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The organization and culture those basic on complementary assumptions undergird this work. The organizations are constituted by communication, and the culture is accomplished communicatively, suffuses organizations. Organizations as entities are also embedded in cultures, and organizing is a communication process. An organization in the standing sense exists only as an abstraction and can be defined in a variety of ways, depending on one’s theoretic stance and the practical purpose at hand. Therefore understanding of organization as communication is grounded in a body of work that theorizes the process of the constitution of organization communicatively (Anne, Marcia, and Felicia, 2003).
This report represents the Culture and Organisation analysis at Daimler centre issues of management practice in Daimler Group AG Company.
1.2 Daimler Background
Daimler AG is one of the global successful automotive companies, with a strong brands and innovative products. The Daimler Group is one the biggest products of premium cars, such as cars, vans, trucks and buses over the worldwide. Moreover the range brand of Daimler comprises the brands Mercedes-Benz, Mercedes-AMG, smart, Freightliner, Mitsubishi Fuso, Detroit Diesel, and etc. Daimler Financial Services provides to its customer with the automotive financial services, based on financing, car insurance, leasing and etc (Daimler AG, 2010, A)
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The company was founders in the year 1886 by Gottlieb Daimler and Carl Benz. As an automotive leader, Daimler continues to shape the future of development. In other hand, the Daimler Group was applies technology innovation and green technologies to produce safe and advanced vehicles which attract its consumers. With the innovation of alternative drive systems, Daimler is the one investing on producing hybrid drive, electric motors and fuel-cell system to achieving the environment impact; reducing footprint and emission-free mobility in the long term (Daimler AG, 2010,A)
The innovations are the key that Daimler Group uses of the resource and the most environmentally sound mobility that can be achieved. Therefore the committed to protecting the climate and the environment were the role that, Daimler’s to building safe vehicles and promoting accident prevention. In addition, both of passenger cars and commercial vehicles are among the best selling in market segment when it comes to environment friendliness and safety (Daimler Sustainability Report, 2010, A)
Moreover, fulfil consumer satisfaction is a key corporate goal at Daimler. However their efforts in this are apply to all it’s the products, and services. Their set it has ambitious target, which a motivated to achieve comprehensive initiatives and project in their consumer loyalty programs (Daimler Sustainability Report, 2010, A)
The Daimler has a heightened awareness of the obligation that grow of company’s worldwide activities. By conducting with stakeholders that member of society, Daimler wants to take a targeted approach to creating value for society. Therefore Daimler was responsibilities in the areas of donations and sponsoring. The main issues that Daimler wants to help people in need of assistance, promoting to understanding between cultures, supporting educational and cultural activities (Daimler Sustainability Report, 2010, B).
2.0 Edgar Schein Framework Analysis
The culture in an organization can be thought of as the organization’s accumulated learning that becomes so taken for granted that it drops out of awareness (Schein, 2004). This framework of culture will learn cover both how the organization deals with its various external environments in accomplishing its tasks and how it manages its internal integration. If an organization is barriers in its early years, it will not develop a strong culture. Therefore, if certain ways of thinking, feeling, and behaving continue to work, they become taken for granted and eventually drop out of awareness except when they are taught to newcomers as the way to get along in that organization (Schein, 2004).
However the level of the culture is not only the essence but also the main source of stability that provide meaning and logicality for the members of the organization. Culture can be analyzed at several different levels (see figure 1.1) (Schein, 2004). Level of Org Cultural.jpg
(Figure 1.1 Schein, E. H. 2004)
At the level of artefacts of the culture, this includes visible products of the group, such as the design of its physical environment, technology and products, and other manifestations that are clear but are not necessarily decipherable. In addition, the environment of the group is an artefact of the deeper cultural levels, as is the visible behaviour of its members. Artefacts also purpose of cultural analysis the organization process by which such behaviour is made routine and structural elements (Schein 2004).
Therefore the technology innovation is the visible behaviour of Daimler Group culture. In Daimler research and development department worldwide, its workers are working to not only reduce emission and energy consumption during the production, use, and recycling of our product, but also to optimize its vehicles safety features. In other hand focusing on further reducing Co2 emissions of its products also is the important role of tier culture. Their efforts are focused on two areas, vehicles and power trains on the one hand, and infrastructure (Daimler Sustainability Report, 2010, C).
Moreover, Daimler Group management is aim develop automobile that are increasingly economical and more and more environment friendly. The management strategy for the future of mobility encompasses three focal areas. The first is optimization of its vehicles with advanced internal engines. Second is further efficiency gains through hybridization and the lastly is emission-free driving with electric vehicles powered by the battery and the fuel cell. For intense, new F 800 style form Mercedes-Benz. The innovation of this F800 Style is an all-new multi drive platform. This F800 has adopted plug-in HYBRID electric mobility is mean that, equipped with an electric drive system based on fuel cell technology and driving with zero local emissions through the use of fuel cell or battery-powered vehicles (Daimler Sustainability Report, 2010, C).
This multi-brand strategy through the use of clean alternative fuels to development of new mobility concepts, and activities in new, pioneering areas of business, including the development, production, and sale of lithium-ion batteries (Daimler Sustainability Report, 2010, C).
2.2 Espoused Values
According to Schein (2004), all the group learning ultimately reflects someone’s original beliefs and values, their sense of what ought to be, as distinct from what is. First created of a group or when it faces a new task, issues, or problem, the first solution proposed to deal with it reflects some individual’s own assumptions about what is right or wrong, what will work or not. Those individual who prevail, can influence the group to adopt a certain approach to the problem, will later be identified as leaders or founders, but each group does not yet have any shared knowledge as a group because it has not yet taken a common action In reference to whatever it is supposed to do.
However basic on assumption, can define that concept, have become so taken for granted that one finds little variation within a social unit. This degree of consensus results from repeated success in implementing certain belief and values, as previously described. Therefore if a basic assumption comes to be strongly held in a group, members will find behaviour based on any other premise inconceivable (Schein 2004).
The Daimler Group is one of the world’s automotive companies, and management will faces a new task, issues or problem of all its manager worldwide business. Therefore all of it managers worldwide and about half employee subject to collective bargaining agreements in Germany are annually provided with assessments and career development proposals as part of the LEAD management development who process. These measures were helped develop managers who process the business and personal skills that are requires for their leadership tasks at all level of the group (Daimler Sustainability Report, 2010, D).
In addition, the knowledge of the employees wills important issues to affect the company culture to providing the products. Produced highly trained employees are a prerequisite for any company that intends to satisfy its customers providing excellent products that meet the world’s highest standards. This is why Daimler group consider training provided by the company to be an investment in its company future and a starting point for lifelong learning (Daimler Sustainability Report, 2010, E).
The Daimler training system (DAS) is a vocational training and establish in 2008,enables its employees to master current, future challenges, and thus contribute to the company’ success. The initial objective of the DAS was to boost the efficiency and quality of technical vocational training at Daimler plants in Germany (Daimler Sustainability Report, 2010, E).
Besides that, lifelong learning at Daimler is a process that accompanies an individual’s entire career at the company. This enables the employees and the company to achieve the flexibility they need in order to take on new challenges, while ensuring that employee can continue working over the long team. However Daimler engaged in a number of projects that allow continue learning that is not hampered by location and time considerations (Daimler Sustainability Report, 2010, E).
Schein (2004) define that assumption concept, have becomes so taken for granted that one finds little variation within a social unit. That degree of consensus results from repeated success in implementing certain beliefs and values, as previously described. In fact, if a basic assumption comes to be strongly held in a group, member will find behaviour based on any other premise inconceivable.
Moreover assumption has to learn something new in this realm requires resurrecting, re-examining, and possibly changing some of the more stable portions of out cognitive structure. However learning is intrinsically difficult because the re-examination and interpersonal world, releasing large quantities of basic anxiety (Schein 2004)..
In other hand, human mind need cognitive stability, therefore any challenge or questioning of a basic assumption will release anxiety and defensiveness. In this reason, the shared basic assumptions that make up the culture of a group can be thought of at both the individual and the group level as psychological cognitive defence mechanisms that permit the group to continue to function. Recognizing this connection is important when one thinks about changing aspects of a group’s culture, for it is no easier to do that than to change an individual’s pattern of defence mechanism (Schein 2004).
The personal assumption was a part important of the culture of an organization, and Daimler will discuss with other what to do about “lazy” workforce and institute tight controls to ensure that people are at their desks and busy. Therefore employee satisfactions will the first important role that Daimler will consider. The regular surveys of employee satisfaction are a proven instrument when it comes to organizational and management development at Daimler. The main reason of this survey was an evaluation of it s employees’ feelings of commitment, and identification with the company. The survey was carried out the employees’ satisfaction with their work situation and supervisors, as well as their general knowledge of corporate values and compliance regulation in connection with their daily work (Schein 2004).
However, the basis employee environment safety and worker health will also important issues. Daimler management and the World Employee Committee have developed standardized principles for occupational health and safety at all Group location worldwide. This implementation is the responsibilities of the Group-wide Health Safety unit, which addresses all issues related to maintaining and promoting health, occupational medicine, and occupational safety, company programs to promote better health, social counselling and integration management (Daimler Sustainability Report, 2010, F).
3.0 Hofstede Five Cultural Dimensions
Hofstede (2001) argue that the organizational literature on national culture is that each nation has developed some unique understanding of organization and management through its history. However the national culture was influence on organizations comes through societal structures and through value and behaviours of organizational participants. However Hofstede has identified five cultural dimensions of work-related value differences, such as power distance, individual/collectivism, uncertainly avoidance and masculinity/femininity and long-term/ short-term orientation.
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3.1 Power Distance (PD)
The level of power distance (PD) is related between the centralization of authority and the degree of autocratic leadership. It indicates the social accepts the fact that power in institutions and organization is distributed unequally. Other words, less powerful members of the society well as in those the more powerful once (Qing, Hofstede, 2004).
Furthermore, the power distance also will reflect in economic and cultural lives of human such as relation, polities, and economics. Hofstede’s framework of power distance is clearly relevant to the study of leadership because it deals directly with expectations of and relationship to authority. The high power distance organization, hierarchy reflects the existential inequality between superiors and the subordinates. A subordinate become accustomed to obey the orders made by boss is a supervisor only (Qing, Hofstede, 2004).
However, the Daimler management was higher power distance organization. The central management committee for sustainability is sustainability Board is on the basic of a Board of Management. Daimler has effectively combined all the management process that is relevant to sustainability. This committee, which is directly responsible to the CEO, coordinates significant sustainability measures throughout the Group and support the operation units with their implementation and the sustainability Board is headed by a member of the Board of Management. In the end, different board and the supporting office were restructured in order to further optimize the integration of relevant corporate units, established bodies, and important decision making from all the divisions (see the figure 3.1) (Daimler Sustainability Report, 2010,G).
(Figure 3.1 Sustainability Governance Structure)
3.2 Individual-Collectivism (IND-COL)
The individual and collectivism is one often-examined dimension. A person high in IND tend to values their personal time, freedom, independence, personal goals and pleasure. They have a high need for achievement and tend to believe that personal interests are more important than group interests. However collectivists were opposite that individual, perceive in group rather than individual terms, and thus place the interest of the group ahead of themselves (Qing, Hofstede, 2004).
The Daimler Group is an individualism society that to focuses on long term group commitment. Daimler ahs had a Code of conduct cantered on the corporate value of integrity and applicable to the entire worldwide employees, to ensure that the important of compliance is even more firmly integrated in all business process, their established the Group Compliance Board. The Chief Compliance officer should report directly to the CEO and regularly informs the Audit Committee of the Supervisory Board (Daimler Sustainability Report, 2010, G).
3.3 Uncertainties Avoidance (UA)
This cultural dimension indicates the extent to which a society feels threatened by unsure and confusing situation and tries to avoid these situations by greater career stability, establishing more formal rules, not tolerating deviant ideas and behaviour, and believing in absolute truths and the attainment of expertise. However this will be different between Power distance and Uncertainty avoidance can expressed as the differences between “authority of rules” and “authority of person” (Qing, Hofstede, 2004).
Daimler is an organisation with high Uncertainties Avoidance, it has a complicated hierarchical structure, which branches out into many different departments .Each department has its own roles and managers to responsible for its particular departments.
3.4 Masculinity vs. Femininity (MAS)
The meaning of Masculinity for a society in which social gender roles are clearly distinct men are supposed to be assertive, tough, and focused on material success. However women are supposed to be modest, tender, and concerned on the quality of life. Besides that, the words masculinity and femininity is not mean personality, but also can defined that the learned styles if interpersonal interactions, which are deemed socially appropriate to specific social contexts (Qing, Hofstede, 2004). Hosftede (2001) argue that, masculinity cultural highly stresses assertiveness, ambition, and challenges. However femininity culture was highly appreciates cooperation and good working relationship.
Moreover, the different countries have different scale. For intense some Asia countries are on the middle except Japan and China. However Latin countries likes France, Spain and Portugal are the low on Masculine (Qing, Hofstede, 2004)..
In addition, as a globally operation company, Daimler values the diversity of its employees with their personal skills, capabilities, and knowledge. However, Daimler Company tries to increase the proportion of women in senior management. In the future Daimler will keep continue to focus initially on promoting women in management positions on this work toward their goals by mean of tried and tested measures. Daimler applying a combination of measures encompassing not only activities to promote opportunities for women but also initiatives for all managers and the workforce as a whole (Daimler Sustainability Report, 2010, H).
3.5 Long-term vs. short-term orientation (LTO-STO)
According to Hofstede (2001) this dimension will call it “long-team vs. short-term orientation” is because the value is not limited to be countries where Confucius teachings have strongly influenced. However, “LTO is at the positive pole of “Confucian Dynamism”, which shown the tendency of being dynamic and future-oriented, while STO is at the negative pole of Confucian dynamism, which shows the tendency of being static and oriented towards the past and the present”(Qing, Hofstede,2004). High the level of Confucian Dynamism, mean that a people will to save more money for future use.
Furthermore, the framework of Daimler Supplier Network is the new supplier cooperation model establish in 2009. However this program have set the goal of support and expanding the long-team partnership, to achieve the business relationship with reliable partners and clearly defined criteria for performance (Daimler Sustainability Report, 2010, I).
4.1 Organization Culture Changes
The organization culture changes is known as organization development (OD), which focuses on this humans and social aspects of the organization as a way to improve the organization’s ability to adapt and solve problems. Organizational development emphasizes the value of human development, justice, openness, freedom from coercion, and personal independence that allows workers to perform the job as they see fit, within reasonable organizational constraints (Richard, 2009).
However successful will only happen when employees are willing to devote the time and energy needed to reach the goals, as well as endure possible stress and hardship. Clearly communicated vision that embodies flexibility and openness to new idea, method, and styles sets the stage for a change-oriented organization and helps employee cope with the chaos and tension associated with change (Richard, 2009).
Therefore, if Daimler wants to change it organization culture will be many barriers to change exits at it organization levels. Management may process the mind-set costs are all important issues and may fail to realize the important of a change that is not focused on costs. For instance, organization changing will increase the employees’ motivation or consumer satisfaction (Richard, 2009).
Moreover any major change will produce both on positive or negative results. The education and knowledge may be needed to help manager and employees perceive than negative aspect of the change. Besides that, if Daimler Company rewards system discourages risk taking, a change process might pause because employee think that the risk of making the change is too high (Richard, 2009).
In addition, the manager and employee will be fear the loss of power and status even there lost the jobs. In this all the reason, implementation should be more and more carefully, and the entire employee should be involved in the change process (Richard, 2009).
4.2 Management Improvement
The Daimler Group is a globally leading vehicle manufacturing with range of premium automobile, vans, buses, and trunks. However the different countries have different culture and different management. The Daimler Group is a individualism society that to focuses on long term group commitment. Those mean, making decision is a higher an individual in management. The higher an individual rise in management, the greater the number of impact of contingencies such a level of responsibility firms particular, there is also a need to understand any additional complexities impact decision making (David, Garry,2009).
Therefore Daimler should more specifically decision making by group, typically a committee or large organization like Daimler to make poorly supported, hasty, and suboptimal decision that each member might individually consider to be unwise and would disagree with in private. This reason group based decision making provides many benefits such as speed, flexibility, and positive team number development (David, Garry, 2009).
Daimler Group AG is one of the successful automotive companies, with strong brand and innovative products. The Daimler Group is one understanding of organization as communication is grounded in a body work that process of the constitution of organization communicatively company.
However, those framework analysis results showing that, this company will be more straight issues more than weakness. A part of develop automobile that increasing economic and environment friendly. The worker working environment safety and benefits, ensuring that employee can continue working over the long-team. All of this result is showing that, Daimler is a good management company.
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