Web Culture

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    Understanding & ManagingCorporate Culture

    BA 152

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    Characteristics of Organizations

    Environment

    CulturesPeople

    SystemsTechnologiesStructures

    StrategiesGoals

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    What is Corporate Culture?

    An organizations and/or work units

    Personality;

    Set of shared assumptions about the waythings are done; and/or

    Shared values, norms, and beliefs about

    the ways things are done.

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    Performance implications?

    Organizational guidance systems?

    Nature of cultures at Enron, Arthur Andersen,Tyco, HealthSouth,?

    Impact of differences on mergers and/or

    acquisitions?

    Corporate Culture:Why should we be concerned?

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    General Culture

    Work Unit Cultures Work Unit Cultures

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    Corporate Culture:What should we examine?

    1. Visible events, actions, and/or

    behaviors

    2. Rules, language, symbols, and/orthings

    3. Public norms/justification for the above

    4. Hidden values/assumptions for theabove

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    Corporate Culture:Where does it come from?

    The organizations founder

    A strong leader

    Reactions to a crisis

    Strategic decisions

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    Corporate CultureWhat are the components?

    Cultures Content1. Assumptions about what is important

    2. The ordering of those assumptions

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    Cultures Content: KFBS

    Achievement

    Responsibility

    Family-like

    Friendliness

    Team work

    Support

    Family-like

    Team work

    Support

    Friendliness

    Friendliness

    Achievement

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    Corporate CultureWhat are the components?

    Cultures Strength

    1. Number of shared assumptions

    2. How many employees share theseassumptions?

    3. How many employees share theordering of these assumptions?

    Cultures Content

    1. Assumptions about what is important

    2. The ordering of those assumptions

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    Many

    Many

    Many

    Some

    Some

    # of shared

    assumptions

    # of employeessharing orderingof assumptions

    # of employeessharing theseassumptions

    Few

    Few

    Cultures Strength

    CharacteristicsWeak

    CultureModerateCulture

    StrongCulture

    Few Some

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    Corporate CultureWhy is it important?

    Impact on behavior and control?

    Greater predictability of behavior

    Provides control in the absence of controls Impact on performance?

    Is it better to have a strong culture or a

    weak culture?

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    Culture and Performance

    STRATEGY

    STRUCTURE

    PERFORMANCE

    ENVIRONMENT

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    Environment, Strategy,

    and Culture

    Needs of the EnvironmentFlexibility Stability

    Strate

    gic

    Focus

    External

    Internal

    MissionCulture

    Clan

    CultureBureaucratic

    Culture

    Adaptability/Entrepreneurial

    Culture

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    Changing Your CultureHow should you start?

    TOP DOWN?

    BOTTOM UP?

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    Leadership and Culture

    . . . the only thing of real importancethat leaders do is to create and

    manage culture, and the unique talentof leaders is their ability to work with

    culture. (italics in the original)

    (From Edgar Schein, OrganizationalCulture and Leadership, 1997)

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    Maintaining/Changing

    a Corporate Culture

    1. Hiring/socializing new employees

    2. (Re)moving current employees

    3. Communicating cultural values

    4. Modeling appropriate behavior

    5. Rewarding appropriate behavior

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    Managing a Corporate

    Culture

    1. Culture is not a simple concept.

    2. Cultures influence is pervasive.

    3. Manipulating culture is not any easy

    task.

    4. There is no one best (permanent)culture for an organization.

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    Next Time

    Implementing Change at National

    Industrial Products