Human Resource Management Assignment On Organization Culture
Human Resource Management Assignment On Organization Culture
Submitted By: Rohit Pal Shohrab Ahmed Mazumdar Vatsal Sharma [JL12PGDM126] [JL12PGDM144] [JL12PGDM173]
Acknowledgement
We wish to express our sincere gratitude to Prof Anurag Shanker for mentoring us and providing us with immense help till the completion of this project. Here we also take opportunity to record a good team work which forms the basis of this projects completion. We also thank our batch mates for being so supportive. Last but not least, we wish to express a sense of gratitude to our beloved parents.
Organizational Culture
Table of Contents
Categories of Organizational Culture ...................................................................................................... 6 History of concept of Organization Culture .......................................................................................... 10 Negative Culture Norms in Business Organization................................................................................ 11 Positive Culture Norms in Business Organization ................................................................................. 12 Customers ......................................................................................................................................... 14 Locations ........................................................................................................................................... 14 Vision and Strategy ................................................................................................................................ 16 KONEs values ........................................................................................................................................ 17 KONE's organization............................................................................................................................... 18 Management ......................................................................................................................................... 18 Board of Directors ............................................................................................................................. 18 President and CEO ............................................................................................................................. 19 Executive Board ................................................................................................................................. 19 Committees ........................................................................................................................................... 20 People .................................................................................................................................................... 20 Enhancing the safety of our employees ................................................................................................ 20 About Wipro Limited............................................................................................................................. 23 About Google ........................................................................................................................................ 30 Implications of Organization Culture .................................................................................................... 36 Conclusions ........................................................................................................................................... 38 References............................................................................................................................................ 39
Organizational Culture
Organizational Culture
Deal and Kennedy (1982) argue that culture is the single most important factor accounting for success or failure in organizations. They identified four key dimensions of culture: Values the beliefs that lie at the heart of the corporate culture. Heroes the people who embody values. Rites and rituals routines of interaction that have strong symbolic qualities. The culture network the informal communication system or hidden hierarchy of power in the organization. Peters and Waterman (1982) suggest a psychological theory of the link between organizational culture and business performance. Culture can be looked upon as a reward of work; we sacrifice much to the organization and culture is a form of return on effort.
Culture is symbolic and is described by telling stories about how we feel about the organization. A symbol stands for something more than itself and can be many things, but the point is that a symbol is invested with meaning by us and expresses forms of understanding derived from our past collective experiences. The sociological view is that organizations exist in the minds of the members. Stories about culture show how it acts as a sense - making device. Culture is unifying and refers to the processes that bind the organization together. Culture is then consensual and not conflictual. The idea of corporate culture reinforces the unifying strengths of central goals and creates a sense of common responsibility. Culture is holistic and refers to the essence the reality of the organization; what it is like to work there, how people deal with each other and what behaviours are expected. All of the above elements are interlocking; culture is rooted deep in unconscious sources but is represented in
Organizational Culture
superficial practices and behaviour codes. Because organizations are social organisms and not mechanisms, the whole is present in the parts and symbolic events become microcosms of the whole.
Organizational Culture
Organizational Culture
According to Manetje & Martins (2009) Brown (1998) defined organizational culture as the pattern of beliefs, values and learned ways of coping with experience that have developed during the course of an organizations history, and which tend to be manifested in its material arrangements and in the behaviours of its members. Organizational culture is a fundamental part of an organizations collective experience. It may include routines, beliefs, values, goals, and systems which are learned, re-learned and passed on to new employees. Organizational culture can also include formal processes such as policies and procedures relating to working hours, employee benefits and job descriptions; and informal processes such as leadership styles and patterns of information sharing. (Region of Waterloo, 2007) There are many good reasons why organizations need to work hard to maintain a good or improve a poor organizational culture: Organizations with strong, healthy cultures tend to outperform organizations with weaker cultures. (Malick, 2001) The psychosocial work environment, the organization of work and the management culture of the workplace can have a dramatic impact on employee stress and health outcomes. (Shain, 2001) Developing a healthy workplace provides an opportunity to improve the health of your organization and to improve its public image and profile. It also offers the chance to curb organizational health costs and directly affect your bottom line. (Jones, 2005) When employees experience a supportive work environment, costs related to illness, disability and absenteeism are lowered and employee satisfaction and productivity are increased. (Shain and Suurvali, 2001) Better management of employees can be an important key to becoming an employer of choice and attracting and retaining talented staff. (Yardly, 2006)
Organizational Culture
Culture found in:
Espoused Value
Basic Assumptions
Observable Artefacts
Espoused Value:
Those values championed by a companys leadership.
Basic Assumptions
Underlying (often unconscious) determinants of an organizations attitudes, thought processes and actions.
Observable Artefacts
Architecture & Physical Surroundings Products Technologies Style (clothing - art - publications) Published Values / Mission Statements
Organizational Culture
Myths / Stories / Rituals
The different aspects of cultural web are as follows: Stories The past events and people talked about inside and outside the company. Who and what the company chooses to immortalize says a great deal about what it values, and perceives as great behavior. Rituals and Routines The daily behavior and actions of people that signal acceptable behavior. This determines what is expected to happen in given situations, and what is valued by management. Symbols The visual representations of the company including logos, how plush the offices are, and the formal or informal dress codes. Organizational Structure - This includes both the structure defined by the organization chart, and the unwritten lines of power and influence that indicate whose contributions are most valued. Control Systems - The ways that the organization is controlled. These include financial systems, quality systems, and rewards (including the way they are measured and distributed within the organization.) Power Structures - The pockets of real power in the company. This may involve one or two
Organizational Culture
key senior executives, a whole group of executives, or even a department. The key is that these people have the greatest amount of influence on decisions, operations, and strategic direction. All these aspects, which make up the cultural web, help define and develop the culture of an organization. An organizations culture can be disseminated by analyzing each aspect of the cultural web.
Focuses on control, in this category it is thought that those in power always hold absolute control over the subordinates, and any opposition is to be suppressed (Chao et al 2011). Role orientated:
This stresses the roles expectation and regulation, and the wish is for the organization to operate under law and order, while the attention is on legality and responsibility (Chao et al 2011). Task orientated:
The highest value is to reach organizational objectives, and ones contribution towards the objectives is determined when evaluating the values of an organizations structure, functions and actions (Chao et al 2011).
People orientated:
An organization is designed and built to suit the members needs and satisfy individual needs that cannot be achieved otherwise. Based on organizational duties and attitude towards the environment, Wallach (1983) separated organizational structure and obligations clearly.
Organizational Culture
Tasks are mostly standardized or fixed and are based on control and authority (Chao et al 2011).
THCU categories
Similarly THCU (2009) mentioned following categories of culture in the organizations:
A hierarchy culture is often found in formal, structured organizations that emphasize smooth running, stability, predictability and efficiency. These organizations rely on formal rules and policies. Because the environment is relatively stable, tasks and functions are usually integrated and coordinated and uniformity in products and services is maintained. Hierarchical organizations tend to rely on clear lines of decision-making authority, standardized rules and procedures. Control and accountability mechanisms are valued as the keys to success (THCU 2009). The Market Culture
Market culture organizations tend to be oriented toward the external environment and are focused on transactions with external constituencies such as suppliers, customers, contractors, licensees, unions and regulators. Unlike a hierarchy, where internal control is maintained by rules, specialized jobs, and centralized decisions, the market culture operates primarily through economic market mechanisms, such as monetary exchange. Profitability, bottom-line results, strength in market niches, stretch targets, and secure customer bases is primary objectives of the organization. Market oriented cultures are results-oriented and emphasize winning (THCU 2009).
Organizational Culture
The Clan Culture
Clan culture is in family type organizations that emphasize shared values and goals, cohesion, inclusion, individuality and a sense of engagement. They sometimes seem more like extended families than economic entities. Rather than relying on rules and procedures, clan-type firms focus on teamwork, employee involvement programs and corporate commitment to employees (THCU 2009).
Describes an organizational culture that is based on inequality, of access to resources. It has a single source of power from which rays of influence spread throughout the organizational. This means that power is centralized and organizational members are connected to the centre by functional and specialist strings. Role dimension:
This type of culture focuses mainly on job description and specialization. In other words, work is controlled by procedures and rules that underlie the job description, which is more important than the person who fills the position. Achievement dimension:
This often refers to a task culture, which entails organizational members focusing on realizing the set purpose and goals of the organization. The main strategic objective of this culture is to bring the right people together, in order to achieve the organizational goals.
Organizational Culture
Support dimension:
Describes an organizational climate that is based on mutual trust between the individual and the organization. A support-oriented organization exists solely for the individuals who comprise it, and may be represented diagrammatically as a cluster in which no individual dominates. Hofstede (1980) also mentioned following four criteria, which are labelled by as dimensions; these are Power Distance, Uncertainty Avoidance, Individualism-Collectivism, and Masculinity-Femininity (Manetje & Martins 2009).
Organizational Culture
Relationship between Organization Culture and Organizational Performance
According to iek and zer (2011) it has been contended that organizational culture can enhance organizational performance by energizing and motivating employees, unifying people around shared goals, and shaping and guiding employee behaviour. Some researchers asserted that organizational culture could provide a source of sustained competitive advantage for firms, particularly when it is seen as a firm-level resource that is valuable, rare, and difficult to imitate. An organization's cultural norms strongly affect all who are involved in the organization. Organizational culture with a development and innovation orientation had a direct effect on a firms innovation performance.
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Organizational Culture
was closely followed by the substantial work, which suggested that organizational cultures consist of cognitive systems explaining how people think, reason, and make decisions. Differing levels of culture, arguing that at the deepest level, culture consists of a complex set of values, assumptions, and beliefs that define the ways in which a firm conducts its business were also noted. Trefry (2006) narrated that organizational culture has been one of the most influential concepts and biggest management buzzwords of the last several decades. The term organizational culture appeared during the 1960s as a synonym for organizational climate. "Corporate culture" became a common management buzzword in the early 1980s after the publication of several popular press books. Although academic and popular management literature have reflected interrelated themes regarding culture and its effects, the pervasive assumption has been that organizational culture is closely related to organizational effectiveness. In practice, ambiguity of the concept has resulted in culture being used as a proxy for various phenomena affecting organizational performance. Thus culture often becomes a comfortably vague and all-inclusive reason for organizational problems.
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Introduction of Companies
About KONE
KONE, one of the global leaders in the elevator and escalator industry, was founded in 1910 and celebrated its centennial anniversary in 2010. The companys objective is to offer the best People Flow experience by developing and delivering solutions that enable people to move smoothly, safely, comfortably and without waiting in buildings in an increasingly urbanizing environment. KONE provides innovative and eco-efficient solutions for elevators, escalators and automatic building doors. We support our customers every step of the way; from design, manufacturing and installation to maintenance and modernization. Our commitment to customers is present in all KONE solutions. This makes us a reliable partner throughout the life-cycle of the building. We challenge the conventional wisdom of the industry. We are fast, flexible, and we have a well-deserved reputation as a technology leader, with such innovations as KONE MonoSpace, KONE MaxiSpace, and KONE InnoTrack. You can experience these innovations in architectural landmarks such as the Trump Tower in Chicago, the 30 St Mary Axe building in London, the Schiphol Airport in Amsterdam and the Beijing National Grand Theatre in China. KONE employs approximately 33,800 dedicated experts to serve you globally and locally in over 50 countries. In 2010, KONE had annual net sales of EUR 5 billion.
Kone India
KONE started business in India more than 25 years ago and is today one of the largest elevator companys in the Indian elevator market. It employs about 2800 people in the country, today.
KONEs factory in Chennai produces elevators for the Indian market with some exports to Bangladesh, Nepal and Sri Lanka. Chennai additionally forms a base for modernization and supports other Asian-Pacific markets such as Australia, Singapore and Malaysia. The factory has a training centre where KONEs installation engineers and field mechanics are trained to
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meet KONE Indias strong reputation for high quality and non-compromised safety, as well as the expectations of Indian customers, when installing and maintaining elevators and escalators. KONE serves customers all around India through its 40 branches.
The Indian Technology & Engineering centre located in Chennai is a key resource to support global functions. This centre will be a testing hub, which would support the latest technology and development of future KONE solutions. Although KONEs Indian operations was established to meet local demands, KONE Elevator Indias role is growing year by year and India clearly has a lot of potential to develop into an export base for other Asian markets. In terms of engineering and global software, KONE India already forms an integral part of KONEs global business network, providing services for KONE business units in Europe, North America and Asia.
Customers
Our key customers are builders, building owners, facility managers, and developers. In addition, architects, authorities, and consultants are key parties in the decision making process regarding elevators and escalators. We have segmented the market according to the purpose of the building. The main segments are residential buildings, hotels, office and retail buildings, infrastructure, and medical buildings. We also serve special buildings such as leisure and education centres, industrial properties, and ships. We serve hundreds of thousands of customers across the globe, the majority of which are maintenance customers. Our maintenance customers range from small facility management companies serving a single building to large global retail or hotel chains.
Locations
We operate through more than 1,000 offices around the world. We have eight global production units located in our main markets, as well as seven global R&D centres. In
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addition, KONE has authorized distributors in over 60 countries. KONEs head office is in Helsinki, Finland.
Rapid urbanization
Urbanization is the single most important megatrend within the global elevator and escalator industry. It is expected to drive demand for years to come. For the first time in history, an equal number of people live in urban and rural areas. The concentration of people in urban areas increases the importance of moving them efficiently from one point to another. The growth of urban areas is most evident in Asia, where long-term population growth and migration from rural communities is expected to continue.
Aging population
The global demographic structure is changing. In particular, the worlds population is aging at an unprecedented rate. The growing number of older people raises the importance of accessibility in buildings and urban infrastructure. An elevator can help elderly residents live in their apartments longer, facilitate the lives of all residents in the building, as well as add value to an existing property.
Importance of safety
Urban infrastructure systems in certain markets are aging. National and international safety codes and standards play a key role in determining the safety level of elevators and
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escalators. Particularly in Europe, many countries have adopted strict standards for safety and modernization in recent years.
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redefined at regular intervals in response to both achievements and changes in the business environment. We have also refined the three high-priority areas that are the backbone for everything we do. These are safety, quality, and simplification. These high-priority areas support our key development programs and help bring the KONE strategy to life. These development programs and strategic targets are founded on our core values of delighting the customer, energy for renewal, passion for performance, and striving to win together.
KONEs values
Our values guide the behaviour of our personnel towards achieving our strategy. KONEs values are:
Winning Together
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We can win only by working together. We encourage participation, and we share information and ideas. We trust and respect each other and recognize good performance. Our behaviour is characterized by the highest ethical standards.
KONE's organization
The KONE organization is divided into two business lines, Service Business and New Equipment Business, and five geographical areas, Central and North Europe, West and South Europe, Greater China, Asia-Pacific and Middle East, and the Americas. In 2010, the Major Projects unit, a separate business line, was combined with the New Equipment Business. KONE also established a new Customer Experience unit to further enhance its customer focus.
Management
KONE Corporations management consists of the Board of Directors, the President and CEO and the Executive Board.
Board of Directors The Board of Directors duties and responsibilities include drawing up of the Board of Directors report, interim reports and financial statements, ensuring the proper organization
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and surveillance of the accounting and asset management, the preparation of proposals for the General Meeting and the convocation of the General Meetings, the approval and confirmation of strategic guidelines and the principles of risk management, the ratification of annual budgets and plans the appointment of a full-time Chairman of the Board and a President & CEO, and decisions on the terms and conditions of their employment, decisions on the companys corporate structure, decisions on major acquisitions and investments, and decisions on other matters falling under the Boards responsibility by law. The Board of Directors has appointed two permanent committees consisting of its members: the Audit Committee and the Nomination and Compensation Committee. President and CEO The Chairman of the Board and the President and CEO are responsible for ensuring that the targets, plans, strategies and goals set by the Board of Directors are carried out within the KONE organization. In addition, the President and CEO is responsible for the operative leadership within the scope of the strategic and operative plans, budgets and action plans approved by KONE Corporations Board of Directors. The President presents issues concerning the operations and is responsible for implementing the decisions of the Board. Executive Board The Executive Board supports the President and CEO in executing the corporate strategy. The Executive Board follows business developments, initiates actions and defines operative principles and methods in accordance with guidelines handed down by the Board of Directors and by the President and CEO.
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The Board of Directors Audit Committee comprises Antti Herlin (Chairman), Sirkka Hmlinen-Lindfors, Anne Brunila and Jussi Herlin. Sirkka Hmlinen-Lindfors and Anne Brunila are independent of both the company and of significant shareholders and Jussi Herlin is independent of the company.
People
Building a great place to work
In 2011, KONE had an average of 35,000 employees in more than 50 countries around the world. Our objective is to provide every employee with fair treatment, equal opportunities, and a safe working environment, as well as to make KONE a great place to work.
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methods to ensure the safety of themselves and anyone else who may be affected by their activities. Members of the senior management teams periodically participate in workplace safety audits, and immediate corrective actions are taken if deviations are identified. If obstacles to safe working are identified, the work in question stops until a safe way to continue has been approved. To support continuous improvement in KONE's safety performance, a procedure is in place to report and investigate accidents. The underlying root causes are identified and corrective actions implemented to ensure that the accident or near-miss incident is not repeated. KONE organizes quarterly global safety network meetings to share lessons learned from accidents and near-miss incidents. The meetings also serve as a forum for sharing good practices and discussing concerns.
In order to see the connection between their daily tasks and KONE's global strategy, employees need to first understand what the strategy is all about. KONE's strategy is brought to life through a set of concrete actions with clear targets that all employees can contribute to in their daily work. In 2011, KONE's strategy was discussed regularly as part of various employee events and meetings throughout the year, and the key messages were visible through a wide range of channels, including videos, leaflets, posters, magazines, and the KONE intranet.
For example, KONE China devised and implemented a program to engage employees around the strategy. Local management planned and ran a roadshow covering 12 locations in 10 different districts in China. Each event was built around a common agenda. A management presentation about KONE's strategy was followed by an interactive workshop session where participants were engaged in discussion through a set of exercises. The workshops were successful in creating concrete connections to the KONE strategy through a set of actions at regional, branch, team, and individual levels.
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Engaging our employees Employee Engagement development program
At the beginning of 2011, we defined Employee Engagement as one of our five new development programs. The Employee Engagement development program builds on the earlier People Leadership program, focusing on the further improvement of leadership capabilities, on providing growth and development opportunities for our employees, and on ensuring wellbeing and safety at work. During 2011, KONE began putting the program into action by building an integrated framework for employee well-being and by completing a feasibility study on flexible working practices as well as an employee benefit audit. The plan also included redesigning the global leadership development programs, delivering training on mentoring, and taking several measures that aim to facilitate job rotation.
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and future business needs. In this process, we evaluate our management, identify successors, plan for career development, and identify potential candidates for future management positions. In 2011 we held several workshops to accelerate the identification and development of future leaders and successor candidates, with approximately 1,000 employees being included in the process. The delivery of learning programs such as the Supervisor Development Program for first-level managers and the KONE Leader program for middle management continued as planned. In total, approximately 2,500 first-level and 1,300 middle management managers have been trained during the first round of the program. A new program for top management was piloted in preparation for full implementation in 2012. We also continued to develop our virtual training courses and materials, and launched a recruitment training package globally.
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provides IT services to customers in the Americas, Europe, and Japan. The India and Asia Pac IT Services and Products segment operates in the Indian IT market and offers IT products and services to the companies in India, Asia-Pacific, and the Middle East region. Consumer Care and Lighting segment engages in the manufacture and sale of consumer care and lighting products. The consumer care products include soaps and toiletries, baby products, talcum powders, and hydrogenated cooking oils. The lighting products include light bulbs, fluorescent tubes, and luminaries. In the 1970s and 1980s it began to expand and made forays into computing. The Indian promoters hold more than 80 percent of the total share capital of the company while the Indian public holds about 7 percent and institutional investors hold about 6 percent. Wipro's has clients across a spectrum of industries such as consumer electronics, finance, Government, insurance, manufacturing, media &
entertainment, mobile devices, Telecom equipment vendors and service providers, travel & transportation etc. To these clients the company offers services such as application
development, deployment & maintenance, business intelligence, business consulting, CRM, data warehousing.
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process to the next. This separation contributes to agility and scalability, allowing client organizations to ramp up or ramp down efforts based on demand. Shared operations through job cards and service requests: Leveraging shared operations allows the organization to align teams centrally for focal areas, including types of technology and types of request or function or other bundling options. Organizations can request handling through job cards and service requests In line with service catalogues and service level agreements, serving to balance workloads with minimum and maximum thresholds on utilization levels for employees. Flexible operations: By identifying a balanced mix of core and flexible resources as a strategic component of scalable operations, clients can maintain a standard base of employees to run baseline operations, or augment with an adaptive workforce during peak periods for efficient and effective ramp-up. Wipros Optimum Skill Versatility Index enables clients to understand required skills across resources that help them remain prepared and flexible by classifying resources into groups or teams based on specific technology focus and functionality. Demand management: Demand management enables organizations to develop rolling production schedules that capture baseline demand, and then leverage economies of scale and diversified services catalogues to offset demand fluctuations that arise from inaccurate forecasts and unpredicted spikes. Production Planning and Control mechanisms with baseline and projected demand help establish variable demand environments. Optimization of Cost of Service: Benefits from cost of service optimization include shared infrastructure, tools, environments and testing, reusable and standardized components, full or semi automation, and quick change-over processes, such as Lean production methods that reduce waste. Closed Loop Operations: A closed-loop approach to operations brings analysis of post-deployment feedback to clients, providing an open dialogue for continuous improvements to operations. This final principle of effective organizational structure allows Wipro to closely monitor changes and developments after a transformation is completed.
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Wipros success in creating effective organizational designs stems from its comprehensive view of IT organizations and its ability to isolate key components necessary to be integrated into design frameworks.
As the above graph describes, Wipro asserts that leadership is the primary component required in an effective organization redesign. Leaders must possess a clear vision of the evolution and be able to prioritize tasks to empower the workforce and motivate the troops behind managements transformational agenda of retooling the IT organization. Cohesion in the leadership team is essential, and Wipro believes it is the tie that binds a transformation and leads efforts from idea creation to implementation. Just as leaders require employees to be flexible as IT organizations undergo operational improvements and process shifts, leaders must possess the capacity for change and must stand by their message. Clear decision making and structure is the second component of effective organization designs, as roles and accountability for decisions must be transparent, clearly articulated and understood to establish ownership of the transformation. Organizational structure must support overall objectives of consolidation or restructuring to provide a chain of command that affords a clear path for inquiries and clarity into each layer of the organization.
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People constitute the third pillar of effective organization design, as successful hinges on the capabilities of employees to perform both individually and collectively as an organization. To drive productivity and employee satisfaction during turbulent times, Wipro believes leaders must implement performance measures and incentives that closely align with corporate objectives. Unification of employees across the organization is critical to a successful transformation, minimizing the risk of inefficiencies that may arise from disparate workers. The fourth pillar, Work Process and Systems, includes successful execution of programmatic work and processes and effective and efficient support of processes and systems. The final pillar, Culture, encompasses high-performance values and behaviors as well as capacity and willingness to change as a group.
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have different service requirements (resulting in different programs provided)
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Clearly define goals and objectives for each role Provide on-boarding/ training on service-oriented business model for team members Technology Infrastructure Provision of appropriate technology tools to support software development life cycle, configuration management and reporting
Wipros IT organization redesign outlines three critical success factors that enable successful transformation and consolidation to build an efficient IT operating unit: Utilize a comprehensive design approach, including strategy processes and people considerations: Clearly defined governance, responsibilities and service levels for a centralized IT organization is essential for understanding current organizational processes and functions and determining areas that should be reshaped to successfully transform the business. Focus on process excellence, ongoing quality and service improvement: Best practices and compliance with industry standards are essential for continuous high efficiency and include such elements as CMMI and ITIL. To strive for optimal efficiency and lower operational costs and higher throughput, organizations must continually adopt improved standards and processes, allowing for the cost and quality benefits to be translated to the client. By setting realistic, achievable near-term and long-term goals, organizations can continually improve their organizational effectiveness while maintaining a disciplined approach through a step-by-step improvement program. Develop staged implementation roadmaps according to the organizations change readiness: Organizations need a plan of action; developing a complete road map to organization transformation can reduce the risk of setbacks along the way.
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Google embodies the team orientation primary characteristic of organizational culture. As stated earlier, Google encourages its employees to work and play together so that a family bond is formed. According to Google (2007), "Meetings that would take hours elsewhere are frequently little more than a conversation in line for lunch and few walls separate those who write code from those who write checks." This really does reinforce a team environment. Everyone is pretty much on the same level and everyone works together. The limited walls in the building help the employees to feel like a group rather than an outsider in another department. Google's organizational culture is very strong. Google hires people that embody their company's values and feel the same intense desire for unlimited amounts of information. This desire allows the company's employees to work towards the same goals and intensifies the bond that they share. Google tends to have a low turn over rate and receives over 1,300 applications a day (Fortune, 2007). Google's culture is a combination of things. It is ethical, customer-responsive, and spiritual. Google encourages its employees to be creative in problem solving which sometimes calls for risk taking. These employees are allowed just enough freedom in their jobs that they do not take it for granted and this keeps them on ethical ground. The Google employees also have a sense of team instead of self so this encourages them to work together to achieve goals rather than compete against one another. This also prevents unethical behavior. Google's low formalization and service-oriented employees work to be customer-responsive. They are allowed the freedom to make decisions that benefit Google users. The employees strive to provide the best service available and to do this they must be able to relate to their users. They understand that "thinking outside of the box" is what they are known for so they go above and beyond what others would do to satisfy a customer need while maintaining company values. This "outside of the box" type of business also puts the company into a spiritual type of organization. Employees are rewarded for individual successes and for team
accomplishments. They are also encouraged to have fun with their job. Google's ability to allow their employees to have fun while at work is motivating in itself. This motivation shows
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itself in the work as well. It is a give and take relationship; both sides get something out of it. Google has a unique way of conducting business that appeals too many. It is this sort of culture that creates individuals that have the desire and the motivation to stay with a company. What Google believes in
Focus on the user and all else will follow.
Since the beginning, weve focused on providing the best user experience possible. Whether were designing a new Internet browser or a new tweak to the look of the homepage, we take great care to ensure that they will ultimately serve you, rather than our own internal goal or bottom line. Our homepage interface is clear and simple, and pages load instantly. Placement in search results is never sold to anyone, and advertising is not only clearly marked as such, it offers relevant content and is not distracting. And when we build new tools and applications, we believe they should work so well you dont have to consider how they might have been designed differently.
Its best to do one thing really, really well.
Google does search. With one of the worlds largest research groups focused exclusively on solving search problems, we know what we do well, and how we could do it better. Through continued iteration on difficult problems, weve been able to solve complex issues and provide continuous improvements to a service that already makes finding information a fast and seamless experience for millions of people. Our dedication to improving search helps us apply what weve learned to new products, like Gmail and Google Maps. Our hope is to bring the power of search to previously unexplored areas, and to help people access and use even more of the ever-expanding information in their lives.
Fast is better than slow.
Google knows your time is valuable, so when youre seeking an answer on the web you want it right awayand we aim to please. We may be the only people in the world who can say our goal is to have people leave our website as quickly as possible. By shaving excess bits and bytes from our pages and increasing the efficiency of our serving environment, weve broken
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our own speed records many times over, so that the average response time on a search result is a fraction of a second. We keep speed in mind with each new product we release, whether its a mobile application or Google Chrome, a browser designed to be fast enough for the modern web. And we continue to work on making it all go even faster.
Democracy on the web works
Google search works because it relies on the millions of individuals posting links on websites to help determine which other sites offer content of value. We assess the importance of every web page using more than 200 signals and a variety of techniques, including our patented PageRank algorithm, which analyses which sites have been voted to be the best sources of information by other pages across the web. As the web gets bigger, this approach actually improves, as each new site is another point of information and another vote to be counted. In the same vein, we are active in open source software development, where innovation takes place through the collective effort of many programmers.
You dont need to be at your desk to need an answer
The world is increasingly mobile: people want access to information wherever they are, whenever they need it. Were pioneering new technologies and offering new solutions for mobile services that help people all over the globe to do any number of tasks on their phone, from checking email and calendar events to watching videos, not to mention the several different ways to access Google search on a phone. In addition, were hoping to fuel greater innovation for mobile users everywhere with Android, a free, open source mobile platform. Android brings the openness that shaped the Internet to the mobile world. Not only does Android benefit consumers, who have more choice and innovative new mobile experiences, but it opens up revenue opportunities for carriers, manufacturers and developers.
You can make money without doing evil
Google is a business. The revenue we generate is derived from offering search technology to companies and from the sale of advertising displayed on our site and on other sites across the web. Hundreds of thousands of advertisers worldwide use AdWords to promote their products; hundreds of thousands of publishers take advantage of our AdSense program to deliver ads relevant to their site content. To ensure that were ultimately serving all our users
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(whether they are advertisers or not), we have a set of guiding principles for our advertising programs and practices:
We dont allow ads to be displayed on our results pages unless they are relevant where they are shown. And we firmly believe that ads can provide useful information if, and only if, they are relevant to what you wish to findso its possible that certain searches wont lead to any ads at all.
We believe that advertising can be effective without being flashy. We dont accept popup advertising, which interferes with your ability to see the content youve requested. Weve found that text ads that are relevant to the person reading them draw much higher click through rates than ads appearing randomly. Any advertiser, whether small or large, can take advantage of this highly targeted medium.
Advertising on Google is always clearly identified as a Sponsored Link, so it does not compromise the integrity of our search results. We never manipulate rankings to put our partners higher in our search results and no one can buy better PageRank. Our users trust our objectivity and no short-term gain could ever justify breaching that trust.
Google indexed more of the HTML pages on the Internet than any other search service, our engineers turned their attention to information that was not as readily accessible. Sometimes it was just a matter of integrating new databases into search, such as adding a phone number and address lookup and a business directory. Other efforts required a bit more creativity, like adding the ability to search news archives, patents, academic journals, billions of images and millions of books. And our researchers continue looking into ways to bring all the worlds information to people seeking answers.
The need for information crosses all borders.
Google was founded in California, but our mission is to facilitate access to information for the entire world, and in every language. To that end, we have offices in more than 60 countries, maintain more than 180 Internet domains, and serve more than half of our results to people living outside the United States. We offer Googles search interface in more than 130
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languages, offer people the ability to restrict results to content written in their own language, and aim to provide the rest of our applications and products in as many languages and accessible formats as possible. Using our translation tools, people can discover content written on the other side of the world in languages they dont speak. With these tools and the help of volunteer translators, we have been able to greatly improve both the variety and quality of services we can offer in even the most farflung corners of the globe.
You can be serious without a suit
The founders built Google around the idea that work should be challenging, and the challenge should be fun. We believe that great, creative things are more likely to happen with the right company cultureand that doesnt just mean lava lamps and rubber balls. There is an emphasis on team achievements and pride in individual accomplishments that contribute to our overall success. We put great stock in our employeesenergetic, passionate people from diverse backgrounds with creative approaches to work, play and life. Our atmosphere may be casual, but as new ideas emerge in a caf line, at a team meeting or at the gym, they are traded, tested and put into practice with dizzying speedand they may be the launch pad for a new project destined for worldwide use.
Great just isnt good enough
Google sees being great at something as a starting point, not an endpoint. We set ourselves goals we know we cant reach yet, because we know that by stretching to meet them we can get further than we expected. Through innovation and iteration, we aim to take things that work well and improve upon them in unexpected ways. For example, when one of our engineers saw that search worked well for properly spelled words, he wondered about how it handled typos. That led him to create an intuitive and more helpful spell checker. Even if you dont know exactly what youre looking for, finding an answer on the web is our problem, not yours. We try to anticipate needs not yet articulated by our global audience, and meet them with products and services that set new standards. When we launched Gmail, it had more storage space than any email service available. In retrospect offering that seems obviousbut thats because now we have new standards for email storage. Those are the kinds of changes we seek to make, and were always looking for new places where we can
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make a difference. Ultimately, our constant dissatisfaction with the way things are becomes the driving force behind everything we do.
Management team
Larry Page and Sergey Brin founded Google in September 1998. Since then, the company has grown to more than 30,000 employees worldwide, with a management team that represents some of the most experienced technology professionals in the industry.
Board of Directors
Larry Page, CEO Sergey Brin, Co-Founder Eric E. Schmidt, Executive Chairman
Recruitment
Sergey and Larry also focused on recruiting people with the right frame of mind. They were themselves personally involved in the recruitment process. In order to attract high performing candidates, Google posted top ten reasons to work for Google on its website.
Google recruited people with diverse skills and qualities. While recruiting, Google attached a lot of importance to academic excellence as revealed in grade scores in SAT and other graduate exams. To get an interview call from Google, a person had to be from a top-ranking university.
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Global R&D facility. Retention of the man-power is the best in the industry. Impressive list of clientele. Relatively lower receivable compared to the industry average. Diversified skill base across service lines Delivery capabilities & client satisfaction Commitment to go the extra mile Technological partnership with other software companies Low cost advantage MEGA Partnership Cisco, EMC, Microsoft, Oracle and SAP
(WEAKNESS)
Low operating margin of the other group companies. Free floating stock is very less. Domestic market was huge but was underdeveloped Small player in global market Limited domain Clients not trusting the capabilities of Indian Software Cos.
IMPLICATION OF KONE
Costumer designed products Market share leadership Strong management team Strong brand equity Reputation management
(STRENGTH)
Fourth largest manufactures of elevators, door and gates, and escalators Herlin family owned since 1924 One of the largest manufactures of elevator products. Their brands of elevators are known for lasting a long time without and problems and are extremely efficient.
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Many analysts feel that Google's zero per cent employee turnover rate during the dotcom boom, was a testament to its salubrious organizational culture. But not everyone was convinced that Google had got it right in terms of its work culture. They felt that company's culture was not set to manage its growth. A 12-hour working day had become norm at the company. Google's recruitment process was also criticized by analysts.
It was pointed out that Google had become too narrow in its recruitment by focusing only on the academic records and graduate ranks of the applicants rather than on experience. Commenting on the recruitment process, one Googler said, "If you've been at Cisco for 20 years, they don't want you." But the management defended the recruitment process saying that they valued intelligence and brainpower more than experience.
Conclusions
Organizational culture is the pattern of beliefs, values and learned ways of coping with experience that have developed during the course of an organizations history, and which tend to be manifested in its material arrangements and in the behaviours of its members. From the definitions and above description it is highlighted that organizational culture comprises created assumptions, which are accepted as a way of doing things and are passed on to new members of an organization. For new employees, this would mean adaptive
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behaviour within the organization, leading to new belief systems. This new and adaptive behaviour, instilled through organizational values and beliefs, is associated with rituals, myths and symbols to reinforce the core assumptions of organizational culture (Manetje & Martins (2009). Moreover, organizational performance has been directly linked to organizational culture Schimmoeller (2010). It is concluded that as Organizational culture is very much effective in managing organizations then in the words of Ojo (2009) the culture of the organization should be developed to support continuous improvement, improve employees style of performing their job and thus develop quality awareness.
References
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Christie, P. Maria Joseph; Ik-Whan G. Kwon; Philipp A. Stoeberl and Raymond Baumhart (2003) A Cross-Cultural Comparison of Ethical Attitudes of Business Managers: India, Korea and the United States, Journal of Business Ethics Vol. 46, pp. 263-287, 2003, 2003 Kluwer Academic Publishers, Printed in the Netherlands iek, Ik and zer, Bilal (2011) The Effect of Outsourcing Human Resource on Organizational Performance: The Role of Organizational Culture, International Journal of Business and Management Studies, Vol. 3, No 2, 2011 Long, David De (1997) Building the Knowledge-Based Organization: How Culture Drives Knowledge Behaviours, Working Paper, May 1997, Centre for Business Innovation, 1997 Ernst & Young LLP Manetje, O. and Martins, N (2009) The Relationship between Organizational Culture and Organizational Commitment, Southern African Business Review, Vol. 13, No. 1, 2009, pp. 87-111 Ojo, Olu. (2009) Impact Assessment of Corporate Culture on Employee Job Performance, Business Intelligence Journal, Vol. 2 No. 2 pp.388-397, - August, 2009 Schein, Edgar H. (1990) Organizational Culture, American Psychologist, Vol. 45, No. 2, pp.109-119, February 1990, Copyright 1990 by the American Psychological Association, Inc. Schimmoeller, Leon J. (2010) Leadership Styles in Competing Organizational Cultures Leadership Review, Kravis Leadership Institute, Claremont McKenna College, Vol. 10, Summer 2010 Shakeel, Mohsin; Muhammad Mazhar Khan and Dr. Muhammad Aslam Khan (2011) Impact of culture on Business Ethics, Far East Journal of Psychology and Business Vol. 3, No 2, May 2011 Srivastava, A. K. (2009) Heterogeneity of Organizational Climate, Research and Practice in Human Resource Management, Vol.7, No. 2, pp.1-13 THCU (2009) Organizational Culture: from Assessment to Action, The Health Communication Unit at the Centre for Health Promotion, University of Toronto, Version 1.0, March 2009, www.thcu.ca/workplace.
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Trefry, Mary G. (2006) A Double-Edged Sword: Organizational Culture in Multicultural Organizations, International Journal of Management Vol. 23, No. 3, Part 2, Sept 2006 Wallace, Joseph; James Hunt and Christopher Richards (1999) The Relationship between Organizational Culture, Organizational Climate and Managerial Values, The International Journal of Public Sector Management, Vol. 12 No. 7, 1999, pp. 548-564, http://www.emeraldlibrary.com Yafang Tsai (2011) Relationship between Organizational Culture, Leadership behaviour and Job Satisfaction, Tsai BMC Health Services Research 2011, 11:98 http://www.biomedcentral.com/1472-6963/11/98 Yazici, Hulya Julie (2009) The Role of Project Management Maturity and Organizational Culture in Perceived Performance, Project Management Journal, Vol. 40, No. 3, pp.1433
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