Professional Documents
Culture Documents
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[ Time : 3 Hours
Maximum : 75 Marks
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3. Perception.
2. Environmental factors.
4. Attitude.
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5. Group cohesiveness.
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6. Secondary groups.
7. Non-financial motivators.
8. OD Interventions.
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share of the soap and detergent market. On the
new product development front, things were no
better. The company was having disappointing
results with its Pringles potato chips and was
suffering financial losses on its Coldsnap Home
made Ice Cream Mix, Wondra hand cream, and
Rely Tampons. These set backs were reflected
on the companys bottom line as pretax earnings
fell for the first time in over thirty years. At the
same time, the firm was having union problems.
Its Kansas City plant voted to unionize, and the
company went through a long fight with worker
representatives in its efforts to change work
practices and improve efficiency.
These developments led P & G to make
changes in its organizational culture. Some of
these were the following:
(i) T h e w o r k t e a m c o n c e p t , i n w h i c h
production and maintenance workers
called technicians are required to master
and use a second skill, was extended
throughout P & Gs operations.
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(ii) The lifetime job tradition that once made
P & Gs workers the envy of their blue
collar counterparts elsewhere gave way to
lay-offs.
(iii) The corporate paternalism of the past
yielded to some hard practicalities as
executives and workers alike were put on
notice that plants that didnt measure up
on productivity, cost, and quality would be
shut down.
(iv) A determined management vigorously
resisted attempts by organized labour to
dictate how P & Gs operations should be
run.
In addition to the above, P & G trimmed its
work force by 5 percent on the plant floor and
4 percent company wide. This was
accomplished through reduced hiring, early
retirement, and, in some cases, lay-offs.
Changing conditions had led P & G to change
its culture.
Questions :
(a) How has the environment affected P & Gs
culture?
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( Case Study )
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18. The New Procter and Gamble ( P & G )
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