with a "for sale" sign?
Not at all. I am basically a conservative, middle-class south Indian Brahmin. As it is, we don't like debt, and I am very uncomfortable with a $700 million (around Rs. 3,180 crore) debt.

Now the highlight here is, even though iGate is a US-based IT commpany and is supposed to be Global, the CEO of that organization owes his Business decisions to his roots - he being a middle-class Brahmin. And then it drives the organization's future and thus the Culture. So when a newly appointed executives talks of bringing about a change in the culture what he means is, to borrow from his background, experience and nature and apply that to the organization. So is there something called as Organizational Culture or is it a mere reflection of the Top executive? The answer is Yes and No.

In case of smaller organizations, the culture is dictated by the executives or top leadership. An organization with 100-odd employees (or a few thosand in case of IT companies, because that is 'small' for the industry) gets a new CEO, and since he is a conservative Brahmin who doesn't like debt would not go for more acquisitions. Had he been a Marwadi, or a Punjabi or a Gujrathi the organization's future course could have been different.

But in larger organizations (and not just size but how long the company has been in the business), a new CEO would not be able to make a dent in organization's culture. Think of IBM or a Unilever. Or a Tata group company or ONGC in Indian context. Leadership style may vary, few processes would change, but it's unlikely that there is a paradigm shift in organization's Culture.

 Another aspect of looking at Murthy's comment is: the impact of your previous organization, especially when you have spent significant time with it. In this case Phaneesh Murthy would not name Infosys, his previous organization where he served 10 years, helped grow it phenomenally and where he was finally asked to resign because of a sexual harassment litigation against him. Murthy glinks his conservative, risk-averse Business mind to his Brahmin roots, which is true, but what is also true is that his previous organization, Infosys has a huge contribution in it too.

Infosys, India's second largest IT-services company is and has been debt-free all along. Analysts often criticize Infosys for not growing inorganically though acquisitions, because Infosys leadership too doesn't 'like to borrow'. Again that could in turn be linked with the founders' brahmin roots... 

But what is also true is, when you are part of an organization for significant time(in senior capacity, of course), you not only are influenced by the Culture but you can also influence or shape up the Culture. L&T's chairman Naik started his career with L&T as a fresher and has been there for 46 years!!! If he starts-up his own venture its obvious that the culture of his start-up would resemble that of L&T's .

Hey, but in the same interview Murthy talked of 'kicking butt' in the marketplace post acquisition - the kind of language that does not go with his middle-class Brahmin background nor resemble the mellowed and always-politically-correct language at his previous organization Infosys. Maybe Phaneesh has a mixed parentage :) (Don't call me Racist, I was refering to his organization's US-based culture and his long tenure in the US!)

Come to think of it...Organizational Culture is to an Organization what Religion is to a Society. The only difference is, you can move to different Organizations if you don't like Culture; but that's not the  case with Religion :( And the worse part is - you don't get to choose the Religion...