I decided for this week’s assignment on culture that it
might be fun to look a little closer to home. Austin’s unique local culture is
something that gets talked about a lot: “Keep Austin Weird” is a favorite,
often used motto. I wondered how the unique Austin culture might be reflected
in local companies and turned to an interview conducted by Texas CEO Magazine
to see what one local entrepreneur had to say.
Bazaarvoice is a fast growing Software as a Service startup
company in Austin. They help companies such as Best Buy and Macy’s to
positively impact sales by assisting them in creating and managing programs for
online customer reviews (Habel, 2010). It has been voted as one of the best
places to work in Austin since 2007, and according to an interview by Texas CEO
Magazine, the founder and CEO of Bazaarvoice, Brett Hurt, attributes their
success to the organization’s culture (Habel, 2010).
Hurt didn’t reveal too many details about what the
Bazaarvoice culture looked like, but he did share an element that he considered
important in building the company’s culture (Habel, 2010). According to Hurt, establishing the culture
at Bazaarvoice begins with investing heavily in making sure that they hire the
right person for the job (Habel, 2010). The
hiring process includes giving all potential employees a test, which requires
12 to 16 hours of studying on the part of the candidates. If candidates make it
through the test, it’s as though they’ve been through a rite of passage and
they are included “in the club” (Habel, 2010).
This hiring process creates a strong organizational culture,
as described by Sorensen (2009) and is a necessary step for Bazaarvoice because,
as Hurt states, “Having high retention is incredibly important for culture”
(Habel, 2010). By keeping long-term employees, the company is ensuring that
their culture will be maintained (Sorensen, 2009). Interestingly, this seems to
be an approach similar to the “socialization” approached used by P&G to
onboard new hires (Denison & Mishra, 1995, p. 212).
One of the few specific aspects of the Bazaarvoice culture
that Hurt does discuss is the company’s trust based vacation policy (Habel,
2010). The company doesn’t issue any formal vacation policy – no formal accrual
or tracking; instead the company relies on the employees to make the right
decisions about their time off. Hurt argued that this might be “one of [their]
most radical cultural policies” (Habel, 2010). This is reminiscent of how
People Express sought to maintain a “highly egalitarian organizational culture”
through “innovative human resource practices” (Denison & Mishra, 1995, p.
210).
It may not be possible to determine whether or not the unique
Austin culture influenced the practices adopted by Bazaarvoice. It is
interesting, though, to find that the CEO views the company’s culture to be a
critical element in the success the company has achieved. Based on the brief
interview conducted by Texas CEO Magazine, it appears that Bazaarvoice has a
strong culture with high levels of involvement (Denison & Mishra,
1995). Although this is currently
serving the organization well, will it ultimately lead, as Denison and Mishra
(1995) suggest, to their inability to adapt in the future?
References
Denison, D. R. & Mishra, A. K.
(1995). Toward a theory of organizational culture and effectiveness. Organization
Science, 6, 204-223
Habel, S. (2010, May). The culture cure – Brett Hurt, CEO,
Bazaarvoice. Texas CEO Magazine.
Retrieved from http://texasceomagazine.com/features/brett-hurt-from-austins-bazaarvoice-talks-about-the-importance-of-culture/
Sorenson, J. (2009). Note on
organizational culture. Harvard Business School,
1-6.
This comment has been removed by the author.
ReplyDeleteVery interesting post!
ReplyDeleteSorensen (2009) argues that strong corporate cultures can be developed by selection and socialization. It appears that Mr. Hurt is developing his company's culture though the former.
Though I was initially skeptical at the mention of Bazaarvoice being voted as one of the best places to work in Austin (skeptical as far as the method the survey was taken – our 540 instructor wouldn’t have it any other way, I imagine), I read further and saw other accolades including the Ernst & Young award; it sounds like the culture is being cast into the culture of the city. Weird? Not so much, at least to me. Quirky, smart and sustainable are my adjectives for Bazaarvoice’s process.
I also liked how you brought in People’s Express/Texas Air for their daring experiment (Denison & Mishra , 1995)
In addition, I have been working on a content analysis paper on how companies and clearinghouses for consumer product review design and package their reviews and I found this article informative enough to consider it as reference.
Thanks for sharing.
Denison, D. R. & Mishra, A. K. (1995). Toward a theory of organizational culture and effectiveness. Organization Science, 6, 204-223
Habel, S. (2010, May). The culture cure – Brett Hurt, CEO, Bazaarvoice. Texas CEO Magazine. Retrieved from http://texasceomagazine.com/features/brett-hurt-from-austins-bazaarvoice-talks-about-the-importance-of-culture/
Sorenson, J. (2009). Note on organizational culture. Harvard Business School, 1-6.
Hi Marissa,
DeleteGreat post! I found this very interesting and also wondered about a couple of things Courtney mentioned - the vacation policy and the test.
So, at first I thought, "Wow! How cool is that??" Then I thought about the pereception that could foster. Would an employee be judged by his/her supervisor for taking "too many" days off? Would others become extremely competitive and never take any time off in hopes of appearing to be the hardest working? Would that create conflict and division within the culture?
The test is something else I'm curious about. Is it multiple choice, verbal, essay or all of the above? Is it graded, and do the candidates get to see their scores?
It sounds like a Bazzarvoice has a cutting-edge culture and is a fun place to work.
Hi Al,
DeleteYou’re right! They didn’t exactly clarify which data source they were relying on for those accolades. I think your skepticism is warranted (and 540 would be proud)!
I agree, at least from what this article shows, that Hurt is relying heavily on selection. I suspect that this may be due to Bazaarvoice still being a relatively new organization. It will be interesting to see if this process changes down the line.
Hi Lisa,
Might first thoughts about the vacation policy were the same as yours – except maybe to add in a little bit of envy on my part. It doesn’t sound like Bazaarvoice would admit this, but I wonder if deep down they’re counting on the types of things you mention to constrain employees. Having no formal vacation policy sounds like such a free wheeling concept, but in the end the peer pressure and competition might keep employees from using less vacation than they otherwise would with a formal policy. Very interesting.
Marissa, it seems many students are noting the different layers of culture present in an organization (local, organizational, positional, etc). I am interested to hear more about the test you mention. I wonder if it selects the employees who are good at studying or those who have a natural tendency toward the desired culture. Or, is the test itself a bonding mechanism, much like fraternity hazing? I also wonder if the vacation policy could backfire. If employees have no formal vacation time, it could happen that employees would not feel comfortable taking vacation, especially if there is competition for promotions. Do you see this policy working in your own organizations? What about everyone else?
ReplyDeleteHi Courtney,
DeleteThe interview didn’t mention much about the test itself, only that it required a lot of studying. I definitely got the feeling from the article that it created a bond between those employees who “passed the test” and got hired.
As for how the company uses the test to determine who to hire, I wonder if could serve dual purposes. Perhaps there are roles within the organization that require studious skills, while others require creativity or problem solving skills. Maybe Bazaarvoice evaluates the overall approach candidates use during the test to determine whether or not they’ll be a good fit.
The test Hurt mentions reminds me of a "test" Zappos does on all of their potential new employees. The driver that picks up the candidate from the airport is actually not a random driver at all; rather, he's an employee who is looking specifically for how the candidate treats somebody like a driver. If the candidate was rude, it's noted. If the candidate was polite, it too is noted. Do you think this trend of "testing" potential new hires is the way the hiring process is going to stick around?
ReplyDelete