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Organisational culture
- 2. Agenda • Concept of Organizational culture • 2 • 3 • 4 • Competing values Framework and Organizational culture • Introduction- Major culture types • CONTROL (HIERARCHY) Culture • COMPETE (MARKET) Culture • COLLABORATE (CLAN) Culture • CREATE (ADHOCRACY) Culture • Harley Davidson vs. Honda divergence of culture in the organizations • Harley Davidson Culture • Honda Culture • Comparison • Conclusion • Bibilography Organizational culture 2
- 3. This is for sure not good Organizational culture Organizational culture 3
- 4. Competing values Framework and Organizational culture • Developed by professors Cameron & Quinn • Two major polarities of values that determine organization’s effectiveness 1. Internal versus external focus 2. Stability versus flexibility • Key dimension's of culture 1. Dominant characteristics 2. Organizational leadership 3. Management of employees 4. Organization glue 5. Strategic emphases 6. Criteria of success Reference : Organizational culture 4
- 5. Introduction to major Culture Types Reference : Organizational culture 5
- 6. Hierarchy(Control) culture • Internal focus & stability • Formal attitude, structure, procedures • Leader type: coordinator, organizer • Efficiency, reliability, timeliness, consistency • Theory = Efficiency, timeliness and consistency produce effectiveness Reference : Organizational culture 6
- 7. Market(Compete) culture • External focus & stability • Result orientated, competitive • Leader type: hard-driver, demanding • Market share, goal achievement, profitability • Theory = Goal achievement, market share, numbers produce effectiveness Reference : Organizational culture 7
- 8. Clan(Collaborate) culture • Internal focus & flexibility • ‘Family’: friendly • Leader type: father, mentor • Communication, commitment, development • Theory = High commitment and solidarity produce effectiveness Reference : Organizational culture 8
- 9. Adhocracy(Create) culture • External focus & flexibility • Dynamic, entrepreneurial, creative • Leader type: innovator, entrepreneur • Innovation, agility, transformation • Theory = Innovativeness, growth and creativity produce effectiveness Reference : Organizational culture 9
- 10. Harley Davidson vs. Honda divergence of culture in the organizations Harley Davidson Honda Established : Milwaukee, US in 1903 Established : Tokyo, Japan in 1948 Reference : Organizational culture 10
- 11. “Harley Davidson” Culture • Every detail is of the motorcycle construction is prioritized to innovation • Harley and Davidson influenced the culture of their company. hey brought to the competitive spirit of the company by taking part in motorcycle racing • organizational culture was being shaped by their passion and devotion to the bikes. • They set up the habit of hard work, embedded into the organizational culture of the company Reference : Organizational culture 11
- 12. “Honda” Culture • Honda as organization is goal oriented, and doesn’t take the “impossible” for granted. • It is in the culture of the company is to achieve everything by themselves-a philosophy of a proud organization. “There are some technologies that we didn't have...But when you buy technology it remains frozen, a foreign thing that is not part of yourself, and in the end you don't know where to go with it”. • Honda as organization practices personal contact within the organization. • Agressive and Competitive nature of Mr.Honda can be easily seen i nthe organization Reference : Organizational culture 12
- 13. Lets do a small Exercise ! 1. It’s a Exercise about assessing the HFU culture from the student point of view 2. Now Please Choose A/B/C/D from each of the 6 cultural dimensions from the handout. 3. We will plot a simple chart which compares the managements expectation from the HFU’s culture and the opinion from the students . Reference : Organizational culture 13