Changing Culture at Pizza Hut and Yum! Brands, Inc.
The concept of corporate culture has captured the imagination of executives for years. For executives struggling to manage organizational change, understanding their organization’s culture has become paramount before undertaking such a change. They realize that significant strategic and structural realignment cannot occur if it is not supported by the organization’s norms and values. Organization cultures are created by leaders and, therefore, one of the most important functions of a leader is the creation, management, and sometimes the destruction of a culture. An organization’s culture reflects the values, beliefs and attitudes of its members. These values and beliefs foster norms that
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Its personnel planning system, shepherded by a set of organizational psychology Ph.D. consigliore in each of PepsiCo’s operating divisions, produced a stellar cast of professional managers. This system, layered on an existent Pizza Hut founding culture, was far from a natural fit for the quick-service restaurant industry. PepsiCo was what Kerr and Slocum would call a market culture with a performancebased reward system. PepsiCo’s very fast moving, individually focused, consumerpackaged goods, entrepreneurial culture would prove not a great fit for the relatively mature, slow-moving, team-oriented, quickservice restaurant business.
320 ORGANIZATIONAL DYNAMICS
The integration of these two companies, PepsiCo and Pizza Hut, resembled a failed vinaigrette: a large amount of oil slowly churning in one direction, overlaid by a thin layer of vinegar, a whirlwind of speed moving in the opposite direction. The vinegar represents the high-potential PepsiCo general managers rapidly moving among the many divisions and corporate offices of PepsiCo. Smart, ambitious, competitive and results-driven, they were attracted by PepsiCo’s ability to move them up fast and give them a breadth of management experience in different PepsiCo businesses. A rising star might spend two years in field marketing at Pepsi Cola North America, a year and a half in product marketing at Frito-Lay, an additional 18 months as a product brand manager there, two years at Pepsi Cola International, followed by a
Organizational culture is the “values and beliefs that people have about an organization and provides expectations to people about the appropriate way to behave” (Kinicki, 2013, slide 3). Corporates can change Changing organizational culture can be a process using one or more of the eleven strategies, (1) formal statements, (2) slogans & sayings, (3) stories, legend, & myths, (4) leader reactions crises, (5) role modeling, training, & coaching, (6) physical design, (7) rewards, titles, promotions, & bonuses, (8) organizational goals & performance criteria, (9) measurable & controllable activities, (10) organizational structure, and (11) organizational systems & procedures (Kinicki & Williams, 2013, p. 236-137). Like stated before organizations
Culture is an observable, powerful force in any organization. “Made up of its members’ shared values, beliefs, symbols, and behaviors, culture guides individual decisions and actions at the unconscious level. As a result, it can have a potent effect on a company’s well-being and success” (One Page, n.d.).
Organizational culture could almost be considered the roots of a company. The way a company’s employees think, the way the customers feel, and the company’s decisions are made are all based around the culture that the company has laid for itself. An employee’s values, thoughts, and actions should reflect those stated in the company’s mission. Southwest Airlines and American Airlines, while both attempting to create a culture that is comfortable and pleasing to their
About everyone at some age, at some point or another, and in some country has gotten a sample of American's symbol for fast food through the golden arches of McDonald's. This report will attempt to analyze the external and internal sectors that affect the company's success. The external analysis will provide opportunities and threats while the internal analysis will show indicators of strength and weakness. It will then follow up with critical issues, strategic alternatives, recommendations and implementation. The case studied is found in Appendix 2 of Mary Coulter's "Strategic Management in Action" book.
“Culture consists of the symbols, rituals, language, and social dramas that highlight organizational life, including myths, stories, and jargon. It includes the shared meanings associated with the symbols, rituals, and language. Culture combines the philosophy of the firm with beliefs, expectations, and values shared by members. It contains the stories and myths about the company's founder and its current leading figures. Organizational culture consists of a set of shared meanings and values held by a set of members in an organization that distinguish the organization from other organizations. An organization's culture determines how it perceives and reacts to the larger environment (Becker, 1982; Schein, 1996). Culture determines the nature
Corporate culture influences everyday employee actions – it’s how they interact with customers, each other, and make decisions. If the company culture does not align with the mission statement, it can create an identity crisis of sorts.
The organization culture as a leadership concept has been identified as one of the many components that leaders can use to grow a dynamic organization. Leadership in organizations starts the culture formation process by imposing their assumptions and expectations on their followers. Once culture is established and accepted, they become a strong leadership tool to communicate the leader 's beliefs and values to organizational members, and especially new comers. When leaders promote ethical culture, they become successful in maintaining organizational growth, the good services demanded by the society, the ability to address problems before they become disasters and consequently are competitive against rivals. The leader 's success will depend to a large extent, on his knowledge and understanding of the organizational culture. The leader who understands his organizational culture and takes it seriously is capable of predicting the outcome of his decisions in preventing any anticipated consequences. What then is organizational culture? The concept of organizational culture has been defined from many perspectives in the literature. There is no one single definition for organizational culture. The topic of organizational culture has been studied from many perspectives and disciplines, such as anthropology, sociology, organizational behavior, and organizational leadership to name a few. Deal defines organizational culture as values,
Before this chapter I thought organization’s culture was only internal and outside factors only affect the brand and sales of the company. But I have now learned a lot more about the
Within organizations, large and small, there exists a sense of identity among its members that separates it from other organizations. This sense of identity is known as organizational culture. All over, managers seek to influence and change this into something that can be beneficial for the organization. In his article, “The Six Levers for Managing Organizational Culture”, Professor David W. Young defines the different elements that can influence and change the culture within the organization and how the reader can use these “levers” to their advantage. While the author does present a decent explanation for changing the culture of an organization, he leaves many questions unanswered that leaves his argument incomplete.
This article appeared on Forbes.com and was written by Dr. Chris Cancialosi. Dr. Cancialosi is the founder of a consulting company that specializes in organizational culture. The article is short, however provides the reader with a very clear and useful way for a leader to conduct a litmus test of the organization’s culture by asking four questions. The questions are straightforward, however they help to explore some of the issues that Schein (2010) presents in his model about organizational culture such as espoused beliefs and values, basic assumptions, and organizational practices. The utility of these four questions is that they are not highly analytical or cumbersome to find the answers to. In fact, they are straightforward enough
In today’s dynamic business environment leadership must understand the value and importance of their organizations’ culture. While it may never be formally defined, leadership must have a vision of their intended culture and a plan for creating and maintaining it. This vision will serve as the potter’s clay that determines everything from the dress code to the organizational structure. This paper examines two methods organizations can choose to create and maintain a healthy culture.
Organizational culture is constantly changing, as the corporations remain competitive and relevant with the biggest and the brightest. It takes time; Enron was built over time with a plethora or extremely intelligent individuals, who fully supported the idea of elaborate scheme, also know as a “new business model” as Enron grew. When organizations merge, the role of the middle manager as an agent of change is to make sense of, unite, and transmit the organization 's culture. Leaders from the top down, who choose to ignore their own organizational culture or manipulate it in the wrong direction do so at the risk of the organizations success and success of their employees, stakeholders, and organizations that rely on them for support. Nonetheless, those who make the conscious decision to plan, create, implement, and nurture a specific corporate culture have the potential to reap significant benefits (Valentino, 2004).
Management researchers seem to agree that the things that companies do called "corporate culture" is an intangible concept and hence difficult to define. Among the attempts to define "corporate culture", the following definition is useful as a starting point:- "culture represents an interdependent set of values and ways of behaving that are common in a community and that tend to perpetuate themselves, sometimes over long periods of time" (Kotter and Heskett,1992,141) Peters and Watermann argue that changing a culture cannot be accomplished.
Corporate culture is the pattern of shared and stable beliefs and values that are developed within a company across time (Gordon and Ditomaso, 1992). This definition brings the time factor into the picture. In other words the corporate culture will become more ingrained and reinforced the longer an organization is in existence. Medical One, founded in 1992 had a distinct and powerful corporate culture of its own that its employees believed had brought about a high level of care to its patients. However cost overturns and bad planning had placed the company under a great deal of debt, leading to its acquisition by Health Plus, a much smaller but financially successful company operating throughout Arizona and New Mexico. The purpose of this paper is to discuss the importance of culture within an organization, culture types, culture components and how best to effect its change.
The culture of an organization is the set of values, beliefs, behaviors, customs, and attitudes that helps its members understand what the organization stands for, how it does things, and what it considers important"(Griffin, 49). In other words, "the way things work around here" (Dr. Williams). In order for any small business or large corporation to be successful, the employees must understand what is expected of them. While things might be slightly different in a large corporation versus a small "mom and pop shop", the goal of both is the same. MAKE THE BUSINESS MONEY. The topic of my paper will be on makes a good corporate culture.