Management Organisations – Culture

Useful vocabulary omnipotent view of management symbolic view of management organisational culture strong cultures socialisation stakeholders workplace spirituality external environment specific environment general environment environmental uncertainty environmental complexity

Today’s lecture We will: Discuss the characteristics and importance of organisational culture Describe current issues in organisational culture

What is organisational culture? organisational culture - the shared values, principles, traditions, and ways of doing things that influence the way organisational members act. strong cultures - organisational cultures in which key values are intensely held and widely shared.

Activity What words would you use to describe HAUT’s culture?

Characteristics of culture Seven primary characteristics Innovation and risk taking Attention to detail Outcome orientation People orientation Team orientation Aggressiveness Stability

Characteristics of culture (1) Innovation and risk taking –employees are encouraged to be innovative and take risks Attention to detail employees are expected to exhibit precision, analysis and attention to detail

Characteristics of culture (2) Outcome orientation –employees focus on results and outcomes rather than how they are achieved People orientation – how much management decisions take into account the effect on people in the organisation Team orientation –work is organised around teams rather than individuals

Characteristics of culture (3) Aggressiveness –employees are aggressive and competitive rather than co-operative Stability –how much organisational decisions and actions emphasise maintaining the status quo

Story time! The Monkeys and the Banana

Where does culture come from? Organisation founder Organisation’s vision and mission Past practices of people in the organisation Top management behavior Socialisation - the process that helps employees adapt to the organisation’s culture.

Establishing and maintaining culture

Where does culture begin? Stems from the actions of the founders: Founders hire and keep only employees who think and feel the same way they do. Founders indoctrinate and socialise these employees to their way of thinking and feeling. The founders’ own behavior acts as a role model that encourages employees to identify with them and thereby internalise their beliefs, values, and assumptions.

The socialisation process Pre-arrival The period of learning prior to a new employee joining the organisation Encounter When the new employee sees what the organisation is really like and confronts the possibility that expectations and reality may diverge Metamorphosis When the new employee changes and adjusts to the work, work group, and organisation

How do employees learn culture? (1) Stories - Narratives of significant events or people, e.g. organisation founders, rule breaking, reaction to past mistakes etc. Anchor the present into the past and provide explanations and legitimacy for current practices. Rituals - Sequences of activities that express and reinforce the important values and goals of the organisation

How do employees learn culture? (2) Material Artifacts and Symbols - Convey the kinds of behavior that are expected, e.g. risk taking, participation, authority, etc. Acceptable attire, office size, opulence of the office furnishings, and executive perks that convey to employees who is important in the organisation. Language - Acts as a common denominator that bonds members. Jargon and special ways of expressing one’s self to indicate membership in the organisation

Activity Can you think of any organisations that you think have a culture which you would not fit in with? Why do you think you would not fit in?

Contrasting cultures (p53)

Contrasting cultures How would you describe Company A in terms of cultural characteristics? How would you describe Company B in terms of cultural characteristics?

Strong v. Weak cultures

Benefits of a strong culture Creates a stronger employee commitment to the organisation Aids in the recruitment and socialisation of new employees Fosters higher organisational performance by instilling and promoting employee initiative

How does culture affect managers? Cultural constraints on Managers Whatever managerial actions the organisation recognises as proper or improper on its behalf Whatever organisational activities the organisation values and encourages The overall strength or weakness of the organisational culture

Examples of culture Look busy even if you aren’t Don’t take risks or you will regret it Always run a decision by your boss frist We only make our product as good as it needs to be What we did in the past, we will keep doing in the future If you want to succeed, then you have to be a team player

Managerial decisions affected by culture

Creating cultures Cultures can also be created if you feel your organisation has the wrong culture.

How to create a customer responsive culture Hire the right type of employees (those with a strong interest in serving customers) Have few rigid rules, procedures, and regulations Use widespread empowerment of employees Have good listening skills in relating to customers’ messages Provide role clarity to employees in order to reduce ambiguity and conflict and to increase job satisfaction Have conscientious, caring employees willing to take initiative

How to create an innovative culture (p58) Challenge and involvement Freedom Trust and openness Idea time Playfulness humour Conflict resolution Debates Risk taking

Activity Which organisations can you think of which probably have a culture of customer responsiveness or a culture of innovation?

Spirituality and culture (1) Workplace Spirituality - a culture where organisational values promote a sense of purpose through meaningful work that takes place in the context of community Characteristics of a Spiritual organisation –Strong sense of purpose –Focus on individual development –Trust and openness –Employee empowerment –Toleration of employees’ expression

Spirituality and culture (2) NOT about organised religious practices People seek to find meaning and purpose in their work Job demands have made the workplace dominant in many people’s lives, yet they continue to question the meaning of work. The desire to integrate personal life values with one’s professional life. An increasing number of people are finding that the pursuit of more material acquisitions leaves them unfulfilled.

Negative aspects of organisational culture Institutionalisation Barriers to change Barriers to diversity Barriers to acquisitions and mergers

Culture and culture Organisation cultures, while strong, can’t ignore local culture Managers should be more culturally sensitive by: Adjusting speech to cultural norms Listening more Avoiding discussions of controversial topics All global firms (not just U.S. firms) need to be more culturally sensitive

Consider… Strong cultures are difficult for managers to change In the short run, strong cultures should be considered fixed Selecting new hires that fit well in the organisational culture is critical for motivation, job satisfaction, commitment, and turnover Socialisation into the corporate culture is important As a manager, your actions as a role model help create the cultural values of ethics, spirituality, and a positive culture

Employees and diversity What other factors about individuals might affect the organisational culture? Eg, age

Recruitment Fit to organisational culture v. discrimination (eg, innovation is not just for young people!) Managers’ personalities and preferences v. recruitment needs for the organisation (eg, just because you like extroverts, doesn’t mean you shouldn’t hire introverts)

Summary Today: What organisational culture is Why it can be useful How it is created Tomorrow: Quiz!

Reading Please read Chapters 14 and 16 before Monday. Please revise Planning and Organisations Please work hard on your assignment! Only one week left.

Business set up (cont.) Imagine you are setting up a business which provides Information, Advice and Guidance (IAG) for Chinese students who will be starting at university in the UK in September. You are based in China but providing support to students in the UK. In groups, describe your business: –mission statement –organisational design –collaborations –flexible working –type of team you want –skills you need your team to have –the culture you want your company to have