1. Group 4: Corporate Culture

2. Abstract In this presentation, we will discuss corporate culture In this presentation, we will discuss corporate culture We focus on talking about Competing Values Framework We focus on talking about Competing Values Framework The Competing Values Framework (CVF) is one of the most influential and extensively used models in the area of organizational culture research The Competing Values Framework (CVF) is one of the most influential and extensively used models in the area of organizational culture research Briefly describe the component of CVF Briefly describe the component of CVF Discuss the use of Organization Culture Assessment Instrument Discuss the use of Organization Culture Assessment Instrument

3. Introduction: Corporate Culture Many different definitions of the concept Many different definitions of the concept The central notion is that culture relates to core organizational values The central notion is that culture relates to core organizational values All organizations have cultures or sets of values All organizations have cultures or sets of values Influence the way people behave Influence the way people behave (1) the treatment of customers (1) the treatment of customers (2) the treatment of the subordinate (2) the treatment of the subordinate (3) standards of organizational performance (3) standards of organizational performance (4) accountability. (4) accountability.

4. Model Competing Value Framework (CVF) Competing Value Framework (CVF) Focus on the competing tensions and conflict occurred in the system Focus on the competing tensions and conflict occurred in the system Two dimensions in the framework: Two dimensions in the framework: - Conflict between stability and change - Conflict between stability and change - Conflict between internal and external environment - Conflict between internal and external environment

5. Competing Value Framework

6. human relations model human relations model open system model open system model rational goal model rational goal model internal process model internal process model an effective organization may need to perform well on all four sets of criteria an effective organization may need to perform well on all four sets of criteria

7. Four organizational culture Group Culture Group Culture Developmental Culture (Adhocracy) Developmental Culture (Adhocracy) Rational Culture Rational Culture Hierarchical Culture Hierarchical Culture Each represents one of the four major models organizational theory Each represents one of the four major models organizational theory

8. Group Culture Concern with human relations model Concern with human relations model Support flexibility Support flexibility Maintain focus internally Maintain focus internally Tends to be thinking in the interest of groups as a whole Tends to be thinking in the interest of groups as a whole Core value: Belonging, trust, participation Core value: Belonging, trust, participation Motivation: membership, cohesiveness Motivation: membership, cohesiveness Effectiveness criteria: member commitment, participation Effectiveness criteria: member commitment, participation

9. Developmental Culture (Adhocracy) Concern with open system model Concern with open system model Support flexibility Support flexibility Focus on external environment Focus on external environment Willing to take risk Willing to take risk More able to develop a vision of the organization More able to develop a vision of the organization Core Value: company growth, size and the competitiveness outside Core Value: company growth, size and the competitiveness outside Motivation factor: Creativity, Variety Motivation factor: Creativity, Variety Effectiveness criteria: market development, resources acquisition Effectiveness criteria: market development, resources acquisition

10. Rational Culture Concerned about the rational goal model Concerned about the rational goal model Focus on goal achievement, organization performance Focus on goal achievement, organization performance Tends to be directive, functional working behavior Tends to be directive, functional working behavior Core value: pursuit on a well-defined objective Core value: pursuit on a well-defined objective Motivation factor: competition and a successful achievement Motivation factor: competition and a successful achievement Effectiveness criteria: planning, productivity, efficiency Effectiveness criteria: planning, productivity, efficiency

11. Hierarchical Culture Concern about internal process model Concern about internal process model Support stability Support stability Tends to be conservative and cautious Tends to be conservative and cautious Core value: executions of regulations Core value: executions of regulations Motivation factor: security, order, rules Motivation factor: security, order, rules Effectiveness criteria: control, stability Effectiveness criteria: control, stability

12. Four organizational culture

13. Organization Culture Assessment Instrument (OCAI) assess six key dimensions of organizational culture assess six key dimensions of organizational culture providing a picture of how your organization operates and the values that characterize it providing a picture of how your organization operates and the values that characterize it There are no right and wrong answer, but usually different types of organization will produce similar answers There are no right and wrong answer, but usually different types of organization will produce similar answers

14. OCAI method Dominant Characteristics Dominant Characteristics Organizational Leadership Organizational Leadership Management of Employees Management of Employees Organizational Glue Organizational Glue Strategic Emphases Strategic Emphases Criteria of Success Criteria of Success

15. OCAI method Dominant organizational characteristics Dominant organizational characteristics Group Culture: Personal, like a family Group Culture: Personal, like a family Developmental Culture (Adhocracy): Entrepreneurial, risk taking Developmental Culture (Adhocracy): Entrepreneurial, risk taking Rational Culture: Competitive, achievement oriented Rational Culture: Competitive, achievement oriented Hierarchical Culture: Controlled and structured Hierarchical Culture: Controlled and structured

16. OCAI method Leadership style Leadership style Group Culture: facilitating Group Culture: facilitating Developmental Culture (Adhocracy): innovative Developmental Culture (Adhocracy): innovative Rational Culture: aggressive, result-oriented Rational Culture: aggressive, result-oriented Hierarchical Culture: coordinating, efficiency oriented Hierarchical Culture: coordinating, efficiency oriented

17. OCAI method Management of employees Management of employees Group Culture: Teamwork, consensus, participation Group Culture: Teamwork, consensus, participation Developmental Culture (Adhocracy): freedom, uniqueness Developmental Culture (Adhocracy): freedom, uniqueness Rational Culture: Competitiveness and achievement Rational Culture: Competitiveness and achievement Hierarchical Culture: Security, predictability Hierarchical Culture: Security, predictability

18. OCAI method Organizational glue Organizational glue Group Culture: Loyalty and mutual trust Group Culture: Loyalty and mutual trust Developmental Culture (Adhocracy): Commitment to innovation, development Developmental Culture (Adhocracy): Commitment to innovation, development Rational Culture: achievement and goal accomplishment Rational Culture: achievement and goal accomplishment Hierarchical Culture: Formal rules and policies Hierarchical Culture: Formal rules and policies

19. OCAI method Strategic emphasis Strategic emphasis Group Culture: Human development, openness Group Culture: Human development, openness Developmental Culture (Adhocracy): Acquisition of resources, creating new challenges Developmental Culture (Adhocracy): Acquisition of resources, creating new challenges Rational Culture: Competitive actions and winning Rational Culture: Competitive actions and winning Hierarchical Culture: stability Hierarchical Culture: stability

20. OCAI method Criteria for success Criteria for success Group Culture: teamwork, concern for people Group Culture: teamwork, concern for people Developmental Culture (Adhocracy): Unique and new products and services Developmental Culture (Adhocracy): Unique and new products and services Rational Culture: Winning in the marketplace Rational Culture: Winning in the marketplace Hierarchical Culture: efficient, low cost Hierarchical Culture: efficient, low cost

21. Research Researcher: Eric A Goodman, Raymond F Zammuto, Blair D Gifford Researcher: Eric A Goodman, Raymond F Zammuto, Blair D Gifford Year: 2001 Year: 2001 Named: THE COMPETING VALUES FRAMEWORK: UNDERSTANDING THE IMPACT OF ORGANIZATIONAL CULTURE ON THE QUALITY OF WORK LIFE Named: THE COMPETING VALUES FRAMEWORK: UNDERSTANDING THE IMPACT OF ORGANIZATIONAL CULTURE ON THE QUALITY OF WORK LIFE Source: Organization development Journal Source: Organization development Journal

22. Research finding The study uses the competing values framework as a tool to investigate the relationships between organizational culture and several important job related variables The study uses the competing values framework as a tool to investigate the relationships between organizational culture and several important job related variables group cultural values are positively related to organizational commitment, job involvement, empowerment and job satisfaction group cultural values are positively related to organizational commitment, job involvement, empowerment and job satisfaction negatively related to intent to turnover negatively related to intent to turnover hierarchical cultural values are negatively related to organizational commitment, job involvement, empowerment and job satisfaction hierarchical cultural values are negatively related to organizational commitment, job involvement, empowerment and job satisfaction positively related to intent to turnover positively related to intent to turnover

23. Case study - second-hand car dealer - second-hand car dealer Peter and John, had different opinion of approaches to management. Peter emphasized on the human relations with the staff Peter and John, had different opinion of approaches to management. Peter emphasized on the human relations with the staff His management philosophy was to fully delegate and support the staff His management philosophy was to fully delegate and support the staff John emphasized on planning the company goals and achieving the goals through a well-organized company structure. John emphasized on planning the company goals and achieving the goals through a well-organized company structure. Employment of employees needed to meet the technical requirements such as qualification, experience, skills and historical background. They would be assigned to the most suitable post as considered by the management. Employment of employees needed to meet the technical requirements such as qualification, experience, skills and historical background. They would be assigned to the most suitable post as considered by the management. Peter kept on managing Car City while Peter set up his new car dealing company – Super Car Co., Ltd. During the financial storm. Car City had reduced its number of branches from 100 to 70 but still got a profit of $ 1,000,000. Super Car had to close 20 branched from 35 and had gained a loss of $1,000,000. Peter kept on managing Car City while Peter set up his new car dealing company – Super Car Co., Ltd. During the financial storm. Car City had reduced its number of branches from 100 to 70 but still got a profit of $ 1,000,000. Super Car had to close 20 branched from 35 and had gained a loss of $1,000,000.

24. From the given information, explain what organizational culture do you expect from the two companies. Dimension Super car CAR CITY Attention to Detail HighLow Outcome Orientation LowHigh People Orientation LowHigh Team Orientation LowHigh AggressivenessLowHigh StabilityHighLow Innovation and Risk Taking LowHigh

25. Organization Culture Issues Creating an Ethical Culture Creating an Ethical Culture High in risk tolerance High in risk tolerance Low to moderate aggressiveness Low to moderate aggressiveness Focus on means as well as outcomes Focus on means as well as outcomes Creating an Innovative Culture Creating an Innovative Culture Challenge and involvement Freedom Trust and openness Idea time Playfulness/humor Conflict resolution Debates Risk-taking

26. Super car city Car city OrientedPeopleoutcome Outcome Relate to group or people Relate to outcome Task risk Relationship problem Trust input and processing

27. Exhibit 15–6Group versus Individual Decision Making Criteria of Effectiveness Groups Individuals Accuracy Speed Creativity Degree of acceptance Efficiency

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