4 Corporate Culture

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Lecture 9

The tip for today:

“Great things in business are never done by one person. They are
done by a team of people”
Plan 9
 Introduction
 Revision of :
– Motivation theories
– Vroom’s theory
– Quiz
 Discussion. Organizational culture
 Mid term evaluation (students’)
 Check HW
 HW. Ch 15 on org. culture (till p.457)
Motivation theories. Vroom’s theory
(Lion’s case study)
 First- Student’s presentations on various theories
 Lion case:
– Students’ suggestions
– Policy changes
 Quiz
Mid term evaluation
 Word file
Organizational culture
 …is a system of shared assumptions, values, and
beliefs that help individuals within an
organization understand which behaviors are
and are not appropriate within an organization.
 …basic patter of shared assumption, values,
beliefs considering the correct way of thinking
about and acting on problems and opportunities
facing the Co…
 McShane
Org Culture
 …relatively new term
 1980s…. (In Search of Excellence -Peters and Waterman )
 …The subject of numerous research….
 invisible and visible to individuals
 culture dictates what is right and what is acceptable
behavior as well as what is wrong and unacceptable
 as important as corporate strategy for business success.
(2007, HR Focus)
 shared values within the organization
Corporate Culture
 Declared values (mission, vision), beliefs,
assumption
 Dress code
 Rituals and symbols
 Heroes? (stories)
 Rules and policies/Punishment
 Physical architecture
 Diversity and equality
 Language and communication
Elements of OC
OC
Mission Statement and OC
 Enron Co: “As a partner in the communities in
which we operate, Enron believes it has a
responsibility to conduct itself according to certain
basic principles.” “We do not tolerate abusive or
disrespectful treatment. Ruthlessness, callousness
and arrogance don’t belong here.”
Ironical: Many Enron executives were indicted on a variety of charges and were
later sentenced to prison.
The scandal resulted in a wave of new regulations and legislation designed to
increase the accuracy of financial reporting for publicly traded companies .
Mission Statement and OC
 The Mayo Clinic’s : “The needs of the patient come
first.” .
 Founders: “The best interest of the patient is the only interest
to be considered.”
 Wal-Mart Stores Inc. : “Saving people money so they
can live better.
 Wegmans-?
Rituals

 …repetitive activities with symbolic meaning.


 …create sense of belonging
 … serve to teach employees corporate values
 …create identification with the organization.
e.g.Mary Kay Inc. Award ceremony
e.g. Brown and Brown, Inc. Employees
dressed as medieval executioner,
funeral dirge plays… (poor performers are not tolerated)
Rituals

 …refer to repetitive activities within an organization


that have symbolic meaning. Usually rituals have their
roots in the history of a company’s culture. They create
a sense of belonging among employees. They also serve
to teach employees corporate values and create
identification with the organization.
e.g.Mary Kay Inc. Award ceremony
Rules and Policies
 Reasons: to determine acceptable and unacceptable
behavior, show values:
– fair treatment of others, ethics as a bottom line,
workplace surveillance, open-door policies, sexual
harassment, and corporate social responsibility, etc.
– E.g.“all pricing decisions of merchandise will be made at
corporate headquarters” (a centralized hierarchical culture)
– E.g. benefits to both part-time and full-time employees, flexible
work hours, sabbaticals, and telecommuting opportunities...
Physical Layout
 Building architecture:
– E.g Nike Inc. (74 acres: artificial lake, soccer fields, warkung
trails, fitness centers) values: energy, physical fitness ,
quality. Only Nike shoes and apparel are allowed
 Office spaces:
– “Open space” (team orientation), isolated offices,
different floors (hierarchy)
( …,
E.g.Intel Corporation - standard cubicles, (equality).
e.g. Oakley Inc,. “war environment”, lobby looks like bomb
shelter, ejection seats from B-52 bomber furnish the waiting room
Stories
 … colorful and effective way to communicate OC
– - critical event
– - heroic effort
 …engages emotions, stimulates motivation towards
a goal
 … shows history, values, priorities
E.g. 3M Post-it notes, Arthur Fry, Wegmans “adopting a camp that
gives so much…Our Buffalo employees stepped in to help Cradle Beach
Camp, which welcomes children with disabilities from across the region”.
HW
 All ppt
 OC- ch 15, till p. 457
 Examples of OC, “good” and “bad” apart from
the textbook
 Role of ethics and National culture in groups/
teams
 Final Projects groups
Possible projects

 Research on Hertzberg’ Motivation theory in XX company (survey)


(scale 1-5, e.g. strongly agree, agree, not sure/ cannot say, disagree,
strongly disagree) (ch 1 online)
 Research: Organizational change (structure) in XX company.
Objectives, implementation, outcomes. (survey)
 Research: Level of Employees’ commitment level in XX company
(survey)
 Interview (Taped and scripted) with a Mng of XX company on org
structure and culture.
 Development of Motivation system for XX company
 Role of ethics and National culture in groups

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