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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 artifa
2、ct. Such 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.Folkway
3、s:Routine conventions 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 SystemsEducat
4、ionEconomic PhilosophyPoliticalPhilosophyReligionLanguageSocialStructure.HofstedeStudy (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 relatio
5、nship between culture and nation-state.Research may be culturally bound.Respondents worked within a single company.Work is beginning to look dated (1967-1973).Work Related Values for Selected Countries.Culture and EthicsDo the “right thing.Thomas Donaldsons Three Principles:Respect for core human va
6、lues (human rights), which determine the absolute moral threshold for all business activities.Respect for local tradition.The belief that context matters when deciding what is right and what is wrong.The Organization and CultureOrganizational CultureValues, beliefs, behaviors, customs, and attitudes
7、 that help the members of the organization understand what it stands for, how it does things, and what it considers important.MulticulturalismThe broad issues associated with differences in values, beliefs, behaviors, customs, and attitudes held by people in different cultures.DiversityWhen members
8、of a group differ from one another along dimensions such as age, gender, or ethnicity.Trends in Diversity and MulticulturalismReasons for Increasing Diversity and MulticulturalismIncreasing diversity and multiculturalism in organizationsIncreased aware-ness that diversityimproves the qualityof the w
9、orkforceThe globalizationmovementLegislation andlegal actionChangingdemographics inthe labor force.How Diversity and MulticulturalismPromote Competitive AdvantageResourceacquisitionargumentSystemsflexibilityargumentCreativityargumentCompetitiveAdvantageCostargumentProblem-solvingargumentMarketingarg
10、ument.Diversity and Competitive AdvantageDiversity promotes competitive advantage by:increasing organizational systems flexibility.bringing added creativity.increasing the market scope of products.broadening the resources acquisition basis.adding a diversity of viewpoints to problem-solving decision
11、-making processes.decreasing the cost of doing business.Multiculturalism and ConflictSources of ConflictPersonnel actions being attributed to diversity status.Misunderstood, misinterpreted, or inappropriate actions between people or groups.Cultural differences in work hours, personal styles, interpe
12、rsonal relations, and conflict.Fear, distrust, or individual prejudices.Managing Diversity and Multiculturalism in OrganizationsIndividual StrategiesUnderstanding the nature and meaning of diversity and multiculturalism.Developing empathy in understanding the perspective of others.Developing toleran
13、ce of fundamental cultural differences.Having a willingness to communicate and discuss diversity and multiculturalism issues.Managing Diversity and Multiculturalism in Organizations (contd) Organizational ApproachesOrganizational PoliciesActively seek a diverse and varied workforce.Positive response
14、s to diversity problems.Mission statement of commitment to diversity.Organizational PracticesSupport networks, structured benefits packages, flexible working hours, and diversity in work groups and teams.Diversity and Multicultural TrainingTraining that enables organization members to function in a
15、diverse and multicultural environment.Organizational CultureIncorporating into a culture the valuation of diversity.“An organizations capacity to execute its strategy depends on its “hard infrastructure-its organization structure and systems-and on its “soft infrastructure-its culture and norms.Amar
16、 Bhide“Quote.What Makes Up a Companys Culture?Beliefs about how business ought to be conductedValues and principles of managementWork climate and atmospherePatterns of “how we do things around hereOft-told stories illustrating companys valuesTaboos and political dontsTraditionsEthical standards.Wher
17、e Does Corporate Culture Come From?Founder or early leaderInfluential individual or work groupPolicies, vision, or strategiesTraditions, supervisory practices, employee attitudesOrganizational politicsRelationships with stakeholdersInternal sociological forces.How Is a Companys Culture Perpetuated?S
18、electing new employees based on how well their personalities “fit inSystematic indoctrination of new employeesSenior employees reinforcement of core valuesStory-telling of company legendsCeremonies honoring employees who display cultural idealsVisibly rewarding those who follow cultural norms.Forces
19、 and Factors Causing Culture to EvolveInternal crisesRevolutionary technologiesNew challengesArrival of new leadersTurnover of key employeesDiversification into new businessesExpansion into different geographic areasRapid growth adding new employeesMerger with or acquisition of another companyGlobal
20、ization .Culture and Strategy Execution: Ally or Obstacle?Culture can contribute to - or hinder - successful strategy executionRequirements for successful strategy execution may - or may not - be compatible with cultureA close match between culture and strategy promotes effective strategy execution.
21、Why Culture Matters: Benefits of a Good Culture-Strategy FitStrategy-supportive cultures Shape mood and temperament of the work force, positively affecting organizational energy, work habits, and operating practices Provide standards, values, informal rules and peer pressures that nurture and motiva
22、te people to do their jobs in ways that promote good strategy executionStrengthen employee identification with the company, its performance targets, and strategy.Why Culture Matters: Benefits of aGood Culture-Strategy Fit (continued)Strategy-supportive culturesStimulate people to take on the challen
23、ge 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 attitudesAccepts changeBreeds needed capabilitiesCanDo!.Types of Corporate CulturesStrong vs. Weak Cultures
24、Unhealthy CulturesAdaptive Cultures.Characteristics ofStrong Culture CompaniesConduct business according to a clear, widely-understood philosophy Management spends considerable time communicating and reinforcing valuesValues are widely shared and deeply rootedTypically have a values statementCareful
25、 screening/selection of new employees to be sure they will “fit inVisible rewards for those following norms; penalties for those who dont.How Does a Culture Come to Be Strong? Leader who establishes values consistent withCustomer needsCompetitive conditionsStrategic requirementsA deep, abiding commi
26、tment to espoused values and business philosophyPracticing what is preached!Genuine concern for well-being ofCustomersEmployeesShareholdersValuesCustomersEmployeesShareholders.Characteristics ofWeak Culture CompaniesMany subculturesFew values and norms widely sharedFew strong traditionsLittle cohesi
27、on among the departmentsWeak employee allegiance to companys vision and strategyNo strong sense of company identity.Characteristics of Unhealthy or LowPerformance CulturesPoliticized internal environmentIssues resolved on basis of turfHostility to changeExperimentation and efforts to alter status qu
28、o 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 syndromeAvoidrisks!.Hallmarks of Adaptive CulturesIntroduction of new strategies to achieve superior performanceSt
29、rategic agility and fast response to new conditionsRisk-taking, experimentation, and innovation to satisfy stakeholdersProactive approaches to implement workable solutionsEntrepreneurship encouraged and rewardedTop managers exhibit genuine concern for customers, employees, shareholders, suppliers.Ty
30、pes of Culture-Changing ActionsRevising policies and procedures to help drive cultural changeAltering incentive compensation to reward desired cultural behaviorVisibly praising and recognizing people who display new cultural traitsHiring new managers and employees who have desired cultural traits an
31、d 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 frugalityEliminate executive perksRequire executives to spend time talking with customersAl
32、ter 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 practicesSet world-class performance targetsBring in new blood, replacing traditional managers
33、Shake up the organizational structureChange reward structureIncrease commitment to employee trainingReallocate budget, downsizing and upsizing.Establishing Ethical Standards and ValuesA culture based on ethical principles is vital to long-term strategic successEthics programs make ethical conduct a
34、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 indoctrination and traditionWritten documents Our ethicsprogramconsists of . . .Value Stateme
35、nts and Codes of EthicsTopics in Value StatementsCustomer importanceCommitment to qualityCommitment to innovationRespect for individual employeeImportance of honestyDuty to stockholdersDuty to suppliersCorporate citizenshipProtecting the environmentTopics in Codes of EthicsHonesty & observing the la
36、wConflicts of interestFairness in marketing practicesUsing inside informationSupplier relationsCorrupt practicesAcquiring information Political activitiesUse of company assetsProprietary informationPricing, contracting, & billing.Instilling Values and Ethics in the CultureIncorporate values statemen
37、t 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 by CEOWord-of-mouth indoctrination.Building a Spirit of HighPerformance into the CultureEmphasize achievement and excellencePromote a results-oriented culturePursue practices to inspire people to excelDesired outcomeProduce extraordinary
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