1. Key influence on the change process
Culture
Key influence on the change process

2. Organisational culture
The unwritten code that affects the attitudes and behaviour of staff, approaches to decision making and the leadership style of management
The way we do things around here

3. Sources of culture Company routines Formal controls
Organisational structures
Power structures
Symbols
Rituals & myths

4. Charles Handy
Power culture
Role culture
Task culture
Person culture

5. Bureaucratic culture Emphasis on roles & procedures Risk averse
Generalised, non-commercial goals
Precisely defined responsibilities & goals
Hierarchical structure

6. Entrepreneurial culture
Emphasis on results & rewards for individual initiative
Risk taking
Quantitative and financial goals
A task culture with flexible roles
Flatter & more flexible structure giving more local control

7. Organisations can be ... Marketing-orientated Production-orientated
Technology-orientated

8. Can culture change?
Changes in the external environment may require a change in culture – values may no longer be appropriate (John Lewis)
Existing culture can be a barrier to change
Role of leader & senior management is crucial

9. Importance of culture
Determines how firms respond to changes in their environment
No right or wrong culture – CONTEXT!
Relevance to success of entering Chinese market

10. Exam question
BP is a multinational energy business that has 92,000 employees and operates in 100 countries. When a new chief executive was recruited internally at BP, he promised to improve the company’s disappointing performance by quickly changing its culture to become more innovative and more responsive to its customers. How easy do you think it is for a new chief executive to change the culture of an organisation quickly? Justify your answer with reference to BP and/or other businesses that you know. [40 marks]

11. Factors that promote & resist change
Clarity of objectives
planning
Resources
Training
Impact on people
Resistance to change
Effectiveness of teams
Nature of organisational structure
Culture
External factors

12. Learning objectives
Consider role of leader & culture in bringing about successful change
Consider role of culture in success of mergers & takeovers
Essay on page 479 – 40 marks
Perfect exam practice! Make sure you use at least 4 different companies in your examples/analysis