Professional Documents
Culture Documents
Business Management Prepared by: Jamal Chapter 8 Ideological Goal: Focuses on org mission, shared set of belief and values. Formal Goal: Imposed by dominant stakeholder, attainment of which route to org personal goals. Shared Personal Goals: Consensus on goal System Goal: Existence of organization, reason for being there, why exists? Objectives: They are quantified statement of what the org actually intends to achieve over a period of time. They orientate the activity of the org towards the fulfillment of mission. It can be used as standard for measuring the performance of the org and separate depts. Corporate Objectives Profitability Market share Growth Cash flow ROCE Risk Customer satisfaction Quality of product and services Industrial relationship Added value EPS Environmental fitness
Unit Objectives: Specific to individual unit of the organization. Commercial: Like increase sale to x %, increase profit by x%, reduce cost, increase production Public sector General. Trade off b/w Objectives: Some objectives can only be achieved at the expense of other e.g. achieving Good profit and growth might have adverse effect on cash flow and product quality. So the org can deals with conflicts in following manners: Rational evaluation according to financial criteria Bargaining Satisfying i.e. rather achieving excellence in one field at the cost of other field, keep minimum satisfying level for each field. Sequential attention Priority setting Stakeholder: Group or individual whose interest are directly affected by the activities of the organization. Internal (employees & management) Connected (shareholder, supplier, lender, customers), External (government & public) Stakeholders Objectives: Employees & Managers: Customers & Suppliers: Job security Quality product & reasonable price good working condition Reliable and regular order for supplier job satisfaction Customer service centre career development and training Product of long lasting period Society as a whole: Shareholders: Control on pollution Dividend and long term wealth Stockholders: Financial assistance, charity Co-operation for preventing health hazard Reliable payment of interest due
Business Management Prepared by: Jamal Chapter 8 ORGANIZATIONAL CULTURE: It consists of beliefs, attitude, practices, norms, ritual, values, custom and artifacts to which people are exposed during their interaction with the organization. Three levels of culture in the organization: Basic: Guide the behavior of individual or group like customer orientation, belief in quality etc Overt beliefs: expressed by the org & its member emerged from logo, slogan & mottoes Visible artifacts: The style of office or other premises, dress rules, displays trophies etc Ms Kinsey Seven S Model: He divided org culture into soft and hard elements which are interlinked with each other. Hard Elements Strategy Structure System Soft Elements Shared values Skills Staff Style
The Organization Iceberg (French & Bell) In the organizational iceberg, formal aspects are overt, while informal aspects are covert. Formal Aspects (similar to hard elements) Informal Aspects (similar to soft elements) Goal Beliefs & assumptions Terminology Values Structure Group norms Policies & procedure Perception Product Attitude Financial resources Informal interaction Culture and Structure: Power Culture: Someone holds centralized powers Role Culture: Bureaucracy, emphasis on rules and procedure Task Culture: Focus on delivering the current goal The Existential Culture: Supports individual independence and aspiration Culture & Strategy (Miles & Snow) Model of culture focuses on firm strategy, three strategic and one non strategic culture: Defender: Low risk, focuses on niche market, tried & trusted solution, formalized decision making. Prospectors: Dominated beliefs are more to do with results, seek to expand & increase market presence and move into new areas Analyzers: Balance risk & profit, follow change but not initiate it. Reactors: No viable strategies, ad hoc decision making Denison Model of Culture: Consistency Culture: Exist structure, formal ways of behavior.
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Business Management Prepared by: Jamal Chapter 8 Mission Culture: Environment is relatively stable, oriented towards its customers, members activities given values and meaning. Involvement Culture: Satisfaction and participation of employees, human relation approach to management. Adaptability Culture: Focus on external environment, ideas come from variety of sources, customer needs are fickle and change rapidly. Excellence, Culture & Motivation: (Peter & Waterman) They believes that motivation culture is necessary to get excellence service from employees Give employees great sense, inherently worth wile task Treated employees like winners Applying control but also allowing max individual autonomy Cultural Characteristics of a Dynamic Company (Pumpin) Four main aspects of business Expansion Speed Productivity Risk taking Weakness in other areas Customer Service Innovation Technology Attitude to work force Company spirit
Strategic Excellence Position (SEP) SEP fall into three categories; Product related: Technological superiority Market related: Excellent image Functional: Cost cutting Pumpin argue that it is not possible to excellent in everything and that company must decide where they aim to excel.