Literature Review And Management Of Organisational Culture

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Basic senses the word 'culture' can be called fine arts and humanities, human knowledge, a structured pattern of belief in the excellence of taste and behaviour that symbolic thought and learning depends on social competence. Culture can bet she shared vision, values, goals, and practices that an organization, group or organization which is characterized by a set.

What is Organisational Culture?

Basically, organizational culture is that the temperament of the organization. Culture is comprised of the assumptions, values, norms and tangible signs of organization members and their behaviours. Members of a corporation soon return to sense the actual culture of a corporation. Culture is one among those terms that is tough to specific distinctly; however everybody is aware of it after they sense it. for instance, the culture of an oversized, for-profit corporation is kind of completely different than that of a hospital that is kind of different than that of a university. You'll be able to tell the culture of a corporation by staring at the arrangement of furniture, what they brag regarding, what members wear, etc. -- like what you'll be able to use to induce a sense regarding someone's temperament.

What is corporate culture?

Basic definition of organizational culture is the collective way we do things around here. It involves a learned set of behaviours that is common knowledge to all the participants.

Observing Culture

Culture plays out in a variety of ways. We can identify the specifics of it from how information is communicated, feedback is given, performance is managed, and projects are co-coordinated within the organization. It is reflected in the way the corporation or institution is structured; whether work is conducted cross-functionally or within silos, how the hierarchical levels are set up, and the types of job titles used. Culture is often defined by the systems that are used, the processes that are followed, and the rituals, symbols, and stories that abound in the organization. It is even reflected in how meetings are held in an organization.

Literature Review

These differing models of culture varieties mirror the various underlying principles on whether or not culture is something an organisation is (action view) or something an organisation has (structural view), or whether or not culture is primarily regarding folks (behavioural view) instead of organisations. however as are going to be seen within the next section, others see cultural categorisation as being too simplistic, even a management tool for emphasising one organisational perspective.

Edgar H. Schein in his book: Organizational Culture and Leadership (1992), defined culture accordingly:


Artifacts are the visible components during a culture. Artifacts are often recognized by folks not a part of the culture. Artifacts will e.g. be dress codes, furniture, art, work climate, stories, work processes, organizational structures etc.

Espoused values

Espoused values are the values normally espoused by the leading figures of a culture. Espoused values might e.g. be represented by the philosophies, ways and goals sought realized by e.g. leaders. However, the values sought by leaders ought to be supported by some general and shared assumptions regarding e.g. how an organization ought to be run, or how staff ought to be managed.


Assumptions reflect the shared values among the particular culture. These values are typically ill-defined, and can oftentimes not be particularly visible to the members of the culture. Assumptions and espoused values are probably not correlated, and also the espoused values might not in the least be rooted within the actual values of the culture.

By using Edgar Schein's model, leaders are able to perceive cultural components, and be able to analyze the connection between deep rooted assumptions and customary business practices among the corporate. Likewise, leaders will try and modification the essential assumptions of a given culture, and hence perhaps improve the effectiveness of the corporate.

Hofstede specified dimensions of organisational culture that are: method versus results, employee versus job oriented, parochial versus skilled, open systems versus closed system, loose versus tight management and normative versus pragmatic. The comparative approach to outline dimensions of organisational culture restricted the applicability of their model. There are a hundred thirty five things in Hofstede's questionnaire. Attributable to the quantity of things it'd be time consuming to conduct a survey to live organisational culture. Using Hofstede's questionnaire to live organisational culture might not be a wise call because the range of things is massive, some might not be relevant to the organisation that one desires to live organisational culture and respondents could offer wrong data. The comparative studies of 2 organisational cultures in relation to organisational activities and ideas like innovation and creativity, production and quality etc are going to be attainable provided that the model that is employed for comparison consists of things that may be found in each organisation.

Trompenaars developed a model of variations in national cultures. This model includes seven dimensions, which are believed to shed lightweight on how individuals in several national cultures interact with one another.

The seven dimensions are listed below:

The seven dimensions are listed below:

Universalism vs. particularism (What is most important - rules or relationships?)

Individualism vs. collectivism (Do we function in a group or as individuals?)

Neutral vs. emotional (Do we display our emotions, or do we hide them?)

Specific vs. diffuse (Do we handle our relationships in specific and predetermined ways, or do we see our relationships as changing and related to contextual settings?)

Achievement vs. ascription (Do we have to prove ourselves to receive status, or is status given to us?)

Sequential vs. synchronic (Do we do things one at a time or several things at once?)

Internal vs. external control (Do we believe that we can control our environment, or do we believe that the environment controls us?)

Trompenaars tested these seven dimensions on fifty five national cultures. The results found in each national culture, that illustrate the popular response to completely different dilemmas regarding every dimension, will thus be utilized by business managers to foresee, how completely different individuals from different cultures might act and behave in.

Based on the research of Dr. Geert Hofstede, there are differences between national and organizational cultures. For global companies, it is important to understand both in order to impact organizational performance.

Dr. Geert Hofstede in recent ITAP Webinar explains "Integrating corporate practices and national cultural values." Organizations is of great importance, which is subject to a volatile global economic environment is. Doosan and Bobcat Lloyds and HBOS Barclays and Lehman Brothers, Citigroup and Wachovia: While the economic turbulence creates challenges and failures, the merger and acquisition opportunities as well as evidence of a large number of makes. List is long. Many of these names have been strong national brand identity. With branches in many financial centers of the world you are Goliaths. How they should integrate an organization? At least some of the key to success in this area is divided into the teaching of Dr. Hofstede.

Our national culture good vs. evil, for example, normal versus abnormal, dangerous vs safe and rational versus irrational in terms of our deep rooted values ​​affects. National cultural values ​​learned early and deeply held only slowly change over generations.

Corporate culture, on the other hand, the basic traits that are rooted in organizational behavior at work is learned together. Including Dr. Hofstede experts agree that changes in organizational culture is difficult and time consuming. What is often overlooked or underestimated when at least two or more companies to integrate / merge the underlying personal values ​​of employees, how they experience the effects of corporate culture change initiatives. A person can learn to adapt to the processes and priorities, and a person in an organization of officers following exemplary behavior can be observed. But these priorities and lead the national staff to go against deeply rooted cultural values, corporate values ​​(processes and practices) if there are weak. What is appropriate in a national context is very offensive in another. What rational irrational in a national context is entirely another. Ever national culture and corporate culture trumps.

Response organizations after a merger or not lies in the efforts of the left try to cancel the high performance integrated building culture, but cultural norms and business practices to suit local interpretations of overlapping.

National differences affecting organizational culture

The organizational communication of a nation is deeply rooted in its culture. Just as language, food, and geography differ from country to country, so do the ways people communicate with each other and how businesses are organized. Each nation is different, and therefore each organizational culture is different.

Geert Hofstede, who studied how values in the workplace are influenced by culture, identified four elements that help define and explain the differences between organizational cultures in different nations. Power distance is defined as "the extent to which it the less powerful members of institutions and organizations within a country expect and except that power is distributed unequally" (Hofstede, 1991). The following graph illustrates examples of low and high power distance:

Low Power Distance

High Power distance

Subordinates expect to be consulted

Subordinates expect to be told what to do

Boss should be resourceful democrat

Boss should be benevolent autocrat

Privileges and status symbols frowned upon

Privileges and status symbols expected

Teachers expect initiatives from students in class

Teachers are expected to take all initiatives in class

Hierarchy in organizations seen as exploitive

Hierarchy in organizations reflects natural differences

Inequalities between people should be minimized

Inequalities between people are expected and desired

Parents and children treat one another as equals

Children respect parents and parents expect obedience

Austria, Israel, Ireland, Scandinavia

Malaysia, Panama, Mexico, Philippines

U.S.A. Ranked 38 of 53 - Moderate/Low Power Distance


Hofstede (1991) defines uncertainty avoidance as "the extent to which the members of a culture feel threatened by uncertain or unknown situations."  The following chart illustrates the differences between low and high uncertainty avoidance:

Low Uncertainty Avoidance

High Uncertainty Avoidance

Low time consciousness

High time consciousness

Few rules

Many rules

High tolerance of deviant and innovative ideas

Low tolerance of deviant ideas; resistance to change

Low stress

High stress

Risk taking

Risk adverse

People can appear quiet, easy-going, and/or lazy

People can appear busy, emotional, and/or aggressive

Students comfortable with open-ended learning

Students comfortable with structured learning

Anglo & Nordic; Singapore

Latin Europe, Latin America, Korea,Japan

U.S.A. Ranked 43 of 53 - Low Uncertainty Avoidance


Individualism refers to societies that value the individual identity over the group and have looser ties between people.  Collectivism is the opposite of individualism and refers to societies that value the strong group effort over individual recognition.  Some examples are charted below: 




Identity is based on the individual

Identity is based on one's social network

I do, therefore I am

I am, therefore I do

Work relationship is seen as contract

Work relationship is seen in moral terms, like family link

Task prevails over relationship

Relationships prevail over task

Employment decisions based on skills and rules

Employment decisions reflect person's group connections

Speaking one's mind indicates honesty

Harmony should be maintained & confrontation avoided

Low-context communication (direct)

High-context communication (indirect)

Rule-breaking leads to guilt and loss of self-respect

Rule breaking leads to shame and loss of face

Management is management of individuals

Management is management of groups

USA, Australia, Britain, Netherlands

Central and South America, East Asia

U.S.A. Ranked 1 of 53 - High Individualism


"Masculinity-femininity differentiates between those cultures that emphasize assertive and competitive orientations toward work (masculinity) and those that emphasize cooperative, interdependent orientations toward work (femininity)" (Cheney et. al., 2004).  The following graph illustrates some examples:





Gender roles overlap

Distinct gender roles



Stress on equality and quality of work life

Stress on competition and performance

Managers use intuition and strive for consensus

Managers expected to be decisive and assertive

Humility and modesty are important

Men are assertive; women are tender

Conflict resolution by compromise and negotiation

Conflict resolution by fighting out over issues

Sweden, Norway, Denmark,Netherlands

Japan, Italy, Mexico (Latin Europe &America)

U.S.A. Ranked 15 of 53 - Moderate/High Masculinity

The selected Organisation for this report is Continental Tyres. In some part of this report, Continental Tyres is referred as just 'Continental'. Apart from Introduction of the company and its Corporate Culture other all aspects will be discussed in Assignment 2.

"Our mission is to establish the Continental Tyre Group as the most professional supplier of quality tyres and customer service, respected for consistent, stable business relationships. To be known for understanding the customers' needs and being active and responsive in meeting and exceeding them." - David Smith, Managing Director

Continental Tyre Group Ltd is part of German based Continental Aktiengesellschaft (Continental AG). Founded in 1871, the company was the first to develop a tyre with a "tread pattern" (in 1904) and has grown to become one of the world's largest tyre manufacturers, employing over 45,000 people. Continental was also the first tyre manufacturer to develop:

A pneumatic tyre with tread

Tubeless tyres in Germany

Tyres made from synthetic materials

The winter tyre

These days, around seventy five per cent of Continental AG's business is tyres, with the rest in technical rubber product. Continental AG features a total of eighteen tyre producing plants across the planet manufacturing seventy million automobile and business tyres per annum. Before reaching the road, its tyres undergo dozens of exhaustive tests ' in closed laboratory conditions, and on the track. Designers use super-computers to gauge the consequences of constructing infinitesimal changes to tyre tread patterns and compounds, and raw materials are analysed by micro-scope and hand checked for uniformity. Additionally to the current, Continental works closely on the event of tyres with leading automobile makers to stay pace with the increasing demands on safety, long life, comfort, fuel economy and reduced noise levels. Continental tyres are currently fitted as original equipment on one in each 5 cars manufactured in Europe and are approved for fitment by no but seventeen makers and eighty four totally different models. Continental has its own check track - the Contidrom - and a check driving team of thirty five individuals. The track is predicated on the sting of the Luneberg Heath in Germany and options a high speed banked circuit, a steering pad, circular track for aquaplaning analysis and a rough terrain handling course. It additionally features a pass by noise check strip, controlled aquaplaning and a wet braking check ground.

Based in West Drayton, Middlesex the Continental Tyre Group Ltd is the UK tyre division responsible for supply of tyres to the UK and Republic of Ireland.

Continental Tyres actively concentrates on three core markets:

Replacement tyres for cars, 4x4s and vans

Tyres for commercial vehicles - such as trucks and buses, as well as industrial vehicles such as forklift trucks

Original Equipment - working with leading car manufacturers to specify Continental Tyres on new vehicles

A culture of high performance

Continental Tyres emphasis on high performance inspires the actions of every individual, as well as the teams and divisions throughout Continental worldwide.

Striving for the best

Continental has ambitious objectives. For this reason, each of their strives for the best in their respective business practices and are always responsible for accepting nothing but the best.

Cooperation and teamwork

The spirit of cooperation drives all teams, levels and business divisions within the firm. It inspires good relations between management, employees and their representatives. Also they keep on consistently making use of the opportunities offered by their global network to forge closer personal ties, both internally and externally.

Whole performance depends on mutual cooperation and all employees recognize that they are part of a global corporation, with the broad, cross-cultural teamwork required by global business.

To build the spirit of cooperation, bureaucracy and hierarchies are broken down along with the promotion of a culture that encourages delegation and rewards entrepreneurship. Continental Tyres communicate openly and actively and they regard information as something belonging to everyone.

Responsibility and management

Employees at Continental take full responsibility for their actions and performance at all times. All employees are expected to welcome constructive criticism, honour suggestions from other stakeholders, and achieve performance improvement with their own ideas.

Every employee is aware that he or she represents the reputation of Continental in the eyes of the stakeholders as well as the public.

All the managers of all the areas and at all level are expected to foster a cooperative management style that encourages delegation and accountability.

Leaders embrace a role model function and are judged according to exacting management standards.

Learning and knowledge management

Continental is a learning corporation who makes knowledge accessible throughout the corporation, enabling managers and employees alike to adapt quickly to changing environments, and to anticipate and shape markets.

Every employee is encouraged to pursue continuous life-long learning; also programs are developed to facilitate the exchange of knowledge and expertise internally, and with partners outside the corporation.