Escolar Documentos
Profissional Documentos
Cultura Documentos
ACKNOWLEDGEMENT
We wish to convey our heartiest thanks to Prof.Mousumi Bhattacharya & Dr. Nilanjan sengupta who has given us all an opportunity to work on this project. We are grateful to them for their constant guidance throughout the project. It was a fight in the beginning to gather all the information from various organizations about their cultures; however, through the constant efforts of our team members, we made this project a success. Working on this project has given us an insight about how the various organizations formulate their cultural values. We have been able to connect our theoretical knowledge with the practical working conditions of various organizations. It has been a boon working on the following project and we once again wish to thank our faculty members and the team, without whom this project would not have been a success.
1|Page
ORGANIZATIONAL CULTURE
ORGANIZATIONAL CULTURE:
Organizational culture is defined as a pattern of basic assumptions invented, discovered or developed by a given group, as it learns to cope with the problems of external adaption and internal investigation that has worked well enough to be considered valid and therefore is to be taught to the new members as the correct way to perceive, think, and feel in relation to those problems. Organizational culture is a set of shared understandings, norms, values, attitudes and beliefs of an organization which can foster or impede change. When people join an organization, they bring with them the values and beliefs that they have been taught. Quite often, however these values and beliefs are insufficient for helping the individual succeed in the organization. The person needs to learn how the particular enterprise does things. A common misconception is that an organization has a uniform culture. However, at least as anthropology uses the concept; it is probably more accurate to treat organizati ons as if they had a uniform culture. All organizations have culture, in the sense that they are embedded in specific societal cultures and are part of them. According to this view, organization culture is a common perception held by the organizations members. Everyone in the organization would have to share this perception. However, all may not do so to the same degree. As a result, there can be a dominant culture as well as subcultures throughout a typical organization. A dominant culture is a set of core values shared by a majority of the organizations members. The values that create dominant cultures in organizations help guide the day-to-day behavior of the employees. Important, but often overlooked, are the subcultures in an organization. A subculture is a set of values shared by a minority, usually a small minority of the organizations members. Subcultures typically are a result of problems or experiences that are shared by members of a department or unit. Subcultures can weaken and undermine an organization if they are in conflict with the dominant culture and overall objectives. Successful firms, however find that this is not the case always. Most subcultures are formed to help the members of a particular group deal with the specific day-to-day problems with which they are confronted. The members may also support many, if not all, of the core values of the dominant culture.
2|Page
ORGANIZATIONAL CULTURE
ORGANIZATIONAL CULTURE
beliefs, and assumptions guide how organization members think and act. The organizational culture informs members how to relate to each other and to outsiders, how to analyze problems, and how to respond to situations encountered in the organization. To promote a shared understanding of which "code" to follow, the formal code of conduct or the unwritten code of culture, the dynamics of organizational culture on an employee's ability to accurately interpret the ethical standards of the organization must be addressed. To support a culture of vigilance, employees also must be educated on the relationship between organizational integrity and the organization's strategic positioning. Employees who observe wrongdoing may not report it because they cannot fully estimate the resulting damage. Therefore, the organization should ensure employees are in a position to identify the potential consequences of ethical, compliance, and legal breaches, including opportunity costs and harm to the organization, its reputation, and stakeholders.
ENGAGEMENT
The cultural dimension of engagement is multifaceted and complex. Engagement is concerned with organizational and individual factors that contribute to a personal state of authentic involvement in the organization. Organizational processes used to recruit, orient, socialize, and manage employees influence engagement. Employees sense making, psychological contracts, and perceptions of fairness in organizational dealings influence the degree of authentic involvement by them. Managing these organizational processes and individual perceptions to facilitate high degrees of organizational commitment and identification encourages a culture of engagement that supports internal whistle blowing. If an organization member is not committed to high ethical standards there may be a tendency to rationalize questionable behavior as a common or even necessary practice in performing job duties. On the other hand, if an employee has high ethical standards that are not supported by the organization, there is a tendency for the employee to experience internal conflict. Such conflict will arise when organizational demands on employees are inconsistent with personal or professional values. The result is decreased commitment and an unwillingness to exert effort on behalf of the organization. Once employees enter the organization, socialization methods, including training on ethical standards can be used to deepen employee commitment to organizational values and norms.
4|Page
ORGANIZATIONAL CULTURE
CREDIBILITY
A culture of engagement that supports organizational commitment and identification, however, may not be sufficient for prompting employee disclosures. An employee will also seek to "test" the organization's commitment to integrity. Leadership behavior is a key determinant of employee perceptions and beliefs. The most powerful strategy that can be relied upon to facilitate credibility is employee belief in espoused ethics and values including organizational expectations for employee disclosure, attending to and monitoring congruence in the organizational culture. The role of leadership is central to this strategy. Aligning leadership behaviors with formal policies and consistent modeling of espoused values are important practices for fostering credibility. Demonstrating personal commitment to organizational values builds trust and creates a safe environment for employees to come forward and report concerns.
ACCOUNTABILITY
Accountability for communicating knowledge of wrongdoing will be carefully judged by employees. "Is it my job to report?" "Isn't this someone else's responsibility?" "Why should I get involved? After all, I am not the only one aware of what is going on here." Again, values, beliefs, and norms embedded in the organizational culture and picked up by employees will influence employee reflections.
5|Page
ORGANIZATIONAL CULTURE
Most of todays successful corporate giants in all industries basically followed these steps. Three well-known representative examples are Motorola, McDonalds and Wal-Mart. McDonalds: Ray Kroc worked for many years as a salesperson for a food supplier. He learned how retail food operations were conducted. He also had an entrepreneurial streak and began a sideline business with a partner. They sold multimixers, machines that were capable of mixing up to six frozen shakes at a time. One day Kroc received a large order for multimixers from the McDonald brothers. The order intrigued Kroc and he decided to look in on the operation the next time he was in their area. When he did, Kroc became convinced that the McDonalds fast food concept would sweep the nation. He bought the rights to franchise McDonalds units and eventually bought out the brothers. At the same time, he built the franchisee on four basic concepts: quality, cleanliness, service and price. In order to ensure that each unit offers the customer the best product at the best price franchisees are required to attend McDonald University, where they are taught how to manage their business. Here they learn the McDonald cultural values and the proper way to run the franchisee. This training ensures that the franchisees all over the world are operating their units in the same way. Kroc died several years ago, but the culture he left behind is still very much alive in McDonalds franchisees across the globe. In fact, new employees receive videotaped messages from the late Mr. Kroc. Wal-Mart: Sam Walton, founder of Wal-Mart Stores, Inc., opened his first Wal-Mart store in 1962. Focusing on the sale of discounted name brand merchandise in small town markets, he began to set up more and more stores in the Sun Belt. At the same time, he began developing effective inventory control systems and marketing techniques. Today, Wal-Mart has not only become the largest retailer but also one of the biggest firms in the country. Although Sam died a few years ago, his legacy and cultural values continue. To ensure that these values get out to all the associates, the company has a communication network worthy of the Pentagon. It includes everything from a six-channel satellite system to a private air force of numerous planes. Everyone is taught this culture and is expected to operate according to the core cultural values of hard work, efficiency and customer service.
6|Page
ORGANIZATIONAL CULTURE
LEVELS OF CULTURE:
ARTIFACTS VALUES BASIC ASSUMPTIONS
ARTIFACTS:
Artifacts are the most visible and accessible level of culture. It is symbol of culture in the physical and social work environment of the organization. Artifacts of culture are: PERSONAL ENACTMENT RITES AND CEREMONIES STORIES AND LEGENDS RITUALS SYMBOLS
PERSONAL ENACTMENT:
Personal enactment is a behavior that reflects the value of organization, through the examination of the behavior of organization members.
ORGANIZATIONAL CULTURE
RITES OF PASSES:
Rites of passes show the changed status of individuals in the respected organization. Retirement dinner
RITES OF RENEWAL:
Rites of renewal show the holistic changing in organization by enhancing the dedication towards learning and growth.
RITES OF INTEGRATION:
It emphasize on the commitment of the employees by uniting diverse group within the organization.Company function, annual picnic, cultural fest are the rites of integration in the organization.
RITES OF DEGRADATION:
It is basically punishment oriented and organization people may be punished visibly if they dont follow the organizational norms. Ribbon of shame, demotion in the organizational post, reduction in salary can be under the rites of degradation.
8|Page
ORGANIZATIONAL CULTURE
RITUALS:
Rituals are unwritten and shows the way the employee follow the things to be done in the organization. These are the everyday organizational practices repeated over and over.
SYMBOLS:
Symbols are again one important artifact of the organization which communicates about the organizational culture by unspoken messages.
VALUES:
Values reflect a persons underling believes in the organization, it is often consciously articulated both in conversation and the companys mission statement or annual report. a firms values and how it promotes and publicizes them can also affect workers feeling about their job and themselves.
ASSUMPTIONS:
Assumptions are deeply held believes that guide behavior and awakens the members of the organization how to perceive and go about the things.
9|Page
ORGANIZATIONAL CULTURE
SENE OF IDENTITY:
Culture provides a sense of identity to the members and enhances their commitment towards the organization.
VALUE REINFORCEMENT:
Values in the organization can be reinforced by the cultural activities.
CONTROL MECHANISM:
In shaping the behavior of members in the organization culture plays the big role.
CULTURAL PERPECTIVES:
THE STRONG PERSPECTIVE THE FIT PERSPECTIVE THE ADAPTATION PERSPECTIVE
10 | P a g e
ORGANIZATIONAL CULTURE
ORGANIZATIONAL SOCIALIZATION:
Another process that perpetuates culture is the way it is handed down from generation of employees. Newcomers learn the culture through organizational socialization The process by which newcomers are transformed from outsiders to participating, effective members of the organizations. The process is also a vehicle for bringing newcomers into the organizational culture.
11 | P a g e
ORGANIZATIONAL CULTURE
ANTICIPATORY SOCIALIZATION
The first stage encompasses all of the learning that takes place prior to the newcomers first day on the job. It includes the newcomers expectations. The two concerns at this stage are: Realism. Congruence. Realism is the degree to which a newcomer holds realistic expectations about the job and about the organization. One thing newcomers should receive information about during entry into the organization is the culture. Information about values at this stage can help newcomers begin to construct a scheme for interpreting their organizational experiences. There are two types of Congruence between an individual and an organization: Congruence between the individuals abilities and the demand of the job, and the fit between the organizations values and the individuals values. Value Congruence is particularly important for organizational culture. It is also important in terms of newcomer adjustment.
ENCOUNTER
The second stage of socialization, encounter, is when newcomers learn the tasks associated with the job, clarify their roles, and establish new relationships at work. This stage commences on the first day at work and is thought to encompass the first six to nine months on the new job.
TASK DEMAND
Task demand involves the actual work performed. Learning to perform tasks is related to the organizations culture. In some organizations, newcomers are given considerable latitude to experiment with new ways to do the job, and creativity is valued.
ROLE DEMAND
Role demand involves the expectations placed on newcomers. Newcomers may not know exactly what is expected of them or may receive conflicting expectations from other individuals. The way newcomers approach these demand depends in part on the culture of the organization.
12 | P a g e
ORGANIZATIONAL CULTURE
INTERPERSONAL DEMAND
Interpersonal demand arises from relationships at work. Politics, Leadership style, and group pressure are interpersonal demand. All of them reflect the values and assumptions that operate within the organization.
OUTCOMES OF SOCIALIZATION
Newcomers who are successful socialized exhibit good performance, high job satisfaction, and the intention to stay with the organization. In addition, they should exhibit low levels of distress symptoms. High levels of organizational commitment are also marks of successful socialization. Successful Socialization is also signaled by mutual influences. When socialization is effective, newcomers understand and adopt the organizations values and norms. This provides employees a context for interpreting and responding to things that happen at work. Newcomers adopt the companys norms and values more quickly when they receive positive support from organizational insiders.
ORGANIZATIONAL CULTURE
TRIANGULATION
A study of a rehabilitation centre in a 400-bed hospital incorporated triangulation to improve inclusiveness and accuracy in measuring the organizational culture. Triangulation has been used by anthropologists, sociologists and other behavioral scientists to study organizational culture. Its name comes from the navigational technique of using multiple reference points to locate an object.
14 | P a g e
ORGANIZATIONAL CULTURE
15 | P a g e
ORGANIZATIONAL CULTURE
CASE:
Cisco Systems Inc. (Cisco), the leader in Internet Protocol (IP)-based networking technologies and networking gear, recorded $2.2 billion in revenues and a market capitalization of $9 billion in 1995. By March 2000, market capitalization went up to $ 531 billion while revenues in 2000 were $19 billion. In 1995, Cisco accounted for 15% of the networking industry's profit and this figure went up to 50% in 2000. But with the tech meltdown of 2000-01, telecom companies and Internet service providers stopped purchasing telecom equipments from Cisco. Cisco was thus on a free fall, a situation the top management did not expect. "If somebody would've told me then that we'd go from 70% growth to minus 30% growth in 45 days, I'd have said it was mathematically impossible," said John T. Chambers (Chambers), President and CEO, Cisco Systems Inc.5 Though the company recorded losses in 2001, it bounced back with net profits the next year. Cisco's net sales for fiscal 2004 were $22.0 billion, an increase of 16.8 percent from the $18.9 billion for fiscal 2003, while net income for fiscal 2004 was $4.4 billion or $0.62 per share, compared with $3.6 billion or $0.50 per share for fiscal 2003 (Refer Exhibit I for stock market movement of Cisco between 1990 and 2005). Industry observers were quick to point out that it was the organization culture of Cisco that helped it survive the tough periods of meltdown. Cisco was founded on a culture based on the principles of customer focus, open communication, empowerment, trust, integrity, and giving back to the community. This culture ensured that Cisco was on the list of the Fortune magazine's '100 best places to work' for eight consecutive years, starting 1998.
16 | P a g e
ORGANIZATIONAL CULTURE
BACKGROUND NOTE
Headquartered at San Jose, California, US, Cisco was incorporated on December 10, 1984. The company was founded by a group of computer scientists, who designed software named IOS (Internet Operating System), which could send streams of data from one computer to another. This was loaded into a box containing microprocessors specially designed for routing. In 1985, the company started a customer support site from where customers could download software over FTP6 and also upgrade the downloaded software. Cisco, on its site, also provided a database that contained information about potential software problems to help customers and developers. By 1991, Cisco's support centre was receiving around 3,000 calls a month, which increased to 12,000 by 1992. To deal with the large volume of transactions, it built an online customer support system on its site. In 1993, Cisco installed an Internet-based system for large multinational corporate customers. The system allowed customers to post queries related to their problems. Cisco also installed a trigger function called the 'Bug Alert' on its website. The 'Bug Alert' sent e-mails on software problems within 24 hours of their discovery. Encouraged by the success of its customer support site, in 1994, Cisco launched Cisco Information Online, a public website that offered not only company and product information but also technical and customer support to customers. In 1995, it introduced applications for selling products or services on its website. This was done mainly to transfer paper, fax, and e-mails to the web to save time for employees, customers, and trading partners, besides broadening Cisco's market reach. In 1996, the company introduced a new Internet initiative, 'Networked Strategy' to leverage on its enterprise network to foster interactive relationships with prospective customers, partners, suppliers, and employees. In August 1996, Cisco launched transactional facilities including product configuration and online order placement connected to Cisco's ERP systems. In 1997, it introduced the dial-in access from desktop computers that enabled customers to place orders without accessing the Internet. In the same year, it also introduced customized business applications for its customers' corporate Intranets and automated the ordering process by linking directly to Cisco's internal systems. Commenting on the growth of Cisco in the late 1990s, Jeremy Duke, analyst at market research firm In-Stat7 said, "They are entering into the zone of the great phone companies, as moneymakers and as builders of infrastructure. There's nobody like them.
17 | P a g e
ORGANIZATIONAL CULTURE
RECRUITMENT AT CISCO
Cisco's recruitment practices reflected the company culture. Cisco's recruiting team identified candidates whom they felt the company 'should hire' and then designed its hiring processes to attract them to the company. In the late 1990s, the company was hiring at a rate which averaged 1000 new employees every month. For recruiting candidates who fit into the culture of Cisco, a selection criterion was developed which targeted candidates who were frugal, enthusiastic about the future of the Internet, and were not obsessed with status - all hallmarks of the Cisco culture.
'BUILT TO LAST'
According to some analysts, Cisco faced the risk of diluting its culture due to the influences of new recruits who brought in behaviors from past job experiences. "We're focusing on what it will take to communicate the culture and preserve it. That's another learning experience: Culture is not automatic.
18 | P a g e
ORGANIZATIONAL CULTURE
That it follows a principle of customer focus, transparent communication, employee empowerment, integrity and fragility. It is the culture where customer comes first but in CISCO its also the product that works and matters. Here engineer counts as much as culture. So CISCOs betting big on collaboration that draws manager input from all levels as the main drivers for its strategy to grab new market. Its taking a decentralized form, rather than working on a single leader decision making. In conclusion, Cisco Systems appeals to businesses and employees in similar ways by offering a standard to be the best provider and staying ahead of the competition. Their cultural presence is felt by worldwide leadership in technology by bringing jobs, as well as, communications to countries and government structures. Cisco offers a strong customer-responsive organization that blends with cultural needs and service to its employees. Thus it has a fit culture perspective where customer and competitors comes first. Although customer is the top priority in CISCOs culture but it gives equal importance to its employees. Its decentralized system of decision making & futuristic approach are the major gluing factor in retaining employees.
19 | P a g e
ORGANIZATIONAL CULTURE
20 | P a g e
ORGANIZATIONAL CULTURE
INVENTING 3M
In 1902, five businessmen founded Minnesota Mining and Manufacturing (popularly referred to as 3M) in Two Harbors, US. The new company was in the business of mining corundum, a mineral best suited for making sandpaper and grinding wheels. In 1904, when an artificial abrasive replaced corundum, 3M decided to manufacture sandpaper. Edgar Ober (Ober), one of the founding members of 3M, approached his friend Lucius Ordway (Ordway), a successful businessman for funds for the new venture. Ordway agreed to invest $25,000 in the company, on condition that he won't be involved in the day-to-day affairs of the company. However, by 1906, Ordway had invested around $200,000 in 3M and had become involved in the day-to-day affairs of the company. In the same year he became the President of the company. When 3M realized that the corundum owned by it was a low-grade anorthosite, it decided to shut down the mine and shift to Duluth in 1905. In the same year, 3M decided to import garnet 5from Spain. 3M received its first shipment of garnet in 1907 and started producing sandpaper. By 1911, 3M reported sales of $212, 898 and in the same year Ober appointed William L. McKnight (McKnight), who joined the company in 1907 as assistant bookkeeper as sales manager. In 1911, 3M brought out its first breakthrough product, Three-M-ite cloth. Three-M-ite became the company's first profitable product. The Carborundum Company, which had developed artificial abrasive coated emery cloth before 3M, filed a patent infringement suit against the company. 3M hired Paul Carpenter; a Chicago based lawyer and expert in patent law, and won the case against Carborundum. Due to Three-M-ite's success, 3M became debt free and announced its first dividend of 6 cents per share in 1916. In the same year, McKnight became vice-president. In the 1920s, 3M recruited people with diverse backgrounds and expanded its product portfolio. It also introduced two breakthrough products, waterproof sandpaper and Scotch masking tape, invented by Francis Okie (Okie) and Dick Drew (Drew) respectively. In 1922, 3M entered the English market and reported sales of $68,000 in the first year of its operations. In order to consolidate its presence in global markets, 3M established research laboratories, and a sales and marketing network across Europe.
21 | P a g e
ORGANIZATIONAL CULTURE
KNOWLEDGE SHARING
In addition to providing an environment that stimulated innovation, 3M also took steps to encourage knowledge sharing among its employees. According to analysts, innovation could flourish in 3M because the management encouraged its employees to talk. 3M employees never experienced any communication barriers.
REWARDING INNOVATION
In addition to recruiting innovative people, creating a challenging environment for employees, and encouraging a culture of knowledge sharing, 3M also focused on rewarding employees. To encourage the spirit of innovation among employees 3M realized it was necessary to reward them appropriately.
22 | P a g e
ORGANIZATIONAL CULTURE
The dual ladder career path adopted by 3M, created two career ladders - technical and management. This approach allowed even a technical person to get promoted to the vice-president level without taking on managerial and administrative responsibilities. From the 3M case we reach at the conclusion that though McNerney wanted to make the decision system a bit centralized but he preferred employees taking initiatives. Creativity, hard work & problem solving attitude are given importance at 3M. It focused on rewarding employees and there was not any communication barrier which encouraged the process of knowledge sharing. It basically followed an adaptive culture where employees were the main priority. 3M recognized that a strategic commitment to innovative products would pay off if it were tied to creating a culture that allowed its employees to be innovative and creative. When an employee at 3M made a mistake or had an idea that didn't work, he or she discussed it at a team meeting and the entire team celebrated the learning experience. Over time, a culture evolved where risk and innovation were viewed as necessary and complementary. 3M managed to link strategies to management and employee actions. It successfully linked corporate success to the development of new products and a lesser dependence on mature products. It linked its HR systems to its strategic framework by creating a set of HR strategies that provided; innovative compensation and reward systems, creative organizational structures, training and development plans tied to strategic outcomes, and targeted employee skills. Through over 90 years of trial and error, 3M has developed a culture that effectively supports both quality and innovation. So there was a cultural overhaul in the 3M system with the entry of McNerney which resulted in:
CULTURE OVERHAUL
By the late 1990s, 3M's growth rate started slowing down. According to reports, the stock price of 3M dropped from $83.00 in 1996 to $71.13 in 1998 and the price-earning ratio (P/E ratio) of the company also declined considerably. It was reported that during 1995-2000, earnings per share grew at an average of only 8.8% and shareholder returns fell far behind Dow and the S&P 500. Analysts felt that 3M was unable to respond to market conditions. Commenting on 3M's performance during the decade, Bob Burgstahler (Burgstahler), chief of Business development, said, "We have not produced elite results that correspond to the view that this is an elite organization." In December 2000, 3M announced the appointment of James McNerney Jr. (McNerney) of General Electric as its CEO. For the first time, an outsider was appointed as CEO of 3M. The stock markets responded positively to the appointment of McNerney and 3M's stock price closed at $120.50, the highest in the decade.
23 | P a g e
ORGANIZATIONAL CULTURE
3M has been encouraging a culture of innovation from the very beginning where employees are given freedom to work without any pressure. They are given full freedom to implement new ideas with no or very less questioning. There is no communication barrier in the organization. These are the major gluing factor in 3M which has retained its employees since so long.
SOUTHWEST AIRLINES
Southwest Airlines was incorporated in Texas and commenced Customer Service on June 18, 1971, with three Boeing 737 aircraft serving three Texas cities - Houston, Dallas, and San Antonio. Today, Southwest operates more than 500 Boeing 737 aircraft between 67 cities. Southwest topped the monthly domestic originating passenger rankings for the first time in May 2003. Yearend results for 2008 marked Southwests 36th consecutive year of profitability. Southwest became a major airline in 1989 when it exceeded the billion-dollar revenue mark. Southwest is the United States most successful low-fare, high frequency, point-to-point carrier. More than 38 years ago, Rollin King and Herb Kelleher got together and decided to start a different kind of airline. They began with one simple notion: If you get your passengers to their destinations when they want to get there, on time, at the lowest possible fares, and make darn sure they have a good time doing it, people will fly your airline.
ORGANIZATIONAL CULTURE
And finally, their Culture encourages celebration. First, they celebrate their Veterans on the month of Nov. America would be a much different place without the courage of their Veterans. They then celebrate the blessings of the past year on Thanksgiving. Southwest's no-layoff response to September 11 was a reminder to its employees of the organization's tradition of caring for its people. When asked to comment on this, an official explained, "Its part of our culture. We've always said we'll do whatever we can to take care of our people. So that's what we've tried to do."1 Southwest's organizational culture was shaped by Kelleher's leadership. Kelleher's personality had a strong influence on the culture of Southwest, which epitomized his spontaneity, energy and competitiveness. Southwest's culture had three themes: love, fun and efficiency. Kelleher treated all the employees as a "lovely and loving family". Kelleher knew the names of most employees and insisted that they referred to him as Herb or Herbie. Kelleher's personality charmed workers and they reciprocated with loyalty and dedication. Friendliness and familiarity also characterized the company's relationships with its customers...
BUILDING RELATIONSHIPS
Since its inception, Southwest attempted to promote a close-knit, supportive and enduring family-like culture The Company initiated various measures to foster intimacy and informality among employees. Southwest encouraged its people to conduct business in a loving manner. Employees were expected to care about people and act in ways that affirmed their dignity and worth.
ARTIFACTS
The artifacts which are the symbols of culture in the physical and social work environment can be seen in the way the Southwest Company treats its employees. To help keep the Culture at the forefront, they have two groups: Local Culture Committees and the Corporate Culture Committee. Both groups put on low-cost Employee events throughout the year. The Employees roll up their sleeves to help out their area Ronald McDonald Houses at Thanksgiving. Colleen Barrett who is the former President of southwest airlines sent cards to all employees on their birthdays... The CEO joins with the Employees to wish Happy Thanksgiving.
25 | P a g e
ORGANIZATIONAL CULTURE
Instead of decorating the wall of its headquarters with paintings, the company hung photographs of its employees taking part at company events, news clippings, letters, articles and advertisements. Customers are not assigned seats; rather, they are assigned to one of three "boarding groups" depending on their check-in time (earlier check-ins get to board earlier), and are left to choose their own seats on the plane, which helps the airline to board passengers faster
VALUES
Company Values ... Core Values LUV Code word for treating individuals, employees, customers Dignity, respect and caring loving attitude. Appeared on banners and posters at company facilities Fun Entertaining behavior of employees in performing their jobs. The ongoing pranks and jokes. Frequent company-sponsored parties and celebrations. Charity benefit games, chili cook-offs, Halloween parties
26 | P a g e
ORGANIZATIONAL CULTURE
Southwest was the only airline to remain profitable in every quarter since the September 11 attack. (Refer Exhibit VIII for financial position of Southwest.) Although its stock price dropped 25% since September 11, it was still worth more than all the others big airlines combined. Its balance sheet looked strong with a 43% debt-to-equity ratio and it had a cash of $1.8 billion with an additional $575million in untapped credit lines. The company left no stone unturned to boost employee loyalty and morale. South West Airlines has follows a fun loving attitude. Their culture is all about care, friendliness and familiarity this resulted in the thinking of the employees that they value us and thus we need to stick around. This is the main gluing factor of the organizations culture.
27 | P a g e
ORGANIZATIONAL CULTURE
CONCLUSION
Organizational culture is a pattern of basic assumptions that are taught to the personnel as the correct way to perceive, think and act on a dayTo-day basis. Some of the important characteristics of organizational culture are observed behavioral regularities, norms, values, rules, philosophy and so on. While everyone in the organization will share the organization's culture, not all may do so to the same degree. There can be a dominant culture, but also a number of subcultures. Some organizations have strong cultures and others have weak cultures. The strength of the culture will depend on sharedness and intensity. In some cases organizations find that they must change their culture in order to remain competitive and even survive in their environment. With reference to the cases in this project, we had analyzed the value system of the organization like CISCO, 3M and SOUTH WEST AIRLINES. 3M has built its organizational culture which holds its employees together in line with the vision and mission of the organization- southwest airlines has built an organization of repute - an enterprise that stands apart which even during the last economic downturn was unshaken. While CISCO has given its culture an innovative and futuristic approach with customer as the top priority.
BIBLOGRAPHY
www.icmrindia.org
28 | P a g e