Lal Bahadur Shastri Institute of Management, Delhi

STUDY OF ORGANIZATIONAL BEHAVIOUR OF BOSCH LTD., SKF LTD & AMW LTD.

Acknowledgement
We feel immensely pleased in presenting this report as a part of our project in Organizational Behavior on Study of Organization Culture in an Industry. We would like to extend our sincere thanks to Prof. Shivdasini Singh Amin for her unconditional support towards completion of this project. The study of the culture in an IT Organization really was a great learning experience.

INTRODUCTION
Organizational culture has been linked to economic performance and organization viability/success (Denison & Mishra, 1995; Han, Kim & Srivastava, 1998; Higgins, 1995; Smith, 1998). For example, organizations dedicated to continuous improvement, with visionary leaders who 'walk their talk' and focus on a set of core values, have been shown to be more financially successful in the long-term (cf. Collins & Porras, 1998; Kotter & Heskett, 1992). Organizational culture has also been shown to be important for successful new product/process innovation and organizational change (Bahrami, 1992; Claver et al., 1998; Smith, 1998; Umiker, 1999). People are constantly surrounded by culture. It forms the background (often invisible) of our work-lives, coloring everything in an organization. Organizational culture also provides a powerful mechanism for controlling behavior by influencing how we attach meaning to our world and how we interpret events. Organizational culture is the collection of norms, values, beliefs, expectations, assumptions, and philosophy of the people within it. Different organizations, and different parts of the same organization, use diverse jargon, participate in various rituals, and use a number of different artifacts. For example, merchant bankers, as compared to medical practitioners or school teachers for example, would have a jargon all their own and would use certain analysis tools and techniques vastly dissimilar to the language and tools used by doctors or teachers. Even within the same organization, there would be distinct sub-cultures. We would expect people in and engineering or IT department to have a distinctly different culture from those in the accounting or HR areas.

CULTURE: CONCEPTUAL FRAMEWORK Culture has been defined differently by various scholars. According to Kroeber and Kluckholn (1952) culture consists of patterns, explicit and implicit, of and for behavior acquired and transmitted by symbols, constituting the distinctive achievement of human groups, including their embodiment in artifacts. The essential core of culture consists of traditional (i.e., historically derived and selected) ideas and especially their attached values. Culture systems may, on the one hand, be considered as products of action, and as conditioning elements of future action. In the words of Hofstede (1980) culture is, The collective programming of the mind which distinguishes the members of one human group from another . The interactive aggregate of common characteristics that influences a human groups response to its environment. Anthropologist Symington (1983) has defined culture as, that complex whole which includes knowledge, belief, art, law, morals, customs and capabilities and habits acquired by a man as a member of society.

The Indian perspective of culture given by Sinha (2000) suggests that Culture consists of totality of assumptions, beliefs, values, social systems and institutions, physical artifacts and behaviour of people, reflecting their desire to maintain continuity as well as to adapt to external demands. What these descriptions suggest is a set of value systems that are equally shared by all the members. They take a long time to evolve and are sustained over a long period of time. They form a common core which binds people together. work culture, on the other hand, is a totality of various levels of interaction among organizational factors (boundaries, goals, objectives, technology, managerial practices, material and human resources, and the constraints) and organismic factor (skills, knowledge, needs, and expectations) interact among themselves at various levels. Over a period of time they develop roles, norms and values focusing work and is called work culture. NATURE OF ORGANIZATIONAL CULTURE The culture of an organization may reflect in various forms adopted by the organization. These could be: The physical infrastructure Routine behaviour, language, ceremonies Gender equality, equity in payment Dominant values such as quality, efficiency and so on Philosophy that guides the organizations policies towards it employees and customers like customer first and customer is king, and the manner in which employees deal with customers. Individually none of these connote organizational culture, however, together, they reflect organizational culture. Although organizational culture has common properties, it is found that large organizations have a dominant culture and a number of sub cultures. The core values shared by the majority of the organizational members constitute the dominant culture. Subcultures within an organization are a set of shared understandings among members of one group/department/geographic operations. For example, the finance department of an organization may have a sub culture which is unique to this department visavis other departments. This means that this department will not only have the core values of the organizations dominant culture but also some unique values. If an organization does not have a dominant culture and is comprised only of various sub cultures, its effectiveness would be difficult to judge and there will be no consistency of behaviour among departments. Hence, the aspect of common or shared understanding is an essential component of organizational culture. HOW IS ORGANIZATIONAL CULTURE FORMED:

LEVELS OF ORGANIZATIONAL CULTURE One comes across a number of elements in the organization which depict its culture. Organizational culture can be viewed at three levels based on manifestations of the culture in 1. At Level One: The organizational culture can be observed in the form of physical objects, technology and other visible forms of behaviour like ceremonies and rituals. Though the culture would be visible in various forms, it would be only at the superficial level. For example, people may interact with one another but what the underlying feelings are or whether there is understanding among them would require probing. 2. At Level Two: There is greater awareness and internalization of cultural values. People in the organization try solutions of a problem in ways which have been tried and tested earlier. If the group is successful there will be shared perception of that success, leading to cognitive changes turning perception into values and beliefs. 3. Level Three: It represents a process of conversion. When the group repeatedly observes that the method that was tried earlier works most of the time, it becomes the preferred solution and gets converted into underlying assumptions or dominant value orientation. The conversion process has both advantages. The advantages are that the dominant value orientation guides behaviour, however at the same time it may influence objective and rational thinking. PATTERNS OF ORGANIZATIONALS CULTURE Types of Organizational Culture Organizational culture can vary in a number of ways. It is these variances that differentiate one organization from the others. Some of the bases of the differentiation are presented below: 1. Strong v/s weak culture: Organizational culture can be labeled as strong or weak based on sharing of the core values among organizational members and the degree of commitment the members have to these core values. The higher the sharedness and commitment, the stronger the culture increases the possibility of behavior consistency amongst its members, while a weak culture opens avenues for each one of the members showing concerns unique to them. 2. Soft v/s hard culture:

Soft work culture can emerge in an organization where the organization pursues multiple and conflicting goals. In a soft culture the employees choose to pursue a few objectives which serve personal or sectional interests. A typical example of soft culture can be found in a number of public sector organizations in India where the management feels constrained to take action against employees to maintain high productivity. The culture is welfare oriented; people are held accountable for their mistakes but are not rewarded for good performance. Consequently, the employees consider work to be less important than personal and social obligations. 3. Formal vs informal culture: The work culture of an organization, to a large extent, is influenced by the formal components of organizational culture. Roles, responsibilities, accountability, rules and regulations are components of formal culture. They set the expectations that the organization has from every member and indicates the consequences if these expectations are not fulfilled. TABLE 1: FORMAL COMPONENTS OF ORGANIZATIONAL CULTURE Component Mission/Vision Policies Description Effect on Organizational Culture The milestones to be reached Could be unrealistic Statements designed to be Policies, if not drafted guidelines to behavioural properly can provide decision leeway Methods of providing specific guidelines Specific instructions for performing a task Can facilitate or create obstacles in smooth functioning Rules could be a means or an end in themselves

Procedures

Rules

at young, State of organizational State of Organizational Organization growing, development has direct Development maturing, or mature stage of impact on work culture development

Informal culture on the other hand has tangible and intangible, specific and non specific manifestations of shared values, beliefs, and assumptions. This part of organizational culture comprising of artifacts, symbols, ceremonies, rites, and stories is highlighted in almost all the definitions of organizational culture.

Functions of organizational culture

1. Behavioral control 2. Encourages stability 3. Provides source of identity Draw backs of culture 1. Barrier to change and improvement 2. Barrier to diversity 3. Barrier to cross departmental and cross organizational cooperation 4. Barrier to mergers and acquisitions

What Types of Behavior Does Culture Control? Using the outcome approach, cultures are described in terms of the following variables: Innovation versus StabilityThe degree to which organizational members are encouraged to be innovative, creative and to take risks. Strategic versus Operational FocusThe degree to which the members of the management team focus on the long term big picture versus attention to detail. Outcome versus Process OrientationThe degree to which management focuses on outcomes, goals and results rather than on techniques, processes, or methods used to achieve these results. Task versus Social FocusThe relative emphasis on effect of decisions on organizational members and relationships over task accomplishment at all costs Team versus Individual orientationThe degree to which work activities are organized around teams rather than individuals. Customer Focus versus Cost ControlThe degree to which managers and employees are concerned about customer satisfaction and Service rather than minimizing costs Internal verses External OrientationThe degree to which the organization focuses on and is adaptive to changes in its environment

Cultural Control Mechanisms

How does organizational culture control the behavior of organizational members? If consistent behavioral patterns are the outcomes or products of a culture, what is it that causes many people to act in a similar manner? There are four basic ways in which a culture, or more accurately members of a reference group representing a culture, creates high levels of cross individual behavioral consistency. There are: Social Norms: Social norms are the most basic and most obvious of cultural control mechanisms. In its basic form, a social norm is simply a behavioral expectation that people will act in a certain way in certain situations. Norms (as opposed to rules) are enforced by other members of a reference group by the use of social sanctions. Norms have been categorized by level. A. Peripheral norms are general expectations that make interactions easier and more pleasant. Because adherence of these norms is not essential to the functioning of the group, violation of these norms general results in mild social sanctions. B. Relevant norms encompass behaviors that are important to group functioning. Violation of these norms often results in non inclusion in important group functions and activities C. Pivotal norms represent behaviors that are essential to effective group functioning. Individuals violating these norms are often subject to expulsion from the group. Shared Values: As a cultural control mechanism the keyword in shared values is shared. The issue is not whether or not a particular individual's behavior can best be explained and/or predicted by his or her values, but rather how widely is that value shared among organizational members, and more importantly, how responsible was the organization/culture in developing that value within the individual. What is a value? Any phenomenon that is some degree of worth to the members of giving groups: The conception of the desirable that establishes a general direction of action rather than a specific objective. Values are the conscious, affective desires or wants of people that guide their behavior. How are values formed/developed within individuals? We like to think that our values are unique to us and an essential part of who we are. The critical question here is, how much of our values are derived from our reference group affiliation? We find that for most people, their values are generally consistent with the values of the reference group in which they were socialized. There are two kinds of values: A. Instrumental values represent the means an individual prefers for achieving important ends. B. Terminal values are preferences concerning ends to be achieved. When an individual can no long answer the question of These components of culture have a well defined linkage with each other which binds a culture and makes change in any one of the components difficult. However, change in any one of these components causes chain reactions amongst others.
Artifacts and Social Institutions

Values, Beliefs and Assumptions

Behaviour of People

Fig 1: Relationship among components of culture VARIOUS MYTHS ABOUT ORGANIZATIONAL CULTURE 1. Organizational culture is same as organizational climate: In management literature there is often ambiguity about the two concepts organizational culture and organizational climate. As explained earlier, organizational culture is a macro phenomenon which refers to the patterns of beliefs, assumptions, values, and behaviours reflecting commonality in people working together. However, organizational climate is a micro phenomenon and reflects how employees in an organization feel about the characteristics and quality of culture like morale, goodwill, employee relations, job satisfaction, commitment at the organizational, department or unit level. It refers to the psychological environment in which behaviour of organizational members occurs. It is a relatively persistent set of perceptions held by organizational members about the organizational culture. 2. Culture is same as groupthink: Since culture refers to shared assumptions and beliefs, it is likely to cause confusion. Groupthink refers to group members hiding any differences in how they feel and think and behave in a certain way. The phenomenon of groupthink is mostly used in a face to face situation when dealing with small groups. Culture, on the other hand, is a much larger phenomenon characterized by historical myths, symbols, beliefs, and artifacts. 3. Culture is same as organization: Culture is a result of sustained interaction among people in organizations and exists commonly in thoughts, feelings, and behaviour of people. Organizations on the other hand, consist of a set of expectations and a system of reward and punishment substantiated by rules, regulations, and norms of behaviour.

4. Culture is a social structure: Social structures in various collectives exhibit tangible and specific ways in which people relate to one another overtly. However, culture operates on a system of unseen, abstract, and emotionally loaded forms which guide organizational members to deal with their physical and social needs.

Defining Organizational Culture by the example of Automobile Industry in which we took the below three companies for our Project: 1. Bosch Ltd. 2. SKF Ltd. 3. AMV Ltd.

BOSCH Group Tagline: Invented for Life

Company Overview:
The Bosch Group is a leading global supplier of technology and services. In the areas of automotive and industrial technology, consumer goods, and building technology, some 283,000 associates generated sales of 45.1 billion euros in fiscal 2008. The Bosch Group comprises Robert Bosch GmbH and its more than 300 subsidiaries and regional companies in over 60 countries. If its sales and service partners are included, then Bosch is represented in roughly 150 countries. This worldwide development, manufacturing, and sales network is the foundation for further growth. Each year, Bosch spends more than 3.5 billion euros, or eight percent of its sales revenue, for research and development, and applies for over 3,000 patents worldwide. With all its products and services, Bosch enhances the quality of life by providing solutions which are both innovative and beneficial. The company was set up in Stuttgart in 1886 by Robert Bosch (1861-1942) as Workshop for Precision Mechanics and Electrical Engineering. The special ownership structure of Robert Bosch GmbH guarantees the entrepreneurial freedom of the Bosch Group, making it possible for the company to plan over the long term and to undertake significant up-front investments in the safeguarding of its future. Ninetytwo percent of the share capital of Robert Bosch GmbH is held by Robert Bosch Stiftung GmbH, a charitable foundation. The majority of voting rights are held by Robert Bosch Industrietreuhand KG, an industrial trust. The entrepreneurial ownership functions are carried out by the trust. The remaining shares are held by the Bosch family and by Robert Bosch GmbH.

BOSCH in INDIA:
India, Bosch is a leading supplier of technology and services, and has a strong presence in the country at numerous locations in diverse industry segments. Bosch set up its manufacturing operations in 1953, and has grown over the years to 14 manufacturing sites and 3 development centers. Bosch employs about 22500 associates in India, and in business year 2010 achieved total consolidated revenue of over 6630 crores. In India, the Bosch Group operates through the following companies Bosch

Ltd. Bosch Chassis Systems India Ltd. Bosch Rexroth India Ltd. Robert Bosch Engineering and Business Solutions Ltd. Bosch Automotive Electronics India Private Ltd. Bosch Electrical Drives India Private Ltd.

BOSCH in Figures:

20051 Sales revenue Share outside Germany as percent Annual average number associates (thousands) located in Germany located outside Germany Capital expenditure Research and development cost2 Profit after tax 41461 73 of 249 110 139 2923 3073 2450

2006 43684 74 258 110 148 2670 3348 2170

2007 46320 75 268 111 157 2634 3583 2850

2008 45127 74 283 114 169 3276 3889 372

2009 38174 76 275 113 162 1892 3603 -1214

2010 47259 77 276 112 164 2379 3810 2489

Currency figures in millions of euros 1 With the exception of profit after tax, without discontinued operations 2 Including development work charged directly to customers

VISION:

Our vision is our shared image of the future. It states where we want to go, and what drives our actions. As a leading technology and services company, we take advantage of our global opportunities worldwide for a strong and meaningful development. Our ambition is to enhance the quality of life with solutions that are both innovative and beneficial. We focus on our core competencies in automotive and industrial technologies as well as in products and services for professional and private use. We strive for sustained economic success and a leading market position in all that we do. Entrepreneurial freedom and financial independence allow our actions to be guided by a long-term perspective. In the spirit of our founder, we particularly demonstrate social and environmental responsibility wherever we do business. Our customers choose us for our innovative strength and efficiency, for our reliability and quality of work. Our organizational structures, processes, and leadership tools are clear and effective, and support the requirements of our various businesses. We act according to common principles. We are strongly determined to jointly achieve the goals we agree upon. As associates worldwide, we feel a special bond in our values that we live day by day. The diversity of our cultures is a source of additional strength. We experience our task as challenging; we are dedicated to our work, and are proud to be part of Bosch.

BOSCH Values (Encompassing change and continuity):

Bosch has always been a value-driven company. Many of our values can be traced back to our founder Robert Bosch; other values have changed or have arisen over the decades. Now we have put our guiding values in writing. Our values reflect the manner in which we run our business: Our professional ethics in dealing with our business partners, investors, employees and society. Future and Result Focus In order to ensure dynamic development of our company and to guarantee long-term corporate success, we participate in shaping the changes in markets and technologies. By doing so, we provide our customers with innovative solutions and our associates with attractive jobs. We act result focused in order to secure growth and financial independence. With the dividends generated, the Robert Bosch Foundation supports charitable activities. Responsibility We accept that our actions must accord with the interests of society. Above all else, we place our products and services in the interests of the safety of people, the economic use of resources, and environmental sustainability.

Initiative and Determination

We act on our own initiative, with an entrepreneurial but accountable spirit, and demonstrate determination in pursuing our goals. Openness and Trust We inform our associates, business partners, and investors in a timely and open fashion of important developments within our company. This is the best basis for a trustful relationship. Fairness We view mutual fairness as a condition of our corporate success when dealing with each other and with our business partners. Reliability, Credibility, and Legality We promise only what we can deliver, accept agreements as binding, and respect and observe the law in all our business transactions. Cultural Diversity We are aware of our company's regional and cultural origins and at the same time regard diversity as an asset, as well as a precondition of our global success.

Observing legal requirements

As part of our Bosch value Reliability, credibility, and legality, we are committed to unconditional compliance with the rule of law. To underline the significance of this principle, we have summarized the fundamental points of all key legal and company-internal regulations in our Code of Business Conduct. The code explains why this principle is so important to us and provides our associates with a guide for conducting their day-to-day business. We expect that they comply unconditionally with all the relevant legal and internal regulations, including the Basic principles of social responsibility at Bosch, which were approved in 2004. We also underpin the importance of the principle of legality through our membership of Transparency International, which we joined in 1995. Closer inspection To complement the Code of Business Conduct, Bosch is currently expanding its global compliance organization by setting up a corporate compliance committee and appointing compliance officers in the individual regions. This move serves to strengthen our current prevention and inspection activities, including the principle of dual control, job rotation in sensitive areas, strict separation of operative and monitoring systems, and regular audits. In addition, we keep all associates worldwide informed and will introduce a mandatory information and training program. The new compliance system is complemented by telephone hotlines and email addresses for reporting compliance issues, as well as by the audits that have been conducted hitherto at locations and suppliers.

Core Competences:

What drives us, what we have in common, what we stand for: For well over a century our company has built upon a unique mix of interrelated core competencies a mix from which we derive our competitive advantage, and which also forms the basis for the future development of our company. Strategic Farsightedness: Our many years of experience allow us to recognize technical and business trends in a timely way, to set clear and compelling objectives, and to ensure that they are attainted systematically. Our objectives and actions always follow a clear long-term strategy, both for our business field portfolio and for the global distribution of our business activities. This rigorous pursuit of longterm objectives is based on a systematic business policy intended to preserve our entrepreneurial freedom and financial independence. Innovative Strength: The germ cell of our company and driving force behind our development is our determination to use our own creative ideas to generate new technological solutions that deliver a high level of customer utility. The ability to do this stems from the high qualifications and motivation of our associates and our close cooperation with customers who are at cutting edge of technology. This includes the readiness to invest significant resources in our own basic research, as well as in projects whose market success will only be attained in the long term. Efficient Processes: As a mature industrial company, we have extensive experience of processes on all levels of value creation, from development and production to sales. Our strengths also include our deep-rooted drive and capacity for continuous improvement (CIP), which we use to continuously increase our efficiency in achieving the best return on investment. In global competition, this allows us to perform a balancing act between functional differentiation of our products on the one hand and cost leadership in commodity products on the other. Quality and reliability: Since its inception, our company has earned a reputation for providing products and services of the highest quality and reliability. Robert Boschs statement that quality is our most valued asset has remained an unwavering guideline for our business policies. Its successful implementation is the reason for the excellent image of the Bosch brand. Our customers put their trust in our ability to deliver high quality, even as products and systems become more complex. This trust is based on our strength in implementing necessary improvements in a fundamental and lasting ways. Global presence: The company has its roots in Germany, but has also always had a strong international orientation. In the areas in which we do business, hardly any other companies have such a broad global presence. Our global production and development sites work together as a very closelyknit network. This network and our global experience put us in an excellent position to exploit opportunities in current and future growth regions of the world. Human Resource Development:

The progress of our company is supported by systematic and consistent human resources work. This work ensures that our associates receive the best possible preparation for future requirements. Our internal associate training systems makes a great contribution here. To help to bring this knowledge to fruition we also rely on an inact corporate culture. Such a culture helps in a special way to promote commitment to attaining crucial corporate objectives, and to integrate the various global cultures to form a unified Bosch identity.

Basic principles of social responsibility at Bosch

Preamble The assumption of responsibility for society and future generations has a long tradition at Bosch. In the early days of the company, Robert Bosch pioneered the launch of welfare programs for associates and their families; in non-business areas, too, he played an active philanthropic role. Today, the Robert Bosch Foundation promotes health care, international understanding, welfare, education and training, art, culture, and science. Combining the pursuit of economic objectives with consideration for social and environmental factors is a priority at Bosch. We accept that our actions must accord with the interests of society. Above all else, we place our products and services in the interests of the safety of people, the economic use of resources, and environmental sustainability. In the following declaration, the Board of Management of Robert Bosch GmbH and the associate representatives affirm their commitment to common principles of social responsibility. The principles described in the following take their lead from the basic labor standards of the International Labor Organization (ILO). 1. Human rights: We respect and support compliance with internationally recognized human rights, in particular as regards those of our associates and business partners. 2. Equal opportunities: We uphold and affirm equal opportunity among our associates, regardless of the color of their skin, race, gender, age, nationality, social origin, handicap, or sexual preference. We respect the political and religious convictions of our associates as long as they are based on democratic principles and tolerate those of different persuasions. 3. Integration of handicapped people: In our view, handicapped people possess equal rights as members of society and business life. Encouraging them, integrating them into the enterprise, and working with them in an atmosphere of cooperation are pivotal elements of our corporate culture. 4. Free choice of jobs: We reject forced labor of any kind and respect the principle of freely chosen employment. 5. Rights of children: We condemn child labor and respect the rights of children. All enterprises in the Bosch Group will adhere to the stipulations of ILO Convention no. 138 and no. 182.

6. Relations with associate representatives and their institutions: We recognize the fundamental right of all associates to form trade unions and to join these trade unions of their own free will. Associates will neither receive undue advantage nor suffer any disadvantage as a result of their membership in trade unions. Within the framework of respective legal regulations insofar as these are in harmony with the ILO Convention no. 98 we respect the right to collective bargaining for the settlement of disputes pertaining to working conditions, and endeavor together with our partners to work together in a constructive manner marked by mutual confidence and respect. 7. Fair working conditions: Our remuneration and social benefits conform at the very least to national or local statutory standards, provisions, or respective agreements. We observe the provisions of ILO Convention no. 100 with respect to the principle of equal remuneration for work of equal value. We comply with national provisions regarding working hours and vacation. Any associate may complain to their respective line manager or senior management if they believe they have been subject to unfair treatment or have suffered disadvantages with respect to working conditions. Associates will not suffer any disadvantage as a result of lodging such complaints. 8. Occupational health and safety: Safety at the workplace and the physical well-being of our associates has top priority. Bosch adheres at the very least to the relevant national standards for a safe, hygienic working environment and takes appropriate action within this framework to ensure its associates health and safety at their workplace in order to guarantee working conditions which are not harmful to health. 9. Qualification: We encourage our associates to train to acquire skills and knowledge and to expand and enhance their professional and specialist know-how. 10. Environment: We can look back on a very long tradition of commitment to preserving and protecting the environment. In addition, we contribute to the further improvement of living conditions at our locations. Our basic principles of environmental protection reflect our duty toward the environment and are the basis for many initiatives which are implemented throughout the company. 11. Implementation: Our aim is to implement these principles throughout the Bosch Group. These principles will be incorporated into the Management System Manual for Quality, Environment, Safety, and Security in the Bosch Group. Responsibility for their implementation lies with the senior management of the respective divisions, regional subsidiaries and company locations.

Leadership:
Our entrepreneurial independence gives us a high degree of autonomy and allows us to pursue our corporate strategy over the long term. The key to this independence is our special ownership structure with a charitable foundation and the Bosch family as shareholders, and with an industrial trust that carries out the entrepreneurial ownership functions. We enjoy a close relationship with the descendants of our company founder, who are actively involved in our supervisory council, in the meetings of the share holders, and in the trust. This relationship is an important part of our corporate culture and strengthens the identity of the Bosch Group. Our goal is to secure the long-term and successful continued development of our company through sustained, profitable growth. Even in difficult times, we keep our sights set firmly on this goal. Despite the need to make savings in the current economic climate, therefore, we believe it is essential to maintain forward-looking investment in key areas such as resource conservation, climate protection, our associates education and training, and the further expansion of our company.

Orientation for employees:

In times of crisis, the expectations made of leadership and communication is especially high. Our House of Orientation is an important source of guidance, providing associates with the answers to three key questions: What drives us? What do we have in common? What do we stand for? The House of Orientation comprises our Bosch vision as our shared image of the future, our BeQIK mission as a standard for our everyday action, and our core competencies for the ongoing successful development of our company. The Bosch Business System contributes to the continuous improvement of all internal processes. The Bosch values are another central element of the House of Orientation. In addition to a clear future and result focus, we also commit to responsibility, initiative and determination, openness and trust, fairness, and cultural diversity, as well as to reliability, credibility, and legality Compliance with legal requirements has always occupied a position of special importance within our company. As early as 1921, Robert Bosch wrote: In the long term, an honest and fair approach to doing business will always be the most profitable. And the business world holds such an approach in much higher esteem than is generally imagined. We still share this view today. Accordingly, we expect each of our executives and associates to comply with all legal requirements and internal regulations. We have compiled the principal regulations in a code of business conduct. This code is produced in 39 languages, so that it can be communicated to all associates worldwide.

A family-friendly approach:
Increasingly, a persons choice of employer depends not only on salary or company car but also, for example, on the options available to help them strike a better work-life balance. Bosch has gained public recognition for the exemplary practices it has adopted in this regard. In Japan, we received the Award for Excellence 2008 from the Ministry of Health, Labor, and Welfare. This prize is awarded annually to especially family-friendly businesses that offer their associates an entire range of flexitime models, for example. We are also receiving a clear message from the fathers and fathers-to-be in our company, more and more of whom are requesting paternity leave. The options we offer contributed to another sharp rise in the number of fathers taking paternity leave from Bosch in Germany to more than 600 in 2008, roughly twice as many as in the previous year. We welcome this development.

SKF:
SKF, Svenska Kullagerfabriken AB (Swedish: Swedish ball bearing factory AB), later AB SKF, is a Swedishbearing company founded in 1907, supplying bearings, seals, lubrication and lubrication systems, maintenance products, mechatronics products, power transmission products[2] and related services globally. The SKF Group is the leading global supplier of products, solutions and services spanning rolling bearings, seals, mechatronics, services and lubrication systems. Services provided by SKF include technical support, maintenance services, condition monitoring and training. SKF was founded in 1907 and very rapidly developed a global presence. By 1920, the company was well established in Europe, North and Latin America, Asia and Africa. Today, SKF is represented in more than 130 countries. With an efficient global network of distributors and dealers in over 150,000 locations around the world and an e-business marketplace, SKF solutions are available wherever and whenever customers need them. The company was founded on Sven Wingqvist's 1907 Swedish patentNo. 25406, a multi-row self-aligning radial ball bearing. The Patent was granted on 6 June in Sweden coinciding with patents in 10 other countries. The new ball bearing was successful from the outset. By 1910, the company had 325 employees and a subsidiary in the United Kingdom. Manufacturing operations were later established in multiple countries. By 1912, SKF was represented in 32 countries and by 1930, a staff of over 21,000 were employed in 12 manufacturing facilities worldwide with the largest in Philadelphia, Pa. Assar Gabrielsson, SKF sales manager and Bjrn Prytz, Managing Director of SKF were the founders of Volvo AB in 1926. In the beginning, the company functioned as a subsidiary automobile company within the SKF group. SKF funded the production run of the first thousand cars, built atHisingen in Gothenburg, beginning in 1927. SKF used one of the company's trademarked names: AB Volvo, which derives from the Latin "I roll", with its obvious connotations of bearings in motion. The ownership of Volvo lasted until 1935 when the last shares were divested. In the 1970s SKF embarked on a massive production rationalization program in Europe. A visionary project, "Production Concept for the 80s" was launched with the aim to run the night shifts practically unmanned. To increase productivity and safeguard the product quality, a continuous, automatic flow of bearing rings was needed, so SKF developed the Flexlink multiflex plastic chain conveyor system. SKF divested FlexLink as a separate company in 1997. Today, SKF is the largest bearing manufacturer in the world and employs approximately 40,000 people in approximately 100 manufacturing sites that span 70 countries.[3] Turnover for FY2005 was SEK49,285 million, and total assets were SEK40,349 million. The SKF Group currently consists of approximately 150 companies including theseal manufacturer Chicago Rawhide. Since its founding, SKF's company headquarters have been located in Gothenburg. One recent acquisition was that of Economos, part of Salzer Holding, an Austria-based seal company,Jaeger Industrial and ABBA, Taiwanese manufacturers of linear actuators.

The company's clients include General Electric, Rolls-Royce plc and Pratt and Whitney. It also supplies bearings for Ferrari racing vehicles, used in Formula One races, and is a sponsor of F1. Another focus area is the energy sector, including wind turbines which generate electricity.SKF currently sponsors Richard Childress Racing and Jeff Burton in the NASCAR Sprint Cup Series. SKF is a member of World Bearing Association (WBA).

Manufacturing footprint of SKF in India:

Quick facts of Manufacturing Footprint of SKF in India: 1) SKF India Ltd. Bangalore Factory

Year of Establishment : 1989 Certification : TS 16949 / ISO 14000 Segments : Automotive, Industrial Product Range : DGBB, Value Added Solutions ( Rocker Arm Bearing, Rocker Arm assembly, Clutch Lifter, Cam Follower, Cylindrical rollers, Solid oil ball cage, Steering Column bearings, One Way clutch), Customized products and assemblies ( Postal Rollers, Sheave assemblies, Pulley assemblies, Roller assemblies).

Haridwar Factory

Year of Establishment : March 2010 Certification : Certified to ISO 14001 & OSHAS 18001 Segments : Two wheeler segment Product Range : DGBB

Pune Factory

Year of establishment: 1965 Certifications: ISO 9001 ISO 140041 OHSAS 18001 Segments: Automotive, Industrial Electrical Product range: Bearings (Small DGBB, Medium DGBB TRB, THU, HBU, Thin section BB)

2) SKF Technologies (India) Pvt. Ltd. Ahmedabad Factory

Year of establishment: 2009 Certifications: Leadership in Energy & Environmental Design (LEED) Segments: power generation, renewable energy, construction, mining and material handling Product range: Wide range of medium and large bearings.

SKF Sealing Solutions Factory

Year of Establishment : 1999 Certification : TS 16949 / ISO 14000, OSHAS 18001, M1003 AAR, ISO 9001: 2008 Segments: Automotive, Industrial. Product Range : Engine seals, Transmission seals, Suspension seals, Wheel seals, Radial and axial shaft seals, Wear sleeves, Hydraulic seals, Static seals, Integrated Compact Oil Sealed Unit, Sensor-bearing Unit, Washing Machine Drum Bearing Unit, RSafe Seal(with Tone Wheel)

3) Lincoln Helios (India) Ltd. factory

Year of Establishment - 1993 Certification - ISO 9001:2008 Segments - Renewable Energy, Mining, Steel, Cement, Power, Material Handling, Paper, Tyre & Glass, Product Range - Centralized Grease Lubrication System, Oil Circulation System, Roll - Coolant System, Air - Oil System, Material Dispensing System and Oil - Mist System

Mission:

SKFs mission is to enhance and develop global leadership in bearings, seals, related products, systems and services. The aim is to be the best in the industry at:

Providing customer value Developing our employees Creating shareholder value

Vision:
To equip the world with SKF knowledge Knowledge we have gained from working in over 100 countries for over 100 years. This unique experience helps us combine both a global and a local approach with a deep understanding of cultures and regions as well as our customers' businesses and applications. Knowledge we have gained from working with all types of industries throughout the world, from mining and construction to aerospace applications, from race cars to wind turbines and medical equipment. Through our knowledge we help customers improve their effectiveness, making them more successful and profitable. Knowledge we have developed within the technologies of our platforms. Our innovative products, solutions and services can often translate Immediately into application solutions that were never previously possible. In close partnership with our customers we are dedicated to finding solutions to their specific challenges.

Drivers:

Profitability Quality Innovation Speed Sustainability

Values:

Empowerment High ethics Openness Teamwork

Code of Conduct

For an international company like SKF to be consistently successful, it is vital that the organization, and every single employee in the performance of his/her duties, is seen and perceived as economically, socially and ethically responsible. This is the only way to ensure lasting, positive and acceptable, financial and social development. SKF has defined four key areas of responsibility: Responsibility towards customers: To gain and maintain customers by continuous development and research and to be able to provide products, services and solutions that meet customers' expectations regarding quality, safety and environmental care. Responsibility towards employees: To respect the employees and their rights, to offer safe and good working conditions, to offer non-discriminatory conditions and continuously develop skills and competencies to ensure the individual's satisfaction and career possibilities. Responsibility towards shareholders: To protect the shareholders' investments and strive for a sustainable and improving return. Responsibility towards society: To manage the business as a responsible member of our society acting according to the laws in the different countries where we are present, to express our support and show respect to the protection of internationally proclaimed human rights. We must make sure that we are not complicit in human rights abuses, and always consider health, safety and environmental issues in order to contribute to a sustainable development. To fully perform these responsibilities we apply throughout the organization our core values - High Ethics, Empowerment, Openness and Team Work - and the ethical principles described in this Code of Conduct. It is also SKF's aim to actively involve all its stakeholders whenever possible.

Responsibility towards Customers: Business ethics: SKF demands honesty and integrity in all parts of its activities and expects the same from all parties with whom the Group has any business relation - customers, suppliers, partners, agents. SKF advocates free and fair trade, striving for competition and ethical conditions within the rules of the legal framework. SKF also supports transparency and openness, provided business secrets, the divulgence of which could harm the company's competitiveness and/or relationships with customers or partners, are not exposed. SKF business ethics also dictate that: bribes are forbidden and, consequently, that all forms of compensation to agents, suppliers and partners shall refer only to justified products or services.

gifts and other favours as elements of expected hospitality must not exceed local customs and be in line with local laws. all employees must avoid any conflict of interest between private economic issues and the company's business; any case of uncertainty should be brought to the country management for judgment. all business transactions made on behalf of an SKF company must clearly appear in the company's accounting, conducted according to the Group's rules. RESPONSIBILITY TOWARDS EMPLOYEES Working ethics Leadership and the relationship between employees within SKF are based on our four core values. Among other things these values require that: all employees be treated equally, fairly and with respect regardless of race, gender, age, national origin, disability, caste, religion, sexual orientation, union membership or political affiliation. SKF does not engage in or tolerate the use of child labour. We define as child any person less than 15 years, unless local minimum-age law stipulates a higher age for work or mandatory schooling, in which case the higher age shall apply. If, however, local minimum-age law is set at 14 years in accordance with developing country exceptions under ILO Convention 138, the lower age will apply. SKF respects the right of all employees to form and join trade unions of their choice and to bargain collectively. SKF will ensure that official representatives of such trade unions are not subject to discrimination and that such representatives have access to the union members and their workplace. SKF ensures that wages and other related benefits meet at least the legal or industry minimum standard in the country in question. SKF complies with applicable laws and industry standard on working hours in each country where we operate. SKF is committed to offering safe and healthy workplaces for all employees. SKF is certified to ISO 14001. The Group's aim, related to health and safety, is to eliminate rather than just reduce work-related accidents and injuries throughout its facilities. (See SKF Group Policy - Environment, Health and Safety.) SKF strives to give employees good opportunities to train for job enrichment and wider responsibility, as expressed in the Individual Development Plan. SKF will give all employees a fair chance to compete for job opportunities. Unless overridden by national legislation, only relevant skills and competencies shall be the differentiating factors in selecting the right person for the job. SKF ensures that the registration, filing and use of employee data is treated with strict confidentiality and in accordance with local legislation. Responsibility towards Shareholders: Finance ethics: Return on the shareholder's invested money is always considered when determining

important strategies and action alternatives. SKF keeps its shareholders all over the world well informed about the activities, results and strategies of the Group, complying with the rules of the stock exchanges where the SKF shares are listed. Responsibility towards Society: Social ethics: Communication It is SKF's policy to be open and approachable, to provide factual and consistent information about the Group's products, services and development. Information essential to the stakeholders of the company shall always be given as fast as circumstances permit. Environment, health and safety: SKF has a firm commitment to contribute to ecologically sustainable development. Consequently SKF is continually striving to improve environmental care and to ensure the health and safety of people dependent upon the activities of the Group. (SKF's Environment, Health and Safety policy and programmes are described in the Group's annual Environmental Report. Responsibilities for environmental care are shared throughout the SKF Group - every employee has an important role to play.SKF's progress towards sustainable development is reported annually. Political issues: SKF does not interfere in the political life of the countries where the Group operates.Consequently, companies within the SKF Group are forbidden to contribute financially to political parties or politicians. Likewise, SKF companies are not allowed to take part in party politics.In relations with governments or international organizations, SKF as a Group has the right, and it is sometimes its duty, to make its views heard on issues that affect SKF, its employees, customers and shareholders. The Group President and CEO - in person or through explicit delegation - is the only person authorized to express political statements on behalf of SKF. Implementation of Code of Conduct: All employees have the obligation to follow the Code of Conduct and no one in the organization has the mandate to authorize exceptions from the Code of Conduct. It is the responsibility of each manager within the SKF organization to ensure that employees are fully informed about the Group's Code of Conduct and to ensure that this Code is implemented and followed. Managers should act in such a way that their behaviour is an example of the practice of the Code. Group Management will regularly supervise the observance of the Code of Conduct. This Code of Conduct has its roots in SKFs long tradition as an international company and adheres to the UN Global Compact Principles and the OECD Guidelines for Multinational Enterprises.