Organisational culture, leadership and knowledge management Chapter 14 Organisational culture, leadership and knowledge management Copyright © 2010 Tilde University Press

Knowledge as an asset Three basic resources – time, money & knowledge Knowledge has to be created, learned, and maintained A unique resource A complex resource needing careful management Data Information Encoded knowledge Embedded knowledge Embodied knowledge Encultured knowledge

A systems approach – see Figure 14.1 Legitimate system Strategic planning Check current knowledge (e.g., in standing plans) New knowledge needed Operational planning Standing plans Single use plans Organisation control systems Negative feedback loops Performance appraisal Selection The four stages of HRD Potential problems

Workplace learning Supervisor is the key actor The worksite is the crucible for learning Unique space in knowledge management spans both the legitimate system and the shadow system Well managed workplace learning curriculum then moves seamlessly into the creative process of the shadow system

A systems approach (cont) Shadow system Emergent strategic plans Creativity Draws organisation towards inequilibrium Individuals in relationships Self-organising groups and communities of practice Networks Learning partnerships

Bounded instability Both systems have sufficient and appropriate power to undertake their roles The responsibility of the shadow system Select or create SOGs Develop SOGs Use political processes The responsibility of the legitimate system Avoid defence mechanisms Use embedding process A seamless transition One system morphs into the other

The paradox Good organisational governance is based on a paradox the need for conformity and creativity. To achieve the state of bounded instability Accessibility of the leader Encourage employees to have a noteworthy and practical input Negate status and power Establish informal spaces for all staff

Organisational culture Patterns of basic assumptions Invented or discovered by the group To cope with external adaptations and internal integration Worked well over a long period of time; Taught to new members Formed, over time, by a number of influences philosophy and values founding members strategic orientation primary function and technology Size beliefs and values of the current senior management/key staff Organisational culture eats strategy for lunch

Organisational culture (cont) Elements of organisational culture Level 1: Artefacts and creations Level 2: Espoused values Level 3: Basic underlying values Web of factors Routine behaviours & Processes Rituals Stories Symbols Power structures Control systems Organisation structure

Types of organisational culture Determining factors degree of risk speed of feedback process (from flexibility to control) focus (internal to external) Four types – see Figure 14.2 Teamwork Entrepreneurial Bureaucratic Premeditative.

Four types of organisational culture Team work Focus on the group and creativity Attention is on the internal environment Flexibility and participation in decision making Speed in feedback to staff is essential Ensure staff are empowered Social events used to enhance morale Cohesion achieved by commitment to the group Produce volume - at the expense of quality?

Four types (cont) Entrepreneurial Creativity as well as innovation and agility Focused on the demands of the external environment Risk taking, individual freedom, and initiative Quick feedback, but only at the informational level Flexibility, resource acquisition, continual adaption to the external environment, and individual competition Internal conflict and intense pressure is often the norm Star performers are highly valued Aim for the organisation to be at the leading edge Can cause a non-cohesive and erratic culture, with a lack of trust and high staff turnover

Four types (cont) Bureaucratic Focus on the internal environment Control, particularly the control of the individual Explicit standing plans, associated control systems and routine Clear structure, with power distributed accordingly Authority centralised Emphasis is on low risks and slow feedback Attention to minor detail, formality, and technical perfection Maintain stability and predictability Assumes close-to-certainty external environment

Four types (cont) Premeditative Focuses on the external, clearly understanding of client needs Strong control over processes Competition between individuals and groups is encouraged Stresses achievement of well defined goals being Sense of deliberateness Values clarity in tasks, achieving goals, quality, and efficiency Large-stake decisions with high risk but slow feedback Hierarchical system of authority, with decisions from the top Desire to be market leader through high-quality inventions and scientific breakthroughs Culture is vulnerable to short-term fluctuations

The multi-dimensional view One culture for the legitimate system PLP had a premedative culture Another culture for the shadow system PLP had a teamwork culture Culture should link the two sub-cultures PLP “don’t let colleagues down”

Leadership Transactional leadership Transformational leadership Uses negative feedback loops and single-loop learning Most useful in situations Under near-to-certainty conditions When facing clear, familiar tasks That is, operating in the legitimate system Transformational leadership Appeal to the emotional, motivational and developmental needs Reframe stressful situations as opportunities Provides necessary support (e.g., positive feedback) Theory-in-Use Model II That is, operating in the shadow system

Judicious amalgamation Of leadership medium level of transactional leadership maximises the positive effects of transformational leadership Of culture Multi-dimensional approach needed Different but supporting cultures for legitimate and shadow systems Of leadership and culture - For example Will need transactional for bureaucratic and transformational for teamwork