Principles of Management - Lecture 04

okay we continue with a lecture you should be like lecture them war now everyone with the beginning class and we just discussed which are the major stakeholders we continue with now the internal environment in the internal environment is the environment inside the business of the business end of the business employees in that particular environment is called the old-school organizational culture so let's see what we have organizational culture is shared values now what these are values that all employees have like all we are a great University here we are always about student satisfaction we're out of hood modification whatever the shared values principles principles and tradition traditions are associated with a definitive here there's a welcome party for all incoming students please come on class begin all right so traditions will be also when there is graduation you're always you know have a nice little party traditions for iPhone is to throw up more Apple is to throw a big party whenever a new iPhone model is coming okay so different businesses and different traditions and D they follow these traditions they are different principles all with a principle will be we always treat the customer first for a basic business principle is that the customer is always right okay and there's and ways of doing things ways of doing things means that workers inside they do things their own way they have their own method of doing things they got their own computer system to do things an example as part of the organizational culture here is the LMS system which you all use so it's because you all use the LMS system and because actually all other professors use it me is a newcomer but I have to use the LMS system too so usually new employees get to learn the organizational culture quickly because you can operate all it within the organization in this particular cultural feature is technological so technology boggles the term to warn next time okay so new workers new employees happen were the culture as quickly as possible have to learn the technology have to learn the procedures according to which the business works and operates but culture is about values and principles and traditions culture is a perception okay it is a perception culture is also about the as I spoke a little while ago about the image but the image for example oh he is a very good professor or now is not a good professor or oh he's giving good examples for books or goods are exams or not giving good exams okay so it is how in our case professors perceive the universe how we work how we operate and so on organizational culture is not concerned concerned whether members liked it or not so here the University has a culture it doesn't care if I like it or if I don't like it okay this is how things are done okay you do the things on the LMS system classes begin 130 okay and finish at 3:15 or 3:30 okay there are certain things which are the way they are and if I don't like it I should change or live with it or find another job right and that's part of organizational culture new people and hard times changing the culture well sometimes well often times especially when against the business gift they're very very successful the culture deteriorates the culture goes bad the culture gets corrupted and what they usually need is a new executive a new vice president to change the culture and a lot of executives or business managers say oh I can change thing in a business but the hardest thing to change is the culture how people think behave operate okay it is very difficult change the culture and that's why managers should be extremely careful to keep the culture good record the chapter one to keep the culture efficient to keep it effective to keep it productive okay to keep it good for business because once it goes bad it's extremely difficult to change example of cultures which just never change is it governments and that's what usually happens we get new elections if you got a new prime minister you got a new president he's trying to change the culture of the government but the government doesn't change you're not going to change the progress see you're not going to change ways you're not going to change the school system you're not going to change that healthcare system but so culture is extremely difficult to change okay and employees describe the culture organizational culture in similar terms so no matter how different they are no matter from what country they come from no matter what their religion is they usually describe the culture in a similar way well that's what the culture is what different people think or receive is similar in the institution okay institution same as organization same as business alright and they got here a strong corporate culture well first of all we need to define I think it's coming up here now it's not what is a strong culture strong culture means not it is shared by everybody it is shared and extremely difficult to change and here they had some example the textbook for the strong corporate culture main success and here for China whatever is going to signal a slogan which was for you know into a corporate head is just general big business but the idea is very simple if a business will be successful it will be a strong culture now as as yoga employees have they get to work in a very very similar ways okay and they got here some how can culture be assessed well it's a little complicated but we'll try we begin at the very beginning you're beginning to zoom in here so we begin organizational culture and then these are the factors over here okay and now let's begin with this one outcome orientation and maybe use them into your also this piece too so get it kiss these two pieces together very important is a strong culture is focused on results does it get results does it bring in customers doesn't bring in revenues does it sell okay is the customer satisfied so strong cultures are very oriented for outcomes same as results they want to see what really happens it's not simply about whether we do things right over to the wrong it's about the result for example our outcome is for the University it's not exactly if we teach you well or not what's the final outcome it's whether you get good paying jobs quickly okay that's funny if somehow the university students get good jobs easily and quickly this means results are good okay whether economics was good or not good weather management course was good or not good weather counting was good or not good okay the final result is you get a good job for good money and that's what is important next piece is over here which is people orientation to what extent the business focuses on people whether it's its own workers or so usually strong cultures or value management decisions into account the people so is the business manager focused on the person what kind of power there they may have they may be sick but still gotta come to do the work they may have some other problem so focus on people also determines the culture in Japan the economy is a businesses characterized by very very very strong focus on people same thing happens in Sweden Norway in other Nordic countries so usually usually successful economies in successful businesses focus on people they make sure that their employees are ok if the employees are ok the work will get done if the employees are not happy business is alright next piece is team orientation and here to what degree your degree to which work is organized around teams as opposed to individuals so to what extent the institution is focused on teams well here in universities we don't have to very many teams each professor working for his own meaning them for myself but I do the work along I wish is course below so here for this course no teamwork I teach along for accounting I eat alone again but for other businesses didn't you can't just work alone designing and I can't you can't really work alone eating a huge team then that team will communicate with a lot of users can allow customers a team orientation is needed when you design a car okay so sometimes teams are very important a lot of times things are not there we will next to aggressiveness the degree to which employees are aggressive and competitive some businesses encourage employees to be very aggressive and they call this aggressive culture it is expected if you're in the if you're trading stocks bonds if you're into financial in the financial industry working with customers you're expected to be aggressive but we are here here in academia they don't expect us to be addressing for example aggressive fighting about getting a particular course we don't do that you want they're going to get the data management course you want marketing okay to take the marketing loss we're going to give with violence okay I think the finance course okay so but aggressiveness is sometimes important but other times it isn't know anymore and how aggressive employees are determines business culture this one is stability the degree to which organizational decisions and actions emphasize the current environment office whoa okay so sometimes businesses are very stable by nature other times they are extremely unstable we already discuss before okay and for example universe is a very very very stable ok restaurant which serves the local town is usually a stable business but restaurant which usually serves tourists is not very stable you may get too many tourists at one point and I'll get half and another one you may have Swedish tourists you may get British tourists you may get a chinese tourists ok different tourists from different countries they have different expectations different ways to consume in their different customs and finally innovation and risk a an example of innovation in a business it is let's say this particular camera the one that you're seeing over here the one with which we record you don't see many other professors using the camera but I am introducing an innovation and I use the record the lectures I posted on YouTube and I provide you a link with your local LMS system so that's an example of innovation ok and sometimes businesses encourage innovation sometimes businesses say no we don't want innovation we are good business we're making good profit customers are happy you don't want to change anything ok they just say if we got a good business why change it and risk making it bad ok or risky thing so sometimes businesses will say sure yeah you want to try why not let's experiment let's see okay let's see if you guys like the camera let's see if you're going to watch those and if you like it next semester we'll do it again and if you don't like it we close the camera hit no more okay essentially it is an innovation that serves here and if you find a good helpful variable maybe other professors will also contribute and if you don't like it then adjust on the hate we don't like it and we don't use and that's the mmm okay so the way to assess culture once again is focus on results focus on people on the team on aggressiveness stability risk hitting home and I missed attention detail is detailed important or not very more to a focus on big picture for school-aged attention to detail is for you to know one little thing about this particular course attention to the big picture is you can actually write in good English you can express your thought you can think critically you can analyze you understand what's really important let's see what else we have okay how do employees learn about the culture well they literally like stories so the first thing when I come here is a new employee exactly four weeks ago I was that I hear from other professors which were here for one two three years stories about the university stories about students about whatever he's having so by hearing the stories I get to understand the culture all right I get to understand the organization people behave how other professors behave how management behave in your case how customers new students are customers so I need to learn as quickly as possible the culture and fit in to the culture usually takes between two and two six months for seven to learn an organizational culture so you can't expect it to be within one week exactly like everybody else but maybe within two months I will be similar I will acquire civil I'll provide civil exams and grades and all the other things step by step the other thing is rituals ritual is doing a particular thing in a particular way so so we do this this whole with this that way okay certain material symbols in what city and language well here part of the organizational culture is actually the uniform your will look very similar at me with similar uniforms of shirts and pants are the same so the uniform here is part of your culture ouch when I was in the Arab world there's no uniform okay students on the other hand when I was there there was a specific requirement about professors every professor's gotta have a discount so and language so where is the organizational culture derived from where is it come from what is its origin in the origin it usually comes from the founder from the one who created the business he created the business because he had different skills that's the key different skills different required different way of doing things okay and she served the customers in a different way for example Apple Computer for now the modern-day iPhone the modern-day iPhone which called up smartphone was different okay it was the vision of Apple's founder Steve Jobs okay so is that a lot of times the founder the one who creates the business he creates the business because he sees something different about the product for something different about the customer and she creates this culture which is first two three ten twenty employees it has they bringing new people they get into the same type of culture where you can get a big corporation of ten thousand people can all having a very similar culture originating from 20 30 or 100 years okay so it's the founders biases and the founders assumptions about what the organization and its values should be so Steve Jobs things that we should be very very innovative okay Apple always has a different pry but echo is ejobs is very very focused on hi it's gotta be nice it's gotta be slick it's kind of easy to use okay it's gotta be what we call now user friendly so he's got very specific requirements okay and let's see and the organizational culture comes from well the first employee employees learn from their own experience so the very first employees let's say create a card the design is one of the particular things they made particular these things because they oughta know we don't do this or nobody with that or whatever it might be the case but example will be that some professors give one midterm at a professor's different to it okay some professors give easy midterms other professors give hardly terms okay so what is the organization's response to this the organization's responses they will be one winter and only one winter you cannot have two minutes okay and then the second organization's responses it must be a committed we'll check whether the midterm is good beforehand in approval okay so this is a lesson learned from the past okay and they incorporate as part of the business as part of the procedures and as part of the institutional culture okay so the institutional culture depends heavily on what was learned in the past okay and say oh no we don't do six quizzes six quizzes are too many person or we know due to myth or another important lesson we don't have 50% for the final that's too much right when you like 20 or 30% right maybe 35 all right well that's part of organizational culture so one of the first thing they do is we'll try to keep the weight of the final exam between 30% and 40% okay and they say why because our experience shows that is optimal okay so the till we don't make it 50% and I don't make it worse okay another example of experience is the one which I explained to you at the zoo grades Ram if it's between 80 and hundred a gift K between 70 and 80 be okay what I did was copy things from my colleague okay it's not because I'm lazy it's not because I'm stupid or stuff because I don't know it's because I'm just a wiring part of the local culture okay you as customers are familiar with that particular table you see in many other courses and I just use the same one to make it easy on you okay so that's how culture gets work I simply asked in here how many returns what's the great what is this what is that what is the waiting all the other and that's what I'm trying to do as fast or as quickly as possible it worked okay so let's see what we have how does organizational culture affect managers okay well in what they do and how they behave that's very simple that's how I do my course these are my grades it essentially changes my own behavior to be similar to all the others okay so that it's not fundamentally different okay except again that's an innovation and through its electable ventures do as they planned organized leave and control so when I'm creating this particular course I'm thinking and I'm asking the other professors well how many chapters do you usually teach and they tell me well a not 15 right 15 years not great maybe 10 and I said okay plan for and chapters so the internal culture already affects how I plan my work in a way that affects how I organize my quizzes my exams my midterms my final okay how I organized my whole course so I already looked at other syllabi apana purposes and I've tried to do the similar thing so in a sense it affects my own work okay my manager tells me with this because this we do this and you don't do this we don't do this we don't do this okay and I try to stick with what's usually done okay and this is another stuff you skip let's see well I can already explain how corporate culture business culture or as a tional culture that's what employee is - I've been explaining also that one - how I behave in teacher depends on what others do about the culture okay strong culture reflects employee acceptance and commitment to the organization is very very important that employees are committed to the organization they care about the organization a good business will have good committed employees okay that's why many businesses have trouble because employees come they were three months they were six months and they go in that's not good for business business is good when you have many long-term and stay work keep the culture keep the image and possibly keep the customers - okay Vica because you employees are not familiar with the past they don't know they are not familiar with coming to a new culture to a new university to a new religion to new culture is not easy for us for anything okay we need some adjust okay and the stronger the culture the more it affects the employee so in a very strong culture things are there for example the culture when I was teaching in Macau was relatively weak they say oh we want to do this okay we want to give a project okay you don't want to give them a project okay you want to give them a final exam that's fine you want to give it open exam okay want to give it strong of applause the exam okay but basically they tell me they tell us you do the way you decide the way I was working at the American University in Bulgaria was like that they say you choose your course you choose the exact you choose the day you choose what to do and the culture was we nothing is free environment in advance and essentially what students complain is will have ten different and they are totally different each professor has his own little system which is totally different from everybody else but they don't understand that sometimes this is advantage to the student because they get to see a professor from Russia who works in one way a professor from Brazil who were completely different a professor from China who works in a different way but Japanese professor we also had a Korean professor we also had an Egyptian professor all right to the stand so you actually the students get to see more diversity get to learn more when the culture is we when the professors are very different okay but when the culture is strong it makes it easy for the student okay you see the same exams on the same date right the same week and all the other times on the same so there is a trade-off we can't say strong culture is good and weak culture is bad for the opposite okay there are benefits to strong culture then we visit and there are benefits to weak culture it should be aware that culture is extremely difficult to change and to for I'm pretty much ready to finish let's see what we have here culture affects managers yeah if next step that's made clear module ok let's let's finish this basements very important let's see what else we got alright everyone let's try to finish we got a few more minutes this is very important this how ok managerial decisions are affected by culture specifically the player culture affect planet in culture affects the degree of risk yeah can you take a big risk can take a small risk okay culture is very important in the planning process to the level of risk also let's see what we got culture is very important in how the plan is developed whether it's developed by the team or developed by videos that we provide a simple example when I was teaching at the American University in Bulgaria the professor's which we are with the employees we get together and we distribute which courses who takes which courses and we choose our courses and we negotiate the courses between ourselves or say ok you want to take financial management okay I'll take money and bank ok and when professors agree on the courses everything's ok now in the Middle East impossible over here in the Middle East they say the department chair says you take this in this course you take this in this course ok whether you like it a lot no one and usually most professors don't like either not happy with the course they take why will sometimes a professor has a special somebody loves money inventing ok they've done it for years they are world-renowned experts okay they have spent their lives in this particular field and then the course is given to somebody else okay and he's got to teach something completed well he's not really happy okay and when professors are not happy they fell one time they tell a second time the third time they need different so turns out that when it is done in a team work with all the employees and the work is distributed and planned well everyone is happy with the way they do it and you don't have a dissatisfaction when it is done centrally and from the top usually keep are not very happy like you're going to do the quick number one you're going to do the nightshift you're going to do the day shift you're going to do the morning shift the afternoon shift and they're not happy because they said well but my husband is working the second chip that I'm working a first shift and you're working different chip we don't get to meet and see each other and see well if you're asking a good shift you want to decide well my husband second shift I'd like to take the second shift okay and so when you take the second shift you see sometimes people have different thinking pain they want to participate in the planning process okay if they don't participate usually they're not happy with it and finally planning is also affected by the degree of environmental scanning so Oh what is environmental scanning environmental scanning is management looking at the external environment for changes working of the global economy for changes looking at the political side for changes looking at the economic but the social so usually strong cultures over you wanna get as many involved as possible in here now what about organization in organizing the business how much total limit should be given to each employee alright how much they should choose how much flexibility issue how much you know that's very important strong culture usually gives little water weak culture gives the hard bottom autonomy means the ability of the truth of the worker to choose what they do and how they do so that's important so strong cultures are oppressive you got to do this this one you got to do this that way you got to do this this particular okay and for example sometimes there is cost maybe but I have done this for 12 years but I know that this works better and they say yeah we don't care about we do this this one okay so there are advantages and there disadvantages and organization is determined by the culture and the degree to which department managers interact with each other having us how organization is done is also depends on the culture but we got a few more minutes leading the degree to which managers are concerned with l bluey job satisfaction all right job satisfaction is in some businesses they're involved in other businesses not so okay for a little restaurant of people and the local waitress is not happening you know the place people are new waitress no big deal okay but for the business if the cook is not happy and it's a special Japanese wrapped up quiet please two or three more med students if the cook is not and the cook is about a special Japanese cooking which others are you know is very difficult to find then you got to keep the cook cattle okay so leading is very important about job satisfaction in what leadership style is important in finally about control some employees don't like to be controlled to some employees do their job really well okay you all have to be controlled other employees are too lazy other employees you gotta tell them what to do in Ghana check if they do it so it's very important to understand the culture of which employees work but I think that's pretty much it okay yeah that's it hard with it good

Channel: Krassimir Petrov

Views: 78,545

Rating: 4.8660288 out of 5

Keywords: organizational culture, shared values, traditions, diversity, outcome orientation, people orientation, team orientation, employee aggressiveness, risk taking, innovation, corporate stories, rituals, material symbols, corporate lingo, founder's biases, strong culture, weak culture

Id: x3TO7SwZZC8

Length: 40min 33sec (2433 seconds)

Published: Tue Jun 11 2013