1. Understanding Organisational Context 2e
Janaury 2004
Understanding Organisational Context 2e
Slides by Claire Capon
Chapter 2
Culture and organisations
Organisational culture
Cultural web
Deal and Kennedy’s cultures
Copyright Claire Capon 2004

2. Figure 2.4 The cultural web
Source: Johnson, G and Scholes, K (1999) Exploring Corporate Strategy, 5th edn, Prentice Hall Europe.

3. Organisational culture
Organisational culture is determined by the values of the organisation
Values are the basic concepts and beliefs of an organisation

4. Weak culture organisations
No clear and easily understood values
Employees will not know how to respond to particular situations in the workplace

5. Weak culture organisations
External environment is poorly managed
Tend to be less successful than strong culture organisations

6. Strong culture organisations
Have a clear and explicit philosophy about how to conduct business
Management will shape the values and beliefs

7. Strong culture organisations
Ensure values are:
- relevant to the external environment
- communicated to and understood by all employees

8. Strong culture organisations
Employees know how their employer wants them to respond in given situations
Manage the external environment well
Likely to be successful

9. The cultural web ...
… represents the determinants of organisational culture
… considers taken-for-granted assumptions about the organisation and physical indicators of organisational culture

10. Routines ...
… are the scheduled and deliberate practices of day-to-day life in an organisation
… ensure the smooth running of the organisation

11. Rituals ... … are used to reinforce routines
… include induction and training courses
… and routines will be very clear and important in strong culture organisations

12. Stories... … represent an organisation’s history
… highlight significant events and people in the past

13. Stories ...
… are told to new organisational members by existing members
… highlight acceptable and unacceptable behaviour in the organisation

14. Symbols ... … represent the power an individual has in an organisation
… indicate the value of an individual to the organisation

15. Power structures ...
… are groups of individuals with power underpinned by a common set of values and beliefs
… often based on technical or professional expertise

16. Organisational structure ...
… determines where the power will exist in the organisation
… simple structure - power rests with the owner
…functional structure - power rests with senior management

17. Organisational structure ...
… divisional structure - power is spread throughout the organisation
… matrix structure - power rests with individuals in the matrix

18. Control systems ... … monitor what is important to the organisation
… can monitor money, budgets, people - rewards systems, work - efficiency and effectiveness

19. Deal & Kennedy’s cultures
The tough-guy macho culture
The ‘work hard/play hard’ culture
The ‘bet your company’ culture
The process culture

20. The tough-guy macho culture
Decision making is short term, rapid and risky
Success is short term for the organisation and individuals
Failure is condemned, often by dismissal

21. The tough-guy macho culture
Almost impossible in the tough-guy macho culture are:
- long-term success
- the creation of a strong culture

22. The ‘work hard/play hard’ culture
Decision making is short term, rapid and low risk
Often found in customer- oriented organisations

23. The ‘work hard/play hard’ culture
Feedback is clear - targets have been met, or not met, e.g. in a sales organisation
Motivation focuses on staff (individually and in teams) to succeed by meeting targets

24. The ‘bet your company’ culture
Decision making is long term and high risk
Large and long-term investment in R & D and innovation
Successful employees are mature and respect authority and technical ability

25. The process culture Decision making is long term and low risk
External environment is predictable and stable
Job titles and roles are important

26. The process culture Employees focus on:
- being methodical and punctual
- how things are done