1. Overall feedback 1. No clear PEEL structure 2. No analysis – developed chains of argument looking at impact 3. No forward thinking implications 4. 14 mark evaluation ( no structure, AIM) 5. Ignoring hooks - 6. Too much detail – not focused on question. 7. http://www.youtube.com/watch?v=OEPEGnG PHds

2. Managing Change Key Influences on the Change Process: Culture Bureaucratic and risk averse environments are career killers because of their impact on learning. John Kotter We need a can-do, vibrant, innovation-driven culture. Not wearing a tie is just a snippet of that. Paul Walsh BUSS4.10 Culture

3. In this topic you will learn about: Types of organisational culture Reasons for and problems of changing organisational culture Assessing the importance of organisational culture BUSS4.10 Culture

4. Organisational Culture “The shared values, beliefs and norms that are shared by people and groups in an organisation and that control the way they interact with each other and with stakeholders outside the organisation.” Source : Wikipedia The culture of a business affects the way in which the business operates. This includes: ◦ Decision Making ◦ Organisational Structure ◦ Communication ◦ Leadership styles (cause or effect?) ◦ Attitude towards work BUSS4.10 Culture What are the key features of the organisational culture at Google? How might this influence the business performance?

5. Strong or weak culture? Staff believe in values of a company Little need for policies and procedures Increased motivation Staff loyal Staff believe in values of a company Little need for policies and procedures Increased motivation Staff loyal Strong Workers are forced to comply with values Inconsistent behaviour A need for extensive bureaucracy & procedures Workers are forced to comply with values Inconsistent behaviour A need for extensive bureaucracy & procedures Weak

6. Types of Organisational culture Power culture ◦ Concentrates' power to a few people. ◦ Few rules, personal communication ◦ Swift decisions ◦ Associated with  Centralised decision making  Autocratic leadership Role culture ◦ Clearly defined roles and job titles ◦ Little creativity ◦ Difficult to adapt to change ◦ Power from role ◦ Associated with  Beaureaucratic leadership BUSS4.10 Culture The AQA specification states that types of organisational culture include: power, entrepreneurial and task Can you define all the terms used within this slide? Office culture

7. Types continued Entrepreneurial culture ◦ Risk taking and innovation are actively encouraged and rewarded, whilst failure is not criticised ◦ Associated with  Decentralised decision making  Democratic leadership Task culture ◦ Small teams projects through cooperation/ team work ◦ Individuals empowered – independence/ control ( team may have own objective – risky) ◦ Flexible and adjustable ◦ Associated with  Matrix structures  Delegation Person culture ◦ People with similar backgrounds, training and experience (university/ legal) ◦ Power lies in each group of individuals – freedom to make own decisions ◦ Conflict between individual/ organisation objectives

8. Apple Culture: http://www.youtube.c om/watch?v=j8hsCx7 FFNk http://www.youtube.c om/watch?v=j8hsCx7 FFNk http://www.youtube.c om/watch?v=f60dheI 4ARg http://www.youtube.c om/watch?v=f60dheI 4ARg No more ‘what would Steve do’. How important is leadership to culture? http://www.youtube.c om/watch?v=kZSBR Gf7bkw http://www.youtube.c om/watch?v=kZSBR Gf7bkw What is the culture like at Apple?

9. Test of knowledge What culture do you think we currently have in Bilborough College? What culture do you recommend we employ to maximise performance? + Justify why it would impact on our performance Which is the least significant culture? Which would damage performance and should be avoided? Mix and match sheet

10. Reasons for changing organisational culture Growing firms need to adapt ( Change in owners / leaders ◦ A change in ownership mean a change in culture? Change in corporate objectives Change in size ◦ Mergers and takeovers can often mean businesses with different cultures joining together ( Role vs Person??) Responding to market conditions ◦ New competition ◦ Economic climate – entrepreneurial culture? BUSS4.10 Culture How might the organisational culture of a business have to change to respond to different functional strategies?

11. Problems of changing organisational culture Resistance to change - staff may resist change – senior management may not model behaviour. New leadership may be required to convince – role culture is best. Security – Staff know what is rewarded and what is disapproved of… Expensive – New core values, new mission statement – new stationary, new equipment, new layout. New staff training to adjust to new culture ( new roles, new freedom) Time consuming. BUSS4.10 Culture Read the Business Week article on how to change corporate culture Changing culture at Boardroom level

12. Critical factors to ensure change occurs Changing Organisational Culture Obtain Commitment New Objectives and Mission Statement Staff Rewards Staff Training Staff Participation Be Positive

13. The importance of organisational culture Impact on staff motivation ◦ Communication ◦ Retention ◦ Personnel performance indicators Effects decision making ◦ Speed ◦ Level of involvement ◦ Scientific v Intuition Competitiveness of the business ◦ Innovation ◦ Adaptability Brand image ◦ Consumer perception ◦ Stakeholder opinion BUSS4.10 Culture

14. Questions 1. What is meant by the term organisational culture? 2. How might a company’s organisational culture influence its attitude to risk taking? 3. How might a company's organisational culture influence the degree of resistance to change in that organisation? 4. Explain two ways in which management might bring about change in culture? 5. Explain one reason for and one problem of changing a organisations culture? 6. Consider why an organisational culture is important to a firm?

15. Activity Think about the type of organisation you would like to work for in the future - what sort of culture would it have? Watch this video about the top 100 organisations to work for in 2009 List 3 common factors you would expect to find in the culture of these organisations Explain how the culture of an organisation can impact upon its overall performance BUSS4.10 Culture What is the culture of your school, college or workplace? How does this impact upon day to day activities?

16. Essay Employees at Google enjoy a creative, relaxed and innovative culture. The open plan offices, informal structure and entrepreneurial culture help to create a fun working environment. With reference to Google and/or other businesses you have studied to what extent does the culture of a business determine its ability to maintain competitiveness? BUSS4.10 Culture

17. Culture Culture at IKEA Good Culture! Culture at IKEA Culture at RBS Toxic Culture! Culture at RBS

18. Task 1. Factors influencing the culture of an organisation and the cultural differences within an organisation. 2. The impact of organisational culture on business strategies and performance. 3. The reasons for changing organisational culture. 4. Ways of changing organisational culture 5. Problems with changing an organisational culture.

19. Possible business examples Barclays Apple Virgin Disney Toyota NHS Google John Lewis News international / News of the World. RBS Enron Zappos Ikea Southwest airlines Royal Mail Kodak Ikea Sony BBC Kraft Starbucks

20. Your task Each group will be given a research area. Put together a presentation covering all the criteria listed on the ‘research areas sheet’. Your presentation should include theory and examples. (Theory first – then examples) Videos may included for your examples but there must be an accompanying slide explaining what they video showed – bringing it back to culture and why it links in with your ‘bullet point’. All examples must be put into your own words – no copying information straight off the internet. Use the research grids to help with this. Your examples for your presentation should be based on the research grids you have completed. You will hand in your research grids for your 4 examples and these will be shared with the rest of the group.

21. Example for Bullet point one: Factors influencing the culture of an organisation. Leadership is one of the factors that influence the culture of an organisation. Poor leadership can create a ‘toxic culture’. This was the case of what happened at Enron.

22. Culture at Enron: What? Eron grew from nowhere to be Americas 7 th largest company, employing 21,000 staff in over 40 countries. But it turned out the business was involved in an elaborate scam. Enron lied about its profits and was discovered to be guilty of a range of shady dealings, including concealing debts. Shareholders were duped as were customers and suppliers. As the depth of the deception came to light, investors and creditors retreated forcing the company to go into bankruptcy in December 2001. Why? Central to the scandal was the role of Enron’s leadership and in particular the CEO Jeffrey Skilling. He encouraged a culture of deception. He had created a ‘toxic culture’ within the organisation. He was convicted in 2006 relating to Enron’s financial collapse and was given a 24 year prison sentence. http://www.youtube.com/watch?v=2GdvKh3Gr3E http://www.youtube.com/watch?v=2GdvKh3Gr3E Which shows? The leadership and management of an organisation can have a significant impact on the organisational culture. Jeffery cannot solely be blamed for the corruption in the company; others in the business went along with deception. Culture is defined as ‘the way we do things around here’ ‘the values, beliefs of the people working in an organisation’. Therefore there must have been a culture in place where employees / management thought that these working practices were acceptable and it is likely that this culture had filtered down from the top.