Coursework

1. There are eleven ways cultures become embedded in organizations. Explain

carefully.

Eleven Ways Cultures Become Embedded in Organizations

Those who found a business, and the managers who follow them, essentially use a

teaching process to embed the values, beliefs, expectations, behaviors, and business

philosophy that constitute the organization's culture. Among the mechanisms used are the

following.

1. Formal Statements The first way to embed preferred culture is through the use of

formal statements of organizational philosophy, mission, vision, values, as well as

materials used for recruiting, selecting, and socializing employees. Example: Wal-Mart

founder Sam Walton stated that three basic values represented the core of the retailer's

culture: (1) respect for the individual, (2) service to customers, and (3) striving for

excellence.

2. Slogans & Sayings The desirable corporate culture can be expressed in language,

slogans, sayings, and acronyms. Example: Robert Mittelstaedt, Dean of the W.P. Carey

School of Business at Arizona State University, promotes his goal of having a worldclass

university through the slogan "top-of-mind business school." This slogan

encourages instructors to engage in activities that promote quality education and research.

3. Stories, Legends, & Myths A highly valued resource at The Associates is time. To

reinforce the importance of not wasting time, many stories circulate about senior

managers missing planes or being locked out of meetings because they were late.

4. Leader Reactions to Crises How top managers respond to critical incidents and

organizational crises sends a clear cultural message. Example: Canadian Dov Charney

got into the clothing business as a college student, when he would buy thousands of T-

shirts at Kmart, then import them via a U-Haul truck into Canada. Then he dropped out of

college, borrowed $10,000 from his father, and moved to South Carolina to manufacture

clothes just at a time when the rest of the garment industry found it was cheaper to make

clothing overseas. Charney filed for bankruptcy but then moved his company to

California, determined to make it work. "I knew I could do it differently, and I knew I

could turn it around," he said. "Passion" is the key to success. When you believe in what

you're doing, that's the first thing. And you have to be resilient, because people are going

to try to knock you down." Today his company, American Apparel, has over 6,700

employees. And it does something other garment makers have abandoned: it makes all its

clothing in the United States.

5. Role Modelling, Training, & Coaching Triage Consulting Group, a health care
financial consulting firm in California, places a high value on superior performance at

achieving measurable goals. New employees are immediately prepared for this culture

with a 4-day orientation in Triage's culture and methods, followed by 15 training modules

scheduled in 6-week intervals. After less than a year, the best performers are ready to

begin managing their own projects, furthering their career development. Performance

evaluations take place four times a year, further reinforcing the drive for results.

6. Physical Design Intel originally had all its people work in uniform cubicles, consistent

with the value it placed on equality. (Top managers don't have reserved parking spaces

either.) However, the cubicle arrangement conflicted with the value Intel places on

innovation, so the company is experimenting with open-seating arrangements combined

with small conference rooms. Not only are open-seating arrangements thought to

encourage collaboration, they also can reduce noise because employees can see when

their activities are annoying to people nearby. Intel hopes that this environment will

better support creative thinking.

7. Rewards, Titles, Promotions, & Bonuses At Triage Consulting Group, employees at

the same level of their career earn the same pay, but employees are eligible for merit

bonuses, again reinforcing the culture of achievement. The awarding of merit bonuses is
partly based on co-workers' votes for who contributed most to the company's success, and

the employees who received the most votes are recognized each year at the company's

"State of Triage" meeting.

8. Organizational Goals & Performance Criteria Many organizations establish

organizational goals and criteria for recruiting, selecting, developing, promoting,

dismissing, and retiring people, all of which reinforce the desired organizational culture.

Example: PepsiCo sets challenging goals that reinforce a culture aimed at high

performance.

9. Measurable & Controllable Activities There are a number of activities, processes, or

outcomes that an organization's leaders can pay attention to, measure, and control that

can foster a certain culture. Example: ExxonMobil's credo is "efficiency in everything we

do," so that managers make a concerted effort to measure, control, and reward cost

efficiency. As a result, the company is famous for delivering consistent returns,

regardless of whether the price of oil is up or down.

10. Organizational Structure The hierarchical structure found in most traditional

organizations is more likely to reinforce a culture oriented toward control and authority

compared to the flatter organization that eliminates management layers in favor of giving

employees more power. Example: The hierarchical structure of a railroad provides a

much different culture from that of the former "spaghetti" organization of Danish

hearing-aid maker Oticon.

11. Organizational Systems & Procedures Companies are increasingly using electronic

networks to increase collaboration among employees, to increase innovation, quality, and

efficiency. For example, Serena Software Inc., a California-based company with 800

employees located in 29 offices across 14 countries, encouraged its employees to sign up

for Facebook for free and to use the network as a vehicle for getting to know each other.

In contrast to using a public site for networking, Dow Chemical launched its own internal

social network to create relationships among current, past, and temporary employees.