1. What is organisational culture? The unwritten code that affects the attitudes and behaviours of staff, approaches to decision making and the leadership style of management.

2. Further definitions: Organisational Culture “The values and standards shared by people and groups within an organisation” “The way we do things around here” “The values, attitudes and beliefs of the people working in an organisation that control the way they interact with each other and with external groups” “The attitudes, traits and behavioural patterns which govern the way individuals interact with others” “Organisations have values, policies, rules and guidelines which help them create an image of their own” “The principles, ideologies, beliefs and polices of an organisation which make it different from others” “The collection of briefs norms and values that are shared by groups of people” All of the above!

3. Types of Organisational Culture Purpose... Creating a sense of “who we are”, “what we do” and “what we stand for”...  Shared meanings that helps everyone understand how to act & behave  Strong culture = internally consistent The culture MUST be suited the environment the business operates in...allowing response & reaction to market changes....

4. Sources of Organisational Culture  Company routines  Formal controls  Organisational structures  Power structure  Symbols  Rituals and myths ‘Organisational culture is the key to organisational excellent....and the function of leadership is the creation and management of culture” (Edgar Schien) Stretch & challenge corner: Additional reading: see hand outsee hand out

5. Links to other topics:  Organisation structures  Delegation  De/centralised  Leadership styles Leadership styles....HUGE influence on culture & philosophy of the organisation All the way through....THINK about business EXAMPLES that you could use to support your points!

6. Reading Club Robert Cooke Edgar Schein Hofstede Charles Handy HW Reading

7. What is Organisational Culture? How do the theorists define culture? Schein “The pattern of basic assumptions that a group has invented, discovered or developed to cope with its problems of external adoption or internal integration, that has worked well and are taught to new members as the way to perceive, think, feel and behave.” Handy “ D eep-set beliefs about the way work should be organised, the way authority should be exercised, people rewarded, people controlled.” www.time2resources.co.uk

8. Types of Culture Edgar Schein 3 levels Culture is formed over time www.time2resources.co.uk Consider: How visual is each level to an outside observer? Which is the most difficult to understand?

9. Classifying Organisational Culture Charles Handy (1981) Classification system.... PowerRole TaskPerson Bureaucratic & entrepreneurial

10. “THERE IS NO SUCH THING AS A RIGHT CULTURE, WHAT MATTERS IS WHETHER THE CULTURE IS RIGHT FOR THE BUSINESS CIRCUMSTANCES” Do you agree? A04

11. Culture orientation... Marketing ProductionTechnology  For each...apply a business example

12. Consolidation Questions Reasons for changing culture? Problems of culture? How to change organisational culture? Is culture important?

13. Changing organisational Culture.... Possible reasons for change? The existing culture can hinder growth, development and success. Some examples when to change: Product-led – respond to changing market conditions (become task- based) Recently privatised business (become profit orientated) Merger or takeover Need to motivate staff (become person-based)  Can you think of any more?

14. The importance of organisational culture Influences...  Responding to their external environment  Culture adopted- influence marketing skills & financial controls  De/centralised, tall/ fall structure influence  Mission statements  Leadership styles, delegation ‘Focus not on what the organisation SAYS but on what it DOES’ Corporate culture, change management & the approach of small & large organisations are important to consider when answering questions on management structure & organisation

15. June 2012 The retailer, the John Lewis Partnership, is owned by its employees and has a strong culture that focuses on employee involvement and welfare. In the recent recession, John Lewis still managed to produce good financial results. To what extent do you think that the culture of an organisation determines its financial success in a changing external environment? Justify your answer with reference to John Lewis and/or other organisations that you know. (40 marks)

16. To what extent do you think that the culture of an organisation determines its financial success in a changing external environment? Justify your answer with reference to John Lewis and/or other organisations that you know. (40 marks) The retailer, the John Lewis Partnership, is owned by its employees and has a strong culture that focuses on employee involvement and welfare. In the recent recession, John Lewis still managed to produce good financial results.