Key influence on the change process

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Presentation transcript:

Key influence on the change process Culture Key influence on the change process

Organisational culture The unwritten code that affects the attitudes and behaviour of staff, approaches to decision making and the leadership style of management The way we do things around here

Sources of culture Company routines Formal controls Organisational structures Power structures Symbols Rituals & myths

Charles Handy Power culture Role culture Task culture Person culture

Bureaucratic culture Emphasis on roles & procedures Risk averse Generalised, non-commercial goals Precisely defined responsibilities & goals Hierarchical structure

Entrepreneurial culture Emphasis on results & rewards for individual initiative Risk taking Quantitative and financial goals A task culture with flexible roles Flatter & more flexible structure giving more local control

Organisations can be ... Marketing-orientated Production-orientated Technology-orientated

Can culture change? Changes in the external environment may require a change in culture – values may no longer be appropriate (John Lewis) Existing culture can be a barrier to change Role of leader & senior management is crucial

Importance of culture Determines how firms respond to changes in their environment No right or wrong culture – CONTEXT! Relevance to success of entering Chinese market

Exam question BP is a multinational energy business that has 92,000 employees and operates in 100 countries. When a new chief executive was recruited internally at BP, he promised to improve the company’s disappointing performance by quickly changing its culture to become more innovative and more responsive to its customers. How easy do you think it is for a new chief executive to change the culture of an organisation quickly? Justify your answer with reference to BP and/or other businesses that you know. [40 marks]

Factors that promote & resist change Clarity of objectives planning Resources Training Impact on people Resistance to change Effectiveness of teams Nature of organisational structure Culture External factors

Learning objectives Consider role of leader & culture in bringing about successful change Consider role of culture in success of mergers & takeovers Essay on page 479 – 40 marks Perfect exam practice! Make sure you use at least 4 different companies in your examples/analysis