What

What Is
Is Organizational
Organizational Culture?
Culture?

Characteristics:
Characteristics:
1.1. Innovation
Innovationand
andrisk
risk
taking
taking
2.2. Attention
Attentionto
todetail
detail
3.3. Outcome
Outcomeorientation
orientation
4.4. People
Peopleorientation
orientation
5.5. Team
Teamorientation
orientation
6.6. Aggressiveness
Aggressiveness
7.7. Stability
Stability
Organizational
Organizational Culture
Culture
 Where an Organization’s Culture
Comes From
Characteristics of People
Within Organization

Nature of
Organizational Organizational
Employment
Ethics Culture
Relationship

Design of
Organizational Structure

17-4 ©2005 Prentice Hall

 The Basic Functions of Organizational Culture

Organizational
Culture and its basic
functions

Provides a
Enhances Clarifies
sense of
commitment and
identity for
to the reinforces
members
organization standards
’s of
mission behavior
Creating
Creating aa Customer-Responsive
Customer-Responsive Culture
Culture

Managerial
ManagerialActions:
Actions:
•• Select
Selectnew
newemployees
employeeswith
withpersonality
personalityand
and
attitudes
attitudesconsistent
consistentwith
withhigh
highservice
service
orientation.
orientation.
•• Train
Trainand
andsocialize
socializecurrent
currentemployees
employeestotobe
be
more
morecustomer
customerfocused.
focused.
•• Change
Changeorganizational
organizationalstructure
structureto
togive
give
employees
employeesmore
morecontrol.
control.
•• Empower
Empoweremployees
employeestotomake
makedecision
decisionabout
about
their
theirjobs.
jobs.
Creating
Creating aa Customer-Responsive
Customer-Responsive Culture
Culture

Managerial
ManagerialActions
Actions(cont’d)
(cont’d)::
•• Lead
Leadby
byconveying
conveyingaacustomer-focused
customer-focusedvision
vision
and
anddemonstrating
demonstratingcommitment
commitmenttotocustomers.
customers.
•• Conduct
Conductperformance
performanceappraisals
appraisalsbased
basedon
on
customer-focused
customer-focusedemployee
employeebehaviors.
behaviors.
•• Provide
Provideongoing
ongoingrecognition
recognitionfor
foremployees
employeeswho
who
make
makespecial
specialefforts
effortsto
toplease
pleasecustomers.
customers.
Adaptive versus static Cultures

Adaptive Cultures Static Cultures

Values and norms help Values and norms fail to
organization build motivate or inspire
momentum, grow, and employees
change to achieve Stagnation
goals
Minimal investment in
Investment in employees
employees Little incentive for
Merit rewards improvement

McShane/ Von Glinow 2/e Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved.
Today’s Mergers and Acquisitions: Will They be Tomorrow’s Culture Clashes?

This bank… Merged with… To become…

Citicorp Travelers Citigroup

Bank America Nations Bank BankAmerica

Bank One First Chicago NBD Bank One

First Union CoreStates First Union

Merging Organizational Cultures

Acquired company embraces

Assimilation acquiring firm’s culture

Acquiring firm imposes its culture on

Deculturation unwilling acquired firm

Both cultures combined into a new

Integration composite culture

Merging companies remain

Separation separate with their own culture

McShane/ Von Glinow 2/e Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved.
Culture
Culture as
as aa Liability:
Liability:

1.1. Barrier
Barrierto
tochange
change
2.2. Barrier
Barrierto
todiversity
diversity
3.3. Barrier
Barrierto
toacquisitions
acquisitionsand
and
mergers
mergers
 Ways of Transmitting Organizational
Culture
Formal socialization
practices

Ceremonial
Employees The
Rites
learn organizational
and
through: language
Ceremonies

Signs, symbols, stories

17-12 ©2005 Prentice Hall

AA Socialization
Socialization Model
Model
Stages
Stages in
in the
the Socialization
Socialization Process
Process
 ISO
International Organization for
Standardization
 How Did ISO get started

► Name derived from Greek language

► 1926 - International Federation of the National
Standardizing Associations (ISA)
► 1946 London - delegates from 25 countries decided to
create a new international organization "the object of
which would be to facilitate the international coordination
and unification of industrial standards
► 1947 - ISO began to officially function
► 1987-quality standard was first introduced
ISO 9000 Consists of 5 Documents
► ISO 9000 Quality Management and Quality
Assurance Standards
► ISO 9001 Quality Systems - QA Model for
Design/Development, Production, Installation,
and Service
► ISO 9002 Quality Systems - QA Model for
Production and Installation
► ISO 9003 Quality Systems - QA Model for Final
Inspection and Test
► ISO 9004 Quality Management and Quality
System Elements - Guidelines
 ISO 9001:2000

► which gives the requirements for quality

management systems, is now firmly
established as the globally implemented
standard for providing assurance about the
ability to satisfy quality requirements and to
enhance customer satisfaction in supplier-
customer relationships.
 
 ISO 14001:2004

which gives the requirements for

environmental management systems,
confirms its global relevance for
organizations wishing to operate in an
environmentally sustainable manner.
 Sector Standard or series of
standards
► Automotive ISO/TS 16949:2002
► Education IWA 2:2007
► Food safety ISO 22000:2005
► Information security ISO/IEC 27001:2005
► Health care IWA 1:2005
► Local government IWA 4:2005
► Medical devices ISO 13485:2003
► Petroleum and gas ISO 29001:2003
► Ship recycling ISO 30000
► Supply chain security ISO 28000:2007
 
 Advantages of ISO
► Increased marketability
► Reduced operational expenses
► Better management control
► Increased customer satisfaction
► Improved internal communication
► Improved customer services
 Misconceptions
► Lack of adequate understanding
► Inadequate funding
► Heavy emphasis on documentation
► Length of the process
 :-
► Management Commitment.
► Gap analysis.
► ISO documentation.
► Implementation.
► Self-Assessment & Internal Audit.
► Desktop Audit.
► External Audit.
► ISO Certification.
Steps /Hierarchy of ISO

ISO

External Audit

Desktop audit

Internal audit

Implementation

ISO documentation

Gap analysis

Management commitment
 The Many Facets of Six Sigma


• Metric
• Benchmark
• Vision
• Philosophy
• Method
• Tool
• Symbol
• Goal
• Value
 More About Six Sigma

 Six Sigma Was Developed at Motorola in the

1980’s As a Method to Improve Process Quality.
 It Was First Used to Improve Manufacturing
Process Capability and Then Migrated to Business
Processes Capability
 Companies That Have Deployed Six Sigma: Bank
of America, Motorola, GE, IBM, Kodak and Many
More
 The Basic Premise Is, All Processes Have Variation.
Variation Is the Enemy.
 Six Sigma -- Practical Meaning

99% Good (3.8 Sigma) 99.99966% Good (6 Sigma)

• 20,000 lost articles of mail per • Seven articles lost per hour
hour

• Unsafe drinking water for • One unsafe minute every seven

almost 15 minutes each day months

• 5,000 incorrect surgical

operations per week • 1.7 incorrect operations per week

• Two short or long landings at • One short or long landing every

most major airports each day five years

• 200,000 wrong drug

prescriptions each year • 68 wrong prescriptions per year

• No electricity for almost seven • One hour without electricity

hours each month every 34 years
 Six Sigma as a Goal
Defects
Defectsper

per
Million
Million
opportunities
opportunities

2 308,537
3 66,807

4 6,210
5 233
6 3.4 .

Process
Process Sigma is a statistical unit of measure which
Capability
Capability Reflects process capability.
 • trategic Link to Business Plan defined in Project Selection Process
• Defined Business Impact with Op Ex Champion support
Identify • Structured Brainstorming at all organizational levelsCause and Effect


Problem Diagrams identifying critical factors
• Primary and Secondary Metrics defined and charted
• Multi-Level Pareto Charts to confirm project focus

• Develop a focused Problem Statement and Objective

• Develop a Process Map and/or FMEA
Practical • Develop a Current State Map
Problem • Identify the response variable(s) and how to measure them
• Analyze measurement system capability
• Assess the specification (Is one in place? Is it the right one?)
Six sigma

• Characterize the response, look at the raw data

• Abnormal? Other Clues? Mean or Variance problem?
• Time Observation • Spaghetti Diagram • Takt Time
Problem
• Future State Maps • Percent Loading
Definition
• Standard Work Combination
• Use Graphical Analysis, Multi-Vari, ANOVA and basic
statistical tools to identify the likely families of variability

• Identify the likely X’s

• 5S • Set Up Time Reduction (SMED)
• Material Replenishment Systems
Problem • Level Loading / Line Leveling
Solution • Cell Design • Visual Controls
• Use Design of Experiments to find the critical few X’s
• Move the distribution; Shrink the spread; Confirm the results

• Mistake Proof the process (Poka-

Yoke)
• Tolerance the process
Problem
• Measure the final capability
Control
• Place appropriate process controls on
the critical X’s
• Document the effort and results
• Standard Work • TPM
Based in part on Six Sigma Methodology developed by GE Medical Systems and Six Sigma Academy, Inc. Crane Co. Op. Ex. Methodology Originated by MBBs; D. Braasch, J. Davis, R. Duggins, J. O’Callaghan, R. Underwood, I. Wilson
The key players

Champion. Work with black belts to

identify possible projects
Master Black Belts. Work with and train
new black belts
Black Belts. Committed full time to
completing cost-reduction projects
Green Belts. Trained in basic quality tools

Yellow Belts, employees familiar with

improvement processes
 What is the Six Sigma Philosophy?
 We don’t know what

Science we don’t know.

 If we can’t measure
it, we really don’t
know much about it.
Six Sigma

Art  If we don’t know

much about it, we
can’t control it.

 If we can’t control it,

we are at the mercy
Magic of chance.

Focus
Focus on
on the
the Customer!
Customer!