Corporate Culture and Values(2015PT)

8/15/2019 Corporate Culture and Values(2015PT)

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Corporate Cultureand Values


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What is Culture?

• Values, norms, guiding beliefs, and understandinare shared by members of an organization

• Taught to new members as the correct way to think, fbehave

• Organizational culture eists at two levels• Observable symbols

• !nderlying values


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"evels of Cor#orate Culture


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$mergence and %ur#ose of Cult

Provides sense of organizationalidentity

Two critical functions in organizations&

Internal Integration ' collective identityand know how to work together

External Adaption ' how the organizationmeets goals and deals with outsiders


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• (Organizational culture, is the pattern of basic assumpta given group has invented, discovered, or developed in lto cope with the problems of external adaptation and inintegration – a pattern of assumptions that has worked enough to be considered valid and therefore, to be taugmembers as the correct way to perceive, think, and feerelation to these problems ) *+chein, -./0


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1ow do you read a culture?

• +ymbols

• Obects,%hysicalartifacts,uniforms thatconvey somelarger meaning

• "anguage• Words or #hrases t

commonly used toinside and outside em#hasize its main

• 4isney carefully chwords it uses to de

everything

• 5o customers, on

• (cast members) em#loyees

• (6o on stage) *to

• (costumes) *not

1el#s convey to cathat they7re in thentertainment bu

• 8ites and Ceremonies

• 8ites and rituals are set ofactivities that are usedover and over again ats#ecial times to em#hasizekey organizational values


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Organizational 8ites


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1ow do you read a culture?

+tories◦ +tories about the boss, the founder of the com#any, a

the 3rm overcame, em#loyees getting 3red and new being hired

◦ %articular set of stories can reveal a great deal about values and assum#tions

◦ +tories kee# alive the #rimary values of the organizat#rovide shared understanding among all em#loyees


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Organizational Chart for5ordstrom

Nordstrom’s structure reflects the emphasis the department store chain puts

empowering and supporting lower-level employees.


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1ow 4o 9ou :ee# ; Culture 6oing?

• +election of 5ew %eo#le• +ocialization& "earning the 8o#es

• $valuationehavior can s#eak louder tvisions


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+te#s in +ocialization

1. Careful selection

2. Challenging earlywork assignments

3. raining to developcapa!ilities consistentwith culture

". #ewards thatsustain the culture

$. %doption ofcultural value policies

&. #ituals' ta!oos'rites' and stories toreinforce culture

(. #ole model to

sustain culture

#emoval of employeewho deviate from cul

#emoval of candidatwho do not )fit* cultur


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$valuation


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8elationshi# of $nvironment and +trategy toCor#orate Culture

Needs of the Environment

S t r a t e g i c

F o c u s

Adaptability

Culture

Clan

Culture

Bureaucratic

Culture

Mission

Culture

Flexibility

External

Internal

Stability

Sources: Based on Daniel R. Denison and Aneil K. Mishra,

“Toward a Theory of Organizational Culture and Effeti!eness,"

Organization Science #, no. $ %Marh&A'ril ())*+ $-&$/0 R.

1ooi23erg and 4. 5etro6, “On Culture Change 7sing the Co8'any

9alues 4ra8ewor6 to 1el' :eaders E;eute a Transfor8ational


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A

Com#eting Values

Towards Flexibility

and Discretion

Towards Stability

and Control

Towards Ext

F

Towards Internal

Focus


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B

>ureaucratic and ;da#tability Values

Towards Flexibility

and Discretion

Towards Stability

and Control

Towards ExTowards Internal

Focus

Values adaptability, innovat

creativity, responsiveness t

external threats & opportun

Values growth, resourc

acuisition, external su

Values in!or"ation

"anage"ent, co""unication,

policies & procedures

Values stability, continuity, consistency,

e!!iciency, standardi#ation, s"ooth

!lowing production


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Clan and =ission ValuesTowards Flexibility

and Discretion

Towards Stability

and Control

Towards Ex

Focu

Di!!eren

Towards Internal

Focus and Integration

Value $roductivity, E!!

$ro!it%I"pact, cco"p

Value $lanning, 'oal(Settin

Decisiveness, Control throu

"easurable results

Value )u"an *elations

Develop"ent

Value Tea"wor+, Cohesion,

orale, $articipation


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D

Organizational $Eectivenessdaptabi

ission+ureaucratic

Clan

,nnovation New ,deas -

New arkets Customers -

/ffectiveness

/ffectiveness 0 new products' creat

solutions' cutting-edge ideas' growt

new markets

Competition - roductivity -

/ffectiveness

/ffectiveness 0 achieving goals' !e

competition' increasing market sha

financial return

articipation -

/mpowerment Commitment -

/ffectiveness

/ffectiveness 0 employee morale

satisfaction' # development

Control - /fficiency - /ffectiveness

/ffectiveness 0 efficiency' smooth-

functioning' predicta!ility


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.

=anagement +killsdaptabilit

ission+ureaucratic

Clan

anaging ,nnovation

anaging the uture

anaging Continuous ,mprovem

anaging Competitiveness

/nergi4ing /mployees

anaging Customer ocus

anaging the Control 5ystem

anaging Coordination

anaging eams

anaging ,nterpersonal #elationships

anaging 6evelopment of 7thers


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-

"eadershi# +tyles ;nd Valuesore .pen%*esponsive

ore Structured%For"al

ore Inv

*is+(t

ore Conservative,

Cautious

ore Cooperative,

Tea"(orientedore Dy

Co"pet

ore Concerned,

Supportive

ore Dire

'oal(orie

,nnovator

8isionary

Coordinator

onitor roducer

6irector

entor

acilitator


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!sing the CV framework

The framework serves as a basis for

• diagnosing the #redominant culture of anorganization

• assessing whether it is res#onding

a##ro#riately to the challenges and changethe environment

;ltogether, the framework hel#s leaders toim#rove in a com#rehensive way the

organizations7 #erformance and value


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ata 5trategic anagement 9roup :59;' the

largest ,ndian-owned management consulting firm'

has unveiled a report'

he 5trategy-Culture %lignment. -he report is a first-of-its-kind attempt in ,ndia to assess the impact of

strategy-culture alignment on profita!ility.

he report is a guide for organisations to align their

culture to their !usiness goals.)ighlights o! the report•Companies with strong strategy-cu

reported / percent more profita!ilitwith low strategy-culture alignment.

•ore than hal! the nu"ber o! org

turnover e


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)% planned culture' which is signific

and created consciously' keeping in

organi4ation’s mission and vision'

the e


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Jon R. Katzenbach; Ilona Stefen; Caroline Kronley. Cultural Chan"e #hat Stic$s %&R' J)*+,-S#

• Give #rinci#les to =anage Culture Change• =atch +trategy and Culture• Gocus on a Gew Critical +hifts in >ehavior

• 1onour the +trengths of 9our $isting Culture

• Hntegrate Gormal and Hnformal Hnterventions• Gormal HnterventionsI 8e#orting structures, training, #erform

management, com#ensation and rewards, internal commun

• Hnformal interventions I behaviour modelling by senior leademeaningful managerIem#loyee connections, #eerItoI#eer in

• =easure and =onitor Cultural $volution

https://hbr.org/search?term=jon+r.+katzenbachhttps://hbr.org/search?term=jon+r.+katzenbachhttps://hbr.org/search?term=ilona+steffenhttps://hbr.org/search?term=ilona+steffenhttps://hbr.org/search?term=caroline+kronleyhttps://hbr.org/search?term=caroline+kronleyhttps://hbr.org/search?term=caroline+kronleyhttps://hbr.org/search?term=caroline+kronleyhttps://hbr.org/search?term=ilona+steffenhttps://hbr.org/search?term=ilona+steffenhttps://hbr.org/search?term=jon+r.+katzenbachhttps://hbr.org/search?term=jon+r.+katzenbach


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Cultural intervention can and should bean early priority—a way to clarify what your company is capable of, even as yourene your strategy.

Targeted and integrated culturalinterventions, designed around changinga few critical behaviors at a time, canalso energize and engage your most

talented people and enable them tocollaborate more eectively andeiciently.Coherence among your culture,

your strategic intent, and yourperformance priorities can make

your whole organization more


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Culture +trength andOrganizational +ubcultures

• Culture strength is the degree of

agreement among members of anorganization about s#eci3c values

• Sucultures reJect the common#roblems, goals, and e#eriences of a teaor de#artment

• Dierent departments may have their ownnorms

2B

$thical Values and +ocial


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$thical Values and +ocial8es#onsibility

Ethics• $thics refer to the code of moral #rinci#les and valuegovern the behaviors of a #erson or grou# with res#ewhat is right or wrong

!anagerial Ethics• $thical decisions go far beyond behaviors governed b

• =anagerial ethics guide the decisions and behaviors managers

+ources of Hndividual $thica


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+ources of Hndividual $thica%rinci#les and ;ctions

8elationshi# between the


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2.

8elationshi# between the8ule of "aw and $thical+tandards


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2-

Cor#orate +ocial 8es#onsibility *C+

• "oes it pay to e good#

• =anagement7s obligation to make choicesand take action that #ositively im#actstakeholders

• Hncrease in social res#onsibility

• Customers and #ublic are #aying closerattention to what organizations do

• +ocial res#onsibility can enhance a 3rm7sre#utation

1ow =anagers +ha#e


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1ow =anagers +ha#eCulture and $thics

•ValueI>ased "eadershi#• Gormal +tructure and +ystems

• +tructure

• 4isclosure =echanisms

• Code of $thics

• Training %rograms

• =anagers #lay key role in #rovidingleadershi# and eam#les of ethicalbehavior

Characteristics of


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Characteristics ofValuesI>ased "eaders

Cor#orate Culture and


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Cor#orate Culture and$thics in a6lobal $nvironment• The global environment #resents tough

ethical challenges• Countries have varied attitudes and belief

• Com#onents that characterize a globalculture&

• =ulticultural rather than national values

• >asing status on merit rather than nationality

• =anagers must think broadly about ethics

• Social audits measure and re#ort ethicasocial, and environmental im#act of a

com#any7s o#eration

Corporate Culture and Values(2015PT)

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