Organisational Culture and Change

Question 1

Define ORGANISATIONAL CULTURE

Answer 1

Organisational culture refers to a system of shared meaning held by members that distinguishes the organisation from others. It affects how employees relate to each other and other stakeholders.

Question 2

Describe the iceberg model

Answer 2

The organisational culture model (the iceberg model) has three levels:

1. Artefacts and symbols - the outermost layer and therefore the easiest to change. These are visible elements of the organisation that can be seen/felt/heard by both employees and external parties.
2. Espoused values - concerns standards, values and rules of conduct; how does the organisation express objective/goals and strategies - how are they made public?
3. Basic underlying assumptions - the innermost layer and therefore the hardest to change. These assumptions are deeply embedded in the organisation’s culture.

Question 3

What are the functions of organisational culture?

Answer 3

• forms the identity of the organisation
• helps to define boundaries within it
• helps employees feel more committed to the organisation
• rules and standards serve as a control mechanism

Question 4

Define a DOMINANT CULTURE

Answer 4

A dominant culture expresses the core values that the majority of members share that give the organisation distinct personality.

Question 5

Define SUBCULTURES

Answer 5

Subcultures tend to develop in large organisations to reflect common problems, situations or experiences that members face in the same department or location.

Question 6

Define a STRONG CULTURE

Answer 6

A strong culture is one where the organisation’s core values are both intensively held and widely shared. Employees support the culture and it acts as a source of competitive advantage.

Question 7

Define a WEAK CULTURE

Answer 7

A weak culture is one where there is a low level of understanding as to what the core values of the organisation are and a low level of commitment to them as a result.

Question 8

How does organisational culture form?

Answer 8

1. Philosophy of the founders - 2. Selection criteria - 3. Top management/socialisation - 4. Organisational culture is formed.

Question 9

Define ORGANISATIONAL CHANGE

Answer 9

Organisational change is the movement of an organisation away from its present state and toward some desired future state that will increase its effectiveness.
Unplanned change may occur spontaneously, whereas planned change is the result of specific efforts led by a change agent.

Question 10

What are some external causes of change?

Answer 10

• market forces and other financial pressures (increased import costs, cost of loans etc).
• competition - the need to deliver new and improved products and services
• legislation - employment/environmental/economic
• taxes - VAT/national insurance/local taxes/business rates
• new technology - new equipment often leads to higher efficiency
• political influences - new government policies
• economic situation - national debt/unemployment/interest rates

Question 11

What are some internal causes of change?

Answer 11

• financial situation - changes to structure, staffing and improvements made to products or services
• reorganisation - business may be growing and needs more staff (or vice versa). Staff roles may need to change as well as conditions of employment and the organisational culture.
• conflict - between senior staff on strategy, between departments about roles, between individuals.

Question 12

Describe Lewin’s change management model

Answer 12

He stated that change occurs in three stages:

1. Unfreeze - the organisation must be prepared to undergo change. Involves breaking down the existing status quo, challenging values attitudes and beliefs.
2. Change - new ways of doing things are identified. People start to believe, act in and behave in ways that support the new direction. Time/communication are key here.
3. Refreeze - people have embraced new ways of working, the organisation is stable and job descriptions are consistent. This stage internalises the changes made.

Question 13

What are some resistance factors to change?

Answer 13

• fear of the unknown
• fear of loss (job security, work relationships etc).
• fear of failure (especially if training/direction is not correctly provided).

Question 14

What are the 8 steps to successful change, according to John Kotter?

Answer 14

1. Establish a sense of urgency
2. Creating a guiding coalition
3. Develop a clear shared vision
4. Communicate the vision
5. Empower people to act on the vision
6. Create short term wins
7. Consolidate and build on the gains
8. Institutionalise the change