The following was published in the Kerala Personnel , the professional journal Annual Issue 2007.
Industry mindset and organisational culture -
An attempt at functional distinction.
Shelly Jose
Abstract
A review of the organizational theory indicates the presence of a number of concepts such as industry culture, organisational culture, industry mindset etc. This paper attempts to examine the varied conceptualizations to see the commonness and distinctions attributable to the different nomenclatures. It may be that the different appellations actually mean the same albeit with variations at levels but not necessarily in conceptual essence. However, it is postulated that one may conceptualise industry mindset as what (of the shared values, beliefs and practices) is common across organizations in the industry and organizational culture as more indicative of what is different across organisations (within an industry).
A review of the organizational theory indicates the presence of a number of concepts such as industry culture, organisational culture, industry mindset etc. This paper attempts to examine the varied conceptualizations to see the commonness and distinctions attributable to the different nomenclatures. It may be that the different appellations actually mean the same albeit with variations at levels but not necessarily in conceptual essence. However, it is postulated that one may conceptualise industry mindset as what (of the shared values, beliefs and practices) is common across organizations in the industry and organizational culture as more indicative of what is different across organisations (within an industry).
Professional behaviour as a group mindset
An analysis of the literature relating to organizational theory reveals the following variables: industry culture, industry assumptions, industry mindset and industry recipe.
In calling attention to the fact that a people’s way of gaining sustenance promotes certain specific patterns of thought which assist them in their productive and distributive operations, philosopher John Dewey has suggested the concept of occupational psychosis. Citing psychosis in history, the one of the times in which he wrote is described by technological psychosis characterized by experimentalism, laboratory method and a secular morality centering around the occupation.
Paul Meadows comments that a psychosis in this sense is a ‘pronounced mindset’. Further it is also contented that the occupational morality of modern technology was fashioned by certain religious developments, notably Protestantism that unqualifiedly demanded that the “occupation become a preoccupation”. The same idea is reflected by Burke in saying that work both reflects our interests and forms them.
A different instance of the idea is the suggestion of Parsons that it is the differing situations under which business and the professions (‘work’ in the most general sense) operate which account for the apparent differences in motive and not the other way around. In other words it is an instance of the work determining and shaping behaviour around it.
It may not be out of place to also mention E.H. Sutherland’s comment quoted in the same article on the professional thief that the profession is more than isolated acts frequently and skillfully performed. It is a group way of life and a social institution with techniques, codes, status, traditions, consensus and organisation. The article also points out certain social psychological (cultural?) orientations and institutional patterns.
Industry characteristics as influencing organizational culture
A similar line of argument is taken in another article on the relationship between industry characteristics and organizational culture, that while there may be meaningful cultural variations across firms in the same industry, less variation may occur among firms working on the same tasks, using similar procedures and experiencing similar opportunities to grow than across industries.
Industry determinants of organizational culture
George G. Gordon in his article ‘Industry determinants of organizational culture’ suggests that in order for an organization to be successful, industry driven assumptions must be widely shared and widespread disagreement with basic assumptions is unlikely. Though there may be differences in values they may not be undermining of the basic assumptions on which the industry depends. However within the context of the industry assumptions various compatible strategies, structures or processes are available. These are defined by “the assumptions about the specific mission of the organization” that is mentioned by Drucker in his Theory of the Business. The link between organizational culture and the (industry level) environment are loosely coupled which implies flexibility to avoid over-determinism, however, it is also suggested that if the organization is to survive it will be built on certain assumptions required by the industry and it is from these assumptions that certain values (at the organizational level) emerge.
Industry driven assumptions are stable, shared by management and labour alike and productive because they insulate a company from taking inappropriate actions as a reaction to short term crisis situations. Thus industry predisposes all members within it to develop cultures that encourages certain assumptions and values stemming from the nature of what the industry does or produces.
Further, the assumptions that determine mindset in a particular industry centre around the competitive environment, customer expectations and societal expectations which are obviously shared across the organizations within the same industry.
Levels of culture as recognised by Hofstede
[1]Similarly though his elaboration is on culture at the national level, Hofstede in his explication of culture places industry as one level between the occupational and the national levels of culture.
Industry mindsets delineated
One of the articles that speak much more directly on the industry level using the term industry mindset is the one by Margaret E. Phillips.
The article traces the recognition of culture as a set of assumptions shared by a group of people. One reading the foregoing with the psychoses mentioned in the earlier part and also the idea that, less variation may occur among firms working on the same tasks, may immediately recognize an industry level culture.
The set of cultural assumptions is an ‘ideational order’ and more colloquially a dynamic shared mindset. In the article the word mindset is used interchangeably with culture.
Multiple mindsets exist within and around organizations and the identification of the same is now well entrenched and accepted within the organisational theory literature.
The recognition and support for the existence of industry based mindsets has come from institutional theorists in the form of industry systems, societal sectors and homogeneity in form and behaviour among organisations within the same “organisational field”. Also from industrial economics based rationale for notion of evolutionary industry cultures. Marketing theory argues that global commonalities in mission perception exist within certain industries and are developed and maintained through shared experiences.
From the organisational behaviour theory point of view, industry is one of the “trans organisational loci” of culture. Strategy theorists also propose that commonly held mindsets exist across firms within industries and drive strategic decision making by individuals. The term industry recipe appears in the strategic management literature and is described by Spender as “the business specific world view of a definable tribe of industry experts” much like a local culture.
The common strain in each of thee conceptualizations is the “externally (external to the organization) oriented cultural assumptions”. A summary of the above review is given in a tabular form in the annexure.
From the above it may be arrived at that the varied expressions organizational culture and industry mindset mean the same phenomena but at different levels one at the organizational level and the other at the industry level.
Finally for ease of conceptual clarity it is suggested that we may semantically assign industry mindset as more indicative of what is common across organizations in the industry AND organisational culture as more indicative of what is different across organisations (within an industry). Such a differential conception may do well for meaningful professional usage of the terms organizational culture and industry mindset.
An analysis of the literature relating to organizational theory reveals the following variables: industry culture, industry assumptions, industry mindset and industry recipe.
In calling attention to the fact that a people’s way of gaining sustenance promotes certain specific patterns of thought which assist them in their productive and distributive operations, philosopher John Dewey has suggested the concept of occupational psychosis. Citing psychosis in history, the one of the times in which he wrote is described by technological psychosis characterized by experimentalism, laboratory method and a secular morality centering around the occupation.
Paul Meadows comments that a psychosis in this sense is a ‘pronounced mindset’. Further it is also contented that the occupational morality of modern technology was fashioned by certain religious developments, notably Protestantism that unqualifiedly demanded that the “occupation become a preoccupation”. The same idea is reflected by Burke in saying that work both reflects our interests and forms them.
A different instance of the idea is the suggestion of Parsons that it is the differing situations under which business and the professions (‘work’ in the most general sense) operate which account for the apparent differences in motive and not the other way around. In other words it is an instance of the work determining and shaping behaviour around it.
It may not be out of place to also mention E.H. Sutherland’s comment quoted in the same article on the professional thief that the profession is more than isolated acts frequently and skillfully performed. It is a group way of life and a social institution with techniques, codes, status, traditions, consensus and organisation. The article also points out certain social psychological (cultural?) orientations and institutional patterns.
Industry characteristics as influencing organizational culture
A similar line of argument is taken in another article on the relationship between industry characteristics and organizational culture, that while there may be meaningful cultural variations across firms in the same industry, less variation may occur among firms working on the same tasks, using similar procedures and experiencing similar opportunities to grow than across industries.
Industry determinants of organizational culture
George G. Gordon in his article ‘Industry determinants of organizational culture’ suggests that in order for an organization to be successful, industry driven assumptions must be widely shared and widespread disagreement with basic assumptions is unlikely. Though there may be differences in values they may not be undermining of the basic assumptions on which the industry depends. However within the context of the industry assumptions various compatible strategies, structures or processes are available. These are defined by “the assumptions about the specific mission of the organization” that is mentioned by Drucker in his Theory of the Business. The link between organizational culture and the (industry level) environment are loosely coupled which implies flexibility to avoid over-determinism, however, it is also suggested that if the organization is to survive it will be built on certain assumptions required by the industry and it is from these assumptions that certain values (at the organizational level) emerge.
Industry driven assumptions are stable, shared by management and labour alike and productive because they insulate a company from taking inappropriate actions as a reaction to short term crisis situations. Thus industry predisposes all members within it to develop cultures that encourages certain assumptions and values stemming from the nature of what the industry does or produces.
Further, the assumptions that determine mindset in a particular industry centre around the competitive environment, customer expectations and societal expectations which are obviously shared across the organizations within the same industry.
Levels of culture as recognised by Hofstede
[1]Similarly though his elaboration is on culture at the national level, Hofstede in his explication of culture places industry as one level between the occupational and the national levels of culture.
Industry mindsets delineated
One of the articles that speak much more directly on the industry level using the term industry mindset is the one by Margaret E. Phillips.
The article traces the recognition of culture as a set of assumptions shared by a group of people. One reading the foregoing with the psychoses mentioned in the earlier part and also the idea that, less variation may occur among firms working on the same tasks, may immediately recognize an industry level culture.
The set of cultural assumptions is an ‘ideational order’ and more colloquially a dynamic shared mindset. In the article the word mindset is used interchangeably with culture.
Multiple mindsets exist within and around organizations and the identification of the same is now well entrenched and accepted within the organisational theory literature.
The recognition and support for the existence of industry based mindsets has come from institutional theorists in the form of industry systems, societal sectors and homogeneity in form and behaviour among organisations within the same “organisational field”. Also from industrial economics based rationale for notion of evolutionary industry cultures. Marketing theory argues that global commonalities in mission perception exist within certain industries and are developed and maintained through shared experiences.
From the organisational behaviour theory point of view, industry is one of the “trans organisational loci” of culture. Strategy theorists also propose that commonly held mindsets exist across firms within industries and drive strategic decision making by individuals. The term industry recipe appears in the strategic management literature and is described by Spender as “the business specific world view of a definable tribe of industry experts” much like a local culture.
The common strain in each of thee conceptualizations is the “externally (external to the organization) oriented cultural assumptions”. A summary of the above review is given in a tabular form in the annexure.
From the above it may be arrived at that the varied expressions organizational culture and industry mindset mean the same phenomena but at different levels one at the organizational level and the other at the industry level.
Finally for ease of conceptual clarity it is suggested that we may semantically assign industry mindset as more indicative of what is common across organizations in the industry AND organisational culture as more indicative of what is different across organisations (within an industry). Such a differential conception may do well for meaningful professional usage of the terms organizational culture and industry mindset.
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Shelly Jose teaches at the Rajagiri School of Management, Kakkanad, Kochi. A post graduate in PM&IR and an FDP from IIM (Ahmedabad), his current interests include Business Ethics as a key component in the Management Profession.
Previously he served the Indian Ol Corporation, Barauni Refinery as Sr. Personnel Officer.
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