MGMT 449 - CH12 - FINAL

A company’s culture is manifested in . . .

• nValues, business principles, and ethical standards preached and
• practiced by management

• nApproaches to people management
• and problem solving

nOfficial policies and procedures

nSpirit and character permeating work environment

nInteractions and relationships among managers and employees

nPeer pressures that exist to display core values

nIts revered traditions and oft-repeated stories

nIts relationships with external stakeholders

nFounder or early leader

nInfluential individual or work group

nPolicies, vision, or strategies

nOperating approaches

nCompany’s approach to people management

• vTraditions,
• supervisory practices,
• employee attitudes

nOrganizational politics

nRelationships with stakeholders

• nConduct business according to a
• clear, widely-understood philosophy

• nConsiderable time spent by management communicating and reinforcing
• values

nValues are widely shared and deeply rooted

• nHave a well-defined corporate character,
• reinforced by a creed or values statement

• nCareful screening/selection of new
• employees to be sure they will “fit in”

nLack of a widely-shared core set of values

• nFew behavioral norms
• evident in operating practices

nFew strong traditions

nNo strong sense of company identity

nLittle cohesion among departments

nWeak employee allegiance to company’s vision and strategy

• nHighly politicized internal
• environment

• vIssues resolved on basis of
• political clout

nHostility to change

vAvoid risks and don’t screw up

• vExperimentation and efforts
• to
• alter status quo discouraged

• n“Not-invented-here” mindset –
• company
• personnel discount need to look outside for

vBest practices

• vNew or better managerial
• approaches

vInnovative ideas

• nDisregard for high ethical
• standards and overzealous pursuit of wealth by key executives

nStandout cultural traits include

• vA
• can-do spirit

• vPride
• in doing things right

• vNo-excuses
• accountability

• vA
• results-oriented work climate in which people go the extra mile to achieve
• performance targets

nStrong sense of involvement by all employees

nEmphasis on individual initiative and creativity

• nPerformance expectations are clearly identified for all organizational
• members

nStrong bias for being proactive, not reactive

nRespect for the contributions of all employees

• nWillingness to accept change and embrace challenge of introducing new
• strategies

• nRisk-taking, experimentation, and
• innovation to satisfy stakeholders

• nEntrepreneurship is
• encouraged and rewarded

nFunds provided for new products

nNew ideas openly evaluated

• nGenuine interest in well-being
• of all key constituencies 

• nProactive approaches to
• implement workable solutions

• nAny changes in operating practices and
• behaviors

• vMust not
• compromise core values and long-standing business principles

• vMust be “legitimate” in the sense of not having an
• inappropriate or unfair impact on the best interests of key stakeholders

«Customers

«Employees

«Shareholders

«Suppliers

«Communities

Select a strategy compatible withthesacred or unchangeable parts of organization’s prevailing corporate culture

Once strategy is chosen,changewhatever facets of the corporateculture hinder effective execution

nReplace key executives strongly associated with old culture

• nPromote individuals who have desired cultural traits and can serve as
• role models

• nAppoint outsiders who have desired cultural attributes to high-profile
• positions

• nScreen all candidates for new
• positions carefully, hiring only those
• who fit in with the new culture

• nMandate all company personnel attend culture-training programs to learn
• more about new work practices, operating approaches, and behaviors

nScreen out applicants who do not exhibit compatible character traits

• nIncorporate values statement and ethics code in employee training
• programs

• nStrong endorsement by senior executives of the importance of core
• values and ethical principles at company events and in internal communications

• nUse values statements and codes of ethics as benchmarks to judge
• appropriateness of company policies and operating practices

• nMake the display of core values and ethical principles a big factor in
• evaluating employee performance

• nTop executives must be out
• front personally

• vLeading
• the process and

• vDriving
• the pace of progress

• nEntire management team
• must  work diligently to engage
• all
• employees by

• vDelegating
• authority to middle and lower-level managers to move the implementation process
• forward  with all due speed

• vEmpowering
• all employees to exercise initiative, get things done in a timely, efficient,
• and effective manner

• nBe out in the field, seeing
• how well operations are going

nGather information firsthand

nGauge the progress being made

nBe diligent and adept in spotting gridlock

nFerret out problems and issues

• nLearn the obstacles in the path of good execution and clear the way for
• progress

nExert constructive, unrelenting pressure on organizational units to

• vDemonstrate
• growing consistency in strategy execution

• Achieve
• performance target

nVaries according to the situation

• vCrisis situation
• – Take remedial action quickly

• vNon-crisis situation
• – Incrementally solidify commitment to a specific course of action

• nDeciding on specific corrective
• adjustments is the same for both proactive and reactive
• situations

• nSuccess in initiating corrective
• actions hinges on

• vThorough
• analysis of the situation

• vExercise
• of good business judgment in deciding on specific actions

• vGood
• implementation of the corrective actions