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  1. ORGANIZATIONAL CULTURE Dr. Nisha Jain nisha.jain@nmims.edu

  2. What is Organizational Culture? • It is the set of values, norms, guiding beliefs, and understandings that is shared by members of an organization and is taught to new members.

  3. Schein’s Organizational Culture Model

  4. Culture at School • Identify campus norms at your university/School. Every organization or group has a set of norms that help determine individuals’ behavior. • Brainstorm all the norms you can think of in the following areas: • Dress, Classroom behavior; Studying; Weekend activities; Living arrangements; Campus activities; Relationships with faculty; Eating on campus versus off campus; Transportation • How did you initially get this information? • What happens to students who don’t follow these norms?

  5. Organizational CultureFormal Philosophy - The “HP Way” • Hewlett Packard founders – Bill Hewlett and Dave Packard • Egalitarian, decentralized system – “employees the most important resource” • Philosophy built loyalty of many thousands of employees since founded 63 years ago • Passed away in 1996 and 2001 • Legacy was not of multi-billion dollar technology giant, but instead of the “HP Way” • Passing of founders and increasingly competitive environment may be demise of the “HP Way” • Market forces – one of the most controversial mergers ever – HP and Compaq (49% of HP Shareholders voted against merger) • New CEO in 1999 hired from outside the company • Hired by the board to “shake up” the organization • Criticized for disregard to employees and culture of teamwork and trust • Was it really about employees’ resistance to (necessary) change and not about the new CEO?

  6. Wal-Mart • Founder Sam Walton’s concern and respect for staff from the foundation of the company creates an environment of trust that persists to this day. • Walton met staff, calling them by their first name and encouraged change to maintain the competitive edge. • To this day, staff think about “how Sam would have done it”.

  7. What are the values/beliefs/norms of the following companies? • India’s second largest bank exudes a performance-oriented culture. Its organizational practices place a premium on training, career development, goal-setting and pay-for-performance, all with the intent of maximizing employee performance and customer service. • “We believe in defining clear performance for employees and empowering them to achieve their goals” – MD, ICICI Bank ICICI BANK

  8. Wal-Mart, Inc. Wal-Mart’s headquarters almost screams out frugality andefficiency. • Wal-Mart’s headquarters almost screams out frugality and efficiency. • The world’s largest retailer has a Spartan waiting room for suppliers, rather like a government office waiting areas. • Visitors pay for their own soft drinks and coffee. • In each of the building’s inexpensive cubicles, employees sit atinexpensive desk finding ways to squeeze more efficiencies and lower costs out of suppliers as well as their own work processes. Visitors pay for their own soft drinks and coffee. In each of the building’s inexpensive cubicles, employees sit atinexpensive desk finding ways to squeeze more efficiencies andlower costs out of suppliers as well as their own work processes.

  9. Amazon.com • Frugality is a corporate value at Amazon.com • Four-story headquarters • All desks are made from doors. • Monitors are propped up on telephone books • Extra chairs are considered an extravagance

  10. Cultural Diversity Why Doesn’t McDonald’s sell Hamburgers in India?

  11. The Coca-Cola Story Ke3 means approve; permit; may; can; good; appropriate. Kou3 stands for mouth; hole; entrance. It looks like a mouth, right? Le4 means happy; joyful; be glad to; enjoy; laugh To allow the mouth to be able to rejoice, Something palatable from which one receives pleasure

  12. Characteristics of Organizational Culture • Innovation & Risk Taking • Attention to Detail • Outcome Orientation • People Orientation • Team Orientation • Aggressiveness • Stability

  13. Importance of Organizational Culture • Talent Attractor • Talent Retainer • Engages People • Creates Energy and Momentum • Changes the View of Work • Creates Greater Synergy • Makes Everyone more Successful