Group 4: Corporate Group 4: Corporate CultureCulture

AbstractAbstract

In this presentation, we will discuss corporate cultureIn this presentation, we will discuss corporate culture We focus on talking about Competing Values FrameworkWe focus on talking about Competing Values Framework The Competing Values Framework (CVF) is one of the most The Competing Values Framework (CVF) is one of the most

influential and extensively used models in the area of influential and extensively used models in the area of organizational culture researchorganizational culture research

Briefly describe the component of CVFBriefly describe the component of CVF Discuss the use of Organization Culture Assessment InstrumentDiscuss the use of Organization Culture Assessment Instrument

Introduction: Corporate CultureIntroduction: Corporate Culture

Many different definitions of the conceptMany different definitions of the concept The central notion is that culture relates to core The central notion is that culture relates to core

organizational valuesorganizational values All organizations have cultures or sets of valuesAll organizations have cultures or sets of values Influence the way people behaveInfluence 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.

ModelModel

Competing Value Framework (CVF) Competing Value Framework (CVF) Focus on the competing tensions and conflict occurred in Focus on the competing tensions and conflict occurred in

the systemthe 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

Competing Value FrameworkCompeting Value Framework

Competing Value FrameworkCompeting Value Framework

human relations modelhuman relations model open system modelopen system model rational goal modelrational goal model internal process modelinternal process model an effective organization may need to perform well on all an effective organization may need to perform well on all

four sets of criteriafour sets of criteria

Four organizational cultureFour organizational culture

Group CultureGroup Culture Developmental Culture (Adhocracy)Developmental Culture (Adhocracy) Rational CultureRational Culture Hierarchical CultureHierarchical Culture Each represents one of the four major models Each represents one of the four major models

organizational theoryorganizational theory

Group CultureGroup Culture

Concern with human relations modelConcern with human relations model Support flexibilitySupport flexibility Maintain focus internallyMaintain focus internally Tends to be thinking in the interest of groups as a wholeTends to be thinking in the interest of groups as a whole Core value: Belonging, trust, participationCore value: Belonging, trust, participation Motivation: membership, cohesivenessMotivation: membership, cohesiveness Effectiveness criteria: member commitment, participationEffectiveness criteria: member commitment, participation

Developmental Culture Developmental Culture (Adhocracy)(Adhocracy)

Concern with open system modelConcern with open system model Support flexibilitySupport flexibility Focus on external environmentFocus on external environment Willing to take riskWilling to take risk More able to develop a vision of the organizationMore able to develop a vision of the organization Core Value: company growth, size and the competitiveness Core Value: company growth, size and the competitiveness

outsideoutside Motivation factor: Creativity, VarietyMotivation factor: Creativity, Variety Effectiveness criteria: market development, resources Effectiveness criteria: market development, resources

acquisitionacquisition

Rational CultureRational Culture

Concerned about the rational goal modelConcerned about the rational goal model Focus on goal achievement, organization performanceFocus on goal achievement, organization performance Tends to be directive, functional working behaviorTends to be directive, functional working behavior Core value: pursuit on a well-defined objectiveCore value: pursuit on a well-defined objective Motivation factor: competition and a successful Motivation factor: competition and a successful

achievementachievement Effectiveness criteria: planning, productivity, efficiencyEffectiveness criteria: planning, productivity, efficiency

Hierarchical CultureHierarchical Culture

Concern about internal process modelConcern about internal process model Support stabilitySupport stability Tends to be conservative and cautiousTends to be conservative and cautious Core value: executions of regulationsCore value: executions of regulations Motivation factor: security, order, rulesMotivation factor: security, order, rules Effectiveness criteria: control, stability Effectiveness criteria: control, stability

Four organizational cultureFour organizational culture

Organization Culture Assessment Instrument (OCAI)Organization Culture Assessment Instrument (OCAI)

assess six key dimensions of organizational assess six key dimensions of organizational cultureculture

providing a picture of how your organization providing a picture of how your organization operates and the values that characterize it operates and the values that characterize it

There are no right and wrong answer, but usually There are no right and wrong answer, but usually different types of organization will produce similar different types of organization will produce similar answersanswers

OCAI methodOCAI 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

OCAI methodOCAI method

Dominant organizational Dominant organizational characteristicscharacteristics

Group Culture: Personal, like a family Group Culture: Personal, like a family Developmental Culture (Adhocracy): Entrepreneurial, risk Developmental Culture (Adhocracy): Entrepreneurial, risk

taking taking Rational Culture: Competitive, achievement oriented Rational Culture: Competitive, achievement oriented

Hierarchical Culture: Controlled and structuredHierarchical Culture: Controlled and structured

OCAI methodOCAI method

Leadership styleLeadership style Group Culture: facilitatingGroup Culture: facilitating Developmental Culture (Adhocracy): innovative Developmental Culture (Adhocracy): innovative Rational Culture: aggressive, result-orientedRational Culture: aggressive, result-oriented Hierarchical Culture: coordinating, efficiency orientedHierarchical Culture: coordinating, efficiency oriented

OCAI methodOCAI method

Management of employeesManagement of employees Group Culture: Teamwork, consensus, participationGroup Culture: Teamwork, consensus, participation Developmental Culture (Adhocracy): freedom, uniqueness Developmental Culture (Adhocracy): freedom, uniqueness

Rational Culture: Competitiveness and achievementRational Culture: Competitiveness and achievement Hierarchical Culture: Security, predictabilityHierarchical Culture: Security, predictability

OCAI methodOCAI method

Organizational glueOrganizational glue Group Culture: Loyalty and mutual trustGroup Culture: Loyalty and mutual trust Developmental Culture (Adhocracy): Commitment to Developmental Culture (Adhocracy): Commitment to

innovation, development innovation, development

Rational Culture: achievement and goal accomplishmentRational Culture: achievement and goal accomplishment Hierarchical Culture: Formal rules and policiesHierarchical Culture: Formal rules and policies

OCAI methodOCAI method

Strategic emphasisStrategic emphasis Group Culture: Human development, opennessGroup Culture: Human development, openness Developmental Culture (Adhocracy): Acquisition of Developmental Culture (Adhocracy): Acquisition of

resources,resources,creating new challengescreating new challenges

Rational Culture: Competitive actions and winning Rational Culture: Competitive actions and winning

Hierarchical Culture: stabilityHierarchical Culture: stability

OCAI methodOCAI method

Criteria for successCriteria for success Group Culture: teamwork, concern for peopleGroup Culture: teamwork, concern for people Developmental Culture (Adhocracy): Unique and new Developmental Culture (Adhocracy): Unique and new

products and servicesproducts and services Rational Culture: Winning in the marketplaceRational Culture: Winning in the marketplace Hierarchical Culture: efficient, low costHierarchical Culture: efficient, low cost

ResearchResearch

Researcher: Eric A Goodman, Raymond F Zammuto, Blair D Researcher: Eric A Goodman, Raymond F Zammuto, Blair D GiffordGifford

Year: 2001Year: 2001 Named: THE COMPETING VALUES FRAMEWORK: Named: THE COMPETING VALUES FRAMEWORK:

UNDERSTANDING THE IMPACT OF ORGANIZATIONAL UNDERSTANDING THE IMPACT OF ORGANIZATIONAL CULTURE ON THE QUALITY OF WORK LIFE CULTURE ON THE QUALITY OF WORK LIFE

Source: Organization development JournalSource: Organization development Journal

Research findingResearch finding

The study uses the competing values framework as a tool The study uses the competing values framework as a tool to investigate the relationships between organizational to investigate the relationships between organizational culture and several important job related variablesculture and several important job related variables

group cultural values are positively related to group cultural values are positively related to organizational commitment, job involvement, organizational commitment, job involvement, empowerment and job satisfactionempowerment and job satisfaction

negatively related to intent to turnovernegatively related to intent to turnover hierarchical cultural values are negatively related to hierarchical cultural values are negatively related to

organizational commitment, job involvement, organizational commitment, job involvement, empowerment and job satisfactionempowerment and job satisfaction

positively related to intent to turnover positively related to intent to turnover

Case study Case study - second-hand car dealer - second-hand car dealer Peter and John, had different opinion of approaches to management. Peter Peter and John, had different opinion of approaches to management. Peter

emphasized on the human relations with the staff 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 John emphasized on planning the company goals and achieving the goals through a well-organized company structure. well-organized company structure.

Employment of employees needed to meet the technical requirements such as Employment of employees needed to meet the technical requirements such as qualification, experience, skills and historical background. They would be assigned qualification, experience, skills and historical background. They would be assigned to the most suitable post as considered by the management. 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 – 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 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 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.close 20 branched from 35 and had gained a loss of $1,000,000.

From the given information, explain what organizational From the given information, explain what organizational

culture do you expect from the two companies.culture do you expect from the two companies.

DimensionDimension Super carSuper car CAR CITYCAR CITY

Attention to DetailAttention to Detail HighHigh LowLowOutcome OrientationOutcome Orientation LowLow HighHighPeople OrientationPeople Orientation LowLow HighHighTeam OrientationTeam Orientation LowLow HighHighAggressivenessAggressiveness LowLow HighHighStabilityStability HighHigh LowLow

Innovation and Risk TakingInnovation and Risk Taking LowLow HighHigh

Organization Culture IssuesOrganization Culture Issues

Creating an Ethical Creating an Ethical CultureCulture High in risk High in risk

tolerancetolerance Low to moderate Low to moderate

aggressivenessaggressiveness Focus on means as Focus on means as

well as outcomeswell as outcomes

Creating an Creating an Innovative CultureInnovative Culture Challenge and Challenge and

involvementinvolvement FreedomFreedom Trust and opennessTrust and openness Idea timeIdea time Playfulness/humorPlayfulness/humor Conflict resolutionConflict resolution DebatesDebates Risk-takingRisk-taking

Super car citySuper car city Car cityCar city

Oriented Oriented People People outcomeoutcome

OutcomeOutcome Relate to Relate to group or group or peoplepeople

Relate to Relate to outcomeoutcome

Task riskTask risk Relationship Relationship problem problem

Trust input Trust input and and processing processing

Exhibit 15–6Exhibit 15–6 Group versus Individual Group versus Individual Decision MakingDecision Making

Criteria of Effectiveness Groups Individuals

Accuracy

Speed

Creativity

Degree of acceptance

Efficiency

THE ENDTHE END