This document summarizes the organizational culture of IBM over different time periods from its founding in 1924 to 1993. It describes how the culture was shaped by different CEOs like Thomas Watson Sr. who established values like respect for the individual and excellence. In the 1950s, Tom Watson Jr. codified three basic beliefs. Later CEOs like John Akers decentralized management in the 1980s as growth declined but could not prevent profit losses. Lou Gerstner recognized in 1993 that IBM lacked focus on culture, teamwork and customers when he became CEO.

1. Managing Organizational Culture Presented by AnirvanSen (10P067) ArunabhaMukherjee(10P069)Asees Singh (10P070) Harsh Gandhi (10P076)GauravAnand(10P077)Vivek Mowgli (10P120)

2. Understanding Culture: Culture: Set of people with common history and stability Ambiguous concept Misunderstood as a cultural phenomenon Systems theory Cognitive theory Lawininan Field theory Culture A pattern of basic assumption Invented and developed by a given group As it learns to cope with its problems of external adaptation and internal integration That has worked well to be considered valid and correct way to perceive, think and feel

3. Organizational Culture Organization Strong because of long shared history and shared intense experiences No overarching culture due to lack of common history or frequent turnovers

5. Dress code

8. Difficult to

10. Thought Process

11. Feelings

12. Behavior

14. Ideologies

15. Charters

16. Philosophies

18. Dimensions of organizational culture

19. Dimensions of organizational culture Contd.

20. Company paradigm The Action Company paradigm Truth discovered by debate & testing Individual vs Source of good ideas We are one family taking care of each other Every person thinking for him/her self and “Do the right thing”

21. The Multi Company Paradigm Scientific research - Source of truth and ideas Make a better world through science and other products The strength of the organization is it’s expertness of each role occupant Truth and wisdom is directly proportional to education and experience We are one family taking care of each other Individual and Organizational autonomy are the key to success There is enough time, quality, accuracy and truth are more important than speed

22. Cultural dynamics: socialization

23. Cultural dynamics: guided evolution

24. Dimensions and types of organizational culture High Sociability Low Low High Solidarity

27. After hours socializing is not an exception but a rule

28. Celebration of birthdays, festivals, anniversaries

29. Nicknames, in-house jokes, common language drawn from shared experiences

30. Profusion of ways to get around it

33. Individuals and cliques spend much of there time pursuing personal agendas

34. Difficult for colleagues to agree on priorities and for managers to enforce them

36. Recruited people with similar background, values and interests

37. Employees embrace the company’s values of cooperation and consensus

38. All leaders annually meet to communicate and review strategy through intense fraternizing

39. Frequent movement of managers across geographies

40. Accelerate product development and quick exploitation of market opportunities

41. Widespread fellowship and goodwill

42. Lack of cross company coordination

43. Lack of agreement on objectives

45. Intolerant of poor performances

46. Poor performers are fired or instructed to improve explicitly

47. Rare bastions of loyalty

48. Fair organizations that reward employees on the basis of performance

51. Economies of scales are achieved

52. Competitive advantage is gained

53. When goals are clear and measurable

55. Employees identify themselves with occupational groups

56. Employees do not engage in extracurricular rites that characterize high sociability

57. Lack of effective relatedness

58. Attempt to sabotage work of other fellow employees

60. High level of dissent towards strategic goals

61. Leaders often feel isolated

63. Professional organizations such as consulting and law firms

64. Organizations where work is virtual

65. Little interdependence in the work itself

66. When significant innovation is produced by individuals

67. When standards are achieved by input controls not process controls

69. Offers employees a master class on creativity

71. Extremely high value is placed on fairness and justice

72. The mission statement is given front and central display, evokes enthusiasm

74. Difficult to attain and sustain

76. When there are real synergies among subunits and opportunities of learning

79. Had a ‘superstitious’ learning style – drew lessons from his life and implemented them in the company

80. Was impressed by his own business philosophies

81. Led to an unwritten dress code

82. Alcohol became prohibited in the company

83. Intolerant of any complaint made by customers – Threatened Bethlehem Steel when it gave recommendations

85. Codified the philosophy of 3 basic beliefs which the company could not change under any circumstances

86. Respect for individual

87. Customer Service

89. Started to overhaul IBM’s operations and management as soon as the sales /profits started declining

90. Slashed manufacturing capacity and work force

91. Decentralized management

92. Launched a culture change program,’ Market Driven Quality’ focussing on ‘Empowerment’ and New pay-for-performance incentive system These steps could not prevent the company’s declining profits

94. Understood that IBM’s challenges lay in the absence of focus on culture, teamwork, customers and leadership in the company

95. ‘Cult like’ culture

98. Thank You