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Corporate Culture

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They say Culture eats Strategy for breakfast. This is true because the biggest leadership challenge to improving an organisation's internal environment is culture. Without a supportive culture even the most brilliant strategy will not get implemented successfully. Without cultural allignment to changing landscape, at best you will get compliance and with it stress, dysfunctional waste and entropy.

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Corporate Culture

  1. 2. Objectives <ul><li>Understand Corporate Culture – Characteristics, Types and Elements, Apathy and Flow </li></ul><ul><li>Discover Cultural Barriers and Variables to Change </li></ul><ul><li>Identify Actions to Improve Your Corporate Culture </li></ul>
  2. 3. What is Corporate Culture? “ Organizational culture, or corporate culture, comprises the attitudes , experiences, beliefs and values of an organization . It has been defined as the specific collection of values and norms that are shared by people and groups in an organization and that control the way they interact with each other and with stakeholders outside the organization……” - Wikipedia
  3. 4. The culture and politics of many organisations constrain the degree of change and transformation in which they can successfully engage, even though such change may be highly desirable for meeting the challenges and demands of the wider environment - Morgan, G. (1989) Creative Organization Theory. A Resource Book, London, Sage.
  4. 5. <ul><li>Goals, </li></ul><ul><li>Strategy, Structure </li></ul><ul><li>Systems & Procedures </li></ul><ul><li>Products, Service, Money, </li></ul><ul><li>Values, Attitudes & Beliefs </li></ul><ul><li>Leadership Style Behaviour Norms </li></ul><ul><li>Politics & Conflict; </li></ul><ul><li>Shared Assumptions </li></ul>Organisational Iceberg Formal Organisation Informal Organisation Artefact Inner Core
  5. 6. Characteristics of Corporate Culture
  6. 7. <ul><li>Member identity : The degree to which employees identify with the organisation as a whole rather than with their type of job or field of professional expertise. </li></ul>
  7. 8. 2 Group emphasis : The degree to which work activities are organised around groups rather than individuals.
  8. 9. 3 People focus : The degree to which management decisions take into consideration the effect of outcomes on people within the organisation.
  9. 10. 4. Unit integration : The degree to which units within the organisation are encouraged to operate in a co-ordinated or interdependent manner.
  10. 11. 5. Control: The degree to which rules, regulations and direct supervision are used to oversee and control employee behaviour.
  11. 12. 6. Risk tolerance: The degree to which employees are encouraged to be aggressive, innovative and risk seeking.
  12. 13. 7. Conflict tolerance: The degree to which employees are encouraged to air conflicts and criticisms openly.
  13. 14. 8. Reward criteria: The degree to which rewards such as salary increases and promotions are allocated according to employee performance rather than seniority, favouritism, or other non performance factors.
  14. 15. 9. Means or Ends Orientation: The degree to which management focuses on results/outcomes or on the techniques and processes used to achieve it.
  15. 16. 10. Open-system focus: The degree to which the organisation monitors and responds to changes in the external and internal environment.
  16. 17. Types of Culture (Roger Harrison -1972) Power Culture - concentrates power among a few. Control radiates from center like a web. Have few rules and little bureaucracy . Swift decisions can ensue.
  17. 18. Role Culture - people have clearly delegated authorities within highly defined structure . Typically, these organizations form hierarchical bureaucracies. Rely on position and little scope for expert power.
  18. 19. Task Culture - teams formed to solve particular problems. Power derives from expertise. These cultures often feature the multiple reporting lines of a Matrix Organisation.
  19. 20. Person Culture - individuals believe themselves superior to the organization. Survival can become difficult, since the concept suggests group of like-minded individuals pursue the organizational goals, e.g professional partnerships with clientele.
  20. 21. Elements that Influence Culture
  21. 22. The Paradigm : What organization is about; what it does; its mission; its values, leadership, behaviour, priorities, etc
  22. 23. Control Systems : Processes in place to monitor what is going on. Role cultures have vast rulebooks. More reliance on individualism in a power culture.
  23. 24. Organizational Structures : Reporting lines, hierarchies, and the way that work flows through the business.
  24. 25. Power Structures : Who makes the decisions, how widely spread is power, and on what is power based?
  25. 26. Symbols : organizational logos and designs, symbols of power such as parking spaces and executive washrooms.
  26. 27. Rituals and Routines : Management meetings, reports, briefing, celebrations.
  27. 28. Stories and Myths : build up about people and events. Convey message of what is valued within organization.
  28. 29. What is Apathy? “ State of indifference , or suppression of emotions such as concern , excitement , motivation and passion . An apathetic individual has an absence of interest or concern to emotional, social, or physical life . They may also exhibit an insensibility or sluggishness”
  29. 30. In positive psychology, described as response between Challenge and matched Skills. The opposite of apathy is FLOW Source - Mihaly Csikszentmihalyi
  30. 31. FLOW - mental state of operation in which the person is fully immersed in what he or she is doing. Same mindfulness as ecstatic lovemaking , merging of two into fluidly harmonious one Represents ultimate in harnessing emotions in performing and learning. Emotions not just contained and channeled, but positive, energized, and aligned with the task at hand
  31. 32. How does it feel to be in “FLOW”
  32. 33. <ul><li>Completely involved in what we are doing – focused & concentrated </li></ul>
  33. 34. 2. Sense of ecstasy - of being outside everyday reality
  34. 35. 3. Great inner clarity - knowing what needs to be done and how well we are doing
  35. 36. 4. Knowing the activity is doable - that our skills are adequate to the task
  36. 37. 5. Sense of serenity - no worries about self & feeling of growing beyond the boundaries of ego
  37. 38. 6. Timeliness - thoroughly focused on present, hours past by in minutes
  38. 39. 7. Intrinsic motivation - whatever produces &quot;flow&quot; becomes its own reward 
  39. 40. Win-Lose Do it my way Blaming people Treat the symptoms Suppress Feelings Conflict Barriers Undiscussables Aggression/Submission Save face Fancy footwork Assumption/inference Model I Behaviour CLOSED C U S T O M E R S Source – NIES TQM, Department of ITC, Australia, 1990
  40. 41. Win-Win Trust Teamwork Feelings OK Collaboration Improve the process Discussables Assertiveness Mistakes OK Directly observable data Learning Model II Behaviour C U S T O M E R S OPEN
  41. 42. Hofstede’s Dimensions of National Culture 1. Power Distance - degree of acceptability of inequity of wealth & privilege 2. Individualism/Collectivism -relative weakness/ strength of relationships between individuals and groups 3. Masculinity/Femininity - extent of clarity and distinctiveness of gender roles 4. Uncertainty Avoidance - how upset people get about ambiguity and future doubt
  42. 43. Geert Hofstede’s Culture Map of Uncertainty Avoidance and Power Distance 112 104 96 88 80 72 64 56 48 40 32 24 16 8 0 10 20 30 40 50 60 70 80 90 100 110 Small power distance Strong uncertainty avoidance (well-oiled machine) Large power distance Strong uncertainty avoidance (pyramid of avoidance) Aut Isr Fin Swi Ger Nzl Nor Net Aul Can Usa Saf Den Swe Ire Gbr Jam Sin Hok Ind Ido Phi Mal Eaf Waf Pak Ira Tai Tha Eoa Ara Cos Ita Kor Arg Spa Jpn Gre Por Uru Bel Sal Yug Pan Mex Gua Ven Bra Col Fra Tur Chl Per Small power distance Weak uncertainty avoidance (village market) Largel power distance Weak uncertainty avoidance (Family) Power Distance Index Uncertaity Avoidance Index Source – The Fish Roys From The Head, Bob Garret, 2003
  43. 44. “ the way things are done around here” Cultural Change- The TQM Approach Attitude Beliefs & Values Decisions Actions Experiences People Joining People Leaving Strategic Inputs Source – NIES TQM, Department of ITC, Australia, 1990 + + + + +
  44. 45. Cultural Barriers to Change
  45. 46. Hubris at the top driven by ego centric superiority
  46. 47. Protection of “Sacred Cows” - if it ain’t broken, why fix it”
  47. 48. Ignore/discourage ideas from subordinates
  48. 49. Approvals up through are required
  49. 50. Insecurity/lack of praise & recognition
  50. 51. Mistakes = problems = failure = punishment
  51. 52. Control and fear driven surveillance
  52. 53. Information hoarding and distrust
  53. 54. Culture Change – Variables ORGANISATION’S CAPACITY TO CHANGE Attitudes to criticism Attitudes to conflict Attitudes to experimentation in processes and products Attitudes to sharing information Degree of willingness to give people autonomy and support them in their actions Degree to which the organisation’s structure facilitates change Degree of willingness to discuss sensitive issues openly Degree of management’s openness to new ideas - especially from below
  54. 55. <ul><li>Show-Time ! </li></ul>1. Working in teams, identify the cultural barriers (behaviours/practices) that inhibits the “flow” in your department. 2. Brainstorm ways to address them. Scan widely, Analyse deeply and Solve creatively. Remain pluralistic and no Ad hominem attacks .

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