Organizational Cultures: Creation, Success, and Change

• Creation and Maintenance of Organizational Cultures

• Successful Organizational Cultures• Changing Organizational Cultures

Organizational Cultures

• คุ�ณคุ�า (values) คุวามเชื่��อ(beliefs) และทั�ศนคุติ�(attitudes) ทั��แชื่ร์� โดยสมาชื่�กองคุ�กร์ (shared by organizational members)

Founder Thomas J.Watson

IBM’s culture : his beliefs in the pursuit of excellence, customer service, and respect for the individual.

Founder Thomas J.Watson

A Business and Its Beliefs:

“If and organization is to meet the challenges of a changing world, it must be prepared to change everything about itself except [its basic] beliefs as it moves through corporate life. . . The only scared cow in an organization should be its basic philosophy of doing business.”

• Lifetime employment • in the early 1990s, as IBM lost market share in the mainframe

computer and personal computer businesses, it had to cut costs to minimize financial losses.

• Manufacturing plants were sold,• the long-term research and development budget was cut

• And the number of employees was reduced by 40 percent.• Which such significant changes to the company’s internal

environment, one might expect that IBMers would have s different attitude about how their company should be run

• A survey of 1,200 top managers indicated that 40 percent did not see “the need for change.” In fact, many IBMers were angry at new CEO Louis Gerstner for introducing “unnecessary” changes.

Lou Gerstner saLou Gerstner said, “The last thinid, “The last thing IBM needsg IBM needs right now is a vi right now is a vision”sion”

•Clearly, CEO Gerstner was doing many things that he hoped would change IBM’s internal environment by changing the attitudes and behaviors of IBM’s managers and employees. Gerstner finally admitted that he was having trouble changing the most important part of IBM’s internal environment : its culture:

IBM’s New Culture Principles• 1. The marketplace is the driving force behind everything we do.• 2. At our core, we are a technology company with an overriding

commitment to quality.• 3. Our primary measures of success are customer satisfaction and

shareholder value.• 4. We operate as an entrepreneurial organization with a minimum of

bureaucracy and a never-ending focus on productivity.• 5. We never lose sight of our strategic vision.• 6. We think and act with a sense of urgency.• 7. Outstanding, dedicated people make it all happen, particularly

when they work together as a team.• 8. We are sensitive to the needs of all employees and to the

communities in which we operate.

Creation and Maintenance of Organizational Cultures

• Company founders help create culture

• Thomas J. Watson

• Sam Walton

• Bill Gates create organizations in their own images

•Jack Welch believed that “changing culture starts with an attitude.”

Shaping GE’s attitude through key words and ideas.

“Attitudinal Positioning”

Wal-Mart’s Culture: quality low cost, and customer service

Treating it employees like true partners, encouraging them to take risks and innovate,

John, use your imagination; be creative and figure out a way to sell them.”

Have Fun!!!

Think and act big andThink and act big andwe’ll get smaller.we’ll get smaller.

Think and act small and Think and act small and we’ll get biggerwe’ll get bigger

Herb KelleherHerb Kelleher

““What we are looking for, first and What we are looking for, first and foremost, is a sense of humor.”foremost, is a sense of humor.”

““Then we are looking for people who Then we are looking for people who have to excel to satisfy themselves and have to excel to satisfy themselves and who work well in a collegial who work well in a collegial environment. We don’t care that much environment. We don’t care that much about education and experience, about education and experience, because we can train people to do because we can train people to do whatever they have to do. We hire…..whatever they have to do. We hire…..

AttitudesAttitudes.”.”

““Tolerance for human beings, Tolerance for human beings, their peculiarities or their peculiarities or eccentricities, and their eccentricities, and their differences is every important.”differences is every important.”

““The company won’t hesitate to The company won’t hesitate to fire someone who fails to treat fire someone who fails to treat fellow employees as they should fellow employees as they should be treated.”be treated.”

““We can train people to do things We can train people to do things where skills are concerned. But where skills are concerned. But there is one capability we do not there is one capability we do not have and that is to have and that is to change achange a person’s attitude,person’s attitude, So, we prefer an So, we prefer an unskilled person with a good unskilled person with a good attitude rather than a highly attitude rather than a highly skilled person with a bad skilled person with a bad attitude.”attitude.”

““We feel this fun atmosphere We feel this fun atmosphere builds a strong sense of builds a strong sense of community. It also community. It also counterbalances the stress of counterbalances the stress of hard work and competition.”hard work and competition.”

Southwest Airlines worries a lot about Southwest Airlines worries a lot about hiring the right people. In fact, it flies hiring the right people. In fact, it flies some of its best customers to Dallas some of its best customers to Dallas

and involves them in the flight and involves them in the flight attendant hiring process, believing attendant hiring process, believing

that those who are in contact that those who are in contact employees probably know best what employees probably know best what

makes a good employee.makes a good employee.

““If you don’t treat yourIf you don’t treat yourown people well, theyown people well, theywon’t treat other well.won’t treat other well.

Herb KelleherHerb Kelleher

Alan S. Boys, retired chairman of Alan S. Boys, retired chairman of Airbus North America, : “At other Airbus North America, : “At other places, managers say that people are places, managers say that people are their most important resource, but their most important resource, but nobody acts on it. At Southwest, nobody acts on it. At Southwest, they have never lost sight of the they have never lost sight of the fact.”fact.”

Toshiba’s efforts to indoctrinate new employees in its organization’s culture,recruits are even required to learn the company song.

Nordstrom’s Culture: employees know in no uncertain terms what is expected of them and these expectations go a long way in shaping their behavior.

They are to do whatever is necessary to please the customer