what is the organizational culture of jpi and how has it changed over time?

Purchasing and Supply Chain Management
6th Edition
ISBN:9781285869681
Author:Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson
Publisher:Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson
ChapterC: Cases
Section: Chapter Questions
Problem 1.1A: Avion, Inc. Susan Dey and Bill Mifflin, procurement managers at Avion, Inc., sat across from each...
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what is the organizational culture of jpi and how has it changed over time?
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Leadership, Culture and Change: The Case of Jerusalem Paints Industry
Jerusalem Paints Industry (JPI) was established in Jordan in 1994, starting with two lines of products: a water-born interior walls putty, and a cement-based tile adhesive. Production size was modest, with 200
units being produced. JPI's products were selling in Iraq, Syria, Lebanon, Saudi Arabia, UAE, Qatar, Palestine, Egypt and Libya. The company's vision is to be an industry leader in producing paints for the region
of exceptional quality at a price that is fair and competitive. The CEO and founder exerted considerable influence in articulating a set of workplace behaviors and expectations based on his own personal values
and beliefs. These, on the one hand, rested on a traditional religious and spiritual value system found in Islamic teachings; and, on the other hand, on work values associated with ideas of cooperation, credibility
and honesty. The Islamic underpinnings derive from four main concepts comprising:
Amanah: This means in Arabic to be obligated to uphold one's trusts and duties, a type of moral responsibility for fulfilling one's obligations.
Taqwa: To engage and act in work as if your God is always watching over you, to self-monitor behaviours, to ensure honesty and at all times to fear God.
Shura: To always seek out other opinions, views and advice (consultation) before making a final decision.
Itqan: To continuously search for self-improvement and perfection in the conscientious development of oneself.
In establishing JPI, the founder and CEO was keen to instil these values in the core of the company's operating philosophy and to ensure that employees fully align with these attitudes in their approach to
work. He wanted all employees to embrace these values in their workplace behaviors and continually reinforced these through his own actions and close interaction with staff. In the transition from a family-type
business to a much bigger and more diverse enterprise, a number of new employees were recruited, who brought with them a new set of values and beliefs that were not tied to the Islamic approach established by
the founding CEO. In addition, an unplanned contingency arose, in which the founding CEO had to be away for an unspecified period. In dealing with this unforeseen event, they appointed a new CEO to manage
these developments. The change in executive leadership arose in the context of competitive market change and growth in the size of the company. This combination of an expansion in employee numbers and
appointment of new CEO proved disruptive, for example the culture of the company diverged following a change of leadership which was reinforced through the intake of new recruits who had not been schooled
in the old ways of doing things. The adage that culture is the way things are done around here' came to the fore in a mismatch and misalignment of the values and beliefs of longstanding and established
employees and those who had been more recently appointed and the new operating style of the replacement (temporary) CEO.
In seeking to tackle the issue, a consultant was appointed who clarified the nature of the problem, highlighting how established staff and middle managers were still practicing the values embedded in the
JPI culture by the founding CEO: for example a middle manager said, 'I feel that there is a spiritual energy that drives me to work better when I practice amanah, taqwa and itqan values and I make sure that I
work here in this company as if it is my own business.' New recruits, however, took a different view and, although they demonstrated the same level of commitment to their work, the consultant reported that the
overall drive in doing the job was less. This misalignment of the values and beliefs instilled by the founder/CEO and the new CEO was also being seen in the movement away from cooperative and consultative
teamwork towards a more individual-based orientation to work.
Although there has been a cultural shift, interestingly the dominant value system remains that of the middle managers and staff who have been working for JPI for more than 15 years. These people have
been highly influenced by the founder's personal values, and they are still practicing what they have been taught Although these longstanding employees have tried to introduce the traditional JPI values to the
new staff, without leadership reinforcement and a clear signal from the CEO, a mismatch was likely to continue and further disrupt developments and, in particular, the aim of developing the skills and
competencies of all staff.
9
O
A
LUI
2
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Transcribed Image Text:Remaining Time: 1 hour, 58 minutes, 23 seconds. Question Completion Status: 12345 7 8 10 11 12 13 14 15 16 19 20 21 22 23 24 25 26 27 17 18 Leadership, Culture and Change: The Case of Jerusalem Paints Industry Jerusalem Paints Industry (JPI) was established in Jordan in 1994, starting with two lines of products: a water-born interior walls putty, and a cement-based tile adhesive. Production size was modest, with 200 units being produced. JPI's products were selling in Iraq, Syria, Lebanon, Saudi Arabia, UAE, Qatar, Palestine, Egypt and Libya. The company's vision is to be an industry leader in producing paints for the region of exceptional quality at a price that is fair and competitive. The CEO and founder exerted considerable influence in articulating a set of workplace behaviors and expectations based on his own personal values and beliefs. These, on the one hand, rested on a traditional religious and spiritual value system found in Islamic teachings; and, on the other hand, on work values associated with ideas of cooperation, credibility and honesty. The Islamic underpinnings derive from four main concepts comprising: Amanah: This means in Arabic to be obligated to uphold one's trusts and duties, a type of moral responsibility for fulfilling one's obligations. Taqwa: To engage and act in work as if your God is always watching over you, to self-monitor behaviours, to ensure honesty and at all times to fear God. Shura: To always seek out other opinions, views and advice (consultation) before making a final decision. Itqan: To continuously search for self-improvement and perfection in the conscientious development of oneself. In establishing JPI, the founder and CEO was keen to instil these values in the core of the company's operating philosophy and to ensure that employees fully align with these attitudes in their approach to work. He wanted all employees to embrace these values in their workplace behaviors and continually reinforced these through his own actions and close interaction with staff. In the transition from a family-type business to a much bigger and more diverse enterprise, a number of new employees were recruited, who brought with them a new set of values and beliefs that were not tied to the Islamic approach established by the founding CEO. In addition, an unplanned contingency arose, in which the founding CEO had to be away for an unspecified period. In dealing with this unforeseen event, they appointed a new CEO to manage these developments. The change in executive leadership arose in the context of competitive market change and growth in the size of the company. This combination of an expansion in employee numbers and appointment of new CEO proved disruptive, for example the culture of the company diverged following a change of leadership which was reinforced through the intake of new recruits who had not been schooled in the old ways of doing things. The adage that culture is the way things are done around here' came to the fore in a mismatch and misalignment of the values and beliefs of longstanding and established employees and those who had been more recently appointed and the new operating style of the replacement (temporary) CEO. In seeking to tackle the issue, a consultant was appointed who clarified the nature of the problem, highlighting how established staff and middle managers were still practicing the values embedded in the JPI culture by the founding CEO: for example a middle manager said, 'I feel that there is a spiritual energy that drives me to work better when I practice amanah, taqwa and itqan values and I make sure that I work here in this company as if it is my own business.' New recruits, however, took a different view and, although they demonstrated the same level of commitment to their work, the consultant reported that the overall drive in doing the job was less. This misalignment of the values and beliefs instilled by the founder/CEO and the new CEO was also being seen in the movement away from cooperative and consultative teamwork towards a more individual-based orientation to work. Although there has been a cultural shift, interestingly the dominant value system remains that of the middle managers and staff who have been working for JPI for more than 15 years. These people have been highly influenced by the founder's personal values, and they are still practicing what they have been taught Although these longstanding employees have tried to introduce the traditional JPI values to the new staff, without leadership reinforcement and a clear signal from the CEO, a mismatch was likely to continue and further disrupt developments and, in particular, the aim of developing the skills and competencies of all staff. 9 O A LUI 2 K 1
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