Organisational culture with examples

ORGANIZATIONAL CULTURE

By:D Anup KumarDivyanshu PrateekSameer SrivastavaKandala Sai VidyaDarpan SharmaS D S Sri SairamAmol Mahajan

TABLE OF CONTENTS1. INTRODUCTION2. OVERVIEW OF TATA & FORD

MOTORS3. GENERAL CULTURE4. INNOVATION5. ETHICS6. CUSTOMER SERVICES7. SOCIAL RESPONSIBILTY8. BENEFITS9. CONCLUSION

What do you think that separates bitsians from others..???

Yes…it is our culture…that distinguishes us….

ORGANIZATIONAL CULTURE

"...We believe that organizations will ultimately get only as far as their organizational cultures take them."

Definition

The basic pattern of shared assumptions, values, and beliefs considered to be the correct way of thinking about and acting on problems

and opportunities facing the organization.

The Philosophy that guides an Organizations policy towards employees & customers.

ORGANIZATIONAL CULTURE

The culture of an organization represents certain predefined policies which guide the employees and give them a sense of direction at the workplace.

The culture decides the way employees interact at their workplace.

IMPORTANCE OF ORGANIZATIONAL CULTURE

The Culture decides the way employees interact at their workplace.

The organization culture brings all the employees on a common platform.

It is the culture of the organization which extracts the best out of each team member

IMPORTANCE(contd…)

The culture of the workplace also goes a long way in promoting healthy competition at the workplace.

The culture of an organization represents certain predefined policies which guide the employees and give them a sense of direction at the workplace

CULTURE AND PERCEPTION

“One's own culture provides the "lens" through which we view the world; the "logic"... by which we order it; the "grammar" ... by which it makes sense. “

“In other words, culture is central to what we see, how we make sense of what we see, and how we express ourselves.”

CULTURE INFLUENCES PERCEPTION

• "In a world as complex as ours, each of us is shaped by many factors.culture is one of the powerful forces that acts on us.”

• for example : When you shape a round finger, it means ‘zero’ in Indonesia but in Brazil that is rude.

OVERVIEW OF TATA AND FORD MOTORS

Jamsetji Nusserwanji Tata Henry Ford

TATA MOTORS

• Jamsetji Nusserwanji Tata started a private trading firm laying foundation to the TATA group in 1868.

• Tata motors was established in 1945 as a locomotive manufacturing unit.

• It tied up with Daimler-Benz and entered commercial vehicle segment in 1954

MISSION

Tata motors was created with the following objectives:

• To consistently create shareholder value by generating returns.

• To strengthen the Tata brand and create lasting relationships with the customers.

• To create a seamless organization that incubates and promotes innovation, excellence and the Tata core values.

• To be the most admired multi-national Indian car company producing vehicles that people love to buy.

VISION

Following is the vision of Tata motors:

• To be a world class corporate constantly furthering the interest of all its stakeholders.

• To develop Tata motors into a world class Indian car brand for innovative and superior value vehicles.

FORD MOTORS

• Ford motors began with a young man Henry Ford in year 1903.

• Ford motors is a symbol of success for other motor companies in the world.

• Ford owns a small stake in Mazda in Japan and Aston Martin in UK and its former subsidiaries Jaguar and Land rover were sold to Tata motors.

MISSION

Following is the mission statement of ford:

• To become a leader in motor vehicles for products and related services.

• We are a global family with a proud heritage passionately committed to providing personal mobility for people around the world.

• We anticipate consumer need and deliver outstanding products and services that improve people's lives.

VISION

Following is the vision statement of Ford:

• To become the world's leading consumer company for automotive products and services.

• An exciting viable FORD delivering profitable growth for all.

CULTURE – (broader perspective)

FORD MOTORS

• FMC employees of today enjoy a workplace with a more open communication policy than their predecessors that might affect them .

• Employee opinion is valued and is heard through surveys the company sends out .

FORD’S CEO LEADS CULTURAL CHANGE

• CEO of ford is working hard to change work habits of employees.

• Wants managers to think more about customers than their own careers.

• Top priority is to encourage leadership team to admit mistakes, share more information and cooperate across divisions.

CULTURE –(broader perspective)

Tata motors• Tata’s follow a very strong culture giving much importance to

ethics and moral values.• Tata companies also extend social welfare activities to

communities around their industrial units.• Very strong employee relationships.

CEO’s ROLE IN LEADING TRANSFORMATION AT TATA

• The role of CEOs is unique in that they stand at the top of the pyramid and all the other members of the organization take cues from them.

• Building a strong and committed top team.

• Role-modeling desired mind-sets and behavior.

• Relentlessly pursuing goals.

INNOVATIONS

• Tata Motors created several breakthrough products in the past which changed the market dynamics and helped in providing a new customer experience.

• 407 platform in 1980s• Indica in late 1990’s• ACE• NANO

TATA MOTORS ACCOMPLISHMENTS

FORD MOTORS ACCOMPLISHMENTS

• Ford’s use of Assembly lines was a revolutionary method.

• Use of light weight, durable, easily machined, stronger metal like Vanadium.

• Introduced left hand drive configuration.

Value of ethicsPrinciples, values, and beliefs that define what is

right and wrong behavior

VALUE OF ETHICS

TATA’S PERSPECTIVE

Every employee of Tata motors shall exhibit culturally appropriate behaviour in the countries they operate in,and deal on behalf of the company with professionalism, honesty and integrity, while conforming to high moral and ethical standards.

CODE OF ETHICS

• Every employee of a Tata company shall preserve the human rights of every individual and the community, and shall strive to honour commitments.

• Every employee shall be responsible for the implementation of and compliance with the Code in his / her environment. Failure to adhere to the Code could attract severe consequences, including termination of employment.

MANAGING ETHICAL LAPSES ETHICS COUNSELLOR

• Investigators shall derive their authority and access rights from the Ethics Counsellor / Audit Committee when acting within the course and scope of their investigation.

• If an investigation leads that an improper or unethical act has been commited the Ethics Counsellor shall recommend to the management to take disciplinary or corrective actions.

• The Ethics Counsellor shall submit a report to the Chairman of the Audit Committee on a regular basis about all Protected Disclosures referred to him/her since the last report together with the results of investigations, if any.

FORD’S CODE OF BUSINESS ETHICS CONFLICT OF INTEREST

• Relationship of company with third parties.

• Compensation from non company sources.

• Gifts

• Personal use of company assets.

CORPORATE OPPORTUNITIES

• Taking for themselves personally opportunities related to company’s business.

• Using the company’s property,information or positions for

personal gain. CONFIDENTIALITY

Directors should maintain the confidentiality of information entrusted to them by the Company and any other confidential information about the Company that comes to them, from whatever source.

GUIDELINES

• Compliance with laws, rules and regulations; fair dealing.

• Encouraging the reporting of any illegal or unethical behaviour.

• Compliance procedures.

• Stringent action against unethical acts.

CUSTOMER SERVICE

• Customer service is the provision of service to customers before and after a purchase.

“your most unhappy customers are your

greatest source of inspiration.”

TATA’S PERSPECTIVEWith the basic objective of increasing customer satisfaction and loyalty, the Customer Service is always at work to exceed the customer expectations. The customer service department works as a strong link between the company and the customer.

PROVISIONS FOR CUSTOMERS• 24 hours helpline and a breakdown helpline vehicle.• Strong chain of dealers and Tata Authorized Service

Stations(TASS).• Qualified and trained technicians ,service advisors and

customer relationships officer.• Recently Tata Motors has launched “Service Edge” to up

customer service.

FORD’S PERSPECTIVE

• Customer satisfaction is their primary objective.• Keep innovating and serve the customer with best quality in

least price.• Aims at making “Life easy” for their customers by providing

them what they need.

“BUILT FORD TOUGH” “BUILT FOR THE ROAD AHEAD”

CUSTOMER PROVISIONS

• 24x7 roadside assistance.

• Interest free payment.

• Different types of maintenance plans.

• Owner advantage rewards.

PERFORMANCE APPRAISAL• Formal system of review and evaluation of individual or team

task performance.

• The aim of performance appraisal is to determine the gap between the actual performance of the employee and that required or desired by the organization.

Tata’s system of appraisal

• Annual with semiannual updates.• Appraisal is done by immediate supervisors.

Goal Sheet, Target Achievement, Quality of work, Ethics used in

target achievement, Ethics used in target achievement.

Ford’s system of appraisal

• Annual system of appraisal.• Employees are given ratings on the basis of

there performance as A ,B,C.• One year at the C level meant no bonus and

two years could lead to dismissal or demotion.• Forced system is followed.5%of managers

should must get poor grades.

CORPORATESOCIAL RESPONSIBILTY

CSR(FORD MOTORS)

• Ford establishes Greenhouse Gas Reduction Plan.

• Automotive Industry Action Group (AIAG)

• Participation in the fight for ‘labor’ rights of workers across the world.

CSR(contd..)

• Ford will not tolerate any of their suppliers abusing workers, no matter the country.

• Ford is leading the automotive movement for less dependence on foreign resources.

• Ford is the only automaker among the top 25 of the 50 companies demonstrating best practices in corporate social

responsibility.• Ford also was the first in the automotive industry to develop,

implement and report a Code of Basic Working Conditions

TATA MOTORS

• Organize cultural events for colleagues and their family members.

• Participation in ongoing voluntary activities.

• Identify potential areas for employee volunteering and organize training programs.

CSR(TATA MOTORS)

• Tata Motors being the leading automobile industry in India bagged the Golden Peacock Award for the year 2004.

• The rural developmental programmes at Pune started in

1977.

CSR CONT’D

• Jan Parivar Kalyan Sansthan (JPKS) – It was registered in September 2001 for health related issues.

• Samaj Vikar Kendra (SVK) –It worked on infrastructure and safe drinking water, tree plantation programme,entrepreneurship programme.

BENEFITS

Benefits to Employees

• TATA Motors:• Superannuation- • Employees covered by this plan are prospectively entitled to

benefits computed on a basis that ensures that the annual cost of providing the pension benefits would not exceed 15% of salary.

• The monthly pension benefits after retirement range from 0.75% to 2% of the annual basic salary for each year of service.

• Bhavishya Kalyan Yojana(BKY)-• The benefits of the plan accrue to an eligible employee at the

time of death or permanent disablement, while in service, either as a result of an injury or as certified by the appropriate authority.

• Severance Indemnity-• The plan provides for a lump sum payment to all employees

with more than one year of employment equivalent to 30 days’ salary payable for each completed year of service.

• Gratuity-• A defined benefit retirement plan covering eligible

employees.• The plan provides for a lump sum payment to vested

employees at retirement, death while in employment.• Vesting occurs upon completion of five years of service.• Tata Motors and some of its subsidiaries account for the

liability for gratuity benefits payable in the future based on an actuarial valuation.

• Ford Motors Company:• Ford A/Z Plan(For current or retired Ford

employees)-• All regular part-time hourly and salaried employees who are eligible

to receive medical benefits. • Salaried retirees who retired under the General Retirement Plan,

including salaried employees who terminate between the ages of 50-55 and who are eligible to receive certain deferred retirement benefits, are eligible while they are receiving benefits.

• Employees of approved subsidiary companies and approved affiliated companies as eligibility are defined at the time of approval.

• Ford X Plan(For employees of Ford partners)-• An eligible Ford employee or retiree may sponsor up to four

(4) PINs per calendar year to be used towards the purchase/lease of a new vehicle for a friend or neighbor as noted below (see PIN Generation for details):

• Selected individuals sponsored by a Ford Motor Company employee or retiree such as an extended family member, friend or neighbor.

• Sponsors must know the individuals they are sponsoring.

Conclusion

• Culture is an inherent part of an organization and an organization’s success depends greatly on it’s culture.