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BBA 4003




5.0 Course Work
1. There are eleven ways cultures become embedded in organizations. Explain

Those who found a business, and the managers who follow them, essentially use a
teaching process to embed the values, beliefs, expectations, behaviors, and business
philosophy that constitute the organization's culture. Among the mechanisms used
are the following.
1. Formal Statements: The first way to embed preferred culture is through the use
of formal statements of organizational philosophy, mission, vision, values, as well as
materials used for recruiting, selecting, and socializing employees. Example: WalMart founder Sam Walton stated that three basic values represented the core of the
retailer's culture: (1) respect for the individual, (2) service to customers, and (3)
striving for excellence.
2. Slogans & Sayings: The desirable corporate culture can be expressed in
language, slogans, sayings, and acronyms. Example: Robert Mittelstaedt, Dean of
the W.P. Carey School of Business at Arizona State University, promotes his goal of
having a world-class university through the slogan "top-of-mind business school."
This slogan encourages instructors to engage in activities that promote quality
education and research.
3. Stories, Legends, & Myths: A highly valued resource at The Associates is time.
To reinforce the importance of not wasting time, many stories circulate about senior
managers missing planes or being locked out of meetings because they were late.
4. Leader Reactions to Crises: How top managers respond to critical incidents and
organizational crises sends a clear cultural message. Example: Canadian Dov
Charney got into the clothing business as a college student, when he would buy

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thousands of T-shirts at Kmart, then import them via a U-Haul truck into Canada.
Then he dropped out of college, borrowed $10,000 from his father, and moved to
South Carolina to manufacture clothes just at a time when the rest of the garment
industry found it was cheaper to make clothing overseas. Charney filed for
bankruptcy but then moved his company to California, determined to make it work.
"I knew I could do it differently, and I knew I could turn it around," he said.
"Passion" is the key to success. When you believe in what you're doing, that's the
first thing. And you have to be resilient, because people are going to try to knock
you down." Today his company, American Apparel, has over 6,700 employees. And
it does something other garment makers have abandoned: it makes all its clothing in
the United States.
5. Role Modelling, Training, & Coaching: Triage Consulting Group, a health care
financial consulting firm in California, places a high value on superior performance
at achieving measurable goals. New employees are immediately prepared for this
culture with a 4-day orientation in Triage's culture and methods, followed by 15
training modules scheduled in 6-week intervals. After less than a year, the best
performers are ready to begin managing their own projects, furthering their career
development. Performance evaluations take place four times a year, further
reinforcing the drive for results.
6. Physical Design: Intel originally had all its people work in uniform cubicles,
consistent with the value it placed on equality. (Top managers don't have reserved

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parking spaces either.) However, the cubicle arrangement conflicted with the value
Intel places on innovation, so the company is experimenting with open-seating
arrangements combined with small conference rooms. Not only are open-seating
arrangements thought to encourage collaboration, they also can reduce noise
because employees can see when their activities are annoying to people nearby. Intel
hopes that this environment will better support creative thinking.
7. Rewards, Titles, Promotions, & Bonuses: At Triage Consulting Group,
employees at the same level of their career earn the same pay, but employees are
eligible for merit bonuses, again reinforcing the culture of achievement. The
awarding of merit bonuses is partly based on co-workers' votes for who contributed
most to the company's success, and the employees who received the most votes are
recognized each year at the company's "State of Triage" meeting.
8. Organizational Goals & Performance Criteria: Many organizations establish
organizational goals and criteria for recruiting, selecting, developing, promoting,
dismissing, and retiring people, all of which reinforce the desired organizational
culture. Example: PepsiCo sets challenging goals that reinforce a culture aimed at
high performance.
9. Measurable & Controllable Activities: There are a number of activities,
processes, or outcomes that an organization's leaders can pay attention to, measure,
and control that can foster a certain culture. Example: ExxonMobil's credo is
"efficiency in everything we do," so that managers make a concerted effort to

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measure, control, and reward cost efficiency. As a result, the company is famous for
delivering consistent returns, regardless of whether the price of oil is up or down.
10. Organizational Structure: The hierarchical structure found in most traditional
organizations is more likely to reinforce a culture oriented toward control and
authority compared to the flatter organization that eliminates management layers in
favor of giving employees more power. Example: The hierarchical structure of a
railroad provides a much different culture from that of the former "spaghetti"
organization of Danish hearing-aid maker Oticon.
11. Organizational Systems & Procedures: Companies are increasingly using
electronic networks to increase collaboration among employees, to increase
innovation, quality, and efficiency. For example, Serena Software Inc., a Californiabased company with 800 employees located in 29 offices across 14 countries,
encouraged its employees to sign up for Facebook for free and to use the network as
a vehicle for getting to know each other. In contrast to using a public site for
networking, Dow Chemical launched its own internal social network to create
relationships among current, past, and temporary employees.

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