case study
Cisco Systems Uses Its Culture for Competitive Advantage Case Study
1. What are the observable artifacts, espoused values, and basic assumptions associated with Cisco’s culture? Explain.
The above terms are also known as the three fundamental layers of organizational culture, each varying in outward visibility and resistance to change an each level influences another level. Observable artifacts are the most visible and also cosist of the physical manifestation of an organization’s culture (Kreitner and Kinicki,2010, pg.65). An example of this when the CEO John Chambers uses just three words to describe the benefits of the San Jose networking giant’s management system: “speed, skill, and flexibility.” This is relates a published list of values by Cisco. Another example is with Manny Rivelo, a senior vice president at Cisco Systems, that 70% of his compensation is based on the council’s ability to meet revenue targets and collaborate. As to espoused values, they represent the explicitly stated values and norms that are preferred by an organization. In Cisco’s case, it was Chambers’ idea originated by a loss of $2.2 billion loss in 2001, which involves grouping executives into cross-functional teams. This concept would lead to faster decision making. Basic assumptions are unobservable and represent the core of organizational culture. I feel that Rivelo’s one quote sums of the basic assumptin for Cisco, “I’m on a litany of them-three councils, maybe six boards, and five working groups”, suggests that being involved in numerous groups makes the company as a whole grow faster and be better ready for the economy.
2. Use the competing values framework to diagnose Cisco’s culture. To what extent does it possess characteristics associated with clan, adhocracy, market, and hierarchy cultures? Discuss.
I feel that Cisco Systems use a clan and adhocracy culture rather than a market and hierarchy. It really depends on the company and what it values as important because some
1. What are the observable artifacts, espoused values, and basic assumptions associated with Cisco’s culture? Explain.
The above terms are also known as the three fundamental layers of organizational culture, each varying in outward visibility and resistance to change an each level influences another level. Observable artifacts are the most visible and also cosist of the physical manifestation of an organization’s culture (Kreitner and Kinicki,2010, pg.65). An example of this when the CEO John Chambers uses just three words to describe the benefits of the San Jose networking giant’s management system: “speed, skill, and flexibility.” This is relates a published list of values by Cisco. Another example is with Manny Rivelo, a senior vice president at Cisco Systems, that 70% of his compensation is based on the council’s ability to meet revenue targets and collaborate. As to espoused values, they represent the explicitly stated values and norms that are preferred by an organization. In Cisco’s case, it was Chambers’ idea originated by a loss of $2.2 billion loss in 2001, which involves grouping executives into cross-functional teams. This concept would lead to faster decision making. Basic assumptions are unobservable and represent the core of organizational culture. I feel that Rivelo’s one quote sums of the basic assumptin for Cisco, “I’m on a litany of them-three councils, maybe six boards, and five working groups”, suggests that being involved in numerous groups makes the company as a whole grow faster and be better ready for the economy.
2. Use the competing values framework to diagnose Cisco’s culture. To what extent does it possess characteristics associated with clan, adhocracy, market, and hierarchy cultures? Discuss.
I feel that Cisco Systems use a clan and adhocracy culture rather than a market and hierarchy. It really depends on the company and what it values as important because some
References: "Cisco Systems - Questions & Contacts." Cisco Systems - Investor Relations. Web. 18 Nov. 2011. .