1. Managing Organisational Cultural Change
17/11/2018
310HRM
Managing Organisational Cultural Change
( )

2. Learning Outcomes Explore the concept of organisational Culture
Understand how it shapes organisational success and performance
Explore the key debates around changing organisational culture
Evaluate a case study strategy for managing cultural change.

3. Group Discussion
A well known definition of organisational culture is “the way things are done here” Before we explore some other definitions: In small groups think about what informs and/or influences the way things are done in an organisation and list them on a flip chart. Be prepared to share your ideas with the class in 10 minutes.

4. Culture Most of us have some idea about what ‘Culture’ is Generally
But it is difficult to define
Generally
It’s the way we do things around here
Reflecting underlying assumptions about ‘what is acceptable and not acceptable’
The way work is performed, what actions and behaviours are encouraged and discouraged

5. Definitions CULTURE - Can be referred to as… ‘software for the mind’….
‘the collective programming of the mind which distinguishes the members of one group or category of people from another’
Hofstede 1994

6. Culture
Senior (2010)
“customary and traditional way of thinking and doing things, which is shared to a greater or lesser degree by all members, and which new members must learn and at least partially accept in order to be accepted”

7. Cultural Behaviours
“…. the collection of traditions, values, policies, beliefs and attitudes that constitute a pervasive context for everything we do or think in an organization
Reinforced through rites, rituals, stories, patterns of communication, behaviour and the psychological contract
[Mclean & Marshall (1993)]

8. Three Levels of Culture
Artefacts : Visible, physical space, layout, language, overt behaviours
Values : Direct behaviour, goals, written values
Underlying assumptions : Taken for granted, the actual culture
[Schein E. (2004)]

9. The Organisational Iceberg
Formal Organisation
Goals
Strategy
Structure
Systems and procedures
Products and services
Financial resources
Management
Informal Organisation
Values, attitudes and beliefs
Leadership style and behaviour
Organisational culture and norms of behaviour
Power, politics and conflicts
Informal groupings

10. Culture and behaviour Behaviours Observable Reportable
Attitudes and values
Beliefs
Unconscious

11. Ingredients of Culture
17/11/2018
Ingredients of Culture
100 definitions of culture were examined by Kroeber and Kluckhohn cited in Senior (2010) and the key themes in the definitions were:
Artefacts
Language in the form of jokes, metaphors, stories, myths and legends
Behaviours Patterns in the form of rites, rituals, ceremonies, and celebrations
Norms of behaviour
Heroes ( past and present employees who do great things)
Symbols and symbolic actions
Beliefs, values and attitudes
Ethical codes
Basic assumptions about what is important
History
( )

12. Cultural Web The Paradigm Johnson G. (2002) Control Systems Symbols
Power
Structure
Organisational
Routines
Rituals
Stories
Johnson G. (2002)

13. Seven Influences on Culture
History
Primary functions
Goals and Objectives
Size
Location
Management and Staffing
Environment

14. 3 Schools of thought about Changing Organisational Culture
Symbolic
Functionalist
Realist

15. Organisational Culture “IS” Symbolic Perspective
Culture is something an organisation IS rather than a variable that can be manipulated by managers
Culture is to the organisation as personality is to the individual and exists only by being created and re-created through group social interaction
All an organisations features and behaviours, including systems, procedures, politics and processes are part of its culture.
The deepest levels of culture are invisible and as a consequence, extremely difficult to discover let alone change
Culture cannot be manipulated as a whole or turned on or off
It can be intentionally influenced
(Meek 1988 )

16. Culture as Something an Organisation “HAS” Functionalist View
Schein (2004) sees “Culture as a variable which an organisation “HAS” such as the set psychological pre-dispositions that members of an organisation possess which lead them to act in certain ways”
Implication is that culture is something which might feasibly be managed
Culture can be objectively identified through visible artefacts by observing the tangible layers the deeper meanings and basic assumptions of the culture can be understood.

17. Realist Perspective
Accepts employees values, beliefs cannot be changed
Changing behaviour is all that can be hoped to achieved
Values, convictions and taken- for- granted assumptions are deep –rooted, largely go unchallenged anyway and remain constant
Values and changes to them cannot be measured
Behavioural change and compliance is more realistic and easier than changing values and attitudes.
Surface elements of Organisational culture are changeable and can be influenced
Over time deeper underlying assumptions may change

18. Group Discussion Which perspective do your views align to and why?
Consider the pros and cons of each view point
Present your answers to the class in 15 minutes

19. Deal & Kennedy (1982) Peters & Waterman (1982)
Organisational culture matters
The right culture can lead to improved performance
Implicit in this viewpoint is the assumption that an organisation culture is a tangible phenomenon and can be changed
The assumption is also that through a strong culture an organisation can gain competitive advantage and corporate success

20. Class Activity
Read the Journal Article “Cultural Change that Sticks by Jon R. Katzenbach, Ilona Steffen, and Caroline Kronley
In groups identify the key themes outlined in the article
What are the key suggestions for managing cultural Change
Be prepared to share your answers in 15 minutes

21. Why Manage or Change Organisational Culture
Peters & Austin (2012) suggest:
In strong cultures the values & goals of staff and the organisational managers are closely aligned
Differences and/or conflicts are eliminated
Employees have strong commitment
Lower levels of turnover
Less stress
Reduced workplace problems
A strong culture creates consensus and unity
This is motivating and binding

22. Paradox Senior (2012) suggests
successful organisations often have a strong cultural identity
The paradox is that stronger organisational cultures are harder to change

23. Culture Change Checklist Open University (2000)
Senior managers must be explicit about the corporate values they desire. They should communicate and stress them constantly to ensure there is no confusion
The values are broken down and operationalized for employees through competences, training schemes, targets etc.
Employees are encouraged by a whole range of processes and mechanisms to adopt and display the new values – rewards and sanctions.

24. Culture Change Checklist Open University (2000)
Employees are recruited and appraised in terms of their capacity and willingness to demonstrate the corporate values within their everyday behaviour. This may be reinforced with quite public and sever sanctions if the correct behaviour is not displayed.
The values seem to make natural sense to the employees. They are not too divergent, if at all from the employees and the organizations view of what they should be doing – what the priorities of the organization should be or how they as individual employees ought to be behaving.
The new or desired cultural values provide an integrating theme around which numerous aspects of the way in which the organization works are built. It works best if the values supply the basis for a coherent architecture.

25. Typical Framework for managing Cultural Change
Kilman-Five Steps
Surfacing actual norms (more or less equivalent to surfacing the culture)
Articulating new directions
Establishing new norms
Identifying Culture Gaps
Closing Culture Gaps
Thornhill et al (2000)

26. This framework emphasises the importance of :
Knowing and understanding the current culture
Strategic direction of the organisation
Working out the desired strategy and culture
Identifying gaps between actual and desired culture
Taking steps to bridge the gaps

27. Summary Understanding and changing organisational culture is complex
There are a number of view points on the subject and an appreciation of this will enable an informed attempt at change management

28. Learning Outcomes-have we covered everything
Explore the concept of organisational Culture
Understand how it shapes organisational success and performance
Explore the key debates around changing organisational culture
Evaluate a case study strategy for managing cultural change.

29. References
Buchanan, D and Huczynski, A. (2010) Organizational Behaviour An Introductory Text, (7th ed.), Harlow: Prentice Hall
Hughes, M. (2006) Change Management: A Critical Perspective, London, CIPD
Mullins, A. (2010), Management and Organisational Behaviour (9th ed.) Harlow: Prentice Hall
Schein, E H (2004) Organisational Culture and Leadership (3rd ed) San Francisco Jossey-Bass
Senior B, Swailes S, Organisational Change (4thed) 2010 ,Harlow, Prentice Hall,
Thornhill A et al Managing change-A Human Resource Strategy Approach, (1st ed) 2000 Harlow, Prentice Hall