What is meant by organizational culture

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Reference no: EM133044706

Question 1

ABC Hotel is a four-star boutique hotel best known for its strong corporate culture. Founder and CEO Adams believes that the hotel's culture underlies the continued profitability of its business. The core values that Adams advocates and practices earnestly are: friendship, mutual respect passion, and work-life harmony. 

The assumption of its core values is that a work culture that actively fosters employee well-being, happiness and commitment will result in a highly motivated workforce and in turn customer satisfaction. Furthermore, while employees' technical / professional skill is still important, it is the way how management treats subordinates and how peers treat each other that matter in the end. 

Top management, says Adams, should not be just chasing profits. They must also help employees to chase their passion. Adams is horrified to learn that Alibaba's founder Jack Ma endorses a 996 work culture (where employees are expected to work from 9am to 9pm, 6 days a week) and describes working overtime as a "huge blessing". Jack also asserts that employees (slackers) who do not subscribe to this philosophy are unlikely to taste the happiness and rewards of hard work. 

While the line between work and non-work hours has increasingly blurred in today's world of work, Adams does not want to see his employees work horrendously long hours, be unhappy, and end up in a hospital's intensive care unit. After all, how much time one spends at work cannot be the sole/valid indicator of a person's performance, output, nor his passion or commitment.

Once the "right" values are set, the next step is to get the right people. In ABC Hotel, every applicant will undergo two rounds of interview. The first interview focuses on person-job fit (ascertaining the fit between applicant's experience, knowledge and skills in relation to the required roles and responsibilities). The second focuses on person- organization fit. Every applicant must go through a thorough group interview where the potential boss, peers and subordinates will ask questions. The boss will also highlight both positive and negative aspects of the job as well as career prospects. Thereafter, they will give their feedback on the candidate's suitability. Given the importance of culture fit in ABC Hotel, it is not unusual that a candidate with stronger technical/ professional skills but poor person-organization fit gets rejected. 

All newcomers have to go through a carefully planned 2-day induction program, the purpose of which is to impress and reinforce the company's core values. Each of them are also assigned a peer buddy to guide them along during the three-month probation period. 

(a)  Explain what is meant by organizational culture and discuss how organizational culture in ABC Hotel is created, manifested and sustained.

(b)  ABC Hotel seems to focus on realistic job previews, onboarding, and psychological contracts. Describe each of these THREE (3) concepts.

(c)  McClelland has proposed THREE (3) types of needs: need for achievement, need for affiliation, and need for power. Discuss which need(s) should ABC Hotel's human resource policies and practices aim to appeal to its employees?

Reference no: EM133044706

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