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© Holcim (Lanka) Ltd 2008
Culture Management
2
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HR’s job is to build
Capacity
Commitment
Culture
3
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Topics
• Culture and diversity
• Why study cultures
• Cross cultures : External environment
• Organisational Culture : Internal environment
4
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© Holcim (Lanka) Ltd 2008
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World is ChangingWorld is Changing
• GlobalizationGlobalization
• Hi-Tech Vs Hi-TouchHi-Tech Vs Hi-Touch
• POIPOI
6
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Know how Vs Know-who
• Social Capital
• Built on trust and mutual value
• Reciprocal relationship
• Building our own knowledge network
• A more enduring asset than specific
knowledge or skills
7
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Face-to-Face meetings
are…
Vital. Key. I need to know
people understand what’s
important.
Uncomfortable,
confrontational and overly
formal.
Face-to-Face meetings
are…
Vital. Key. I need to know
people understand what’s
important.
Uncomfortable,
confrontational and overly
formal.
Text Messages are… Good for short messages. What I do all day long.Text Messages are… Good for short messages. What I do all day long.
Baby Boomers
1946-65
Gen – X
1966-80
Gen – Y
1980>
Baby Boomers
1946-65
Gen – X
1966-80
Gen – Y
1980>
Email is… One more thing to do,
another thing to learn.
The best way to stay in
touch.
Not nearly as good as instant
messaging and blogging.
Email is… One more thing to do,
another thing to learn.
The best way to stay in
touch.
Not nearly as good as instant
messaging and blogging.
Instant Message is… Another distraction
popping up on my screen
A good, quick way to get
things done
Like breathing—I can carry on
seven conversations at once
Instant Message is… Another distraction
popping up on my screen
A good, quick way to get
things done
Like breathing—I can carry on
seven conversations at once
Mobile video messaging
is…
No idea A novelty. Commonplace.Mobile video messaging
is…
No idea A novelty. Commonplace.
PowerPoint is… Effective and professional. My right arm. Pretty boring in a speech and
hard to make interesting.
PowerPoint is… Effective and professional. My right arm. Pretty boring in a speech and
hard to make interesting.
Search engines are… Useful, but not
trustworthy
How did we survive
without Google and
Wikipedia?
My super tool. My home page
and lots more.
Search engines are… Useful, but not
trustworthy
How did we survive
without Google and
Wikipedia?
My super tool. My home page
and lots more.
Conference calls are…. The next best thing to a
meeting.
The way we work these
days
An opportunity to multi-task
while “listening”
Conference calls are…. The next best thing to a
meeting.
The way we work these
days
An opportunity to multi-task
while “listening”
Source: Accenture
For techie kids
Generational perspective
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Generational Attitudes
The impact on business will be that those organizations unable or unwilling to adapt to the new order will
experience higher levels of disengaged staff, increased talent attrition and reduced productivity
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Generational Trends – understanding Talent
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Talent availability
39,000 employers surveyed across 33 countries in Q1 2009
There may be a temporary ceasefire, but the war for talent is far from over
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Demographic perspective
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© Holcim (Lanka) Ltd 2008 1203/19/14
Europe
Young talent in short supply
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© Holcim (Lanka) Ltd 2008
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Center for Talent Retention
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Takeaway #1: The real
business impact of
employee engagement
• The Corporate Leadership
Council’s research has found
that organizations are (rightly)
turning their attention to their
employees’ level of engagement.
• A Council survey of more than
50,000 employees at 59 member
organizations in 27 countries and
10 industries demonstrates the
real bottom-line impact of
employee engagement. Highly
committed employees perform
up to 20 percentile points better
and are 87% less likely to leave
the organization than employees
with low levels of commitment.
• The Council’s analysis has
yielded the two “rules” appearing
at the bottom of this slide, which
further convey the significant
impact of employee engagement
on the business.
The Business Case for Engagement
Employee engagement drives employee performance and workforce retention
Maximum Impact of Discretionary
Effort on Performance Percentile
Number
of
Employees
50th
Percentile
70th
Percentile
Maximum Impact of Engagement
on the Probability of Departure
Probability
of Departure
in Next 12
Months
Strong
Disengagement
Strong
Engagement
9.2%
1.2%
87%
The “10:6:2” Rule
• Every 10% improvement in commitment
can increase an employee’s effort level by
6%.
• Every 6% improvement in commitment can
improve an employee’s performance by 2
percentile points.
The “10:6:2” Rule
• Every 10% improvement in commitment
can increase an employee’s effort level by
6%.
• Every 6% improvement in commitment can
improve an employee’s performance by 2
percentile points.
The “10:9” Rule
Every 10% improvement in commitment can
decrease an employee’s probability of
departure by 9%.
The “10:9” Rule
Every 10% improvement in commitment can
decrease an employee’s probability of
departure by 9%.
Source: Corporate Leadership Council 2004 Employee
Engagement Survey.
16
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© Holcim (Lanka) Ltd 2008
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© Holcim (Lanka) Ltd 2008
Three most common cross cultural gestures : V-Sign
 Two : to American
 Victory : to Germans
 Insulting : to British
Victory
Not
Victory
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Three most common cross cultural gestures : Ring
 OK : to Westerner
 Money : to Japanese
 Zero : to French
 Insulting : Turks and Brazilians
19
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Three most common cross cultural gestures : Thumbs up
 Good : to Westerner
 Hitch hike : British, Aussie, NZ,SA
 Greece : Insulting
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Some Culturally sensitive dimensions
Individualist Group - Oriented
Americans, British, Dutch, Northern
Italians, French
Korean, Chinese, Japanese
+ Introduce with confidence
+ Be prepared to state your own views
+ Be prepared to challenge what people say
+ Introduce in relation to your company
+ Talk calmly and slowly matching the pace
+ Be prepared to do real business over meals
Flat hierarchy Vertical hierarchy
Switzerland, Germany, Netherlands,
USA, UK
France, Italy, Latin America, SEA,
India, China, Africa, Arab world
+ Have clear line of communication to senior
management
+ Keep valuable information to yourself
+ Show great respect to decision makers
+ Be autocratic in your dealings with
subordiantes
+ Take full responsibility for your area of
expertise
+ Tackle colleagues directly if there is a
problem
Source : Bridging the culture gap : Penny Carte and Chirs Fox
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Some Culturally sensitive dimensions
Acquired status Given status
Women
+ Dress appropriately
+ Act modestly
Spain, Southern Italy, South America,
India, China, Japan, Africa, Arab world
+ Show respect to people older than you
+ Consider age and length of service
+ Be paternalistic
Functional Personal
Arab world, Asia, Southern Europe,
Africa, South America
+ Allow plenty of time
+ Engage in small talk
+ Be prepared to socialize and exchange gifts
Germany, Switzerland, Scandinavia
Source : Bridging the culture gap : Penny Carte and Chirs Fox
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Some Culturally sensitive dimensions
Physically distant Physically close
Monochronic Polychronic
Hispanic, USA, Latin America, India,
Arab world Italy
+ Fix appointments at short notice
+ Allow plenty of time between appointments
+ Be prepared to be kept waiting
+ Avoid rushing meetings
+ If there’s bad news try to soften it
Anglo-Saxon America, Canada,
Australia, Scandinavia, Germany,
Switzerland, Netherlands, UK
+ Fix appointments weeks ahead
+ Send meeting agenda in advance
+ Arrive on time and start on time
+
Keep to agendas, schedules and deadlines
+ Give bad news straight away
Arab, African, Indian, Latin American,
Greek, Turkish
+ Don’t show surprise or embarrasement if
they get too close
USA, UK, Northern Europe,
French
+ Give firm short handshake
and look in the eye
SEA, East Asian
+ Give plenty of personal space
Source : Bridging the culture gap : Penny Carte and Chirs Fox
23
(Optional) File source, Department or Function, Creator
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Some Culturally sensitive dimensions
Speed Patience
Germans Japanese, Mexicans, Spanish
+ Don’t try to force the pace
Good advise :
Play SOPHOF
Soft on People Hard on Facts
Source : Bridging the culture gap : Penny Carte and Chirs Fox
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© Holcim (Lanka) Ltd 2008
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© Holcim (Lanka) Ltd 2008
Cultures are nested at multiple levels
National Culture
Industrial Culture
Organisational Culture
Subcultures
Functional and
professional
groups
Cliques and
factions
Source : Toyota Culture, Jeffrey k. Liker, Michael Hoseus
26
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Joe
Cindy
Debbie
David
Weak Org culture
Joe
Cindy
Debbie
David
Strong Org culture
Org culture is the shared beliefs, values and
assumptions between the people working toward a
common Purpose
27
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Culture Types
• Power Culture
 Within a power culture, control is the key element. Power cultures are
usually found within a small or medium size organisation. Decisions in an
organisation that display a power culture are centralised around one key
individual.
• Role Culture
 Common in most organisations today is a role culture. In a role culture,
organisations are split into various functions and each individual within the
function is assigned a particular role.
• Task Culture
 A task culture refers to a team based approach to complete a particular task.
They are popular in today's modern business society where the organisation
will establish particular 'project teams' to complete a task to date.
• Person culture
 Person cultures are commonly found in charities or non profit organisations.
The focus of the organisation is the individual or a particular aim
• Forward and backward looking cultures
 Organisations that have an entrepreneurial spirit, always embrace change
and listen to staff and customers are said to be forward looking. Forward
looking organisations are risk takers and do well because of it. A backward
looking culture does not embrace change and is led by systems and
procedures.
28
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Organisational culture measurement
Written rules
Unwirtten rules
29
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Understanding unwritten riles
• Motivators
 What in practice is most important to people?
 What do they perceive as rewards, penalties?
• Enablers
 Who really is important?
 Who can grant the motivators or impose the penalty?
• Triggers
 How are people really measured?
 What are the conditions that might be met for an enabler to
grant a motivator or impose a penalty?
30
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© Holcim (Lanka) Ltd 2008
Residents
Drivers
Critics
Detached
SATISFACTION
High
Low
LOYALTY/MOTIVATIONLow High
Dissatisfied but barriers or
lack of options prevent
defection.
‘At risk’
Dissatisfied and work
against company/brand
‘Big threat’
Satisfied but shop around.
Often indicates the degree of
compensation sensitivity in
the market.
‘Need a compelling reason
to stay’
Highly committed
‘Best advocate’
 Helps understand the
attitude and profile of
your employees and
employee segments at
a given point of time &
the “degree of difficulty”
in ensuring commitment
 Helps in formulating
Employee Relationship
Management decisions
and Resource
allocations
Culture Assessment : Example
31
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© Holcim (Lanka) Ltd 2008
Diversity and inclusion
32
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© Holcim (Lanka) Ltd 2008
Cross cultural success
• Carlos Ghosn
• While his task was to help revive an icon of the Japanese car industry, he says, the
experience wasn’t simply about performing a job – it was about discovering a new
culture and it was very rewarding.
• “When you have a very diverse team – people of different backgrounds, different
culture, different gender, different age, you are going to get a more creative team –
probably getting better solutions, and enforcing them in a very innovative way and
with a very limited number of preconceived ideas.”
• On gender equality, the CEO says that when he started at Nissan, only one per cent
of the top management at Nissan were women. While that was twice as good as his
competitors, he was determined to increase the number of women in management
still further. Today the number of women in management is five per cent, and the
objective is to raise that figure to ten per cent.

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Culture management distribution

  • 1. © Holcim (Lanka) Ltd 2008 Culture Management
  • 2. 2 (Optional) File source, Department or Function, Creator © Holcim (Lanka) Ltd 2008 HR’s job is to build Capacity Commitment Culture
  • 3. 3 (Optional) File source, Department or Function, Creator © Holcim (Lanka) Ltd 2008 Topics • Culture and diversity • Why study cultures • Cross cultures : External environment • Organisational Culture : Internal environment
  • 4. 4 (Optional) File source, Department or Function, Creator © Holcim (Lanka) Ltd 2008
  • 5. 5 (Optional) File source, Department or Function, Creator © Holcim (Lanka) Ltd 2008 World is ChangingWorld is Changing • GlobalizationGlobalization • Hi-Tech Vs Hi-TouchHi-Tech Vs Hi-Touch • POIPOI
  • 6. 6 (Optional) File source, Department or Function, Creator © Holcim (Lanka) Ltd 2008 Know how Vs Know-who • Social Capital • Built on trust and mutual value • Reciprocal relationship • Building our own knowledge network • A more enduring asset than specific knowledge or skills
  • 7. 7 (Optional) File source, Department or Function, Creator © Holcim (Lanka) Ltd 20087 Face-to-Face meetings are… Vital. Key. I need to know people understand what’s important. Uncomfortable, confrontational and overly formal. Face-to-Face meetings are… Vital. Key. I need to know people understand what’s important. Uncomfortable, confrontational and overly formal. Text Messages are… Good for short messages. What I do all day long.Text Messages are… Good for short messages. What I do all day long. Baby Boomers 1946-65 Gen – X 1966-80 Gen – Y 1980> Baby Boomers 1946-65 Gen – X 1966-80 Gen – Y 1980> Email is… One more thing to do, another thing to learn. The best way to stay in touch. Not nearly as good as instant messaging and blogging. Email is… One more thing to do, another thing to learn. The best way to stay in touch. Not nearly as good as instant messaging and blogging. Instant Message is… Another distraction popping up on my screen A good, quick way to get things done Like breathing—I can carry on seven conversations at once Instant Message is… Another distraction popping up on my screen A good, quick way to get things done Like breathing—I can carry on seven conversations at once Mobile video messaging is… No idea A novelty. Commonplace.Mobile video messaging is… No idea A novelty. Commonplace. PowerPoint is… Effective and professional. My right arm. Pretty boring in a speech and hard to make interesting. PowerPoint is… Effective and professional. My right arm. Pretty boring in a speech and hard to make interesting. Search engines are… Useful, but not trustworthy How did we survive without Google and Wikipedia? My super tool. My home page and lots more. Search engines are… Useful, but not trustworthy How did we survive without Google and Wikipedia? My super tool. My home page and lots more. Conference calls are…. The next best thing to a meeting. The way we work these days An opportunity to multi-task while “listening” Conference calls are…. The next best thing to a meeting. The way we work these days An opportunity to multi-task while “listening” Source: Accenture For techie kids Generational perspective
  • 8. 8 (Optional) File source, Department or Function, Creator © Holcim (Lanka) Ltd 2008 Generational Attitudes The impact on business will be that those organizations unable or unwilling to adapt to the new order will experience higher levels of disengaged staff, increased talent attrition and reduced productivity
  • 9. 9 (Optional) File source, Department or Function, Creator © Holcim (Lanka) Ltd 2008 Generational Trends – understanding Talent
  • 10. 10 (Optional) File source, Department or Function, Creator © Holcim (Lanka) Ltd 2008 Talent availability 39,000 employers surveyed across 33 countries in Q1 2009 There may be a temporary ceasefire, but the war for talent is far from over
  • 11. 11 (Optional) File source, Department or Function, Creator © Holcim (Lanka) Ltd 2008 Demographic perspective
  • 12. 12 (Optional) File source, Department or Function, Creator © Holcim (Lanka) Ltd 2008 1203/19/14 Europe Young talent in short supply
  • 13. 13 (Optional) File source, Department or Function, Creator © Holcim (Lanka) Ltd 2008
  • 14. 14 (Optional) File source, Department or Function, Creator © Holcim (Lanka) Ltd 2008 Center for Talent Retention
  • 15. 15 (Optional) File source, Department or Function, Creator © Holcim (Lanka) Ltd 2008 Takeaway #1: The real business impact of employee engagement • The Corporate Leadership Council’s research has found that organizations are (rightly) turning their attention to their employees’ level of engagement. • A Council survey of more than 50,000 employees at 59 member organizations in 27 countries and 10 industries demonstrates the real bottom-line impact of employee engagement. Highly committed employees perform up to 20 percentile points better and are 87% less likely to leave the organization than employees with low levels of commitment. • The Council’s analysis has yielded the two “rules” appearing at the bottom of this slide, which further convey the significant impact of employee engagement on the business. The Business Case for Engagement Employee engagement drives employee performance and workforce retention Maximum Impact of Discretionary Effort on Performance Percentile Number of Employees 50th Percentile 70th Percentile Maximum Impact of Engagement on the Probability of Departure Probability of Departure in Next 12 Months Strong Disengagement Strong Engagement 9.2% 1.2% 87% The “10:6:2” Rule • Every 10% improvement in commitment can increase an employee’s effort level by 6%. • Every 6% improvement in commitment can improve an employee’s performance by 2 percentile points. The “10:6:2” Rule • Every 10% improvement in commitment can increase an employee’s effort level by 6%. • Every 6% improvement in commitment can improve an employee’s performance by 2 percentile points. The “10:9” Rule Every 10% improvement in commitment can decrease an employee’s probability of departure by 9%. The “10:9” Rule Every 10% improvement in commitment can decrease an employee’s probability of departure by 9%. Source: Corporate Leadership Council 2004 Employee Engagement Survey.
  • 16. 16 (Optional) File source, Department or Function, Creator © Holcim (Lanka) Ltd 2008
  • 17. 17 (Optional) File source, Department or Function, Creator © Holcim (Lanka) Ltd 2008 Three most common cross cultural gestures : V-Sign  Two : to American  Victory : to Germans  Insulting : to British Victory Not Victory
  • 18. 18 (Optional) File source, Department or Function, Creator © Holcim (Lanka) Ltd 2008 Three most common cross cultural gestures : Ring  OK : to Westerner  Money : to Japanese  Zero : to French  Insulting : Turks and Brazilians
  • 19. 19 (Optional) File source, Department or Function, Creator © Holcim (Lanka) Ltd 2008 Three most common cross cultural gestures : Thumbs up  Good : to Westerner  Hitch hike : British, Aussie, NZ,SA  Greece : Insulting
  • 20. 20 (Optional) File source, Department or Function, Creator © Holcim (Lanka) Ltd 2008 Some Culturally sensitive dimensions Individualist Group - Oriented Americans, British, Dutch, Northern Italians, French Korean, Chinese, Japanese + Introduce with confidence + Be prepared to state your own views + Be prepared to challenge what people say + Introduce in relation to your company + Talk calmly and slowly matching the pace + Be prepared to do real business over meals Flat hierarchy Vertical hierarchy Switzerland, Germany, Netherlands, USA, UK France, Italy, Latin America, SEA, India, China, Africa, Arab world + Have clear line of communication to senior management + Keep valuable information to yourself + Show great respect to decision makers + Be autocratic in your dealings with subordiantes + Take full responsibility for your area of expertise + Tackle colleagues directly if there is a problem Source : Bridging the culture gap : Penny Carte and Chirs Fox
  • 21. 21 (Optional) File source, Department or Function, Creator © Holcim (Lanka) Ltd 2008 Some Culturally sensitive dimensions Acquired status Given status Women + Dress appropriately + Act modestly Spain, Southern Italy, South America, India, China, Japan, Africa, Arab world + Show respect to people older than you + Consider age and length of service + Be paternalistic Functional Personal Arab world, Asia, Southern Europe, Africa, South America + Allow plenty of time + Engage in small talk + Be prepared to socialize and exchange gifts Germany, Switzerland, Scandinavia Source : Bridging the culture gap : Penny Carte and Chirs Fox
  • 22. 22 (Optional) File source, Department or Function, Creator © Holcim (Lanka) Ltd 2008 Some Culturally sensitive dimensions Physically distant Physically close Monochronic Polychronic Hispanic, USA, Latin America, India, Arab world Italy + Fix appointments at short notice + Allow plenty of time between appointments + Be prepared to be kept waiting + Avoid rushing meetings + If there’s bad news try to soften it Anglo-Saxon America, Canada, Australia, Scandinavia, Germany, Switzerland, Netherlands, UK + Fix appointments weeks ahead + Send meeting agenda in advance + Arrive on time and start on time + Keep to agendas, schedules and deadlines + Give bad news straight away Arab, African, Indian, Latin American, Greek, Turkish + Don’t show surprise or embarrasement if they get too close USA, UK, Northern Europe, French + Give firm short handshake and look in the eye SEA, East Asian + Give plenty of personal space Source : Bridging the culture gap : Penny Carte and Chirs Fox
  • 23. 23 (Optional) File source, Department or Function, Creator © Holcim (Lanka) Ltd 2008 Some Culturally sensitive dimensions Speed Patience Germans Japanese, Mexicans, Spanish + Don’t try to force the pace Good advise : Play SOPHOF Soft on People Hard on Facts Source : Bridging the culture gap : Penny Carte and Chirs Fox
  • 24. 24 (Optional) File source, Department or Function, Creator © Holcim (Lanka) Ltd 2008
  • 25. 25 (Optional) File source, Department or Function, Creator © Holcim (Lanka) Ltd 2008 Cultures are nested at multiple levels National Culture Industrial Culture Organisational Culture Subcultures Functional and professional groups Cliques and factions Source : Toyota Culture, Jeffrey k. Liker, Michael Hoseus
  • 26. 26 (Optional) File source, Department or Function, Creator © Holcim (Lanka) Ltd 2008 Joe Cindy Debbie David Weak Org culture Joe Cindy Debbie David Strong Org culture Org culture is the shared beliefs, values and assumptions between the people working toward a common Purpose
  • 27. 27 (Optional) File source, Department or Function, Creator © Holcim (Lanka) Ltd 2008 Culture Types • Power Culture  Within a power culture, control is the key element. Power cultures are usually found within a small or medium size organisation. Decisions in an organisation that display a power culture are centralised around one key individual. • Role Culture  Common in most organisations today is a role culture. In a role culture, organisations are split into various functions and each individual within the function is assigned a particular role. • Task Culture  A task culture refers to a team based approach to complete a particular task. They are popular in today's modern business society where the organisation will establish particular 'project teams' to complete a task to date. • Person culture  Person cultures are commonly found in charities or non profit organisations. The focus of the organisation is the individual or a particular aim • Forward and backward looking cultures  Organisations that have an entrepreneurial spirit, always embrace change and listen to staff and customers are said to be forward looking. Forward looking organisations are risk takers and do well because of it. A backward looking culture does not embrace change and is led by systems and procedures.
  • 28. 28 (Optional) File source, Department or Function, Creator © Holcim (Lanka) Ltd 2008 Organisational culture measurement Written rules Unwirtten rules
  • 29. 29 (Optional) File source, Department or Function, Creator © Holcim (Lanka) Ltd 2008 Understanding unwritten riles • Motivators  What in practice is most important to people?  What do they perceive as rewards, penalties? • Enablers  Who really is important?  Who can grant the motivators or impose the penalty? • Triggers  How are people really measured?  What are the conditions that might be met for an enabler to grant a motivator or impose a penalty?
  • 30. 30 (Optional) File source, Department or Function, Creator © Holcim (Lanka) Ltd 2008 Residents Drivers Critics Detached SATISFACTION High Low LOYALTY/MOTIVATIONLow High Dissatisfied but barriers or lack of options prevent defection. ‘At risk’ Dissatisfied and work against company/brand ‘Big threat’ Satisfied but shop around. Often indicates the degree of compensation sensitivity in the market. ‘Need a compelling reason to stay’ Highly committed ‘Best advocate’  Helps understand the attitude and profile of your employees and employee segments at a given point of time & the “degree of difficulty” in ensuring commitment  Helps in formulating Employee Relationship Management decisions and Resource allocations Culture Assessment : Example
  • 31. 31 (Optional) File source, Department or Function, Creator © Holcim (Lanka) Ltd 2008 Diversity and inclusion
  • 32. 32 (Optional) File source, Department or Function, Creator © Holcim (Lanka) Ltd 2008 Cross cultural success • Carlos Ghosn • While his task was to help revive an icon of the Japanese car industry, he says, the experience wasn’t simply about performing a job – it was about discovering a new culture and it was very rewarding. • “When you have a very diverse team – people of different backgrounds, different culture, different gender, different age, you are going to get a more creative team – probably getting better solutions, and enforcing them in a very innovative way and with a very limited number of preconceived ideas.” • On gender equality, the CEO says that when he started at Nissan, only one per cent of the top management at Nissan were women. While that was twice as good as his competitors, he was determined to increase the number of women in management still further. Today the number of women in management is five per cent, and the objective is to raise that figure to ten per cent.

Hinweis der Redaktion

  1. The second key idea is social capital or Know-who. We tend to value Know-how more than Know-who but the latter is equally valuable. First, Know-who is not just knowing someone, but it is a reciprocal relationship build on trust and value. If I have a question about a problem at work, I will go to someone who I know can contribute value, add new insights and help resolve the issue. That person is a Know-who. Likewise, hopefully you can add value in the same way for others. So this is not just knowing someone, it is based on value exchanged. These individuals become part of social capital., and what is interesting is that social capital becomes a more enduring asset than Know-how.
  2. This data is from Watson Wyatt and it shows that there is still a lot of improvement in terms of engagement that can be realized. Other research (from CCL) actually shows a much larger neutral area of up to 50 to 60%. There is room for improvement at the company level. It is important, however, to move beyond group data and look at top talent engagement, and then each person’s engagement factors.
  3. Speaker’s Notes: Across recent months, Council members have cited increased focus on the issue of employee engagement. Many organizations worry about the state of workforce commitment given the environment of the past few years of staff cutbacks, the requirement to do “more with less,” outsourcing, and offshoring. Regardless of whether we will see a war for talent to mirror that of the late 1990s, organizations are concerned that an economic recovery will lead both to increased turnover and demands for heightened productivity. And, as illustrated on this slide, the Council’s research has demonstrated the central role of workforce engagement and commitment in promoting employee productivity and retention. That is, the Council has found that there are real business outcomes produced by increasing employee engagement. These business outcomes are illustrated on this slide. Based on a survey of 50,000 employees at 59 organizations in 27 countries and 10 industry groups, the Council’s research team found that highly committed employees perform up to 20 percentile points better and are 87% less likely to leave their organizations than employees with low levels of commitment. To help organizations further conceptualize the potential gains to be made by promoting employee engagement, the Council’s analysts derived the following two “rules” described on this page: The 10:6:2 rule of the impact of engagement on employee performance, which is that every 10% improvement in engagement leads to a 6% improvement in employees’ effort levels, which, in turn, leads to a 2 percentile point improvement in performance. The 10:9 rule of the impact of engagement on intent to stay, which means that every 10% improvement in engagement leads to a 9% improvement in employee intent to stay at the organization over the next 12 months. So, what did the Council find was the engagement level of the surveyed workforce?