Click here to load reader

DIAGNOSING THE ORGANISATIONAL CULTURE … volume jitbm/6 ORGANISATIONAL CULTURE.pdf · DIAGNOSING THE ORGANISATIONAL CULTURE OF THE ... requires changes in underlying assumptions

  • View
    232

  • Download
    0

Embed Size (px)

Text of DIAGNOSING THE ORGANISATIONAL CULTURE … volume jitbm/6 ORGANISATIONAL CULTURE.pdf · DIAGNOSING...

  • International Journal of Information Technology and Business Management 29

    th June 2015. Vol.38 No.1

    2012-2015 JITBM & ARF. All rights reserved

    ISSN 2304-0777 www.jitbm.com

    51

    DIAGNOSING THE ORGANISATIONAL CULTURE OF THE

    UNIVERSITY OF KIGALI, RWANDA

    TINEGA HARON CHWEYA1

    ONDWARI DAISY NYANGANYI2 KEROSI JOSEPHAT

    BOSIRE3

    Lecturer in the Department of Information Technology, School of Pure and Applied Sciences, Mount Kenya

    University (MKU), Rwanda.1

    Lecturer in the Department of Information Technology, Faculty of Science and Technology, University of Kigali -

    Rwanda2

    Senior lecturer department of finance, Faculty of Business and management, University of Kigali Rwanda3

    [email protected] [email protected] [email protected]

    ABSTRACT

    Organizations are constantly transforming in order to keep pace with the rapid changes in business environment.

    However, if the underlying values remain the same, all the proposed changes might be in vain as people will

    continue working in a same way than they are used to. Change is not just adopting new systems and methods, but it

    requires changes in underlying assumptions and values, hence organisational culture. This research used Quinn

    and Rohrbaugh s Competing Values Framework in diagnosing the overall cultural profile of the organisation and

    dominant characteristic traits. By the help of the Organizational Cultural Assessment Instrument (OCAI), the

    researchers were able to identify the current and preferred culture that exists in the University of Kigali and the

    extent to which this is perceived to be appropriate by those involved at the University. The OCAI printed

    questionnaire was filled by thirteen full time academic staff. It was observed that market culture is the most general

    culture however, the academic staff feel that adhocracy culture should be preferred.

    Keywords: Competing Values Framework, Corporate Culture, Cultural Profile, Organisational

    Culture.

    INTRODUCTION

    In spite the fact that it is difficult to accurately define

    what organization or corporate culture is, majority of

    researchers agree to the definition that describes

    organization culture as deeply held values, beliefs

    and assumptions, symbols, heroes, and rituals that

    tends to be shared by all or most members of some

    social group and are passed from older members to

    the younger members [14]. Other researchers define

    organization culture as practices established by a

    strong organizational belief system and that dictates

    what people believe to be the best thing to do in

    given circumstance [13]. This views are supported by

    Kropp who views organization culture as the shared

    meanings or assumptions, beliefs, and understandings

    that is apprehended by a particular group or a section

    in the society about its problems, practices, goals and

    even on the way then work as a team[15] [3] [9].

    Organisational culture is now considered as the major

    determinant of the organization success [1] especially

    through improved employees morale that results in

    creating organizations competitive advantage [9].

    Organization culture has the potential of shaping

    employee behavior and structures perceptions of the

    organization and it sums up the way the business

    functions [5] [12]. Organization culture also called as

    corporate culture is organisation-specific [11] and

    therefore differs from one organization to the other in

    terms of symbols, heroes and rituals [4].

    http://www.jitbm.com/mailto:[email protected]:[email protected]:[email protected]

  • International Journal of Information Technology and Business Management 29

    th June 2015. Vol.38 No.1

    2012-2015 JITBM & ARF. All rights reserved

    ISSN 2304-0777 www.jitbm.com

    52

    Organization culture not only emanates from the

    founders beliefs, national cultures and industry

    pressures [9]. It can also originate from the behavior

    of leaders among followers [2] and it is thought that

    the types of practices involved arise from the basic

    assumptions managers make in developing and

    attempting to implement visions/philosophies and/or

    business strategies necessary for the companys long-

    term survival[11]. When these are adopted by the

    owners and employees, the assumptions become part

    of the companys culture [11]. According to this

    view, the resulting attitudes and processes reflect the

    creators view and definition of organisational culture

    [18].

    Diagnosing Organization Culture in Organization

    using the Competing Values Framework (CVF)

    The Competing Values Framework (CVF) has

    received wide acceptance both in theory and in

    practice as one of the most important models in the

    history of business study that has proven its worth

    since its conception in the mid-1980s in determining

    both the type and strength of cultures prevalent in an

    organisation. Whilst initially intended primarily as a

    tool for undertaking cultural audits, it has been shown

    to be also of use as a guide and indicator of cultural

    change, employee motivation and development of

    leadership skills [16]. According to the competing

    Value Framework, culture exists in four forms: Clan,

    Hierarchy, Market and Adhocracy forms now widely

    used for culture audit and comparison purposes as

    shown in figure 1 below [1].

    Figure 1: Competing Value Framework [1]

    The clan culture is distinctive in organizations that

    focus on the internal flexibility, concern of its

    employees and sensitivity for customers. Such

    organizations emphasize on human relations based on

    co-operation, consideration, agreement, fairness and

    social equality. Employees find these organizations

    as very friendly places to work where people share a

    lot of themselves. It is like an extended family where

    leaders are thought of as mentors and loyalty and

    tradition hold the organisation together. The

    employees are committed to the company as well as

    the company to its employees. The work is done by

    teams that can have quite autonomous roles and the

    customers are seen as partners [10] [17].

    The hierarchical culture is evidenced in organizations

    that focus on internal maintenance. Such

    organizations seek to achieve stability and control

    through clear task setting and enforcement of strict

    rules. In these organizations, leaders are viewed as

    coordinators and organizers and they always toe the

    party line. It places emphasize is on economy,

    formality, rationality, order and obedience. However,

    the relatively faster changing environment

    emphasizes nowadays other cultural elements [10]

    [17]

    Organizations that practice the adhocracy culture

    seeks to concentrate on the external positioning with

    a high degree of flexibility and individuality that is

    http://www.jitbm.com/

  • International Journal of Information Technology and Business Management 29

    th June 2015. Vol.38 No.1

    2012-2015 JITBM & ARF. All rights reserved

    ISSN 2304-0777 www.jitbm.com

    53

    supported by an open system that promotes the

    willingness to act. Such organizations are very

    dynamic, entrepreneurial and creative place to work

    where people stick their necks out and take risks. In

    these organizations, leaders are viewed as visionary

    and innovative. And success is measured by

    producing unique and original products and services.

    These organizations embrace creativity,

    experimentation, risk, autonomy, and responsiveness.

    In adhocracy culture, the environment forces the

    organizations to be very flexible in their actions.

    Employees are motivated to be innovative, creative,

    and entrepreneurial. However, the external factors

    guide the development of this type of organization

    [10] [17]

    The Market culture is typical for organizations that

    work towards clear and rational goals that are

    achieved through high productivity and economical

    operation. Tends to be results orientated and

    concentrate on getting the job done and its members

    value competitiveness, diligence, perfectionism,

    aggressiveness, and personal initiative. Its leaders are

    inclined to be hard-driving producers intent on

    outperforming competitors and being at the forefront

    of their field of endeavor by maintaining stability and

    control. The term Market is not to be confused with

    the marketing function or with customers in the

    market place. It represents a focus on transactions

    with external bodies such as suppliers and customers.

    The effectiveness of this type of company is viewed

    through, for example, profitability and market shares.

    The main values are competitiveness and

    productivity, which are measured also between the

    organisational units and even between individuals

    [10] [17]

    Organisational Culture Assessment Instrument

    (OCAI)

    Majority of the researchers prefer the use of the [19]

    Competing Values Framework in diagnosing the

    overall cultural profile of the organisation and

    dominant characteristic traits that exist in the

    organizations. The OCAI has now been used in

    almost 10,000 organizations worldwide in sectors

    such as private sector, public sector, education,

    health care, new start-ups, NGOs [6]. The OCAI was

    developed [19] and it seeks to establish the

    organization's dominant culture type characteristics

    and overall culture profile in terms of the four

    cultural forms mentioned above and six key

    dimensions of organisational culture that include

    1. Dominant Characteristics dimension that seeks to

    measure the level of teamwork and sense of

    belonging, creativity and dynamism, focus on goals

    and competition, reliance upon systems and emphasis

    on efficiency [19]

    2. Organizational Leadership dimension that

    diagnoses the leadership styles and approaches that

    permeates the organization [19]

    3. Management of Employees dimension seeks to

    diagnose how the employees are treated, degree of

    consultation, participation and consensus, working

    environment [19].

    4. Organizational Glue dimension diagnoses the

    bonding mechanisms that hold the organization

    together such as cohesion and teamwork, loyalty and

    commitment, entrepreneurship and flexibility, rules

    and policies, goal orientation and competitiveness

    [19].

    5. Strategic Emphasis dimension that evaluates the

    organisational strategy drivers; long term

    development of human capital, innovation, stability

    and competitive advantage, growth and acquisition,

    achievement of goals [19].

    6. Criteria for Success dimension that seeks to bring

    out how the organisation define success and who gets

    rewarded profits, market share and penetration,

    sensitivity to customers and concern for people,

    development of new products and services,

    dependability and optimum cost [19].

    METHODOLOGY

    The organisation under study is a higher learning

    university that was formed in 2013 as an emerging

    institution specializing in Higher Learning Education.

    By the time of the research, the institution had

    employed 13 full time academic staff. This survey

    used the Organization Culture Assessment

    Instruments (OCAI) tool in data collection [7]. In

    answering the questions, the respondents are required

    to respond on the current situation and the preferred

    situation in the near future. Moreover, The OCAI

    questionnaire is divided into six sections: the first

    section measures the dominant characteristics, the

    second section measures the organisational

    leadership, the third section measures the

    management of employees, the fourth section

    measures the organisation glue, the fifth section

    http://www.jitbm.com/

  • International Journal of Information Technology and Business Management 29

    th June 2015. Vol.38 No.1

    2012-2015 JITBM & ARF. All rights reserved

    ISSN 2304-0777 www.jitbm.com

    54

    measures the strategic emphases, and finally the sixth

    section measures the criteria of success. Each item

    had four alternatives, which correspond with the four

    cultural types. The questionnaires were printed and

    distributed by the researchers.

    The red line represents the preferred culture while the

    green line represents the current culture in the

    university. In measuring the discrepancy between

    present and preferred culture, the differences of over

    10 points between the current and the preferred

    sections are especially relevant and should induce the

    organisation to take action. On other hand, difference

    less than 10 points does not mean no action is

    required [7].

    FINDINGS AND DISCUSSIONS

    Organisational characteristics / Dominant

    characteristics

    Figure 2 below represents the results obtained when

    the researcher assessed the dominant characteristics

    in the university. It can be observed that the market

    culture and hierarchy culture scores the highest (both

    at 28 points) in describing the organization

    characteristics. This means that the dominant

    characteristics are formalized, structured and result-

    oriented. Currently, competition, procedures and

    getting the job done govern what people do. The

    other cultural types are clan culture that scored 26

    points and adhocracy culture that scored 20 points.

    Figure 2: Organisation dominant characteristics

    From the table 1 below, Adhocracy culture difference

    between the current and the preferred situation is

    equal to +10 points calling for an urgent action on

    improving dynamism, entrepreneurship, and

    creativity at work place. Clan culture decreases with

    7 points and the hierarchy culture decreases by 5

    points calling for attention. Market culture increases

    by 2 points.

    Clan Adhocracy Market Hierarchy

    http://www.jitbm.com/

  • International Journal of Information Technology and Business Management 29

    th June 2015. Vol.38 No.1

    2012-2015 JITBM & ARF. All rights reserved

    ISSN 2304-0777 www.jitbm.com

    55

    Now 26 20 28 28

    Preferred 19 30 30 23

    Table 1: The summary of the dominant characteristics in the organization

    Organizational Leadership

    From figure 3 below it can be observed that currently

    the leaders in the organization are considered to be

    hard drivers, producers and competitors (market

    culture: 29 points). And they have more qualities to

    be considered as coordinators and organizers

    (hierarchy culture: 28 points). However, they are

    least considered to be innovators and risk takers

    (adhocracy culture: 19 points).

    Figure 3: Organisation Leadership

    From table 2 below, both in adhocracy culture and in market culture the point difference between the current and the

    preferred situation is greater than, or equal to, 10 (+11 and -11 points respectively). The clan culture increases by 5

    points while the hierarchy culture decreases by 4 points.

    Clan Adhocracy Market Hierarchy

    Now 26 19 29 28

    Preferred 30 30 18 24

    Table 2: Summary of the organisation leadership

    Management of Employees

    From figure 4 below it can be observed that market

    culture scores 34 points this means that hard-driving

    competitiveness, high demands and achievement are

    the most prevalent. Both the hierarchy culture and

    clan culture scored 23 points meaning that security of

    employment, conformity, predictability and stability

    in relationships, teamwork, consensus and

    participation are not taken seriously into account in

    employee management. Adhocracy culture scored the

    least on employee management and therefore

    individual risk taking, innovation, freedom and

    uniqueness are least prevalent on employee

    management.

    http://www.jitbm.com/

  • International Journal of Information Technology and Business Management 29

    th June 2015. Vol.38 No.1

    2012-2015 JITBM & ARF. All rights reserved

    ISSN 2304-0777 www.jitbm.com

    56

    Figure 4: The management of employees

    In addition table 3 below shows that in market culture

    the point difference between the current and the

    preferred situation is greater than 10 (-11 points)

    which means that the employees prefer the

    management to reduce on hard-driving

    competitiveness, high demands. The clan culture

    increases by 6 points, the adhocracy culture increases

    by 3 points and the hierarchy culture increases also

    by 2 points and therefore clan culture, adhocracy

    culture and hierarchy culture does not call for urgent

    action.

    Clan Adhocracy Market Hierarchy

    Now 23 22 34 23

    Preferred 29 25 23 25

    Table 3: Summary of the results on management of the employees

    Organization Glue

    From figure 5 below, it can be observed that the glue

    that holds the organization together is formal rules

    and policies. Maintaining a smooth-running

    organization is important (hierarchy culture: 29

    points). The next to the hierarchy is the loyalty and

    mutual trust. Commitment to this organization runs

    high: clan culture scores 28 points. Third we see an

    emphasis on achievement and goal accomplishment.

    Aggressiveness and winning are common themes:

    market culture scores 25 points. Finally we see

    commitment to innovation and development. There is

    an emphasis on being on the cutting edge (adhocracy

    culture: 20 points).

    http://www.jitbm.com/

  • International Journal of Information Technology and Business Management 29

    th June 2015. Vol.38 No.1

    2012-2015 JITBM & ARF. All rights reserved

    ISSN 2304-0777 www.jitbm.com

    57

    Figure 5: Organisation Glue

    From table 4 below it can be observed that there is a

    greater than 10 (-11 points) point difference between

    the current and the preferred situation on hierarchy

    culture. Respondents feel that there is the need to torn

    down on maintaining a smooth-running organization

    by reducing a bureaucracy in systems. Further the

    respondents feel that urgent action is needed in

    improving the adhocracy culture. However,

    respondents feel that no urgent action is required on

    market culture and clan culture. the market culture

    increases also by 2 points and the clan culture

    difference is 0 points.

    Clan Adhocracy Market Hierarchy

    Now 28 20 25 29

    Preferred 28 29 27 18

    Table 4: Summary of the results on the organisation glue

    Strategic Emphasis

    From figure 6 below first we see competitive actions

    and achievement: Attaining targets and winning in

    the marketplace are dominant (market culture: 30

    points). Second, the organization emphasizes

    permanence and stability: Efficiency, control and

    smooth operations are important. These are strategic

    emphases according to hierarchy culture (26 points).

    Third, we see acquiring new resources and creating

    new challenges by trying new things and prospecting

    for opportunities are valued third most important

    (adhocracy culture: 25 points). Lastly, clan culture is

    the least with 20 points. This means that an emphasis

    is on human development; high trust, openness, and

    participation persistence are least on strategic

    emphasis.

    http://www.jitbm.com/

  • International Journal of Information Technology and Business Management 29

    th June 2015. Vol.38 No.1

    2012-2015 JITBM & ARF. All rights reserved

    ISSN 2304-0777 www.jitbm.com

    58

    Figure 6: The strategic emphasis

    Using table 5 below, it can be observed that clan

    culture, the adhocracy culture and the hierarchy

    culture increases by 3points, 5 points and 1 point

    respectively, the market culture decreases by 8

    points. Therefore the difference between the current

    and preferred is less than 10 and therefore it does not

    require urgent action that means the respondents are

    comfortable with both the current and preferred

    findings.

    Clan Adhocracy Market Hierarchy

    Now 20 25 30 26

    Preferred 23 30 22 27

    Table 5: The findings on strategic emphasis

    Criteria of Success

    From figure 7 below it can be observed that

    employees think that the organization is considered

    successful based on winning in the marketplace and

    outpacing the competition. Competitive market

    leadership is key (market culture: 29 points) in

    measuring success of the organisation according to

    the respondents. The respondents also define

    organisational success on the basis of efficiency:

    Dependable delivery, smooth scheduling and low-

    cost production are critical (hierarchy culture: 28

    points). Third, the organization values having the

    most unique or newest products: It is a product leader

    and innovator (adhocracy culture: 25 points). Finally,

    success is determined based on development of

    human resources, teamwork, employee commitment

    and concern for people (clan culture: 19 points).

    http://www.jitbm.com/

  • International Journal of Information Technology and Business Management 29

    th June 2015. Vol.38 No.1

    2012-2015 JITBM & ARF. All rights reserved

    ISSN 2304-0777 www.jitbm.com

    59

    Figure 7: Figure showing the criteria on success

    In table 6 below, it can be observed that the current

    criteria of success is in line with the preferred criteria

    as the difference between the current and preferred is

    less than 10 and therefore it does not require urgent

    action. Specifically, in clan culture, there is an

    increase of 6 points. The hierarchy culture decreases

    by 5 points. The market culture decreases by 1 point

    and finally, the adhocracy culture remains the same

    (i.e. there is no difference between the current and the

    preferred situations).

    Clan Adhocracy Market Hierarchy

    Now 19 25 29 28

    Preferred 25 25 28 23

    Table 6: Summary on the findings on the criteria of success

    The General Organization Culture

    As from figure 8 below, it can be observed that the

    market culture (result-oriented, production, goals and

    targets and competition) is the most dominant culture

    at the institution scoring highest at 29. It is followed

    by the hierarchy culture (structure, procedures,

    efficiency and predictability) which scored 27.

    Finally, the adhocracy culture (a dynamic,

    entrepreneurial, and creative place to work) and clan

    culture (a very pleasant place to work where people

    share a lot of themselves and commitment is high)

    are both at 22. From the above results, it can be

    observed that there is an apparent mixture of cultures

    where an emphasis is placed on result-oriented,

    competition and achieving of goals and targets at the

    University of Kigali.

    http://www.jitbm.com/

  • International Journal of Information Technology and Business Management 29

    th June 2015. Vol.38 No.1

    2012-2015 JITBM & ARF. All rights reserved

    ISSN 2304-0777 www.jitbm.com

    60

    Figure 8: The general organisation culture: Now and Preferred

    Table below measures the discrepancy between

    present and preferred culture. It can be observed that

    all the differences between the current and the

    preferred culture are less than 10 points and therefore

    no action is needed on improving the general culture

    at the institution. However, there is a need to put

    more focus on the adhocracy culture (a dynamic,

    entrepreneurial, and creative place to work) and clan

    culture (a very pleasant place to work where people

    share a lot of themselves and commitment is high)

    which scored the lowest.

    Clan Adhocracy Market Hierarchy

    Now 22 22 29 27

    Preferred 24 28 25 23

    Table 7: The general culture

    CONCLUSION

    This project revealed that the use of the OCAI in

    understanding the employee perception of the

    organization culture provides considerable benefits. It

    helps the management and the new leaders from an

    early identification of the culture they are stepping

    into. Furthermore, the management and new leaders

    can then assess whether they will be encountering

    alignment or misalignment in the future. The tool has

    usefulness in coaching situations and can be an

    effective way for consultants to help an organization

    achieve changes.

    The organisational culture in University of Kigali

    based on this study, is very market oriented. The key

    elements are the productivity and competitiveness.

    Individuals are rewarded when the financial result is

    good or new market shares have been won. Also the

    internal competition between units and individuals is

    hard. The power has been centralized, and the tools

    and procedures exist for different purposes. The

    external market environment guides the actions, but it

    http://www.jitbm.com/

  • International Journal of Information Technology and Business Management 29

    th June 2015. Vol.38 No.1

    2012-2015 JITBM & ARF. All rights reserved

    ISSN 2304-0777 www.jitbm.com

    61

    is seen also as a threat. The preferred situation among

    the respondents is also very clear. Academic staff

    would like the culture be adhocracy culture (a

    dynamic, entrepreneurial, and creative place to

    work).

    REFERENCE LISTS 1. Baker, M. (2002). Organisational Culture,

    Principles of Organizational Behaviour.

    Fincham and Rhodes: Oxford University

    Press.

    2. Block, J. (2003). The leadership-culture

    connection: an exploratory investigation.

    Leadership and Organization Development

    Journal , 318-34.

    3. Bresnen, M., & Marshall, N. (2000).

    Problems in construction: a critical review

    of issues,problems and dilemmas.

    Construction Management and Economics ,

    229-37.

    4. Brown, C. (1999). Towards a strategy for

    project management implementation. South

    African Journal of Business Management

    30(2) , 33.

    5. Buch, K., & Wetzel, D. K. (2001).

    Analysing and realigning organisational

    culture. Leadership and Organisational

    Development Journal 22(1) , 40-3.

    6. Cameron, K. (2008). A process for changing

    organizational culture. Retrieved 5 20,

    2018, from

    www.http://deepblue.lib.umich.edu/:

    http://hdl.handle.net/2027.42/83281

    7. Cameron, K. S., & Quinn, R. E. (2006).

    Diagnosting and Changing Organizational

    Culture. JosseyBass, US: First published by

    AddisonWesley in 1999.

    8. Cartwright, J., Andrews, T., & Webley, P.

    (1999). A methodology for cultural

    measurement and change: a case study.

    Total Quality Management 10(1) , 121-28.

    9. Coolican, M., & Jackson, J. L. (2002).

    Integrating Culture with Strategy. Retrieved

    5 20, 2015, from www.Leadervalue.com:

    www.leadervalue.com

    10. Deshpande, R., Farley, J. U., & Webster, F.

    E. (1993). Corporate Culture, Customer

    Orientation and Innovativeness in Japanese

    Firms. Journal of Marketing 57 , 23-37.

    11. Gordon, G. (1991). Industry Determinants of

    Organizational Culture. Academy of

    Management Review 16(2) , 396-411.

    12. Gray, J., Densten, I. L., & Sarros, J. C.

    (2003). A Matter of Size: Does

    Organisational Culture predict Job

    Satisfaction in Small Organisations?

    Working Paper, Monash University .

    13. Hofstede, G. (1983). The Cultural Relativity

    of Organisational Practices and Theories.

    Journal of International Business Studies

    XIV(2), , 75-90.

    14. Hofstede, G., Neuijen, B., Ohayv, D. D., &

    Sanders, G. (1990). Measuring

    Organizational Cultures: A Qualitative and

    Quantitative Study across Twenty Cases.

    Administrative Science Quarterly 35(2) ,

    286-316.

    15. Kropp, R. (2004). The Importance of

    Organisational Culture. Advanced

    Management Sciences, Inc .

    16. Maloney, W., & Federle, M. O. (1993).

    Practical models for organizational

    http://www.jitbm.com/

  • International Journal of Information Technology and Business Management 29

    th June 2015. Vol.38 No.1

    2012-2015 JITBM & ARF. All rights reserved

    ISSN 2304-0777 www.jitbm.com

    62

    assessment. Journal of Management in

    Engineering 9(1) , 64-81.

    17. Moll, S., & Wlach, R. (2003).

    Organisational Culture. Europhamili

    Professional Study,. Retrieved 5 20, 2015,

    from citeseerx:

    http://citeseerx.ist.psu.edu/viewdoc/downloa

    d?doi=10.1.1.201.3613&rep=rep1&type=pd

    f

    18. Ogbonna, E., & Harris, L. C. (2000).

    Leadership style, organisational culture and

    performance: Empirical evidence from UK

    companies. International Journal of Human

    Resource Management 11(4), , 768-78.

    19. Quinn, R., & Rohrbaugh, J. (1983). A

    Spatial Model of Effectiveness Criteria:

    Towards a Competing Values Approach to

    Organisational Analysis. Management

    Science 29(3) , 363-77.

    http://www.jitbm.com/