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Week 8 ORGANIZATIONAL CULTURE PART 2: DEVELOPING AND CONTROLLING ORGANIZATIONAL CULTURE ©Ivan Tacey.

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Presentation on theme: "Week 8 ORGANIZATIONAL CULTURE PART 2: DEVELOPING AND CONTROLLING ORGANIZATIONAL CULTURE ©Ivan Tacey."— Presentation transcript:

1 Week 8 ORGANIZATIONAL CULTURE PART 2: DEVELOPING AND CONTROLLING ORGANIZATIONAL CULTURE ©Ivan Tacey

2 Organizational Culture is “A pattern of shared basic assumptions invented, discovered, or developed by a given group as it learns to cope with its problems of external adaptation and internal integration" that have worked well enough to be considered valid and therefore, to be taught to new members as the correct way to perceive, think and feel in relation to those problems” (Schein) "the specific collection of values and norms that are shared by people and groups in an organization and that control the way they interact with each other and with stakeholders outside the organization.“ (Hill and Jones 2001)stakeholders

3 It is influenced by External environment Industry Size and nature of the organization’s workforce Technologies the organization uses The organization’s history and ownership

4 It is important because: A srong or robust culture can result in Competitive edge derived from innovation and customer service Consistent, efficient employee performance Team cohesiveness High employee morale Strong company alignment towards goal achievement

5 BEFORE: 70s and 80s mergers and acquisitions encouraged top-management to control through one all-embacing culture NOW: many companies appreciate sub-cultural variations: To develop flexibility and innovation while maintaining a degree of control SUBCULTURES :share a commonality that is individual to that group share the organizational culture of the whole Each groups can have more or less structure. May have leaders or act as a cooperative. May be innovative a may adhere strictly to perceived values and rules of the parent organization.

6 Top management can better differentiate and satisfy markets. Top management can identify essential and non-essential staff, and develop the former. Individual difference often indicates personal creativity. Cultural diversity can help creativity in cognitively complex tasks

7 GROUP CULTURE: each department’s own culture; UPPER CULTURE: top and middle management LOWER CULTURE the culture of rank and file; HOME HEADQUARTERS CULTURE and OVERSEAS SUBSIDIARY CULTURE.

8 OPERATOR CULTURE: based on human relationships. Trust, commitment and good communications are highly valued. CEO CULTURE:a world view. Needs for challenge and achievement more important than realtionships. ENGINEERING CULTURE: impersonal. certain core organizational perceptions are shared by all members departments may have different perceptions due to sub cultural differences there can be conflicts in perception

9 More autonomous – free of headquarters management. Distant from headquarters – geographically and culturally. Less involved in headquarters operations.

10 Management understands all aspects of the business; Responsibility for each activity is established and communicated; Those who do the business are segregated from those who account for cash flows; Internal auditing and controls are established; Weaknesses are fixed quickly.

11 UNDER CONTROL Organizational profile Official interests Formal Structures Technology OUTSIDE CONTROL National Culture Environmental Factors Members Experience of formal structures and technology Members Informal Systems.

12 Building structures and systems that motivate; The creation of appropriate management symbols; The recruitment of persons likely to contribute positively.

13 Create symbols which express management perceptions of core values; Project these symbols throughout the company; Create consensus around these « official symbols ».

14 Rituals and Ceremonies. Myths. History. Language. The Mission Statement

15 Influences on Corporate Culture The Paradigm: What the organization is about; what it does; its mission; its values. Control Systems: The processes in place to monitor what is going on. Organizational Structures: Reporting lines, hierarchies, and the way that work flows through the business. Power Structures: Who makes decisions, how widely spread is power, and on what is power based? Symbols: Organizational logos and designs, symbols of power such as parking spaces and executive washrooms. Rituals and Routines: Management meetings, board reports etc… may become more habitual than necessary. Stories and Myths: built up about people and events, convey message about what is valued within the organization. G. Johnson

16 Macy’s and 3M What’s it like working at Macy’s? What does 3M do best?

17 To guide strategic planning; To define the scope of operations; To provide a common purpose; To promote a sense of shared expectations among all levels of employees; To guide leadership styles.

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19 SHIFT_. A single word that captures the passion and commitment that has revived Nissan and drives our future. Everything we touch, we shift. And everything we shift, we try to make better and uniquely Nissan. What does "SHIFT_" mean at Nissan? SHIFT_ thinking changes the way we look at things, the way we do things and the way we react to life around us. It is more than kaizen. It's no longer about just doing, but doing for a purpose, doing effectively. It is change, but change driven for better, faster, higher performance. Our job is to create value, and we believe great products define a great carmaker. We are not afraid to take the lead at times or to stretch the boundaries in wider, better directions. When you change the way you look at reality, you will find that amazing things can happen. That's the NISSAN spirit -- the Nissan SHIFT_.

20 A great place to work for Four coffee shops to sit and drink in – which come in very handy for some of the informal meetings that our open culture encourages An airy restaurant serving a wide selection of great food Landscaped gardens, with lake, putting green and croquet – there are also picnic facilities available in the summer, just the place to enjoy your free ice creams Shop offering dry cleaning, photo processing and video/DVD rental Cash machines, on-site banking and independent financial advisors Waitrose delivery service – shop online and pick up your groceries before you leave for home Wireless environment to allow you to be online anywhere in the building, including by the lake Chill-out zones to unwind and relax in Independently-operated day nursery facility Independent 'Wellbeing' centre offering a range of healthcare services and advice, including alternative therapies and massage


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