Lecture 4_organisation Culture

What is an organisation?What is an organisation?ó An Organisation is a group of individuals

operating together in a systematic way to achieve a set of objectives◦ Formal Organisation – Has a consciously

coordinated system of human interactions with a coordinated system of human interactions with a common purpose

◦ Informal Organisation – has social interactions without a conspicuous structure or common purpose.

ó The three characteristics of an organisation are People, Structure and Purpose.

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What is organisational culture?What is organisational culture?ó Organisation Culture – The commonly held

and relatively stable set of beliefs, attitudes, values and norms that exist throughout an organisation – usually refers as the way things are done around here.

ó Every organisation has a system of beliefs, values, ó Every organisation has a system of beliefs, values, norms of behaviour, symbols, myths and practices that have evolved over time and are shared by its members.

ó Organisations possess some of the ingredients of a sub-culture – distinctive shared beliefs and values that sometimes translate into policies and practices.



How to determine the culture of an How to determine the culture of an organisation?organisation?ó Communication of organisation goals

◦ Clarity◦ Deployment in all departments and at all levels◦ Embracement by all employees

ó Dominant behaviour patterns:ó Dominant behaviour patterns:◦ within the organisation ◦ Between the organisation and other stakeholders

ó Distribution of authority and decision-making◦ Concentration at the top?◦ Spread downwards with employees working closely

with customers?



How to determine the culture of an How to determine the culture of an organisation?organisation?ó Structure of the organisationó Nature of leadership

◦ Authoritarian to democratic

ó Value of the organisationResponsiveness to the needs and aspirations of ◦ Responsiveness to the needs and aspirations of employees and other stakeholders

ó Entrepreneurial spiritó Receptiveness to embracing change

◦ Proactive v/s reactive



Types of organisation cultureTypes of organisation cultureó Power Culture – Normally found in small

business – owner/manager takes all the decisions and risks.◦ Limited amount of formalisation, rules, procedures

and policies. Workers rely on what has gone before.and policies. Workers rely on what has gone before.◦ Organisation not rigidly structured – can easily adapt

to changes◦ As organisation grows, power culture tends to be

diminished



Types of organisation cultureTypes of organisation cultureó Role Culture – Rigid Bureaucratic Culture –

Works by logic and reason.◦ Typified by policies, procedures and practices that are

formally laid down◦ Authority, job descriptions, procedures for ◦ Authority, job descriptions, procedures for

communications, internal processes are all clearly defined

◦ The role of the person is more important as the person himself

◦ Stereotype ad very hard to adapt to changes ◦ Cannot fit well for ambitious person



Types of organisation cultureTypes of organisation cultureó Task Culture – Getting effective performance is

more important than power or individuals – the emphasis is on completing a project or task –Task approach.◦ More flexible to adapt to changes as the objective is

to achieve somethingto achieve something◦ Ideal when the firm has to adapt quickly to changes in◦ business environment◦ Difficulties arise because of capability to coordinate

workflow, mobilising resources on time, adjusting to budget, working towards economies of scale.



Types of organisation cultureTypes of organisation cultureó Person Culture – The individual is the main

focus◦ The Organisation and its structure exist to serve the

individual’s objectives and aspirations◦ Being able to “do one’s own thing”◦ Being able to “do one’s own thing”◦ Usually found in specialised business



Factors that influence the culture of Factors that influence the culture of an Organisationan Organisationó Origins – Founding principles of the

organisationó Size –Whether the organisation is big , small,

global?Technology – Rate of technology adoptionó Technology – Rate of technology adoptionó Goals and objectives – Top-down or bottom-

up participationó External Environment – PESTEL forces that

impact an organisation from outsideó Human Resources - managing the diverse

personality behaviours



Can Culture be Changed?Can Culture be Changed?ó Culture Management– its function is to foster the

most appropriate pattern of the culture elements revealed by analysis to achieve organisational goals◦ Ability to cope with change◦ Bringing change in some culture elements, while

reinforcing other elements of the existing culture.◦ Focus on what the organisation does best◦ Focus on what the organisation does best

ó Successful organisational cultures have two key components:◦ Culture should be coherent – all cultural elements should

follow similar style and direction◦ Culture must be flexible – enough to cope with rapid

changes in environment



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Lecture 4_organisation Culture