Creating and Strengthening Organizational Culture: the Experience of Digi Malaysia

Topics: Geert Hofstede, Organizational culture, Cross-cultural communication Pages: 10 (2998 words) Published: October 29, 2012
Creating and Strengthening organizational culture: The experience of Digi Malaysia


Power Distance
Individualism versus collectivism
Masculinity versus feminity
Uncertainty Avoidance

Culture is a global phenomenon that derived from social, economic, legal, political and religious norms, values and traditions of the society. Culture shapes the behavior of individuals to act accordingly in different situations faced by the individuals in all spheres of life. An organizational culture is commonly defined as a set of beliefs, values and assumptions that are shared by members of an organization (Schein, 1985). In both personal and organizational level, it is believed that organizational culture provides a competitive advantage and has a considerable effect in developing employee–manager relationship. The influence of organizational culture on organizational performance has been proven in many studies. For example, a number of researchers (e.g., Paparone, 2003; Smith and Shilbury, 2004; Ezirim et al., 2010) have addressed the significant roles of creating, managing, and changing organizational culture for the purpose of increasing overall organizational effectiveness and performance.

Hence, creating and strengthening of organization culture of a company is a very important process in ensuring company continual success. In this study, the organizational culture of Digi Malaysia was studied using Hofstede’s organizational dimensions. Digi Malaysia is third largest phone service provider in Malaysia after Maxis and Celcom. Being one of three mobile telecommunications operators in Malaysia, DiGi is often regarded as the smallest in terms of market capitalisation and subscriber base. Despite its size, DiGi has certainly made itself heard through the creative ways it has found to reinforce the brand's image, and product and service offerings that constantly challenge the market share of its two bigger rivals.

DiGi has stamped its mark with many achievements over the years. It was the first in Malaysia to deploy a fully digital cellular network in 1995, first in prepaid service in 1998, first in automatic international roaming and GPRS in 2002, first in multimedia messaging service in 2003, first for high speed data network in 2004, first in postpaid with zero monthly fees in 2005, first for 1-Low-Flat-Rate for any network, anytime , anywhere in 2006, first in mobile podcasting in 2007, first in mobile instant messaging in 2007, first in personal accident coverage via your mobile phone in 2008, first for unlimited mobile music portal in 2009, first in shared mobile network infrastructure in 2010 and first to introduce a family-friendly broadband plan through partnership with McAfee recently. (Malaysia Productivity Corporation 2011). MEASURING ORGANIZATIONAL CULTURE

Over the last decade, the issue concerning the approach to measure culture and its impact have been significantly debated. Several studies by Hofstede (1980/1998/2001) measured organizational culture and develop new theory. Whereas other study focus on the theory and aim to search empirical validation (House et al. 2004). Although there were many dimensions of organizational culture have been studied, Hofstede (1980) four culture dimensions is recognized as the most well known and widely applied in management and organization research (e.g., Van Everdingen and Waarts 2003; Waarts and and Everdingen 2005; Catana and Catana 2010). For instance, in a recent study among Romanian finance industry, Catana and Catana (2010) discovered that the industry has high value and practice for two types of culture; gender egalitarianism (masculinity) and collectivism (opposition to individualism). Therefore, Hofstede’s four “dimensions” of culture applied in this study namely:-

1) POWER DISTANCE - The extent to which the less powerful members of an organization accept that...
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