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Chapter 16 - Activities/ Exercises

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CHAPTER 16 – ACTIVITIES/ EXERCISES

Select a Philippine company, read its Mission and Vision Statement. Interview some
managers and employees from that organization:
Vision Statement
We shall be at the forefront of the leasing and financing industry in the Philippines
and in the Asia Pacific Region. We shall have the most extensive market reach and shall
be composed of highly trained, technically competent and upright professionals working
as a team and contributing to the growth of the nation and the communities we serve.
Recognizing that the customer is the focus of our activities, we shall lead the industry by
providing modern and relevant financial services which exceed their expectations.
Mission Statement
We are in business for our customers, shareholders and employees. We shall
deliver creatively innovative products and cross-sell the BDO Unibank Group’s services
supported by procedures, systems and processes which will ensure utmost customer
satisfaction. We shall recognize and reward excellence in our employees and shall
provide an environment conducive to maximizing their potentials as we work cohesively
as a team. We shall generate consistently high returns for our shareholders.
 
1. Find out what their corporate culture is;
BDO’s corporate culture believes that effective governance is a collective effort of
its directors, officers and staff. As such, the bank upholds the highest standards of ethical
behavior and responsible conduct of business as it protects the interests of and creates
value for its shareholders.
Another positive culture of BDO is that it actively promotes volunteerism among
its employees who help out in the foundation’s various activities that include, among
others, community building, livelihood/skills training, fund raising, and
environmental/green initiatives. And BDO’s corporate governance is anchored on five (5)
basic principles: accountability, fairness, integrity, transparency and performance. 
It is said that they also provide rigid trainings and seminars for employees. And
because it’s a bank company, employees are required to always look good and sharp. But
the downside culture is that the company is pro client rather than pro employee. They
have this “customer is always right” culture that everyone must follow as part of the job
description.
2. Classify the organization’s culture using the typology model (below). Explain
your classification decision; and
I think BDO Company is under quadrant III, a mechanistic hierarchy culture.
Because it’s classified as banking and finance. And also, because this culture is founded
on structure and control. The work environment is formal, with strict institutional
procedures in place for guidance. Leadership is based on organized coordination and
monitoring, with a culture emphasizing efficiency and predictability. The values include
consistency and uniformity. Which is a perfect definition for a banking company such as
BDO itself.

TYPES/QUADRANT PHILIPPINE INDUSTRIES


I – Organic – Internal Maintenance Architecture, Healthcare,
(CLAN) Pharmaceuticals, Retail, Social Welfare

II – Organic – External Positioning Computer Hardware/Software,


(ADHOCRACY) Consulting, Education, Engineering,
Print/Publishing

III – Mechanistic – Internal Maintenance Banking and Finance, Government,


(HIERARCHY) Social Welfare, Transport

Architecture, Chemicals/Oils,
IV – Mechanistic – External Positioning Distribution, Food and Beverage,
(MARKET) Manufacturing, Property Development,
Services, Utilities

3. What Filipino values are at work in the company?


Filipinos are renowned in all of the world for their unwavering hospitality, warmth, and
friendliness. This value is one of BDO’s corporate values.
Taking overtime work. Filipinos are very hardworking, and of course, working in a
banking company is very stressful, therefore it’s become a culture to extend working
hours to finish a day’s worth of work.
Another Filipino value is putting outside lives from work. The “customer is always right”
culture proves this. Because no matter how pressing and personal the clients can be,
employees should handle the matter professionally.

ASSESSMENT
Answer the following:
1. Describe the seven key characteristics that capture the essence of the organization's
culture.
- Innovation and risk taking, the degree to which employees are encouraged to be
innovative and to take risks.
- Attention to detail, the degree to which employees are expected to exhibit precision,
analysis and attention to detail.
- Outcome orientation, the degree to which managers focus on results or outcomes rather
than on techniques and processes used to achieve these outcomes.
- People orientation, the degree to which management decisions take into consideration
the effect of decisions on people within the organization.
- Team orientation, the degree to which work activities are organized around teams rather
than individuals.
- Aggressiveness, the degree to which people are aggressive and competitive rather than
easy-going and cooperative.
- Stability, the degree to which organizational activities emphasize maintaining the status
quo in contrast to growth or change.

2. Contrast organizational culture and job satisfaction.


Organizational culture refers to a series of attitudes and behaviors adopted by
employees of a certain organization, which affect its function and total well-being. Job
satisfaction refers to the employees’ perceptions of their working environment, relations
among colleagues, earnings and promotion opportunities.

3. Identify the functional and dysfunctional effects of organizational culture on


employees.
Functions:
- Culture helps to create a sense of identity for the organization members.
- Culture encourages the members of the organization to give priority to organizational
interests over and above their personal interests.
- Culture enhances the social system stability. It provides a list of social do’s and don’ts
for the employees.
- It’s a control mechanism that guides and shapes the attitudes and behaviors of
employees.
Dysfunctions:
- Barrier to Change. Organizational culture can be one of the reasons for resistance to
change.
- Strong cultures do not acknowledge the fact that people from different backgrounds
bring unique strengths to the organization. It is biased and sometimes can be racist.

4. List the factors that maintain an organization's culture.


- Employees of same values are retained
- Cumulative set of behaviors
- Strong influence
- Norms and socializations are passed

5. Identify and describe the phases of organizational socialization.


First phase is the pre-arrival, where new employees get to interact with employees
and get to know the organization through word of mouth. Next phase is the encounter,
here the new employee now gets to understand what the organization is like through
personal experience of being with them for enough period of time. Lastly is the
metamorphosis stage wherein they adjust to the people, norms and culture of the
organization. This phase is what determines their long-term outcomes towards working
within them.

6. How can culture be transmitted to employees? Provide examples for each.


- Stories
Ex: narratives about events relating to founders, conquers, successes and failures of the
organization
- Rituals
Ex: Getting tenures, annual award meetings
- Material Symbols
Ex: company logos and branding, messaging on office walls, office meeting room
labels, job titles
- Language
Ex: using slang languages, formalities

7. Explain how an ethical culture can be established.


An ethical culture can be established through good example and socialization. It
should be also clear what the objective is. The organization must communicate to create
and disseminate of what the expectations they have towards everyone. To effectively
reinforce this ethical culture, I think an open opinion from employees should also matter.
In order to know if they all have agree in a single goal. Also, awards and punishments are
given to set an atmosphere of seriousness and drive to action.

8. What is a positive organizational culture and what key variables are used in creating it?
Positive organizational cultures are those that is practiced within the organization
that probably benefit both the company and the employees. But mostly it is for individual
growth and improvement of employees. It could be good manners and behavior, support
funds, or company programs and meetings with an objective. It rewards more than punish
too. Key variables in creating it could be of course by example, or extensive effort in
team building and incorporating values to every employee. With consideration to what’s
effective and works great for the organization that is.

9. What is the relationship between national culture and a global organization’s


organizational culture?
National cultures are what most likely influences the organizational culture.
Because that’s part of being distinct of individuals. The cultures already adopted in one’s
own country is incorporated to the organizational culture for an effective use. Laws,
norms, and other factors are also considered because it is still what’s accepted and seen as
appropriate by the majority of people in a country. That’s why the two are always side by
side and should agree with one another. This also means, that organizational cultures will
or might differ per nation.

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