Week 4 Organisational Culture

Question 1

What is Organisational Culture?

Answer 1

Definitions Simple: “the way things are done around here” (Deal & Kennedy, 1982) Schein’s (2010) definition: “A pattern of shared basic assumptions learned by a group as it solved its problems of external adaptation and internal integration, which has worked well enough to be considered valid, and, therefore, to be taught to new members as the correct way to perceive, think, and feel in relation to these problems”

Question 2

3 levels of organisational culture

Answer 2

Schein (2010) argued that there are 3 levels: 1. Visible Artefacts (e.g. symbols, rituals) 2. Consciously held Values & beliefs (what members do) 3. Underlying, often unconscious, ideas, beliefs – the essence of culture – most influence but the most difficult to assess/measure Schein’s definition and levels of organisational culture remain the dominant conceptual framework for organisational culture – is widely used and accepted

Question 3

Subcultures in organisations

Answer 3

Past research suggests that organisations consist of distinctive subgroups or subcultures rather than a single homogenous cultural identity

One basis of subcultural growth is the structure of the organisation itself - organisations are internally differentiated into smaller groups, which allows different cultures to evolve

Question 4

What are the three types of subcultures?

Answer 4

1. Enhancing Subcultures: individuals share the beliefs and values of the dominant culture more closely than in the rest of the organisation (eg long-serving employees may have a deeper commitment to an organisation’s culture compared with new recruits)
2. Orthogonal Subcultures: individuals subscribe to core values but simultaneously accept other nonconflicting values and beliefs (eg The marketing department of Hewlett Packard might endorse the company’s dominant culture and also retain their own cultural identity)
3. Counter-culture: individuals directly challenge the values and beliefs of the dominant culture (eg in a merger individuals who possess the original culture may resist the new dominant culture)

Question 5

A dominant culture has…

Answer 5

A dominant culture has a set of core values shared by the majority of the organisation’s members

Question 6

What are values?

Answer 6

Values are “conscious, affective desires or wants of people that guide behaviour” (Ivancevich & Matteson, 2002)

Question 7

Shared common values in organisations can:

Answer 7

1. Help turn routine activities into valuable actions
2. Tie the corporation to the important values of society
3. May provide a very distinct source of competitive advantage

Question 8

Hofstede culture dimensions: Power distance

Answer 8

Acceptance of hierarchy, disparity in power (eg Malaysia & Pakistan high, Sweden & Denmark low)

Question 9

Hofstede culture dimensions: Individualism/Collectivism

Answer 9

Degree to which people work as individuals or groups (eg USA is individualistic, Japan & Sweden more collectivist)

Question 10

Hofstede culture dimensions: Uncertainty Avoidance

Answer 10

Preference for structured versus unstructured situations (eg France is high on uncertainty avoidance - ie prefer structured situations, while Britain is low on uncertainty avoidance – ie more comfortable with less structure and more risk taking)

Question 11

Hofstede culture dimensions: Masculinity

Answer 11

Emphasis on ‘masculine’ values such as assertiveness, independence, insensitivity to feelings (eg US more masculine, Netherlands more feminine)

Question 12

Hofstede culture dimensions: long-term vs short-term orientation

Answer 12

Degree to which people focus on long-term goals (eg Japan more long-term focus, USA more short term)

Question 13

Hofstede culture dimensions: Indulgence vs Restraint

Answer 13

Individual drives/gratification versus stricter social norms regarding behaviour & display of emotions

Question 14

Classification of Organisational Culture (Goffee & Jones)

Answer 14

Question 15

Classification of Organisational Culture

Networked (Type)

Answer 15

(High Sociability – Low Solidarity)

Focus on social aspects

Rituals and celebrations are most notable

Such organisations may be political and often comprise of sub-cultures/cliques

Managers seek consensus

Appropriate when:

Corporate strategies have a long time frame

Knowledge of local markets is a critical success factor

When corporate success is an aggregate of local success

Question 16

Classification of Organisational Culture

Communal (Type)

Answer 16

(High Soc – High Sol)

Typically small fast growing

Employees posses a high organisational identity and membership

Characterised by social events that take on strong ritual significance

Typically religious political or volunteer groups

Appropriate when:

Extensive team work is required

There are real synergies among subunits

When strategies are more long-term than short-term

Question 17

Classification of Organisational Culture

Mercenary (Type)

Answer 17

(Low Soc – High Sol)

Focus on goals, priorities decided by management

Characterised by clear separation of work and social life

Members rarely fraternize outside the office

People stay for as long a their needs are met, and then they move on

Appropriate when:

Change is fast and rampant

Goals are clear and measurable

When nature of competition is clear

Question 18

Classification of Organisational Culture

Fragmented (Type)

Answer 18

(Low Soc – Low Sol)

Weak culture, focus at the individual level

Members display low consciousness of organisational leadership

Members rarely engage in extra-curriculum activities Leaders often feel isolated

Appropriate:

In organisations that rely on outsourcing

In professional organisations such as consulting and law firms

When employees work at home or on the road

Often the result of organisations disrupted by politics or downsizing

Question 19

Strong cultures are assumed to:

Answer 19

1. Enhance performance – but evidence is lacking (eg Peters & Waterman (1982) “In Search of Excellence” identified common cultural values of larger successful US organisations, but Hitt & Ireland (1987) in a follow-up found they were no more successful than other large companies
2. Resist change – it is argued that weak cultures are easy to change – but this may depend on the kind and extent of the change
3. Be better than weak – but the type of culture and the environment are probably more important (Hofstede, et al, 1990)

Question 20

What is the role of leaders?

Answer 20

Leaders have an important role in shaping, despite the fact that they may not have a monopoly over it

Schein (2010 p.2) sought a redefinition of leadership (that leaders really only create and manage culture – that their talent is their ability to work with culture)

Question 21

Schein described 5 ways leaders and managers can influence culture as it evolves:

Answer 21

1. What leaders pay attention to
2. Leader reactions to critical incidents and organisational crises
3. Role modelling
4. Criteria for the allocation of rewards and status
5. Criteria for recruitment, selection, promotion, retirement, and termination (promotion can tell you a lot about a organisational culture, that persons has values that aligns with the organisations values)

Question 22

What does successful change require?

(Hellreigel et al, 1995)

Answer 22

• A good understanding of culture and subcultures
• A vision for the new culture as a guiding principle
• A rationale and sense of urgency for the change
• Support for employees who can enhance the change
• Modelling and living the new culture

Question 23

What are the 3 levels of Intervention (organisational change)

Answer 23

1. Structural - restructuring, work redesign, new technology, new leadership
2. Process - human resource policies, process re-engineering
3. Symbolic - new mission / vision statements

Because of resistance to change, all 3 need to be undertaken simultaneously and followed through with support and feedback (otherwise the change is likely to fail)

Question 24

What is person-culture fit?

Answer 24

The extent to which organisations have cultures that are better suited to certain types of people (good fit) (more likely to move on when you don’t fit with organisational culture, or become part of counter-culture)

Schneider (1987) argues that individuals are attracted to organisations they perceive as having values like their own; and organisations in turn select people who share their values