Dr Jiangang Fei AUSTRALIAN MARITIME COLLEGE Knowledge management Module 8 the role of organisational culture in knowledge management Dr Jiangang Fei AUSTRALIAN MARITIME COLLEGE

Focus questions How can we identify organisational culture? What is the relationship between organisational culture and knowledge sharing? How can an organisational culture be transformed to a knowledge-sharing one? How should knowledge management initiatives be designed and implemented to fit an existing organisational culture? Beginning course details and/or books/materials needed for a class/project.

Culture – what is it? Culture of a society Underlying values, beliefs, and codes of practice The customs of society, the self-image of its members, the things that make it different from other societies Powerfully subjective Beginning course details and/or books/materials needed for a class/project.

Organisational culture (OC) Embedded in the wider societal context, but have communities of their own with distinct rules and values – being both part of, and apart from, society. An evaluative element that involves social expectations and standards – the values and beliefs that people hold central and that bind organisational groups. A set of more material elements or artefacts – not only the signs and symbols by which the organisation is recognised but also the events, behaviours, and people that embody culture. Beginning course details and/or books/materials needed for a class/project.

Organisational Culture – how to define? A pattern of basic assumptions – invented, discovered, or developed by a given group as it learns to cope with its problems of external adaptation and internal integration – that has worked well enough to be considered valid and therefore to be taught to new members as the correct way to perceive, think and feel in relation to those problems (Schein 1999, p. 385). OC can also be defined in terms of both its causes and effects. Outcome perspective: OC as a manifest pattern of behaviour, consistent behavioural patterns observed across a group of individuals – the way we do things around here. Process perspective: OC as a set of mechanisms such as informal values, norms, and beliefs that control how individuals and groups in an organisation interact with each other and people outside. Beginning course details and/or books/materials needed for a class/project.

Organisational Culture – key elements (Morgan 1977) Stated and unstated values Overt and implicit expectations for member behaviour Custom and rituals Stories and myths about the history of the group Beginning course details and/or books/materials needed for a class/project.

Organisational Culture – key elements (Morgan 1977) Shop talk – typical language used in and about the group Climate – the feelings evoked by the way members interact with one another, with outsiders, and with their environment, including the physical space they occupy Metaphors and symbols – may be unconscious or embodied in other cultural elements Beginning course details and/or books/materials needed for a class/project.

Different types of OC NETWORKED CULTURE COMMUNAL CULTURE Members are treated as friends and family. Disadvantage: people are so kind to each other that they are reluctant to point out and criticise poor performance. COMMUNAL CULTURE A sense of belonging; leaders are inspirational and charismatic. Negative: leaders exert too much influence and other members are rarely vocal. FRAGMENTED CULTURE Weak belongings, individualism, commitment is given first to individual members and task work. Downside: a lack of cooperation. MERCENARY CULTURE Focus on strict goals, get the job done quickly, no political cliques. Negative: poor performance may be treated inhumanely. HIGH Sociability Beginning course details and/or books/materials needed for a class/project. LOW LOW Solidarity HIGH

OC analysis – 3 layers The stated strategies, goals, The basic underlying assumptions, unconscious taken for granted beliefs, perceptions, thoughts, and feelings. Beginning course details and/or books/materials needed for a class/project. The stated strategies, goals, philosophies, and justifications The visible organisational structures and processes

Culture and knowledge Reading 8.2 Culture shapes assumptions about which knowledge is important Culture mediates the relationships between levels of knowledge Culture creates a context for social interaction Culture shapes creation and adoption of new knowledge Beginning course details and/or books/materials needed for a class/project.

OC and KM Implementations of KM almost always require a cultural change Importance of trust in knowledge sharing OC that facilitates knowledge flows, both vertical and horizontal A change from perceiving knowledge and knowledge creation as being a proprietary and solo undertaking to a perception of participation and collaboration A paradigm shift from knowledge is power to sharing knowledge is more powerful Sharing is the norm, not the exception Beginning course details and/or books/materials needed for a class/project.

Characteristics of supportive OC to KM Reward structure – recognition for knowledge sharing; Openness/transparency – no hidden agenda; Sharing supported – communication and coordination between groups; Trust – shared objectives; and Top management support – upward and downward communication. Beginning course details and/or books/materials needed for a class/project.

Effects of culture on individuals Social norms: behavioural expectation that people will act in a certain way in certain situations. Peripheral norms are general expectations that make interactions easier and more pleasant. Violation of these norms results in mild social sanctions. Relevant norms encompass behaviours that are important to group functioning. Violation results in non-inclusion in important group functions and activities. Pivotal norms represent behaviours that are essential to effective group functioning. Violation results in expulsion from the group. Beginning course details and/or books/materials needed for a class/project.

Effects of culture on individuals (cont.) Shared values: the conscious, affective desires or wants of people that guide their behaviour. To gain acceptance, individuals need to act in ways consistent with the value of a group. Individuals do not necessary hold that value. Mental model: a causal relationship between two variables, or basic underlying assumptions. Decision making Problem solving Cognitive schema Beginning course details and/or books/materials needed for a class/project.

Transforming OC to a K-sharing culture Corporate value: a change of ‘what is important here’ sends strong message that this value is important. Leadership: For new values to be accepted by others, leaders should be committed to the new values. Leaders communicate the importance of values by what they praise and what they criticise. Beginning course details and/or books/materials needed for a class/project.

Transforming OC to a K-sharing culture (cont.) Culture transformation through stories and myths. A rewarding system can send powerful messages regarding what is important. Important and public decisions also communicate the importance of certain values. Beginning course details and/or books/materials needed for a class/project.

Initial steps to creating a K-sharing OC Having knowledge journalists begin interviewing key people to document projects, best practices, lessons learnt, and good stories; Instituting informal gatherings to help people get to know one another; Producing newsletters to publicise KM initiatives and celebrate good role models; Beginning course details and/or books/materials needed for a class/project.

Initial steps to creating a K-sharing OC Launching KM pilot projects; Changing performance evaluation criteria Censuring knowledge hoarders and rewarding effective K sharers; and Redesigning workplaces to allow for gathering places Beginning course details and/or books/materials needed for a class/project.

Review Now return to the focus questions at the beginning of this module and consider whether you can answer them to your satisfaction. Beginning course details and/or books/materials needed for a class/project.