Managing Organisational Culture 3.10.2 Flashcards
what is organisational culture
Organizational culture is an organization’s expectations, experiences, philosophy, as well as the values that guide member behaviour
what are some influences on organisational culture
- Attitude of organisation to risk-taking & innovation
- Working environment & nature of tasks (e.g. physical, office, remote working, flexible working)
- Influence of the founder
- Size & development stage of the business
- Leadership & management style
- Organisational structure, policies & practices
- Employee & management reward structures
what is Handy’s cultural model
Charles Handy defined four different kinds of culture: Power, Role, Task and Person.
what is role culture
Organisations with a role culture are based on rules. They are highly controlled, with everyone in the organisation knowing what their roles and responsibilities are. Power in a role culture is determined by a person’s position (role) in the organisational structure.
Role cultures are built on detailed organisational structures which are typically tall (not flat) with a long chain of command. A consequence is that decision-making in role cultures can often be painfully-slow and the organisation is less likely to take risks. In short, organisations with role cultures tend to be very bureaucratic.
what is task culture
Task culture forms when teams in an organisation are formed to address specific problems or progress projects. The task is the important thing, so power within the team will often shift depending on the mix of the team members and the status of the problem or project.
Whether the task culture proves effective will largely be determined by the team dynamic. With the right mix of skills, personalities and leadership, working in teams can be incredibly productive and creative.
what is power culture
In an organisation with a power culture, power is held by just a few individuals whose influence spreads throughout the organisation.
There are few rules and regulations in a power culture. What those with power decide is what happens (autocratic, centralised management). Employees are generally judged by what they achieve rather than how they do things or how they act. A consequence of this can be quick decision-making, even if those decisions aren’t in the best long-term interests of the organisation.
what is person culture
In organisations with person cultures, individuals very much see themselves as unique and superior to the organisation. The organisation simply exists in order for people to work. An organisation with a person culture is really just a collection of individuals who happen to be working for the same organisation.
what are some reasons for changing organisational culture
Improved business performance:
•Declining profits and sales
•Inadequate returns on investment
•Low quality or standards of customer service
To respond to significant change: •Market changes (growth, competitors) •Change of ownership (e.g. takeover / merger) •Change of leadership (e.g. new CEO) •Economic conditions (e.g. downturn)
what are some problems of changing a organisational culture
Can cause resistance to the change due, misunderstanding, low tolerance, self interest, different assessment.
See Kotter and Schlesinger
what are some negatives of resistance to change
Lower Employee Morale Reduced Efficiency higher absentee rate lower staff retention (higher recruitment costs) poor employee manger relationships
what is Hofstede’s national cultures
it four categorise in which he spit culture into:
Power distance:
the degree in which inequality is tolerated and whether there is a strong sense of position and status
Individualism v Collectivism:
The extent that societies value the performance of individuals over the importance of the value of the performance of the team
Masculinity v Femininity:
Hofstede linked what he called a “masculine” approach to a hard-edged, fact-based and aggressive style decision-making
By contrast, ”feminine” decision-making involved a much greater degree of consultation and intuitive analysis
Uncertainty Avoidance:
Low levels of uncertainty avoidance indicate a willingness to accept more risk, work outside the rules and embrace change. This might indicate a more entrepreneurial national culture
Higher levels of uncertainty avoidance would suggest more support for rules, data, clarity of roles and responsibilities etc. These cultures might be less entrepreneurial as a consequence
