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Recognize L’Oreal from Organisational
Culture Perspective
Introduction
Organizational culture is a very
controversial concept. Some scholars believe that
culture consists
of shared values,
goals, practices, norms and beliefs that
characterize an organization, while others
against
it.
Generally,
organisational
culture
could
be
considered
as
a
“personality,
philosophy,
ideology or climate of an
organisation
”
(David and
Andrzej, 2010). On one side, it affects the task
issues
—
how
a
company,
institution
or
group
performs.
On
another
side,
it
also
influences
the
emotional
matters
—
how
workers
interact
with
colleagues,
customers
and
managers;
how
they
think and feel about
their organisation.
In
this
paper,
a
critical
appraisal
of
organisational
culture
is
conducted
at
the
beginning.
Then,
based
on
Edgar
Henry
Schein?s
Model
of
organisational
culture,
L?Oreal
Company
is
used
as
example to help the author
identify the main variables that
influence company?s culture
and shape
organisational behavior.
Organisational Culture Concepts
Definition and Debate
In early 1980s, since the
book of William (1981), Peters and Waterman
(1982), Deal and Kennedy
(1982),
as
well
as
Pascale
and
Anthony
(1982)
have
been
published,
organisational
culture
gradually
became
to
a
hot
topic.
These
publications
all
pointed
out
that
the
culture
exerts
significant impact on
organisation
s? behavior and
performance.
During the same period,
Japan?s
industrial
success
also
proved
this
viewpoint:
the
managers
in
company
might
achieve
better
organisational
effectiveness
via changing their companies? culture.
After
then,
not
only
managers
but
also
university
academics
began
to
throw
great
interests
in
organisational culture.
In order to achieve various researching purposes,
many scholars attempted
to refine the
concept, seeking and operationalize the culture
(Deal and Kennedy, 2000; Alvesson,
2001;
David
and
Andrzej,
2010).Edgar
Schein
(1984)
was
amongst
the
first
of
them,
and
his
theory of organisational
culture will be discussed in next part.
Since the rise of
organisational culture, the debate about it then
appeared. While some managerial
writers
asserted that there is connection between a strong
culture and organisational performance
(Furnham
and
Gunter,
1993),
others,
include
some
social
science
academics
maintained
that
organisational culture
is “a
term that is overused, over inclusive
,
but under-defined
” (David and
Andrzej, 2010). The debate between
these two camps could be simply summarized as
follow:
The
writers,
such
as
Peters
and
Waterman,
Deal
and
Kennedy,
Schein
and
so
forth,
claim
that
every organization has its single,
unique culture. It could be considered as a
variable, and can be
created
and
modified
by
senior
manager.
Through
creating
a
strong
culture,
employees
are
encouraged to feel worthwhile to work
(Smircich, 1993; Schein, 2004; Burman and Evans,
2008).
In contrast, the social science
scholars see
“culture as something that
organisation is”
(David and
Andrzej,
2010).It
is
produced
by
the
routine
interactions
between
organisation
members,
and
cannot be easily
quantified or measured by manager. An organisation
consists of many groups, and
each of
them has own different characteristic subcultures.
Employees in each group have various
motivations,
goals,
beliefs,
values
and
experience.
Thus,
culture,
as
a
useful
tool,
can
enable
managers to control and reduce these
differences of employs (Ray, 1986; Ackroyd and
Cowley,
1990; Gratton and Erikson;
2007).
Anyway, although the
voice from two camps is different, both them think
organisational culture is
important.
Because, it can shape the image of an
organisation; it guide employees behavior and
determine whether them collaborate or
compete with each other; and, to some extent, it
provides
the direction for
organisation.
Strong Culture and Weak Culture
Since
the
culture
play
significant
role
in
organisation,
it
is
useful
to
indentify
the
distinction
between strong
culture and weak culture.
O?Reilly
described that
the core values of
strong culture
could
widely
shared
among
employees
and
intensely
held
by
them.
In
contrast,
weak
cultures
made employees had
less agreement about the core value of their
organisation. However, although
some
companies with strong culture, such as Apple,
McDonald?s, perform brilliant in recent years,
it
still
cannot
prove
strong
culture
lead
a
better
perform
than
the
weak
one.
Because,
company
success, depends on
many factors other than culture.
Companies?
financial success
may cause its
culture become stronger,
but, a strong culture leads success only if it is
appropriate (Gordon and
DiTomaso,
1992). Not only that, strong culture also has some
disadvantages.
For example, it is
slow to develop and difficult to
change. And it makes merging with an organisation
become more
difficult.
Culture Types
Organisational
cultures
have
been
classified
by
several
methods.
The
first
one
should
be
mentioned
is
Charles
Handy?s
(1993)
classification.
It
developed
from
the
1972
work
of Roger
Harrison,
which
based
on
the
culture
framework.
Charles
describes
Harrison?s
four
types
of
culture:
?
Power Culture
. A single,
dominant person exerts his/her will; Few rules.
For example, a
small start-up
restaurant runs by its owner.
?
Role Culture.
Functional departments and specialties
exert their power; Focus on rules.
For
example, bureaucracies.
?
Task Culture.
Based on experts; Team work. For
example, Ted Bates.
?
Person
Culture
. Focus on individuals; Rare.
For example, small start-up law firms.
The
second
import
classification
from
Rob
Goffee
and
Gareth Jones
(2003).
They
divided
also
four types of culture as:
?
?
?
?
Communal Culture
(High
sociability/High solidarity).
Members think and act friendly
to each others; Adhere to company?s
value; High degree of cohesion.
Network
Culture
(High
sociability/Low
solidarity).
Members
act
friendly
but
think
different to each
other; High competitive environment.
Mercenary Culture
(Low
Sociability/High
solidarity).Members
think
alike
but
are
not
friendly to each others;
High competitive environment.
Fragment Culture
(Low
sociability/Low solidarity): Members think and act
differently
and unfriendly; Depend on
key individuals.
Actually,
one organisation often has different culture in
different sections. For example, at
L'Oré
al
cosmetic company,
product researching department has task culture
but marketing and accounting
departments
own
role
culture.
And,
these
cultures
are
not
fixed
forever,
they
would
change
as
company personal and
strategy changed.
Analysis Based
o
n Schein’s
Model
Edgar
Schein,
an
MIT
Sloan
School
of
Management
professor,
His
model
of
culture
now
is
widely
accepted
worldwide.
According
to
Schein,
culture
has
three
cognitive
levels
(Figure
1).
The
first level is the surface manifestation of
culture, also called ?observable culture?. It
included
the
most
visible
things
(e.g.
ceremonials,
courses,
heroes,
language,
legends,
mottoes,
norms,
sagas,
slogans,
stories,
symbols
and
others)
produced
by
a
culture.
The
second
one
is
organisational values. These are
accumulated beliefs about how do employees work
and how their
solve
problems.
Values
can
distinguish
on
organisation
from
another.
The
third
level
is
basic
assumption. Basic
assumptions are invisible understandings held by
members in an organisation,
concerning
“the
nature of
reality
and
the
organisation?s
relationship
to
its
environment”
(She
in,
1997). It
can be summarized in brief statements such as
quality, morality, stability, responsibility
and innovativeness.
Figure 1: Schein’s Level of Culture
(Schein, 2004)
Based
on
Schein?s
model,
the
author
tries
to
analyse
the
organisational
culture
of
L?Oreal
Company.
L?Oreal
is
the
world?s
largest
cosmetics
and
beauty
Group,
and
has
more
than
890
different companies around the world,
selling hair care, skin care, make-up, perfumes
and other
beauty products in over 130
countries. Walking into an
L
?Oreal?s
retail store, you
will notice that
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