Organisational Culture

Refers to the context the organisational

environment
Determines the the type of communication
that will take place
Organisational Culture
How things are done around here
Reflects underlying assumptions about the way
work is performed
What is acceptable and not acceptable
What behaviour and actions are encouraged or
discouraged

Strong culture
Core values are intensely held
High agreement
Shared purpose
Builds cohesiveness
Loyalty
National Culture
Usually takes precedence over organsiational
culture
Mercedes Benz in Alabama
Abandoned strict heirarchy of German plant
Employee teams
Employee intervention
Sense of ownership
Cultures Functions
identity for organisation
sense of identity for members
social system stability
provides social glue
provides appropriate standards
guides and shapes attitudes and behaviours
What are the characteristics
of organsiational cultures?

1. innovation & risk taking
2. interest in having employees generate new
ideas
3. openness of communication
4. Sensitivity to the needs of customers and
employees
How does a culture begin?

1. The founders
Philosophy/vision of the founders influences
Indoctrinate and socialize employees
Founders behaviour acts as model

2. Selection of candidates
3. Socialization methods
- A process that adapts employees to the culture
Organisational Values
Formal Statement of Values
Found in mission statements, value statements
or coporate credos




What we believe in
The Body Shop is a stake-holder led company. It believes its success is
dependent upon its relationships with all its stakeholders, including its
employees, franchisees, customers, communities, suppliers, shareholders
and NGOs.
The Body Shop approach to ethical business operates
on three levels:
1) compliance: opening up to defined standards of human rights, social
welfare and worker safety, environmental protection and, where relevant,
wider ethical issues like animal protection

2) disclosure: only through public disclosure can a real process of
dialogue and discussion with stakeholders be achieved and the right
direction charted for the future

3) campaigning: to play an active part in campaigning for positive change
in the way the business world works, with the ultimate aim of making a
positive impact on the world at large.





We believe in making a difference. In our customers eyes,
Virgin stands for value for money, quality, innovation, fun
and a sense of competitive challenge. We deliver a quality
service by empowering our employees and we facilitate
and monitor customer feedback to continually improve the
customers experience through innovation
Values in - Use

The way people in the company actually behave

May differ from the espoused values

Ford Pinto Case Study

Pinto Crash Tests




Cost Benefit Analysis
if the cost is greater than
the benefit, the project is
not worth itno matter
what the benefit.
Examine the cost of every
action, decision, contract
part or change, then
carefully evaluate the
benefits to be certain that
they exceed the cost
before you begin a
program


BENEFITS

Savings: 180 burn deaths, 180 serious burn injuries, 2,100 burned vehicles.
Unit Cost: $200,000 per death, $67,000 per injury, $700 per vehicle.
Total Benefit: 180 X ($200,000) + 180 X ($67,000) + $2,100 X ($700) = $49.5
million.

COSTS

Sales: 11 million cars, 1.5 million light trucks.
Unit Cost: $11 per car, $11 per truck.
Total Cost: 11,000,000 X ($11) + 1,500,000 X ($11) = $137 million.




Stakeholder vs Stockholder
Approach
Stakeholder Approach


Stockholder Approach
Homework
Read the Ford Pinto case study
enclosed in the course packet
Answer the following
questions in your
communciations notebook:
How would you describe the
culture that existed at Ford
Motor Company in the 1970s?
How did that culture affect
internal and external
communciation?