Understanding & “Managing” Corporate Culture BA 152

Characteristics of Organizations Environment Cultures People Systems Technologies Structures Strategies Goals FIT!

What is Corporate Culture? –

Performance implications? Organizational guidance systems? –Nature of cultures at Enron, Arthur Andersen, Tyco, HealthSouth? Impact of differences on mergers and/or acquisitions? Corporate Culture: Why should we be concerned?

Corporate Culture: What should we examine?

Corporate Culture: Where does it come from? The organization’s founder A strong leader Reactions to a crisis Strategic decisions

Corporate Culture What are the components? Culture’s Content Culture’s Strength

Culture’s Content: UNC Achievement Responsibility Family-like Friendliness Team work Support Family-like Team work Support Friendliness Achievement

CharacteristicsWeak Culture Moderate Culture Strong Culture # of shared assumptions # of employees sharing ordering of assumptions # of employees sharing these assumptions Culture’s Strength

Corporate Culture Why is it important? Impact on performance? – Impact on behavior and control? –

Culture and Performance STRATEGY STRUCTURE PERFORMANCE Environment CULTURE

Environment, Strategy,and Culture Needs of the Environment Flexibility Stability Strategic Focus External Internal Mission Culture Clan Culture Bureaucratic Culture Adaptability/ Entrepreneurial Culture

“Maintaining/Changing” a Corporate Culture Hiring/socializing new employees Removing old employees Communicating cultural values Modeling appropriate behavior Rewarding appropriate behavior

Leadership and Culture “... the only thing of real importance that leaders do is to create and manage culture, and the unique talent of leaders is their ability to work with culture.” (italics in the original) (From Edgar Schein, Organizational Culture and Leadership, 1997)

“Managing” a Corporate Culture Culture is not a simple concept. Culture’s influence is pervasive. Manipulating culture is not any easy task. There is no one best (permanent) culture for an organization.

Next Time Implementing Change at National Industrial Products