organisational culture - handout 2 (2)
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ORGANIZATIONAL CULTURE
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Introduction
• Culture is generally defined as the way of doing things
in a particular society.
• ORGANISATIONAL CULTURE is a collection of shared
values and beliefs in an organisation
• Organisational culture is not something that is writtendown or easily stated.
• Organisational culture refers to values, beliefs, and
norms of people/workers in an organisation.
• It is an intangible mixture of rules, relationships, value,
customs etc. which taken together describe the
distinctive “feel of the organisation.
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Characteristics from which it is possible to
develop an understanding of an
organisation’s culture are:
Mission statementBehaviour patterns – interaction within the
organisation and between the organisation and
its stakeholder
Distribution of authority and decision-makingrganisation structure
!ature of leadership
Introduction
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"alues of the organisation#
$ntrepreneurial spirit – degree of innovation%
competitiveness% fle&ibility and drive fore&cellence of the organisation#
'eceptiveness to embrace change – proactive
(anticipating and planning for change) or
reactive (coping with change as and when itarises)
Introduction
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Classification of organi*ational culture
+ower Culture,ithin a power culture% control is the key
element# Decisions in an organisation that
display a power culture are centralised
around one key individual#- Control is e&ercised from the centre by the
selection of key individuals#
- here are few rules and procedures#
- Decisions taken largely on the balance of
influence#
$g: small and medium entrepreneurial
organi*ations
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Role Culture
.n a role culture% organisations are split intovarious functions and each individual within the
function is assigned a particular role.
Rests on the strength of strong organizational‘pillars
Eg! The functions of specialists! "inance#
purchasing# pro$uction
Role or %o& $escription is often 'ore i'portantthan the in$i(i$ual an$ position.
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Tas) Culture
/ task culture refers to a team basedapproach to complete a particular tas)#
* +o& oriente$ or pro%ect oriente$
* ,ee)s to &ring together the right resource
an$ people# an$ utilizes the unif-ing
poer of the group.
* Influence is i$el- sprea$ an$ &ase$
'ore on e/pert poer than on position or
personal poer.
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+erson Culture
-he focus of the organisation is thein$i(i$ual or a particular ai'#
- he individual is the central focus and any
structure e&ists to serve the individuals
within it#
- .ndividuals have almost complete autonomyand any influence over them is likely to be
on the basis of personal power#
$g: 0roups of /rchitects% doctors ect#
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Le(els of Culture
Le(el 0 1 Artifacts!
This inclu$es ph-sical space an$ la-out# thetechnological output# ritten an$ spo)en languagean$ o(ert &eha(ior of group 'e'&ers.
Le(el 2 1 Nor's an$ (alues!
Cultural learning reflects so'eones original (alues.
Le(el 3 1 4asic un$erl-ing assu'ptions!
I'plicit assu'ptions that actuall- gui$e &eha(ioran$ $eter'ine ho group 'e'&ers percei(e# thin)an$ feel a&out things.
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Does organisational culture affect theorganisation’s performance1
0ood culture is good for business
Culture has three functions: -Corporate culture is deeply embedded form of socialcontrol that influences employee decisions andbehaviours
Corporate culture is the social glue that bonds people
together and makes them feel part of theorganisational e&perience
Corporate culture assists the sense-making processe#g# organisational events
(Mc2hane and "on 0linow% 3445)
Organisational culture and performance
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Development of rgani*ational Culture
5istor-
he reason% and manner in which% the
organi*ation was originally formed#
6ri'ar- function an$ technolog-
!ature of the technological process andmethods of undertaking work% which in turn
also affect structure and culture#
Goals an$ o&%ecti(es
he combination of ob6ectives and resultantstrategies will influence culture and may
itself be influenced by changes in culture#
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,ize
/ rapid e&pansion% or decline in si*e and rate
of growth and resultant changes in staffingwill influence structure and culture#
Location
.t can also affect the nature of servicesprovided% the sense of 7boundary’ and
distinctive identity and opportunities for
development#
7anage'ent 8 ,taffingop e&ecutives can have considerable
influence on the nature of corporate culture#