Group 4 Corporate Culture Abstract l In this

Group 4: Corporate Culture

Abstract l In this presentation, we will discuss corporate culture We focus on talking about Competing Values Framework The Competing Values Framework (CVF) is one of the most influential and extensively used models in the area of organizational culture research Briefly describe the component of CVF l Discuss the use of Organization Culture Assessment Instrument l l l

Introduction: Corporate Culture l l l l Many different definitions of the concept The central notion is that culture relates to core organizational values All organizations have cultures or sets of values Influence the way people behave (1) the treatment of customers (2) the treatment of the subordinate (3) standards of organizational performance (4) accountability.

Model l l Competing Value Framework (CVF) Focus on the competing tensions and conflict occurred in the system Two dimensions in the framework: - Conflict between stability and change - Conflict between internal and external environment

Competing Value Framework

Competing Value Framework l l l human relations model open system model rational goal model internal process model an effective organization may need to perform well on all four sets of criteria

Four organizational culture l l l Group Culture Developmental Culture (Adhocracy) Rational Culture Hierarchical Culture Each represents one of the four major models organizational theory

Group Culture l l l l Concern with human relations model Support flexibility Maintain focus internally Tends to be thinking in the interest of groups as a whole Core value: Belonging, trust, participation Motivation: membership, cohesiveness Effectiveness criteria: member commitment, participation

Developmental Culture (Adhocracy) l l l l Concern with open system model Support flexibility Focus on external environment Willing to take risk More able to develop a vision of the organization Core Value: company growth, size and the competitiveness outside Motivation factor: Creativity, Variety Effectiveness criteria: market development, resources acquisition

Rational Culture l l l Concerned about the rational goal model Focus on goal achievement, organization performance Tends to be directive, functional working behavior Core value: pursuit on a well-defined objective Motivation factor: competition and a successful achievement Effectiveness criteria: planning, productivity, efficiency

Hierarchical Culture l l l Concern about internal process model Support stability Tends to be conservative and cautious Core value: executions of regulations Motivation factor: security, order, rules Effectiveness criteria: control, stability

Four organizational culture

Organization Culture Assessment Instrument (OCAI) assess six key dimensions of organizational culture l providing a picture of how your organization operates and the values that characterize it l There are no right and wrong answer, but usually different types of organization will produce similar answers l

OCAI method l l l Dominant Characteristics Organizational Leadership Management of Employees Organizational Glue Strategic Emphases Criteria of Success

OCAI method l Dominant organizational characteristics Group Culture: Personal, like a family l Developmental Culture (Adhocracy): Entrepreneurial, risk taking l Rational Culture: Competitive, achievement oriented l l Hierarchical Culture: Controlled and structured

OCAI method l Leadership style Group Culture: facilitating l Developmental Culture (Adhocracy): innovative l Rational Culture: aggressive, result-oriented l Hierarchical Culture: coordinating, efficiency oriented l

OCAI method l Management of employees l Group Culture: Teamwork, consensus, participation l Developmental Culture (Adhocracy): freedom, uniqueness l Rational Culture: Competitiveness and achievement l Hierarchical Culture: Security, predictability

OCAI method l Organizational glue l Group Culture: Loyalty and mutual trust l Developmental Culture (Adhocracy): Commitment to innovation, development l Rational Culture: achievement and goal accomplishment l Hierarchical Culture: Formal rules and policies

OCAI method l Strategic l emphasis Group Culture: Human development, openness Developmental Culture (Adhocracy): Acquisition of resources, creating new challenges l Rational Culture: Competitive actions and winning l l Hierarchical Culture: stability

OCAI method l Criteria for success l Group Culture: teamwork, concern for people l Developmental Culture (Adhocracy): Unique and new products and services l Rational Culture: Winning in the marketplace l Hierarchical Culture: efficient, low cost

Research l l Researcher: Eric A Goodman, Raymond F Zammuto, Blair D Gifford Year: 2001 Named: THE COMPETING VALUES FRAMEWORK: UNDERSTANDING THE IMPACT OF ORGANIZATIONAL CULTURE ON THE QUALITY OF WORK LIFE Source: Organization development Journal

Research finding l l l The study uses the competing values framework as a tool to investigate the relationships between organizational culture and several important job related variables group cultural values are positively related to organizational commitment, job involvement, empowerment and job satisfaction negatively related to intent to turnover hierarchical cultural values are negatively related to organizational commitment, job involvement, empowerment and job satisfaction positively related to intent to turnover

Case study - second-hand car dealer l Peter and John, had different opinion of approaches to management. Peter emphasized on the human relations with the staff l His management philosophy was to fully delegate and support the staff l l John emphasized on planning the company goals and achieving the goals through a well-organized company structure. l Employment of employees needed to meet the technical requirements such as qualification, experience, skills and historical background. They would be assigned to the most suitable post as considered by the management. l Peter kept on managing Car City while Peter set up his new car dealing company – Super Car Co. , Ltd. During the financial storm. Car City had reduced its number of branches from 100 to 70 but still got a profit of $ 1, 000. Super Car had to close 20 branched from 35 and had gained a loss of $1, 000.

From the given information, explain what organizational culture do you expect from the two companies. Dimension Super car CAR CITY Stability High Low Low High High Low Innovation and Risk Taking Low High Attention to Detail Outcome Orientation People Orientation Team Orientation Aggressiveness

Organization Culture Issues l Creating an Ethical Culture High in risk tolerance l Low to moderate aggressiveness l Focus on means as well as outcomes l l Creating an Innovative Culture Challenge and involvement l Freedom l Trust and openness l Idea time l Playfulness/humor l Conflict resolution l Debates l Risk-taking l

Super car city Car city Oriented People outcome Outcome Relate to group or people Relationship problem Relate to outcome Trust input and processing Task risk

Exhibit 15– 6 Group versus Individual Decision Making Criteria of Effectiveness Accuracy Groups Speed Creativity Degree of acceptance Efficiency Individuals

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