Unit 2 Organisational Culture

Embed Size (px)

Citation preview

  • 7/29/2019 Unit 2 Organisational Culture

    1/28

    Week 2

    Organisational Culture

    Dr Lesley Mearns

  • 7/29/2019 Unit 2 Organisational Culture

    2/28

  • 7/29/2019 Unit 2 Organisational Culture

    3/28

    What is Culture?

    Scheins definition:

    Behaviours

    Values

    Beliefs

    Assumes that culture is a neatly bounded

    phenomenon

    Too simplistic (Legge 2005)

  • 7/29/2019 Unit 2 Organisational Culture

    4/28

    Organisational Culture

    Ravasi and Schultz (2006) - organisational

    culture is a set of shared mental assumptions

    that guide interpretation and action in

    organisations by defining appropriate

    behaviour for various situations

  • 7/29/2019 Unit 2 Organisational Culture

    5/28

    Strong Culture

    Is said to occur when employees align themselves with

    the aims and objectives of the organisation. They

    become committed to organisational objectives andwill seek to promote the organisational culture the

    way we do things around here

    Management can empower employees and need less

    control mechanisms

  • 7/29/2019 Unit 2 Organisational Culture

    6/28

    Weak Culture

    Employees do not see themselves sharing the

    same goals as the organisation. They are not

    committed to the aims and objectives of the

    organisation

    Management must have controls in place.

    They must use procedures and bureaucracy to

    control the workforce

  • 7/29/2019 Unit 2 Organisational Culture

    7/28

  • 7/29/2019 Unit 2 Organisational Culture

    8/28

    Culture

    Charles Handy (1985) and Harrison (1972)

    four types of organisational:

    1. Power Culture concentrates power among a

    few. Control comes from the centre. Power and

    influence spread out from a central figure or

    group.

    Power Cultures have few rules and tend not to bevery bureaucracy

    Decisions can be made quickly

  • 7/29/2019 Unit 2 Organisational Culture

    9/28

    Culture

    2. Role Culture Authority is delegated to peoplewithin a defined structure.

    These organisations tend to take on a hierarchical

    and bureaucratic form. Power comes from a person's position rather

    than from expertise. The power is controlled byprocedures, roles descriptions and authority

    definitions. Predictable and consistent systems and

    procedures are highly valued

  • 7/29/2019 Unit 2 Organisational Culture

    10/28

  • 7/29/2019 Unit 2 Organisational Culture

    11/28

    Culture

    4. Person Culture happens when all individuals

    believe themselves superior to the organisation.

    Survival can become difficult for such

    organisations, since the concept of anorganisation suggests that a group of like-minded

    individuals pursue the organisational goals.

    Some professional partnerships can operate asperson cultures, because each partner brings a

    particular expertise and clientele to the firm.

  • 7/29/2019 Unit 2 Organisational Culture

    12/28

    Cultural Web (G. Johnson 1988)

    The Paradigm: What the organization is about; what it does; its mission;its values.

    Control Systems: The processes in place to monitor what is going on. Rolecultures would have a lot of rulebooks. There would be more reliance onindividualism in a power culture.

    Organisational Structures: Reporting lines, hierarchies, and the way thatwork flows through the business.

    Power Structures: Who makes the decisions, how widely spread is power,and on what is power based?

    Symbols: These include organisational logos and designs, but also extendto symbols of power such as parking spaces and executive bathrooms.

    Rituals and Routines: Management meetings, board reports and so onmay become more habitual than necessary eg) HP Friday coffeemornings.

    Stories and Myths: build up about people and events, and convey amessage about what is valued within the organisation.

  • 7/29/2019 Unit 2 Organisational Culture

    13/28

    Culture

    Schein (1992) culture is also influenced by:

    External environment

    Industry

    Size and nature of the organizations workforce

    Technologies the organization uses

    The organizations history and ownership

  • 7/29/2019 Unit 2 Organisational Culture

    14/28

    Culture

    Why manage Culture?

    Ogbonna and Harris (2002)

    On the whole management theory assumes

    that an organisations culture is discrete andunitary. It is therefore possible for it to becontrolled by senior management.

    If it is possible to control culture, to fail to doso is to miss an opportunity to harness anorganisations human resources

  • 7/29/2019 Unit 2 Organisational Culture

    15/28

  • 7/29/2019 Unit 2 Organisational Culture

    16/28

    Culture and HRM

    Cultural change offers the prize of

    commitment, improved performance and

    profit

    Assumption that it is possible to manipulate

    a culture to generate employees commitment

    continues to underpin many of the current

    debates and developments in HRM

  • 7/29/2019 Unit 2 Organisational Culture

    17/28

    Is Managing Culture Feasible?

    Functionalist Perspective Culture can and

    ought to be a variable an organisation has in

    the possession of managementcould be

    manipulated. Possible therefore for senior

    management to override other sub-cultures

    beliefs and values

  • 7/29/2019 Unit 2 Organisational Culture

    18/28

    Is Managing Culture Feasible?

    Interpretative Perspective Culture is

    essentially explanatory. Culture is something

    an organisation is it is a product of

    continuous review and negotiated continuity.

    Highly dynamic.

    Cannot be easily manipulated by one sub-

    group

  • 7/29/2019 Unit 2 Organisational Culture

    19/28

    Culture

    Harvard Business School (2003) - reported that

    culture has a significant impact on an

    organisations long-term economic performance.

    The study examined the management practices at160 organizations over ten years and found that

    culture can enhance performance or prove

    detrimental to performance. Organisations withstrong performance-oriented cultures witnessed

    far better financial growth.

  • 7/29/2019 Unit 2 Organisational Culture

    20/28

    Culture

    Denison, Haaland, and Goelzer (2004) -

    culture contributes to the success of the

    organisation, but not all dimensions

    contribute the same.

    It concluded that the impacts of these

    dimensions differ by global regions, which

    suggests that organisational culture isinfluenced by national culture.

  • 7/29/2019 Unit 2 Organisational Culture

    21/28

    Culture

    Adkins and Caldwell (2004) - job satisfaction

    is positively associated with the degree to

    which employees fit into both the overall

    culture and subculture in which they worked.

  • 7/29/2019 Unit 2 Organisational Culture

    22/28

    Culture

    Organisational culture is reflected in the way

    people perform tasks, set objectives, and

    administer the necessary resources to achieve

    objectives. Culture affects the way individualsmake decisions, feel, and act in response to

    the opportunities and threats affecting the

    organization

  • 7/29/2019 Unit 2 Organisational Culture

    23/28

    Social constructionism suggests organisational culturesemerge from collective experiences of members

    Organisational stories indicate the health of theorganisation

    The founding story often contains lessons learnt from theentrepreneur whose vision may still dominate the firm

    Organisational stories reflect how its members view theworld and operate together

    Rituals establish boundaries and relationships between

    stakeholders of the organisation and is reflected in thejargon which emerges

    Symbols are powerful visual objects of organisationalcultures

    Levels of Culture

  • 7/29/2019 Unit 2 Organisational Culture

    24/28

    Values results in collective actions

    Value statements are adopted whichexpresses organisational commitment to

    certain areas Values may result in a strong corporate

    identity

    Values enhance collective commitment

    Strong values reduce the need for formal andbureaucratic controls

    Culture and Values

  • 7/29/2019 Unit 2 Organisational Culture

    25/28

    Culture

    It has been suggested that organisational

    culture may impact on the level of employee

    creativity, the strength of employee

    motivation, and the reporting of unethical

    behaviour

  • 7/29/2019 Unit 2 Organisational Culture

    26/28

    Corporate Culture

    http://www.youtube.com/watch?v=sO2vNyBr

    oco

    Strategy and Culture Silicon Valley Bank

    http://www.youtube.com/watch?v=X8S09YGI_P

    8

    http://www.youtube.com/watch?feature=player

    _embedded&v=OxQ3LiEKqtY#!

    http://www.youtube.com/watch?v=sO2vNyBrocohttp://www.youtube.com/watch?v=sO2vNyBrocohttp://www.youtube.com/watch?v=X8S09YGI_P8http://www.youtube.com/watch?v=X8S09YGI_P8http://www.youtube.com/watch?feature=player_embedded&v=OxQ3LiEKqtYhttp://www.youtube.com/watch?feature=player_embedded&v=OxQ3LiEKqtYhttp://www.youtube.com/watch?feature=player_embedded&v=OxQ3LiEKqtYhttp://www.youtube.com/watch?feature=player_embedded&v=OxQ3LiEKqtYhttp://www.youtube.com/watch?v=X8S09YGI_P8http://www.youtube.com/watch?v=X8S09YGI_P8http://www.youtube.com/watch?v=sO2vNyBrocohttp://www.youtube.com/watch?v=sO2vNyBroco
  • 7/29/2019 Unit 2 Organisational Culture

    27/28

    Corporate Culture

    Consider the videos that you have just watched: Do you agree with the definitions that have been

    offered for organisational culture?

    Do you think that it is important to manage? Please

    explain your answer What kind of organisational culture did you identify at

    Google? What kind of management and leadershipskills would you need to successfully manage theworkforce?

    Would you manage employees at Google in the sameway as those employed at the Silicon Valley Bank?Explain your answer

  • 7/29/2019 Unit 2 Organisational Culture

    28/28

    Management of People

    Read the IKEA case study:

    In groups consider:

    How would you go about recruiting and selecting

    employees that would fit into the culture of theorganisation

    If you were a manager in IKEA, what would you do to

    sustain the current culture?

    What sort of employment practices would you need toensure that employees engaged with the organisational

    culture?