Group 4: Corporate Culture
Abstract
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In this presentation, we will discuss corporate culture
We focus on talking about Competing Values Framework
The Competing Values Framework (CVF) is one of the most
influential and extensively used models in the area of organizational
culture research
Briefly describe the component of CVF
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Discuss the use of Organization Culture Assessment Instrument
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Introduction: Corporate Culture
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Many different definitions of the concept
The central notion is that culture relates to core organizational
values
All organizations have cultures or sets of values
Influence the way people behave
(1) the treatment of customers
(2) the treatment of the subordinate
(3) standards of organizational performance
(4) accountability.
Model
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Competing Value Framework (CVF)
Focus on the competing tensions and conflict occurred in the system
Two dimensions in the framework:
- Conflict between stability and change
- Conflict between internal and external environment
Competing Value Framework
Competing Value Framework
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human relations model
open system model
rational goal model
internal process model
an effective organization may need to perform well on all four sets
of criteria
Four organizational culture
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Group Culture
Developmental Culture (Adhocracy)
Rational Culture
Hierarchical Culture
Each represents one of the four major models organizational theory
Group Culture
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Concern with human relations model
Support flexibility
Maintain focus internally
Tends to be thinking in the interest of groups as a whole
Core value: Belonging, trust, participation
Motivation: membership, cohesiveness
Effectiveness criteria: member commitment, participation
Developmental Culture
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(Adhocracy)
Concern with open system model
Support flexibility
Focus on external environment
Willing to take risk
More able to develop a vision of the organization
Core Value: company growth, size and the competitiveness outside
Motivation factor: Creativity, Variety
Effectiveness criteria: market development, resources acquisition
Rational Culture
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Concerned about the rational goal model
Focus on goal achievement, organization performance
Tends to be directive, functional working behavior
Core value: pursuit on a well-defined objective
Motivation factor: competition and a successful achievement
Effectiveness criteria: planning, productivity, efficiency
Hierarchical Culture
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Concern about internal process model
Support stability
Tends to be conservative and cautious
Core value: executions of regulations
Motivation factor: security, order, rules
Effectiveness criteria: control, stability
Four organizational culture
Organization Culture Assessment Instrument (OCAI)
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assess six key dimensions of organizational culture
providing a picture of how your organization operates
and the values that characterize it
There are no right and wrong answer, but usually
different types of organization will produce similar
answers
OCAI method
Dominant Characteristics
 Organizational Leadership
 Management of Employees
 Organizational Glue
 Strategic Emphases
 Criteria of Success
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OCAI method
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Dominant organizational characteristics
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Group Culture: Personal, like a family
Developmental Culture (Adhocracy): Entrepreneurial, risk taking
Rational Culture: Competitive, achievement oriented
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Hierarchical Culture: Controlled and structured
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OCAI method
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Leadership style
Group Culture: facilitating
Developmental Culture (Adhocracy): innovative
Rational Culture: aggressive, result-oriented
Hierarchical Culture: coordinating, efficiency oriented
OCAI method
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Management of employees
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Group Culture: Teamwork, consensus, participation
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Developmental Culture (Adhocracy): freedom, uniqueness
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Rational Culture: Competitiveness and achievement
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Hierarchical Culture: Security, predictability
OCAI method
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Organizational glue
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Group Culture: Loyalty and mutual trust
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Developmental Culture (Adhocracy): Commitment to innovation,
development
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Rational Culture: achievement and goal accomplishment
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Hierarchical Culture: Formal rules and policies
OCAI method
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Strategic emphasis
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Group Culture: Human development, openness
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Developmental Culture (Adhocracy): Acquisition of resources,
creating new challenges
Rational Culture: Competitive actions and winning
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Hierarchical Culture: stability
OCAI method
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Criteria for success
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Group Culture: teamwork, concern for people
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Developmental Culture (Adhocracy): Unique and new products and
services
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Rational Culture: Winning in the marketplace
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Hierarchical Culture: efficient, low cost
Research
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Researcher: Eric A Goodman, Raymond F Zammuto, Blair D Gifford
Year: 2001
Named: THE COMPETING VALUES FRAMEWORK: UNDERSTANDING
THE IMPACT OF ORGANIZATIONAL CULTURE ON THE QUALITY OF
WORK LIFE
Source: Organization development Journal
Research finding
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The study uses the competing values framework as a tool to
investigate the relationships between organizational culture and
several important job related variables
group cultural values are positively related to organizational
commitment, job involvement, empowerment and job satisfaction
negatively related to intent to turnover
hierarchical cultural values are negatively related to organizational
commitment, job involvement, empowerment and job satisfaction
positively related to intent to turnover
Case study
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- second-hand car dealer
 Peter and John, had different opinion of approaches to management. Peter
emphasized on the human relations with the staff
 His management philosophy was to fully delegate and support the staff
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John emphasized on planning the company goals and achieving the goals through a
well-organized company structure.
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Employment of employees needed to meet the technical requirements such as
qualification, experience, skills and historical background. They would be assigned
to the most suitable post as considered by the management.
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Peter kept on managing Car City while Peter set up his new car dealing company –
Super Car Co., Ltd. During the financial storm. Car City had reduced its number
of branches from 100 to 70 but still got a profit of $ 1,000,000. Super Car had to
close 20 branched from 35 and had gained a loss of $1,000,000.
From the given information, explain what organizational culture do
you expect from the two companies.
Dimension
Super car
CAR CITY
Stability
High
Low
Low
Low
Low
High
Low
High
High
High
High
Low
Innovation and Risk Taking
Low
High
Attention to Detail
Outcome Orientation
People Orientation
Team Orientation
Aggressiveness
Organization Culture Issues
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Creating an Ethical
Culture
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High in risk tolerance
Low to moderate
aggressiveness
Focus on means as
well as outcomes
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Creating an
Innovative Culture
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Challenge and
involvement
Freedom
Trust and openness
Idea time
Playfulness/humor
Conflict resolution
Debates
Risk-taking
Super car city
Car city
Oriented
People
outcome
Outcome
Relate to group
or people
Relationship
problem
Relate to
outcome
Trust input and
processing
Task risk
Exhibit 15–6 Group versus Individual Decision Making
Criteria of Effectiveness
Accuracy
Groups
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Speed
Creativity
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Degree of acceptance
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Efficiency
Individuals
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THE END