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CORPORATE CULTURE Aco Momcilovic HR Specialist L’Oreal Adria d.o.o.
Content Introduction Different Models Why it is important Cultural Fit How it is created (Examples, Interpretation) Cultural Interview Does It Make Difference? (Effectiveness) Examples Finish
Artifacts (visible organizational structure and processes) Values (strategy, goals, philosophy) Assumptions (unconscious beliefs, perceptions and feelings
Group Interaction Positive Results Norms of Behavior Shared Values CULTURE The emergence of culture
Strategic fit “Vision” (to be) communication communication “Strategy” (What do we need to focus on) “Culture” (How to behave along the way) communication Current situation “As it is”
DIFFERENT MODELS
Flexibility Open Systems Model: Human Relations Model: Goals:  HRM Development, Morale Goals:  Growth, Resource Acquisition Cultural Values: (Consensual) Cultural Values:  (Developmental) - Creativity - Inventiveness - Growth - Competiveness - Teamwork - Participation - Supportiveness Matching Strategy:           - Defender           - Prospector           - Analyzer Matching Strategy:             -Prospector Internal External Goals:  Stability and Control Goals:  Efficiency, Productivity Cultural Values:  (Hierarchical) Cultural Values: (Rational) - Task focus - Goal clarity - Efficiency - Performance - Centralization - Routinization, formalization - Stability, continuity, order - Predictable performance outcomes Matching Strategy:           - Defender Matching Strategy:             - Analyzer Rational Goal Model: Internal Process Model: Control
Role, Control, Goal andSoul Models
CONTROL
ROLE
GOAL
SOUL
In Riding theWaves of Culture, Fons Trompenaars In the same way, we believe that effective organisations focus attention not on one culture, but on an appropriate balance of the four cultures so that the best attributes of each enable the organisation to thrive systemic model - described three levels ofculture; 1) the explicit layer made up of artifacts and products and other observable signs, 2) themiddle layer of norms and values and 3) the implicit layer, which is comprised of basic assumptionsand beliefs.
Why is corporate culture so important? To survive and prosper in a ever-changing environment, adaptability is key  industries need more than gradual adjustment to changing circumstances; we need to shift paradigms The central challenge: to create and lead an adaptive enterprise
Cultural Fit Research A&DC – effects of cultural fit when Cultural Fit is absent employees report lack of engagement with their employer and their colleagues In small and mid-size businesses, it’s common for the company culture to reflect the person at the top.
One More Time With some examples
Corporate Culture ,[object Object]
Set of key behaviors, beliefs and shared understandings that are shared by members of the organization. ,[object Object],the correct way to think and act. ,[object Object],[object Object]
  Rites and ceremonies  -  Elaborate planned events conducted for the benefit of an     audience. -  Used to reinforce specific values or create a bond among people. -  Four types of rites and ceremonies: ,[object Object],[object Object]
  Annual awards night.
  Enhances social identities and increase status of employees.,[object Object]
  Refurbish social structures and improve organizational     functioning. ,[object Object],[object Object]
  Narratives based on true events that are shared among    organizational employees and told to new employees to inform     them about an organization. -  Stories keep alive the primary values of the organization. -  Commonly include company heroes or historic legends.
Corporate Culture ,[object Object],-  Physical artifacts use to focus attention on a specific item.   -  Nordstromexample: ,[object Object]
  Includes slogans and metaphors.
  3M – “at 3M the 11th commandment is never kill a new product idea.”
YEGA ,[object Object]
Does Culture Makes Difference?
System Effectiveness Constructive cultures promote a greater “exchange” between the organization and  members (and increase effectiveness) Aggressive/Defensive cultures fail to enhance members’ contributions and outcomes (and thus promote turnover) Passive/Defensive cultures reduce members’ contributions and outcomes     (and reduce effectiveness)
System Effectiveness Greater effort Higher performance More innovative solutions  ,[object Object],Outputs (to members)>  Inputs (from members) Higher satisfaction  Lower stress Greater inclusion & integration
Approval (3) Conventional (4) Dependent (5) Avoidance (6) Passive/Defensive Cultures
Aggressive/Defensive Cultures Oppositional (7) Power (8) Competitive (9) Perfectionistic (10)
Achievement (11) Self-Actualizing (12) Humanistic (1) Affiliative (2) Constructive Cultures
Differences between employees Life Styles Inventory (Descriptions by Others) Effectiveness in  Current Position  Top 10% (n = 487)
Differences between employees Life Styles Inventory (Descriptions by Others) Effectiveness in  Current Position Bottom 10% (n = 459)
166% Revenue 74% Stock Prices 1% Net Income IMPACT on Performance DefensiveCulture ConstructiveCulture 682% 4X! 901% 12X! 756%
Metamorphosis Organizational Culture – National Culture National Culture has bigger influence than corporate
Different Examples Imagine few extreme cultures
Art Gallery Visible aspects of cultural organization
LIBRARY Way to solve problems, documentation, politics, written communication ...
Church Holy place. Strategy, goals, philosophy

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Corporate Culture General 1.3.Blank

  • 1. CORPORATE CULTURE Aco Momcilovic HR Specialist L’Oreal Adria d.o.o.
  • 2. Content Introduction Different Models Why it is important Cultural Fit How it is created (Examples, Interpretation) Cultural Interview Does It Make Difference? (Effectiveness) Examples Finish
  • 3. Artifacts (visible organizational structure and processes) Values (strategy, goals, philosophy) Assumptions (unconscious beliefs, perceptions and feelings
  • 4. Group Interaction Positive Results Norms of Behavior Shared Values CULTURE The emergence of culture
  • 5. Strategic fit “Vision” (to be) communication communication “Strategy” (What do we need to focus on) “Culture” (How to behave along the way) communication Current situation “As it is”
  • 7. Flexibility Open Systems Model: Human Relations Model: Goals: HRM Development, Morale Goals: Growth, Resource Acquisition Cultural Values: (Consensual) Cultural Values: (Developmental) - Creativity - Inventiveness - Growth - Competiveness - Teamwork - Participation - Supportiveness Matching Strategy: - Defender - Prospector - Analyzer Matching Strategy: -Prospector Internal External Goals: Stability and Control Goals: Efficiency, Productivity Cultural Values: (Hierarchical) Cultural Values: (Rational) - Task focus - Goal clarity - Efficiency - Performance - Centralization - Routinization, formalization - Stability, continuity, order - Predictable performance outcomes Matching Strategy: - Defender Matching Strategy: - Analyzer Rational Goal Model: Internal Process Model: Control
  • 8. Role, Control, Goal andSoul Models
  • 10. ROLE
  • 11. GOAL
  • 12. SOUL
  • 13. In Riding theWaves of Culture, Fons Trompenaars In the same way, we believe that effective organisations focus attention not on one culture, but on an appropriate balance of the four cultures so that the best attributes of each enable the organisation to thrive systemic model - described three levels ofculture; 1) the explicit layer made up of artifacts and products and other observable signs, 2) themiddle layer of norms and values and 3) the implicit layer, which is comprised of basic assumptionsand beliefs.
  • 14. Why is corporate culture so important? To survive and prosper in a ever-changing environment, adaptability is key industries need more than gradual adjustment to changing circumstances; we need to shift paradigms The central challenge: to create and lead an adaptive enterprise
  • 15. Cultural Fit Research A&DC – effects of cultural fit when Cultural Fit is absent employees report lack of engagement with their employer and their colleagues In small and mid-size businesses, it’s common for the company culture to reflect the person at the top.
  • 16. One More Time With some examples
  • 17.
  • 18.
  • 19.
  • 20. Annual awards night.
  • 21.
  • 22.
  • 23. Narratives based on true events that are shared among organizational employees and told to new employees to inform them about an organization. - Stories keep alive the primary values of the organization. - Commonly include company heroes or historic legends.
  • 24.
  • 25. Includes slogans and metaphors.
  • 26. 3M – “at 3M the 11th commandment is never kill a new product idea.”
  • 27.
  • 28. Does Culture Makes Difference?
  • 29. System Effectiveness Constructive cultures promote a greater “exchange” between the organization and members (and increase effectiveness) Aggressive/Defensive cultures fail to enhance members’ contributions and outcomes (and thus promote turnover) Passive/Defensive cultures reduce members’ contributions and outcomes (and reduce effectiveness)
  • 30.
  • 31. Approval (3) Conventional (4) Dependent (5) Avoidance (6) Passive/Defensive Cultures
  • 32. Aggressive/Defensive Cultures Oppositional (7) Power (8) Competitive (9) Perfectionistic (10)
  • 33. Achievement (11) Self-Actualizing (12) Humanistic (1) Affiliative (2) Constructive Cultures
  • 34. Differences between employees Life Styles Inventory (Descriptions by Others) Effectiveness in Current Position Top 10% (n = 487)
  • 35. Differences between employees Life Styles Inventory (Descriptions by Others) Effectiveness in Current Position Bottom 10% (n = 459)
  • 36. 166% Revenue 74% Stock Prices 1% Net Income IMPACT on Performance DefensiveCulture ConstructiveCulture 682% 4X! 901% 12X! 756%
  • 37. Metamorphosis Organizational Culture – National Culture National Culture has bigger influence than corporate
  • 38. Different Examples Imagine few extreme cultures
  • 39. Art Gallery Visible aspects of cultural organization
  • 40. LIBRARY Way to solve problems, documentation, politics, written communication ...
  • 41. Church Holy place. Strategy, goals, philosophy
  • 43. CULTURES can be Changed! Who lives in caves? Xerox Daimler Chrysler Civil Rights & Increasing Tolerance NASCAR Boston Red Sox / Chicago White Sox The Catholic Church From Communism to Capitalism
  • 44. Leadership “Organizational cultures are created by leaders, and one of the most decisive functions ofleadership made well be the creation, the management, and – if and when that may becomenecessary – the destruction of culture.” A Culture of Continuous Learning – Key to Improving Organizational Culture
  • 45. THE END! How we do things round here!