1、What is Culture?A system of values and norms sharedamong a group ofpeople and,whentaken together,constitute a designfor living.What is Culture?Culture can be defined as a system of orientation in an organization consisting of basic,unconscious attitudes,of values,and of the corresponding artifact.Su
2、ch values+ve or-ve may be reinforced implicitly or explicitly over a period of time.It influence the behavior,communication,acting and judgements of the fellow colleagues.Norms and ValuesNorms:Social rules and guidelines that prescribe appropriate behavior in particular situations.Folkways:Routine c
3、onventions of everyday life.Mores:Central to functioning of society and its social life.Values:Abstract ideas about what a group believes to be good,right,and desirable.The bedrock of culture.Have emotional significance.Freedom.Determinants of CultureCulture:Norms andValue SystemsEconomic Philosophy
4、ReligionHofstedeStudy(IBM)is a general way to look at differences between cultures.4 dimensions:Power distance.Individualism versus collectivism.Uncertainty avoidance.Masculinity versus femininity.But:Assumption of one-to-one relationship between culture and nation-state.Research may be culturally b
5、ound.Respondents worked within a single company.Work is beginning to look dated(1967-1973).Work Related Values for Selected Countries Power Distance Uncertainty Avoidance Individualism Masculinity Argentina 49 86 46 56 Brazil 69 76 38 49 France 68 86 71 43 India 77 40 48 56 Japan 54 92 46 95 Mexico
6、81 82 30 69 Netherlands 38 53 80 14 U.S.A.40 46 91 62 China 79 39 16 55 Culture and EthicsDo the“right”thing.Thomas Donaldsons Three Principles:Respect for core human values(human rights),which determine the absolute moral threshold for all business activities.Respect for local tradition.The belief
7、that context matters when deciding what is right and what is wrong.The Organization and CultureOrganizational CultureValues,beliefs,behaviors,customs,and attitudes that help the members of the organization understand what it stands for,how it does things,and what it considers important.Multicultural
8、ismThe broad issues associated with differences in values,beliefs,behaviors,customs,and attitudes held by people in different cultures.DiversityWhen members of a group differ from one another along dimensions such as age,gender,or ethnicity.Trends in Diversity and MulticulturalismReasons for Increas
9、ing Diversity and MulticulturalismIncreasing diversity and multiculturalism in organizationsIncreased aware-ness that diversityimproves the qualityof the workforceThe globalizationmovementLegislation andlegal actionChangingdemographics inthe labor forceHow Diversity and MulticulturalismPromote Compe
10、titive AdvantageResourceacquisitionargumentSystemsflexibilityargumentCreativityargumentCompetitiveAdvantageCostargumentProblem-solvingargumentMarketingargumentDiversity and Competitive AdvantageDiversity promotes competitive advantage by:increasing organizational systems flexibility.bringing added c
11、reativity.increasing the market scope of products.broadening the resources acquisition basis.adding a diversity of viewpoints to problem-solving decision-making processes.decreasing the cost of doing business.Multiculturalism and ConflictSources of ConflictPersonnel actions being attributed to diver
12、sity status.Misunderstood,misinterpreted,or inappropriate actions between people or groups.Cultural differences in work hours,personal styles,interpersonal relations,and conflict.Fear,distrust,or individual prejudices.Managing Diversity and Multiculturalism in OrganizationsIndividual StrategiesUnder
13、standing the nature and meaning of diversity and multiculturalism.Developing empathy in understanding the perspective of others.Developing tolerance of fundamental cultural differences.Having a willingness to communicate and discuss diversity and multiculturalism issues.Managing Diversity and Multic
14、ulturalism in Organizations(contd)Organizational ApproachesOrganizational PoliciesActively seek a diverse and varied workforce.Positive responses to diversity problems.Mission statement of commitment to diversity.Organizational PracticesSupport networks,structured benefits packages,flexible working
15、hours,and diversity in work groups and teams.Diversity and Multicultural TrainingTraining that enables organization members to function in a diverse and multicultural environment.Organizational CultureIncorporating into a culture the valuation of diversity.“An organizations capacity to execute its s
16、trategy depends on its“hard”infrastructure-its organization structure and systems-and on its“soft”infrastructure-its culture and norms.”Amar Bhide“Quote”What Makes Up a Companys Culture?Beliefs about how business ought to be conductedValues and principles of managementWork climate and atmospherePatt
17、erns of“how we do things around here”Oft-told stories illustrating companys valuesTaboos and political dontsTraditionsEthical standardsWhere Does Corporate Culture Come From?Founder or early leaderInfluential individual or work groupPolicies,vision,or strategiesTraditions,supervisory practices,emplo
18、yee attitudesOrganizational politicsRelationships with stakeholdersInternal sociological forcesHow Is a Companys Culture Perpetuated?Selecting new employees based on how well their personalities“fit”inSystematic indoctrination of new employeesSenior employees reinforcement of core valuesStory-tellin
19、g of company legendsCeremonies honoring employees who display cultural idealsVisibly rewarding those who follow cultural normsForces and Factors Causing Culture to EvolveInternal crisesRevolutionary technologiesNew challengesArrival of new leadersTurnover of key employeesDiversification into new bus
20、inessesExpansion into different geographic areasRapid growth adding new employeesMerger with or acquisition of another companyGlobalization Culture and Strategy Execution:Ally or Obstacle?Culture can contribute to-or hinder-successful strategy executionRequirements for successful strategy execution
21、may-or may not-be compatible with cultureA close match between culture and strategy promotes effective strategy executionWhy Culture Matters:Benefits of a Good Culture-Strategy FitStrategy-supportive cultures Shape mood and temperament of the work force,positively affecting organizational energy,wor
22、k habits,and operating practices Provide standards,values,informal rules and peer pressures that nurture and motivate people to do their jobs in ways that promote good strategy executionStrengthen employee identification with the company,its performance targets,and strategyWhy Culture Matters:Benefi
23、ts of aGood Culture-Strategy Fit (continued)Strategy-supportive culturesStimulate people to take on the challenge of realizing the companys vision,do their jobs competently and with enthusiasm,and collaborate with others to execute the strategyOptimal condition:A work environment thatPromotes can do
24、 attitudesAccepts changeBreeds needed capabilitiesCanDo!Types of Corporate CulturesStrong vs.Weak CulturesUnhealthy CulturesAdaptive CulturesCharacteristics ofStrong Culture CompaniesConduct business according to a clear,widely-understood philosophy Management spends considerable time communicating
25、and reinforcing valuesValues are widely shared and deeply rootedTypically have a values statementCareful screening/selection of new employees to be sure they will“fit in”Visible rewards for those following norms;penalties for those who dontHow Does a Culture Come to Be Strong?Leader who establishes
26、values consistent withCustomer needsCompetitive conditionsStrategic requirementsA deep,abiding commitment to espoused values and business philosophyPracticing what is preached!Genuine concern for well-being ofCustomersEmployeesShareholdersValuesCustomersEmployeesShareholdersCharacteristics ofWeak Cu
27、lture CompaniesMany subculturesFew values and norms widely sharedFew strong traditionsLittle cohesion among the departmentsWeak employee allegiance to companys vision and strategyNo strong sense of company identityCharacteristics of Unhealthy or LowPerformance CulturesPoliticized internal environmen
28、tIssues resolved on basis of turfHostility to changeExperimentation and efforts to alter status quo discouragedAvoid risks and dont screw upPromotion of managers more concerned about process and details than resultsAversion to look outside for superior practicesMust-be-invented here syndromeAvoidris
29、ks!Hallmarks of Adaptive CulturesIntroduction of new strategies to achieve superior performanceStrategic agility and fast response to new conditionsRisk-taking,experimentation,and innovation to satisfy stakeholdersProactive approaches to implement workable solutionsEntrepreneurship encouraged and re
30、wardedTop managers exhibit genuine concern for customers,employees,shareholders,suppliersTypes of Culture-Changing ActionsRevising policies and procedures to help drive cultural changeAltering incentive compensation to reward desired cultural behaviorVisibly praising and recognizing people who displ
31、ay new cultural traitsHiring new managers and employees who have desired cultural traits and can serve as role modelsReplacing key executives strongly associated with old cultureCommunicating to all employees the basis for cultural change and its benefits Symbolic Culture-Changing ActionsEmphasize f
32、rugalityEliminate executive perksRequire executives to spend time talking with customersAlter practices identified as cultural hindrancesVisible awards to honor heroesCeremonial events to praise people and teams who“get with the program”Substantive Culture-Changing ActionsBenchmarking and best pract
33、icesSet world-class performance targetsBring in new blood,replacing traditional managersShake up the organizational structureChange reward structureIncrease commitment to employee trainingReallocate budget,downsizing and upsizingEstablishing Ethical Standards and ValuesA culture based on ethical pri
34、nciples is vital to long-term strategic successEthics programs make ethical conduct a way of lifeValue statements serve as a cornerstone for culture-buildingA code of ethics serves as a cornerstone for developing a corporate conscienceApproaches to establishing ethical standardsWord-of-mouth indoctr
35、ination and traditionWritten documents Our ethicsprogramconsists of.Value Statements and Codes of EthicsTopics in Value StatementsCustomer importanceCommitment to qualityCommitment to innovationRespect for individual employeeImportance of honestyDuty to stockholdersDuty to suppliersCorporate citizen
36、shipProtecting the environmentTopics in Codes of EthicsHonesty&observing the lawConflicts of interestFairness in marketing practicesUsing inside informationSupplier relationsCorrupt practicesAcquiring information Political activitiesUse of company assetsProprietary informationPricing,contracting,&bi
37、llingInstilling Values and Ethics in the CultureIncorporate values statement and ethics code in employee training programsScreen out applicants who do not exhibit compatible character traitsCommunicate the values and ethics code to all employeesManagement involvement and oversightStrong endorsement
38、by CEOWord-of-mouth indoctrinationBuilding a Spirit of HighPerformance into the CultureEmphasize achievement and excellencePromote a results-oriented culturePursue practices to inspire people to excelDesired outcomeProduce extraordinary results with ordinary peopleApproaches to Building aSpirit of H
39、igh PerformanceTreat employees with dignity and respectTrain each employee thoroughlyEncourage employees to use initiativeSet clear performance standardsUse rewards and punishment to enforce high-performance standardsHold managers responsible for employee developmentGrant employees autonomy to contr
40、ibuteMake champions out of people who excelPeople Management Practices ThatPromote a Spirit of High PerformanceBelief in the worth of the individualStrong commitment toJob securityPromotion from withinManagerial practices that encourage employees to exercise individual initiative and creativityPride
41、 in doing the“itty-bitty,teeny-tiny things”rightCONCLUSIONTo build strong corporate working culture we need to:Understand and accept the cultural differences between countries,states,provinces,etc.to avoid conflicts.Manage diversity and multiculturalism within an organization for better efficiency.Identify industrial and organizations needs for the way we should workAnalyze whats the present working culture and implement necessary working culture changing actions when required.Sustain the appropriate culture through proper human resource management policies and practices.
