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Understanding & “Managing” Corporate Culture

Explore the importance, components, and impact of corporate culture on performance, behavior, and control within organizations. Learn strategies for maintaining or changing corporate culture and the critical role of leadership in shaping culture. Discover how to implement change effectively.

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Understanding & “Managing” Corporate Culture

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  1. Understanding & “Managing”Corporate Culture BA 152

  2. Characteristics of Organizations Goals Environment Strategies FIT! Structures Technologies Systems People Cultures

  3. What is Corporate Culture?

  4. Corporate Culture: Why should we be concerned? • Performance implications? • Organizational guidance systems? • Nature of cultures at Enron, Arthur Andersen, Tyco, HealthSouth? • Impact of differences on mergers and/or acquisitions?

  5. Corporate Culture:What should we examine?

  6. Corporate Culture:Where does it come from? • The organization’s founder • A strong leader • Reactions to a crisis • Strategic decisions

  7. Corporate CultureWhat are the components? • Culture’s Content • Culture’s Strength

  8. Culture’s Content: UNC • Achievement • Responsibility • Family-like • Friendliness • Team work • Support • Family-like • Team work • Support • Friendliness • Friendliness • Achievement

  9. # of shared assumptions # of employees sharing these assumptions # of employees sharing ordering of assumptions Culture’s Strength Characteristics Weak Moderate Strong Culture Culture Culture

  10. Corporate CultureWhy is it important? • Impact on behavior and control? • Impact on performance?

  11. Culture and Performance Environment STRATEGY CULTURE STRUCTURE PERFORMANCE

  12. External Strategic Focus Internal Environment, Strategy,and Culture Needs of the Environment Flexibility Stability Adaptability/ Entrepreneurial Culture Mission Culture Clan Culture Bureaucratic Culture

  13. “Maintaining/Changing”a Corporate Culture • Hiring/socializing new employees • Removing old employees • Communicating cultural values • Modeling appropriate behavior • Rewarding appropriate behavior

  14. Leadership and Culture “. . . the only thing of real importance that leaders do is to create and manage culture, and the unique talent of leaders is their ability to work with culture.” (italics in the original) (From Edgar Schein, Organizational Culture and Leadership, 1997)

  15. “Managing” a CorporateCulture • Culture is not a simple concept. • Culture’s influence is pervasive. • Manipulating culture is not any easy task. • There is no one best (permanent) culture for an organization.

  16. Next Time Implementing Change at National Industrial Products

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