Reference no: EM132926866

ABC Company is a software developer founded by Mr Kato, a computer science graduate from the University of Tokyo, in 2013. The company has grown rapidly since the launch of a popular web analytical engine. Although ABC Company is in the technology business, Mr Kato believes people are a greater challenge than computers. The company started off with a handful of employees. Today, the company has around 50 employees. All employees at ABC Company are "handpicked" by Mr Kato and his two close associates. They look for people who are inspired not by money, but love the work they do. Software developers often work long hours coding and resolving bugs. Without a passion for their work and grit, they will not be able to achieve excellence, and constantly think of the "the next big thing." Recognising the role people play to his business, Mr Kato goes all out to make his company a great place to work. His strategy is simple: work-life integration. This is a work value that he personally holds dearly. His office is decorated with no less than 20 photos of Mr Kato and his family enjoying their family time. He also advocates a familial culture in his company. There is no formal organisation chart, job title or dress code. The work environment is comfortable and supportive at ABC Company. Employees can even bring their pets to work. The company provides catered free lunch every Friday. To help everybody stay fit and build a spirit of teamwork, there is a table tennis and snooker corner within the company's compound. Every year in December, the company takes all its employees on an all-expenses-paid four day trip to one of the nearby countries. Mr Kato does not see this as lavish or wasteful because it is not money that keeps employees going at ABC Company. It is all about mutual trust, respect and work-life integration. While the company seem to be focussing on simple things, this work culture is very rare in Japan and may explain why employee turnover in ABC Company is well below industry average.

(a) Illustrate the THREE (3) layers of organizational culture at ABC Company. ABC Company has a strong culture with Mr Kato as the helmsman.

(b) Give an example of how the organisation culture in ABC Company achieves the three functions below.

(i) Give members an organizational identity

(ii) Facilitate collective commitment

(iii) Promote social system stability

(c) Referencing the Competing Values Framework, discussthe characteristics of a clan culture, and illustrate THREE (3) examples that point to the possibility that Mr Kato is practising clan culture.

(d) As ABC Company grows, the present clan culture may not be ideal for the company to survive in the highly competitive software industry. Assess the limitation(s) of having a clan culture in coping with a competitive business environment, and describe features of another culture within the Competing Value Framework that may be useful for ABC Company