Cisco's Organization Culture|Human Resource|Organization Behavior|Case Study|Case Studies

Cisco's Organization Culture

            
 
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Case Details:

Case Code : HROB069
Case Length : 12 Pages
Period : 1984-2005
Pub Date : 2005
Teaching Note : Available
Organization : Cisco
Industry : Information Technology
Countries : USA

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This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.



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Excerpts

What Drives Cisco's Culture?

Customers First

Cisco's success has been attributed to its relationship with its customers. Cisco professed a 'worship of customers', which was a part of the company's culture right from its inception. "This is a culture where the customer comes first. If the customer has a problem, we drop everything," said Pete Solvik (Solvik), Senior Vice President and Chief Information Officer (CIO), Cisco. Cisco viewed the assessment of customer satisfaction as a continuous process. One of the elements of this assessment was getting regular customer feedback, which helped Cisco employees to be proactive in identifying problem areas, rather than waiting for an annual customer satisfaction survey. Cisco's field teams designed the questionnaires that were used to assess customer satisfaction...

Human Resource and Organization Behavior | Case Study in Management, Operations, Strategies, Human Resource and Organization Behavior, Case Studies

The Work Culture

The organizational structure of Cisco fostered a spirit of employee involvement. "Very often it's most efficient to just work with the person involved, without the formality of passing through every layer of management. But that requires a level of trust that not all organizations have," mentioned Solvik. If a Cisco employee wanted the top management support for an innovative idea, he had to discuss the idea with an employee decision-making team and get its assent. If the decision-making team accepted the idea, the top management gave the green signal. "They (the decision-making teams) are empowered to make that decision because we put the authority, the responsibility, and the accountability at the same layer...

Recruitment at Cisco

Cisco's recruitment practices reflected the company culture. Cisco's recruiting team identified candidates whom they felt the company 'should hire' and then designed its hiring processes to attract them to the company. In the late 1990s, the company was hiring at a rate which averaged 1000 new employees every month. For recruiting candidates who fit into the culture of Cisco, a selection criterion was developed which targeted candidates who were frugal, enthusiastic about the future of the Internet, and were not obsessed with status - all hallmarks of the Cisco culture...

'Built To Last'

According to some analysts, Cisco faced the risk of diluting its culture due to the influences of new recruits who brought in behaviors from past job experiences. "We're focusing on what it will take to communicate the culture and preserve it. That's another learning experience: Culture is not automatic...

Exhibits

Exhibit I: Stock Market Movement for Cisco Between 1990 and 2005 at Nasdaq
Exhibit II: Characteristics of Strategic Alliances at Cisco
Exhibit III: Employee Comments on Cisco Culture
Exhibit IV: Net Sales and Net Income of Cisco Between 1995 And 2004


 

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