Английский язык. Практический курс для решения бизнес-задач

In many successful companies, corporate leaders serve as role models, set the standards for performance, motivate employees, make the company special and are a symbol for the external environment. It was Edwin Land, the founder of Polaroid, who created a favorable organizational environment for R&D and innovation. It was Jim Treybig of Tandem in the Silicon Valley who emphasized that every person is a human being and deserves to be treated accordingly. It was William Proctor of Proctor&Gamble who ran the company with the slogan, «Do what is right». It was Theodore Vail of AT&T who addressed the needs of customers by focusing on service.

In a free-market economy businesses cannot exist without the goodwill of their customers. Yet in certain companies customers are seen as merely interrupting work. Clearly, the long-term success of such a company may be in jeopardy. By contrast, in companies with a strong customer-oriented culture, employees in all departments (not only those that are specially set up to handle customer complaints) listen carefully to the needs of the customers. After all, they are the reasons the company exists. In such companies, measurable customer-satisfaction objectives are set and frequently used for evaluating customer reactions. This may be done through formal surveys or, at times, top managers may contact key customers personally. When Ross Perot, the Texas billionaire who sold his computer company to General Motors, was on the GM board, he answered all customer complaints about cars, rather than sending form letters.

Focus on quality is one of the most important aspects of corporate culture. Too often we hear that what really counts is the bottom line. Of course, businesses can only exist in the long run by generating profit. Unfortunately, profit orientation too often means profit in the short run with little consideration for the long-term health of the enterprise. In the past some U.S. automakers neglected quality because it appeared cheaper to pay for warranty claims than to build quality into the products. The loss of future sales was often not recognized as a cost. In contrast, many Japanese car manufacturers have made quality the basis for long-term profit.

People respond to those things for which they get rewarded. Few rewards are usually given for quality. In a typical company, CEOs get rewarded for profit improvement – seldom for superior products and services. But quality pays in the long run as Japanese car, camera and electronics manufacturers have shown. In Japan, responsibility for quality and productivity is placed at the top. This, in turn, creates a culture that says: Our organization is fanatical about both productivity and quality.

Managers in effective organizations are characterized by action. This can only be done by top management’s commitment to breaking down rigid organization structures. It may begin with some symbolic actions such as eliminating reserved parking spaces for top-echelon managers. After all, is it not equally important that the first-line supervisor be on time to start the assembly line rather than circling the parking lot to find a space to park? Companies with a strong people-oriented culture believe that the dignity of all people is paramount. Whether a manager or a worker, all contribute toward a common goal; all have basic needs for being appreciated as persons; all have the desire to feel competent in carrying out their task, whatever it is.

While a clear mission statement and goals have the potential to motivate organizational members to excellence, the means to achieve these ends must never be compromised. Actions and behavior must be guided by adherence to company policy, must never violate any laws, and above all, must not be unethical. In ethical companies, integrity is the norm, not the exception. Ethics may be institutionalized through 1) company policy or a code of ethics, 2) a formally appointed ethics committee, and 3) the teaching of ethics in management development programs.

Thus, the intangible factor of the corporate culture can make a substantial contribution to strengthening the competitive position of a company, and improving the tangible indicator of profit that it is able to generate.

Source: Industrial Management, September-October 1989, pp. 28—32.

Essential Vocabulary

1. сorporate culture – корпоративная культура

2. focus n – фокус, сосредоточие, акцент

focus v – фокусироваться, сосредотачиваться, концентрироваться

3. stakeholder n – заинтересованное лицо

4. customer n – клиент

5. supplier n – поставщик

supply n, часто в plural – предложение; запас, припас; снабжение, поставка

supply v – поставлять, снабжать, доставлять, давать

6. competitor n – конкурент

competition n – конкуренция

competitiveness n – конкурентоспособность

compete v – конкурировать

competitive a – конкурентоспособный