Understanding Managing Corporate Culture BA 152 Characteristics of

Understanding & “Managing” Corporate Culture BA 152

Characteristics of Organizations Environment Goals Strategies Structures Technologies Systems People ! T I F Cultures

What is Corporate Culture? • – – –

Corporate Culture: Why should we be concerned? • Performance implications? • Organizational guidance systems? – Nature of cultures at Enron, Arthur Andersen, Tyco, Health. South? • Impact of differences on mergers and/or acquisitions?

Corporate Culture: What should we examine? 1. 2. 3. 4.

Corporate Culture: Where does it come from? • The organization’s founder • A strong leader • Reactions to a crisis • Strategic decisions

Corporate Culture What are the components? • Culture’s Content 1. 2. • Culture’s Strength 1. 2. 3.

Culture’s Content: UNC • • • Achievement Responsibility Family-like Friendliness Team work Support • • Family-like Team work Support Friendliness • • Friendliness Achievement

Culture’s Strength Characteristics # of shared assumptions # of employees sharing these assumptions # of employees sharing ordering of assumptions Weak Culture Moderate Culture Strong Culture

Corporate Culture Why is it important? • Impact on behavior and control? – – • Impact on performance? –

Culture and Performance Environment STRATEGY U T E R L U C STRUCTURE PERFORMANCE

Environment, Strategy, and Culture Needs of the Environment Flexibility Stability Adaptability/ Entrepreneurial Culture Mission Culture Clan Culture Bureaucratic Culture Strategic Focus External Internal

“Maintaining/Changing” a Corporate Culture • • • Hiring/socializing new employees Removing old employees Communicating cultural values Modeling appropriate behavior Rewarding appropriate behavior

Leadership and Culture “. . . the only thing of real importance that leaders do is to create and manage culture, and the unique talent of leaders is their ability to work with culture. ” (italics in the original) (From Edgar Schein, Organizational Culture and Leadership, 1997)

“Managing” a Corporate Culture • • Culture is not a simple concept. Culture’s influence is pervasive. Manipulating culture is not any easy task. There is no one best (permanent) culture for an organization.

Next Time Implementing Change at National Industrial Products