Tuesday, January 30, 2007

Corporate Culture : A view


                       Southern Economist,Volume 45(2)2006

An organisation works through its workforce, which comes from different walks of life, having varied culture, social status, educational background, knowledge and experience. Organisational culture plays important role in changing the approach, attitude and thinking process of employees. It is the character of an institution, which indicates ethical values, beliefs that support the objectives of the organisation and theme of its mission. Culture is nothing but a set of cross individual behavioral mechanism. It reflects how individuals and groups in an organisation interact with each other and with people outside the organisation.

What is corporate culture?

Corporate culture reflects both social and behavioural pattern prevalent in the organisation, and the way work force interpret their experience and guide their actions. It is the living philosophy of the institution and projects its reflex system. In fact corporate culture reflects the sum totals of objects, ideas, beliefs, values, assumptions, practices, attitude of people their language pattern and reveals the minds of executives. It is the live wire, which stimulates radical changes in corporate performance and influences the way things are done in the organisation. It is a powerful force at work inside the organisation, which drives action .It gives an insight to the internal climate and characteristics of the institution

The philosophy and culture prevalent in the institution has direct impact on employee’s attitude towards work, peers, subordinates and superiors. There is relationship between the culture prevalent in the organisation and performance of its work force. It has inherent influence on the career aspirations of people, their attitude and approach towards competition, and corporate objectives.

Why Corporate Culture?

Corporate culture is the focal point of inspiration, effective guidance and causes bottom line consequences. It plays key role in shaping and reshaping the organisation. It is the powerful tool that helps employees in attitudinal change, process of thinking and acts as a catalyst in employees’ behaviour modification.

Good corporate culture provides social status and pride to employees, and gives them a sense of identity and belonging to the institution which ultimately results into their assuming greater responsibilities, and enhanced productivity.
Corporate culture that is built on sound ethics and principles has positive impact on the strategic development, productivity and learning. Despite difficult environment employees’ stick to the institution and contribute to its success provided it has positive culture

Leadership and Impact on culture:

Building of corporate culture is the key to the executive effectiveness. Cultural intoxication can produce both positive and negative impact .It depends upon the culture embedded in the organisation philosophy. Hence chief executive has to establish values that subordinates can be expected to embrace.

Positive leadership plays important role in building good culture. It influences subordinates confidence in superiors. Unless people have faith and confidence in their superiors, that they will be supported, taken care, they will be appreciated and rewarded for good work, they will shirk responsibility, and delay or avoid taking decision which will ultimately have an impact on production, services, and market reputation of the institution.

Executives in the organisation have to realise that corporate culture is the instrument, which forges the spirit of collaboration amongst work force and germinates mutual trust and cooperation. It is the natal chart of the organisation and key to excellence .It is the touchstone, which differentiates between two organisations. Depending upon the culture embedded in the organisation philosophy, it can have both positive and negative impact.
Culture has contagion effect. It gets contaminated and deteriorated at a faster rate. A culture may be effective at one time, under a given set of circumstances and ineffective at other time.

Culture and technology:

Due to technological developments, human interface is being replaced by technology. The implementation of technology does indicate the culture of the organisation. The experience one gets while interfacing with technology speaks a lot about the culture. The imagination of the programmer, executive’s maturity level, experience and approach indicates the culture of the institution. An individual experiences on interfacing with the technology. Generally people interfacing with the system do not feel the way the organisation feels and the responses received do not match the expectations. Where ever the system has in built option of manual interface the person attending to the call either has insufficient knowledge or there is no response. In the event, where the person interfacing with system has an option to send e-mail, it is in general observed that the computer-generated response is that “the query is being looked into and the response will be given within 24 hours”. However, when the response as assured is not received it not only results into frustration but speak volumes about the culture of such techno-savvy organisation.

Classification of Culture:

Understanding and interpreting organisational culture is an important activity of supervisory team as it affects strategic development and productivity at all levels. In a larger organisation there can be different culture in different sections across the units which are due to the values and attitudes of the department manager as they can influence the culture in his / her unit down the line.

The behaviour of the members of the senior team, their reactions, what they talk about, their tone and tenor gives an impression not only about their maturity level but also indicates organisation’s strategy, management practices and the culture prevalent in the institution.

Culture is impressionistic. An outsider can easily spot the culture by entering an organisation and observing the approach, attitude of people towards work, executive’s attitude towards employees and their verbal and non verbal communication, comments/observations on internal communication and the way people are dealt and deal.

Culture in an organisation :

Work or Kaam Culture:

The main motto of staff in an organisation having work culture is performance with excellence. They are committed and devoted only to performance. They work with dedication. Staff in such organisation is self-motivated and charged. They derive pleasure from work as It gives them internal satisfaction and a feeling of accomplishment. They accept challenges. People at all levels are result oriented. Every one wants to show results better than the other. There is competitive spirit in the institution and mutual trust and respect at all level in the hierarchy. The whole organisation is interwoven. The attitude and behaviour is helping. Organisations having work culture are performing units

Take it easy or Aaram Culture:

This is just the opposite of the culture mentioned in (1) above. People at all levels in the organisation take things lightly. They are shirkers. There is hardly any seriousness towards work or performance. The attitude towards work is casual. Things take their own time. People in the organisation pretend to be busy without work. They work only up to the subsistence level so that no one may point out at him or her. They neither refuse assignments nor perform. The survival of the organisation depends on the performance of a few dedicated and committed workers. The common excuses for delaying, avoiding work is “Come tomorrow”,” Boss is out or busy” etc..

Interfering Culture:

In an organisation, which is predominated by interfering culture, superiors interfere at each and every stage of activities. The interference is not for ensuring the quality of work but to demonstrate the authority and power vested in them. Performers are not given independence to work. Though the people work at the optimum level, the output is generally delayed. Interference at each stage kills the zeal of dedicated workers and they get demotivated. Other than giving instructions at every stage, superiors neither guide nor contribute.

Superiors fail to realise that their attitude reflects lack of confidence in their own capabilities and not in the ability of the subordinates. Workers have low esteem for their superiors. With the passage of time performers stop taking initiative and dedicated workers adopt casual approach towards work. To judge the capabilities of superiors they start consulting them at every stage. In the process output is delayed and quality suffers.

Initial Culture:

Those superiors who follow the above culture do not attended papers unless initialed by all concerned. Before attending to any paper they ensures that the subordinates have initialed the paper put-up to them. Superiors insist Initials even on non-important routine issues and return papers only for want of initials by subordinates. The papers are tossed in the office between people for initials. This results in to delay.
Many a time it is observed that a four line non-important letter bears over half a dozen initials. Superiors do not delegate authority to subordinates to sign even the routine standard acknowledgements or correspondence just to show their power and authority. The staff develops agitated feeling towards superior. The purpose is not to keep subordinates apprised with the developments but to fix him if some ting goes wrong at a later stage.

Cabin Culture:

Superiors following cabin culture confine to their cabin. They do not come out to discuss the issues, problems with the subordinates. Those having glasses in their cabins for transparency, go on calling subordinates even for irrelevant, petty issues / matters for giving an impression that they are busy in the work. Superiors desire to be surrounded by the subordinates, as it gives them feeling of power and prestige. Superiors do not realise that this attitude on their part disturbs the entire work process. They do not realise that cabin is nothing but a sort of quarantine so that their germs of inefficiency are not passed on the working force.

Gossip Culture:

Under this culture much of the productive time in the organisation is wasted on unproductive issues. People take more interest in office politics rather than on work. Bosses discuss politics over intercom or over phone just to give an impression that they are busy in office work. Every one in the institution takes interest in grapevine culture.

Inquisitive Culture:

In this culture employees take keen interest in finding out more and more about the policies of the institution, personal and family life of the bosses, their official engagements, discussions or instructions given during the meetings, issues discussed in the board etc. This is done to impress peers. Lot of time, energy and office facilities are wasted in acquiring the irrelevant information that too at the cost of productive time. Even those in the higher echelon play this game and this precedes performance. Such type of culture is prevalent in non-transparent organisation.

Projecting Culture:

In this culture people project their performance out of proportion. They project themselves to be the only performer in the organisation. Positive projection is done for self-upliftment and negative for those who perform with excellence and are competitors. Projection is done at the cost of others. Projectionists form a cartel. The members of the cartel project one other and people at the top believe unreal things to be real and bestow reward. It is a planned manner of throwing dust in the eyes of those who matter. The impression once formed remains ever as courtiers surrounding the superiors have their own cartel.

Discuss Culture:

This culture indicates lack of self-confidence of superiors. They hesitate in taking decisions. The only thing they religiously do is to put remarks "Please Discuss” on the issues / papers referred to them by subordinates. This remark is invariably put on all the papers whether relevant or irrelevant or even not related to the office or person concerned .It is generally done to know the views of subordinates and instructions are given thereafter without any contribution from superior’s side. Many a times it gives an impression that the superior either has no idea of his own or does not want to exert his mental faculties since he craves for the idea from others. Generally discussions with subordinates are not to listen to their views but to force the views of supervisor.

Marking Culture:

It is a common culture prevailing particularly in multi layer public organisations. Superiors promptly dispose papers received by them by marking them to the subordinates and thereafter silently forget all about it. No instructions are given. It is only after getting reminders, that superiors wake up and action is initiated. Ultimately, the subordinate is blamed for the delay or for not attending to the papers. Superiors do not have track of pending matters in the departments handled / supervised by them. The issue is deemed to have been closed in the absence of reminders.

Sabotaging Culture:

In this form a culture every one in the organisation looks for an opportunity to sabotage others for their own progress, recognition and getting rewarded. People are jealous of the achievements and progress of peers and try to poison the ears of those who matter. The philosophy behind is that competitors should not progress. Apparently competitors appear to be close to each other but in fact they are after the blood of each other. The entire energy is wasted in planning to malign competitor. People carry tales and false stories about others and derive sadistic pleasure when they find competitors in hot water. This culture props up at the time of promotional or elevation exercises. Good performance of competitors is torpedoed in concealed manner. Environment of mistrust, disrespects, prevails in the institution. Sabotaging is done through lobbying.

Ignorance Culture:

To avoid shouldering additional responsibilities, people in the organisation pretend to be unaware. Their standard reply is " I am not aware" or “ I think such and such person will be aware” or “I will find out and let you know”. It is not the subordinates, even those who are at the helm of affairs adopt the attitude of ignorance for shirking work.

Non Instructive Culture:

Under this culture superiors do not give any guidance, directions to the staff. Staff is asked to do things on their own. Superiors mark papers to the subordinate with the remark "Please do the needful”. Though superiors take the pretext of grooming the subordinate for shouldering higher position, in fact they disguise their incompetence under this cover. Giving clear-cut direction enhances their position in the eyes of subordinates as they feel superiors to be capable.

Monitoring and Instructing Culture:

Instead of directing, guiding, understanding the ground realities and solving the problems faced at execution level, executive and his team prefers to monitor the performance. They talk only about performance, achievement of targets, goals and results. Their approach of slave driving does not yield results. Operating units get verbal thrashing for non-performance. Superiors behave like authoritarian and do not listen even to the genuine problems. They give only instructions. Subordinates start taking instructions lightly. They evaluate pros and cons of not coming up to the expectations. They get alienated and work suffers. In the long run they become non-performers. Expecting the performance without support leads to frustration and demotivation.

No Culture:

When executives in an organisation adopt different standards for different people in the similar situation with intentions to bestow favour to a selected few close to them it indicates absence of culture. People loose faith in the organisation, which ultimately results into the downfall of the institution. People start alienating and look for satisfaction outside the work place.

Yes Boss Culture:

Under this culture executives are surrounded by yes men. These persons endorse the views of the executives irrespective of the fact whether it is right or wrong. They do so either under coercion or fear of repulsion or for getting favours. The executive does not get the right view of the affairs prevailing in the organisation and takes decisions, decides policies, which may be detrimental to the institution resulting into discontentment, dissatisfaction and deterioration in the performance of the institution. The yes-boss culture inflates the ego of superiors and they start living in fool’s paradise

Conclusion:

If we want to have an excellently managed well-performed organisation, naturally we have to look towards the work place and the work force. Motivated workforce can do miracles. They are self-starters, and can bring success to the organisation and to the top management. Therefore, it is must to build a corporate culture on sound ethics and principles. An executive should be vigilant in understanding the type of culture being followed at different levels in the organisation. He has to tune more eyes and ears to seeing what really is going on in the institution.

If the executive observes that any culture other than the work culture is prevalent in the organisational landscape, he should understand that the institution is marching towards doom. He has therefore to take corrective measures without loss of time and become transparent. He should understand that the work force imitates the style of superior and his style is the basis of culture of the organisation.

Positive and helpful culture helps in motivating staff and prevents them from becoming dissatisfied. If the organisational climate does not satisfy the needs of staff, then they would be dissatisfied and would become less inclined to work towards the organisational goals.
















Ethics in Management: An analysis

                            Ethics in Management: An analysis

                   Southern Economist,Volume 45,(11)2006
The core of good management is set of three virtues viz. Ethical Values, Morale and Credibility.
Ethics, as an important aspect in management is gaining attention of business organisations. In the era of fierce competition, business organisations are using all tactics in their arsenal, whether fair or foul to combat competition faced by them. The sole objective is to woo customers who are the human aspect of commercial transaction. It is the customer who is treated as profit and all rest is treated as cost.

The main yardstick for evaluating performance of a business enterprise is profit, its market share, market penetration and market value of its share/stock. Earning profit is not bad, adopting unfair means is bad. Business organisations in general abuse all methods for earning profit .We treat every thing, even human values as secondary when opportunity to earn profit knocks at the door. We even over look how human beings are treated in the organisation, and they are exploited. How body shopping is done. We treat human being as an economic activity. A person becomes uneconomic when he fails to give results. He is looked down and labeled as non-performer. All these and other malice in the organisation are due to the absence of ethical values.

What is Ethics:

Ethics is a branch of philosophy. It is a normative science because it is concerned with the norms of human conduct. It relates to principles or standards of human conduct that governs the behavior of individuals and groups. In fact ethics is a process of rational thinking for deciding what values to hold and when to hold them. It requires continuous realignment of values and reasoning patterns in accordance with ethical principles.

Ethics is the science of morals or code. These are moral principles that govern a person or group’s behaviour. It is knowing what is right or wrong, and then doing the right thing. It includes the fundamental ground rules by which we live our lives. Right is right even if nobody does it and wrong is wrong even if every one does it.

Ethics has two things. First, it refers to well based standards of right and wrong that prescribe what humans ought to do, usually in terms of rights, obligations, benefits to society, fairness, or specific virtues .It also deals with virtues of honesty, compassion, and loyalty.

Secondly, it refers to the study and development of one's ethical standards. It is continuous study of our own moral beliefs and moral conduct, for ensuring that the organisation has standards that are reasonable and solid.

What is Moral:

Moral relates to righteousness or unscrupulousness of human character. It is concerned with or adhering to the code of interpersonal behaviour that is considered right or acceptable in a particular society. It is holding or manifesting of high principles for proper conduct. Moral is the standard behaviour or beliefs that are considered good and acceptable. Moral talks about practicing virtue and discipline. It teaches us goodness. It teaches us that what is good must be good for all. A person is good when he has moral. He is moral when his actions conform to and embody a good will i.e. when his will is good. There has to be active goodness. A passive goodness is good for nothing.

What is Business Ethics:

Business ethics is now being considered a part of management discipline. A business organisation deals with product/service and has relationship with stakeholders. It is knowing what is right or wrong in the workplace and doing what is right. Ethics in the workplace sensitizes leaders and staff in knowing how they should act. Ethics in the workplace can be managed through use of codes of ethics, codes of conduct, roles of ethicists and ethics committees, policies and procedures, procedures to resolve ethical dilemmas, ethics, training, etc.

What is corporate obligation:

The obligation of a corporate has been well enumerated by Swami Ranganathanda in his book “ Eternal Values for a Changing Society” (Volume –IV page 366). According to him “ A Corporation’s obligation are two fold - Internal and External. Internal – to the corporation for continuance and development: to its employees, for their human dignity, development of skills, promotion and security; and to its investors and shareholders, for a reasonable return on their investment. External -- to the state, by way of taxes due; and the consumer, for supply of quality goods at a reasonable price, and to the community at large, by suitable welfare measures”’.

The question about ethics in the economy arises because economic decisions and activities in general are related to other people, which directly or indirectly affect them. Therefore, it is necessary to have moral economic behaviour. It would thus be observed that social responsibility of a corporate is to operate business with higher ethical standards, to adhere to statutory provisions and obligations and to meet public expectations.

What is Duty and responsibility:

Duty and responsibility are two phases of the same coin, which can not be separated from each other. Where there is duty, there is responsibility. Duty without responsibility is unconceivable. These are the commitments in a broader prospective to family, society, nation and institution in which a person is associated. These are the desired behaviour pattern from an individual of common prudence. Desired behaviour pattern is the germination of ethical values.

Duty and responsibility are relationship and position oriented. For example –Parents duty towards children is to take best care of them, educate them, and make them law abiding citizens. Whereas, the duty of children towards parents is to respect them and obey them, have strong character, become educated and earn name for family and nation.
The duty of police is to protect society from evil, arrest crime and create a free, fair, fearless society. Whereas, the duty of the members of society is to be law abiding and provide all support to curb the menace of non law - abiders.
The duty of an employer is to have dignity of labour to give proper and just compensation for the labour put in by them, create conducive working environment, take care of their promotional and elevational needs, have fair and transparent dealings and impartial attitude. Have humanistic values in the organization. On the other hand, employees, duty is to be loyal, to work with dedication, devotion and give their best.
Duty is not duty unless it is consciously done for the sake of duty. To do right is the moral duty. If duty is done for the sake of some ulterior object, though the act may not be illegal but certainly it may not be moral.

What is Accountability :

A man is morally responsible for what he has done or has neglected to do and has left undone. A man has to subject himself to his moral tribunal, a court of his conscience. The moral tribunal has a right over him to call him before it with reference to all or any of his deed. A man is responsible to his conscience. He has to answer why he did one thing rather than another thing. Why two sets of rules and regulations were practiced. Abiding by the judgement passed by moral tribunal i.e.his conscience is a step towards correct direction. To do right for the sake of right is moral judgement.

Why Ethics in Organisation :

Organisation is a platform where people interact with others both from within and outside. Following ethical values has an impact not only on the culture of the institution but also on its reputation, standing, and motivation of workforce. Poor ethics can be extremely damaging to organizational performance. Non following of ethical values creates crisis of credibility.

An institution is exposed to risks from within and outside. The internal risks are more dangerous than the external. Internal risks arise mainly from the workforce and it makes the organisation hollow. It is like canker to rose. If the management is just and fair in its dealings with the staff, does not subscribe to the policy of favouring a chosen few, have common measuring rod for all, the chances of risk arising from within are minimal. Transparency is the asset for the management.

If an organisation wants to grow and to attain heights, it has to have sound ethical footings,:it has to be fair and transparent. It has to adopt fair practice code and follow the principles of good business and human conduct. Ethical sense is the fundamental bond of unity and progress. Therefore, people in position will have to be moral before they can be wise. If organisation expects discipline and loyalty from the workforce, it has to be transparent, has to have well defined code of conduct for one and all and without exception. There should not be deviation from what is preached and what is practiced. Otherwise there will be adverse impact on the behaviour pattern of employees. Nurturing ethical values at work place has important role on the productivity. Corporate governance is adherence of ethical values. It deals with corporate fairness, transparency and accountability and conducting the affairs ethically.

As example is better than precept, the following real life factual incidences will speak a lot about failure of ethics in human relation policies and the necessity of ethical values in organisation.

Incidence-1

In a promotion exercise, the Chief Executive Officer (CEO) who was heading the interview panel advised one of the candidates that as per the policy the interviewee can not be promoted as he had hardly two years left for attaining the age of superannuation. The candidate was with the institution for over twenty-five years and was one of the star performers. Whereas, in the immediate preceding promotion exercises conducted six months ago and succeeding promotion exercises conducted six months thereafter, the same CEO promoted candidates who had even less than six months for retirement.

Analysing this episode from ethical point of view the questions that arises are:
· Whether the reason for denying promotion was correct?
· Was it ethical to promote candidates who had less than six months to retire?
· Does this not cast aspersions on the credibility of the management?

Incidence-2

The Chief Executive Officer (CEO) was one of the members of the interview panel constituted for promotion exercise. During the course of interview he showed his unhappiness about the performance of the subsidiary of the organisation headed by the candidate. The candidate could prove with facts and figures that the performance of the subsidiary had improved many folds during his tenure of two years compared to the performance of the past eighteen years and the stagnant institution had become vibrant and was turning around. The candidate talked with facts and figures.

While the other panel members were impressed with the progress made by the candidate, the CEO refused, for his own reasons, to acknowledge the progress and continued to harp that he was not satisfied with the progress and performance, and subsequently denied him the promotion. Interestingly the immediate predecessor of the subsidiary whose performance was totally lack luster was promoted.

Analysing this episode from ethical point of view the question that arises are:
· Whether the approach of CEO was morally correct and ethical?
· Whether his decision was just and fair?

Incidence-3

In another case the CEO of an organisation denied promotion to a candidate as he had some time back undergone a heart surgery and felt that he may not be able to do justice to his work totally ignoring in the process that he (i.e. the CEO) himself had undergone a heart surgery two months ago and was able to attend to his work!

Analysing this episode from ethical point of view the questions that arises are:

· Whether the approach of CEO was correct?
· Whether it was ethical on his part to deny promotion on health ground when he himself was in a similar situation?

The incidences mentioned above relate to the people within the organisation. Had the CEOs in the three incidences mentioned above put themselves before the moral tribunal i.e. conscience they would have found it difficult to take decision that they did. These incidences indicate crisis of credibility in management and absence of ethics.


Ethics reflects the quality of leadership in the organisation, a critical variable in human behaviour. While one explicitly or implicitly profess to adhere to rules, making exception in favour of a person is injustice to other.

Executives who follow ethical values are supposed to have scientific frame of mind as ethics lead them to logical reasoning. Therefore they take decisions which are based on facts and figures and are unbiased by personal feelings.

As mentioned earlier, organisations also interact with outsiders i.e. customers, government agencies and others. Ethical values persued with outsiders has an impact on the reputation of the institution. Business organisations have realised that loosing reputation is worst than loosing money. An organisation not following ethics in business has quick mortality. What is promised to a customer must be adhered to whether it is quality of product or service.

Conclusion :

Absence of ethical behavior affects operational performance .It has impact on group dynamics and on productivity. Poor ethics blinds the organisation to the realities of declining environment and makes it vulnerable to setbacks. Good ethics on the other hand have positive effect on organisational activities and on results. Productivity improves. Group dynamics and communication improves, and risk is reduced.

Ethical values find manifestation in the context of interaction between human beings in organisation and society. It is inseparable from social context. The inherent message behind ethics is the message of interdependence, the message of mutual service. If one wants to achieve his own welfare, he must strive to ensure the welfare of other human beings also.

“Love thy neighbour as thy self ”is what says Jesus Christ.This is the central theme of ethics and morality. Jesus did not talk in a narrow sense. He spoke in broader terms i.e. to be loyal to the group, and to the society through service. He hinted that humanity has intrinsic value. That one should not do to others, what we would not like others to do us. This is the crux of ethics.

Performing one’s duties, keeping the conscience to the fore is the primary thing. Ethical awareness is the key that can solve any issue however complicated it may be. Before we take a decision or do an act, a basic question is to be asked to self- Is it correct? Am I just? Am I not favouring one at the cost of other?
An act can not be said to be ethical if it is not approved by society at large. Right understanding and proper solution depends on true knowledge of ethics.

Organizations practicing ethical values not only prevent unhealthy behavior but also inspire superior reasoning and performance. It is only through human nature, and ethics, that we can inspire greater levels of innovation, teamwork, and process breakthroughs that result in sustainable competitive advantages.