Chapter 4 Flashcards
‘that set of beliefs, customs, practices, and ways of thinking that they come to share with each other through being and working together.’ (Stacey, 1996).
Culture
is the collection of values, expectations, and practices that guide and inform the actions of all team members.
Organizational Culture
is an organization’s values, ethics, vision, behaviors and work environment. It is what makes each company unique, and it impacts everything from public image to employee engagement and retention.
Corporate Culture
If employees share a company’s ethics, vision and other cultural elements, it can positively affect a company’s bottom line. Companies with_______________ often have high workplace morale, and highly engaged, productive staff.
good corporate culture
Employee motivation.
Recruitment.
Employee morale.
Productivity and efficiency.
Quality of product/service.
Industrial relations.
Innovation and creativity.
The importance of culture
SomeExamplesofCompanyCulture
Netflix
Twitter
Google
The common-sense approach to work allows them to have one of the highest standards set for their employees in the business world.
Netflix
They opts for increases in employee responsibility and freedom.
They don’t worry about how many hours someone works, but the accomplishments that come from those hours.
Netflix
They also understands that new hires are investments.
As such, it’s important to reward high performers and eliminate low performers through company culture.
Netflix
is the true definition of a team-orientated environment that employees rave about. The employees enjoy health and fitness classes, rooftop meetings, and continued education through ____________
The friendly environment also allows for feedback at all levels of management through designated meetings.
the perks and benefits begin with free meals, employee social gatherings, financial bonuses and open presentations by high-level executives.
Other admirable quirks include gyms, a dog-friendly environment, and parks.
Employees are thought to be driven, talented and among the cream of the crop.
a large US management consultancy, produced 7-S framework for understanding organizations.
McKinsey
is a tool that describes a global picture of a company or business, according to
7 Elements
This global picturecan be used fordifferent purposes:
-tracking the evolution of the company over time
-better organize the actions to be taken
-define appropriate strategies, where they are most needed
The 7s
-strategy
-structure
-staff
-style
-skills
-systems
-shared values
what the organization does to achieve its goals?
strategy
How the firm is organized.
What type is their organizational structure?
How’s the physical aspect (building/facilities etc.)
structure
How talent is managed and valued?
How people relate to each other?
staff
what is the culture of the organization?
Its character or personality: Friendly, cold, passive
How is the leadership style?
style
How people work together.
Whatjob skillsare valued the most?
skills
WhatResourcesdoes a Company have.
Facilities, Financial resources, Processes, etc.
systems
What are theValues associatedwith the Company?
Their Reputation: what outsiders think of them.
shared values
McKinsey 7s elements are classified into 2 groups:
-hard elements (strategy, structure, systems)
-soft elements (skills, shared values, staff, style)
They are called ______ becausetheir performancecan be objectively evaluated with technical parameters.
Hard Elements
For example:
You can objectively measure whether one Strategy is better than another.
If you achieve your Goals faster, if your profitability is higher, etc.
For example:
You can objectively measure if your Systems (Resources) are better than others:
If your results are better, if you have less waste (in a manufacturing process), if you get your results faster, etc.
These Elements cannot be measured objectively. Or it is very difficult and highly subjective.
Soft Elements
For example:
How can you measure the “management” philosophy of a company?
If a friendly approach is better than a “tougher” one… It would depend entirely on the employee.
How can you measure the “talent or skills that should be valued the most”?
You would need 2 identical companies, with identical employees to compare the results.
How can you objectively measure the performance of the “Style”?
You can’t change the Style of a company from one day to the next and compare the results.
Why is this important?
-You can learn how other companies achieve their goals in such an efficient way.
-It can help you decide which company to invest in.
-It can help you “imitate” some aspects of larger, more profitable companies, etc.
