organisational culture

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ORGANISATIONAL CULTURE

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organisational culture....with two examples tata & ford motors by comparing them

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Page 1: Organisational culture

ORGANISATIONAL CULTURE

Page 2: Organisational culture

FLOW OF PRESENTATION1. INTRODUCTION2. OVERVIEW OF TATA & FORD

MOTORS3. GENERAL CULTURE4. INNOVATION5. ETHICS6. CUSTOMER SERVICES7. SOCIAL RESPONSIBILTY8. BENEFITS9. CONCLUSION

Page 3: Organisational culture

What do you think that seperates bitsians from others..???

Yes…it our culture…that distinguishes us….

Page 4: Organisational culture

Organisational culture

"...We believe that organizations will ultimately get only as far as their organizational cultures take them."

Page 5: Organisational culture

Definition

The basic pattern of shared assumptions, values, and beliefs considered to be the

correct way of thinking about and acting on problems and opportunities facing the

organization.

The Philosophy that guides an Organizations policy towards employees & customers.

Page 6: Organisational culture

Organisational culture

The culture of an organization represents certain predefined policies which guide the employees and give them a sense of direction at the workplace

The culture decides the way employees interact at their workplace.

Page 7: Organisational culture

Importance of Organisational culture

The Culture decides the way employees interact at their workplace.

The organization culture brings all the employees on a common platform.

It is the culture of the organization which extracts the best out of each

team member

Page 8: Organisational culture

Importance(contd…)

The culture of the workplace also goes a long way in promoting healthy competition at the workplace.The culture of an organization represents certain predefined policies which guide the employees and give them a sense of direction at the workplace

Page 9: Organisational culture

Culture and perception“One's own culture provides the "lens" through which we view the world; the "logic"... by which we order it; the "grammar" ... by which it makes sense. “

“In other words, culture is central to what we see, how we make sense of what we see, and how we express ourselves.”

Page 10: Organisational culture

Culture influences perception

• "In a world as complex as ours, each of us is shaped by many factors.culture is one of the powerful forces that acts on us.”

• for example : When you shape a round finger, it means ‘zero’ in Indonesia but in Brazil that is rude.

Page 11: Organisational culture

OVERVIEW OF TATA AND FORD MOTORS

Jamsetji Nusserwanji Tata Henry Ford

Page 12: Organisational culture

TATA MOTORS

• Jamsetji Nusserwanji tata started a private trading firm laying foundation to the tata group in 1868.

• Tata motors was established in 1945 as a locomotive manufacturing unit.

• It tied up with Dailmer-Benz and entered commercial vehicle segment in 1954

Page 13: Organisational culture

TATA MOTORS

Jamsetji Nusserwanji tata started a private trading firm laying foundation to the tata group in 1868.

Tata motors was established in 1945 as a locomotive manufacturing unit.

It tied up with Dailmer-Benz and entered commercial vehicle segment in 1954

Page 14: Organisational culture

TATA MOTORS(contd..)

• Mission: Leadership with trust To be a competitive value provider in international business for group companies and all our partners.• Vision : become a globally networked

enterprise seizing opportunities worldwide to generate USD 25 million annual profits by 2008.

Page 15: Organisational culture

TATA MOTORS(contd..)

Values Integrity Excellence Responsibility Unity Understanding

Page 16: Organisational culture

FORD MOTORS

Ford motors began with a young man Henry Ford in year 1903.

Ford motors is a symbol of success for other motor companies in the world.

Ford owns a small stake in Mazda in Japan and Aston Martin in UK and its former subsidiaries

Jaguar and Land rover were sold to Tata motors.

Page 17: Organisational culture

FORD MOTORS(contd..)

• Vision• To become a leader in motor vehicles for

products and related services.• MissionTo provide products for superior quality that improve the living standard of customers not harmful for environment.

Page 18: Organisational culture

Culture – (broader perspective)

Ford motors

• Fmc employees of today enjoy a workplace with a more open communication policy than their predecessors that might affect them .

• Employee opinion is valued and is heard through surveys the company sends out .

Page 19: Organisational culture

FORD’S CEO LEADS CULTURAL CHANGE

• CEO of ford is working hard to change work habits of employees.

• Wants managers to think more about customers than their own careers.

• Top priority is to encourage leadership team to admit mistakes, share more information and cooperate across divisions.

Page 20: Organisational culture

Culture –(broader perspective)

Tata motors• Tata’s follow a very strong culture giving much

importance to ethics and moral values.• Tata companies also extend social welfare

activities to communities around their industrial units.

• Very strong employee relationships.

Page 21: Organisational culture

CEO’s ROLE IN LEADING TRANSFORMATION AT TATA

The role of CEOs is unique in that they stand at the top of the pyramid and all the other members of the organization take cues from them.

Building a strong and committed top team.

Role-modeling desired mind-sets and behavior.

Relentlessly pursuing goals.

Page 22: Organisational culture

INNOVATIONS(TATA MOTORS)

Tata Motors created several breakthrough products in the past which changed the market dynamics and helped in providing a new customer experience.

INNOVATIONS407 platform in 1980s: Indica in late 1990’sACENANO

Page 23: Organisational culture

INNOVATIONS(FORD MOTORS)

• Ford’s use of Assembly lines was a revolutionary method.

• Use of light weight,durable,easily machined,stronger metal like Vanadium.

• Introduced left hand drive configuration.

Page 24: Organisational culture

Value of ethicsPrinciples, values, and beliefs that define what is

right and wrong behavior

Page 25: Organisational culture

Value of ethics

TATA’S PERSPECTIVE

Every employee of Tata motors shall exhibit culturally appropriate behaviour in the countries they operate in,and deal on behalf of the company with professionalism, honesty and integrity, while conforming to high moral and ethical standards.

Page 26: Organisational culture

CODE OF ETHICS

• Every employee of a Tata company shall preserve the human rights of every individual and the community, and shall strive to honour commitments.

• Every employee shall be responsible for the implementation

of and compliance with the Code in his / her environment. Failure to adhere to the Code could attract severe consequences, including termination of employment.

Page 27: Organisational culture

MANAGING ETHICAL LAPSES

ETHICS COUNSELLOR • Investigators shall derive their authority and access rights from

the Ethics Counsellor / Audit Committee when acting within the course and scope of their investigation.

• If an investigation leads that an improper or unethical act has been commited the Ethics Counsellor shall recommend to the management to take disciplinary or corrective actions.

• The Ethics Counsellor shall submit a report to the Chairman of the Audit Committee on a regular basis about all Protected Disclosures referred to him/her since the last report together with the results of investigations, if any.

Page 28: Organisational culture

FORD’S CODE OF BUSINESS ETHICS CONFLICT OF INTEREST

• Relationship of company with third parties.

• Compensation from non company sources.

• Gifts

• Personal use of company assets.

Page 29: Organisational culture

CORPORATE OPPORTUNITIES

• Taking for themselves personally opportunities related to company’s business.

• Using the company’s property,information or positions for

personal gain. CONFIDENTIALITYDirectors should maintain the confidentiality of information entrusted to them by the Company and any other confidential information about the Company that comes to them, from whatever source.

Page 30: Organisational culture

GUIDELINES

Compliance with laws, rules and regulations; fair dealing.

Encouraging the reporting of any illegal or unethical behaviour.

Compliance procedures.

Stringent action against unethical acts.

Page 31: Organisational culture

CUSTOMER SERVICE

• Customer service is the provision of service to customers before and after a purchase.

“your most unhappy customers are your

greatest source of inspiration.”

Page 32: Organisational culture

TATA’S PERSPECTIVE

With the basic objective of increasing customer satisfaction and loyalty, the Customer Service is always at work to exceed the customer expectations. The customer service department works as a strong link between the company and the customer.

Page 33: Organisational culture

PROVISIONS FOR CUSTOMERS

• Qualified and trained technicians ,service advisors and customer relationships officer.

• 24 hours helpline and a breakdown helpline vehicle.

• Strong chain of dealers and Tata Authorised Service Stations(TASS).• Recently Tata Motors has launched “Service

Edge” to up customer service.

Page 34: Organisational culture

FORD’S PERSPECTIVE

• Customer satisfaction is their primary objective.• Keep innovating and serve the customer with

best quality in least price.• Aims at making “Life easy” for their customers

by providing them what they need.

“BUILT FORD TOUGH” “BUILT FOR THE ROAD AHEAD”

Page 35: Organisational culture

CUSTOMER PROVISIONS

• 24x7 roadside assistance.

• Interest free payment.

• Different types of maintenance plans.

• Owner advantage rewards.

Page 36: Organisational culture

PERFORMANCE APPRAISAL• Formal system of review and evaluation of individual or team

task performance.

• The aim of performance appraisal is to determine the gap between the actual performance of the employee and that required or desired by the organization.

Page 37: Organisational culture

Tata’s system of appraisal

• Annual with semiannual updates.• Appraisal is done by immediate supervisors.

Goal Sheet, Target Achievement, Quality of work, Ethics used in target achievement, Ethics used in

target achievement.

Page 38: Organisational culture

Ford’s system of appraisal

Annual system of appraisal.

Employees are given ratings on the basis of there performance as A ,B,C.

One year at the C level meant no bonus and two years could lead to dismissal or demotion.

Forced system is followed.5%of managers should must get poor grades.

Page 39: Organisational culture

CORPORATESOCIAL RESPONSIBILTY

Page 40: Organisational culture

CSR(FORD MOTORS)

• Ford establishes Greenhouse Gas Reduction Plan.

• Automotive Industry Action Group (AIAG)

• Participation in the fight for ‘labour’ rights of workers across the world.

Page 41: Organisational culture

Ford motors(contd..)Ford will not tolerate any of their suppliers abusing workers, no matter the country.

Ford is leading the automotive movement for less dependence on foreign resources.

Ford is the only automaker among the top 25 of the 50 companies demonstrating best practices in corporate social responsibility.

Page 42: Organisational culture

Ford motors(contd..)

Ford also was the first in the automotive industry to develop, implement and report a Code of Basic Working Conditions.

Page 43: Organisational culture

CSR(TATA MOTORS)

• Organise cultural events for colleagues and their family members.

• Participation in ongoing voluntary activities.

• Identify potential areas for employee voluntering and organise training programmes.

Page 44: Organisational culture

CSR(TATA MOTORS)

Tata Motors being the leading automobile industry in India bagged the Golden Peacock

Award for the year 2004.

The rural developmental programmes at Pune started in

1977.

Page 45: Organisational culture

Tata motors(contd..)

Jan Parivar Kalyan Sansthan (JPKS) – It was registered in September 2001 for health related issues.

Samaj Vikar Kendra (SVK) –It worked on infrastructure and safe drinking water, tree plantation programme, entrepreneurship programme.

Page 46: Organisational culture

BENEFITS

Page 47: Organisational culture

Benefits to Employees

• TATA Motors:• Superannuation- • Employees covered by this plan are prospectively entitled to

benefits computed on a basis that ensures that the annual cost of providing the pension benefits would not exceed 15% of salary.

• The monthly pension benefits after retirement range from 0.75% to 2% of the annual basic salary for each year of service.

Page 48: Organisational culture

TATA MOTORS(contd..)

• Bhavishya Kalyan Yojana(BKY)-• The benefits of the plan accrue to an eligible employee at the

time of death or permanent disablement, while in service, either as a result of an injury or as certified by the appropriate authority.

• Severance Indemnity-• The plan provides for a lump sum payment to all employees

with more than one year of employment equivalent to 30 days’ salary payable for each completed year of service.

Page 49: Organisational culture

TATA MOTORS(contd..)

• Gratuity-• A defined benefit retirement plan covering eligible

employees.• The plan provides for a lump sum payment to vested

employees at retirement, death while in employment.• Vesting occurs upon completion of five years of service.• Tata Motors and some of its subsidiaries account for the

liability for gratuity benefits payable in the future based on an actuarial valuation.

Page 50: Organisational culture

Ford Motors Company• Ford A/Z Plan(For current or retired

Ford employees):• All regular part-time hourly and salaried employees who are

eligible to receive medical benefits. • Salaried retirees who retired under the General Retirement Plan,

including salaried employees who terminate between the ages of 50-55 and who are eligible to receive certain deferred retirement benefits, are eligible while they are receiving benefits.

• Employees of approved subsidiary companies and approved affiliated companies as eligibility are defined at the time of approval.

Page 51: Organisational culture

• Ford D Plan(For employees of Ford Dealerships)-

• Two new products per calendar year may be purchased/leased.

• Cross-buying/leasing is allowed. For example, an employee of a Ford dealership may obtain a Lincoln or Mercury product and vice versa.

• Vehicles should be purchased/leased from the sponsoring employee's dealership. However, if this is not practical, eligible relatives may purchase/lease their vehicle from any participating Ford or Lincoln Mercury Dealership.

Page 52: Organisational culture

• Ford X Plan(For employees of Ford partners)-• An eligible Ford employee or retiree may sponsor up to four

(4) PINs per calendar year to be used towards the purchase/lease of a new vehicle for a friend or neighbor as noted below (see PIN Generation for details):

• Selected individuals sponsored by a Ford Motor Company employee or retiree such as an extended family member, friend or neighbor.

• Sponsors must know the individuals they are sponsoring.

Page 53: Organisational culture

Conclusion