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Corporate Culture General 1.3.Blank

  1. 1. CORPORATE CULTURE<br />Aco Momcilovic<br />HR Specialist<br />L’Oreal Adria d.o.o.<br />
  2. 2. Content<br />Introduction<br />Different Models<br />Why it is important<br />Cultural Fit<br />How it is created (Examples, Interpretation)<br />Cultural Interview<br />Does It Make Difference? (Effectiveness)<br />Examples<br />Finish<br />
  3. 3. Artifacts (visible organizational structure and processes)<br />Values (strategy, goals, philosophy)<br />Assumptions (unconscious beliefs, perceptions and feelings<br />
  4. 4. Group Interaction<br />Positive Results<br />Norms of Behavior<br />Shared Values<br />CULTURE<br />The emergence of culture<br />
  5. 5. Strategic fit<br />“Vision”<br />(to be)<br />communication<br />communication<br />“Strategy” (What do we need to focus on)<br />“Culture” (How to behave along the way)<br />communication<br />Current situation<br />“As it is”<br />
  6. 6. DIFFERENT MODELS<br />
  7. 7. Flexibility<br />Open Systems Model:<br />Human Relations Model:<br />Goals: HRM Development, Morale<br />Goals: Growth, Resource Acquisition<br />Cultural Values: (Consensual)<br />Cultural Values: (Developmental)<br />- Creativity<br />- Inventiveness<br />- Growth<br />- Competiveness<br />- Teamwork<br />- Participation<br />- Supportiveness<br />Matching Strategy:<br /> - Defender<br /> - Prospector<br /> - Analyzer<br />Matching Strategy:<br /> -Prospector<br />Internal<br />External<br />Goals: Stability and Control<br />Goals: Efficiency, Productivity<br />Cultural Values: (Hierarchical)<br />Cultural Values: (Rational)<br />- Task focus<br />- Goal clarity<br />- Efficiency<br />- Performance<br />- Centralization<br />- Routinization, formalization<br />- Stability, continuity, order<br />- Predictable performance outcomes<br />Matching Strategy:<br /> - Defender<br />Matching Strategy:<br /> - Analyzer<br />Rational Goal Model:<br />Internal Process Model:<br />Control<br />
  8. 8. Role, Control, Goal andSoul Models <br />
  9. 9. CONTROL<br />
  10. 10. ROLE<br />
  11. 11. GOAL<br />
  12. 12. SOUL<br />
  13. 13. In Riding theWaves of Culture, Fons Trompenaars<br />In the same way, we believe that effective organisations focus attention not on one culture, but on an appropriate balance of the four cultures so that the best attributes of each enable the organisation to thrive<br />systemic model - described three levels ofculture; 1) the explicit layer made up of artifacts and products and other observable signs, 2) themiddle layer of norms and values and 3) the implicit layer, which is comprised of basic assumptionsand beliefs.<br />
  14. 14. Why is corporate culture so important?<br />To survive and prosper in a ever-changing environment, adaptability is key<br /> industries need more than gradual adjustment to changing circumstances; we need to shift paradigms<br />The central challenge: to create and lead an adaptive enterprise<br />
  15. 15. Cultural Fit Research<br />A&DC – effects of cultural fit<br />when Cultural Fit is absent employees report lack of engagement with their employer and their colleagues<br />In small and mid-size businesses, it’s common for the company culture to reflect the person at the top. <br />
  16. 16. One More Time<br />With some examples<br />
  17. 17. Corporate Culture<br /><ul><li> Organization Culture Defined:
  18. 18. Set of key behaviors, beliefs and shared understandings that are </li></ul>shared by members of the organization.<br /><ul><li>Defines basic organizational values and communicates to new members </li></ul>the correct way to think and act.<br /><ul><li>Each firm has a distinct culture.</li></li></ul><li>Corporate Culture<br /><ul><li> Interpreting Culture:
  19. 19. Rites and ceremonies </li></ul>- Elaborate planned events conducted for the benefit of an <br /> audience.<br />- Used to reinforce specific values or create a bond among people.<br />- Four types of rites and ceremonies:<br /><ul><li> Rites of passage</li></li></ul><li>Corporate Culture<br /><ul><li> Rites of enhancement
  20. 20. Annual awards night.
  21. 21. Enhances social identities and increase status of employees.</li></li></ul><li>Corporate Culture<br /><ul><li> Rites of renewal
  22. 22. Refurbish social structures and improve organizational </li></ul> functioning.<br /><ul><li> Rite of integration</li></li></ul><li>Corporate Culture<br /><ul><li> Stories
  23. 23. Narratives based on true events that are shared among </li></ul> organizational employees and told to new employees to inform <br /> them about an organization.<br />- Stories keep alive the primary values of the organization.<br />- Commonly include company heroes or historic legends.<br />
  24. 24. Corporate Culture<br /><ul><li> Symbols </li></ul>- Physical artifacts use to focus attention on a specific item. <br />- Nordstromexample:<br /><ul><li> Language
  25. 25. Includes slogans and metaphors.
  26. 26. 3M – “at 3M the 11th commandment is never kill a new product idea.”
  27. 27. YEGA </li></li></ul><li>How to explore culture?<br />Culture Interviews<br />
  28. 28. Does Culture Makes Difference?<br />
  29. 29. System Effectiveness<br />Constructive cultures promote a greater “exchange” between the organization and members (and increase effectiveness)<br />Aggressive/Defensive cultures fail to enhance members’ contributions and outcomes (and thus promote turnover)<br />Passive/Defensive cultures reduce members’ contributions and outcomes (and reduce effectiveness)<br />
  30. 30. System Effectiveness<br />Greater effort<br />Higher performance<br />More innovative solutions <br /><ul><li>Member Perspective</li></ul>Outputs (to members)&gt; Inputs (from members)<br />Higher satisfaction <br />Lower stress<br />Greater inclusion & integration <br />
  31. 31. Approval (3)<br />Conventional (4)<br />Dependent (5)<br />Avoidance (6)<br />Passive/Defensive Cultures<br />
  32. 32. Aggressive/Defensive Cultures<br />Oppositional (7)<br />Power (8)<br />Competitive (9)<br />Perfectionistic (10)<br />
  33. 33. Achievement (11)<br />Self-Actualizing (12)<br />Humanistic (1)<br />Affiliative (2)<br />Constructive Cultures<br />
  34. 34. Differences between employees<br />Life Styles Inventory<br />(Descriptions by Others)<br />Effectiveness in<br /> Current Position<br /> Top 10%<br />(n = 487)<br />
  35. 35. Differences between employees<br />Life Styles Inventory<br />(Descriptions by Others)<br />Effectiveness in<br /> Current Position<br />Bottom 10%<br />(n = 459)<br />
  36. 36. 166%<br />Revenue<br />74%<br />Stock Prices<br />1%<br />Net Income<br />IMPACT on Performance<br />DefensiveCulture<br />ConstructiveCulture<br />682%<br />4X!<br />901%<br />12X!<br />756%<br />
  37. 37. Metamorphosis<br />Organizational Culture – National Culture<br />National Culture has bigger influence than corporate<br />
  38. 38. Different Examples<br />Imagine few extreme cultures<br />
  39. 39. Art Gallery<br />Visible aspects of cultural organization<br />
  40. 40. LIBRARY<br />Way to solve problems, documentation, politics, written communication ...<br />
  41. 41. Church<br />Holy place. Strategy, goals, philosophy<br />
  42. 42. CATACOMBS<br />
  43. 43. CULTURES can be Changed!<br />Who lives in caves?<br />Xerox<br />Daimler Chrysler<br />Civil Rights & Increasing Tolerance<br />NASCAR<br />Boston Red Sox / Chicago White Sox<br />The Catholic Church<br />From Communism to Capitalism<br />
  44. 44. Leadership<br />“Organizational cultures are created by leaders, and one of the most decisive functions ofleadership made well be the creation, the management, and – if and when that may becomenecessary – the destruction of culture.”<br />A Culture of Continuous Learning – Key to Improving Organizational Culture<br />
  45. 45. THE END!<br />How we do things round here!<br />
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