What is organisational culture? The unwritten code that affects the attitudes and behaviours of staff, approaches to decision making and the leadership style of management.
Advantages: Strong Corp Culture Identity Teamwork Commitment/Retention Motivation Orientation as to decision making Reinforce Org Values Helps senior mgt control/direct ‘Organisational culture is the key to organisational excellence....and the function of leadership is the creation and management of culture” (Edgar Schien)
Corp. Culture: Manifestations Furniture/Clothes/Tools Ceremonials (Co. Song vs Donut eating contest) Courses/Culture Support Heroes Culture is X after it all went wrong in year Y Language (Employee/Colleague/Subordinate) Myths Behavioural norms (meeting timing/greetings/deadlines) Office layout Rituals (Birthdays?)
What is Organisational Culture? How do the theorists define culture? Schein “The pattern of basic assumptions that a group has invented, discovered or developed to cope with its problems of external adoption or internal integration, that has worked well and are taught to new members as the way to perceive, think, feel and behave.” Handy “ Deep-set beliefs about the way work should be organised, the way authority should be exercised, people rewarded, people controlled.” www.time2resources.co.uk
Types of Culture Edgar Schein 3 levels Culture is formed over time Consider: How visual is each level to an outside observer? Which is the most difficult to understand? Edgar Schein 3 levels Culture is formed over time http://www.managementstudyguide.com/edgar-schein-model.htm www.time2resources.co.uk
Classifying Organisational Culture Charles Handy (1981) Classification system.... Power Role Task Person
Prof Hofstede’s Cultural Dimensions Based on research in 1980s, 5 key variables that vary by country Power Distance (Chinese vs Scandinavia/Israel) Individualism vs Collectivism Masculinity vs Femininity Uncertainty Avoidance (Germany vs Italy?) LT vs ST Orientation
“THERE IS NO SUCH THING AS A RIGHT CULTURE, WHAT MATTERS IS WHETHER THE CULTURE IS RIGHT FOR THE BUSINESS CIRCUMSTANCES” Do you agree?
Consolidation Questions Reasons for changing culture? Problems of culture? How to change organisational culture? Is culture important?
Additional Material
Further definitions: Organisational Culture “The values and standards shared by people and groups within an organisation” “The way we do things around here” “The values, attitudes and beliefs of the people working in an organisation that control the way they interact with each other and with external groups” “The attitudes, traits and behavioural patterns which govern the way individuals interact with others” “Organisations have values, policies, rules and guidelines which help them create an image of their own” “The principles, ideologies, beliefs and polices of an organisation which make it different from others” “The collection of briefs norms and values that are shared by groups of people” All of the above! http://www.youtube.com/watch?v=fY3diNZ647g
Types of Organisational Culture Purpose... Creating a sense of “who we are”, “what we do” and “what we stand for”... Shared meanings that helps everyone understand how to act & behave Strong culture = internally consistent The culture MUST be suited the environment the business operates in...allowing response & reaction to market changes....
Changing organisational Culture.... Possible reasons for change? The existing culture can hinder growth, development and success. Some examples when to change: Product-led – respond to changing market conditions (become task- based) Recently privatised business (become profit orientated) Merger or takeover Need to motivate staff (become person-based) Can you think of any more?
Sources of Organisational Culture Company routines Formal controls Organisational structures Power structure Symbols Rituals and myths ‘Organisational culture is the key to organisational excellence....and the function of leadership is the creation and management of culture” (Edgar Schien)