Management Organization 5

8/10/2019 Management Organization 5

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Organizational culture

Organizational culture is the behavior of humans who are part of an organizationand the meanings that the people attach to their actions. Culture includes the

organization values, visions, norms, working language, systems, symbols, beliefsand habits. It is also the pattern of such collective behaviors and assumptionsthat are taught to new organizational members as a way of perceiving, and eventhinking and feeling. Organizational culture affects the way people and groupsinteract with each other, with clients, and with stakeholders. Ravasi and Schultzstate that organizational culture is a set of shared mental assumptions that guideinterpretation and action in organizations by defining appropriate behavior forvarious situations. t the same time although a company may have their !ownuni"ue culture!, in larger organizations, there is a diverse and sometimesconflicting cultures that co#e$ist due to different characteristics of themanagement team. %he organizational culture may also have negative and

positive aspects.

Schein , &eal ' (ennedy (otter and many others state that organizations oftenhave very differing cultures as well as subcultures. ccording to )eedleorganizational culture represents the collective values, beliefs and principles oforganizational members and is a product of such factors as history, product,market, technology, and strategy, type of employees, management style, andnational cultures and so on. Corporate culture on the other hand refers to thosecultures deliberately created by management to achieve specific strategic ends.Organizational culture refers to culturein any type of organization be it school,university, not#for#profit groups, government agencies or business entities. In

business, terms such as corporate culture and company culture aresometimes used to refer to a similar concept,. lthough the new idea that theterm became known in businesses in the late *+s and early +s is widespread,in fact corporate culture was already used by managers and addressed insociology, cultural studies and organizational theory at the beginning of the *+s.%he idea about the culture and overall environment and characteristics oforganization, in fact, was first and similarly approached with the notion oforganizational climatein the -+s and +s, and the terms now are somewhatoverlapping.

Part of or equivalent to

As a part of organization

/hen one views organizational culture as a variable, one takes on theperspective that culture is something possessed by an organization. Culture is

0ust one entity that adds to the organization as a whole. Culture can bemanipulated and altered depending on leadership and members. %hisperspective believes in a strong culture where everyone buys into it

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The same as the organization

Culture as root metaphor sees the organization as its culture, created throughcommunication and symbols, or competing metaphors. Culture is basic withpersonal e$perience producing a variety of perspectives. %he organizational

communication perspective on culture views culture in three different ways1

%raditionalism1 views culture through ob0ective things such as stories,rituals, and symbols

Interpretivism1 views culture through a network of shared meanings

2organization members sharing sub0ective meanings3 Critical#interpretivism1 views culture through a network of shared

meanings as well as the power struggles created by a similar network ofcompeting

Types

Several methods have been used to classify organizational culture. /hile there isno single !type! of organizational culture and organizational cultures vary widelyfrom one organization to the ne$t, commonalities do e$ist and some researchershave developed models to describe different indicators of organizational cultures.Some are described below1

Hofstede

4ofstede25*+3 looked for differences between over 5-+ +++ I67employees in8+ different countries and three regions of the world, in an attempt to find aspects

of culture that might influence business behavior. 4e suggested things aboutcultural differences e$isting in regions and nations, and the importance ofinternational awareness and multiculturalism for the own cultural introspection.Cultural differences reflect differences in thinking and social action, and even in!mental programs!, a term 4ofstede uses for predictable behaviour. 4ofstederelates culture to ethnic and regional groups, but also organizations, profession,family, to society and subcultural groups, national political systems andlegislation, etc. 4ofstede suggests the need for changing !mental programs! withchanging behaviour first, which will lead to value change. %hough certain groupslike 9ews, :ypsies and 6as"ues have maintained their identity through centurieswithout changing. 4ofstede demonstrated that there are national and regional

cultural groupings that affect the behavior of organizations and identified fourdimensions of culture2later fivein his study of national cultures1

;ower distance 27auk 7ulder, 53 # &ifferent societies find different solutionson social ine"uality. lthough invisible, inside organizations power ine"uality ofthe !boss#subordinates relationships! is functional and according to 4ofstedereflects the way ine"uality is addressed in the society. !ccording to 7ulder


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distance between themselves and their bosses and bosses will try to maintain orenlarge it!, but there is also a degree to which a society e$pects there to bedifferences in the levels of power. high score suggests that there is ane$pectation that some individuals wield larger amounts of power than others. low score reflects the view that all people should have e"ual rights. =ncertainty

avoidance is the coping with uncertainty about the future. Society copes with itwith technology, lawand religion 2however different societies have different waysof addressing it3, and according to 4ofstede organizations deal with it withtechnology, law and rituals or in two ways # rational and non#rational, whererituals being the non#rational. 4ofstede listed as rituals the memos and reports,some parts of the accounting system, large part of the planning and controlsystems, and the nomination of e$perts. Individualism vs. collectivism #disharmony of interests on personal and collective goals 2;arsons and Shils,5853. 4ofstede brings that societyCollectivismwill be reflected by the employee inside the organization. Collectivist societies willhave more emotional dependence of members on their organizations, when in

e"uilibrium # organization is e$pected to show responsibility on members.?$treme individualism is seen in the =S, in fact in =S collectivism is seen as!bad!. Other cultures and societies than the =S will therefore seek to resolvesocial and organizational problems in ways different from the merican one.4ofstede says that a capitalist market economy fosters individualism andcompetition and depends on it but individualism is also related to thedevelopment of middle class. Research indicates that some people and culturesmight have both high individualism and high collectivism, for e$ample, andsomeone who highly values duty to his or her group does not necessarily give alow priority to personal freedom and self#sufficiency. 7asculinityvs. femininity #reflect whether certain society is predominantly male or female in terms of

cultural values, gender roles and power relations. @ong# Aersus Short#%ermOrientation which he describes as !%he long#term orientation dimension can beinterpreted as dealing with societyBs search for virtue. Societies with a short#termorientation generally have a strong concern with establishing the absolute %ruth.%hey are normative in their thinking. %hey e$hibit great respect for traditions, arelatively small propensity to save for the future, and a focus on achieving "uickresults. In societies with a long#term orientation, people believe that truthdepends very much on situation, conte$t and time. %hey show an ability to adapttraditions to changed conditions, a strong propensity to save and invest,thriftiness, and perseverance in achieving results.!

O'Reilly, Chatman, and Caldell!

%wo common models and their associated measurement tools have beendeveloped by OBReilly et al. and &enison. OBReilly, Chatman ' Caldwell 2553developed a model based on the belief that cultures can be distinguished byvalues that are reinforced within organizations %heir Organizational Cultural;rofile 2OC;3 is a self reporting tool which makes distinctions according sevencategories # Innovation, Stability, Respect for ;eople, Outcome Orientation,

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ttention to &etail, %eam Orientation, and ggressiveness. %he model is alsosuited to measure how organizational culture effects organizational performance,as it measures most efficient persons suited in an organization and as suchorganizations can be termed as good organizational culture. ?mployee valuesare measured against organizational values to predict employee intentions to

stay, and predict turnover. %his is done through instrument like OrganizationalCulture ;rofile 2OC;3 to measure employee commitment. &aniel &enisonBsmodel 25+3 asserts that organizational culture can be described by four generaldimensions 7ission, daptability, Involvement and Consistency. ?ach of thesegeneral dimensions is further described by the following three sub#dimensions1

7ission # Strategic &irection and Intent, :oals and Ob0ectives and Aision

daptability # Creating Change, Customer Docus and Organizational@earning

Involvement # ?mpowerment, %eam Orientation and Capability

&evelopment

Consistency # Core Aalues, greement, Coordination>Integration

&enisonBs model also allows cultures to be described broadly as e$ternally orinternally focused as well as fle$ible versus stable. %he model has been typicallyused to diagnose cultural problems in organizations.

"eal and #ennedy!

&eal and (ennedy defined organizational culture as the way things get donearound here. &eal and (ennedy created a model of culture that is based on Edifferent types of organizations. %hey each focus on how "uickly the organization

receives feedback, the way members are rewarded, and the level of risks taken1

$or%&hard, play&hard culture1 %his has rapid feedback>reward and low riskresulting in1 Stress coming from "uantity of work rather than uncertainty. 4igh#speed action leading to high#speed recreation. ?$amples1 Restaurants, softwarecompanies.

Tough&guy macho culture1 %his has rapid feedback>reward and high risk,resulting in the following1 Stress coming from high risk and potential loss>gain ofreward. Docus on the present rather than the longer#term future. ?$amples1police, surgeons, sports.

Process culture1 %his has slow feedback>reward and low risk, resulting in thefollowing1 @ow stress, plodding work, comfort and security. Stress that comesfrom internal politics and stupidity of the system. &evelopment of bureaucraciesand other ways of maintaining the status "uo. Docus on security of the past andof the future. ?$amples1 banks, insurance companies.

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et&the&company culture1 %his has slow feedback>reward and high risk,resulting in the following1 Stress coming from high risk and delay before knowingif actions have paid off. %he long view is taken, but then much work is put intomaking sure things happen as planned. ?$amples1 aircraft manufacturers, oilcompanies.

(dgar )chein

ccording to )chein culture is the most difficult organizational attribute tochange, outlasting organizational products, services, founders and leadershipand all other physical attributes of the organization. 4is organizational modelilluminates culture from the standpoint of the o*server, described by threecognitivelevels of organizational culture. t the first and most cursory level ofSchein


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attributes over time, thus reinforcing the invisibility of their e$istence. Surveysand casual interviews with organizational members cannot draw out theseattributesFrather much more in#depth means is re"uired to first identify thenunderstand organizational culture at this level. )otably, culture at this level is theunderlying and driving element often missed by organizational behaviorists.

=sing Schein


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)tories and myths1 build up about people and events, and convey a messageabout what is valued within the organization.

%hese elements may overlap. ;ower structures may depend on control systems,which may e$ploit the very rituals that generate stories which may not be true.

ccording to Schein the two main reasons why cultures develop in organizationsis due to e$ternal adaptation and internal integration. ?$ternal adaptation reflectsan evolutionary approach to organizational culture and suggests that culturesdevelop and persist because they help an organization to survive and flourish. Ifthe culture is valuable, then it holds the potential for generating sustainedcompetitive advantages. dditionally, internal integration is an important functionsince social structures are re"uired for organizations to e$ist. Organizationalpractices are learned through socialization at the workplace. /ork environmentsreinforce culture on a daily basis by encouraging employees to e$ercise culturalvalues. Organizational culture is shaped by multiple factors, including thefollowing1

?$ternal environment

Industry

Size and nature of the organizationBs workforce

%echnologies the organization uses

%he organizationBs history and ownership

Communicative ndicators

%here are many different types of communication that contribute in creating anorganizational culture1

7etaphors such as comparing an organization to a machine or a familyreveal employeesB shared meanings of e$periences at the organization.

Stories can provide e$amples for employees of how to or not to act in

certain situations. Rites and ceremonies combine stories, metaphors, and symbols into one.

Several different kinds of rites that affect organizational culture1o Rites of passage1 employees move into new roleso Rites of degradation1 employees have power taken away from them

o Rites of enhancement1 public recognition for an employeeBsaccomplishments

o Rites of renewal1 improve e$isting social structureso Rites of conflict reduction1 resolve arguments between certain

members or groupso Rites of integration1 reawaken feelings of membership in the

organization Refle$ive comments are e$planations, 0ustifications, and criticisms of our

own actions. %his includes1o ;lans1 comments about anticipated actions

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o Commentaries1 comments about action in the present

o ccounts1 comments about an action or event that has already

occurred

Such comments reveal interpretive meanings held by the speaker as well

as the social rules they follow. Dantasy %hemes are common creative interpretations of events that reflect

beliefs, values, and goals of the organization. %hey lead to rhetoricalvisions, or views of the organization and its environment held byorganization members.

)chemata

Schemata 2plural of schema3 are knowledge structures a person forms from paste$periences, allowing the person to respond to similar events more efficiently inthe future by guiding the processing of information. person


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weak culture where there is little alignment with organizational values, andcontrol must be e$ercised through e$tensive procedures and bureaucracy.Research shows that organizations that foster strong cultures have clear valuesthat give employees a reason to embrace the culture. !strong! culture may beespecially beneficial to firms operating in the service sector since members of

these organizations are responsible for delivering the service and for evaluationsimportant constituents make about firms. Research indicates that organizationsmay derive the following benefits from developing strong and productive cultures1

6etter aligning the company towards achieving its vision, mission, andgoals

4igh employee motivationand loyalty

Increased team cohesiveness among the company


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?mployee pride and enthusiasm for the organization and the work

performed ?"ual opportunity for each employee to realize their full potential within the

company Strong communication with all employees regarding policies and company

issues Strong company leaders with a strong sense of direction and purpose

bility to compete in industry innovation and customer service, as well asprice

@ower than average turnover rates 2perpetuated by a healthy culture3

Investment in learning, training, and employee knowledge

dditionally, performance oriented cultures have been shown to possessstatistically better financial growth. Such cultures possess high employeeinvolvement, strong internal communications and an acceptance andencouragement of a healthy level of risk#taking in order to achieve innovation.

dditionally, organizational cultures that e$plicitly emphasize factors related tothe demands placed on them by industry technology and growth will be betterperformers in their industries. ccording to (otter and 4eskett organizations withadaptive cultures perform much better than organizations with unadaptivecultures. n adaptive culture translates into organizational successJ it ischaracterized by managers paying close attention to all of their constituencies,especially customers, initiating change when needed, and taking risks. nunadaptive culture can significantly reduce a firmoperational options.

Charles Handy

Charles 4andy 25-3, popularized Roger 4arrison 25H3 with linkingorganizational structure to organizational culture. %he described four types ofculture are1K5*L

Poer culture1 concentrates power among a small group or a central figure andits control is radiating from its center like a web. ;ower cultures need only a fewrules and little bureaucracybut swift in decisions can ensue.

Role culture1 authorities are delegated as such within a highly defined structure.%hese organizations form hierarchical bureaucracies, where power derives from

the personal position and rarely from an e$pert power. Control is made byprocedures 2which are highly valued3, strict roles descriptions and authoritydefinitions. %hese organizations have consistent systems and are verypredictable. %his culture is often represented by a !Roman 6uilding! havingpillars. %hese pillars represent the functional departments.

Tas% culture1 teams are formed to solve particular problems. ;ower is derivedfrom the team with the e$pertise to e$ecute against a task. %his culture uses a

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small team approach, where people are highly skilled and specialized in theirown area of e$pertise. dditionally, these cultures often feature the multiplereporting lines seen in a matri$ structure.

Person culture1 formed where all individuals believe themselves superior to the

organization. It can become difficult for such organizations to continue to operate,since the concept of an organization suggests that a group of like#mindedindividuals pursue organizational goals. 4owever some professional partnershipsoperate well as person cultures, because each partner brings a particulare$pertise and clientele to the firm.

#im Cameron and Ro*ert /uinn

(im Cameron and Robert Muinn 253 made a research on organizationaleffectiveness and success. 6ased on the Competing Aalues Dramework, theydeveloped the Organizational Culture ssessment Instrument that distinguishes

four culture types. Competing values produce polarities like fle$ibility vs. stabilityand internal vs. e$ternal focus # these two polarities were found to be mostimportant in defining organizational success. %he polarities construct a "uadrantwith four types of culture1

Clan culture 2internal focus and fle$ible3 # friendly workplace where

leaders act like father figures. dhocracyculture 2e$ternal focus and fle$ible3 # dynamic workplace with

leaders that stimulate innovation. 7arket culture 2e$ternal focus and controlled3 # competitive workplace

with leaders like hard drivers

4ierarchy culture 2internal focus and controlled3 # structured andformalized workplace where leaders act like coordinators.

Cameron ' Muinn designated si$ key aspects that will form organizational culturewhich can be assessed in the Organizational Culture ssessment Instrument2OCI3 thus producing a mi$ of the four archetypes of culture. ?ach organizationor team will have its uni"ue mi$ of culture types. Clan cultures are most stronglyassociated with positive employee attitudes and product and service "uality,whereas market cultures are most strongly related with innovationand financialeffectiveness criteria. %he primary belief in market cultures is that clear goals andcontingent rewards motivate employees to aggressively perform and meet

stakeholders< e$pectationsJ a core belief in clan cultures is that the organizationBstrust in and commitment to employees facilitates open communication andemployee involvement. %hese differing results suggest that it is important fore$ecutive leaders to consider the match between strategic initiatives andorganizational culture when determining how to embed a culture that producescompetitive advantage. 6y assessing the current organizational culture as well asthe preferred situation, the gap and direction to change can be made visible as afirst step to changing organizational culture.

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Ro*ert A0 Coo%e

Robert . Cooke defines culture as the behaviors that members believe arere"uired to fit in and meet e$pectations within their organization. %heOrganizational Culture Inventory measures twelve behavioral norms that are

grouped into three general types of cultures1

Constructive cultures, in which members are encouraged to interact withpeople and approach tasks in ways that help them meet their higher#ordersatisfaction needs.

;assive>defensive cultures, in which members believe they must interactwith people in ways that will not threaten their own security.

ggressive>defensive cultures, in which members are e$pected to

approach tasks in forceful ways to protect their status and security.

Constructive cultures

In constructive cultures people are encouraged to be in communication with theirco#workers, and work as teams, rather than only as individuals. In positionswhere people do a comple$ 0ob, rather than something simple like a mechanicone, this culture is efficient.

Achievement1 completing a task successfully, typically by effort, courage, or skill2pursue a standard of e$cellence3 2e$plore alternatives before acting3 # 6ased onthe need to attain high#"uality results on challenging pro0ects, the belief thatoutcomes are linked to one


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Organizations with constructive cultures encourage members to work to their fullpotential, resulting in high levels of motivation, satisfaction, teamwork, service"uality, and sales growth. Constructive norms are evident in environments where"uality is valued over "uantity, creativity is valued over conformity, cooperation isbelieved to lead to better results than competition, and effectiveness is 0udged at

the system level rather than the component level. %hese types of cultural normsare consistent with 2and supportive of3 the ob0ectives behind empowerment, total"uality management, transformational leadership, continuous improvement, re#engineering, and learning organizations.

Passive.defensive cultures

)orms that reflect e$pectations for members to interact with people in ways thatwill not threaten their own security are in the ;assive>&efensive Cluster. %he four;assive>&efensive cultural norms are1

pproval Conventional

&ependent

voidance

In organizations with ;assive>&efensive cultures, members feel pressured tothink and behave in ways that are inconsistent with the way they believe theyshould in order to be effective. ;eople are e$pected to please others 2particularlysuperiors3 and avoid interpersonal conflict. Rules, procedures, and orders aremore important than personal beliefs, ideas, and 0udgment. ;assive>&efensivecultures e$perience a lot of unresolved conflict and turnover, and organizational

members report lower levels of motivation and satisfaction.

Aggressive.defensive cultures

%his style is characterized with more emphasis on task than people. 6ecause ofthe very nature of this style, people tend to focus on their own individual needs atthe e$pense of the success of the group. %he aggressive>defensive style is verystressful, and people using this style tend to make decisions based on status asopposed to e$pertise.

5. Oppositional# %his cultural norm is based on the idea that a need for

security that takes the form of being very critical and cynical at times.;eople who use this style are more likely to "uestion others workJhowever, asking those tough "uestion often leads to a better product.)onetheless, those who use this style may be overly#critical towardothers, using irrelevant or trivial flaws to put others down.

H. Poer# %his cultural norm is based on the idea that there is a need forprestige and influence. %hose who use this style often e"uate their own

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self#worth with controlling others. %hose who use this style have atendency to dictate others opposing to guiding othersB actions.

. Competitive# %his cultural norm is based on the idea of a need to protectoneBs status. %hose who use this style protect their own status bycomparing themselves to other individuals and outperforming them. %hose

who use this style are seekers of appraisal and recognition from others.E. Perfectionistic# %his cultural norm is based on the need to attain flawlessresults. %hose who often use this style e"uate their self#worth with theattainment of e$tremely high standards. %hose who often use this style arealways focused on details and place e$cessive demands on themselvesand others.

Organizations with aggressive>defensive cultures encourage or re"uire membersto appear competent, controlled, and superior. 7embers who seek assistance,admit shortcomings, or concede their position are viewed as incompetent orweak. %hese organizations emphasize finding errors, weeding out !mistakes! and

encouraging members to compete against each other rather than competitors.%he short#term gains associated with these strategies are often at the e$pense oflong#term growth.

(ntrepreneurial organizational culture

Stephen 7c:uire 2H++3 defined and validated a model of organizational culturethat predicts revenue from new sources. n ?ntrepreneurial OrganizationalCulture 2?OC3 is a system of shared values, beliefs and norms of members of anorganization, including valuing creativity and tolerance of creative people,believing that innovating and seizing market opportunities are appropriate

behaviors to deal with problems of survival and prosperity, environmentaluncertainty, and competitors< threats, and e$pecting organizational members tobehave accordingly.

(lements

People and empoerment focused

Aalue creation through innovation and change

ttention to the basics

4ands#on management

&oing the right thing

Dreedom to grow and to fail Commitment and personal responsibility ?mphasis on the future

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Tri*al culture

&avid @ogan and coauthors have proposed in their book %ribal @eadership thatorganizational cultures change in stages, based on an analysis of human groupsand tribal cultures. %hey identify five basic stages1

5. @ife sucks 2a subsystem severed from other functional systems like tribes,gangs and prisonFH percent of population3J

H. 7y life sucks 2I am stuck in the &umb 7otor Aehicle line and can


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2ultiplicity

ibao Nhang 2H++3 carried out an empirical study of culture emergence in theSino#/estern international cross#cultural management 2S/#ICC73 conte$t inChina. Dield data were collected by interviewing /estern e$patriates and

Chinese professionals working in this conte$t, supplemented by non#participantobservation and documentary data. %he data were then analyzed in groundedfashion to formulate theme#based substantive theories and a formal theory. %hema0or finding of this study is that human cognition contains three components, orthree broad types of !cultural rules of behavior!, namely, Aalues, ?$pectations,and d 4oc Rules, each of which has a mutually conditioning relationship withbehavior. %he three cognitive components are different in terms of the scope andduration of their mutual shaping with behavior. Aalues are universal and enduringrules of behaviorJ ?$pectations, on the other hand, are conte$t#specificbehavioral rulesJ while d 4oc Rules are improvised rules of behavior that thehuman mind devises contingent upon a particular occasion. Durthermore, they

need not be consistent, and fre"uently are not, among themselves.7etaphorically, they can be compared to a multi#carriage train, which allows forthe relative lateral movements by individual carriages so as to accommodatebumps and turns in the tracks. In fact, they provide a !shock#absorbermechanism!, so to speak, which enables individuals in S/#ICC7 conte$ts tocope with conflicts in cultural practices and values, and to accommodate andadapt themselves to cultural conte$ts where people from different nationalcultural backgrounds work together over e$tended time. It also provides apowerful framework which e$plains how interactions by individuals in S/#ICC7conte$ts give rise to emerging hybrid cultural practices characterized by bothstability and change.

mpacts

Research suggests that numerous outcomes have been associated eitherdirectly or indirectly with organizational culture. healthy and robustorganizational culture may provide various benefits, including the following1

Competitive edge derived from innovation and customer service

Consistent, efficient employee performance

%eam cohesiveness

4igh employee morale

Strong company alignment towards goal achievement

lthough little empirical research e$ists to support the link betweenorganizational culture and organizational performance, there is little doubt amonge$perts that this relationship e$ists. Organizational culture can be a factor in thesurvival or failure of an organization # although this is difficult to proveconsidering the necessary longitudinal analyses are hardly feasible. %hesustained superior performance of firms like I67, 4ewlett#;ackard, ;rocter '

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:amble, and 7c&onald


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employee behavior, make improvements to the company, refocus the companyob0ectives and>or rescale the organization, provide better customer service,and>or achieve specific company goals and results. Culture change is impactedby a number of elements, including the e$ternal environment and industrycompetitors, change in industry standards, technology changes, the size and

nature of the workforce, and the organizationBs history and management. %hereare a number of methodologies specifically dedicated to organizational culturechange such as ;eter SengeBs Difth &iscipline. %hese are also a variety ofpsychological approaches that have been developed into a system for specificoutcomes such as the Difth &isciplineBs !learning organization! or &irectiveCommunicationBs !corporate culture evolution.! Ideas and strategies, on the otherhand, seem to vary according to particular influences that affect culture.

6urman and ?vans 2H++*3 argue that it is < leadership


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current organizational does not need radical changes, but 0ust a fewad0ustments. 2See for more1 &eal ' (ennedy, 5*HJ KLSathe, 5*J SchallJ5*J /eick, 5*8J &i%omaso, 5*3. %his process may also includecreating committee, employee task forces, value managers, or similar.Change agents are key in the process and key communicators of the new

values. %hey should possess courage, fle$ibility, e$cellent interpersonalskills, knowledge of the company, and patience. s 7cCune 27ay 53puts it, these individual should be catalysts, not dictators.

E. 7odify the organization to support organizational change. %he fourth stepis to modify the organization to support organizational change. %hisincludes identifying what current systems, policies, procedures and rulesneed to be changed in order to align with the new values and desiredculture. %his may include a change to accountability systems,compensation, benefits and reward structures, and recruitment andretention programs to better align with the new values and to send a clearmessage to employees that the old system and culture are in the past.

8. Select and socialize newcomers and terminate deviants 2stage ' * of(otter, 58, p. H3. way to implement a culture is to connect it toorganizational membership, people can be selected and terminate interms of their fit with the new culture 2Cummings ' /orley, H++E, p. E53.?ncouraging employee motivation and loyalty to the company is key andwill also result in a healthy culture. %he company and change managersshould be able to articulate the connections between the desired behaviorand how it will impact and improve the companyBs success, to furtherencourage buy#in in the change process. %raining should be provided toall employees to understand the new processes, e$pectations andsystems.

-. &evelop ethical and legal sensitivity. Changes in culture can lead totensions between organizational and individual interests, which can resultin ethical and legal problems for practitioners. %his is particularly relevantfor changes in employee integrity, control, e"uitable treatment and 0obsecurity 2Cummings ' /orley, H++E, p. E53. It is also beneficial, as part ofthe change process, to include an evaluation process, conductedperiodically to monitor the change progress and identify areas that needfurther development. %his step will also identify obstacles of change andresistant employees and to acknowledge and reward employeeimprovement, which will also encourage continued change andevolvement. It may also be helpful and necessary to incorporate newchange managers to refresh the process. Outside consultants may also beuseful in facilitating the change process and providing employee training.Change of culture in the organizations is very important and inevitable.Culture innovations is bound to be because it entails introducingsomething new and substantially different from what prevails in e$istingcultures. Cultural innovation is bound to be more difficult than culturalmaintenance. ;eople often resist changes hence it is the duty of themanagement to convince people that likely gain will outweigh the losses.

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http://en.wikipedia.org/wiki/Organizational_culture#cite_note-dealkennedy-3http://en.wikipedia.org/wiki/Organizational_culture#cite_note-dealkennedy-3http://en.wikipedia.org/wiki/Organizational_culture#cite_note-dealkennedy-3


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6esides institutionalization, deification is another process that tends tooccur in strongly developed organizational cultures. %he organization itselfmay come to be regarded as precious in itself, as a source of pride, and insome sense uni"ue. Organizational members begin to feel a strong bondwith it that transcends material returns given by the organization, and they

begin to identify with it. %he organization turns into a sort of clan.

2ergers, organizational culture, and cultural leadership

One of the biggest obstacles in the way of the merging of two organizations isorganizational culture. ?ach organization has its own uni"ue culture and mostoften, when brought together, these cultures clash. /hen mergers fail employeespoint to issues such as identity, communication problems, human resourcesproblems, ego clashes, and inter#group conflicts, which all fall under the categoryof !cultural differences!. One way to combat such difficulties is through culturalleadership. Organizational leaders must also be cultural leaders and help

facilitate the change from the two old cultures into the one new culture. %his isdone through cultural innovation followed by cultural maintenance.

Cultural innovation includes1o Creating a new culture1 recognizing past cultural differences and

setting realistic e$pectations for changeo Changing the culture1 weakening and replacing the old cultures

Cultural maintenance includes1

o Integrating the new culture1 reconciling the differences between theold cultures and the new one

o ?mbodying the new culture1 ?stablishing, affirming, and keeping

the new culture

Corporate su*cultures

Corporate culture is the total sum of the values, customs, traditions, andmeanings that make a company uni"ue. Corporate culture is often called !thecharacter of an organization!, since it embodies the vision of the company


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Critical vies

Criticism of the usage of the term by managers began already in its emergencein the early *+s. 7ost of the criticism comes from the writers in criticalmanagement studieswho for e$ample e$press skepticism about the functionalist

and unitarist views about culture that are put forward by mainstreammanagement writers. %hey stress the ways in which these cultural assumptionscan stifle dissent management and reproduce propaganda and ideology. %heysuggest that organizations do not have a single culture and cultural engineeringmay not reflect the interests of all stakeholders within an organization. ;arker2H+++3 has suggested that many of the assumptions of those putting forwardtheories of organizational culture are not new. %hey reflect a long#standingtension between cultural and structural 2or informal and formal3 versions of whatorganizations are. Durther, it is reasonable to suggest that comple$ organizationsmight have many cultures, and that such sub#cultures might overlap andcontradict each other. %he neat typologies of cultural forms found in te$tbooks

rarely acknowledge such comple$ities, or the various economic contradictionsthat e$ist in capitalist organizations. mong the strongest and widely recognizedwriters on corporate culture with a long list of articles on leadership, culture,gender and their intersection is @inda Smircich, as a part of the of criticalmanagement studies, she criticises theories that attempt to categorize or


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CA)( )T3"4

$orld Call Telecommunications 5roup

Corporate Profile&&/orld call %elecommunications :roup began life in 58

when Dirst Capital Securities Corporation @td started incubating /orld call

;ayphones, now /orld call Communications @imited. %he ne$t few years were

spent in e$panding payphone network across ;akistan, creating new businesses

and drawing investor attention to the value of /orld call businesses. nd now,

there are 5E5,+++ payphones all over the country and /orld call holds the

largest share with HH Q of the market. %oday, they are number one, and pioneers

in franchised payphones In 5* ;repaid Calling Cards were launched by /orldcall phone cards under the brand name !4ello!. In the private sector 4?@@O is

number one and again the first.

In the following year the group established dial#up internet services through

/orld call &ot Com. In 5 /orld call %elecom @anka established the groupBs

first overseas presence when payphone operations were established in Sri

@anka. %oday, they operate over 5H++ payphones in Sri @anka. In H+++ /orld call

6roadband established a 4ybrid Diber Coa$ial 24DC3 network in @ahore by the

name of !7agic!, thus becoming the first 7ulti service operator in the country,

providing cable television and cable internet. In Cable %elevision in @ahore, /orld

call was the last entrant and by far the largest. In H++ they launched a state of

the art 4DC network operation in (arachi branded /orld call 6roadband @imited.

;hase 5 of the pro0ect, covering &efense and Clifton is complete and over the

ne$t eighteen months the pro0ect envisions a fiber network all over (arachi.

+uture (6pansion and nitiatives&&/orld call plans an aggressive e$pansion in

all its e$isting businesses. Internationally /orld call is evaluating other

opportunities in infant regional markets with similar profiles like 6angladesh, Sri

@anka etc. as well as international markets that have become telecom hubs for

these regions like =(, =S, 4ong (ong, ustralia ' Singapore. )ew @icenses >

6usinesses /orld callBs strategy is to position itself in advance to gain a first

22


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fle$ible ):) solutions providing cost effective and future proof investments. %his

means lower fi$ed and capital e$penditure and more efficient structures creating

lower operating e$penditure, better "uality of service, more competitive products,

"uick#to#market and new revenue rich services. )ew @icenses /ireless @ocal

@oop 2/@@3 /orld call has completed all preliminary work for successfully

launching the services across ;akistan at very attractive pricing and "uality of

service after grant of license by ;%. /orld call plans on deploying a %hird

:eneration capable )etwork C&7 H+++ 5 and will be offering Di$ed

%elephony, @imited 7obility %elephony and all the latest value added services

likeJ S7S, 77S, :;RS, ;ush#to#talk, ?7S, etc.

$orld call 2ultimedia 7td##/orld call 7ultimedia @imited 2/7@T3 is the first#

ever broadband infrastructure deployed in ;akistan to provide interactive

multimedia services through hybrid fiber coa$ial 24DC3 network in the city of

@ahore. %his is a -8,+++ house pass pro0ect that began offering *+U crisp %A

channels to its customers in &ecember H++5 and high#speed Internet#over#Cable

service has recently started as well. /7@ is currently servicing around -,+++

Cable %A ' over E,+++ Internet#over#Cable subscribers. Other value added

services such as AoI; > telephony, pay#per#view, video#on#demand, distance

learning, security and data network services will be added gradually sub0ect torelevant approvals. %heir brand name /orld of 7agicT is reflective of the

companyBs commitment to fill their customersB world with the magic of

infotainment. %heir service gives the subscribers the opportunity to be

entertained by a wide range of engaging channels in ?nglish, =rdu and ;un0abi1

7ovies, sports, news, documentaries, music, children programs and other

entertainment and information content. Other value added services include

Software downloads, 7; streaming, Online 7ultiplayer :aming, Internet Radio

' Aideo Streaming through their website www.magic.net.pk.

Sponsors of /orld call 7ultimedia included DCSC, /orld call Communications '

Cairn wood :lobal %echnology Dund. fter a ma0or restructuring to bring local

operational telecom companies in the group under one umbrella, /C@ now holds

. Q shares of /7@. /orld call Communications is in the process of ac"uiring

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the balance shares of /7@ after which /7@ shall become a wholly owned

subsidiary of /C@.

8ision

/orld call 7ultimedia @imited is committed to achieving the highest "uality in all

that it does. Our endeavor is to consistently satisfy our customers, shareholders,

fellow employees, and communities by giving them the best possible services.

6eing the pioneers of providing 6road 6and services and Cable %A on fiber optic

continue to strive for providing state of the art technology in order to bring

;akistan at par with the most advanced countries in the world.

chieving Competitive dvantage through Information %echnology

6roadband is the term used to describe internet services that are much faster

and more powerful than home connections. =ntil now, these


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of dial#up modems know, it can seem awfully slow as one waits for the 8+th

photograph on a page crammed with images to download 0ust as someone else

in the house is waiting to use the telephone. nd this is 0ust the ma$imum speed

# sometimes modems seem to freeze up altogether or you have problems

connecting to your IS;. So how fast must a connection be before it is called

broadbandG Some say 5H*(bps, others 85H(bps. Certainly 85H(bps is fast

enough that accessing websites seems instantaneous. 6ut all agree that even

higher speeds of at least H7bps # 7egabits per second, or 0ust over a million bits

# will be needed before services involving live video beamed over the internet will

become practical.

;0 )peed isn't everything0 ##6roadband is not 0ust about higher speeds, though.

%here are other things to recommend it. 7ost types of broadband internet service

are


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department. Restrictions imposed by the government on the content are the

barriers on the performance of the department.

=0 Customer Care&&%his department is responsible to record customer

complaints, forwarding them to the specific department and giving feedback to

customers. ;roblems arise when there are more number of calls then the

number, call center can handle.

>0 +inance < Accounts&&%his department performs activities like accounts

keeping, financial analyses and forecasting, banks dealing, procurement

management, inventory recording, cash collection and cash distribution. %he

basic problem faced by the department is field inventory damage evaluation.

?0 Human Resources##%his department performs recruitment, training,

appraisal, salary and discipline of employees. Inappropriate attendance system

creates problems for the department.

@0 2)&%his department performs software development, @ocal re network

operations ' maintenance and value added services management. ;roblems are

encountered when virus attacks happen.

0 )ales < 2ar%eting&&%his department is concerned with sales management '

enhancement, collection ' recovery of revenues, distribution management, and

brand promotion. ;roblems are faced when government imposes restrictions oncontent relayed, which lemmatize sales growth.

"istri*ution )trategy&&/orld call 7ultimedia @imited has wisely made use of its

network by e$tending lines to areas where it canBt operate directly. &istributors

have been appointed to provide C%A services. &istributors install their own

webs and maintain by themselves by paying certain percentage to /orld call

7ultimedia @imited. /orld call 7ultimedia @imited establishes its authorized

sales outlets in the e$isting offices distributors on following conditionsJ

;rime location of distributorBs office in the locality.

%he signboard and other office fi$tures to be provided by the /orld call

7ultimedia @imited.

&istributor will display and sell /orld call products at its outlet like ;CO, calling

cards, &ial#up cards, C%A and IOC sales booking forms, &aily %imes,

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dvertising for C%A etc.

&istributor is re"uired to install at#least H phone lines for customer care.

%he customer care number in the distributor area to be publicized by the

distributor.

ll the ;OS material for all products will be available with the distributors.

%he addition of services will increase the business and potential to increase

revenue for distributors

2ar%et Profile BPa%istan

Internet usage has been gaining ground in the past few years in ;akistan.

Recently 66C reported that there are about H++,+++ internet users at the

beginning of H++H. %his number has been growing with the increase in the

number of cities that are now on the /orld /ide /eb. On last count the number

of cities in ;akistan that had Internet access was 8H5. 6elow is the breakup of

the number by state1

;un0ab H88

Sindh 5+

)./.D.; E

6aluchistan -

:ilgit 5Dederal 2)ot a state3 5

)egmentations

/orldcall 7ultimedia @td is working on the concept of 7ass 7arketing. So under

the given concept it is targeting every kind of customer. (ey Success Dactors

2(S?3

%echnical ?$pertise

4ybrid Diber Coa$ial 24DC3

?ntrepreneurship

Pricing )trategy

/orldcall 7ultimedia @td has offered its Internet services on the following prices.

Sr. X &escription 7onthly Subscription 2Rs.3 Muarterly 2Rs.3 4alf Wearly 2Rs.3

Wearly 2Rs.3

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5 -E kbps E8++ E** EH8 E+8+

H 5H* kbps +++ *8 *88+ *5++

H8- kbps H++++ 58++ 5+++ 5*+++

E *E kbps H8+++ HHEH8 H5*8+ H+++

8 85H kbps 8+++ E5H8 H8+ 58++

- 5+HE kbps ++++ -*H8+ --8++ -+++

Installation Charges

Cable 7odem ;rice Rs. E+++

Installation Dee Rs. +++.

Advertisement Tools

;ress advertisements 2;rint 7edia3

;osters> brochures

dvertising on /7@ C%A.

In#house channel sponsorship

Scroll works mobile advertising

@it pole signs

6lock signs advertising

7agazines

6ill 6oards)$OT analysis

)trengths

%echnical ?$pertise.

State of the art 4DC ;lant.

Skilled work force 2%echnical, Sales, Collection3.

Aalue added services 2A..S3

dvertising on cable by the leading brands.

In#house community channels.

Computerized billing system.

HE hour customer care.

)OC by :ovt. of ;akistan.

$ea%nesses

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@imited =rdu > Indian content.

7aintenance down time is high.

Centralized customers care.

Call Center inability to receive large number of calls.

Insufficient space to accommodate staff at various area offices.

@ack of coordination among departments and cross functional coordination.

Opportunities

=navailability of a state of the art C%A ' IOC service in the market place.

?stablished brand name /orld call.

c"uisition of distribution rights for various channels.

dvertisement potential, as companies are moving towards cable advertising.

=navailability of technical e$pertise in the market.

IOC packages for the new segments.

6etter business solutions to corporate sector in IOC.

;romotion of /orld calls other products in the market.

)ew 4ousing schemes.

Increase in population

:lobal ?vents like Dootball /orld cup, terrorist attacks etc.

Threats

)ew entrants in the market.

;oor technical back#up to distributors.

Small cable operators.

;oor :overnment control over the illegal cable operators.

vailability of other IS;s with cheaper hourly rates and better speed.

?mergence of IS&) ' &S@ with better business solutions.

&S@ rates going down fast with time.

;roduct @ife Cycle

/orld call #/orld call is at maturity level.

Informing the technical staff to give a connection of internet on the address

provided by the caller.

If there is any customer who wants to roll back 2want to discontinue3 from our

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services. /riting it and informing the technical staff.

Reference&Internet ##website www.magic.net.pk.

Documents

Management Organization 5