Week 2 Organisational Culture

Dr Lesley Mearns

What is Culture?
Schein (1984:9) a pattern of basic assumptions invented, discovered or developed by a given group as it learns to cope with its problems of external adaptation and internal integration that 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 those problems

What is Culture?
Scheins definition:
Behaviours Values Beliefs

Assumes that culture is a neatly bounded phenomenon Too simplistic (Legge 2005)

Organisational Culture
Ravasi and Schultz (2006) - organisational
culture is a set of shared mental assumptions

that guide interpretation and action in

organisations by defining appropriate behaviour for various situations

Strong Culture
Is said to occur when employees align themselves with
the aims and objectives of the organisation. They become committed to organisational objectives and will seek to promote the organisational culture the way we do things around here Management can empower employees and need less control mechanisms

Weak Culture
Employees do not see themselves sharing the same goals as the organisation. They are not committed to the aims and objectives of the organisation Management must have controls in place. They must use procedures and bureaucracy to control the workforce

Process Culture
Deal and Kennedy (1982) - organisational culture as the way things get done around here. Should mean a quick response if things are going wrong Deal and Kennedy (1982) identified - The Process Culture - People become obsessed with how things are done not with what is to be achieved often associated with bureaucracies. There are many criticisms eg) red tape - however they do produce consistent results, which is ideal in, for example, public services.

Culture
Charles Handy (1985) and Harrison (1972) four types of organisational:
1. Power Culture concentrates power among a few. Control comes from the centre. Power and influence spread out from a central figure or group. Power Cultures have few rules and tend not to be very bureaucracy Decisions can be made quickly

Culture
2. Role Culture Authority is delegated to people within a defined structure. These organisations tend to take on a hierarchical and bureaucratic form. Power comes from a person's position rather than from expertise. The power is controlled by procedures, roles descriptions and authority definitions. Predictable and consistent systems and procedures are highly valued

Culture
3. Task Culture - teams are formed to solve particular problems. Power comes from expertise as long as a team requires expertise. This type of culture often features multiple reporting lines eg) matrix structure.

Culture
4. Person Culture happens when all individuals believe themselves superior to the organisation. Survival can become difficult for such organisations, since the concept of an organisation suggests that a group of like-minded individuals pursue the organisational goals. Some professional partnerships can operate as person cultures, because each partner brings a particular expertise and clientele to the firm.

Cultural Web (G. Johnson 1988)

The Paradigm: What the organization is about; what it does; its mission; its values. Control Systems: The processes in place to monitor what is going on. Role cultures would have a lot of rulebooks. There would be more reliance on individualism in a power culture. Organisational Structures: Reporting lines, hierarchies, and the way that work flows through the business. Power Structures: Who makes the decisions, how widely spread is power, and on what is power based? Symbols: These include organisational logos and designs, but also extend to symbols of power such as parking spaces and executive bathrooms. Rituals and Routines: Management meetings, board reports and so on may become more habitual than necessary eg) HP Friday coffee mornings. Stories and Myths: build up about people and events, and convey a message about what is valued within the organisation.

Culture
Schein (1992) culture is also influenced by:
External environment Industry Size and nature of the organizations workforce Technologies the organization uses The organizations history and ownership

Culture
Why manage Culture? Ogbonna and Harris (2002) On the whole management theory assumes that an organisations culture is discrete and unitary. It is therefore possible for it to be controlled by senior management. If it is possible to control culture, to fail to do so is to miss an opportunity to harness an organisations human resources

Culture and HRM

Managing culture to create a unifying set of values in tune with the interests of senior managers produces a corresponding improvement in business performance An organisations unique culture, as a source of competitive advantage, is extremely difficult for competitors to replicate

Culture and HRM

Cultural change offers the prize of commitment, improved performance and profit Assumption that it is possible to manipulate a culture to generate employees commitment continues to underpin many of the current debates and developments in HRM

Is Managing Culture Feasible?

Functionalist Perspective Culture can and ought to be a variable an organisation has in the possession of management could be manipulated. Possible therefore for senior management to override other sub-cultures beliefs and values

Is Managing Culture Feasible?

Interpretative Perspective Culture is essentially explanatory. Culture is something an organisation is it is a product of continuous review and negotiated continuity. Highly dynamic. Cannot be easily manipulated by one subgroup

Culture
Harvard Business School (2003) - reported that culture has a significant impact on an organisations long-term economic performance. The study examined the management practices at 160 organizations over ten years and found that culture can enhance performance or prove detrimental to performance. Organisations with strong performance-oriented cultures witnessed far better financial growth.

Culture
Denison, Haaland, and Goelzer (2004) culture contributes to the success of the organisation, but not all dimensions contribute the same. It concluded that the impacts of these dimensions differ by global regions, which suggests that organisational culture is influenced by national culture.

Culture
Adkins and Caldwell (2004) - job satisfaction
is positively associated with the degree to which employees fit into both the overall culture and subculture in which they worked.

Culture
Organisational culture is reflected in the way people perform tasks, set objectives, and administer the necessary resources to achieve objectives. Culture affects the way individuals make decisions, feel, and act in response to the opportunities and threats affecting the organization

Levels of Culture
Social constructionism suggests organisational cultures emerge from collective experiences of members Organisational stories indicate the health of the organisation The founding story often contains lessons learnt from the entrepreneur whose vision may still dominate the firm Organisational stories reflect how its members view the world and operate together Rituals establish boundaries and relationships between stakeholders of the organisation and is reflected in the jargon which emerges Symbols are powerful visual objects of organisational cultures

Culture and Values

Values results in collective actions Value statements are adopted which expresses organisational commitment to certain areas Values may result in a strong corporate identity Values enhance collective commitment Strong values reduce the need for formal and bureaucratic controls

Culture
It has been suggested that organisational
culture may impact on the level of employee

creativity, the strength of employee

motivation, and the reporting of unethical behaviour

Corporate Culture
http://www.youtube.com/watch?v=sO2vNyBr oco Strategy and Culture Silicon Valley Bank http://www.youtube.com/watch?v=X8S09YGI_P 8 http://www.youtube.com/watch?feature=player _embedded&v=OxQ3LiEKqtY#!

Corporate Culture
Consider the videos that you have just watched:
Do you agree with the definitions that have been offered for organisational culture? Do you think that it is important to manage? Please explain your answer What kind of organisational culture did you identify at Google? What kind of management and leadership skills would you need to successfully manage the workforce? Would you manage employees at Google in the same way as those employed at the Silicon Valley Bank? Explain your answer

Management of People
Read the IKEA case study:
In groups consider:
How would you go about recruiting and selecting employees that would fit into the culture of the organisation If you were a manager in IKEA, what would you do to sustain the current culture? What sort of employment practices would you need to ensure that employees engaged with the organisational culture?