Corporate Culture AND Strategic Management
Corporate Culture AND Strategic Management
Corporate Culture
It is a set of assumptions that members of an organization share in common. The beliefs and behaviors that determine how a company's employees and management interact and handle outside business transactions. A company's culture will be reflected in its dress code, business hours, office setup, employee benefits, turnover, hiring decisions, treatment of clients, client satisfaction and every other aspect of operations.
Corporate Culture is often referred to as Organizational DNA or Organizational Soul. It is the fundamental contributor of the success or failure of corporate strategies. Reflected in companys
values, business principles and ethical standards relationships with stakeholders approaches to people management and problem solving
Innovation, thinking Actual performance Seniority ,conformity and upgradation to values and of knowledge or results achieved loyalty
Managerial style of Information gathering, Selective information bureaucratic mode usage and intuitive planning & of functioning, risk and quantitative decision making aversion and nondecision making of entrepreneurial entrepreneurial decision making nature Use of elegant, Reliance on business Management sophisticated and sense and no-frills systems adopted rational systems systems geared to which degenerate quick action due to low usage
Comprehensive, Primary use of verbal formal and written reporting and reporting remedial action
Approaches to create strategy-supportive culture To Ignore Corporate Culture To Adapt Strategy Implementation to Suit Corporate Culture To Change the Corporate Culture to Suit Strategic Requirements To Change the Strategy to Fit the Corporate Culture
WHAT IS POWER?
Interpersonal (or intergroup) relationship in which one individual (or group) can cause another individual (or group) to take an action that it would not otherwise take. Involves changing the behavior of another person A has power over person B if B believes A can force B to comply.
TYPES OF POWER
Reward Power- arises from the ability of managers to reward positive outcomes Coercive Power (punishment power)- arises from the ability of managers to penalize negative outcomes Legitimate Power (authority)-arises from the ability of mangers to use position to influence behavior
Referent Power (charisma)- arises from the ability of managers to create liking among subordinates due to charisma or personality
Expert Power- arises from the managers competence, knowledge and expertise that is acknowledged by others
POLITICS
Those activities taken within organizations to acquire, develop, and use power and other resources to obtain ones preferred outcome in a situation where there is uncertainty of outcome.
POLITICS
The use of power to influence decisions that achieve desired outcomes. 1. Self-interest 2. Decision-making process Uncertainty & disagreement
Power and politics often have negative connotations because people associate them with attempts to use organizational resources for personal advantage and to achieve personal goals at the expense of other goals.
Mintzberg says that the organization must..pull apart before it can pull together again In other words, strategists need to know when to use power and politics to get things done and when to shun politics and use of power to maintain harmony. Politics and power affect the way strategy is implemented and formulated
To know when to tread softly and rely on coalition management and consensus building and when to push through decisions and actions To lead strategy and not to dictate it, being patient till consensus emerges To let most negative decisions emerge as a group consensus rather than as a directive from the top To gather support for acceptable proposals and let the unacceptable ideas die a natural death
To reward organizational commitment and penalize negative or indifferent attitude To practice principled politics and use openness and honesty to counter and unprincipled politics