CH9 - Organisational Culture Flashcards
What is organisational culture?
Important concept since it has a widespread influence on the behaviours and actions of employees. Represents a powerful force on the organisations strategies, structures and systems, the way it responds to change, and ultimately how well the organisation performs
Handy described culture as “the way we do things around here”
By this he means the sum total of belief, knowledge, attitudes norms and customs that prevail in an organisation.
Describe the 3 levels culture exists at
1.Artefacts- things that can be seen heard and observed. What the public sees. Can include
Dress codes-formal, informal, uniforms?
Patterns of behaviour-the way people in organisation are seen as acting.
Physical symbols-logos, branding
Office layout-facilities,furnishings
- Espoused values -Stories and opinions of those within the organisation. Can include
Language-the way people communicate both within and outside the organisation.
Behaviour-shows what people in organisation feel is important
How people justify what they do-these values can be deep rooted. Many will take for granted their behaviour is acceptable without questioning it. - Basic assumptions- beliefs so deeply embedded in a culture that members are no longer consciously aware of them. Can include
Beliefs on environmental issues
How people should be treated-will include HR policies, customer relationships etc
As you go through the levels, the elements become less visible and more ingrained. Understanding this helps organisations anticipate problems with their culture and allows them to see how easy or difficult it would be to change.
Changing level 1 items would be easy, but changing values and beliefs very difficult.
What is the organisational iceberg?
The idea of hidden elements in a culture
The iceberg describes two levels at which culture operates
1. Formal aspects above the surface, includes
Goals
Technology
Procedures
Structure
Skills
2. Behavioural aspects - hidden elements below water Attitudes Style Communication patterns Values Beliefs Feelings
Illustrates that what public, customers, suppliers and others outside organisation see is only a small part of the picture.
Why is culture important ?
It’s an invisible bond that ties people of a community together. Refers to the pattern of human activity. Importance of culture lies in its close association with the way of living of the people.
Different cultures bring diversity
Culture is related to development of ones attitude, they shape an individuals thinking and influence his/her mindset
- it gives an individual a unique identity
- culture of a community gives its people character of their own
- culture shapes the personality of a community. Includes language spoken, staple foods, customs, traditions and festivities
What are advantages of having a strong culture ?
In an organisation culture has a significant bearing on the way it relates to its stakeholders. Strong culture will-
Facilitate good communication and coordination in an organisation
Provide framework of social identity and sense of belonging
Reduce differences amongst organisations members
Strengthen the dominant values and attitudes
Regulate behaviour and norms among members
Reflect the philosophy and values of the organisations founder or dominant group
Affect organisation strategy and ability to respond to change
What are the disadvantages of having a strong culture?
Strong culture that does not have positive attitudes in relation to change is a hindrance to effectiveness
Strong Cultures are difficult to change
Strong cultures may have a blinkered view which can affect organisations ability or desire to learn new skills.
Where two strong cultures come into contact e.g. emerging then conflicts can arise
Strong culture may not be attuned to the environment e.g. a culture of innovation is only appropriate in a dynamic shifting environment
What are the main influences on an organisation’s culture?
Size - turnover, physical size and employee numbers
Technology - How technologically advanced is organisation in terms of products or processes?
Diversity - how diverse is company in terms of product range, geographical spread, cultural make up of stakeholders.
Age- how old is the business and managers of the business i.e. do they have experience to draw upon.
History - what has worked in the past,do decision makers have experience of success, are they willing to learn from mistakes?
Ownership sole trader? Small number of shareholders?
Not including the main influences on culture are there any others?
Degree of individual initiative. Is it encouraged or decisions referred upwards.
Degree of risk tolerance
Clarity of direction
Degree of integration between groups – different units encouraged to work together?Is management approachable?
Reward system – individuals rewarded for succeeding?
Conflict tolerance – employee encouraged to air grievances?
Communication patterns – formal hierarchy or informal network.
Formalisation of clothing and office layout?
Kind of people employed – are they graduates, young, old etc?
What is Johnson and scholes Cultural web framework?
identifies a number of elements that can be used to describe or influence organisational culture.
Model can be used to analyse organisation culture and identify changes that that could be made to improve it.
The centre is the Paradigm - what organisation is about, what it does, its mission, it’s values. The paradigm Is influenced by six elements
Stories and myths – what do people say about our organisation, what is our reputation, what do current staff tell New staff, What do employees talk about when asked about the company.
Rituals and routines – the behaviour and actions of people that signal acceptable behaviour.What do customers expect when they use our services or buy our product? What do employees expect when they come to work? What core beliefs are suggested by these behaviours.
Symbols - organisational logos and designs, dress codes, Symbols of power such as parking spaces and corner offices. Is Jargon Used which people outside the organisation do not understand? To all branches, offices look the same no matter what the location? Does the organisation have a recognisable corporate image?
Organisational structure – reporting lines, hierarchies, the way work flows through the business. Is there a formal organisational structure? What type of structure? Consider formal and informal reporting lines.
Control systems – processes in place to monitor what is going on. Includes internal control systems, performance measurement and reward structures. Are there obvious controls in place? Is organisation well controlled? Are employees aware of the controls, and implications of Non-compliance.
Power structures – who makes decisions, how widely spread is the power, is the power used appropriately?
What is the McKinsey 7S model?
A model that highlights the soft and hard aspects of an organisation which can influence culture.
The hard elements are strategy, structure and systems and are more visible from outside the organisation.
The soft elements are shared values, skills, style and staff and are usually only completely understood from within the organisation.
Describe each of the McKinsey 7S
Strategy – the actions that are planned in response to environmental change to aid the organisation to achieve its long-term goals.
Structure – how people and tasks are organised. The way departments interact.
Systems – Information flows and processes of an organisation. E.g. accounting systems,IT systems etc
Shared values – what the organisation believes in and stands for.
Skills – distinctive capabilities and competencies. Change in strategy may require new skills.
Style – management and leadership style. what is important to the organisation.
Staff – Numbers and types of personnel
Describe Handy’s 4 cultural types.
Power – The ego of a key person comes first. The structure is best Depicted as a web whereby power resides at the centre and all authority emanates from one individual.Organisation is not rigidly structured and is adaptable to change. Think small entrepreneurial organisations and family managed businesses.
Role culture – Here, the job description of the actor comes first. Impersonal, rely on Formalised rules and procedures to guide decision making, In a standardised bureaucratic way. Clear hierarchical structure. Each job is clearly defined and the power of individual is based on the position in the hierarchy. Decisions are controlled our centre, whilst suitable for stable and predictable environment, this type of culture is slow to respond and react to change.
Task culture – here, getting the job done right and on time comes first.
Typified by teamwork, flexibility and commitment to achieving objectives. Power and influence tends to be based on specialist knowledge and expert power rather than on positions in the hierarchy. Creativity is encouraged. Job satisfaction tends to be high. task culture can quickly respond to changes and is appropriate where flexibility, Adaptability and problem solving is needed.
Personal culture - Here, actors fulfil personal goals and objectives whether or not they are congruent with those of the organisation.
Can be collection of individuals working under the same umbrella e.g. architects solicitors IT Management consultants, Trying to satisfy private ambition.
All the types of organisation with people culture exist for the benefit of the members and are based on friendship,belonging and consensus. (Social clubs)
Each type of culture has advantages and disadvantages. In reality, organisations often need a mix of cultures.
Handy also matched appropriate culture models to the levels of managerial activity, Strategic, tactical, operational management. Match them up.
Strategic management – power culture, concerned with directions, policy-making and crisis handling.
Tactical management – task culture, concerned with resources and establishing means to meet corporate goals.
Operational management – role culture, concerned with routine activities
Cultural practices vary between different countries and will impact on how organisations operate. This is relevant for mergers and acquisitions of foreign companies. It is important to note cultures in society are not permanent.
Hofstead 1990 developed a model to explain national differences identified five key dimensions . Explain these.
1 - Power distance
How much society accepts the unequal distribution of power. Eg extent to which supervisors see themselves above subordinates. In countries with high power distance managers tend to make autocratic decisions. This kind of culture was found to be particularly strong in Malaysia, China, Philippines and Russia.
Hi Power distance – people accept inequality in power.
Low-power distance – people do not accept inequality in power.
2 – uncertainty avoidance
The degree to which members of society feel uncomfortable with risk, uncertainty and ambiguity.
Hi uncertainty avoidance – people are uncomfortable with uncertainty and ambiguity, organisations will rely heavily on the rules and regulations.
Low uncertainty avoidance – people have a high tolerance for the unstructured and unpredictable.
3 - Individualism and collectivism - individualism is the extent to which people are supposed to take care of themselves, be emotionally independent from others and reflects the values of a loosely knit social network. Collectivism means the individuals look after another and organisations protect their members interests.
4 – masculinity/femininity
Degree to which masculine values predominate. Focus on power, achievement, assertiveness and material success. Feminine oreintation values relationships, caring for the weak, quality of life, modesty and sensitivity.
- Time orientation – how much society values long-standing rather than short-term values and traditions.
Long-term orientation means value in tradition, loyalty, education and training.
Short term orientation means valuing fast promotions and quick profits.
Important note –.Hofstede was attempting to model aspects of culture that might influence business behaviour rather than produce national stereotypes.
Hofstede also looked at cultural differences in work related attitudes. What are these?
Leadership – leaders expected to take strong personal interest in employees, appearing at private social functions such as weddings? Or alternatively social contact is discouraged.
Motivation performance incentives must match culture.Pointless offering individual bonuses where there are strong group and company loyalties or were loyalty to individual superior is paramount.
Structure – French are bureaucratic, German firms rely on expert knowledge and skill of more junior employees.
