Organizational Culture The Yellow Group Omar Rosas, Rhonda

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Organizational Culture
The Yellow Group
Omar Rosas, Rhonda Long, Kristin Lichtblau,
Miriam Raab, Katharina Belak, Julia Federlein
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Outline
1. Definition 1.1 Culture 1.2 Survey 1.3
Organizational Culture 2. Elements of
Organizational Culture 2.1 Shared
Assumptions 2.2 Shared Values 2.3
Artifacts 3. DaimlerChrysler 3.1 Overview 3.2
Problems 3.3 Strategies 4. Recommendation 5. Conc
lusion
1. Definition 1.1 Culture 1.2 Survey 1.3 Org.
Culture 2. Elements of Org. Culture 2.1 Shared
Assumptions 2.2 Shared Values 2.3
Artifacts 3. DaimlerChrysler 3.1 Overview 3.2
Problems 3.3 Strategies 4. Recommendation 5. Conc
lusion
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What is Culture?

• A total way of life shared
• A synergistic totality
• Contains customs, traditions, beliefs, norms,
  roles, skills, knowledge of the natural and
  social world, and values
• Gives meaning to our existence in society

Culture constrains not only behavior but also
how people think about and interpret their
world.
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Our Classs Organizational Culture

• Artifacts
• Organizational language
• 100 speak English
• 50 speak English and other language(s)
• Rituals / Ceremonies
• Holiday meals with family friends
• Christmas tree, presents, Santa
• Birthdays, Anniversaries
• Annual vacations

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Our Classs Organizational Culture

• Shared values
• Conscious beliefs
• 65 Christian Faith Based
• 35 Other Religion
• Exercise / Fitness Other Activities
• Dance styles Cha Cha, Salsa, Pop-locking,
  Disco
• Other Hobbies Tennis, Swimming, Volleyball,
  Running, Shopping, Reading, Computers, Family
  Time, Art, Baking, Travel, Fencing, Soccer,
  Antique Collectibles

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Our Classs Organizational Culture

• Shared assumptions
• Perceptions or beliefs
• Class Participation
• Study Hard
• Best Effort

A
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What is Organizational Culture?

• The shared values and practices of the company's
  employees
• Company culture is important because it can make
  or break your company
• Companies with an adaptive culture that is
  aligned to their business goals routinely
  outperform their competitors
• Company cultures evolve and they change over time

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Characteristics of Organizational Culture of
Companies

• Performance based compensation and reward
  programs
• Effective 360 degree communication
• Highly effective leadership
• High integrity workplace
• Strong trust relationships
• Effective systems and processes
• Employee commitment
• Demonstrated support for innovation
  

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Elements of organizational culture
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Shared Assumptions
shared assumptions are the broad worldviews or
theories-in-use that people rely on to guide
their perceptions beliefs
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• Shared Values

values are conscious perceptions about what is
good or bad, right or wrong shared
values values that people within an organization
or work unit have in common place near top of
their hierarchy of values

• Companies possess espoused values - what they
  say they value
• and enacted values - what they actually value

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• Artifacts

observable symbols and signs of an organizations
culture
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• 4 categories of Artifacts
• Organizational stories legends
• 2) Rituals ceremonies
• 3) Organizational language
• 4) Physical structures symbols

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Merger of equals Daimler Chrysler AG (DMX)
May 1998
Daimler-Benz AG and Chrysler Cooperation -
worlds leading car manufacturer agreed in
combining their business
Nov. 1998

• Merger of equals was completed

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Merger of equals Daimler Chrysler AG (DMX)

• Ranking 3rd worldwide in revenues
• 3rd worldwide in market capitalization
• 3rd worldwide in earnings
• 5th worldwide in number of units sold
• - In 1998 DCX generated revenues of 155,3
  billion and sold 4 million cars and trucks

GROWTH
SUCCESS
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Different important issues are needed for success
but most significant is organizational culture
Cultural clash has to be minimized and fought
Difficulty of trying to integrate two very
divergent organizational cultures
Pitfalls of Daimler AG and Chrysler Corporation
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Daimler AG

• Culture
• - Stiff
• - Formal
• - Straight-forward
• - Traditional
• - Mannerly
• - Bureaucratic
• - International

Structure - High authorities - Strong
hierachy - Little payment disparity

• Products
• High quality
• High price
• Luxurious
• Smaller sized cars

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Chrysler Corporation
Culture - Relaxed - Informal - Flexible -
Risk Taking - Cowboy aura - Free form
discussion

• Products
• Attractive
• Eye-catching
• Very competitive price
• Comfortable driving
• Moderate speed

Structure - Top down management - Lean staff
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Game

• Get together in four groups of around six people.
  
• On your table are 20 cards (10 cards which
  represent Daimlers org. culture and 10 cards
  which represent Chryslers org. culture.)
• Everybody within your group has to pick up one
  card as long as there are some. Each person has
  to read his card out loud and has to decide to
  which companys org. culture it matches best
  with.
• When you are done with picking up all the cards
  and matching them to the Chryslers or the
  Daimlers org. culture, you have to create a
  Daimler Chrylser AG org. culture, with which you
  think the merger would have been successful or
  more successful because of no culture clash.
• Pick 10 cards out of the 20 which you think are
  the most useful and best reflect cultural
  indicators for a new organizational culture of
  Daimler Chrysler AG.
• Present your new org. culture of Daimler Chrysler
  AG to the class with reasons why your group
  picked the 10 cards to represent the Daimler
  Chrysler AGs new organizational culture.

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Strategy Overview
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Organizational Culture of DaimlerChrysler AG
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Recommendations
Bicultural Audit
Diagnosis of cultural relations between companies
prior to a merger and a determination of the
extent to which cultural clashes are likely to
occur
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Recommendations
Actions of founders and leaders
Introducing culturally consistent rewards
Selecting and socializing employees
Strengthening organizational culture
Maintaining a stable workforce
Managing the cultural network
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• You realize that your company has an unhealthy
  organizational culture if
• process is more important than purpose
• authority is more important than service
• form is more important than reality
• - precedence is more important than adaptability

So by contrast, purpose, service, reality, and
adaptability are indicators for a healthy
organizational culture
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Thank you very much for your attention!!!
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Works cited - StrategiesMc Shane Online
Chapter 16, p. 15 www.mhhe.com/business/managemen
t/mcshane/samplechapters/McShane16.pdf -accessed
Nov 30, 2007 and Book pp. 470-471- Bicultural
AuditMc Shane Online Chapter 16, p. 13
 www.mhhe.com/business/management/mcshane/samplec
hapters/McShane16.pdf -accessed Nov 30, 2007 and
Book pp. 469/70- Changing and StrengtheningMc
Shane Online Chapter 16, pp. 16-20
www.mhhe.com/business/management/mcshane/samplech
apters/McShane16.pdf -accessed Nov 30, 2007 und
Book pp. 472-476- ConclusionGordonhomeland.com
, "Changing Organizational Culture Unleashing
Creative Energy", September 23-25,
2003)http//users.rcn.com/pgordon/homeland/change
_culture.htmlaccessed Dec 4, 2007 - McShane,
Steven L. Von Glinow, Mary Ann, 2008,
Organizational Behavior, 4th edition, Mc
Graw-Hill, Prentice Hall (p. 460, 461, 463
465) - Video youtube.com, http//de.youtube.co
m/watch?vOJ4jF1RXdQ0, accessed 11/19/07 -
Daimler Chrysler Infos ICMR Center for
Management Research, Daimler-Chrysler Merger A
Cultural Mismatch? http//www.icmr.icfai.org/cases
tudies/catalogue/Business20Strategy1/Daimler-Chry
sler20Merger20A20Cultural20Mismatch.htm,
accessed 11/18/07 - BNET Research Center, The
deal of the century - includes related article,
June, 1998 by Marjorie Sorge, Mark
Phelan http//findarticles.com/p/articles/mi_m3012
/is_n6_v178/ai_20846020, 11/18/07 - IMD Real
World, Real learning, Cross-Border Lessons from
the DaimlerChrysler Merger, August 2002, Paul
Strebel http//www01.imd.ch/news/research/perspect
ives/index.cfm?art2325, 11/18/07 - Tuck school
of business at Dartmouth, The Daimler Chrysler
Merger , http//mba.tuck.dartmouth.edu/pdf/2002-1-
0071.pdf, 11/18/07