Culture

Presented by:
Priyanka Sharma(18155)
Priyanka Sharma(18158)
MBA Pharmaceutical Management (4 th sem)
Contents
Introduction

Organization culture
Building And Maintaining

Managing Cultural Diversity

Indian Culture Characteristics

Case study
INTRODUCTION
Culture
Cultureis the character and personality of your
organization. It's what makes your organization unique
and is the sum of its values, traditions, beliefs,
interactions, behaviors, and attitudes.
Culture is the unique dominant pattern of shared beliefs,
assumptions, values, and norms that shape the
socialization, symbols, language and practices of a group
of people.
Culture
Corporate culture or Organization culture, refers to the
beliefs and behaviors that tellhow a company's employees and
management interact and handle outside business transactions.
A company's culture will be reflected in its dress code, business
hours, office setup, employee benefits, turnover, hiring decisions,
treatment of clients, client satisfaction and every other aspect of
operations.
Culture
Corporate culture refers to the underlying beliefs, values, and
assumptions held by individuals within an organization, and the
practices and behaviours that demonstrate and support them

Culture reflects what the company considers important and what

it considers unimportant
Culture: Development of Corporate
Culture
Conscious vs Unconscious

Conscious specific steps are taken to define the intended culture

It is codified and used as the foundation for the development of business
strategies

The employees can better understand what is expected of them in relation to

the company and how they can contribute to the big picture

The public has clear information of what is expected from the company
Culture: Development of Corporate
Culture
Unconscious the culture develops organically based on the
actions, communications and personal values of the senior leader
or business founder
Inconsistencies between actions and communications in the perceptions of
the employees and public can lead to a culture different than the one
assumed by the leader

Inconsistencies can lead to reduced engagement levels

Google Inc.
is a company that is well-known for its
employee-friendly corporate culture.
It explicitly defines itself as
unconventional and offers perks such
as telecommuting,flextime, tuition
reimbursement, free employee
lunches, on-site doctors and, at its
corporate headquarters in Moutain
View, Calif., on-site services like oil
changes, massages, fitness classes,
car washes and a hair stylist.
Google's corporate culture has helped
it to consistently earn a high ranking
on Fortune magazine's list of100 Best
Companies to Work For.
Type of Culture(Roger Harrison -1972)

Power Role Task Person

Culture Culture Culture Culture
Concentrates People have Teams formed to Individuals
power among a clearly delegated solve particular believe
few. Have few authorities within problems. Power themselves
rules and little highly defined derives from superior to the
bureaucracy . structure . expertise. organization.
What does it mean to have a Strong
Corporate Culture?

Clear understanding of what the companys mission,

vision and values are.

Pervasive and consistent messages supporting the

mission, vision and values communications, business
strategies, actions and behaviours.

Alignment of employees personal values with corporate

values.
Benefits of a Strong Corporate
Culture
Employee engagement
Customer loyalty
Financial growth
Hiring
Trust and transparency
Codifying your Corporate Culture
Fundamental Concepts:

Mission

Vision

Values
 Mission Statement
A corporate mission statement should state the current
objectives of the company what are we currently
working towards achieving?

Mission statement should be brief and clear.

Mission Statement should provide opportunities for

growth.
 Vision Statement
The vision statement refers to where the organisation
sees itself in the future.

A vision statement should provide inspiration,

excitement and invoke a compelling change or impact.
 Corporate Values
Corporate values define the behaviours and
philosophies that guide the organisations internal
conduct as well as its relationships with outsiders.

Values must be well defined to enable employees to

understand expectations.
Creating a Strong Corporate Culture
Create Actions and Strategies
Bring words to life.
Connect intended culture to specific business goals and
objectives.
Walk the talk.
Create the standards.
Build a powerful and consistent message to employees
and the public.
Communicate
Meet with staff and explain the meaning behind the
words. Have it connect to their hearts and take on a
personal meaning to them.
Communicate strategies.
Use various communication mediums.
Create conversations with staff and acknowledge
situations where employees demonstrate the culture.
Customer Experience
Employees have a high level of understanding of the
culture to translate it into the desired customer
experience.
Employee model specific practices that symbolize and
represent the culture.
Customer experience will differentiate your business
from the competition.
Monitor and Evaluate
Informal feedback from employees and customers
Questionnaires
Turnover
Internal communications
Length of day
Stories
ORGANIZATION
CULTURE
 Organizational Culture is defined as the way in which members of an
organization relate to each other, their work and the outside world in
comparison to other organizations. It can enable or hinder an organization's
strategy. The Hofstede Multi-Focus Model on Organizational Cultural is a
strategic tool aimed at helping organizations to become more effective.
An organizations culture is shaped as the organization faces external and
internal challenges and learns how to deal with them. When the
organizations way of doing business provides a successful adaptation to
environmental challenges and ensures success, those values are retained.
These values and ways of doing business are taught to new members
astheway to do business.
Schein, E. H. (1992).Organizational culture and leadership.
San Francisco: Jossey-Bass.
TYPES OF ORGANIZATION
CULTURE
 Clanoriented cultures are family-like, with a focus on
mentoring, nurturing, and doing things together.
Adhocracyoriented cultures are dynamic and
entrepreneurial, with a focus on risk-taking, innovation,
and doing things first.
Marketoriented cultures are results oriented, with a
focus on competition, achievement, and getting the job
done.
Hierarchyoriented cultures are structured and
controlled, with a focus on efficiency, stability and
doing things right.
Building And
Maintaining
The factors that are most
important in the creation of
an organizations culture
include
Founders values and
Preferences
Industry demands.
Founders Values
A companys culture, is certainly tied to
the personality, background, and values
of its founder or founders, as well as
their vision for the future of the
organization. This is one of the reason
why culture is so hard to change: It is
shaped in the early days of a
companys history.
Founder values become part of the
corporate culture to the degree they
help the company be successful.
Example: the early success of Microsoft
may be attributed to its relatively
aggressive corporate culture, which
provided a source of competitive
advantage.
Industry Demands
Industry characteristics and demands act
as a force to create similarities among
organizational cultures.
Example: If the industry is one with a large
number of regulatory requirementsfor
example, banking, health care, and nuclear
power plant industriesthen we might
expect the presence of a large number of
rules and regulations, a bureaucratic
company structure, and a stable culture.
The industry influence over culture is
also important to know, because this
shows that it may not be possible to
imitate the culture of a company in a
different industry, even though it may
seem admirable to outsiders.
Maintaining
Organizational culture is maintained through a
processes:
Attraction-Selection-Attrition (ASA)
Onboardingprocesses
Attraction-Selection-Attrition (ASA):

Attraction: First, employees areattractedto organizations where they will fit in.
For example, out of the Big Five personality traits, employees who demonstrate
neurotic personalities were less likely to be attracted to innovative cultures, whereas
those who had openness to experience were more likely to be attracted to
innovative cultures.

Selection: Companies use different techniques to weed out candidates who do not fit
with corporate values.
For example, Google relies on multiple interviews with future peers. Companies may
also use employee referrals in their recruitment process. By using their current
employees as a source of future employees, companies may make sure that the
newly hired employees go through a screening process to avoid potential person-
culture mismatch.

Attrition: Refers to the natural process in which the candidates who do not fit in will
leave the company. Research indicates that person-organization misfit is one of the
important reasons for employee turnover.
Onboardingprocesses
Another way in which an organizations values, norms, and behavioral patterns
are transmitted to employees is through onboarding (also referred to as the
organizational socialization process). Onboarding refers to the process through
which new employees learn the attitudes, knowledge, skills, and behaviors
required to function effectively within an organization. If an organization can
successfully socialize new employees into becoming organizational insiders,
new employees feel confident regarding their ability to perform, sense that
they will feel accepted by their peers, and understand and share the
assumptions, norms, and values that are part of the organizations culture.
This understanding and confidence in turn translate into more effective new
employees who perform better and have higher job satisfaction, stronger
organizational commitment, and longer tenure within the company.
Managing Cultural Diversity
The concept of diversity is based on individual acceptance and
respect.
It is understanding that individuals are unique and different.
Cultural Diversity
It acknowledges the existence of broad cultural groups within a culture.
Cultural diversity includes (but not limited to): - Language - Race - Ethnicity
- Values and Religious Practices - Political Views - Social and Familial
Responsibilities
Managing Cultural Diversity
Communicat
ion
Team
building
Tim
e
Calend
ars
 Communication: Providing information accurately and promptly is
critical to effective work and team performance. This is particularly
important when a project is troubled and needs immediate
corrective actions. However, people from different cultures vary in
how, for example, they relate to bad news. People from some
Asian cultures are reluctant to give supervisors bad news while
those from other cultures may exaggerate it.
Team-building: Some cultures like the United States are
individualistic, and people want to go it alone. Other cultures value
cooperation within or among other teams. Team-building issues
can become more problematic as teams are comprised of people
from a mix of these cultural types. Effective cross-cultural team-
building is essential to benefiting from the potential advantages of
cultural diversity in the workplace
 Time: Cultures differ in how they view time. For example, they differ
in the balance between work and family life, and the workplace mix
between work and social behavior. Other differences include the
perception of overtime, or even the exact meaning of a deadline.
Different perceptions of time can cause a great misunderstanding
and mishap in the workplace, especially with scheduling and
deadlines. Perceptions of time underscore the importance of cultural
diversity in the workplace, and how it can impact everyday work.
Calendars: The business world generally runs on the western
secular year, beginning with January 1 and ending with December
31. However, many cultures use other calendars to determine
holidays such as New Years or specific holy days. For example,
Eastern Orthodox Christians celebrate Christmas on a different day
from western Christians. For Muslims, Friday is a day for prayer. Jews
observe holidays ranging from Rosh Hashanah to Yom Kippur. These
variations affect the workplace as people require time off to observe
their holidays.
Indian culture
characteristics
Indian Culture Characteristics
The governance and its impact on Indias corporate culture is
primarily relevant to Indian companies as multi-national
companies have global governance structures.
Within India, governance can be considered for three set of
companies:
- Indian foreign companies with foreign ADR listings.
- Indian public companies.
- Indian family controlled conglomerates.
1. Indian public companies with foreign ADR listings such as Infosys or
Wipro:
-. These companies face the broadest and deepest set of legal requirements
regarding governance since they must comply with SEC regulations.
-. However, what is impressive is that companies such as Infosys have gone
beyond typical requirements in promoting a higher level of transparency
in their governance and reporting.
-. Infosys has a board with a majority of outside directors, reports results in
compliance with eight different accounting standards, and discloses its
compliance with ten external governance codes .
-. Infosys premium valuation is providing a clear signal to other India
companies that good governance has tangible benefits. In fact, a
McKinsey survey revealed that Indian investors are willing to pay a 23%
premium for companies with good governance structures.
2. Indian public companies:
- These companies need to comply with Indian regulations which were
described by ICICI executives as being fairly robust.
- A McKinsey analysis also found that Indias regulations and
enforcement of accounting standards for Indian companies are fairly
strong as they were ranked fourth in Asia and ahead of countries
such as China.
- In addition, the incentive of being able to list shares overseas acts as
a motivator to ensure good governance.
- However, as state owned enterprises are partially privatized, it is
possible that the role of the government in the governance structures
of such companies could act as an impediment to executing certain
business strategies.
3. Indian family controlled conglomerates such as Godrej and Tata:
- These conglomerates are often a mix of private and public holding
structures.
- Some of these conglomerates have been well managed, but the quality
of governance may still be low due to tight control by family members.
- The need to raise public capital will clearly enhance the governance of
some of these organizations.
- However, the competition for Indian management talent will lead these
companies to improve governance to be perceived as attractive places
for long-term career relative to other opportunities in India.
- As an example, Godrej described a novel governance mechanism in
which a shadow board of young managers is appointed at the
company to advise the actual board on key issues.
 Conclusion:
Indias corporate culture appears to adopt global
corporate cultural practices in the areas of
entrepreneurship, professionalism, and governance.
India can take a few steps to further nurture the positive
aspects of its emerging corporate culture.
 Entrepreneurship can be fostered by strengthening bankruptcy laws
so that failed enterprises can be restructured, creditors can be
assured of legal recourse to reclaim assets, and the participants in
a failed enterprise can start again without a negative stigma.
Professionalism can be bolstered by a continuing effort against
corruption in government and business relations so that all Indian
enterprises, instead of just a few, comply with globally accepted
behaviors.
In addition, Indian regulators should react cautiously to move by
some Indian companies to enforce strict non-compete and non-
poaching clauses because such moves would limit the competition
for talent between companies and thereby slow the spread of
professionalism.
 Last, India should seek to surpass many of the
governance and reporting requirements in the
developed world for its publicly listed companies to
further enhance the governance mechanisms and
oversight within Indian corporations.
Case study: Siemens
Case study: Ethical culture change at
Siemens:
Serious compromise in the oversight and governance infrastructure of value chain (the
finance, legal and corporate management) undermined the reputation and perceived
value of Siemens in the market. Several elements included:
- Aggressive growth strategy
- Complex, decentralised matrix-like structure with minimal oversight from
headquarters and unclear processes on accountability.
- Overall corporate culture was weak with limited control resulting in poor practice.
This all threatened the survival of a long established and respected global firm.
In 2006, the company was in the wake of a corruption scandal that ultimately resulted
in estimated 2.5bn in fines from several markets. Four international investigations
were underway as well as an internal inquiry overseen by the time by a NY law firm.
Investigations were reported to cover business representing 60% of Siemens revenues
across operations in Asia, Africa, Europe, the Middle East and the Americans.
In 2007, Peter Loscher was brought n from Merck to take over as CEO.
He was charged with establishing a culture of integrity at the time when
some of the board had quit and a no. of key executives were facing
prosecution.
A key finding by the CEO was the level of disappointment in the failure
of leadership, contrasting with a history of great human pride in
Siemens. It reflected that briberys most significant impact is its
negative effect on employee morale.
Critically, fundamental changes were made to the overall corporate
governance with amendments to the make up and structure of the
boards. Managing board had been operating at a two-tier level. This two-
level system was folded into one board of eight individuals with insight
into operational activities and active engagement in decision-making.
 Focus on Corporate Governance:
Board appointed Peter Solmssen, a US lawyer, as General Counsel.
He argues for a view of sustainability that underlines every aspect
of global business culture and part of this is a culture of
responsibility that actively fights corruption and bribery.
Siemenss anti-corruption policy is based on 3 principles:
Prevent - Prevention is about training in anti-corruption policies.
Detect - Detection is about monitoring and controlling how policies
are working.
Response - Responding is taking action on violations.
 Open communication and transparency remains a strong focus and there are global
programmes underway which bridge the communication gap between top
management and lower management employees through the middle management.
In 2013, Siemens CFO Joe Kaser was appointed as CEO. He outlined how corporate
governance is managed by principles of:
- Focussing on longer term
- Working on real and sustainable value
- Considering the interest of stakeholders.
Ultimately strategy papers dont make or break the future and sustained success of a
company, its corporate culture does.
Thus, this case study shows an organization can build resilience by creating a culture
change that reinforces integrity, ethics, transparency and trust, across a complex
global business value chain following corporate crisis.
References:
http://artsfwd.org/4-types-org-culture/
http://www.investopedia.com/terms/c/corporate-culture.asp
https://geert-hofstede.com/organisational-culture.html
http://2012books.lardbucket.org/books/an-introduction-to-organizational-
behavior-v1.1/s19-04-creating-and-maintaining-organ.html
Thank You