1. Organizational Culture
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2. Organizational Culture
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3. The organizational way
What Corporate culture stands for !!!!!
Vertical Loading: The intent here is to close the gap between “doing” and “managing”. When a job is vertically loaded, responsibilities and controls formerly reserved for management are given to employees as part of the job. E.g.: deciding on work methods, advising training, providing increased freedom in time management, encouraging workers to do their own trouble-shooting, provide workers with increased knowledge of the financial aspects.
Forming natural work teams: This gives employees ownership of the work and improves the chances they will view it as meaningful and important rather than irrelevant and boring.
Establishment of customer relationships: direct relationships between workers and clients creates additional opportunities for feedback, increases the need to develop and exercise interpersonal skills, increases autonomy by giving individuals personal responsibility for deciding how to manage their relationships with people who receive the output of their work.
Combine jobs: putting jobs together increases task identity and requires the individual to use a greater variety of skills in performing the job, increasing the meaningfulness of the work.
Employee receipt of direct feedback: it usually is advantageous for workers to learn about their performance directly as they do their job rather than from management on occasional basis.
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4. Organizational Culture
What can you readily identify, but can’t accurately define?
What does every great business have that other competitors do not?
What is it makes a business into a cult?
It’s the culture
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5. Organizational Culture “The way we do things around here”
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6. The way we do things around here
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7. Organizational Culture The way we do things around here
The shared values and norms in an organization that are taught to incoming employees.
It involves common beliefs and feelings, regularities in behavior, historical process for transmitting values and norm.
There are three ways to do things around here:
The right way.
The wrong way
Our way (the company way).
The way we do things around here
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8. The company way
Organizational Culture is the collection of beliefs, expectations, and values learned and shared by a corporation’s members and transmitted form one generation of employees to another.
Vertical Loading: The intent here is to close the gap between “doing” and “managing”. When a job is vertically loaded, responsibilities and controls formerly reserved for management are given to employees as part of the job. E.g.: deciding on work methods, advising training, providing increased freedom in time management, encouraging workers to do their own trouble-shooting, provide workers with increased knowledge of the financial aspects.
Forming natural work teams: This gives employees ownership of the work and improves the chances they will view it as meaningful and important rather than irrelevant and boring.
Establishment of customer relationships: direct relationships between workers and clients creates additional opportunities for feedback, increases the need to develop and exercise interpersonal skills, increases autonomy by giving individuals personal responsibility for deciding how to manage their relationships with people who receive the output of their work.
Combine jobs: putting jobs together increases task identity and requires the individual to use a greater variety of skills in performing the job, increasing the meaningfulness of the work.
Employee receipt of direct feedback: it usually is advantageous for workers to learn about their performance directly as they do their job rather than from management on occasional basis.
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9. The company way
The beliefs and values shared by people who work in an organization
How people behave with each other
How people behave with customers/clients
How people view their relationship with stakeholders
People’s responses to energy use, community involvement, absence, work ethic, etc.
How the organisation behaves to its employees – training, professional development, etc.
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10. Organizational Culture
May be driven by:
Vision – where the organization wants to go in the future
Mission Statement – summary of the beliefs of the organization and where it is now
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11. Organizational Culture
May be reflected in:
Attitude and behaviour of the leadership
Attitude to the role of individuals in the workplace – open plan offices, team based working, etc.
Logo of the organization
The image it presents to the outside world
Its attitude to change
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12. Organizational Culture
What corporate culture do you think the following businesses have managed to develop?
Nike
Copyright: alexbol
McDonalds
Copyright: alexallied
Virgin Group
Copyright: Joshua2150,
The Body Shop
Copyright: fadaquiqa,
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13. The company way
The organizational culture generally reflects the values of the founder(s) and the mission of the firm.
Cultural Intensity: Is the degree to which members of a unit accept the norms, values, or other culture content associated with the unit. (Depth)
Cultural Integration: Is the extent to which units throughout an organization share a common culture. (Breadth)
Vertical Loading: The intent here is to close the gap between “doing” and “managing”. When a job is vertically loaded, responsibilities and controls formerly reserved for management are given to employees as part of the job. E.g.: deciding on work methods, advising training, providing increased freedom in time management, encouraging workers to do their own trouble-shooting, provide workers with increased knowledge of the financial aspects.
Forming natural work teams: This gives employees ownership of the work and improves the chances they will view it as meaningful and important rather than irrelevant and boring.
Establishment of customer relationships: direct relationships between workers and clients creates additional opportunities for feedback, increases the need to develop and exercise interpersonal skills, increases autonomy by giving individuals personal responsibility for deciding how to manage their relationships with people who receive the output of their work.
Combine jobs: putting jobs together increases task identity and requires the individual to use a greater variety of skills in performing the job, increasing the meaningfulness of the work.
Employee receipt of direct feedback: it usually is advantageous for workers to learn about their performance directly as they do their job rather than from management on occasional basis.
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14. Creation of Organizational Culture
Beliefs and values of the organization’s founder
Societal norms of firm’s native/host country
Problems of external adaptation and survival
Problems of internal integration
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15. Managing Performance through culture
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16. Enhancing performance through culture drivers
The trick that many organizations have missed is that shared behavior in organizations (culture) does not come because they teach people how to behave in a particular way. The behavior comes as a consequence of a number of different drivers.
These drivers include:
Reward systems;
The way that winners and losers are defined and treated;
The examples that are provided by influential managers, and where they place their emphasis;
The nature of the work, and the degree to which tasks are mechanized;
The structure.
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17. Enhancing performance through culture drivers
Working with behavior alone is unlikely to produce any sustainable change.
It is the drivers that influence behavior.
If you want to change behavior, change the drivers.
As a part of the strategic planning process, it is essential to understand how the organizational culture influences results today, and what limits it might put on your capacity to change the future.
There are two characteristics that have a big impact on culture: Fear and Freedom
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18. Fear Fear is a primary driver of human behavior.
To a greater or lesser extent we are all defined by our fear.
Add a little fear into an organization and people stop taking chances, spend more time diluting responsibility in meetings, and introduce lots of checking steps.
If the fear persists for years, then people become increasingly uncomfortable with even minor change.
Build an organization with low levels of fear and you will see the opposite.
Here you will find creativity, limited use of hierarchy to get things done, all kinds of attempts to make changes, and probably some genuine breakthroughs.
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19. Fear You can measure the fear level using the following questions:
What are people afraid of in this organization (losing their jobs, making mistakes, not getting pay increase, their managers. etc)?
How rational is that fear?
How does that fear affect their behavior?
To what extent have the current managers developed this fear?
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20. Freedom
People need to have freedom to work within fairly broad guidelines so that they can get the required outcomes.
To be able to confer this freedom, an organization needs to be confident it has the right people, the right information systems to support their decision making process and the right feedback system to ensure that every thing does not go of the rails.
When people have this freedom, then the organization finds ways around day-to-day problems and it is able to cater for new challenges and opportunities.
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21. Fear-freedom Matrix
Fear
Low
freedom
Low
High
High
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22. Fear-freedom Matrix
Low fear + High freedom = innovative, accepting of change, experimental.
Low fear + Low freedom = frustration, challenge of authority, rules will be broken.
High fear + High freedom = upward delegation, meetings to share decisions, low innovation.
High fear + Low freedom = dependence on rules and precedents, resistance to change.
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23. Organizational Culture Dimensions
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25. Artifacts/Symbols
- Visible objects, actions, stories that represent the culture
- Most easily changed
- Rites, rituals, ceremonies
- Stories, myths, legends
- Symbols
- Language/jargon/gestures
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26. Behavior Patterns - Shared ways of interacting, approaching a task
- Shared ways of responding to something new
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27. Norms Socially constructed preferences
- Group expectations about how things should be done
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28. Values Preferred states Feelings & beliefs about what’s good or right
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29. Shared Assumptions - Taken for granted - Not conscious
- Hard to change
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30. Culture Differences
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31. Cultural Differences
Research on pace of life in various countries suggest that Westerners have fairly precise measures of time and a stronger concern for punctuality than most other people
Mono-chronic style individuals focus on one thing at a time; characteristic of USA
Poly-chronic style individuals focus on several things at one time; characteristics of Latin American countries
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32. Dimensions of Cultural Differences
Research has shown that countries differ significantly in
Interpersonal trust
Power-distance
Avoidance of uncertainty
Individualism vs. Collectivism
Men vs. women.
Long term Vs. short term orientation
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33. Doing Business in Latin America
Few people rush into business
Men and women congregate into separate groups at social functions
Latin Americans stand more closely to each other than North Americans when in conversation
Men may embrace
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34. Doing Business in Latin America (Cont.)
Guests are expected to arrive late, with exception of American guests
Little concern about deadlines
Machismo - expectation that businessmen will display forcefulness, self-confidence, leadership with flourish
Fatalism
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35. Doing Business in East Asia
Japan, Korea, China
Meetings devoted to pleasantries; serving tea, engaging in chitchat
Seniors and elders command respect
Consciously use slow down techniques as bargaining ploys
Business cards should be bilingual
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36. Doing Business in Russia
Protocol-conscious
Do business only with highest ranking executives
Appear stiff and dull
More expressive in private than in public
Hard to draw up contracts due to language barriers
Have no advertising experience
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37. Doing Business in the Middle East
Prefer to act through trusted third parties
Personal honor given high premium
Fatalism
Emotionally expressive
Intense eye contact
Guests should avoid discussing politics, religion, host’s family and personal professions
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38. Some important culture differences
Rose Knotts summarized important cultural differences between U.S. and foreign managers as follow:
Americans place an exceptionally high priority on time, viewing time as an asset. Many foreigners place more worth on relationships. This difference results in foreign mangers often viewing U.S. managers as “more interested in business than people”.
Personal touching and distance norms differ around the world. Americans generally stand three feet from each other in carrying on business conversations, but Arabs and Africans stand about one foot apart. Touching another person with the left hand in business dealings is taboo in some countries. Americans managers need to learn personal rules of foreign managers with whom they interact in business.
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39. Some important culture differences
People in some cultures do not place the same significance on material wealth as Americans often do. Lists of the “largest corporations” and “highest paid” executives abound in the untied states. “More is better” and “Bigger is better” in the united states, but not everywhere else. This can be a consideration in trying to motivate individuals in other countries.
Family roles and relationships vary in different countries. For example, males are viewed more than females in some cultures, and peer pressure, work situations, and business interactions reinforce this phenomenon.
Language differs dramatically across countries, even countries where people speak the language. Words and expressions commonly used in one country may be greedy or disrespectful in another.
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40. Some important culture differences
6 Business and daily life in some societies is governed by religious factors. Prayer times, holidays, daily events, and dietary restrictions, for example, need to be respected by American managers not familiar with these practices in some countries.
7. Time spent with family and quality of relationships are more important in some cultures than the personal achievement and accomplishments espoused by the traditional American managers. For example, where a person is in the hierarchy of a firm’s organizational structure, how large the firm is, and where the firm is located are much more important factors to American managers than to many foreign managers.
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