People respond to those things for which they get rewarded. Few rewards are usually given for quality. In a typical company, CEOs get rewarded for profit improvement – seldom for superior products and services. But quality pays in the long run as Japanese car, camera and electronics manufacturers have shown. In Japan, responsibility for quality and productivity is placed at the top. This, in turn, creates a culture that says: Our organization is fanatical about both productivity and quality.
Managers in effective organizations are characterized by action. This can only be done by top management’s commitment to breaking down rigid organization structures. It may begin with some symbolic actions such as eliminating reserved parking spaces for top-echelon managers. After all, is it not equally important that the first-line supervisor be on time to start the assembly line rather than circling the parking lot to find a space to park? Companies with a strong people-oriented culture believe that the dignity of all people is paramount. Whether a manager or a worker, all contribute toward a common goal; all have basic needs for being appreciated as persons; all have the desire to feel competent in carrying out their task, whatever it is.
While a clear mission statement and goals have the potential to motivate organizational members to excellence, the means to achieve these ends must never be compromised. Actions and behavior must be guided by adherence to company policy, must never violate any laws, and above all, must not be unethical. In ethical companies, integrity is the norm, not the exception. Ethics may be institutionalized through 1) company policy or a code of ethics, 2) a formally appointed ethics committee, and 3) the teaching of ethics in management development programs.
Thus, the intangible factor of the corporate culture can make a substantial contribution to strengthening the competitive position of a company, and improving the tangible indicator of profit that it is able to generate.
Source: Industrial Management, September-October 1989, pp. 28—32.
Essential Vocabulary
1. сorporate culture – корпоративная культура
2. focus n – фокус, сосредоточие, акцент
focus v – фокусироваться, сосредотачиваться, концентрироваться
3. stakeholder n – заинтересованное лицо
4. customer n – клиент
5. supplier n – поставщик
supply n, часто в plural – предложение; запас, припас; снабжение, поставка
supply v – поставлять, снабжать, доставлять, давать
6. competitor n – конкурент
competition n – конкуренция
competitiveness n – конкурентоспособность
compete v – конкурировать
competitive a – конкурентоспособный
7. fair play – честная игра, игра по правилам
8. effectiveness n – эффективность (общая)
effective a – эффективный
9. efficiency n – эффективность (удельная)
efficient a – эффективный
10. communication n – коммуникации, передача, сообщение, связь
communicate v – сообщать, передавать; общаться; доносить
11. value n – ценность, оценка (компании)
value n – ценить, оценивать
12. slogan n – лозунг, призыв, девиз
13. price/quality ratio – соотношение цена/качество
14. innovation n – инновация, нововведение, новаторство
innovator n – новатор, рационализатор
innovate v – вводить новшества, делать нововведения
innovative a – новаторский
15. contribution (to) n – вклад
contribute (to) v – вносить вклад
16. executive n – руководитель
executive n – исполнительный
17. founder n – основатель
found v – основывать
18. research and development (R&D) – исследования и разработки
19. goodwill n – добрая воля, деловая репутация; «гудвилл» (статья баланса)
20. complaint n – жалоба, иск; недовольство
complain v – жаловаться; подавать жалобу, иск
21. survey n – обозрение, осмотр, обзор, инспектирование
survey v – проводить осмотр, обзор, обозрение; инспектировать
22. bottom line – итоговая строка баланса или счета, финальная прибыль или убыток, окончательный результат, конечная цель
23. generate profit – генерировать прибыль
24. warranty n – гарантия (качества); поручительство, ручательство; условие
25. sales n. pl . – зд. стоимость продаж товаров компании за определенный период
26. cost n – затраты, издержки, расходы; цена, стоимость, себестоимость
27. Chief Executive Officer (CEO) – главный исполнительный директор
28. commitment n – обязательство; приверженность, преданность; совершение
commit (to) v – брать обязательства, совершать, поручать, вверять; подвергать
committed (to) a – преданный, приверженный
29. supervisor n – инспектор
supervision n – надзор, наблюдение, инспекция
supervise v – надзирать, наблюдать, инспектировать
30. assembly line – сборочная линия, конвейер
31. mission statement – декларация миссии компании
32. integrity n – целостность, полнота; порядочность
33. code n – код, кодекс, сборник правил
34. (in)tangible a – (не)материальный, (не)осязаемый
Exercise 1. Answer the following questions.
1. Does corporate culture influence the way organizations are managed? 2. Do efficiency and effectiveness of a company depend on corporate culture? 3. Does corporate culture affect the relations of a company with its stakeholders? 4. How would you define corporate culture? 5. Do slogans really give us a general idea of what the company stands for? 6. Who should create the internal environment in an organization? 7. What are the basic values of successful companies? 8. Is bottom line the only thing that really matters? 9. Are employees always rewarded for quality? 10. Why is it important for companies not to violate any laws and be ethical?
Exercise 2. The dictionary «Economics» gives the following definitions of the terms «effectiveness» and «efficiency»: «Effectiveness is the achievement of objectives. Efficiency is the achievement of the ends with the least amount of resources.» Make 4—6 sentences of your own using these words in order to emphasize the difference between them.
Examples: Sibneft was one of the most efficient oil companies in Russia demonstrating a rapid low-cost oil production growth.
Aeroflot has introduced an effective frequent flyer program.
Exercise 3*. According to the generally accepted definition, «Stakeholders are the people or institutions that are affected, or might be affected, by an organization’s activities. Likewise, stakeholders can, in return, affect the activities of that organization.»
The text identifies such stakeholders as customers, suppliers, creditors and competitors. What other stakeholders can you name?
Exercise 4. «Commitment» means «обязательство» and «приверженность, преданность чему-либо». Make 4—6 sentences of your own using the word «commitment» to emphasize its different meanings.
