SECTION A [100 MARKS] Read the extract below and answer ALL the questions that follow. Nike Inc. Organizational Culture Characteristics: An Analysis Nike Inc.'s organizational culture supports business resilience and capability. Organizational culture is the combination of traditions, habits, values, and behavioural expectations among employees. Nike's workers are given a set of instructions, rules and expectations on how to do their jobs, with consideration for their relations with customers and other employees. This approach ensures that the company maintains its corporate culture, which partly contributes to the success of the business. As one of the giants in the global athletic shoe, apparel and equipment market, Nike Inc. continues its policies and strategies to promote an organizational culture that reinforces business resilience and competence. Nike has an organizational culture that encourages human resources to behave in ways that address business objectives. Training programs are designed to uphold such corporate culture that aligns with the Nike brand image for sports footwear, apparel and equipment. Nike's organizational culture is centred on creativity and innovation to provide products that suit current consumer preferences. The company is known for cutting-edge sports shoes, apparel and equipment. The main characteristics of Nike's corporate culture that sustain business and market competence are, Talented, Diverse and Inclusive Talented. Nike Inc. understands that talent and innovation go hand-in-hand. This feature of the organizational culture emphasizes the need to provide human resource support for product development and internal services in the corporation. As such, Nike uses training programs to maintain employee talent. The company also has coaching and mentoring programs. These approaches are based on the strategy that develops and enables leaders within the organization for Nike's global growth. The purpose of this characteristic of Nike's corporate culture is to sustain talent and infrastructure necessary for producing some of the world's most popular athletic shoes, equipment and apparel. Diverse. Diversity is continually developed in Nike's organizational culture. The company believes that this feature of the corporate culture leads to a dynamic workforce. Diversity promotes Nike's creativity, innovation, brand image and, consequently, competitive advantage. The company maintains diversity through HR programs, such as the Speak Up! program, which facilitates sharing of ideas among workers. This feature of the corporate culture maximizes Nike's product development cycles, especially in creating new designs for its sports shoes, apparel and equipment. Inclusive. Nike Inc. emphasizes inclusiveness in its organizational culture. The purpose of this cultural characteristic is to minimize barriers to employee performance. Nike's strategy uses inclusiveness as a tool for optimal performance, diversity and talent development. The company supports this feature of the corporate culture through a team-based approach to management. In addition, Nike employs a number of programs, such as Bias to Breakthrough (a program for removing barriers to creativity) and NCourage (a set of employee networks for cultural awareness and community building). This feature of the organizational culture minimizes problems in Nike's workforce and supports streamlining athletic shoes, apparel and equipment design and production processes. An advantage of Nike's organizational culture is its support for new product development. The characteristics of this culture ensure that the company continues its competitive advantage in the global sports shoes, equipment and apparel market. In addition, the diversity and inclusiveness features of Nike's corporate culture help develop employee morale. However, a disadvantage is the potential reduction in managerial efficiency. The organizational culture facilitates employee involvement, although it also increases the workload of Nike's managers. A suitable recommendation is for Nike to increase its investment in managerial personnel to balance the effects of its corporate culture. (Adapted from source: http://panmore.com/nike-inc-organizational-culture-characteristics-analysis)

QUESTION 1 (20 Marks) Nike is in the process of acquiring a new company that has an organisational culture different from theirs. As the HR manager at NIKE, explain to Nike's management the steps they should take to ensure that the organisational cultures of the two organisations are effectively integrated.

QUESTION 2 (20 Marks) Refer to the extract above and with the use of relevant examples, evaluate the observable and nonobservable elements of Nike's organisational culture and assess how Nike's organisational culture benefits the company.