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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.第一页,共五十二页。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 correspond

2、ing artifact. 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.第二页,共五十二页。Norms and ValuesNorms:Social rules and guidelines that prescribe appropriate behavior in particula

3、r situations.Folkways: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.第三页,共五十二页。Determinants of CultureCultur

4、e:Norms andValue SystemsEducationEconomic PhilosophyPoliticalPhilosophyReligionLanguageSocialStructure第四页,共五十二页。HofstedeStudy (IBM) is a general way to look at differences between cultures.4 dimensions:Power distance.Individualism versus collectivism.Uncertainty avoidance.Masculinity versus feminini

5、ty.But:Assumption of one-to-one relationship between culture and nation-state.Research may be culturally bound.Respondents worked within a single company.Work is beginning to look dated (1967-1973).第五页,共五十二页。Work Related Values for Selected Countries第六页,共五十二页。Culture and EthicsDo the “right” thing.T

6、homas Donaldsons Three Principles:Respect for core human values (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.第七页,共五十二页。The Organization and CultureOrg

7、anizational CultureValues, beliefs, behaviors, customs, and attitudes 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

8、attitudes held by people in different cultures.DiversityWhen members of a group differ from one another along dimensions such as age, gender, or ethnicity.第八页,共五十二页。Trends in Diversity and MulticulturalismReasons for Increasing Diversity and MulticulturalismIncreasing diversity and multiculturalism

9、in organizationsIncreased aware-ness that diversityimproves the qualityof the workforceThe globalizationmovementLegislation andlegal actionChangingdemographics inthe labor force第九页,共五十二页。How Diversity and MulticulturalismPromote Competitive AdvantageResourceacquisitionargumentSystemsflexibilityargum

10、entCreativityargumentCompetitiveAdvantageCostargumentProblem-solvingargumentMarketingargument第十页,共五十二页。Diversity and Competitive AdvantageDiversity promotes competitive advantage by:increasing organizational systems flexibility.bringing added creativity.increasing the market scope of products.broade

11、ning the resources acquisition basis.adding a diversity of viewpoints to problem-solving decision-making processes.decreasing the cost of doing business.第十一页,共五十二页。Multiculturalism and ConflictSources of ConflictPersonnel actions being attributed to diversity status.Misunderstood, misinterpreted, or

12、 inappropriate actions between people or groups.Cultural differences in work hours, personal styles, interpersonal relations, and conflict.Fear, distrust, or individual prejudices.第十二页,共五十二页。Managing Diversity and Multiculturalism in OrganizationsIndividual StrategiesUnderstanding the nature and mea

13、ning of diversity and multiculturalism.Developing empathy in understanding the perspective of others.Developing tolerance of fundamental cultural differences.Having a willingness to communicate and discuss diversity and multiculturalism issues.第十三页,共五十二页。Managing Diversity and Multiculturalism in Or

14、ganizations (contd) Organizational ApproachesOrganizational PoliciesActively seek a diverse and varied workforce.Positive responses to diversity problems.Mission statement of commitment to diversity.Organizational PracticesSupport networks, structured benefits packages, flexible working hours, and d

15、iversity in work groups and teams.Diversity and Multicultural TrainingTraining that enables organization members to function in a diverse and multicultural environment.Organizational CultureIncorporating into a culture the valuation of diversity.第十四页,共五十二页。“An organizations capacity to execute its s

16、trategy depends on its “hard” infrastructure-its organization structure and systems-and on its “soft” infrastructure-its culture and norms.”Amar Bhide“Quote”第十五页,共五十二页。What Makes Up a Companys Culture?Beliefs about how business ought to be conductedValues and principles of managementWork climate and

17、 atmospherePatterns of “how we do things around here”Oft-told stories illustrating companys valuesTaboos and political dontsTraditionsEthical standards第十六页,共五十二页。Where Does Corporate Culture Come From?Founder or early leaderInfluential individual or work groupPolicies, vision, or strategiesTradition

18、s, supervisory practices, employee attitudesOrganizational politicsRelationships with stakeholdersInternal sociological forces第十七页,共五十二页。How Is a Companys Culture Perpetuated?Selecting new employees based on how well their personalities “fit” inSystematic indoctrination of new employeesSenior employ

19、ees reinforcement of core valuesStory-telling of company legendsCeremonies honoring employees who display cultural idealsVisibly rewarding those who follow cultural norms第十八页,共五十二页。Forces and Factors Causing Culture to EvolveInternal crisesRevolutionary technologiesNew challengesArrival of new leade

20、rsTurnover of key employeesDiversification into new businessesExpansion into different geographic areasRapid growth adding new employeesMerger with or acquisition of another companyGlobalization 第十九页,共五十二页。Culture and Strategy Execution: Ally or Obstacle?Culture can contribute to - or hinder - succe

21、ssful strategy executionRequirements for successful strategy execution may - or may not - be compatible with cultureA close match between culture and strategy promotes effective strategy execution第二十页,共五十二页。Why Culture Matters: Benefits of a Good Culture-Strategy FitStrategy-supportive cultures Shap

22、e 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 motivate people to do their jobs in ways that promote good strategy executionStrengthen employee id

23、entification with the company, its performance targets, and strategy第二十一页,共五十二页。Why Culture Matters: Benefits of aGood Culture-Strategy Fit (continued)Strategy-supportive culturesStimulate people to take on the challenge of realizing the companys vision, do their jobs competently and with enthusiasm

24、, and collaborate with others to execute the strategyOptimal condition: A work environment thatPromotes can do attitudesAccepts changeBreeds needed capabilitiesCanDo!第二十二页,共五十二页。Types of Corporate CulturesStrong vs. Weak CulturesUnhealthy CulturesAdaptive Cultures第二十三页,共五十二页。Characteristics ofStrong

25、 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 screening/selection of new employees to be sure they will “

26、fit in”Visible rewards for those following norms; penalties for those who dont第二十四页,共五十二页。How Does a Culture Come to Be Strong? Leader who establishes values consistent withCustomer needsCompetitive conditionsStrategic requirementsA deep, abiding commitment to espoused values and business philosophy

27、Practicing what is preached!Genuine concern for well-being ofCustomersEmployeesShareholdersValuesCustomersEmployeesShareholders第二十五页,共五十二页。Characteristics ofWeak Culture CompaniesMany subculturesFew values and norms widely sharedFew strong traditionsLittle cohesion among the departmentsWeak employee

28、 allegiance to companys vision and strategyNo strong sense of company identity第二十六页,共五十二页。Characteristics of Unhealthy or LowPerformance CulturesPoliticized internal environmentIssues resolved on basis of turfHostility to changeExperimentation and efforts to alter status quo discouragedAvoid risks a

29、nd dont screw upPromotion of managers more concerned about process and details than resultsAversion to look outside for superior practicesMust-be-invented here syndromeAvoidrisks!第二十七页,共五十二页。Hallmarks of Adaptive CulturesIntroduction of new strategies to achieve superior performanceStrategic agility

30、 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第二十八页,共五十二页。Types

31、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 and ca

32、n serve as role modelsReplacing key executives strongly associated with old cultureCommunicating to all employees the basis for cultural change and its benefits 第二十九页,共五十二页。Symbolic Culture-Changing ActionsEmphasize frugalityEliminate executive perksRequire executives to spend time talking with cust

33、omersAlter practices identified as cultural hindrancesVisible awards to honor heroesCeremonial events to praise people and teams who “get with the program”第三十页,共五十二页。Substantive Culture-Changing ActionsBenchmarking and best practicesSet world-class performance targetsBring in new blood, replacing tr

34、aditional managersShake up the organizational structureChange reward structureIncrease commitment to employee trainingReallocate budget, downsizing and upsizing第三十一页,共五十二页。Establishing Ethical Standards and ValuesA culture based on ethical principles is vital to long-term strategic successEthics pro

35、grams make ethical conduct a 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 ethicsprogramc

36、onsists of . . .第三十二页,共五十二页。Value Statements 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

37、Codes of EthicsHonesty & observing the lawConflicts of interestFairness in marketing practicesUsing inside informationSupplier relationsCorrupt practicesAcquiring information Political activitiesUse of company assetsProprietary informationPricing, contracting, & billing第三十三页,共五十二页。Instilling Values

38、and Ethics in the CultureIncorporate values statement 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 ind

39、octrination第三十四页,共五十二页。Building a Spirit of HighPerformance into the CultureEmphasize achievement and excellencePromote a results-oriented culturePursue practices to inspire people to excelDesired outcomeProduce extraordinary results with ordinary people第三十五页,共五十二页。Approaches to Building aSpirit of High PerformanceTreat employees with dignity and respectTrain each employee thoroughlyEncourage employees to use initiativeSet clear performance standardsUse rewards and punishment to enforce high-performance stand

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