Organization Culture Inventory

Part I: Overview of Organization:

The organization I chose to study is the Customization Services (CS) group of my employer, Oracle Inc. Oracle Inc. is one of the world's largest providers of business outsourcing solutions. Leveraging more than 55 years of experience, Oracle offers the widest range of HR, payroll, tax and benefits administration solutions from a single source. Oracle's easy-to-use solutions for employers provide superior value to companies of all types and sizes. Oracle is also a leading provider of integrated computing solutions to auto, truck, motorcycle, marine and recreational vehicle dealers throughout the world. The CS group is responsible for all custom programming for Oracle’s hosted HRizon, Enterprise HR and PCPW clients throughout all phases of client’ business relationship with Oracle (i.e., Implementation, Post Go-Live and Upgrading & Patching). The CS group works closely with Hosting Services, National Service Centers and other Oracle teams to fulfill client’ custom programming business needs. 1

Today, Oracle employs more than 42,000 associates globally providing business solutions for more than 570,000 companies of all sizes вЂ" small, mid-market and enterprise. Oracle is one of the world's largest providers of business outsourcing solutions, with operations in many countries. The key to the company’s growth and stability is solid strategy. By focusing on top-notch customer service, financial reliability, and a low-margin, high-volume model, Oracle has been able to stay true to its core goal: customer retention. Year after year, clients return to Oracle for the handling of the routine, but distracting, tasks of payroll, benefits administration, and human resources, as well as backroom operations for brokerages, auto dealers, and insurance companies. Year after year, Oracle happily records the revenue.

The company encounters very few surprises, as they write off expenses as soon as they possibly can and tie revenues and costs as closely as possible together. Steady profits are also possible because Oracle tries to offer every service on a “recurring revenue model.” Because of the company’s dogged pursuit of that model, 80 percent of its income arrives like clockwork every month. Most of that revenue is earned in the equivalent of fast-food margins ($1 to $2 per payroll check issued) but, like McDonald’s hamburgers, pays off handsomely over time if you can keep them coming back for billions more. In fact, the real key to Oracle’s financial success is its record of client retention. The average client provides a revenue stream for 10 to 12 years. Since 1995, Oracle has been improving its client retention rate by .5 percent per year, hiking revenue by 25 percent. 2

Part II: Current Culture:

The core values of Oracle are the foundation for all activities of the company. The ever-evolving culture is guided by the core values and motivated, results-oriented associates. A culture of ideas, questions, challenges, feedback and prudent risk-taking is nurtured without fear of occasional failure. Learning is a continuing process. On-the-job development of each associate is supplemented with suitable training; benefits of cross-training are recognized to provide additional opportunities and skills to Oracle associates. Each associate is responsible for participating in self-development and aid in the development of other associates. This continuing learning, cross-training, and development significantly contribute to better “career paths” for associates. Involved, knowledgeable, “hands-in” management is a desirable style. Each manager spends time regularly talking to and visiting clients, prospects, and other associates to get first-hand insights from them. Each associate is asked for more than a usual amount of conscientiousness and flexibility. Each associate is expected to do what it takes to suit client convenience because Oracle is a critical information lifeline to most of their clients. While doing so, we try to minimize avoidable inconveniences to their associates and their families.

Cultural Type:

According to my OCI Styles Circumplex (chart 1), Oracle’s primary style is power, in the 8 o’clock position (percentile score: 96) and the companies secondary style is oppositional, in the 9 o’clock position (percentile score: 81). Oracle’s weakest style is approval, in the 3 o’clock position (percentile score: 42).

Behaviors associated with the current Cultural Types:

A Power culture is descriptive of non-participative organizations structured on the basis of the authority inherent in members' positions. Members believe they will be rewarded for taking charge, controlling subordinates and, at the same time, being responsive to the demands of superiors. (Build up one's power base; Demand loyalty). Power-oriented organizations are less effective than their members might think; subordinates resist this type of control, hold back information, and reduce their contributions to the minimal acceptable level.

An Oppositional culture describes organizations in which confrontation and negativism are rewarded. Members gain status and influence by being critical and thus are reinforced to oppose the ideas of others. (Point out flaws; be hard to impress). While some questioning is functional, a highly oppositional culture can lead to unnecessary conflict, poor group problem solving, and “watered-down” solutions to problems. 3

The Power and Oppositional behavior styles are characteristic of Aggressive-Defensive cultures. The CS group consists largely of a very talented, motivated and dedicated group of employees. The employees of CS exhibit many characteristics of the Power and Oppositional styles. The CS Management team often puts its own interests above the employees, clients and business partners. In addition, the management team encourages employees to be forceful in client and business partner meetings to appear confident, superior and in control. The constant pressure from management for associates to sustain this behavior impacts employees health, morale, team work and client service. This behavior is exhibiting on a consistent basis in the bi-weekly Management Operational Process review meeting. The meeting attendees spend a lot of time voicing their opinions on operational procedures, often in a forceful nature without consideration of others. The tone of the meeting is competitive and confrontational, often times the tension in the room is so thick