L12_Deal and Kennedy
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Deal and Kennedy
Cultural Traits in American Organizations
Deal and Kennedy
• Deal and Kennedy (1982) proposed a cultural model which emphasizes on inner values, rites, rituals, and communication styles • They identified four different types of organizations, based on
Case
• Jane works in a luxury hotel on a small African island, a beautiful paradise attracting thousands of visitors every year. Throughout the year, the hotel often receives customers from all over the world, from Hollywood stars to backpackers. During busy seasons, Jane rarely has time for entertainment since her schedule is filled up with work shifts. As a duty manager, she deals with customer conflicts, staff training and customer relations. Her performance can be reviewed very fast by customers feedback on their stay and the number of repeated customers. She enjoys the working atmosphere in the hotel, just as what she says, ‘You do your best, and take any opportunity to correct your behavior. It is not a rocket science, anyway.’
CaseLeabharlann Baidu
• Jimmy is a high flying graduate from Command and Staff College. He is so eager to becoming an excellent officer and joined the anti-drug police. It is a real tough trial for Jimmy since his tasks are often emergent and risky. One of his colleagues was forbidden to take gun with him as a result of discharging accidentally. Jimmy, 31 already, an excellent officer among the police, still single. However, he just loves taking the risks and get excited by the emergent actions which can bring him meanings. He is also very careful when selecting new entrants for his team. People who enjoy regular meals and emotionally unstable in nature are often rejected. His approach in leading his team is aggressive and tough, which enables his team to act fast and accurately.
Process Culture
• Slow feedback/reward and low risk • Happens in bureaucracies where procedures and regulations are more emphasized but not results • This culture produces consistent results • Low stress but internal politics can be pressurized
Deal and Kennedy
Work hard/Play hard Culture
• Fast feedback and reward, low risk • Typical in large organizations that strive for high-quality customer service • Stress comes from quantity of work rather than uncertainty • Focus on high-speed action, high levels of energy. • Restaurants and software companies
Bet-the-company Culture
• Slow feedback/reward and high risk • Happens where big stakes and decisions are taken and it may be a long time before the results are known • Focus on long-term, preparation and planning. • Stress may come from high risk and delay before knowing if actions have paid off • Oil prospecting or aviation manufacturing departments, prospecting companies
Case
• Leo works for an aviation manufacturing company. He works in a team with other top-level engineers in designing a particular part for the airbus. They often take hundreds of reliability tests to ensure the safety of the component. However, results are not always encouraging when parts from different departments are combined together. It usually takes them 5-8 years to produce an entirely safe and efficient component, of which, the safety index cannot be 100% guaranteed. Leo thus often feels very stressful, especially in the middle of an ongoing project. The company also offers engineers good accommodation and living expenses to compensate for the lack of reward over the long-lasting period. Strategic and detailed plans are made and implemented by the top management. Careful inspection for compatibility tests is a routine in the company to minimize risks.
Process Culture
• Typical examples: bureaucracies, banks, insurance companies, public services. Focus on security and maintaining status quo
Case
• Bob is a departmental manager at a bank. He is a smart business man with a well-ordered way of living. He is quite a cautious person looking into details for every steps he takes. He has gained a good honor among his colleagues after 10 years of working in the bank. The CEO sets him as an example who can always produce a budget based on systematic review of a company. With his status goes up, his power increases. However, just as he stated, that whichever level you are, there is always endless procedures and policies for you to study. Everyone has a boss, which is the company policy. The complicated interpersonal relationships within the company also made him a very quiet person. Somehow, Bob enjoys the stability over there since he is methodic by nature. Besides, he has a 10-year house loan to pay.
Degree of Risk
• The level of risk taking (degree of uncertainty). • High-risk companies are more likely to include people who enjoy taking a gamble and able to manage the risk • In low-risk companies, people tend to take risks when they are at an accepted level but not above • These two factors gave rise to four generic types of cultures
– how quickly organizations receive feedback on the success of management decisions or strategies? – the level of risks that they take
Feedback Speed
• How quickly are feedback and rewards provided (through which the people are told they are doing a good or a bad job). • If feedback is relatively quick, it will ensure that any ineffective behavior is promptly corrected • If the feedback takes longer to arrive, then mistakes can remain uncorrected
Tough guy/macho culture
• • • • Fast feedback and reward, high risk Focus on the present rather than the future Individualism prevails over teamwork. Stress comes from high risk and potential loss/gain of reward • Often applies to fast-moving financial activities such as brokerage, police office or athletic competition
Cultural Traits in American Organizations
Deal and Kennedy
• Deal and Kennedy (1982) proposed a cultural model which emphasizes on inner values, rites, rituals, and communication styles • They identified four different types of organizations, based on
Case
• Jane works in a luxury hotel on a small African island, a beautiful paradise attracting thousands of visitors every year. Throughout the year, the hotel often receives customers from all over the world, from Hollywood stars to backpackers. During busy seasons, Jane rarely has time for entertainment since her schedule is filled up with work shifts. As a duty manager, she deals with customer conflicts, staff training and customer relations. Her performance can be reviewed very fast by customers feedback on their stay and the number of repeated customers. She enjoys the working atmosphere in the hotel, just as what she says, ‘You do your best, and take any opportunity to correct your behavior. It is not a rocket science, anyway.’
CaseLeabharlann Baidu
• Jimmy is a high flying graduate from Command and Staff College. He is so eager to becoming an excellent officer and joined the anti-drug police. It is a real tough trial for Jimmy since his tasks are often emergent and risky. One of his colleagues was forbidden to take gun with him as a result of discharging accidentally. Jimmy, 31 already, an excellent officer among the police, still single. However, he just loves taking the risks and get excited by the emergent actions which can bring him meanings. He is also very careful when selecting new entrants for his team. People who enjoy regular meals and emotionally unstable in nature are often rejected. His approach in leading his team is aggressive and tough, which enables his team to act fast and accurately.
Process Culture
• Slow feedback/reward and low risk • Happens in bureaucracies where procedures and regulations are more emphasized but not results • This culture produces consistent results • Low stress but internal politics can be pressurized
Deal and Kennedy
Work hard/Play hard Culture
• Fast feedback and reward, low risk • Typical in large organizations that strive for high-quality customer service • Stress comes from quantity of work rather than uncertainty • Focus on high-speed action, high levels of energy. • Restaurants and software companies
Bet-the-company Culture
• Slow feedback/reward and high risk • Happens where big stakes and decisions are taken and it may be a long time before the results are known • Focus on long-term, preparation and planning. • Stress may come from high risk and delay before knowing if actions have paid off • Oil prospecting or aviation manufacturing departments, prospecting companies
Case
• Leo works for an aviation manufacturing company. He works in a team with other top-level engineers in designing a particular part for the airbus. They often take hundreds of reliability tests to ensure the safety of the component. However, results are not always encouraging when parts from different departments are combined together. It usually takes them 5-8 years to produce an entirely safe and efficient component, of which, the safety index cannot be 100% guaranteed. Leo thus often feels very stressful, especially in the middle of an ongoing project. The company also offers engineers good accommodation and living expenses to compensate for the lack of reward over the long-lasting period. Strategic and detailed plans are made and implemented by the top management. Careful inspection for compatibility tests is a routine in the company to minimize risks.
Process Culture
• Typical examples: bureaucracies, banks, insurance companies, public services. Focus on security and maintaining status quo
Case
• Bob is a departmental manager at a bank. He is a smart business man with a well-ordered way of living. He is quite a cautious person looking into details for every steps he takes. He has gained a good honor among his colleagues after 10 years of working in the bank. The CEO sets him as an example who can always produce a budget based on systematic review of a company. With his status goes up, his power increases. However, just as he stated, that whichever level you are, there is always endless procedures and policies for you to study. Everyone has a boss, which is the company policy. The complicated interpersonal relationships within the company also made him a very quiet person. Somehow, Bob enjoys the stability over there since he is methodic by nature. Besides, he has a 10-year house loan to pay.
Degree of Risk
• The level of risk taking (degree of uncertainty). • High-risk companies are more likely to include people who enjoy taking a gamble and able to manage the risk • In low-risk companies, people tend to take risks when they are at an accepted level but not above • These two factors gave rise to four generic types of cultures
– how quickly organizations receive feedback on the success of management decisions or strategies? – the level of risks that they take
Feedback Speed
• How quickly are feedback and rewards provided (through which the people are told they are doing a good or a bad job). • If feedback is relatively quick, it will ensure that any ineffective behavior is promptly corrected • If the feedback takes longer to arrive, then mistakes can remain uncorrected
Tough guy/macho culture
• • • • Fast feedback and reward, high risk Focus on the present rather than the future Individualism prevails over teamwork. Stress comes from high risk and potential loss/gain of reward • Often applies to fast-moving financial activities such as brokerage, police office or athletic competition