international corporate culture

8/7/2019 International Corporate Culture

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By:- Jagdeep Singh

Rool No:- 5718

Section:- C

International Corporate Culture


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Corporate Culturey The beliefs and values shared by people who work

in an organisationy How people behave with each other

y How people behave with customers/clients

y How people view their relationship with stakeholders

y Peoples responses to energy use, communityinvolvement, absence, work ethic, etc.

y How the organisation behaves to its employees

training, professional development, etc.


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y

Vision where the organisationwants to go in the future

yValues are clear in everything

you do, how you operate.

yMission Statement summary

of the beliefs of the organisation

and where it is now


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Corporate Culture

y May be reflected in:

yAttitude and behaviour of the leadership

yAttitude to the role of individuals in the

workplace open plan offices, team basedworking, etc.

yLogo of the organisation

yThe image it presents to the outside world

y Its attitude to change


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Corporate Culture


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How to Align Corporate Culture

With Business Strategy

To align corporate culture with business

strategy we must under stand how basicculture comes into formation by

keeping in view the Value and Vision of

the organization.


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Cultural Web


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SYMBOLS


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Is company-specific jargon or languageused? How well known and usable by

all is this?

Are there any status symbols used?What image is associated with your

organization, looking at this from the

separate viewpoints of clients andstaff?


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Organizational Structure

y This includes both the structure defined by the

organization chart, and the unwritten lines of power

and influence that indicate whose contributions are

most valued.

y Is the structure flat or hierarchical? Formal or

informal? Organic or mechanistic?

y Where are the formal lines of authority?

y

Are there informal lines?


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Functional Based Structure


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Matrix Type

Organizational Structure


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Logistics Team Structure(Bosch Group)


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Rituals And Routines

It is about making Mission and Values of the

organization a part of Day to Day life of all

the members of the organization.

y Striving for quality

y Importance of advertisement and promotion

yAttracting customer loyalty

y Value for Money


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y The ways that the organization is controlled. Theseinclude financial systems, quality systems, andrewards (including the way they are measured anddistributed within the organization.)

y What process or procedure has the strongest controls?Weakest controls?

y Is the company generally loosely or tightly controlled?

y Do employees get rewarded for good work or

penalized for poor work?y What reports are issued to keep control of operations,

finance, etc...?

Control Systems


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Power Structures

y - The pockets of real power in the company. This may

involve one or two key senior executives, a whole

group of executives, or even a department. The key is

that these people have the greatest amount of influence

on decisions, operations, and strategic direction.

y Who has the real power in the organization?

y What do these people believe and champion within the

organization?y Who makes or influences decisions?

y How is this power used or abused?


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StrengtheningStrengthening

OrganizationalOrganizational

CultureCulture

FoundersFoundersand leadersand leaders

CulturallyCulturallyconsistentconsistentrewardsrewards

StableStableworkforceworkforce

SelectionSelectionandandsocializationsocialization

Managing theManaging theculturalculturalnetworknetwork

Strengthening Organizational Culture


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Importance of Strong Corporate Culture

yStrongyOrganizational

yCulture

SocialSocial

ControlControl

SocialSocial

GlueGlue

AidsAids

Sense MakingSense Making


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Organizational Subcultures

y Located throughout the organization

y Can support or oppose (countercultures)

firms dominant culture

y Two functions of countercultures:

yprovide surveillance and evaluation

y source of emerging values


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FactorsAffecting Organizational

Structure


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The Organizational Environment

Strategy

yDifferent strategies require the use of different

structures.

yA differentiation strategy needs a flexiblestructure, low cost may need a more formal

structure.

y Increased vertical integration or diversification

also requires a more flexible structure.


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Technology

yThe combination of skills, knowledge, tools,

equipment, computers and machines used in the

organization.yMore complex technology makes it harder for

managers to

regulate the

organization.


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Technology

yTechnology can be measured by:

yTask variety: the number of new problems amanager encounters.

yTask analyzability: the availability ofprogrammed solutions to a manager to solveproblems.


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Human Resources

yHighly skilled workers whose jobs require

working in teams usually need a more

flexible structure.

yHigher skilled workers (e.g., CPAs and

doctors) often have internalized

professional norms and values.


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yHuman Resources

yManagers must take into account all four

factors (environment, strategy, technology

and human resources) when designing thestructure of the organization.


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The way an organizations structure works

depends on the choices managers make

about:

1. How to group tasks into individual jobs

2. How to group jobs into functions and

divisions

3. How to allocate authority and coordinatefunctions and divisions


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Problems with Strong Cultures

y Culture content might be incompatible with the

organizations environment.

y Strong cultures focus attention on one mental

model.

y Strong cultures suppress dissenting values from

subcultures.


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Merging Organizational Cultures

yy AssimilationAssimilationAcquired company embraces acquiring

firms cultural values

DeculturationDeculturationAcquiring firm imposes its culture on

unwilling acquired firm

IntegrationIntegrationCultures combined into a new composite

culture

SeparationSeparationMerging companies remain separate with

their own culture


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Changing/Strengthening Organizational

Culture


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Changing/Strengthening

Organizational Culture

1. Actions of Founders/Leaders

y Org culture sometimes reflects the founders

personality

y Transformational Leaders can reshape culture --

organizational change practices

2. AligningArtifacts

y Artifacts keep culture in place

y e.g., building structure, communicating stories,transferring culture carriers


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Changing/Strengthening Organizational

Culture

3. Introducing Culturally Consistent Rewards

yRewards are powerful artifacts reinforce

culturally-consistent behavior

4. Attracting, Selecting, Socializing Employees

yAttraction-selection-attrition theory

y Socialization practices


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Lindblads Shipshape Socialization

y Lindblad Expeditions

cant afford to have crew

members jump ship soon

after starting the job, so

the adventure cruisecompany gives applicants

a DVD showing a realistic

picture of what its like to

work on board. This

realistic job preview is one

part of the companys

socialization process.


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Organizational Socialization Defined

y The process by which

individuals learn the

values, expected

behaviors, and social

knowledge necessary to

assume their roles in the

organization.


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Socialization: Learning &Adjustment

Learning Process

yNewcomers make sense of the organizations

physical, social, and strategic/cultural dynamics

Adjustment Process

yNewcomers need to adapt to their new work

environment

yNew work rolesyNew team norms

yNew corporate cultural values


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Stages of SocializationRoleRole

ManagementManagement

Insider

Changing roles

and behavior

Resolving

conflicts

EncounterEncounter

StageStage

Newcomer

Testing

expectations

PrePre--EmploymentEmployment

StageStage

Outsider

Gathering

information

Forming

psychological

contract


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Improving Organizational Socialization

y Realistic job preview (RJP)

y A balance of positive and negative information about the

job and work context

y Socialization agentsy Supervisors technical information, performance

feedback, job duties

y Coworkers ideal when accessible, role models, tolerant,

and supportive

international corporate culture

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