Behavioral Implementation

Corporate Culture
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Culture- differentiates good organizations from bad ones.
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Shared things Shared sayings Shared actions Shared feelings 

COMPOSIOTION
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OF CUTURE:

Beliefs Values

loyalty. ´culture as a strength can also be a weaknessµ  Characteristics ` ` ` ` ` ` of weak culture: Many subcultures Few values & behavioral norms Rare traditions Lack of sense of commitment. identity Politicized environment Hostility to change of strong culture: Explicit set of values & principles Considerable time devoted by the management for communication Values shared widely across the organization  Characteristics ` ` ` .

 Factors ` ` ` contributing for strong culture: A founder or an Influential leader who established desired values Sincere and dedicated commitment to operate business of the organization according to these desired values Genuine concern for the well-being of the organization's stake holders .

Strategy-Culture Relationship Approaches to create strategy supportive culture: 1) 2) 3) 4) To ignore corporate culture To adapt strategy implementation to suit corporate culture To change corporate culture to suit strategy requirements To change strategy to fit the corporate culture .

when they enter into organization. views and opinions. an understanding is to be acquired of how corporate politics works and how the use of power is to be made for effective strategic management. Managerial behavior cannot be purely rational and. so all organizations are political in nature.Corporate Politics And Power ` ` ` All corporate culture include a political component. therefore. prejudices and inclinations. . Organizational members bring with them their likes and dislikes.

2. . Power is defined as ¶the ability to influence others· and corporate politics is ¶the carrying out of activities not prescribed by policies for the purpose of influencing the distribution of advantages within the organization. Managers derive power within an organization from five types of sources. Reward power arises from the ability of managers to reward positive outcomes Coercive power arises from the ability of managers to panelize negative outcomes Legitimate power arises from the ability of managers to use position to influence behavior Referent power arises from the ability of managers to create liking among subordinates due to charisma or personality Expert power arises from the managers· competence.Understanding Politics and Use of Power ` ` 1. 4. knowledge and expertise that is acknowledged by others 5. 3.

` The nature of organization itself creates the conditions for power and politics to manifest. power and politics are means for domination. the manner in which the organization structure is created leads to power and politics. When viewed negatively. They entail self-serving behavior involving deception and dishonesty for achieving individual or group interest. leading to conflict and disharmony in the organization. For instance. The exercise of power and use of politics has two connotations: negative and positive. prestige and ego are involved. each organization more or less is affected by corporate politics. manipulation and subjugation. ` ` ` . promotions. Since material rewards.

power and politics are means for achieving organizational objectives. therefore. Political considerations and use of power. The use of power and politics is the means to resolve conflicts and bridge genuine differences of opinions through a process of negotiations and seeking collaboration. ` . are a part of behavioral implementation by strategists.` When taken positively.

A manager cannot effectively formulate and implement strategy without being perceptive about company politics. Politics and power affect the way a strategy is formulated and implemented.Therefore corporate politics and use of power have a definite role to play in strategy implementation. Political consideration affect which type of objectives take precedence over others and what strategy the firm has to choose.Strategic use of Power and Politics ` ` ` Strategy implementation is basically about change management. .

` Generally. politics and power affect a number of elements. having astute political skill is a definite and even a necessary. Few examples. structure result in the distribution of authority and responsibility and decides how power will be exercised. resource allocation is ultimately a rational. The nature of strategy implementation requires consensus building. Having an understanding of the use of politics and power. managing coalitions and creating commitments. and corporate culture is itself partly. asset for a general manager to have in orchestrating the whole strategic process. there is more politics in implementing strategy than in formulating it. which results in the sharing of scares resources among different organizational units. ¶Indeed. In implementation.political decision. ` ` . strategist can perform the tasks of strategic management better. the outcome of the use of politics and power.

Understand how an organization·s power structure works.` The typical approaches to a strategic use of power and politics may involve one or more of the tactics mentioned below.   .  First of all. who wields real power and influence and who are the individuals and groups whose opinions carry weight and cannot be disregarded. to accept the inevitability of politics being there in the organization. To be sensitive and alert to political signals emanating from different part of the organization.

To lead strategy and not to dictate it. To know when to tread softly and rely on coalition management and consensus-building and when to push through decisions and actions by a selective and judicious use of ¶Machiavellian· methods. To let most negative decisions emerge as a group consensus rather than as a directive from the top To gather support for acceptable proposals and let the unaccepted ideas die a natural death To reward organizational commitment and penalize negative or indifferent attitude To practice principled politics and use openness and honesty to counter unprincipled politics      . being patient till the consensus emerge.

L. Pearce describe India as a nonfacilitative organization context The person-oriented nature of Indian society suggests an emphasis on particularistic rather than universalistic treatment of employees. ` ` ` . more visible than in other culture. which leads to reliance on personal characteristics in hiring. the presence of politics and use of power are. perhaps. promoting and rewarding employees. This may be due to two factors: the nature of Indian society and the higher level of enviousness exhibited by Indian managers J.Corporate Politics and Power in the Indian Context ` In the Indian context.

` ` ` ` Employees feel that competence alone may not enable them to progress in their career. One research study in Indian firms found that employees· actual political behavior was related to feelings of alienation and interpersonal mistrust in the work place. but also intercorporate politics between rival companies. . Another factor could be pervasive enviousness exhibited in Indian organizations. Manager have not only to deal with ² and be affected by ² intracorporate politics. Some may resort to manipulative or ingratiatory behavior.

and technocrats versus bureaucrats. In such condition. public versus private sector. particularly government departments and ministries. multinational versus local firms.` At a higher level. Indian companies are plagued with politics between associations and federations of business and industry. ` . small versus large sector. with whom they have to deal with on a continual basis. strategists have to be aware of not only internal political consideration but also the politics and power play present in other organization.

values are adapted and refined in light of new knowledge and experience. elders and an individual grows. values are imparted by founder entrepreneur or a dominated CEO and these remain in some form for a long time after a person is not there 17 . A value is a view of life and a judgement of what is desirable. manifests in better customer satisfaction Personal values imbibed from parents. teachers. which is very much a part of person·s personality and a groups morale. Within organization. Service mindedness is a value. PERSONAL VALUES AND BUSINESS ETHICS Values Personal values refer to a conception of what an individual or groups regard as desirable.g A benign attitude to labour welfare is a value which may prompt an industrialist to do much more for workers than what labour laws stipulate. e.

but the study of how the business context poses its own unique problems for the moral person who acts as the agent of this system. clarify the social responsibilities of the organization. 18 . and at the other end. At one end. Business ethics In the discipline of management studies. business ethics is The study of how personal moral norms apply to activities and goals of a commercial enterprise. A major task of leadership is to inculcate personal values and impart a sense of business ethics to the organizational members. values and ethics shape the corporate culture and dictate the way how politics and power will be used. Practically. business ethics operates as a system of values and is concerned primarily with the relationship of business goals and techniques to ´specifically human endsµ means viewing the needs and aspirations of individuals not merely as individuals but as a part of society It also means the realization of the personal dignity of human beings. It is not a separate moral standard.

International organizations like world bank and IMF concerned whether aid provided is used for intended purpose and not fritterd away by corrupt Govt officials. Importance of values and ethics Increased awareness around the world about ethical practices in business. Corruption in industry is a major by-product of degradation of values and ethics. which is also related to discretionary powers of regulatory system designed and administered by an unholy alliance of bureaucrats and politicians. Transparency international brings out annual rating of countries on an index of corruption that serves as guideline for foreign investors and international donor agencies. 19 .

practicing management and decision making. that is. fairness into strategic management. respect. It has been percieved as a set of a legally driven codes. The decisions should not only be on the basis of purely economic reasons but also consider values and ethics. ethics and strategy. their ´purity of mindµ as decision makers within an organization matter a lot in strategic management. Values. Business ethics is considered to integrate core values such as honesty. which have to be complied with. in the form of a list of do·s and don·ts for the company executives. There has to be a right connection between values. policy making. 20 . ethics and strategy The intentions of individuals. Business ethics is being identified as a major source of competitive advantage. trust.

. Organizations derive values and ethics from their corporate culture. Corporate culture is the outcome of shared assumption that individual members of the organisations have.g.g. however.Values are personal in nature ( e. offer alternatives to choose from. Values. belief in providing customer satisfaction and being a good paymaster ) while ethics is a generalised value system (e. avoiding discrimination in recruitment and adopting fair business practices ) business ethics can provide the general guidelines based on which strategic management can operate. The right set of values and code of ethics have to be formulated by an organization on the basis of founding philosophy. cherished traditions. norms of ethical behavior and social requirements.

Incorporating the statement of values and code of ethics into employee training and educational programmes . Paying special attention to those parts of the organization that are susceptible to ethically. dealing with Govt and other external agencies. Constant monitoring of compliance by superior staff and top management. Example setting by top management in terms of actions and behaviour that reinforce the values. practices and actions.Inculcating values and ethics  Considering values and ethics in recruitment and selection to ensure compatibility of the character traits of potential employees to the ethical system of the organization. Consistent nurturing of values within the organization through their integration into policies.       22 .sensitive activities such as purchase and procurement. Communication of values and code of ethics through wide publicity and explanation of compliance procedures.

A judicious use of politics and power. if not impossible. One group.Marketing related objectives. quality.production oriented objectives. variety and small lot production CEO should reconcile these divergent values in the light of strategic requirements and environmental considerations.  Modifying values to create consistency Modification of values is frequently required in strategy implementation It is difficult. like culture. to change. say . Reconciling divergent values Strategists have to reconcile divergent values and if necessary. standardization and mass production Another group. A typical case of value divergence may arise while setting objectives and determining the precedence of different objectives. say. 23 . redesigning of corporate culture and making systematic changes in the organization can help to modify the values gradually.

Importance of social responsibility in business ` ` ` ` Strategic planning provides answer to what organization ´might & can doµ Personal values determines what organization ´wants to doµ Social responsibility relates to what organization ´ ought to doµ So social responsibility should be made explicit and meaningful .

Differing views on social responsibilty View 1 ` View 2 ` ` ` Function of business is just to achieve economic efficiency and maximize profit Social functions should be left to institutions of society ` Business organizations are part of society Have to serve societal interests and not just profit Allocate resources for this purpose .

Nehruvian model = state driven policies 3. Freeman model = stake holders responsiveness ` . Milton Friedman model = owner objectives 4.Indian context There are four models of CSR operating in India : 1. Gandhian model = voluntary commitment 2.

3. Market based pressures and incentives Civil society pressures Regulatory environment .Some drivers of CSR in India 1. 2.

Social responsiveness and strategic management ` ` ` Generally top management decides on major decisions taken in CSR So alignment of social responsiveness with strategic management is necessary Hence role of strategists will be affected by social responsiveness .