Professional Documents
Culture Documents
Andrew Chan
Assistant Professor, City University of Hong Kong, Department of Business and
Management, Kowloon, Hong Kong
following month, new hires are oriented basics” orientation helps supervisors
through the one-day “Know our DHL” pro- empathize with staff and realize the pivotal
gramme. To ensure that the socialization roles of front-line couriers in the business.
begun in the first weeks has taken hold, in the
ninth month of employment, new hires take a
Trust of members and draconian penalties
full-day “Back to basics” programme.
In the ritualistic induction programme, The clan business configuration provides
“Winning orientation”, all new hires watch a allowances for mistakes as well as for
12-minute video featuring the history and improvement. Victor Wong, the intracity
structure of the company. During this video, express manager, when asked if he had made
new hires are first introduced to the founder any mistakes since joining DHL replied: “Yes,
and hero figure of DHL International, Po but small events. I can explain to others why I
Chung. The next video programme, “Know did it that way. In the process, I learned that I
our DHL”, provides inductees with formal have to keep others informed...it depends on
structural knowledge on the organization. the situation. DHL can afford managers to
Trainers faultlessly deliver a well-rehearsed make mistakes as they don’t know the prob-
script detailing the company structure, its lem”. Virginia Darley continued:
products and services. A third video features Actually I have a quite western mind [I] am
good at project type jobs…but under this
a simulated work flow showing how orders
environment I have to care for others’ feel-
are taken from customers, and the steps that ings…Human interface is very important
a parcel must go through to be delivered at here. To give a sense of self-respect and
the doorstep of the recipient. To give the audi- respect to others is important. That is what I
ence a feel of what it is really like to be a learnt here. It was also my difficulty when I
courier, an operations supervisor provides a joined…[I] am a very straight person whodid
realistic job preview to help explain and illus- not fit with this environment of “guanxis”,
trate the daily duties of a DHL operations or relationships. I don’t care about
supervisor/ courier. In this way, all employ- others…[I] am not good at handling human
interface…but I am good at personnel man-
ees are given their formal initiation into
agement and I can say I am successful now.
DHL. They should now know the theory
behind the courier business. However, they At the same time, the environment can be
have yet to get a good feel for culture of the draconian if members fail to abide by the three
business nuts and bolts. Cs — communication, consensus and commit-
As the CEO and his top management ment. Failure to inform and involve others can
believe that it is important for staff to get a result in ouster from the organization. The
feel for the nuts and bolts of the operation worst failure is dishonesty. Because of the
team duties, supervisory staff who pass their great stock placed on trust in the organization,
probation, especially those serving in non- dishonest staff are often asked to resign in lieu
operational capacities, are invited to work of summary dismissal. What is at work here is
hands-on, as a courier for a day. This “Back to a subtle psychological contract, based on a
[ 97 ]
Andrew Chan tacit understanding of reciprocation that Keynote Speech of the Singapore Productivity
Corporate culture of a clan commensurates with an act, whether right or Board, and in tertiary education institutions
organization: a case study of wrong. The critical leverage appears to be that such as Stanford, IMD, St Gallen, Chinese
DHL International of honour. In a clan context, members are University of Hong Kong, and the Hong Kong
Management Decision regarded as trustworthy and intelligent indi- University. According to the address, the
35/2 [1997] 94–99 viduals who can exercise discretion and judge- company’s philosophy is embodied in three
ment when executing their duties. Unlike basic tenets which are:
their counterparts in some conventional orga- 1 decentralization in terms of giving staff
nizations in which this kind of honour is like the authority and trust to carry out neces-
something that is tagged on, staff at DHL sary decisions, and to push decisions to
derive satisfaction and honour in the sheer act the lowest level;
of performing their roles and duties. 2 strategic thinking whereby staff from
assistant manager level are trained to look
Clan elders to interpret the law and to at business using a “helicopter” view, and
hand out punishment to make decisions that can be used as
Last, all of the clan structure and success strategic weapons against competitors; and
factors depicted so far have been made possi- 3 Asian family attitudes stressing the idea
ble through the engineering efforts of Po that loyal and diligent staff must be repaid
Chung, who is seen as a patron and a father- with humanistic treatment, reciprocal
figure of his organization even outside the commitment, care and respect from the
DHL community. Po Chung, like a chief clan company.
elder, issues commands and judgements from
his office through his team of general man- Flowing from these basic tenets, Po Chung
agers – the minor clan elders. Like any chief holds the belief that every member of staff
clan elder, his words are the clan’s law, has six fundamental rights:
revered and unchallenged, and often taken as 1 the right to be involved because manage-
essential guides informing thoughts and ment has institutionalized genuine, bot-
actions within the company. tom-up involvement;
2 the right to understand his or her career
path, career opportunities and how one
Conclusion can realize them;
3 the right to be held accountable, to share
The clan culture of DHL, as Po Chung himself in the ownership of the group’s problems,
agrees, is a crucial factor inherent in the and to share the inherent risks and
company’s capability to maintain competi- rewards;
tiveness and growth under turbulent and 4 the right to affect one’s destiny, and the
uncertain conditions. Our observations and opportunity to influence one’s own future;
propositions derived from the initial in-com- 5 the right to make a commitment, and to be
pany study were confirmed and validated by able to affirm one’s obligation to the com-
Po Chung, in an interview conducted with pany;
him one year after the company cultural 6 the right to a covenantal or familial rela-
analysis. Po Chung, in that interview, tells us tionship with the company.
that the company exemplifies strong manage-
ment values, especially in areas pertaining to These six fundamental rights enable mem-
human asset development. This commitment, bers to fulfil their needs and to realize mean-
which we interpret as an urge to sustain ingful and fulfilling work relationships. It
internal stability, resonates the indigenous seems a climate of trust is anchored around
character of clan, and social enclave struc- these principles. Company policies and rules
ture formation under turbulence and uncer- are laid down to protect these human assets.
tainty. Such a gradual transformation has Full membership in the clan engenders full
been possible through the blessings of those accountability and a corresponding full co-
clan elders who believe their own career optation. Po Chung claims that staff are
attaintment is the manifestation of the com- empowered to make decisions right to entry-
pany’s human resource and career develop- level positions. Unlike many other CEOs who
ment policies. To reciprocate, this core of only claim to empowerment, Po Chung has
loyal clan members helps to build the “strong acted on that basis. Everyone is considered in
wall” which has protected the company from charge of quality in the company. Almost
the turbulence posited by competitors, and anyone can come forward on that count to
environmental uncertainty. deal with quality problems.
The company’s philosophy is well docu- The close kinship mechanisms of the
mented in the founder’s speech which he has clan’s social enclave protects clan members
given over the last ten years to audiences in from outside temptations and threats at all
forums including Business Week Interna- costs. By striving to treat all clan members
tional, a Pacific-Rim conference, the Annual as equals, the behaviours and attitude of
[ 98 ]
Andrew Chan top management communicate this The generalizability of the clan metaphor
Corporate culture of a clan possessiveness to all levels. It is seen that this for organizational operation is as yet
organization: a case study of familial internal climate acts to minimize unknown. It is argued that familial clans are
DHL International internal competition. Hence, politicking is not restricted to the East Asian culture. To a
Management Decision rendered meaningless. Human relationships large extent, familial clans throughout the
35/2 [1997] 94–99 are built on openness in communication, and world tend to develop under similar condi-
all information is freely available through tions. Social enclave formation seems to be
contributions to the departmental suggestion natural for human existence under condi-
box and “cityhall” sessions in which staff tions of uncertainty. As business environ-
ideas and queries about management’s ments become increasingly turbulent with
actions are explained by the senior staff. greater interconnectedness among
Externally, DHL, consistent with the clan economies and industries, business clan
principles, has also anticipated and prepared formation may become a major movement
for the age of the “virtual corporation“. This throughout the business world.
is in the sense that it “relates partnership
with other companies throughout the sup- References
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