pg11seca group10 odc ibmcase
TRANSCRIPT
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Managing
Organizational
CultureGroup -10
Avijit Shukla-11P014Deepak Jangid-11P017
Gaurav Chauhan -11P020
Nitin Sharma -11P030
Raghav Pandey- 11P035
Sourabh Manna- 11P053
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UNDERSTANDING CULTURE:
Ambiguous concept
Misunderstood as a cultural phenomenon
Set of people with common history and stability
Pattern ofbasic
assumption
Invented anddeveloped by a
given group
As it learns to cope with its
problems of externaladaptation and internalintegration
Has worked well to be considered validand correct way to perceive, think and
feel
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Organization
No
overarching
culture due
to lack of
common
history or
frequent
turnovers
Strongbecause of
long shared
history and
shared
intenseexperiences
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1
Observable artifacts:
Physical layout
Dress code
Manner of
addressing
Smell and feel
Emotional
intensity
Problems:
Palpable
Difficult to
decipher
3
Basic underlying
assumptions:
Perceptions
Thought Process
Feelings
Behavior
Once understood
becomes easier todecipher the implicit
meanings in the
various phenomenon
one observes
2
Values:
Norms
Ideologies
Charters
Philosophies
Open ended
interviews
Problems
Difficult to know if the
dimensions are relevant
and salient in that
culture
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Theorganizationsrelation to itsenvironment
Dominant
Submissive
Harmonizin
g
Nature ofhuman activity
Pro-active
Fatalistic
Harmonizing
Nature ofreality and
truth
Pragmatic
Reliance/wisdom
Socialconsensus
Nature of time
Basicorientation
Time units
Deadlines/conduct
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Nature ofhumannature
Good/neutral/evil
Perfectible/fixed
Nature of human relationship
Distribute power or affection
Competitive or cooperative
Individualism or groupism
Autocratic/Paternalistic
Collegial/Participative
Homogeneityvs diversity
Pro-active
Fatalistic
Harmonizing
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CULTURAL DYNAMICS:
SOCIALIZATION
Dimensions along which socialization processes can
vary
Group versus Individual
Formal versus Informal
Self-destructive and reconstructing versus self enhancing
Serial versus Random
Sequential versus disjunctive
Fixed versusVariable
Tournament versus contest
Socialization consequences
Custodial orientation or total conformity
Creative individualism
Rebellion or the total rejection of all assumptions
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DIMENSIONS AND TYPES OF
ORGANIZATIONAL CULTURE
High
High
Low
Low
Sociability
Solidarity
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Measure of emotional noninstrumental relations
Social interaction valued for own stake
Fosters teamwork, sharing of information and a spirit of openness to
new ideas Freedom to express and accept out-of-box thinking
May allow tolerance of poor performance
Exaggerated concern for consensus
May lack formal/organizational structure
Sociability
Based on common tasks mutual interests or shared goals
Generates high degree of strategic focus, swift response and non-tolerance of poor performance
Strict standards, equality-of-suffering effect Develops a strong sense of trust
If the strategy is not good it will lead to corporate suicide
Cooperation occurs only when advantage to individual is clear
Lack of cross sectional collaborative overlapping
Solidarity
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CULTURE AND LEADERSHIP
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Ran the company for 42 years
Had a superstitious learning style drew lessons from his life and implemented them inthe company
Was impressed by his own business philosophies
Led to an unwritten dress code
Alcohol became prohibited in the company
Intolerant of any complaint made by customers Threatened Bethlehem Steel when it gaverecommendations
Executed lay-offs and salary reductions. However, over time he realized the importance ofsatisfied workers and his views became progressive
Thomas Watson Sr.
IBM was born in 1924
Name changed from Computing Tabulating- Recording to International Business Machines Company by Thomas Watson Sr.
Soaring of revenues
Overview -1924 onwards
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Ran the company for 15 years
Codified the philosophy of 3 basic beliefs which the company could not change under any
circumstances Respect for individual
Customer Service
Excellence
Tom Watson Junior
1950s
Tom Watson Junior became president in 1952 and CEO in 1956, respectively
Responsible for pushing IBM into electronics - led the development ofIBM 701
IBMs revenues exploded
Overview -1950 onwards
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Was responsible for decentralization
Started to overhaul IBMs operations and management as soon as the sales /profits starteddeclining
Slashed manufacturing capacity and work force
Decentralized management
Launched a culture change program, Market Driven Quality focussing onEmpowerment and New pay-for-performance incentive system
These steps could not prevent the companys declining profits
John Akers
1960s Introduction of the revolutionary and highly successful Systems/360 line
IBM continued to be a one product-line company for the next 20 years
1965 1985
Growth rate 14% and average gross margin 60%
John Akers became the CEO in1985
Growth declined drastically IBM faced overcapacity problems
Overview -1950 onwards
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Recognized the arrogant attitude of the company
Understood that IBMs challenges lay in the absence of focus on culture, teamwork,
customers and leadership in the company
Cult like culture
Narrow-minded and inward-focussed view
Lou Gerstner
IBM had suffered its first loss
More than 100,000 employees had been let go
IBMs share prices had declined drastically
Lou Gerstner, an outsider, became the CEO
Overview -1993 onwards
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Lou Gerstner Introduced 8 principles in place ofTom
Watson Jrs Basic BeliefThe marketplace is the driving force behind everything we do
Our primary measures of success are customer satisfaction and shareholder value
We operate an entrepreneurial organization with a minimum bureaucracy and a never ending
focus on productivity
We never lose sight of our strategic vision
We think and act with a sense of urgency
Outstanding, dedicated people make it all happen, particularly when they work together as a
team
We are sensitive to the needs of all employees and to the communities in which we operate
We operate an entrepreneurial organization with a minimum bureaucracy and a never ending
focus on productivity
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Changes madeChanged the no alcohol policy
Abolished IBMs dress codeLimited the use of overhead transparencies or foils wanted people to emphasized
on business
Worked towards changing IBMs contention system
Tried to make the senior management focus on the competition
Changed IBMs measurement and rewards system
IBM was changed to market driven rather than process driven enterprise
Things that were not changed
Focus on customer
Respect for individual
Maintained the core competency
Protected the fundamental R&D budget
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