Session 4 Corporate Identity, Culture & Projects PDF

Session 4: Corporate identity, culture, and projects MG01-00B-B Functions and management of organisations 1 What is culture? "the programming of the human mind by which one group of people distinguishes itself from another group". Geert Hofstede It is...

Session 4: Corporate identity, culture, and projects MG01-00B-B Functions and management of organisations 1 What is culture? "the programming of the human mind by which one group of people distinguishes itself from another group". Geert Hofstede It is always a shared, collective phenomenon, that is learned from your environment. Symbols: words, attitudes, styles of dress Heroes: symbolising cultural belonging Rituals: superfluous, repetitive but essential activities Values: a body of moral principles (as opposed to ethics) Source: hofstede-insights.com MG01-00B-B Fonctions et management des organisations 2 What is organizational culture Organizational culture: a system of shared meaning held by members that distinguishes the organization from other organizations. Seven primary characteristics seem to capture the essence of an organization’s culture: 1. Innovation and risk taking. The degree to which employees are encouraged to be innovative and take risks. 2. Attention to detail. The degree to which employees are expected to exhibit precision, analysis, and attention to detail. 3. Outcome orientation. The degree to which management focuses on results or outcomes rather than on the techniques and processes used to achieve them. 4. People orientation. The degree to which management decisions take into consideration the effect of outcomes on people within the organization. 5. Team orientation. The degree to which work activities are organized around teams rather than individuals. 6. Aggressiveness. The degree to which people are aggressive and competitive rather than easygoing. 7. Stability. The degree to which organizational activities emphasize maintaining the status quo in contrast to growth. MG01-00B-B Functions and management of organisations 3 What is organizational culture Organizational culture is descriptive, whereas job satisfaction is evaluative. Dominant culture expresses the core values a majority of members share and that give the organization its distinct personality. Subcultures tend to develop in large organizations to reflect common problems or experiences members face in the same department or location. Strong vs. Weak culture - behavioral control Face culture vs. Dignity culture - self-definition “Individual-organization fit” Problems with organizational culture: Barriers to change? Barriers to diversity? MG01-00B-B Fonctions et management des organisations 4  How organizational culture form? Source: Judge, T. A., & Robbins, S. P. (2017). Organizational behavior. Pearson. MG01-00B-B Fonctions et management des organisations 5  How organizational culture impacts employees? Source: Judge, T. A., & Robbins, S. P. (2017). Organizational behavior. Pearson. MG01-00B-B Fonctions et management des organisations 6 GEERT HOFSTEDE Geert Hofstede undertook a study of a company (IBM) that was present in more than 50 different countries. He found that the cultures were different at the various subsidiaries of the group - a psychological approach to corporate culture, The Hofstede model of national culture consists of six dimensions. The cultural dimensions represent independent preferences for one state of affairs over another that distinguish countries (rather than individuals) from each other. The country scores on the dimensions are relative, in that we are all human and simultaneously we are all unique. In other words, culture can only be used meaningfully by comparison. MG01-00B-B Functions and management of organisations 7 The Role of Leadership in Shaping Culture The influence of leaders on corporate culture: Leaders play a crucial role in shaping and influencing corporate culture through their behavior, values, and actions. Leaders serve as role models and set the tone for acceptable behaviors and norms within the organization. They communicate and reinforce the organization's mission, vision, and values, aligning them with the desired culture. MG01-00B-B Functions and management of organisations 8 The Role of Leadership in Shaping Culture Strategies for leaders to shape and reinforce desired culture: Clearly define the desired culture and communicate it consistently to all members of the organization. Lead by example by aligning their behaviors with the desired culture and values. Develop and implement programs and initiatives that reinforce the desired culture, such as recognition and rewards systems. Provide regular feedback and coaching to employees to ensure their behaviors align with the desired culture. Empower employees to contribute to the culture by encouraging their ideas and fostering a sense of ownership. MG01-00B-B Functions and management of organisations 9 Organizational Climate vs. Organizational Culture Differentiating between organizational climate and culture: Organizational climate refers to the shared perceptions and attitudes of employees about the work environment, including factors like morale, job satisfaction, and teamwork. Organizational culture, on the other hand, encompasses the values, beliefs, and assumptions that shape behaviors and decision-making across the organization. MG01-00B-B Functions and management of organisations 10 Organizational Climate vs. Organizational Culture How organizational climate influences culture: The organizational climate is influenced by the collective behaviors, interactions, and practices of individuals within the organization. Over time, the collective climate contributes to the formation and reinforcement of the organizational culture. A positive and supportive climate can reinforce the desired culture, while a negative or toxic climate can undermine it. MG01-00B-B Functions and management of organisations 11 Organizational Climate vs. Organizational Culture The relationship between climate, culture, and employee engagement: Organizational climate affects employee engagement, job satisfaction, and commitment to the organization. A positive and supportive climate can enhance employee engagement and foster a sense of belonging. The alignment between climate and culture is important as a positive climate can reinforce the desired culture, leading to higher employee engagement and performance. MG01-00B-B Functions and management of organisations 12 Organizational Climate vs. Organizational Culture Strategies for managing organizational climate and culture: Regularly assess and measure the organizational climate through surveys, feedback sessions, and employee engagement initiatives. Address issues and concerns raised by employees to improve the climate and foster a positive work environment. Develop policies and practices that align with the desired culture and promote positive behaviors and interactions. Provide training and development programs to enhance employees' understanding of the desired culture and values. Continuously communicate and reinforce the culture and its importance to all members of the organization. MG01-00B-B Functions and management of organisations 13  Definitions: CULTURE & IDENTITY Corporate culture refers to the shared values, Corporate identity, on the other hand, refers to beliefs, attitudes, norms, and behaviors that how an organization presents itself to internal define the organization and guide the actions of and external stakeholders, including employees, its employees. customers, investors, and the public. It represents the unwritten rules and social It encompasses the tangible and visible norms that shape how people interact and work elements that represent the organization's within the organization. image, values, and reputation. Corporate culture influences employee Corporate identity includes the organization's behavior, decision-making, and organizational name, logo, visual design, brand messaging, performance. taglines, and marketing communications. It is deeply ingrained and often seen as the It is the way an organization portrays itself and collective personality of the organization. is perceived by others. Corporate culture can be observed through Corporate identity serves as a means to various aspects, such as the organization's differentiate the organization from its mission and vision, communication styles, competitors and create a distinct and employee interactions, leadership behavior, recognizable brand image. rituals, and symbols. MG01-00B-B Functions and management of organisations 14 Organizational Culture vs. Identity Corporate Culture Corporate Identity Shared values and beliefs External image and perception Internal focus External focus Intangible Tangible and visible elements Develops over time Purposefully designed Influences behavior Influences perception Comprehensive Narrow focus Shapes organizational dynamics Reflects organizational image In reality, corporate culture and corporate identity are interconnected and mutually influential! MG01-00B-B Functions and management of organisations 15 Organizational Culture vs. Identity Dimension Corporate Culture Corporate Identity Intangible: Shared values, Tangible: Visible elements, logos, Nature beliefs, norms, behaviors design, messaging Internal: Employee behavior, External: Stakeholder perception, Focus interactions organization's image Emerges over time through Formation Purposefully designed and crafted shared experiences Employee behavior, decision- Stakeholder perception, brand Influence making, performance reputation Comprehensive: All aspects of Specific: Visual and communication Scope internal dynamics aspects In reality, corporate culture and corporate identity are interconnected and mutually influential! MG01-00B-B Functions and management of organisations 16 Strategies for creating a strong and cohesive organizational identity 1. Clarify purpose and values, aligning them with the broader goals and aspirations. 2. Engage stakeholders, encourage their input, feedback, and ownership to foster a sense of belonging and commitment. 3. Align with strategy, the identity should reflect the organization's competitive advantage and value proposition. 4. Lead by example: Leaders should consistently demonstrate and reinforce the values and behaviors associated with the identity. 5. Develop rituals and symbols: These can include regular recognition ceremonies, storytelling sessions, or visual representations that evoke the identity. 6. Foster a positive culture: inclusive organizational culture that aligns with the values and principles of the identity. MG01-00B-B Functions and management of organisations 17 Methods for effectively communicating organizational culture and identity 1. Formal communication channels: such as newsletters, emails, company-wide meetings 2. Storytelling: Stories create emotional connections and help employees understand the desired behaviors and beliefs. 3. Symbols and visual cues: such as logos, office design 4. Leadership communication 5. Feedback and recognition: Acknowledge and reward behaviors that exemplify the organizational values and contribute to the identity. MG01-00B-B Functions and management of organisations 18  The Dimensions of National Culture Source: Hofstede’s Cultural Dimensions Theory (iedunote.com) MG01-00B-B Functions and management of organisations 19  The Dimensions of National Culture POWER DISTANCE INDEX (PDI) This dimension expresses the degree to which the less powerful members of a society accept and expect that power is distributed unequally. The fundamental issue here is how a society handles inequalities among people. People in societies exhibiting a large degree of Power Distance accept a hierarchical order in which everybody has a place and which needs no further justification. In societies with low Power Distance, people strive to equalise the distribution of power and demand justification for inequalities of power. MG01-00B-B Fonctions et management des organisations 20 The Dimensions of National Culture INDIVIDUALISM VERSUS COLLECTIVISM (IDV) The high side of this dimension, called Individualism, can be defined as a preference for a loosely-knit social framework in which individuals are expected to take care of only themselves and their immediate families. Its opposite, Collectivism, represents a preference for a tightly-knit framework in society in which individuals can expect their relatives or members of a particular in-group to look after them in exchange for unquestioning loyalty. A society’s position on this dimension is reflected in whether people’s self-image is defined in terms of “I” or “we.” MG01-00B-B Fonctions et management des organisations 21 The Dimensions of National Culture MASCULINITY VERSUS FEMININITY (MAS) The Masculinity side of this dimension represents a preference in society for achievement, heroism, assertiveness, and material rewards for success. Society at large is more competitive. Its opposite, Femininity, stands for a preference for cooperation, modesty, caring for the weak and quality of life. Society at large is more consensus-oriented. In the business context Masculinity versus Femininity is sometimes also related to as “tough versus tender” cultures. MG01-00B-B Fonctions et management des organisations 22  The Dimensions of National Culture UNCERTAINTY AVOIDANCE INDEX (UAI) The Uncertainty Avoidance dimension expresses the degree to which the members of a society feel uncomfortable with uncertainty and ambiguity. The fundamental issue here is how a society deals with the fact that the future can never be known: should we try to control the future or just let it happen? Countries exhibiting strong UAI maintain rigid codes of belief and behavior, and are intolerant of unorthodox behavior and ideas. Weak UAI societies maintain a more relaxed attitude in which practice counts more than principles. MG01-00B-B Fonctions et management des organisations 23 The Dimensions of National Culture LONG TERM ORIENTATION VERSUS SHORT TERM NORMATIVE ORIENTATION (LTO) Every society has to maintain some links with its own past while dealing with the challenges of the present and the future. Societies prioritize these two existential goals differently. Societies who score low on this dimension, for example, prefer to maintain time-honoured traditions and norms while viewing societal change with suspicion. Those with a culture which scores high, on the other hand, take a more pragmatic approach: they encourage thrift and efforts in modern education as a way to prepare for the future. In the business context, this dimension is referred to as “(short- term) normative versus (long-term) pragmatic” (PRA). MG01-00B-B Fonctions et management des organisations 24 The Dimensions of National Culture INDULGENCE VERSUS RESTRAINT (IVR) Indulgence stands for a society that allows relatively free gratification of basic and natural human drives related to enjoying life and having fun. Restraint stands for a society that suppresses gratification of needs and regulates it by means of strict social norms. MG01-00B-B Fonctions et management des organisations 25 Case study 26 Country Comparison - Hofstede Insights (hofstede-insights.com) MG01-00B-B Fonctions et management des organisations 27  Other Concepts of cultural dimensions Schein Hofstede GLOBE study Trompenaars and Hall & Hall The nature of truth Power distance Institutional Hampden-Turner High vs. Low Time dimension Uncertainty Collectivism Universalism vs. context avoidance In-Group Particularism Spatial orientation Spatial proximity Femininity vs. Collectivism Individualism vs. Monochrome vs. Nature of being a Collectivism human Masculinity Uncertainty Polychrome Individualism vs. avoidance Emotional vs. Information speed Type of human Neutral activity Collectivism Power distance Long-term Gender Specific vs. Nature of human Diffuse relationships orientation Egalitarianism Assertiveness Ascription vs. Achievement Performance Orientation Sequential vs. Synchronic time Humane Orientation Internal vs.  Other Concepts of cultural dimensions DIMENSIONS Truth and reality Human as an individual Human as member of a group Time dimension Space and Context Other Concepts of cultural dimensions DIMENSIONS ▪ Are there eternal, universal truth? Truth and reality ▪ What is true depends on experiment or conviction? ▪ Universalism vs. Particularism? Human as an individual Human as member of a group Time dimension Space and Context Other Concepts of cultural dimensions DIMENSIONS Truth and reality ▪ Dichotomic view of human nature or can we change? Human as an ▪ Ascription vs. Achievement? individual ▪ Is society passive in their fate or can actively shape it? ▪ Femininity vs. Masculinity? Humane vs. Performance Human as orientation? member of a group Time dimension Space and Context Other Concepts of cultural dimensions DIMENSIONS Truth and reality Human as an individual ▪ What social order dominates a society? Human as ▪ Individualism vs. Collectivism? ▪ Power distance? member of a ▪ Emotional vs. Neutral? group ▪ Low context vs. high context? Time dimension Space and Context Other Concepts of cultural dimensions DIMENSIONS Truth and reality Human as an individual Human as member of a ▪ How important time is? group ▪ To live in relation to the past or to the future? ▪ Long vs. short-term orientation? Time dimension ▪ Uncertainty avoidance? ▪ Sequential or Synchronic time management? Space and Context Other Concepts of cultural dimensions DIMENSIONS Truth and reality Human as an individual Human as member of a group Time dimension ▪ Spatial distance when communicating? ▪ How is space allocated in a society? Private or public? Space and ▪ Level of intimacy? Context ▪ Specific vs. Diffuse? How relevant all these to you? Discussion Mini-case study inspired by a case from “Le Management en Archipel, vol. 1, by Bruno Bouchard and Vincent Calvez MG01-00B-B Functions and management of organisations 36