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Human Resource Management Assignment on Organization Culture Submitted To: Prof Anurag Shanker Date Submitted 22

Human Resource Management Assignment on Organization Culture

Submitted To:

Prof Anurag Shanker

Date Submitted

22 nd March, 2013

Submitted By:

Rohit Pal

[JL12PGDM126]

Shohrab Ahmed Mazumdar

[JL12PGDM144]

Vatsal Sharma

[JL12PGDM173]

Acknowledgement

We wish to express our sincere gratitude to Prof Anurag Shanker for mentoring us and providing us with immense help till the completion of this project.

Here we also take opportunity to record a good team work which forms the basis of this projects completion. We also thank our batch mates for being so supportive. Last but not least, we wish to express a sense of gratitude to our beloved parents.

Organizational Culture

Table of Contents

Categories of Organizational Culture

6

History of concept of Organization Culture

10

Negative Culture Norms in Business Organization

11

Positive Culture Norms in Business Organization

12

Customers

14

Locations

14

Vision and Strategy

16

KONE’s values

17

KONE's organization

18

Management

18

Board of Directors

18

President

and CEO

19

Executive

Board

19

Committees

20

People

20

Enhancing the safety of our employees

20

About

Wipro Limited

23

About Google

30

Implications of Organization Culture

36

Conclusions

38

References’

39

Organizational Culture

Organizational Culture

Introduction to Organization Culture

A word about Culture

Originally an anthropological term, culture refers to the underlying values, beliefs and codes of practice that makes a community what it is. The customs of society, the self – image of its members, the things that make it different from other societies, are its culture. Culture is powerfully subjective and reflects the meanings and understandings that we typically attribute to situations, the solutions that we apply to common problems.

Deal and Kennedy (1982) argue that culture is the single most important factor accounting for success or failure in organizations. They identified four key dimensions of culture:

Values – the beliefs that lie at the heart of the corporate culture.

Heroes – the people who embody values.

Rites and rituals – routines of interaction that have strong symbolic qualities.

The culture network – the informal communication system or hidden hierarchy of power in the organization. Peters and Waterman (1982) suggest a psychological theory of the link between organizational culture and business performance. Culture can be looked upon as a reward of work; we sacrifice much to the organization and culture is a form of return on effort.

Culture is symbolic and is described by telling stories about how we feel about the organization. A symbol stands for something more than itself and can be many things, but the point is that a symbol is invested with meaning by us and expresses forms of understanding derived from our past collective experiences. The sociological view is that organizations exist in the minds of the members. Stories about culture show how it acts as a sense - making device. Culture is unifying and refers to the processes that bind the organization together. Culture is then consensual and not conflictual. The idea of corporate culture reinforces the unifying strengths of central goals and creates a sense of common responsibility. Culture is holistic and refers to the essence – the reality of the organization; what it is like to work there, how people deal with each other and what behaviours are expected. All of the above elements are interlocking; culture is rooted deep in unconscious sources but is represented in

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superficial practices and behaviour codes. Because organizations are social organisms and

not mechanisms, the whole is present in the parts and symbolic events become microcosms

of the whole.

Companies Sited in this Assignment

KONE Elevator India Private Limited

Wipro Limited

Google

Organizational Culture

Organizational Culture

According to Manetje & Martins (2009) Brown (1998) defined organizational culture as “the pattern of beliefs, values and learned ways of coping with experience that have developed during the course of an organization’s history, and which tend to be manifested in its material arrangements and in the behaviours’ of its members”. Organizational culture is a fundamental part of an organization’s collective experience. It may include routines, beliefs, values, goals, and systems which are learned, re-learned and passed on to new employees. Organizational culture can also include formal processes such as policies and procedures relating to working hours, employee benefits and job descriptions; and informal processes such as leadership styles and patterns of information sharing. (Region of Waterloo, 2007) There are many good reasons why organizations need to work hard to maintain a good or improve a poor organizational culture:

Organizations with strong, healthy cultures tend to outperform organizations with weaker cultures. (Malick, 2001)

The psychosocial work environment, the organization of work and the management culture of the workplace can have a dramatic impact on employee stress and health outcomes. (Shain, 2001)

Developing a healthy workplace provides an opportunity to improve the health of your organization and to improve its public image and profile. It also offers the chance to curb organizational health costs and directly affect your bottom line. (Jones, 2005)

When employees experience a supportive work environment, costs related to illness, disability and absenteeism are lowered and employee satisfaction and productivity are increased. (Shain and Suurvali, 2001)

Better management of employees can be an important key to becoming an employer of choice and attracting and retaining talented staff. (Yardly, 2006)

Organizational Culture

Culture found in:

Espoused Basic Value Assumptions Observable Artefacts
Espoused
Basic
Value
Assumptions
Observable
Artefacts

Espoused Value:

Those values championed by a company’s leadership.

Basic Assumptions

Underlying (often unconscious) determinants of an organization’s attitudes, thought processes and actions.

Observable Artefacts

Architecture & Physical Surroundings

Products

Technologies

Style (clothing - art - publications)

Published Values / Mission Statements

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Myths / Stories / Rituals

The Cultural Web

Mullins (1999:806) presents a cultural web, which brings together different aspects for the analysis of organizational culture.

aspects for the analysis of organizational culture. The different aspects of cultural web are as follows:

The different aspects of cultural web are as follows:

Stories – The past events and people talked about inside and outside the company. Who and what the company chooses to immortalize says a great deal about what it values, and perceives as great behavior.

Rituals and Routines – The daily behavior and actions of people that signal acceptable behavior. This determines what is expected to happen in given situations, and what is valued by management.

Symbols – The visual representations of the company including logos, how plush the offices are, and the formal or informal dress codes.

Organizational Structure - This includes both the structure defined by the organization chart, and the unwritten lines of power and influence that indicate whose contributions are most valued.

Control Systems - The ways that the organization is controlled. These include financial systems, quality systems, and rewards (including the way they are measured and distributed within the organization.)

Power Structures - The pockets of real power in the company. This may involve one or two

Organizational Culture

key senior executives, a whole group of executives, or even a department. The key is that these people have the greatest amount of influence on decisions, operations, and strategic direction.

All these aspects, which make up the cultural web, help define and develop the culture of an organization. An organization’s culture can be disseminated by analyzing each aspect of the cultural web.

Categories of Organizational Culture

Harrison Categories

Chao et al (2011) mentioned that Harrison (1972) divided organizational culture according to its orientation into following four categories.

Power orientated:

Focuses on “control,” in this category it is thought that those in power always hold absolute control over the subordinates, and any opposition is to be suppressed (Chao et al 2011).

Role orientated:

This stresses the role’s expectation and regulation, and the wish is for the organization to operate under law and order, while the attention is on legality and responsibility (Chao et al 2011).

Task orientated:

The highest value is to reach organizational objectives, and one’s contribution towards the objectives is determined when evaluating the values of an organization’s structure, functions and actions (Chao et al 2011).

People orientated:

An organization is designed and built to suit the members’ needs and satisfy individual needs that cannot be achieved otherwise. Based on organizational duties and attitude towards the environment, Wallach (1983) separated organizational structure and obligations clearly.

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Tasks are mostly standardized or fixed and are based on control and authority (Chao et al

2011).

THCU categories

Similarly THCU (2009) mentioned following categories of culture in the organizations:

The Hierarchy Culture

A hierarchy culture is often found in formal, structured organizations that emphasize smooth running, stability, predictability and efficiency. These organizations rely on formal rules and policies. Because the environment is relatively stable, tasks and functions are usually integrated and coordinated and uniformity in products and services is maintained. Hierarchical organizations tend to rely on clear lines of decision-making authority, standardized rules and procedures. Control and accountability mechanisms are valued as the keys to success (THCU 2009).

The Market Culture

Market culture organizations tend to be oriented toward the external environment and are focused on transactions with external constituencies such as suppliers, customers, contractors, licensees, unions and regulators. Unlike a hierarchy, where internal control is maintained by rules, specialized jobs, and centralized decisions, the market culture operates primarily through economic market mechanisms, such as monetary exchange. Profitability, bottom-line results, strength in market niches, stretch targets, and secure customer bases is primary objectives of the organization. Market oriented cultures are results-oriented and emphasize winning (THCU 2009).

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The Clan Culture

Clan culture is in family type organizations that emphasize shared values and goals, cohesion, inclusion, individuality and a sense of engagement. They sometimes seem more like extended families than economic entities. Rather than relying on rules and procedures, clan-type firms focus on teamwork, employee involvement programs and corporate commitment to employees (THCU 2009).

The Ad-hoc-racy Culture

The root word of ad-hoc-racy is ad-hoc, implying something temporary, specialized and dynamic. Ad hoc- racies are often characterized as “tents rather than palaces” in that they can reconfigure themselves rapidly when new circumstances arise.

Dimension of Organizational Culture

Manetje & Martins (2009) Harrison and Stokes (1992) define the four dimensions of organizational culture as follows:

Power dimension:

Describes an organizational culture that is based on inequality, of access to resources. It has a single source of power from which rays of influence spread throughout the organizational.

This means that power is centralized and organizational members are connected to the centre by functional and specialist strings.

Role dimension:

This type of culture focuses mainly on job description and specialization. In other words, work

is controlled by procedures and rules that underlie the job description, which is more important than the person who fills the position.

Achievement dimension:

This often refers to a task culture, which entails organizational members focusing on realizing the set purpose and goals of the organization. The main strategic objective of this culture is to bring the right people together, in order to achieve the organizational goals.

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Support dimension:

Describes an organizational climate that is based on mutual trust between the individual and the organization. A support-oriented organization exists solely for the individuals who comprise it, and may be represented diagrammatically as a cluster in which no individual dominates. Hofstede (1980) also mentioned following four criteria, which are labelled by as dimensions; these are Power Distance, Uncertainty Avoidance, Individualism-Collectivism, and Masculinity-Femininity (Manetje & Martins 2009).

Relationship between Organization Culture and Leadership Behaviour

Culture is socially learned and transmitted by members; it provides the rules for behaviour within organizations. The definition of organizational culture is of the belief that can guide staff in knowing what to do and what not to do, including practices, values, and assumptions about their work. The core values of an organization begin with its leadership, which will then evolve to a leadership style. Subordinates will be led by these values and the behaviour of leaders, such that the behaviour of both parties should become increasingly in line. When strong unified behaviour, values and beliefs have been developed, a strong organizational culture emerges. Leaders have to appreciate their function in maintaining an organization’s culture. This would in return ensure consistent behaviour between members of the organization, reducing conflicts and creating a healthy working environment for employees. (Yafang Tsai 2011)

Relationship between Organization Culture and Job satisfaction

Organizational culture expresses shared assumptions, values and beliefs, and is the social glue holding an organization together. A strong culture is a system of rules that spells out how people should behave. An organization with a strong culture has common values and codes of conduct for its employees, which should help them to accomplish their missions and goals. Work recognition and job satisfaction can be achieved when employees can complete the tasks assigned to them by the organization. (Yafang Tsai 2011)

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Relationship between Organization Culture and Organizational Performance

According to Çiçek and Özer (2011) it has been contended that organizational culture can enhance organizational performance by energizing and motivating employees, unifying people around shared goals, and shaping and guiding employee behaviour. Some researchers asserted that organizational culture could provide a source of sustained competitive advantage for firms, particularly when it is seen as a firm-level resource that is valuable, rare, and difficult to imitate. An organization's cultural norms strongly affect all who are involved in the organization. Organizational culture with a development and innovation orientation had a direct effect on a firm’s innovation performance.

History of concept of Organization Culture

According to Schein (1990) organizational culture as a concept has a fairly recent origin. Although psychologists have been using the concepts of, "group norms" and "climate" for a long time, the concept of "culture" has been explicitly used only in the last few decades. Organizational "climate," by virtue of being a more salient cultural phenomenon, lent itself to direct observation and measurement and thus has had a longer research tradition. But climate is only a surface manifestation of culture, and thus research on climate has not enabled us, to delve into the deeper causal aspects of how organizations function. In the late 1940s social psychologists interested in "action research" and leadership training freely used the concept of "cultural island" to indicate that the training setting was in some fundamental way different from the trainees" "back home" setting. But the concept of "group norms," heavily documented in the Hawthorne studies of the 1920s, seemed sufficient to explain this phenomenon. In the 1950s and 1960s, the field of organizational psychology began to differentiate itself from industrial psychology by focusing on units larger than individuals. Wallace et al (1999) expressed that Blau and Scott were two of the first post-war management authors to assert that all organizations consist of both formal and informal dimensions, and that it is simply not possible to know or understand the workings of an organization without a sound understanding of its informal. It was not until 1978, however, that the first major analysis of the informal dimension, focusing on organizational culture and management, gained attention in the mainstream literature of organizational theory. This

Organizational Culture

was closely followed by the substantial work, which suggested that organizational cultures consist of cognitive systems explaining how people think, reason, and make decisions. Differing levels of culture, arguing that at the deepest level, culture consists of a complex set of values, assumptions, and beliefs that define the ways in which a firm conducts its business were also noted. Trefry (2006) narrated that organizational culture has been one of the most influential concepts and biggest management buzzwords of the last several decades. The term organizational culture appeared during the 1960s as a synonym for organizational climate. "Corporate culture" became a common management buzzword in the early 1980s after the publication of several popular press books. Although academic and popular management literature have reflected interrelated themes regarding culture and its effects, the pervasive assumption has been that organizational culture is closely related to organizational effectiveness. In practice, ambiguity of the concept has resulted in culture being used as a proxy for various phenomena affecting organizational performance. Thus culture often becomes a comfortably vague and all-inclusive reason for organizational problems.

Negative Culture Norms in Business Organization

1. Do Not Trust Across the Boundaries (Departments, Age, Gender, Race, and All Other Possible Distinctions)

2. Don’t Disagree with Your Boss

3. Don’t Rock the Boat; Don’t Make Waves

4. Don’t Be the Bearer of Bad News

5. Look Busy Even When You Are Not

6. Do Not Confront People or Problems

7. Blame (and Punish) Others When Things Go Wrong

8. Wait for Everyone Else to Change and Hope for the Best

9. Keep Wounds Open; Live in the Past

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Positive Culture Norms in Business Organization

1. Be Helpful and Supportive of Other Departments and Work Groups

2. Treat Everyone with Respect

3. Assume Good Intentions

4. Be Willing to Take on Responsibility

5. Congratulate Those Who Suggest New Ways of Doing Things

6. Keep an Open Mind; There Are Always Two (or More) Sides to the Story

7. Don’t Avoid Difficult Problems

8. Give Clear, Direct, and Specific Feedback

9. Put the Past behind You; Encourage Others to Forgive and Forget

Organizational Culture

Introduction of Companies

About KONE

KONE, one of the global leaders in the elevator and escalator industry, was founded in 1910 and celebrated its centennial anniversary in 2010. The company’s objective is to offer the best People Flow™ experience by developing and delivering solutions that enable people to move smoothly, safely, comfortably and without waiting in buildings in an increasingly urbanizing environment. KONE provides innovative and eco-efficient solutions for elevators, escalators and automatic building doors. We support our customers every step of the way; from design, manufacturing and installation to maintenance and modernization.

Our commitment to customers is present in all KONE solutions. This makes us a reliable partner throughout the life-cycle of the building. We challenge the conventional wisdom of the industry. We are fast, flexible, and we have a well-deserved reputation as a technology leader, with such innovations as KONE MonoSpace®, KONE MaxiSpace™, and KONE InnoTrack™. You can experience these innovations in architectural landmarks such as the Trump Tower in Chicago, the 30 St Mary Axe building in London, the Schiphol Airport in Amsterdam and the Beijing National Grand Theatre in China.

KONE employs approximately 33,800 dedicated experts to serve you globally and locally in over 50 countries. In 2010, KONE had annual net sales of EUR 5 billion.

Kone India

KONE started business in India more than 25 years ago and is today one of the largest

It employs about 2800 people in the today.

elevator company’s in the Indian elevator market. country,

KONE’s factory in Chennai produces elevators for the Indian market with some exports to Bangladesh, Nepal and Sri Lanka. Chennai additionally forms a base for modernization and supports other Asian-Pacific markets such as Australia, Singapore and Malaysia. The factory has a training centre where KONE’s installation engineers and field mechanics are trained to

Organizational Culture

meet KONE India’s strong reputation for high quality and non-compromised safety, as well as the expectations of Indian customers, when installing and maintaining elevators and escalators. KONE serves customers all around India through its 40 branches. The Indian Technology & Engineering centre located in Chennai is a key resource to support global functions. This centre will be a testing hub, which would support the latest technology and development of future KONE solutions.

Although KONE’s Indian operations was established to meet local demands, KONE Elevator India’s role is growing year by year and India clearly has a lot of potential to develop into an export base for other Asian markets. In terms of engineering and global software, KONE India already forms an integral part of KONE’s global business network, providing services for KONE business units in Europe, North America and Asia.

Customers

Our key customers are builders, building owners, facility managers, and developers. In addition, architects, authorities, and consultants are key parties in the decision making process regarding elevators and escalators.

We have segmented the market according to the purpose of the building. The main segments are residential buildings, hotels, office and retail buildings, infrastructure, and medical buildings. We also serve special buildings such as leisure and education centres, industrial properties, and ships.

We serve hundreds of thousands of customers across the globe, the majority of which are maintenance customers. Our maintenance customers range from small facility management companies serving a single building to large global retail or hotel chains.

Locations

We operate through more than 1,000 offices around the world. We have eight global production units located in our main markets, as well as seven global R&D centres. In

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addition, KONE has authorized distributors in over 60 countries. KONE’s head office is in Helsinki, Finland.

Business Environment Urbanization drives KONE’s business

The direction and shape of the global elevator and escalator industry are driven by four megatrends: urbanization, changing demographics, the increasing importance of safety, and concern for the environment.

KONE contributes to sustainable urban development by developing energy-efficient solutions that move people smoothly and safely in urban environments.

Rapid urbanization

Urbanization is the single most important megatrend within the global elevator and escalator industry. It is expected to drive demand for years to come. For the first time in history, an equal number of people live in urban and rural areas. The concentration of people in urban areas increases the importance of moving them efficiently from one point to another.

The growth of urban areas is most evident in Asia, where long-term population growth and migration from rural communities is expected to continue.

Aging population

The global demographic structure is changing. In particular, the world’s population is aging at an unprecedented rate. The growing number of older people raises the importance of accessibility in buildings and urban infrastructure. An elevator can help elderly residents live in their apartments longer, facilitate the lives of all residents in the building, as well as add value to an existing property.

Importance of safety

Urban infrastructure systems in certain markets are aging. National and international safety codes and standards play a key role in determining the safety level of elevators and

Organizational Culture

escalators. Particularly in Europe, many countries have adopted strict standards for safety and modernization in recent years.

Concern for the environment

Buildings consume approximately 40 percent of the world’s energy, and elevators and escalators can account between two and 10 percent of the energy consumption of an individual building. The elevator and escalator industry can play a vital role in helping to counter climate change and its negative effects by providing innovative solutions that help to reduce the energy consumption of buildings.

The demand for energy-efficient solutions for moving people in and between buildings is driven by voluntary sustainability ratings and national green building ratings. These are becoming more common and are on increasing importance to our customers. Sustainable urban building refers to building practices that improve energy efficiency, use sustainable materials and reduce a building’s negative impacts on human health and the environment.

Vision and Strategy

KONE’s vision is to create the best people flow experience. Our strategy is to deliver a performance edge to our customers by creating the best user experience with innovative People Flow® solutions. Simultaneously, our people leadership and processes enable operational excellence and cost competitiveness.

To help us realize KONE's vision of creating the best people flow experience, we continually strive to expand our understanding of customers’ needs. By responding to these needs and focusing on our people leadership and internal processes, we can achieve our four strategic targets of serving increasingly loyal customers, making KONE a great place to work, leading the industry in profitable growth, and providing the best user experience.

Development programs support our strategy

KONE’s efforts to meet its strategic targets are supported by development programs that are designed to help us turn our strategy into reality. These programs are reviewed and

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redefined at regular intervals in response to both achievements and changes in the business environment.

We have also refined the three high-priority areas that are the backbone for everything we do. These are safety, quality, and simplification. These high-priority areas support our key development programs and help bring the KONE strategy to life.

These development programs and strategic targets are founded on our core values of delighting the customer, energy for renewal, passion for performance, and striving to win together.

KONE’s values

Our values guide the behaviour of our personnel towards achieving our strategy. KONE’s values are:

Delighting the Customer

Our customers’ success is our goal. We work for and with them to identify and deliver solutions that exceed expectations. We stay with them for the total life cycle of our products and services and ensure the safety of users and our people.

Energy for Renewal

We are energized by the drive for continuous improvement. We anticipate and adapt to changing requirements and constantly seek ways to work smarter. We welcome new ideas with an open mind.

Passion for Performance

We keep our promises. We drive new ideas to realization with speed and an obsession for customer-driven quality. We thrive on challenges and take pride in our “can do” attitude.

Winning Together

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We can win only by working together. We encourage participation, and we share information and ideas. We trust and respect each other and recognize good performance. Our behaviour is characterized by the highest ethical standards.

KONE's organization

The KONE organization is divided into two business lines, Service Business and New Equipment Business, and five geographical areas, Central and North Europe, West and South Europe, Greater China, Asia-Pacific and Middle East, and the Americas. In 2010, the Major Projects unit, a separate business line, was combined with the New Equipment Business. KONE also established a new Customer Experience unit to further enhance its customer focus.

Experience unit to further enhance its customer focus. Management KONE Corporation’s management consists of the

Management

KONE Corporation’s management consists of the Board of Directors, the President and CEO and the Executive Board.

Board of Directors

The Board of Directors’ duties and responsibilities include drawing up of the Board of Directors’ report, interim reports and financial statements, ensuring the proper organization

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and surveillance of the accounting and asset management, the preparation of proposals for the General Meeting and the convocation of the General Meetings, the approval and confirmation of strategic guidelines and the principles of risk management, the ratification of annual budgets and plans the appointment of a full-time Chairman of the Board and a President & CEO, and decisions on the terms and conditions of their employment, decisions on the company’s corporate structure, decisions on major acquisitions and investments, and decisions on other matters falling under the Board’s responsibility by law. The Board of Directors has appointed two permanent committees consisting of its members: the Audit Committee and the Nomination and Compensation Committee.

President and CEO

The Chairman of the Board and the President and CEO are responsible for ensuring that the targets, plans, strategies and goals set by the Board of Directors are carried out within the KONE organization. In addition, the President and CEO is responsible for the operative leadership within the scope of the strategic and operative plans, budgets and action plans approved by KONE Corporation’s Board of Directors. The President presents issues concerning the operations and is responsible for implementing the decisions of the Board.

Executive Board

The Executive Board supports the President and CEO in executing the corporate strategy. The Executive Board follows business developments, initiates actions and defines operative principles and methods in accordance with guidelines handed down by the Board of Directors and by the President and CEO.

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Committees

The Board of Directors has appointed two committees consisting of its members: the Audit

Committee and the Nomination and Compensation Committee.

AuditCommittee

The Board of Directors’ Audit Committee comprises Antti Herlin (Chairman), Sirkka

Hämäläinen-Lindfors, Anne Brunila and Jussi Herlin. Sirkka Hämäläinen-Lindfors and Anne

Brunila are independent of both the company and of significant shareholders and Jussi Herlin

is independent of the company.

Nomination and compensation committee

The Nomination and Compensation Committee comprises Antti Herlin (Chairman), Jussi Herlin and Juhani Kaskeala. Juhani Kaskeala is independent of both the company and of significant shareholders.

People

Building a great place to work

In 2011, KONE had an average of 35,000 employees in more than 50 countries around the

world. Our objective is to provide every employee with fair treatment, equal opportunities,

and a safe working environment, as well as to make KONE a great place to work.

Enhancing the safety of our employees

At KONE we focus on making sure every one of our employees has the necessary

competence to perform their work in a professional and safe manner. All employees receive

training to a general level in health and safety, as well as training relevant to their respective

work roles and tasks.

Every manager is responsible for ensuring that all necessary arrangements are in place to

protect the safety of their teams. Employees and subcontractors follow the defined rules and

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methods to ensure the safety of themselves and anyone else who may be affected by their activities.

Members of the senior management teams periodically participate in workplace safety audits, and immediate corrective actions are taken if deviations are identified. If obstacles to safe working are identified, the work in question stops until a safe way to continue has been approved.

To support continuous improvement in KONE's safety performance, a procedure is in place to report and investigate accidents. The underlying root causes are identified and corrective actions implemented to ensure that the accident or near-miss incident is not repeated.

KONE organizes quarterly global safety network meetings to share lessons learned from accidents and near-miss incidents. The meetings also serve as a forum for sharing good practices and discussing concerns.

Creating a personal connection to the strategy

In order to see the connection between their daily tasks and KONE's global strategy, employees need to first understand what the strategy is all about. KONE's strategy is brought to life through a set of concrete actions with clear targets that all employees can contribute to in their daily work. In 2011, KONE's strategy was discussed regularly as part of various employee events and meetings throughout the year, and the key messages were visible through a wide range of channels, including videos, leaflets, posters, magazines, and the KONE intranet.

For example, KONE China devised and implemented a program to engage employees around the strategy. Local management planned and ran a roadshow covering 12 locations in 10 different districts in China. Each event was built around a common agenda. A management presentation about KONE's strategy was followed by an interactive workshop session where participants were engaged in discussion through a set of exercises. The workshops were successful in creating concrete connections to the KONE strategy through a set of actions at regional, branch, team, and individual levels.

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Engaging our employees Employee Engagement development program

At the beginning of 2011, we defined Employee Engagement as one of our five new development programs. The Employee Engagement development program builds on the earlier People Leadership program, focusing on the further improvement of leadership capabilities, on providing growth and development opportunities for our employees, and on ensuring wellbeing and safety at work.

During 2011, KONE began putting the program into action by building an integrated framework for employee well-being and by completing a feasibility study on flexible working practices as well as an employee benefit audit. The plan also included redesigning the global leadership development programs, delivering training on mentoring, and taking several measures that aim to facilitate job rotation.

Ensuring well-being and safety at work

In 2011 we developed a global framework for our employee well-being programs and created an implementation plan for 2012. Special focus will be placed on work-life balance, health education, and stress management. We also created guidelines on global flexible working practices and agreed on the pilot units that will implement these guidelines in 2012.

Measuring employee satisfaction

We conduct an annual survey with our employees to measure their level of satisfaction with KONE as a workplace. More than 28,000 employees gave their feedback in the 2011 survey, and the global response rate reached an all-time high of 87%, up from 78% in 2010.

The employee survey measures employee engagement and offers employees the opportunity to give their feedback. It also provides an insight into the level of engagement with KONE’s core values. The survey results were communicated and discussed in all teams during spring and summer 2011, and action plans were then created for the key improvement areas.

Learning and development

We aim to have the best possible professional in each position. Our annual leadership and talent review process ensures that resources are allocated in the right way to meet current

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and future business needs. In this process, we evaluate our management, identify successors, plan for career development, and identify potential candidates for future management positions. In 2011 we held several workshops to accelerate the identification and development of future leaders and successor candidates, with approximately 1,000 employees being included in the process.

The delivery of learning programs such as the Supervisor Development Program for first-level managers and the KONE Leader program for middle management continued as planned. In total, approximately 2,500 first-level and 1,300 middle management managers have been trained during the first round of the program. A new program for top management was piloted in preparation for full implementation in 2012. We also continued to develop our virtual training courses and materials, and launched a recruitment training package globally.

Diversity and equal opportunity

At KONE, diversity is accepted and highly valued. We are committed to creating an equal opportunity environment where discrimination of any kind is prohibited. Employees should be placed in positions that are best suited to their capabilities and which, at the same time, allow for personal and professional growth.

About Wipro Limited

Wipro Technologies is an IT service company established in 1980 in India, it is a subsidiary of Wipro Limited NYSE: WIT. It is headquartered in Bangalore. It is the third largest IT services company in India. It has 61,000 employees as of Oct 2006, which is inclusive of its BPO arm which it acquired in 2002.The current chairman and majority stake owner is Azim Premji. From inception the software and hardware divisions have been headed by him. Azim H. Premji has been Wipro Ltd.'s Chairman of the Board and Managing Director since September 1968. Wipro was set up in Amalner in 1945. Primarily an edible oil factory, the chief products were Sunflower Vanaspati and 787 laundry soap (a by-product of the Vanaspati operations). The company was called Western India Vegetable Products Limited, with a minor presence in Maharashtra and Madhya Pradesh. The Global IT Services and Products segment

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provides IT services to customers in the Americas, Europe, and Japan. The India and Asia Pac IT Services and Products segment operates in the Indian IT market and offers IT products and services to the companies in India, Asia-Pacific, and the Middle East region. Consumer Care and Lighting segment engages in the manufacture and sale of consumer care and lighting products. The consumer care products include soaps and toiletries, baby products, talcum powders, and hydrogenated cooking oils. The lighting products include light bulbs, fluorescent tubes, and luminaries. In the 1970s and 1980s it began to expand and made forays into computing. The Indian promoters hold more than 80 percent of the total share capital of the company while the Indian public holds about 7 percent and institutional investors hold about 6 percent. Wipro's has clients across a spectrum of industries such as consumer electronics, finance, Government, insurance, manufacturing, media & entertainment, mobile devices, Telecom equipment vendors and service providers, travel & transportation etc. To these clients the company offers services such as applicatio n development, deployment & maintenance, business intelligence, business consulting, CRM, data warehousing.

Wipro’s Principles of Effective Organizational Structure:

Wipro initiates IT organization by examining the state of a company’s organizational structure, leveraging its principles of an effective organizational structure to determine areas where operational effectiveness can be enhanced. Wipro applies its knowledge of organizational structure to IT design engagements to ensure that any proposed changes to an organization’s IT environment support the goals, processes and strategies that typify each level and division of that organization. The consulting approach emphasizes goal alignment at all phases of the IT organization design process to ensure any changes to an entity’s IT organization synergize across all organizational levels. Wipro highlights six principles it applies to develop an effective organizational structure that can carry out transformational IT redesign by universally connecting all key operational segments of the client organization.

Skills-based work assignments: Separating employees based on skills and capabilities allows the organization to effectively plan and utilize the right employees, minimizing excess training and downtime and reducing errors made while transitioning from one

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process to the next. This separation contributes to agility and scalability, allowing client organizations to ramp up or ramp down efforts based on demand.

Shared operations through job cards and service requests: Leveraging shared operations allows the organization to align teams centrally for focal areas, including types of technology and types of request or function or other bundling options. Organizations can request handling through job cards and service requests In line with service catalogues and service level agreements, serving to balance workloads with minimum and maximum thresholds on utilization levels for employees.

Flexible operations: By identifying a balanced mix of core and flexible resources as a strategic component of scalable operations, clients can maintain a standard base of employees to run baseline operations, or augment with an adaptive workforce during peak periods for efficient and effective ramp-up. Wipro’s Optimum Skill Versatility Index enables clients to understand required skills across resources that help them remain prepared and flexible by classifying resources into groups or teams based on specific technology focus and functionality.

Demand management: Demand management enables organizations to develop rolling production schedules that capture baseline demand, and then leverage economies of scale and diversified services catalogues to offset demand fluctuations that arise from inaccurate forecasts and unpredicted spikes. Production Planning and Control mechanisms with baseline and projected demand help establish variable demand environments.

Optimization of “Cost of Service”: Benefits from cost of service optimization include shared infrastructure, tools, environments and testing, reusable and standardized components, full or semi automation, and quick change-over processes, such as Lean production methods that reduce waste.

“Closed Loop” Operations: A closed-loop approach to operations brings analysis of post-deployment feedback to clients, providing an open dialogue for continuous improvements to operations. This final principle of effective organizational structure allows Wipro to closely monitor changes and developments after a transformation is completed.

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Wipro’s success in creating effective organizational designs stems from its comprehensive view of IT organizations and its ability to isolate key components necessary to be integrated into design frameworks.

Components of Effective Organization Design

frameworks. Components of Effective Organization Design As the above graph describes, Wipro asserts that leadership

As the above graph describes, Wipro asserts that leadership is the primary component required in an effective organization redesign. Leaders must possess a clear vision of the evolution and be able to prioritize tasks to empower the workforce and motivate the troops behind management’s transformational agenda of retooling the IT organization. Cohesion in the leadership team is essential, and Wipro believes it is the tie that binds a transformation and leads efforts from idea creation to implementation. Just as leaders require employees to be flexible as IT organizations undergo operational improvements and process shifts, leaders must possess the capacity for change and must stand by their message.

Clear decision making and structure is the second component of effective organization designs, as roles and accountability for decisions must be transparent, clearly articulated and understood to establish ownership of the transformation. Organizational structure must support overall objectives of consolidation or restructuring to provide a chain of command that affords a clear path for inquiries and clarity into each layer of the organization.

Organizational Culture

People constitute the third pillar of effective organization design, as successful hinges on the capabilities of employees to perform both individually and collectively as an organization. To drive productivity and employee satisfaction during turbulent times, Wipro believes leaders must implement performance measures and incentives that closely align with corporate objectives. Unification of employees across the organization is critical to a successful transformation, minimizing the risk of inefficiencies that may arise from disparate workers.

The fourth pillar, Work Process and Systems, includes successful execution of programmatic work and processes and effective and efficient support of processes and systems. The final pillar, Culture, encompasses high-performance values and behaviors as well as capacity and willingness to change as a group.

Wipro’s IT Organization design Overview

Types of Organization Design

Type

Characteristics

Skill-Based

Organized based on the skills and it can be applicable when the organization is small and no need to manage across multiple geographies

Service-Based

Organized based on the services and it can be applicable when the organization has different services and resources and skills needed are different

Solution-Based

Organized based on the services that are packaged for each solution and it can be applicable when the organization has different services and each service has multiple solution lines

LOB/ Account Based

Organized based on the LOBs/Account/Clients served and it can be applicable when customers are very different, and have different service requirements (resulting in different programs provided)

Hybrid

Organized based on the LOBs/Account/Clients served and it can be applicable when customers are very different, and

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have different service requirements (resulting in different programs provided)

have different service requirements (resulting in different programs provided)

Wipro’s IT Organization design Framework

To ensure IT redesign efforts a lign across all elements of an organization, Wipro applies the building blocks outlined above across five fundamental organizational layers:

Framework Guide to Set Up Service Oriented Business Unit

Strategy & Structure

Design and structure functions to better align with business

Segregate value delivery chain based on skills and segment into core and non-core

Flex pool of resources with shared operations allows optimum utilization of resources

Productive alignment of services/ support, leverage offshore team to remove “lag”

Process & Delivery Models

End-to-end value analysis of service delivery processes

Quantitative analysis to set, measure and plan process, delivery, quality and cost improvements

Embed prototyping and other relevant agile methods to ensure effective and efficient service delivery

People & Skills

Identify best in-class resources and appropriately allocate to functions

Create dedicated COE s based on functional and task expertise

Provide training to balance capacity and demand

Enable Service Quality Training

Culture & Communication

Assess readiness of organization for change

Create a communication framework

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Clearly define goals and objectives for each role

Provide on-boarding/ training on service-oriented business model for team members

Technology Infrastructure

Provision of appropriate technology tools to support software development life cycle, configuration management and reporting

Wipro’s IT organization redesign outlines three critical success factors that enable successful transformation and consolidation to build an efficient IT operating unit:

Utilize a comprehensive design approach, including strategy processes and people considerations:

Clearly defined governance, responsibilities and service levels for a centralized IT organization is essential for understanding current organizational processes and functions and determining areas that should be reshaped to successfully transform the business.

Focus on process excellence, ongoing quality and service improvement:

Best practices and compliance with industry standards are essential for continuous high efficiency and include such elements as CMMI and ITIL. To strive for optimal efficiency and lower operational costs and higher throughput, organizations must continually adopt improved standards and processes, allowing for the cost and quality benefits to be translated to the client. By setting realistic, achievable near-term and long-term goals, organizations can continually improve their organizational effectiveness while maintaining a disciplined approach through a step-by-step improvement program.

Develop staged implementation roadmaps according to the organization’s change readiness:

Organizations need a plan of action; developing a complete road map to organization transformation can reduce the risk of setbacks along the way.

Organizational Culture

About Google

Google Inc. is an American multinational corporation specializing in Internet-related services and products. These include search, cloud computing, software and Internet advertising technologies. Most of its profits derive from Ads

Google was founded by Larry Page and Sergey Brin while Ph.D. students at Stanford University. Together they own about 16 percent of its stake. They incorporated Google as a privately held company on September 4, 1998. An initial public offering followed on August 19, 2004. Its mission statement from the outset was "to organize the world's information and make it universally accessible and useful “and its unofficial slogan was "Don't be evil". In 2006 Google moved to headquarters in Mountain View, California.

Organization Culture of Google

Google has one of the most interesting organizational cultures. They are not only one of the fastest and most useful web search engines around; they are also one of the top 100 companies to work for according to Fortune (2007).

Google strives to have the fastest, most reliable search engine on the web and in order to accomplish this; Google has to hire employees that are the best in their technological field. Google rewards their employee's hard work with an extremely relaxed workplace that encourages creativity through fun activities such as roller hockey and through a casual dress code. Google also encourages their employees to take care of their minds and their bodies by offering them the ability to work out in the gym and get a massage inside the company building. "There is an emphasis on team achievements and pride in individual accomplishments that contribute to the company's overall success" (Google Corporate Information). I really like that Google understands that their employees have active lives outside of the workplace and they encourage their employees to bring those parts of their lives into the Google employee community. I also really like the fact that they build such loyalty from their employees that many of the employees see each other and the Google management as a family.

Organizational Culture

Google embodies the team orientation primary characteristic of organizational culture. As stated earlier, Google encourages its employees to work and play together so that a family bond is formed. According to Google (2007), "Meetings that would take hours elsewhere are frequently little more than a conversation in line for lunch and few walls separate those who write code from those who write checks." This really does reinforce a team environment. Everyone is pretty much on the same level and everyone works together. The limited walls in the building help the employees to feel like a group rather than an outsider in another department.

Google's organizational culture is very strong. Google hires people that embody their company's values and feel the same intense desire for unlimited amounts of information. This desire allows the company's employees to work towards the same goals and intensifies the bond that they share. Google tends to have a low turn over rate and receives over 1,300 applications a day (Fortune, 2007).

Google's culture is a combination of things. It is ethical, customer-responsive, and spiritual. Google encourages its employees to be creative in problem solving which sometimes calls for risk taking. These employees are allowed just enough freedom in their jobs that they do not take it for granted and this keeps them on ethical ground. The Google employees also have a sense of team instead of self so this encourages them to work together to achieve goals rather than compete against one another. This also prevents unethical behavior.

Google's low formalization and service-oriented employees work to be customer-responsive. They are allowed the freedom to make decisions that benefit Google users. The employees strive to provide the best service available and to do this they must be able to relate to their users. They understand that "thinking outside of the box" is what they are known for so they go above and beyond what others would do to satisfy a customer need while maintaining company values.

This "outside of the box" type of business also puts the company into a spiritual type of organization. Employees are rewarded for individual successes and for team accomplishments. They are also encouraged to have fun with their job. Google's ability to allow their employees to have fun while at work is motivating in itself. This motivation shows

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itself in the work as well. It is a give and take relationship; both sides get something out of it. Google has a unique way of conducting business that appeals too many. It is this sort of culture that creates individuals that have the desire and the motivation to stay with a company.

What Google believes in

Focus on the user and all else will follow.

Since the beginning, we’ve focused on providing the best user experience possible. Whether we’re designing a new Internet browser or a new tweak to the look of the homepage, we take great care to ensure that they will ultimately serve you , rather than our own internal goal or bottom line. Our homepage interface is clear and simple, and pages load instantly. Placement in search results is never sold to anyone, and advertising is not only clearly marked as such, it offers relevant content and is not distracting. And when we build new tools and applications, we believe they should work so well you don’t have to consider how they might have been designed differently.

It’s best to do one thing really, really well.

Google does search. With one of the world’s largest research groups focused exclusively on solving search problems, we know what we do well, and how we could do it better. Through continued iteration on difficult problems, we’ve been able to solve complex issues and provide continuous improvements to a service that already makes finding information a fast and seamless experience for millions of people. Our dedication to improving search helps us apply what we’ve learned to new products, like Gmail and Google Maps. Our hope is to bring the power of search to previously unexplored areas, and to help people access and use even more of the ever-expanding information in their lives.

Fast is better than slow.

Google knows your time is valuable, so when you’re seeking an answer on the web you want it right awayand we aim to please. We may be the only people in the world who can say our goal is to have people leave our website as quickly as possible. By shaving excess bits and bytes from our pages and increasing the efficiency of our serving environment, we’ve broken

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our own speed records many times over, so that the average response time on a search result is a fraction of a second. We keep speed in mind with each new product we release, whether it’s a mobile application or Google Chrome, a browser designed to be fast enough for the modern web. And we continue to work on making it all go even faster.

Democracy on the web works

Google search works because it relies on the millions of individuals posting links on websites to help determine which other sites offer content of value. We assess the importance of every web page using more than 200 signals and a variety of techniques, including our patented PageRank™ algorithm, which analyses which sites have been “voted” to be the best sources of information by other pages across the web. As the web gets bigger, this approach actually improves, as each new site is another point of information and another vote to be counted. In the same vein, we are active in open source software development, where innovation takes place through the collective effort of many programmers.

You don’t need to be at your desk to need an answer

The world is increasingly mobile: people want access to information wherever they are, whenever they need it. We’re pioneering new technologies and offering new solutions for mobile services that help people all over the globe to do any number of tasks on their phone, from checking email and calendar events to watching videos, not to mention the several different ways to access Google search on a phone. In addition, we’re hoping to fuel greater innovation for mobile users everywhere with Android, a free, open source mobile platform. Android brings the openness that shaped the Internet to the mobile world. Not only does Android benefit consumers, who have more choice and innovative new mobile experiences, but it opens up revenue opportunities for carriers, manufacturers and developers.

You can make money without doing evil

Google is a business. The revenue we generate is derived from offering search technology to companies and from the sale of advertising displayed on our site and on other sites across the web. Hundreds of thousands of advertisers worldwide use AdWords to promote their products; hundreds of thousands of publishers take advantage of our AdSense program to deliver ads relevant to their site content. To ensure that we’re ultimately serving all our users

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(whether they are advertisers or not), we have a set of guiding principles for our advertising programs and practices:

We don’t allow ads to be displayed on our results pages unless they are relevant where they are shown. And we firmly believe that ads can provide useful information if, and only if, they are relevant to what you wish to find–so it’s possible that certain searches won’t lead to any ads at all.

We believe that advertising can be effective without being flashy. We don’t accept pop–up advertising, which interferes with your ability to see the content you’ve requested. We’ve found that text ads that are relevant to the person reading them draw much higher click through rates than ads appearing randomly. Any advertiser, whether small or large, can take advantage of this highly targeted medium.

Advertising on Google is always clearly identified as a “Sponsored Link,” so it does not compromise the integrity of our search results. We never manipulate rankings to put our partners higher in our search results and no one can buy better PageRank. Our users trust our objectivity and no short-term gain could ever justify breaching that trust.

There’s always more information out there

Google indexed more of the HTML pages on the Internet than any other search service, our engineers turned their attention to information that was not as readily accessible. Sometimes it was just a matter of integrating new databases into search, such as adding a phone number and address lookup and a business directory. Other efforts required a bit more creativity, like adding the ability to search news archives, patents, academic journals, billions of images and millions of books. And our researchers continue looking into ways to bring all the world’s information to people seeking answers.

The need for information crosses all borders.

Google was founded in California, but our mission is to facilitate access to information for the entire world, and in every language. To that end, we have offices in more than 60 countries, maintain more than 180 Internet domains, and serve more than half of our results to people living outside the United States. We offer Google’s search interface in more than 130

Organizational Culture

languages, offer people the ability to restrict results to content written in their own language, and aim to provide the rest of our applications and products in as many languages and accessible formats as possible. Using our translation tools, people can discover content written on the other side of the world in languages they don’t speak. With these tools and the help of volunteer translators, we have been able to greatly improve both the variety and quality of services we can offer in even the most farflung corners of the globe.

You can be serious without a suit

The founders built Google around the idea that work should be challenging, and the challenge should be fun. We believe that great, creative things are more likely to happen with the right company culture–and that doesn’t just mean lava lamps and rubber balls. There is an emphasis on team achievements and pride in individual accomplishments that contribute to our overall success. We put great stock in our employeesenergetic, passionate people from diverse backgrounds with creative approaches to work, play and life. Our atmosphere may be casual, but as new ideas emerge in a café line, at a team meeting or at the gym, they are traded, tested and put into practice with dizzying speedand they may be the launch pad for a new project destined for worldwide use.

Great just isn’t good enough

Google sees being great at something as a starting point, not an endpoint. We set ourselves goals we know we can’t reach yet, because we know that by stretching to meet them we can get further than we expected. Through innovation and iteration, we aim to take things that work well and improve upon them in unexpected ways. For example, when one of our engineers saw that search worked well for properly spelled words, he wondered about how it handled typos. That led him to create an intuitive and more helpful spell checker.

Even if you don’t know exactly what you’re looking for, finding an answer on the web is our problem, not yours. We try to anticipate needs not yet articulated by our global audience, and meet them with products and services that set new standards. When we launched Gmail, it had more storage space than any email service available. In retrospect offering that seems obvious–but that’s because now we have new standards for email storage. Those are the kinds of changes we seek to make, and we’re always looking for new places where we can

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make a difference. Ultimately, our constant dissatisfaction with the way things are becomes the driving force behind everything we do.

Management team

Larry Page and Sergey Brin founded Google in September 1998. Since then, the company has grown to more than 30,000 employees worldwide, with a management team that represents some of the most experienced technology professionals in the industry.

Executive Officers

Senior Leadership

Board of Directors

Board of Directors

Larry Page, CEO

Sergey Brin, Co-Founder

Eric E. Schmidt, Executive Chairman

Recruitment

Sergey and Larry also focused on recruiting people with the right frame of mind. They were themselves personally involved in the recruitment process. In order to attract high performing candidates, Google posted top ten reasons to work for Google on its website.

Google recruited people with diverse skills and qualities. While recruiting, Google attached a lot of importance to academic excellence as revealed in grade scores in SAT and other graduate exams. To get an interview call from Google, a person had to be from a top-ranking university.

Implications of Organization Culture

Strength and Weakness of Kone and Wipro

Organizational Culture

Global R&D facility.

Retention of the man-power is the best in the industry.

Impressive list of clientele.

Relatively lower receivable compared to the industry average.

Diversified skill base across service lines

Delivery capabilities & client satisfaction

Commitment to go the extra mile

Technological partnership with other software companies

Low cost advantage

MEGA Partnership – Cisco, EMC, Microsoft, Oracle and SAP

(WEAKNESS)

Low operating margin of the other group companies.

Free floating stock is very less.

Domestic market was huge but was underdeveloped

Small player in global market

Limited domain

Clients not trusting the capabilities of Indian Software Cos.

IMPLICATION OF KONE

(STRENGTH)

Costumer designed products

Market share leadership

Strong management team

Strong brand equity

Reputation management

Fourth largest manufactures of elevators, door and gates, and escalators

Herlin family owned since 1924 One of the largest manufactures of elevator products.

Their brands of elevators are known for lasting a long time without and problems and are extremely efficient.

Organizational Culture

WEAKNESS

Low R&D

No online presence

There is not much research you can do besides make it go faster and efficiently for elevators and escalators.

The website just describes the elevators and escalators and does not give an idea of how much it would cost.

Many analysts feel that Google's zero per cent employee turnover rate during the dotcom boom, was a testament to its salubrious organizational culture. But not everyone was convinced that Google had got it right in terms of its work culture. They felt that company's culture was not set to manage its growth. A 12-hour working day had become norm at the company. Google's recruitment process was also criticized by analysts.

It was pointed out that Google had become too narrow in its recruitment by focusing only on the academic records and graduate ranks of the applicants rather than on experience. Commenting on the recruitment process, one Googler said, "If you've been at Cisco for 20 years, they don't want you." But the management defended the recruitment process saying that they valued intelligence and brainpower more than experience.

Conclusions

Organizational culture is the pattern of beliefs, values and learned ways of coping with experience that have developed during the course of an organization’s history, and which tend to be manifested in its material arrangements and in the behaviours of its members”. From the definitions and above description it is highlighted that organizational culture comprises created assumptions, which are accepted as a way of doing things and are passed on to new members of an organization. For new employees, this would mean adaptive

Organizational Culture

behaviour within the organization, leading to new belief systems. This new and adaptive behaviour, instilled through organizational values and beliefs, is associated with rituals, myths and symbols to reinforce the core assumptions of organizational culture (Manetje & Martins (2009). Moreover, organizational performance has been directly linked to organizational culture Schimmoeller (2010). It is concluded that as Organizational culture is very much effective in managing organizations then in the words of Ojo (2009) the culture of the organization should be developed to support continuous improvement, improve employees’ style of performing their job and thus develop quality awareness.

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