Organisational Culture, Climate and Change

Question 1

What is Organisational Culture?

Answer 1

Culture in an organisation refers to the shared values, beliefs, and basic assumptions that guide behaviour and decision-making within the organisation

Question 2

What aids in understanding organisational culture?

Answer 2

You can quickly become proficient in understanding organisational culture by simply paying attention. Keen observation and active listening are key to uncovering the often-hidden aspects of an organisation’s culture and climate

Question 3

What are the surface manifestations of culture?

Answer 3

Hierarchy: The number of levels between the head of the organisation and the lowest-level employee can indicate how bureaucratic (A high number- decision-making is centralized and slower) or innovative (low level) an organisation is. The diversity at leadership levels is also telling. Structure of the hierarchy often reflects the organization’s values

Pay Levels: Whether the pay is high or low, performance-related, and the pay differentials between grades all impact the organisational culture. The way pay is managed can significantly influence the culture.

Job Descriptions: The level of detail and rigidity in job descriptions and their emphasis on factors like safety, productivity, or quality reflect the organisational culture. Regular review of job descriptions can also be indicative of the culture.

Informal Practices and Norms: These include whether management and non-management employees interact socially, the formality of dress codes, punctuality at meetings, and the way customers are referred to. These practices can reveal much about the organisation’s climate.

Espoused Values and Rituals: Organisations may emphasise cooperation or competition, celebrate departures with cards and parties, and observe key festivities. These rituals help in understanding what the organisation values.

Stories, Jokes, and Jargon: The stories and jokes commonly told within an organisation, along with the jargon or acronyms used, can provide insight into the organisation’s collective mindset and values.

Physical Environment: The condition of office spaces, eating areas, restrooms, decorations, and general cleanliness and comfort all contribute to the perception of organisational culture. Whether the environment feels welcoming, urgent, or uncomfortable can also indicate the underlying culture.

Question 4

What is the Schein’s Model of Culture?

Answer 4

Schein’s model of organisational culture provides a framework for understanding culture at different levels

Question 5

What are the three levels of the Schein’s Model of Culture?

Answer 5

Espoused Values: These are the values that an organisation explicitly states it believes in and strives to uphold. They are often captured in mission statements, vision statements, and company brochures. Espoused values represent the ideals and aspirations the organization wants to be known for.

Enacted Values: These are the values that are actually exhibited in the organisation’s practices, policies, and everyday behaviours. Enacted values can be observed in artefacts such as the hierarchy structure, pay levels, meeting practices, and ritual celebrations (e.g., awards for long service or excellence).

Basic Underlying Assumptions: These are the deeply embedded, unconscious beliefs and assumptions that truly guide behaviour in the organisation. They are often taken for granted by members and go unnoticed in daily operations, yet they play a crucial role in shaping the culture. For example, the assumption that it’s normal to arrive late to meetings or that one should never disagree with the chief executive is a powerful indicator of the underlying culture.

Question 6

What is the the Sociability versus Solidarity Model?

Answer 6

Goffee and Jones (1998) propose a straightforward way to think about organisational culture, focusing on two key dimensions: sociability and solidarity.

Sociability refers to the level of sincere friendliness and social relations within the organisation. High sociability indicates that the organisation values warm, positive interactions among its members.

Solidarity denotes the strength of commitment to common tasks and shared goals. High solidarity suggests that the organisation prioritises task performance and a collective focus on achieving objectives.

Question 7

What are the identify four possible cultural configurations within organisations?

Answer 7

The Networked Organisation:

High Sociability, Low Solidarity
This type of organisation emphasises social relationships over task performance. Employees enjoy positive, warm interactions, which fosters a culture of informal knowledge sharing, innovation, and high morale. However, this focus on sociability may come at the cost of performance, as criticisms and disagreements may be avoided to maintain harmony. Family-owned businesses often exhibit this culture, where maintaining good social relationships can take precedence over achieving high performance.

The Mercenary Organisation:

Low Sociability, High Solidarity
In this culture, performance and productivity are prioritised above social relationships. The organisation is driven by a strong sense of purpose, and success is measured by results rather than by how well people get along. This can lead to a competitive environment where power struggles and status battles are common, as seen in some professional service firms like law firms. While this culture can drive high performance, it can also create a cutthroat atmosphere that may erode employee morale and cohesion.

The Fragmented Organisation:

Low Sociability, Low Solidarity
This culture is characterised by a lack of emphasis on social relationships and performance. Employees may work in isolation, with little concern for the organisation’s overall success or the quality of interactions with colleagues. A university department where researchers focus solely on their individual work, with minimal engagement in the department’s broader goals, is an example of a fragmented organisation.

The Communal Organisation:

High Sociability, High Solidarity
This culture combines a strong focus on both social relationships and task performance. Employees are united by a shared mission and provide mutual support, creating a sense of camaraderie and collective purpose. An aid agency like Oxfam working in a disaster-stricken area might embody this culture, where staff work together closely to achieve their goals while maintaining strong social bonds. May be challenging to sustain during periods of significant change or growth, as the emphasis on social cohesion can sometimes conflict with the need for a focused, results-driven approach.

Question 8

What is the Competing Values Model?

Answer 8

Is a framework that integrates two fundamental dimensions of organisational effectiveness: flexibility versus control and internal versus external orientation. Used to understand and diagnose organisational culture by highlighting the competing values that organisations must balance to achieve effectiveness.

Question 9

What is meant by Flexibility versus Control?

Answer 9

This dimension reflects the organisation’s approach to change and stability.
Flexibility emphasises adaptability, innovation, and organic growth.
Control emphasises stability, order, and a structured approach to management.

Question 10

What is meant by Internal versus External Orientation?

Answer 10

This dimension indicates whether the organisation primarily focuses on internal processes or external market demands.
Internal Orientation emphasises internal processes, employee well-being, and efficient resource use.
External Orientation emphasises competitiveness, market focus, and customer demands.

Question 11

What are the four quadrants of the Competing Values Model?

Answer 11

Clan Culture (Flexibility and Internal Orientation):

Values: Focuses on internal maintenance with flexibility, concern for people, and sensitivity to customers.
Characteristics: The organisation operates like an extended family. It emphasises teamwork, participation, and consensus.
Means: Empowerment, team cohesion, and mentoring are the key mechanisms.
Ends: Commitment, communication, and development are the primary goals.

Adhocracy Culture (Flexibility and External Orientation):

Values: Emphasises external positioning with a high degree of flexibility and individuality.
Characteristics: The organisation is dynamic, entrepreneurial, and creative. It thrives on innovation and agility.
Means: Adaptability, creativity, and risk-taking are encouraged.
Ends: Innovation, growth, and new resources are the main objectives.

Market Culture (Control and External Orientation):

Values: Prioritises external focus and control. It is results-oriented and emphasises competitiveness and achieving targets.
Characteristics: The organisation is driven by competition and a strong desire to achieve measurable goals and market share.
Means: Aggressiveness, productivity, and customer focus are key strategies.
Ends: Profitability, market penetration, and competitive advantage are paramount.

Hierarchy Culture (Control and Internal Orientation):

Values: Stresses internal focus and stability with a well-defined structure.
Characteristics: The organisation is structured and controlled with clear procedures and processes.
Means: Efficiency, timeliness, and consistency are emphasised.
Ends: Stability, predictability, and efficiency are the main objectives.

Question 12

What is the The Integration, Differentiation, and Fragmentation Model

Answer 12

It offers three distinct perspectives—Integration, Differentiation, and Fragmentation—each providing a different lens through which to understand and analyse organisational culture. By considering all three perspectives, one can gain a more nuanced and comprehensive understanding of how culture functions within an organisation.

Question 13

What is meant by The Integration Perspective?

Answer 13

This perspective proposes that a ‘strong culture’ will lead to more effective organizational performance. A strong culture is one that is shared by those throughout the organization – there is organization-wide consensus and clarity. Senior management set the values and develop a mission statement. When this is effectively communicated and implemented via managerial practices, organization-wide consensus is shaped. So employees know what they are supposed to do and agree on the value of doing it.

Question 14

What is meant by The Differentiation Perspective?

Answer 14

The Differentiation Perspective recognises that within an organisation, different groups (such as teams, departments, or even individual employees) may have varying values, goals, and work experiences. This perspective highlights the existence of sub-cultures within an organisation, each with its own set of norms and values. These sub-cultures may coexist in harmony, conflict, or indifference, and the overall culture of the organisation is seen as a mosaic of these diverse groups rather than a single, unified entity.

Question 15

What is meant by The Fragmentation Perspective?

Answer 15

The Fragmentation Perspective posits that ambiguity and lack of consensus are inherent features of many organisations. According to this view, it is unrealistic to expect that all members of an organisation will share the same values and goals. Instead, ambiguity often prevails, with different individuals or groups holding conflicting or unclear views about the organisation’s culture, goals, and values.

Question 16

What is the Hofstede’s Dimensions of National Culture?

Answer 16

Hofstede identified five key dimensions of national culture that help explain how cultures vary across countries. These dimensions are crucial for understanding how national culture can impact organizational behaviour and values.

Question 17

What are the four underlying dimensions of national culture?

Answer 17

Individualism-Collectivism

Individualism: In individualistic cultures, people prioritise their own personal goals and define themselves primarily by their individual characteristics and achievements. Countries like the United States and the United Kingdom are high in individualism. In such cultures, organisational cultures might emphasise personal initiative, individual responsibility, and autonomy.
Collectivism: In collectivist cultures, people identify more strongly with groups (such as family, community, or organisation) and prioritise group goals over individual desires. Many Eastern cultures, including China and Japan, are more collectivist. In these cultures, organisational values might focus on teamwork, group harmony, and loyalty to the organisation.

Power Distance

High Power Distance: Cultures with high power distance accept a hierarchical order in which everyone has a place, and people are more likely to defer to authority. For instance, countries in the Middle East and Latin America often exhibit high power distance. Organisations in these cultures may have more centralised decision-making, with a clear respect for authority figures.
Low Power Distance: In cultures with low power distance, there is a preference for equality and less acceptance of power inequalities. Western European countries, such as Denmark and Sweden, tend to have low power distance. In these environments, organisations might encourage more participative decision-making and flatter organisational structures.

Uncertainty Avoidance

High Uncertainty Avoidance: Cultures that score high on uncertainty avoidance prefer clear rules, structured environments, and a low tolerance for ambiguity. Japan is an example of a country with high uncertainty avoidance. In these cultures, organisations might emphasise careful planning, risk management, and strict adherence to procedures.
Low Uncertainty Avoidance: Cultures with low uncertainty avoidance are more comfortable with ambiguity and uncertainty. They tend to be more flexible and open to change. Countries like the United States and Singapore often score lower on uncertainty avoidance. Organisations in these cultures may be more innovative, adaptable, and willing to take risks.

Masculinity-Femininity

Masculinity: Masculine cultures value competitiveness, achievement, and success. They emphasise material rewards and often associate success with assertiveness and ambition. Countries like Japan and the United States are considered more masculine. In these cultures, organisations might prioritise performance, competition, and goal achievement.
Femininity: Feminine cultures value quality of life, relationships, and caring for others. Norway and Sweden are examples of countries with high femininity. In these environments, organisations might focus more on employee welfare, work-life balance, and collaborative relationships.

Question 18

What is Organisational Climate?

Answer 18

Organisational climate refers to the shared perceptions employees have about their work environment. It is a composite of the multiple experiences and observations that employees gather from their daily interactions within the organisation. The climate is derived from how organisational policies, practices, and procedures are perceived, particularly in relation to how people are managed and the behaviour of leaders.

Question 19

What is the difference between psychological climate and organisational climate?

Answer 19

Psychological Climate: This term refers to an individual’s perception of their work environment. It is subjective and personal, capturing how each employee interprets their workplace.

Organisational Climate: When these individual perceptions are shared widely enough within a group, team, or organisation, they can be aggregated to describe the overall climate of that group or organisation. This shared perception influences how people behave collectively.

Question 20

What are the dimensions of organisational climate?

Answer 20

These behaviours are interpreted by employees in terms of their well-being, contributing to the overall experience of the climate.

Role Stress and Lack of Harmony: This dimension involves role ambiguity, role conflict, role overload, conflicts between different organisational subunits, low organisational identification, and a lack of management concern or awareness.

Job Challenge and Autonomy: This includes how challenging the work is, the level of autonomy employees have, and the perceived importance of the job.

Leadership Facilitation and Support: This dimension covers the level of trust and support employees feel from their leaders, the facilitation of goals, the promotion of positive relationships, and the balance between psychological influence and hierarchical authority.

Workgroup Cooperation, Friendliness, and Warmth: This refers to the degree of cooperation, friendliness, and warmth among workgroup members.

Question 21

What are key domains in climate for success?

Answer 21

Customer Service Climate:

A strong customer service climate emphasises the importance of delivering high-quality service, addressing customer problems promptly, and ensuring timely delivery of products or services. Organisations with a robust customer service climate typically see higher customer satisfaction and loyalty.
Quality Climate:

In organisations where quality is a priority, senior management is visibly committed to maintaining high standards and clearly focuses on continuous improvement. This climate encourages employees to prioritise quality over speed or cost-cutting, improving overall performance and product reliability.
Involvement Climate:

An involvement climate empowers front-line employees by giving them the authority to meet customer needs and encourages innovation and participation in decision-making. This type of climate fosters a sense of ownership among employees, leading to higher engagement and job satisfaction.
Training Climate:

Organisations prioritising a strong training climate ensure employees have access to ongoing development opportunities. This climate improves employee skills and performance and enhances job satisfaction and retention by showing a commitment to employee growth.
Information/Knowledge Climate:

A climate where clear communication and information sharing are emphasised helps employees understand organisational goals and stay informed about important issues. This transparency fosters trust and alignment within the organisation.
Teamwork Climate:

A positive teamwork climate is characterised by collaboration, fairness in workload distribution, and swift resolution of team-related issues. Such a climate encourages cooperation and mutual support, leading to more efficient and effective team performance.
Overall Satisfaction Climate:

This climate encompasses general job satisfaction, a sense of accomplishment, and organisational pride. When employees feel secure and satisfied with their work environment, they are likelier to remain committed to the organisation and perform at their best.

Question 22

What is Organisational Change?

Answer 22

It outlines the forces that necessitate change and the factors that affect employees’ reactions to these changes.

Question 23

What are the main domains of change?

Answer 23

Organisational Goals and Strategies:

Changes in the external environment or internal leadership can lead to shifts in an organisation’s goals and strategies. For example, during an economic downturn, a company might shift from focusing on market expansion to cost reduction.

Organizing Arrangements:

Changes in organisational structure, policies, and reward systems are often necessary to align with new strategies or external demands. For instance, a company may reorganise its structure to be more agile in response to rapid market changes.

Social Factors:

Management style and organisational culture can evolve due to new leadership or changing workforce demographics. A shift towards more collaborative and inclusive management styles can significantly impact employee engagement and performance.

Individual Attributes:

Changes in work methods, such as adopting new technologies, often require employees to develop new knowledge, skills, and abilities (KSAs). Training and development become crucial as organisations innovate and adapt to technological advancements.

Work Methods:

Innovations in technology and changes in job design or workflows can lead to more efficient operations but may also require significant retraining and adjustments in employee roles and responsibilities

Question 24

What drives organisational change?

Answer 24

Actions of Competitors:

Innovation and Market Pressure: When a competitor like Apple releases a groundbreaking product (e.g., the iPhone), it forces other companies to innovate quickly or risk losing market share. Competitive pressures drive organisations to evolve to stay ahead continuously.

Government Legislation:

Regulatory Changes: New laws and regulations, such as congestion charges or enhanced maternity benefits, can prompt organisations to relocate, adjust their workforce, or change operational strategies to remain compliant and competitive.

Environmental Factors:

Climate Change and Sustainability: Increasing pressure to adopt greener practices due to environmental concerns and regulations pushes organisations to innovate in energy efficiency, waste reduction, and sustainable sourcing.

Demographic Factors:

Ageing Population and Workforce Dynamics: As populations age, organisations may face challenges in recruiting younger talent, leading them to retain older workers longer, seek skilled labour abroad, or automate certain tasks.

Ethical Considerations:

Corporate Social Responsibility (CSR): Organisations increasingly face pressure to act ethically, ensuring gender pay equality, reducing tax avoidance, or adhering to environmental and social governance (ESG) standards.

Leadership:

Leadership Changes: New leaders often bring new visions and strategies, driving organisational change. For example, political leaders like Barack Obama and Donald Trump attempted to implement significant policy changes, demonstrating how leadership can directly impact organisational and national strategies.

Question 25

What are two types of change according to Weick and Quinn?

Answer 25

Episodic Change:

Characteristics: Episodic change is planned, large-scale, and potentially revolutionary. It aims to bring about fundamental and lasting changes within the organisation. Examples include restructuring the organisation, making large-scale redundancies, or acquiring another company.
Impact: These changes are often highly visible and resource-intensive, involving significant time, money, and effort. However, they are seen as a gamble, with a higher risk of failure due to their all-or-nothing nature.
Examples: Closing a factory, opening a new operation in a different country, or implementing a major organisational restructuring.

Continuous Change:

Characteristics: Continuous change is more gradual, ongoing, and emergent. It involves continuous reflection, learning, and incremental improvements. Organisations with a culture of continuous improvement empower employees to innovate and improve processes without seeking extensive permission.
Impact: Continuous change is often more sustainable as it promotes a culture of ongoing adaptation and improvement. It is more likely to succeed in environments where bureaucracy is minimised, and employees are encouraged to take the initiative.
Examples: Continuous process improvement, ongoing training and development, or incremental changes in product design.

Question 26

What is the systematic perspective on change?

Answer 26

The systems perspective views organisations as dynamic systems composed of interrelated subsystems. This perspective emphasises that changes in one subsystem will inevitably affect other subsystems, necessitating a holistic approach to managing change.

Question 27

What are the four different systems?

Answer 27

Work: The daily activities and processes carried out by employees, including task design, pressures, and rewards.

People: The knowledge, skills, attitudes, experiences, and characteristics of the workforce.

Formal Organisation: The structure, systems, and policies that govern organisational operations.

Informal Organisation: The emergent processes, such as power dynamics, influence, values, and norms, that develop over time.

Question 28

What is the Burke-Litwin Model?

Answer 28

Is a comprehensive framework for understanding organisational change. It focuses on the interaction between different factors within the organisation.

Transformational vs. Transactional Factors:

Transformational Factors: These include mission and strategy, leadership, and organisational culture. Changes in these areas have a widespread impact across the entire organisation. Transformational changes are often driven by shifts in the external environment.
Transactional Factors: These include organisational structure, systems, management practices, and climate. Changes in transactional factors are more focused on optimising or fine-tuning specific areas of the organisation and are less likely to have organisation-wide effects.

Impact of External Environment:

The external environment is considered the primary driver of organisational change. Changes in the external environment (e.g., market conditions, regulatory changes) first impact transformational factors, which then influence transactional factors, ultimately affecting individual and organisational performance.

Interrelationships:

The model highlights that changes in one factor will lead to changes in others. For instance, a shift in organisational culture (transformational factor) will likely necessitate changes in management practices and systems (transactional factors) to support the new cultural direction.

Question 29

What is the learning organisation concept?

Answer 29

Represents a proactive approach to change, emphasising creating a culture where continuous learning and adaptation are ingrained in the organisation’s operations. This perspective is rooted in the belief that the ability to learn and adapt quickly is the most sustainable competitive advantage in a rapidly changing and interconnected world.

Question 30

What are the key concepts to the learning organisation concept?

Answer 30

Action Learning:

Definition: In action learning, organisations continuously review their operations to diagnose gaps between current and desired performance. This approach involves setting objectives for change, implementing those changes, evaluating outcomes, and then institutionalising the process as a regular part of organisational behaviour.
Cycle of Action Learning:
1) Diagnosing: Identifying gaps between current and desired performance.
2) Objective Setting: Defining what needs to change to close the gaps.
3) Implementation: Executing the necessary changes.
4) Evaluation: Assessing the impact of the changes.
5) Institutionalisation: Embedding the changes into the organisation’s culture and processes.

The Learning Organization:

Definition: A learning organisation is skilled at creating, acquiring, and transferring knowledge and adapting its behaviour based on new insights. This continuous learning process ensures that the organisation remains agile and responsive to external pressures and changes.
Key Proponents: Argues that the ability to learn faster than competitors may be the only sustainable competitive advantage

Question 31

What are the mechanisms for fostering a learning organization?

Answer 31

Training and Development Plans Linked to Business Strategy:
Ensures employee development aligns with strategic goals, preparing the workforce to meet future challenges

Development Through Line Management:
Managers guide employees to improve their KSAs (Knowledge, Skills, and Abilities) relevant to their roles and the organisation’s needs.

Personal Development and Performance Reviews:
Employees are encouraged to set personal and professional development goals during performance reviews. These reviews are opportunities for employees to identify areas for improvement and for managers to support their development.

Experiential Learning Opportunities:
Employees regularly switch roles to gain a broader understanding of the organisation, enhancing their versatility and adaptability.

Question 32

What are Daft’s Seven-Stage Model for Implementing Change?

Answer 32

Diagnose a True Need for Change:

The first step is to identify the problem or opportunity that necessitates change. This requires a thorough analysis of the organization’s current state and understanding the underlying issues or challenges.
Effective diagnosis often involves collecting data, consulting with stakeholders, and analysing the organization’s environment to ensure the perceived need for change is based on solid evidence.

Find an Idea that Fits the Need:

Once the problem is identified, the next step is to find a solution or idea that directly addresses the need. The chosen solution should be appropriate for the specific issue and aligned with the organization’s goals and culture.
This stage may involve brainstorming, researching best practices, or adapting innovative ideas from other contexts.

Get Top Management Support:

Support from top management is critical for the success of any change initiative. Leaders must champion the change, allocate resources, and provide the authority to drive the change forward.
Without strong backing from senior leadership, change efforts will likely falter due to a lack of direction, resources, or organisational buy-in.

Design the Change for Incremental Implementation:

Daft emphasises the importance of implementing change incrementally rather than all at once. By breaking down the change into smaller, manageable steps, organisations can address problems as they arise and adjust the approach as needed.
This phased approach reduces the risk of overwhelming the organisation and allows for smoother transitions.

Develop Plans to Overcome Resistance to Change:

Resistance to change is a common challenge, so it is essential to plan for it. This involves understanding the concerns and objections of those affected by the change and developing strategies to address them.
Key Strategies Include:
Communication and Education: Clearly explain the need for change, its benefits, and how it will be implemented.
Participation and Involvement: Involving employees early ensures they feel a sense of ownership and commitment to the change.

Create Change Teams:

Forming teams dedicated to implementing the change can enhance the process’s effectiveness. These teams manage specific aspects of the change and ensure the implementation stays on track.
Change teams should include individuals with the right mix of skills, knowledge, and influence to drive the change effectively.

Foster Change Champions:

Change champions are individuals within the organisation who are passionate about the change and committed to making it happen. These volunteers help to motivate others, provide support, and advocate for change throughout the organisation.
Champions play a crucial role in sustaining momentum and ensuring the change fully integrates into the organization’s operations.

Question 33

What are Kotter’s Eight Reasons for Change Failure?

Answer 33

Failure to Establish a Sense of Urgency:

If people do not see the need for immediate action, they are less likely to commit to change. Therefore, it’s important to create a compelling case for why change is necessary now.

Failure to Form a Powerful Guiding Coalition:

Change efforts need strong leadership and a team capable of driving the change. A weak or fragmented leadership team can undermine the initiative.

Failure to Create a Vision:

A clear vision provides direction and motivation. Without a well-articulated vision, employees may not understand the purpose of the change or how it benefits them and the organisation.

Failure to Communicate the Vision:

Even with a strong vision, if it is not effectively communicated, it will not inspire or guide the organisation. Repeated, consistent communication ensures everyone understands and supports the change.

Failure to Empower Others to Act on the Vision:

Employees must be given the authority, resources, and support to contribute to the change. If they are not empowered to act, the change will stagnate.

Failure to Plan for and Create Short-Term Wins:

Early successes are crucial for building momentum and demonstrating the benefits of the change. Without these, enthusiasm can wane, and resistance may grow.

Failure to Consolidate Improvements and Produce Still More Change:

Change is an ongoing process. Building on initial successes is important by continuing to drive improvements and adapting to new challenges.

Failure to Institutionalise New Approaches:

New behaviours, processes, and practices must be embedded into the organisational culture for change to be lasting. The organisation will likely revert to old ways if the change is not institutionalised.