Organizational culture

Organizational culture is the behavior of humans who are part of an organization

and the meanings that the people attach to their actions. Culture includes the
organization values, visions, norms, working language, systems, symbols, beliefs
and habits. It is also the pattern of such collective behaviors and assumptions
that are taught to new organizational members as a way of perceiving, and even
thinking and feeling. Organizational culture affects the way people and groups
interact with each other, with clients, and with stakeholders. Ravasi and Schultz
state that organizational culture is a set of shared mental assumptions that guide
interpretation and action in organizations by defining appropriate behavior for
various situations. t the same time although a company may have their !own
uni"ue culture!, in larger organizations, there is a diverse and sometimes
conflicting cultures that co#e$ist due to different characteristics of the
management team. %he organizational culture may also have negative and
positive aspects.
Schein , &eal ' (ennedy (otter and many others state that organizations often
have very differing cultures as well as subcultures. ccording to )eedle
organizational culture represents the collective values, beliefs and principles of
organizational members and is a product of such factors as history, product,
market, technology, and strategy, type of employees, management style, and
national cultures and so on. Corporate culture on the other hand refers to those
cultures deliberately created by management to achieve specific strategic ends.
Organizational culture refers to culture in any type of organization be it school,
university, not#for#profit groups, government agencies or business entities. In
business, terms such as corporate culture and company culture are
sometimes used to refer to a similar concept,. lthough the new idea that the
term became known in businesses in the late *+s and early ,+s is widespread,
in fact corporate culture was already used by managers and addressed in
sociology, cultural studies and organizational theory at the beginning of the *+s.
%he idea about the culture and overall environment and characteristics of
organization, in fact, was first and similarly approached with the notion of
organizational climate in the -+s and .+s, and the terms now are somewhat
overlapping.
Part of or equivalent to
As a part of organization
/hen one views organizational culture as a variable, one takes on the
perspective that culture is something possessed by an organization. Culture is
0ust one entity that adds to the organization as a whole. Culture can be
manipulated and altered depending on leadership and members. %his
perspective believes in a strong culture where everyone buys into it
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The same as the organization
Culture as root metaphor sees the organization as its culture, created through
communication and symbols, or competing metaphors. Culture is basic with
personal e$perience producing a variety of perspectives. %he organizational
communication perspective on culture views culture in three different ways1
%raditionalism1 views culture through ob0ective things such as stories,
rituals, and symbols
Interpretivism1 views culture through a network of shared meanings
2organization members sharing sub0ective meanings3
Critical#interpretivism1 views culture through a network of shared
meanings as well as the power struggles created by a similar network of
competing
Types
Several methods have been used to classify organizational culture. /hile there is
no single !type! of organizational culture and organizational cultures vary widely
from one organization to the ne$t, commonalities do e$ist and some researchers
have developed models to describe different indicators of organizational cultures.
Some are described below1
Hofstede
4ofstede 25,*+3 looked for differences between over 5-+ +++ I67 employees in
8+ different countries and three regions of the world, in an attempt to find aspects
of culture that might influence business behavior. 4e suggested things about
cultural differences e$isting in regions and nations, and the importance of
international awareness and multiculturalism for the own cultural introspection.
Cultural differences reflect differences in thinking and social action, and even in
!mental programs!, a term 4ofstede uses for predictable behaviour. 4ofstede
relates culture to ethnic and regional groups, but also organizations, profession,
family, to society and subcultural groups, national political systems and
legislation, etc. 4ofstede suggests the need for changing !mental programs! with
changing behaviour first, which will lead to value change. %hough certain groups
like 9ews, :ypsies and 6as"ues have maintained their identity through centuries
without changing. 4ofstede demonstrated that there are national and regional
cultural groupings that affect the behavior of organizations and identified four
dimensions of culture 2later five

in his study of national cultures1
;ower distance 27auk 7ulder, 5,..3 # &ifferent societies find different solutions
on social ine"uality. lthough invisible, inside organizations power ine"uality of
the !boss#subordinates relationships! is functional and according to 4ofstede
reflects the way ine"uality is addressed in the society. !ccording to 7ulder<s
;ower &istance Reduction theory subordinates will try to reduce the power
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distance between themselves and their bosses and bosses will try to maintain or
enlarge it!, but there is also a degree to which a society e$pects there to be
differences in the levels of power. high score suggests that there is an
e$pectation that some individuals wield larger amounts of power than others.
low score reflects the view that all people should have e"ual rights. =ncertainty
avoidance is the coping with uncertainty about the future. Society copes with it
with technology, law and religion 2however different societies have different ways
of addressing it3, and according to 4ofstede organizations deal with it with
technology, law and rituals or in two ways # rational and non#rational, where
rituals being the non#rational. 4ofstede listed as rituals the memos and reports,
some parts of the accounting system, large part of the planning and control
systems, and the nomination of e$perts. Individualism vs. collectivism #
disharmony of interests on personal and collective goals 2;arsons and Shils,
5,853. 4ofstede brings that society<s e$pectations of Individualism>Collectivism
will be reflected by the employee inside the organization. Collectivist societies will
have more emotional dependence of members on their organizations, when in
e"uilibrium # organization is e$pected to show responsibility on members.
?$treme individualism is seen in the =S, in fact in =S collectivism is seen as
!bad!. Other cultures and societies than the =S will therefore seek to resolve
social and organizational problems in ways different from the merican one.
4ofstede says that a capitalist market economy fosters individualism and
competition and depends on it but individualism is also related to the
development of middle class. Research indicates that some people and cultures
might have both high individualism and high collectivism, for e$ample, and
someone who highly values duty to his or her group does not necessarily give a
low priority to personal freedom and self#sufficiency. 7asculinity vs. femininity #
reflect whether certain society is predominantly male or female in terms of
cultural values, gender roles and power relations. @ong# Aersus Short#%erm
Orientation

which he describes as !%he long#term orientation dimension can be
interpreted as dealing with societyBs search for virtue. Societies with a short#term
orientation generally have a strong concern with establishing the absolute %ruth.
%hey are normative in their thinking. %hey e$hibit great respect for traditions, a
relatively small propensity to save for the future, and a focus on achieving "uick
results. In societies with a long#term orientation, people believe that truth
depends very much on situation, conte$t and time. %hey show an ability to adapt
traditions to changed conditions, a strong propensity to save and invest,
thriftiness, and perseverance in achieving results.!
O'Reilly, Chatman, and Caldell!
%wo common models and their associated measurement tools have been
developed by OBReilly et al. and &enison. OBReilly, Chatman ' Caldwell 25,,53
developed a model based on the belief that cultures can be distinguished by
values that are reinforced within organizations %heir Organizational Cultural
;rofile 2OC;3 is a self reporting tool which makes distinctions according seven
categories # Innovation, Stability, Respect for ;eople, Outcome Orientation,
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ttention to &etail, %eam Orientation, and ggressiveness. %he model is also
suited to measure how organizational culture effects organizational performance,
as it measures most efficient persons suited in an organization and as such
organizations can be termed as good organizational culture. ?mployee values
are measured against organizational values to predict employee intentions to
stay, and predict turnover. %his is done through instrument like Organizational
Culture ;rofile 2OC;3 to measure employee commitment. &aniel &enisonBs
model 25,,+3 asserts that organizational culture can be described by four general
dimensions C 7ission, daptability, Involvement and Consistency. ?ach of these
general dimensions is further described by the following three sub#dimensions1
7ission # Strategic &irection and Intent, :oals and Ob0ectives and Aision
daptability # Creating Change, Customer Docus and Organizational
@earning
Involvement # ?mpowerment, %eam Orientation and Capability
&evelopment
Consistency # Core Aalues, greement, Coordination>Integration
&enisonBs model also allows cultures to be described broadly as e$ternally or
internally focused as well as fle$ible versus stable. %he model has been typically
used to diagnose cultural problems in organizations.
"eal and #ennedy!
&eal and (ennedy defined organizational culture as the way things get done
around here. &eal and (ennedy created a model of culture that is based on E
different types of organizations. %hey each focus on how "uickly the organization
receives feedback, the way members are rewarded, and the level of risks taken1
$or%&hard, play&hard culture1 %his has rapid feedback>reward and low risk
resulting in1 Stress coming from "uantity of work rather than uncertainty. 4igh#
speed action leading to high#speed recreation. ?$amples1 Restaurants, software
companies.
Tough&guy macho culture1 %his has rapid feedback>reward and high risk,
resulting in the following1 Stress coming from high risk and potential loss>gain of
reward. Docus on the present rather than the longer#term future. ?$amples1
police, surgeons, sports.
Process culture1 %his has slow feedback>reward and low risk, resulting in the
following1 @ow stress, plodding work, comfort and security. Stress that comes
from internal politics and stupidity of the system. &evelopment of bureaucracies
and other ways of maintaining the status "uo. Docus on security of the past and
of the future. ?$amples1 banks, insurance companies.
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'et&the&company culture1 %his has slow feedback>reward and high risk,
resulting in the following1 Stress coming from high risk and delay before knowing
if actions have paid off. %he long view is taken, but then much work is put into
making sure things happen as planned. ?$amples1 aircraft manufacturers, oil
companies.
(dgar )chein
ccording to )chein culture is the most difficult organizational attribute to
change, outlasting organizational products, services, founders and leadership
and all other physical attributes of the organization. 4is organizational model
illuminates culture from the standpoint of the o*server, described by three
cognitive levels of organizational culture. t the first and most cursory level of
Schein<s model is organizational attributes that can be seen, felt and heard by the
uninitiated observer # collectively known as artifacts. Included are the facilities,
offices, furnishings, visible awards and recognition, the way that its members
dress, how each person visibly interacts with each other and with organizational
outsiders, and even company slogans, mission statements and other
operational creeds. rtifacts comprise the physical components of the
organization that relay cultural meaning. "aniel "enison 25,,+3 describes
artifacts as the tangible aspects of culture shared by members of an
organization. Aerbal, behavioral and physical artifacts are the surface
manifestations of organizational culture.
Rituals, the collective interpersonal behavior and values as demonstrated by that
behavior, constitute the fabric of an organization<s culture %he contents of myths,
stories, and sagas reveal the history of an organization and influence how people
understand what their organization values and believes. @anguage, stories, and
myths are e$amples of verbal artifacts and are represented in rituals and
ceremonies. %echnology and art e$hibited by members or an organization are
e$amples of physical artifacts. %he ne$t level deals with the professed culture of
an organization<s members # the values. Shared values are individualsB
preferences regarding certain aspects of the organizationBs culture 2e.g. loyalty,
customer service3. t this level, local and personal values are widely e$pressed
within the organization. 6asic beliefs and assumptions include individuals<
impressions about the trustworthiness and supportiveness of an organization,
and are often deeply ingrained within the organizationBs culture. Organizational
behavior at this level usually can be studied by interviewing the organization<s
membership and using "uestionnaires to gather attitudes about organizational
membership. t the third and deepest level, the organization<s tacit assumptions
are found. %hese are the elements of culture that are unseen and not cognitively
identified in everyday interactions between organizational members. dditionally,
these are the elements of culture which are often taboo to discuss inside the
organization. 7any of these <unspoken rules< e$ist without the conscious
knowledge of the membership. %hose with sufficient e$perience to understand
this deepest level of organizational culture usually become acclimatized to its
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attributes over time, thus reinforcing the invisibility of their e$istence. Surveys
and casual interviews with organizational members cannot draw out these
attributesFrather much more in#depth means is re"uired to first identify then
understand organizational culture at this level. )otably, culture at this level is the
underlying and driving element often missed by organizational behaviorists.
=sing Schein<s model, understanding parado$ical organizational behaviors
becomes more apparent. Dor instance, an organization can profess highly
aesthetic and moral standards at the second level of Schein<s model while
simultaneously displaying curiously opposing behavior at the third and deepest
level of culture. Superficially, organizational rewards can imply one organizational
norm but at the deepest level imply something completely different. %his insight
offers an understanding of the difficulty that organizational newcomers have in
assimilating organizational culture and why it takes time to become acclimatized.
It also e$plains why organizational change agents usually fail to achieve their
goals1 underlying tacit cultural norms are generally not understood before would#
be change agents begin their actions. 7erely understanding culture at the
deepest level may be insufficient to institute cultural change because the
dynamics of interpersonal relationships 2often under threatening conditions3 are
added to the dynamics of organizational culture while attempts are made to
institute desired change.
+actors and elements
:erry 9ohnson 25,**3 described a cultural web, identifying a number of elements
that can be used to describe or influence organizational culture1
The paradigm1 /hat the organization is about, what it does, its mission, its
values.
Control systems1 %he processes in place to monitor what is going on. Role
cultures would have vast rulebooks. %here would be more reliance on
individualism in a power culture.
Organizational structures1 Reporting lines, hierarchies, and the way that work
flows through the business.
Poer structures1 /ho makes the decisions, how widely spread is power, and
on what is power basedG
)ym*ols1 %hese include organizational logos and designs, but also e$tend to
symbols of power such as parking spaces and e$ecutive washrooms.
Rituals and routines1 7anagement meetings, board reports and so on may
become more habitual than necessary.
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)tories and myths1 build up about people and events, and convey a message
about what is valued within the organization.
%hese elements may overlap. ;ower structures may depend on control systems,
which may e$ploit the very rituals that generate stories which may not be true.
ccording to Schein the two main reasons why cultures develop in organizations
is due to e$ternal adaptation and internal integration. ?$ternal adaptation reflects
an evolutionary approach to organizational culture and suggests that cultures
develop and persist because they help an organization to survive and flourish. If
the culture is valuable, then it holds the potential for generating sustained
competitive advantages. dditionally, internal integration is an important function
since social structures are re"uired for organizations to e$ist. Organizational
practices are learned through socialization at the workplace. /ork environments
reinforce culture on a daily basis by encouraging employees to e$ercise cultural
values. Organizational culture is shaped by multiple factors, including the
following1
?$ternal environment
Industry
Size and nature of the organizationBs workforce
%echnologies the organization uses
%he organizationBs history and ownership
Communicative ,ndicators
%here are many different types of communication that contribute in creating an
organizational culture1
7etaphors such as comparing an organization to a machine or a family
reveal employeesB shared meanings of e$periences at the organization.
Stories can provide e$amples for employees of how to or not to act in
certain situations.
Rites and ceremonies combine stories, metaphors, and symbols into one.
Several different kinds of rites that affect organizational culture1
o Rites of passage1 employees move into new roles
o Rites of degradation1 employees have power taken away from them
o Rites of enhancement1 public recognition for an employeeBs
accomplishments
o Rites of renewal1 improve e$isting social structures
o Rites of conflict reduction1 resolve arguments between certain
members or groups
o Rites of integration1 reawaken feelings of membership in the
organization
Refle$ive comments are e$planations, 0ustifications, and criticisms of our
own actions. %his includes1
o ;lans1 comments about anticipated actions
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o Commentaries1 comments about action in the present
o ccounts1 comments about an action or event that has already
occurred
Such comments reveal interpretive meanings held by the speaker as well
as the social rules they follow.
Dantasy %hemes are common creative interpretations of events that reflect
beliefs, values, and goals of the organization. %hey lead to rhetorical
visions, or views of the organization and its environment held by
organization members.
)chemata
Schemata 2plural of schema3 are knowledge structures a person forms from past
e$periences, allowing the person to respond to similar events more efficiently in
the future by guiding the processing of information. person<s schemata are
created through interaction with others, and thus inherently involve
communication. Stanley :. 4arris 25,,E3 argues that five categories of in#
organization schemata are necessary for organizational culture1
5. )elf&in&organization schemata1 a person<s concept of oneself within the
conte$t of the organization, including her>his personality, roles, and
behavior.
H. Person&in&organization schemata1 a person<s memories, impressions,
and e$pectations of other individuals within the organization.
I. Organization schemata1 a subset of person schemata, a person<s
generalized perspective on others as a whole in the organization.
E. O*-ect.concept&in&organization schemata1 knowledge an individual has
of organization aspects other than of other persons.
8. (vent&in&organization schemata1 a person<s knowledge of social events
within an organization.
ll of these categories together represent a person<s knowledge of an
organization. Organizational culture is created when the schematas 2schematic
structures3 of differing individuals across and within an organization come to
resemble each other 2when any one person<s schemata come to resemble
another person<s schemata because of mutual organizational involvement3,
primarily done through organizational communication, as individuals directly or
indirectly share knowledge and meanings.
)trong.ea% cultures
Strong culture is said to e$ist where staff respond to stimulus because of their
alignment to organizational values. In such environments, strong cultures help
firms operate like well#oiled machines, engaging in outstanding e$ecution with
only minor ad0ustments to e$isting procedures as needed. Conversely, there is
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weak culture where there is little alignment with organizational values, and
control must be e$ercised through e$tensive procedures and bureaucracy.
Research shows that organizations that foster strong cultures have clear values
that give employees a reason to embrace the culture. !strong! culture may be
especially beneficial to firms operating in the service sector since members of
these organizations are responsible for delivering the service and for evaluations
important constituents make about firms. Research indicates that organizations
may derive the following benefits from developing strong and productive cultures1
6etter aligning the company towards achieving its vision, mission, and
goals
4igh employee motivation and loyalty
Increased team cohesiveness among the company<s various departments
and divisions
;romoting consistency and encouraging coordination and control within
the company
Shaping employee behavior at work, enabling the organization to be more
efficient
/here culture is strong, people do things because they believe it is the right thing
to do, and there is a risk of another phenomenon, groupthink. !:roupthink! was
described by Irving 9anis. 4e defined it as !a "uick and easy way to refer to a
mode of thinking that people engage when they are deeply involved in a
cohesive in#group, when the members< strivings for unanimity override their
motivation to realistically appraise alternatives of action.! 2Irving 9anis, 5,.H,
p. ,3 %his is a state in which even if they have different ideas, do not challenge
organizational thinking, and therefore there is a reduced capacity for innovative
thoughts. %his could occur, for e$ample, where there is heavy reliance on a
central charismatic figure in the organization, or where there is an evangelical
belief in the organization< values, or also in groups where a friendly climate is at
the base of their identity 2avoidance of conflict3. In fact, groupthink is very
common and happens all the time, in almost every group. 7embers that are
defiant are often turned down or seen as a negative influence by the rest of the
group because they bring conflict.
Healthy organizational cultures
Organizations should strive for what is considered a !healthy! organizational
culture in order to increase productivity, growth, efficiency and reduce
counterproductive behavior and turnover of employees. variety of
characteristics describe a healthy culture, including1
cceptance and appreciation for diversity
Regard for and fair treatment of each employee as well as respect for
each employeeBs contribution to the company
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?mployee pride and enthusiasm for the organization and the work
performed
?"ual opportunity for each employee to realize their full potential within the
company
Strong communication with all employees regarding policies and company
issues
Strong company leaders with a strong sense of direction and purpose
bility to compete in industry innovation and customer service, as well as
price
@ower than average turnover rates 2perpetuated by a healthy culture3
Investment in learning, training, and employee knowledge
dditionally, performance oriented cultures have been shown to possess
statistically better financial growth. Such cultures possess high employee
involvement, strong internal communications and an acceptance and
encouragement of a healthy level of risk#taking in order to achieve innovation.
dditionally, organizational cultures that e$plicitly emphasize factors related to
the demands placed on them by industry technology and growth will be better
performers in their industries. ccording to (otter and 4eskett organizations with
adaptive cultures perform much better than organizations with unadaptive
cultures. n adaptive culture translates into organizational successJ it is
characterized by managers paying close attention to all of their constituencies,
especially customers, initiating change when needed, and taking risks. n
unadaptive culture can significantly reduce a firm<s effectiveness, disabling the
firm from pursuing all its competitive>operational options.
Charles Handy
Charles 4andy 25,.-3, popularized Roger 4arrison 25,.H3 with linking
organizational structure to organizational culture. %he described four types of
culture are1
K5*L
Poer culture1 concentrates power among a small group or a central figure and
its control is radiating from its center like a web. ;ower cultures need only a few
rules and little bureaucracy but swift in decisions can ensue.
Role culture1 authorities are delegated as such within a highly defined structure.
%hese organizations form hierarchical bureaucracies, where power derives from
the personal position and rarely from an e$pert power. Control is made by
procedures 2which are highly valued3, strict roles descriptions and authority
definitions. %hese organizations have consistent systems and are very
predictable. %his culture is often represented by a !Roman 6uilding! having
pillars. %hese pillars represent the functional departments.
Tas% culture1 teams are formed to solve particular problems. ;ower is derived
from the team with the e$pertise to e$ecute against a task. %his culture uses a
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small team approach, where people are highly skilled and specialized in their
own area of e$pertise. dditionally, these cultures often feature the multiple
reporting lines seen in a matri$ structure.
Person culture1 formed where all individuals believe themselves superior to the
organization. It can become difficult for such organizations to continue to operate,
since the concept of an organization suggests that a group of like#minded
individuals pursue organizational goals. 4owever some professional partnerships
operate well as person cultures, because each partner brings a particular
e$pertise and clientele to the firm.
#im Cameron and Ro*ert /uinn
(im Cameron and Robert Muinn 25,,,3 made a research on organizational
effectiveness and success. 6ased on the Competing Aalues Dramework, they
developed the Organizational Culture ssessment Instrument that distinguishes
four culture types. Competing values produce polarities like fle$ibility vs. stability
and internal vs. e$ternal focus # these two polarities were found to be most
important in defining organizational success. %he polarities construct a "uadrant
with four types of culture1
Clan culture 2internal focus and fle$ible3 # friendly workplace where
leaders act like father figures.
dhocracy culture 2e$ternal focus and fle$ible3 # dynamic workplace with
leaders that stimulate innovation.
7arket culture 2e$ternal focus and controlled3 # competitive workplace
with leaders like hard drivers
4ierarchy culture 2internal focus and controlled3 # structured and
formalized workplace where leaders act like coordinators.
Cameron ' Muinn designated si$ key aspects that will form organizational culture
which can be assessed in the Organizational Culture ssessment Instrument
2OCI3 thus producing a mi$ of the four archetypes of culture. ?ach organization
or team will have its uni"ue mi$ of culture types. Clan cultures are most strongly
associated with positive employee attitudes and product and service "uality,
whereas market cultures are most strongly related with innovation and financial
effectiveness criteria. %he primary belief in market cultures is that clear goals and
contingent rewards motivate employees to aggressively perform and meet
stakeholders< e$pectationsJ a core belief in clan cultures is that the organizationBs
trust in and commitment to employees facilitates open communication and
employee involvement. %hese differing results suggest that it is important for
e$ecutive leaders to consider the match between strategic initiatives and
organizational culture when determining how to embed a culture that produces
competitive advantage. 6y assessing the current organizational culture as well as
the preferred situation, the gap and direction to change can be made visible as a
first step to changing organizational culture.
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Ro*ert A0 Coo%e
Robert . Cooke defines culture as the behaviors that members believe are
re"uired to fit in and meet e$pectations within their organization. %he
Organizational Culture Inventory measures twelve behavioral norms that are
grouped into three general types of cultures1
Constructive cultures, in which members are encouraged to interact with
people and approach tasks in ways that help them meet their higher#order
satisfaction needs.
;assive>defensive cultures, in which members believe they must interact
with people in ways that will not threaten their own security.
ggressive>defensive cultures, in which members are e$pected to
approach tasks in forceful ways to protect their status and security.
Constructive cultures
In constructive cultures people are encouraged to be in communication with their
co#workers, and work as teams, rather than only as individuals. In positions
where people do a comple$ 0ob, rather than something simple like a mechanic
one, this culture is efficient.
Achievement1 completing a task successfully, typically by effort, courage, or skill
2pursue a standard of e$cellence3 2e$plore alternatives before acting3 # 6ased on
the need to attain high#"uality results on challenging pro0ects, the belief that
outcomes are linked to one<s effort rather than chance and the tendency to
personally set challenging yet realistic goals. ;eople high in this style think ahead
and plan, e$plore alternatives before acting and learn from their mistakes.
)elf&actualizing1 realization or fulfillment of one<s talents and potentialities #
considered as a drive or need present in everyone 2think in uni"ue and
independent ways3 2do even simple tasks well3 # 6ased on needs for personal
growth, self#fulfillment and the realisation of one<s potential. ;eople with this style
demonstrate a strong desire to learn and e$perience things, creative yet realistic
thinking and a balanced concern for people and tasks.
Humanistic&encouraging1 help others to grow and develop 2resolve conflicts
constructively3 # Reflects an interest in the growth and development of people, a
high positive regard for them and sensitivity to their needs. ;eople high in this
style devote energy to coaching and counselling others, are thoughtful and
considerate and provide people with support and encouragement.
Affiliativ treat people as more valuable than things 2cooperate with others3 #
Reflects an interest in developing and sustaining pleasant relationships. ;eople
high in this style share their thoughts and feelings, are friendly and cooperative
and make others feel a part of things.
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Organizations with constructive cultures encourage members to work to their full
potential, resulting in high levels of motivation, satisfaction, teamwork, service
"uality, and sales growth. Constructive norms are evident in environments where
"uality is valued over "uantity, creativity is valued over conformity, cooperation is
believed to lead to better results than competition, and effectiveness is 0udged at
the system level rather than the component level. %hese types of cultural norms
are consistent with 2and supportive of3 the ob0ectives behind empowerment, total
"uality management, transformational leadership, continuous improvement, re#
engineering, and learning organizations.
Passive.defensive cultures
)orms that reflect e$pectations for members to interact with people in ways that
will not threaten their own security are in the ;assive>&efensive Cluster. %he four
;assive>&efensive cultural norms are1
pproval
Conventional
&ependent
voidance
In organizations with ;assive>&efensive cultures, members feel pressured to
think and behave in ways that are inconsistent with the way they believe they
should in order to be effective. ;eople are e$pected to please others 2particularly
superiors3 and avoid interpersonal conflict. Rules, procedures, and orders are
more important than personal beliefs, ideas, and 0udgment. ;assive>&efensive
cultures e$perience a lot of unresolved conflict and turnover, and organizational
members report lower levels of motivation and satisfaction.
Aggressive.defensive cultures
%his style is characterized with more emphasis on task than people. 6ecause of
the very nature of this style, people tend to focus on their own individual needs at
the e$pense of the success of the group. %he aggressive>defensive style is very
stressful, and people using this style tend to make decisions based on status as
opposed to e$pertise.
5. Oppositional # %his cultural norm is based on the idea that a need for
security that takes the form of being very critical and cynical at times.
;eople who use this style are more likely to "uestion others workJ
however, asking those tough "uestion often leads to a better product.
)onetheless, those who use this style may be overly#critical toward
others, using irrelevant or trivial flaws to put others down.
H. Poer # %his cultural norm is based on the idea that there is a need for
prestige and influence. %hose who use this style often e"uate their own
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self#worth with controlling others. %hose who use this style have a
tendency to dictate others opposing to guiding othersB actions.
I. Competitive # %his cultural norm is based on the idea of a need to protect
oneBs status. %hose who use this style protect their own status by
comparing themselves to other individuals and outperforming them. %hose
who use this style are seekers of appraisal and recognition from others.
E. Perfectionistic # %his cultural norm is based on the need to attain flawless
results. %hose who often use this style e"uate their self#worth with the
attainment of e$tremely high standards. %hose who often use this style are
always focused on details and place e$cessive demands on themselves
and others.
Organizations with aggressive>defensive cultures encourage or re"uire members
to appear competent, controlled, and superior. 7embers who seek assistance,
admit shortcomings, or concede their position are viewed as incompetent or
weak. %hese organizations emphasize finding errors, weeding out !mistakes! and
encouraging members to compete against each other rather than competitors.
%he short#term gains associated with these strategies are often at the e$pense of
long#term growth.
(ntrepreneurial organizational culture
Stephen 7c:uire 2H++I3 defined and validated a model of organizational culture
that predicts revenue from new sources. n ?ntrepreneurial Organizational
Culture 2?OC3 is a system of shared values, beliefs and norms of members of an
organization, including valuing creativity and tolerance of creative people,
believing that innovating and seizing market opportunities are appropriate
behaviors to deal with problems of survival and prosperity, environmental
uncertainty, and competitors< threats, and e$pecting organizational members to
behave accordingly.
(lements
People and empoerment focused
Aalue creation through innovation and change
ttention to the basics
4ands#on management
&oing the right thing
Dreedom to grow and to fail
Commitment and personal responsibility
?mphasis on the future
14
Tri*al culture
&avid @ogan and coauthors have proposed in their book %ribal @eadership that
organizational cultures change in stages, based on an analysis of human groups
and tribal cultures. %hey identify five basic stages1
5. @ife sucks 2a subsystem severed from other functional systems like tribes,
gangs and prisonFH percent of population3J
H. 7y life sucks 2I am stuck in the &umb 7otor Aehicle line and can<t believe
I have to spend my time in this lost triangle of ineffectivenessFH8 percent
of population3J
I. I<m great 2and you<re not, I am detached from you and will dominate you
regardless of your intentFE* percent of population3J
E. /e are great, but other groups suck 2citing Nappo<s and an attitude of
unification around more than individual competenceFHH percent of
population3 and
8. @ife is great 2citing &esmond %utu<s hearing on truth and values as the
basis of reconciliationFI percent of population3.
%his model of organizational culture provides a map and conte$t for leading an
organization through the five stages.
Personal and organizational culture
Organizational culture is taught to the person as culture is taught by his>her
parents thus changing and modeling his>her personal culture. Indeed employees
and people applying for a 0ob are advised to match their !personality to a
companyBs culture! and fit to it. Some researchers even suggested and have
made case studies research on personality changing.
1ational and organizational culture
Corporate culture is used to control, coordinate, and integrate of company
subsidiaries. 4owever differences in national cultures e$ist contributing to
differences in the views on the management. &ifferences between national
cultures are deep rooted values of the respective cultures, and these cultural
values can shape how people e$pect companies to be run, and how relationships
between leaders and followers should be resulting to differences between the
employer and the employee on e$pectations. 2:eert 4ofstede, 5,,53 ;erhaps
e"ually foundationalJ observing the vast differences in national copyright 2and
ta$ation, etc.3 laws suggests deep rooted differing cultural attitudes and
assumptions on property rights and sometimesJ the desired root function, place,
or purpose of corporations relative to the population.
15
2ultiplicity
Oibao Nhang 2H++,3 carried out an empirical study of culture emergence in the
Sino#/estern international cross#cultural management 2S/#ICC73 conte$t in
China. Dield data were collected by interviewing /estern e$patriates and
Chinese professionals working in this conte$t, supplemented by non#participant
observation and documentary data. %he data were then analyzed in grounded
fashion to formulate theme#based substantive theories and a formal theory. %he
ma0or finding of this study is that human cognition contains three components, or
three broad types of !cultural rules of behavior!, namely, Aalues, ?$pectations,
and d 4oc Rules, each of which has a mutually conditioning relationship with
behavior. %he three cognitive components are different in terms of the scope and
duration of their mutual shaping with behavior. Aalues are universal and enduring
rules of behaviorJ ?$pectations, on the other hand, are conte$t#specific
behavioral rulesJ while d 4oc Rules are improvised rules of behavior that the
human mind devises contingent upon a particular occasion. Durthermore, they
need not be consistent, and fre"uently are not, among themselves.
7etaphorically, they can be compared to a multi#carriage train, which allows for
the relative lateral movements by individual carriages so as to accommodate
bumps and turns in the tracks. In fact, they provide a !shock#absorber
mechanism!, so to speak, which enables individuals in S/#ICC7 conte$ts to
cope with conflicts in cultural practices and values, and to accommodate and
adapt themselves to cultural conte$ts where people from different national
cultural backgrounds work together over e$tended time. It also provides a
powerful framework which e$plains how interactions by individuals in S/#ICC7
conte$ts give rise to emerging hybrid cultural practices characterized by both
stability and change.
,mpacts
Research suggests that numerous outcomes have been associated either
directly or indirectly with organizational culture. healthy and robust
organizational culture may provide various benefits, including the following1
Competitive edge derived from innovation and customer service
Consistent, efficient employee performance
%eam cohesiveness
4igh employee morale
Strong company alignment towards goal achievement
lthough little empirical research e$ists to support the link between
organizational culture and organizational performance, there is little doubt among
e$perts that this relationship e$ists. Organizational culture can be a factor in the
survival or failure of an organization # although this is difficult to prove
considering the necessary longitudinal analyses are hardly feasible. %he
sustained superior performance of firms like I67, 4ewlett#;ackard, ;rocter '
16
:amble, and 7c&onald<s may be, at least partly, a reflection of their
organizational cultures. H++I 4arvard 6usiness School study reported that
culture has a significant impact on an organizationBs long#term economic
performance. %he study e$amined the management practices at 5-+
organizations over ten years and found that culture can enhance performance or
prove detrimental to performance. Organizations with strong performance#
oriented cultures witnessed far better financial growth. dditionally, a H++H
Corporate @eadership Council study found that cultural traits such as risk taking,
internal communications, and fle$ibility are some of the most important drivers of
performance, and may impact individual performance. Durthermore,
innovativeness, productivity through people, and the other cultural factors cited
by ;eters and /aterman 25,*H3 also have positive economic conse"uences.
&enison, 4aaland, and :oelzer 2H++E3 found that culture contributes to the
success of the organization, but not all dimensions contribute the same. It was
found that the impacts of these dimensions differ by global regions, which
suggests that organizational culture is impacted by national culture. dditionally,
Clarke 2H++-3 found that a safety climate is related to an organizationBs safety
record.
Organizational culture is reflected in the way people perform tasks, set
ob0ectives, and administer the necessary resources to achieve ob0ectives.
Culture affects the way individuals make decisions, feel, and act in response to
the opportunities and threats affecting the organization. dkins and Caldwell
2H++E3 found that 0ob satisfaction was positively associated with the degree to
which employees fit into both the overall culture and subculture in which they
worked. perceived mismatch of the organizationBs culture and what employees
felt the culture should be is related to a number of negative conse"uences
including lower 0ob satisfaction, higher 0ob strain, general stress, and turnover
intent. It has been proposed that organizational culture may impact the level of
employee creativity, the strength of employee motivation, and the reporting of
unethical behavior, but more research is needed to support these conclusions.
Organizational culture also has an impact on recruitment and retention.
Individuals tend to be attracted to and remain engaged in organizations that they
perceive to be compatible. dditionally, high turnover may be a mediating factor
in the relationship between culture and organizational performance. &eteriorating
company performance and an unhealthy work environment are signs of an
overdue cultural assessment.
Change
/hen an organization does not possess a healthy culture or re"uires some kind
of organizational culture change, the change process can be daunting. One
ma0or reason why such change is difficult is that organizational cultures, and the
organizational structures in which they are embedded, often reflect the !imprint!
of earlier periods in a persistent way and e$hibit remarkable levels of inertia.
Culture change may be necessary to reduce employee turnover, influence
17
employee behavior, make improvements to the company, refocus the company
ob0ectives and>or rescale the organization, provide better customer service,
and>or achieve specific company goals and results. Culture change is impacted
by a number of elements, including the e$ternal environment and industry
competitors, change in industry standards, technology changes, the size and
nature of the workforce, and the organizationBs history and management. %here
are a number of methodologies specifically dedicated to organizational culture
change such as ;eter SengeBs Difth &iscipline. %hese are also a variety of
psychological approaches that have been developed into a system for specific
outcomes such as the Difth &isciplineBs !learning organization! or &irective
CommunicationBs !corporate culture evolution.! Ideas and strategies, on the other
hand, seem to vary according to particular influences that affect culture.
6urman and ?vans 2H++*3 argue that it is <leadership< that affects culture rather
than <management<, and describe the difference. /hen one wants to change an
aspect of the culture of an organization one has to keep in consideration that this
is a long term pro0ect. Corporate culture is something that is very hard to change
and employees need time to get used to the new way of organizing. Dor
companies with a very strong and specific culture it will be even harder to
change. ;rior to a cultural change initiative, a needs assessment is needed to
identify and understand the current organizational culture. %his can be done
through employee surveys, interviews, focus groups, observation, customer
surveys where appropriate, and other internal research, to further identify areas
that re"uire change. %he company must then assess and clearly identify the new,
desired culture, and then design a change process. Cummings ' /orley 2H++E,
p. E,5 C E,H3 give the following si$ guidelines for cultural change, these changes
are in line with the eight distinct stages mentioned by (otter
5. Dormulate a clear strategic vision 2stage 5, H, and I3. In order to make a
cultural change effective a clear vision of the firmBs new strategy, shared
values and behaviors is needed. %his vision provides the intention and
direction for the culture change 2Cummings ' /orley, H++E, p. E,+3.
H. &isplay top#management commitment 2stage E3. It is very important to
keep in mind that culture change must be managed from the top of the
organization, as willingness to change of the senior management is an
important indicator 2Cummings ' /orley, H++E, page E,+3. %he top of the
organization should be very much in favor of the change in order to
actually implement the change in the rest of the organization. &e CaluwP
' Aermaak 2H++E, p ,3 provide a framework with five different ways of
thinking about change.
I. 7odel culture change at the highest level 2stage 83. In order to show that
the management team is in favor of the change, the change has to be
notable at first at this level. %he behavior of the management needs to
symbolize the kinds of values and behaviors that should be realized in the
rest of the company. It is important that the management shows the
strengths of the current culture as well, it must be made clear that the
18
current organizational does not need radical changes, but 0ust a few
ad0ustments. 2See for more1 &eal ' (ennedy, 5,*HJ
KIL
Sathe, 5,*IJ SchallJ
5,*IJ /eick, 5,*8J &i%omaso, 5,*.3. %his process may also include
creating committee, employee task forces, value managers, or similar.
Change agents are key in the process and key communicators of the new
values. %hey should possess courage, fle$ibility, e$cellent interpersonal
skills, knowledge of the company, and patience. s 7cCune 27ay 5,,,3
puts it, these individual should be catalysts, not dictators.
E. 7odify the organization to support organizational change. %he fourth step
is to modify the organization to support organizational change. %his
includes identifying what current systems, policies, procedures and rules
need to be changed in order to align with the new values and desired
culture. %his may include a change to accountability systems,
compensation, benefits and reward structures, and recruitment and
retention programs to better align with the new values and to send a clear
message to employees that the old system and culture are in the past.
8. Select and socialize newcomers and terminate deviants 2stage . ' * of
(otter, 5,,8, p. H3. way to implement a culture is to connect it to
organizational membership, people can be selected and terminate in
terms of their fit with the new culture 2Cummings ' /orley, H++E, p. E,53.
?ncouraging employee motivation and loyalty to the company is key and
will also result in a healthy culture. %he company and change managers
should be able to articulate the connections between the desired behavior
and how it will impact and improve the companyBs success, to further
encourage buy#in in the change process. %raining should be provided to
all employees to understand the new processes, e$pectations and
systems.
-. &evelop ethical and legal sensitivity. Changes in culture can lead to
tensions between organizational and individual interests, which can result
in ethical and legal problems for practitioners. %his is particularly relevant
for changes in employee integrity, control, e"uitable treatment and 0ob
security 2Cummings ' /orley, H++E, p. E,53. It is also beneficial, as part of
the change process, to include an evaluation process, conducted
periodically to monitor the change progress and identify areas that need
further development. %his step will also identify obstacles of change and
resistant employees and to acknowledge and reward employee
improvement, which will also encourage continued change and
evolvement. It may also be helpful and necessary to incorporate new
change managers to refresh the process. Outside consultants may also be
useful in facilitating the change process and providing employee training.
Change of culture in the organizations is very important and inevitable.
Culture innovations is bound to be because it entails introducing
something new and substantially different from what prevails in e$isting
cultures. Cultural innovation is bound to be more difficult than cultural
maintenance. ;eople often resist changes hence it is the duty of the
management to convince people that likely gain will outweigh the losses.
19
6esides institutionalization, deification is another process that tends to
occur in strongly developed organizational cultures. %he organization itself
may come to be regarded as precious in itself, as a source of pride, and in
some sense uni"ue. Organizational members begin to feel a strong bond
with it that transcends material returns given by the organization, and they
begin to identify with it. %he organization turns into a sort of clan.
2ergers, organizational culture, and cultural leadership
One of the biggest obstacles in the way of the merging of two organizations is
organizational culture. ?ach organization has its own uni"ue culture and most
often, when brought together, these cultures clash. /hen mergers fail employees
point to issues such as identity, communication problems, human resources
problems, ego clashes, and inter#group conflicts, which all fall under the category
of !cultural differences!. One way to combat such difficulties is through cultural
leadership. Organizational leaders must also be cultural leaders and help
facilitate the change from the two old cultures into the one new culture. %his is
done through cultural innovation followed by cultural maintenance.
Cultural innovation includes1
o Creating a new culture1 recognizing past cultural differences and
setting realistic e$pectations for change
o Changing the culture1 weakening and replacing the old cultures
Cultural maintenance includes1
o Integrating the new culture1 reconciling the differences between the
old cultures and the new one
o ?mbodying the new culture1 ?stablishing, affirming, and keeping
the new culture
Corporate su*cultures
Corporate culture is the total sum of the values, customs, traditions, and
meanings that make a company uni"ue. Corporate culture is often called !the
character of an organization!, since it embodies the vision of the company<s
founders. %he values of a corporate culture influence the ethical standards within
a corporation, as well as managerial behavior. Senior management may try to
determine a corporate culture. %hey may wish to impose corporate values and
standards of behavior that specifically reflect the ob0ectives of the organization. In
addition, there will also be an e$tant internal culture within the workforce. /ork#
groups within the organization have their own behavioral "uirks and interactions
which, to an e$tent, affect the whole system. Roger 4arrison<s four#culture
typology, and adapted by Charles 4andy, suggests that unlike organizational
culture, corporate culture can be <imported<. Dor e$ample, computer technicians
will have e$pertise, language and behaviors gained independently of the
organization, but their presence can influence the culture of the organization as a
whole.
20
Critical vies
Criticism of the usage of the term by managers began already in its emergence
in the early *+s. 7ost of the criticism comes from the writers in critical
management studies who for e$ample e$press skepticism about the functionalist
and unitarist views about culture that are put forward by mainstream
management writers. %hey stress the ways in which these cultural assumptions
can stifle dissent management and reproduce propaganda and ideology. %hey
suggest that organizations do not have a single culture and cultural engineering
may not reflect the interests of all stakeholders within an organization. ;arker
2H+++3 has suggested that many of the assumptions of those putting forward
theories of organizational culture are not new. %hey reflect a long#standing
tension between cultural and structural 2or informal and formal3 versions of what
organizations are. Durther, it is reasonable to suggest that comple$ organizations
might have many cultures, and that such sub#cultures might overlap and
contradict each other. %he neat typologies of cultural forms found in te$tbooks
rarely acknowledge such comple$ities, or the various economic contradictions
that e$ist in capitalist organizations. mong the strongest and widely recognized
writers on corporate culture with a long list of articles on leadership, culture,
gender and their intersection is @inda Smircich, as a part of the of critical
management studies, she criticises theories that attempt to categorize or
<pigeonhole< organizational culture. She uses the metaphor of a plant root to
represent culture, describing that it drives organizations rather than vice versa.
Organizations are the product of organizational culture, we are unaware of how it
shapes behavior and interaction 2also recognized through Scheins 2H++H3
underlying assumptions

and so how can we categorize it and define what it is
21
CA)( )T3"4
$orld Call Telecommunications 5roup
Corporate Profile&&/orld call %elecommunications :roup began life in 5,,8
when Dirst Capital Securities Corporation @td started incubating /orld call
;ayphones, now /orld call Communications @imited. %he ne$t few years were
spent in e$panding payphone network across ;akistan, creating new businesses
and drawing investor attention to the value of /orld call businesses. nd now,
there are 5E5,+++ payphones all over the country and /orld call holds the
largest share with HH Q of the market. %oday, they are number one, and pioneers
in franchised payphones In 5,,* ;repaid Calling Cards were launched by /orld
call phone cards under the brand name !4ello!. In the private sector 4?@@O is
number one and again the first.
In the following year the group established dial#up internet services through
/orld call &ot Com. In 5,,, /orld call %elecom @anka established the groupBs
first overseas presence when payphone operations were established in Sri
@anka. %oday, they operate over 5H++ payphones in Sri @anka. In H+++ /orld call
6roadband established a 4ybrid Diber Coa$ial 24DC3 network in @ahore by the
name of !7agic!, thus becoming the first 7ulti service operator in the country,
providing cable television and cable internet. In Cable %elevision in @ahore, /orld
call was the last entrant and by far the largest. In H++I they launched a state of
the art 4DC network operation in (arachi branded /orld call 6roadband @imited.
;hase 5 of the pro0ect, covering &efense and Clifton is complete and over the
ne$t eighteen months the pro0ect envisions a fiber network all over (arachi.
+uture (6pansion and ,nitiatives&&/orld call plans an aggressive e$pansion in
all its e$isting businesses. Internationally /orld call is evaluating other
opportunities in infant regional markets with similar profiles like 6angladesh, Sri
@anka etc. as well as international markets that have become telecom hubs for
these regions like =(, =S, 4ong (ong, ustralia ' Singapore. )ew @icenses >
6usinesses /orld callBs strategy is to position itself in advance to gain a first
22
mover advantage in various communications businesses. ;akistan
%elecommunications uthority 2;%3 issued licenses for @&I and @@ to /orld call
on the 5Eth and 5-th of 9uly, H++E. )ew @icenses # @ocal @oop 2@@3 /orld call
was awarded this license on 5-th 9uly, H++E and was the first new entrant in this
segment. It will offer voice services utilizing its 4DC network to ensure access to
the last mile. /orld call then plans to e$pand this business using alternate
technologies as well. @@ 2telephony3 service providers will offer telephone
connections either by laying cable or through wireless technology. /orld call will
provide customers with additional telephony choices, better "uality of service,
attractive pricing plans and a new set of features such as conference calling, call#
waiting, call forwarding, free#phone 2+*++ service3, and the like. /orld call will
launch telephony services using the following1
R /orld call will be the first to launch telephony to its Cable customers in @ahore
and (arachi in addition to Cable %A and 6roadband Internet services as a true
multi#service offeringJ
R %elephony ' 6roadband Internet over copper 27ulti Service ccess )odes #
7S)3J
R /ireless home telephony with limited mobility )ew @icenses # @ong &istance '
International 2@&I3 =nder the deregulation process, the ;% has issued @ong
&istance and International 2@&I3 licenses. /orld call, already a leading player in
the telecom market is a natural contender for this license and has become one of
the first companies to ac"uire the said license. /orld call was awarded the
license on 5Eth 9uly H++E and services has started in )ovember H++E. /orld call
has selected state of the art#technology to offer ne$t generation services and will
be the first operator to deploy a full )e$t :eneration )etwork 2):)3. Contracts
for e"uipment supply and network deployment have been finalized with leading
international telecom vendors including Siemens, Cisco and )uera. /orld call
@&I network will cater to the needs of different market segments by offering
competitive voice and value added services tailored to their individual
re"uirements. /ith the /orld call @&I network in place, the end customer will be
able to get better "uality of service and care. /orld call is investing in scalable '
23
fle$ible ):) solutions providing cost effective and future proof investments. %his
means lower fi$ed and capital e$penditure and more efficient structures creating
lower operating e$penditure, better "uality of service, more competitive products,
"uick#to#market and new revenue rich services. )ew @icenses C /ireless @ocal
@oop 2/@@3 /orld call has completed all preliminary work for successfully
launching the services across ;akistan at very attractive pricing and "uality of
service after grant of license by ;%. /orld call plans on deploying a %hird
:eneration capable )etwork C&7 H+++ 5O and will be offering Di$ed
%elephony, @imited 7obility %elephony and all the latest value added services
likeJ S7S, 77S, :;RS, ;ush#to#talk, ?7S, etc.
$orld call 2ultimedia 7td##/orld call 7ultimedia @imited 2S/7@T3 is the first#
ever broadband infrastructure deployed in ;akistan to provide interactive
multimedia services through hybrid fiber coa$ial 24DC3 network in the city of
@ahore. %his is a -8,+++ house pass pro0ect that began offering *+U crisp %A
channels to its customers in &ecember H++5 and high#speed Internet#over#Cable
service has recently started as well. /7@ is currently servicing around I-,+++
Cable %A ' over E,+++ Internet#over#Cable subscribers. Other value added
services such as AoI; > telephony, pay#per#view, video#on#demand, distance
learning, security and data network services will be added gradually sub0ect to
relevant approvals. %heir brand name S/orld of 7agicT is reflective of the
companyBs commitment to fill their customersB world with the magic of
infotainment. %heir service gives the subscribers the opportunity to be
entertained by a wide range of engaging channels in ?nglish, =rdu and ;un0abi1
7ovies, sports, news, documentaries, music, children programs and other
entertainment and information content. Other value added services include
Software downloads, 7;I streaming, Online 7ultiplayer :aming, Internet Radio
' Aideo Streaming through their website www.magic.net.pk.
Sponsors of /orld call 7ultimedia included DCSC, /orld call Communications '
Cairn wood :lobal %echnology Dund. fter a ma0or restructuring to bring local
operational telecom companies in the group under one umbrella, /C@ now holds
,,., Q shares of /7@. /orld call Communications is in the process of ac"uiring
24
the balance shares of /7@ after which /7@ shall become a wholly owned
subsidiary of /C@.
8ision
/orld call 7ultimedia @imited is committed to achieving the highest "uality in all
that it does. Our endeavor is to consistently satisfy our customers, shareholders,
fellow employees, and communities by giving them the best possible services.
6eing the pioneers of providing 6road 6and services and Cable %A on fiber optic
continue to strive for providing state of the art technology in order to bring
;akistan at par with the most advanced countries in the world.
chieving Competitive dvantage through Information %echnology
6roadband is the term used to describe internet services that are much faster
and more powerful than home connections. =ntil now, these <dial#up< connections
have been the most available and affordable forms of internet access, but now
there are broadband pitons in many areas so it is worth knowing what is out there
to decide when to make the switch. )ew services using your e$isting telephone
lines, for e$ample, can allow you to access the internet and make a telephone
call at the same time, meaning your friends don<t have to get an engaged tone
when they try to ring you any more 0ust because someone in the house is always
on the internetV
90 Ho fast is fast:##O(, so we all know broadband internet means fast internet.
6ut how fast is fastG Is it 0ust as good simply to buy a whizzy new modem and
carry on dialing up, for e$ampleG /hile there is no single precise definition of
broadband or broadband speeds, there are some generally accepted features.
Dirst, however, you need to understand how internet speed is measured.
standard home computer modem these days operates at a ma$imum speed of
8-k 2precise speeds can vary due to congestion on the internet and other factors,
but that is what it is capable of in perfect conditions3. 8-k 2sometimes seen as
8-(bps3 means 8- <kilobits per second<. /hat<s a kilobitG 9ust over 5,+++ bits.
/hat<s a bitG It<s the simplest element of digitized data # a 5 or a zero, which are
the building blocks of all computer data. So, a modem can send around 8-,+++
bits of data every second down the line. %his might sound like a lot, but as users
25
of dial#up modems know, it can seem awfully slow as one waits for the 8+th
photograph on a page crammed with images to download 0ust as someone else
in the house is waiting to use the telephone. nd this is 0ust the ma$imum speed
# sometimes modems seem to freeze up altogether or you have problems
connecting to your IS;. So how fast must a connection be before it is called
broadbandG Some say 5H*(bps, others 85H(bps. Certainly 85H(bps is fast
enough that accessing websites seems instantaneous. 6ut all agree that even
higher speeds of at least H7bps # 7egabits per second, or 0ust over a million bits
# will be needed before services involving live video beamed over the internet will
become practical.
;0 )peed isn't everything0 ##6roadband is not 0ust about higher speeds, though.
%here are other things to recommend it. 7ost types of broadband internet service
are <always on< # in other words, you don<t have to keep connecting and
disconnecting, you can 0ust sit at your computer and start surfing the web
whenever you like. s we have already mentioned, they also usually allow you to
make phone calls at the same time as using the internet, sometimes with several
phone lines as well # a real godsend in households where some people love the
internet and others love the phoneV Dinally, faster speeds mean not only that you
can retrieve web pages faster, but that you can start to use the internet in new
ways which are simply not worth trying with a slow connection. Wou can listen to
%A and radio over the webJ watch <web casts< of your favorite pop groupJ and
send holiday snaps to friends and family with ease. Small businesses can also
find it<s much easier to work both inside their offices and with e$ternal customers
and partners with broadband connections.
"(PART2(1T)
90 Administration < )ecurity##%his department is responsible for housekeeping,
controlling logistics, security of offices ' network and liaison to authorities like
/;&. %he basic problem encountered by the department is the security of the
scattered network.
;0 Advertising )ales < Content &&%his department sells media and air time to
companies and ad agencies. Content editing is also performed by the
26
department. Restrictions imposed by the government on the content are the
barriers on the performance of the department.
=0 Customer Care&&%his department is responsible to record customer
complaints, forwarding them to the specific department and giving feedback to
customers. ;roblems arise when there are more number of calls then the
number, call center can handle.
>0 +inance < Accounts&&%his department performs activities like accounts
keeping, financial analyses and forecasting, banks dealing, procurement
management, inventory recording, cash collection and cash distribution. %he
basic problem faced by the department is field inventory damage evaluation.
?0 Human Resources##%his department performs recruitment, training,
appraisal, salary and discipline of employees. Inappropriate attendance system
creates problems for the department.
@0 2,)&%his department performs software development, @ocal re network
operations ' maintenance and value added services management. ;roblems are
encountered when virus attacks happen.
A0 )ales < 2ar%eting&&%his department is concerned with sales management '
enhancement, collection ' recovery of revenues, distribution management, and
brand promotion. ;roblems are faced when government imposes restrictions on
content relayed, which lemmatize sales growth.
"istri*ution )trategy&&/orld call 7ultimedia @imited has wisely made use of its
network by e$tending lines to areas where it canBt operate directly. &istributors
have been appointed to provide C%A services. &istributors install their own
webs and maintain by themselves by paying certain percentage to /orld call
7ultimedia @imited. /orld call 7ultimedia @imited establishes its authorized
sales outlets in the e$isting offices distributors on following conditionsJ
R ;rime location of distributorBs office in the locality.
R %he signboard and other office fi$tures to be provided by the /orld call
7ultimedia @imited.
R &istributor will display and sell /orld call products at its outlet like ;CO, calling
cards, &ial#up cards, C%A and IOC sales booking forms, &aily %imes,
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dvertising for C%A etc.
R &istributor is re"uired to install at#least H phone lines for customer care.
R %he customer care number in the distributor area to be publicized by the
distributor.
R ll the ;OS material for all products will be available with the distributors.
R %he addition of services will increase the business and potential to increase
revenue for distributors
2ar%et Profile BPa%istanC
Internet usage has been gaining ground in the past few years in ;akistan.
Recently 66C reported that there are about H++,+++ internet users at the
beginning of H++H. %his number has been growing with the increase in the
number of cities that are now on the /orld /ide /eb. On last count the number
of cities in ;akistan that had Internet access was 8H5. 6elow is the breakup of
the number by state1
;un0ab H88
Sindh 5+I
)./.D.; ,E
6aluchistan -.
:ilgit 5
Dederal 2)ot a state3 5
)egmentations
/orldcall 7ultimedia @td is working on the concept of 7ass 7arketing. So under
the given concept it is targeting every kind of customer. (ey Success Dactors
2(S?3
R %echnical ?$pertise
R 4ybrid Diber Coa$ial 24DC3
R ?ntrepreneurship
Pricing )trategy
/orldcall 7ultimedia @td has offered its Internet services on the following prices.
Sr. X &escription 7onthly Subscription 2Rs.3 Muarterly 2Rs.3 4alf Wearly 2Rs.3
Wearly 2Rs.3
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5 -E kbps E8++ EI** EH.8 E+8+
H 5H* kbps ,+++ *..8 *88+ *5++
I H8- kbps H++++ 5,8++ 5,+++ 5*+++
E I*E kbps H8+++ HHEH8 H5*8+ H+.++
8 85H kbps I8+++ IE5H8 IIH8+ I58++
- 5+HE kbps .++++ -*H8+ --8++ -I+++
Installation Charges
Cable 7odem ;rice Rs. E+++
Installation Dee Rs. I+++.
Advertisement Tools
R ;ress advertisements 2;rint 7edia3
R ;osters> brochures
R dvertising on /7@ C%A.
R In#house channel sponsorship
R Scroll works mobile advertising
R @it pole signs
R 6lock signs advertising
R 7agazines
R 6ill 6oards
)$OT analysis
)trengths
R %echnical ?$pertise.
R State of the art 4DC ;lant.
R Skilled work force 2%echnical, Sales, Collection3.
R Aalue added services 2A..S3
R dvertising on cable by the leading brands.
R In#house community channels.
R Computerized billing system.
R HE hour customer care.
R )OC by :ovt. of ;akistan.
$ea%nesses
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R @imited =rdu > Indian content.
R 7aintenance down time is high.
R Centralized customers care.
R Call Center inability to receive large number of calls.
R Insufficient space to accommodate staff at various area offices.
R @ack of coordination among departments and cross functional coordination.
Opportunities
R =navailability of a state of the art C%A ' IOC service in the market place.
R ?stablished brand name /orld call.
R c"uisition of distribution rights for various channels.
R dvertisement potential, as companies are moving towards cable advertising.
R =navailability of technical e$pertise in the market.
R IOC packages for the new segments.
R 6etter business solutions to corporate sector in IOC.
R ;romotion of /orld calls other products in the market.
R )ew 4ousing schemes.
R Increase in population
R :lobal ?vents like Dootball /orld cup, terrorist attacks etc.
Threats
R )ew entrants in the market.
R ;oor technical back#up to distributors.
R Small cable operators.
R ;oor :overnment control over the illegal cable operators.
R vailability of other IS;s with cheaper hourly rates and better speed.
R ?mergence of IS&) ' &S@ with better business solutions.
R &S@ rates going down fast with time.
;roduct @ife Cycle
/orld call #/orld call is at maturity level.
R Informing the technical staff to give a connection of internet on the address
provided by the caller.
R If there is any customer who wants to roll back 2want to discontinue3 from our
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services. /riting it and informing the technical staff.
Reference&Internet ##website www.magic.net.pk.
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