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Pg11seca Group10 Odc Ibmcase

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    Managing

    Organizational

    CultureGroup -10

    Avijit Shukla-11P014Deepak Jangid-11P017

    Gaurav Chauhan -11P020

    Nitin Sharma -11P030

    Raghav Pandey- 11P035

    Sourabh Manna- 11P053

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    UNDERSTANDING CULTURE:

    Ambiguous concept

    Misunderstood as a cultural phenomenon

    Set of people with common history and stability

    Pattern ofbasic

    assumption

    Invented anddeveloped by a

    given group

    As it learns to cope with its

    problems of externaladaptation and internalintegration

    Has worked well to be considered validand correct way to perceive, think and

    feel

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    Organization

    No

    overarching

    culture due

    to lack of

    common

    history or

    frequent

    turnovers

    Strongbecause of

    long shared

    history and

    shared

    intenseexperiences

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    1

    Observable artifacts:

    Physical layout

    Dress code

    Manner of

    addressing

    Smell and feel

    Emotional

    intensity

    Problems:

    Palpable

    Difficult to

    decipher

    3

    Basic underlying

    assumptions:

    Perceptions

    Thought Process

    Feelings

    Behavior

    Once understood

    becomes easier todecipher the implicit

    meanings in the

    various phenomenon

    one observes

    2

    Values:

    Norms

    Ideologies

    Charters

    Philosophies

    Open ended

    interviews

    Problems

    Difficult to know if the

    dimensions are relevant

    and salient in that

    culture

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    Theorganizationsrelation to itsenvironment

    Dominant

    Submissive

    Harmonizin

    g

    Nature ofhuman activity

    Pro-active

    Fatalistic

    Harmonizing

    Nature ofreality and

    truth

    Pragmatic

    Reliance/wisdom

    Socialconsensus

    Nature of time

    Basicorientation

    Time units

    Deadlines/conduct

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    Nature ofhumannature

    Good/neutral/evil

    Perfectible/fixed

    Nature of human relationship

    Distribute power or affection

    Competitive or cooperative

    Individualism or groupism

    Autocratic/Paternalistic

    Collegial/Participative

    Homogeneityvs diversity

    Pro-active

    Fatalistic

    Harmonizing

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    CULTURAL DYNAMICS:

    SOCIALIZATION

    Dimensions along which socialization processes can

    vary

    Group versus Individual

    Formal versus Informal

    Self-destructive and reconstructing versus self enhancing

    Serial versus Random

    Sequential versus disjunctive

    Fixed versusVariable

    Tournament versus contest

    Socialization consequences

    Custodial orientation or total conformity

    Creative individualism

    Rebellion or the total rejection of all assumptions

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    DIMENSIONS AND TYPES OF

    ORGANIZATIONAL CULTURE

    High

    High

    Low

    Low

    Sociability

    Solidarity

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    Measure of emotional noninstrumental relations

    Social interaction valued for own stake

    Fosters teamwork, sharing of information and a spirit of openness to

    new ideas Freedom to express and accept out-of-box thinking

    May allow tolerance of poor performance

    Exaggerated concern for consensus

    May lack formal/organizational structure

    Sociability

    Based on common tasks mutual interests or shared goals

    Generates high degree of strategic focus, swift response and non-tolerance of poor performance

    Strict standards, equality-of-suffering effect Develops a strong sense of trust

    If the strategy is not good it will lead to corporate suicide

    Cooperation occurs only when advantage to individual is clear

    Lack of cross sectional collaborative overlapping

    Solidarity

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    CULTURE AND LEADERSHIP

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    Ran the company for 42 years

    Had a superstitious learning style drew lessons from his life and implemented them inthe company

    Was impressed by his own business philosophies

    Led to an unwritten dress code

    Alcohol became prohibited in the company

    Intolerant of any complaint made by customers Threatened Bethlehem Steel when it gaverecommendations

    Executed lay-offs and salary reductions. However, over time he realized the importance ofsatisfied workers and his views became progressive

    Thomas Watson Sr.

    IBM was born in 1924

    Name changed from Computing Tabulating- Recording to International Business Machines Company by Thomas Watson Sr.

    Soaring of revenues

    Overview -1924 onwards

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    Ran the company for 15 years

    Codified the philosophy of 3 basic beliefs which the company could not change under any

    circumstances Respect for individual

    Customer Service

    Excellence

    Tom Watson Junior

    1950s

    Tom Watson Junior became president in 1952 and CEO in 1956, respectively

    Responsible for pushing IBM into electronics - led the development ofIBM 701

    IBMs revenues exploded

    Overview -1950 onwards

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    Was responsible for decentralization

    Started to overhaul IBMs operations and management as soon as the sales /profits starteddeclining

    Slashed manufacturing capacity and work force

    Decentralized management

    Launched a culture change program, Market Driven Quality focussing onEmpowerment and New pay-for-performance incentive system

    These steps could not prevent the companys declining profits

    John Akers

    1960s Introduction of the revolutionary and highly successful Systems/360 line

    IBM continued to be a one product-line company for the next 20 years

    1965 1985

    Growth rate 14% and average gross margin 60%

    John Akers became the CEO in1985

    Growth declined drastically IBM faced overcapacity problems

    Overview -1950 onwards

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    Recognized the arrogant attitude of the company

    Understood that IBMs challenges lay in the absence of focus on culture, teamwork,

    customers and leadership in the company

    Cult like culture

    Narrow-minded and inward-focussed view

    Lou Gerstner

    IBM had suffered its first loss

    More than 100,000 employees had been let go

    IBMs share prices had declined drastically

    Lou Gerstner, an outsider, became the CEO

    Overview -1993 onwards

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    Lou Gerstner Introduced 8 principles in place ofTom

    Watson Jrs Basic BeliefThe marketplace is the driving force behind everything we do

    Our primary measures of success are customer satisfaction and shareholder value

    We operate an entrepreneurial organization with a minimum bureaucracy and a never ending

    focus on productivity

    We never lose sight of our strategic vision

    We think and act with a sense of urgency

    Outstanding, dedicated people make it all happen, particularly when they work together as a

    team

    We are sensitive to the needs of all employees and to the communities in which we operate

    We operate an entrepreneurial organization with a minimum bureaucracy and a never ending

    focus on productivity

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    Changes madeChanged the no alcohol policy

    Abolished IBMs dress codeLimited the use of overhead transparencies or foils wanted people to emphasized

    on business

    Worked towards changing IBMs contention system

    Tried to make the senior management focus on the competition

    Changed IBMs measurement and rewards system

    IBM was changed to market driven rather than process driven enterprise

    Things that were not changed

    Focus on customer

    Respect for individual

    Maintained the core competency

    Protected the fundamental R&D budget

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