unit 2 organisational culture
TRANSCRIPT
-
7/29/2019 Unit 2 Organisational Culture
1/28
Week 2
Organisational Culture
Dr Lesley Mearns
-
7/29/2019 Unit 2 Organisational Culture
2/28
-
7/29/2019 Unit 2 Organisational Culture
3/28
What is Culture?
Scheins definition:
Behaviours
Values
Beliefs
Assumes that culture is a neatly bounded
phenomenon
Too simplistic (Legge 2005)
-
7/29/2019 Unit 2 Organisational Culture
4/28
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
-
7/29/2019 Unit 2 Organisational Culture
5/28
Strong Culture
Is said to occur when employees align themselves with
the aims and objectives of the organisation. They
become committed to organisational objectives andwill seek to promote the organisational culture the
way we do things around here
Management can empower employees and need less
control mechanisms
-
7/29/2019 Unit 2 Organisational Culture
6/28
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
-
7/29/2019 Unit 2 Organisational Culture
7/28
-
7/29/2019 Unit 2 Organisational Culture
8/28
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 bevery bureaucracy
Decisions can be made quickly
-
7/29/2019 Unit 2 Organisational Culture
9/28
Culture
2. Role Culture Authority is delegated to peoplewithin 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 byprocedures, roles descriptions and authority
definitions. Predictable and consistent systems and
procedures are highly valued
-
7/29/2019 Unit 2 Organisational Culture
10/28
-
7/29/2019 Unit 2 Organisational Culture
11/28
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 anorganisation suggests that a group of like-minded
individuals pursue the organisational goals.
Some professional partnerships can operate asperson cultures, because each partner brings a
particular expertise and clientele to the firm.
-
7/29/2019 Unit 2 Organisational Culture
12/28
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. Rolecultures would have a lot of rulebooks. There would be more reliance onindividualism in a power culture.
Organisational Structures: Reporting lines, hierarchies, and the way thatwork 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 extendto symbols of power such as parking spaces and executive bathrooms.
Rituals and Routines: Management meetings, board reports and so onmay become more habitual than necessary eg) HP Friday coffeemornings.
Stories and Myths: build up about people and events, and convey amessage about what is valued within the organisation.
-
7/29/2019 Unit 2 Organisational Culture
13/28
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
-
7/29/2019 Unit 2 Organisational Culture
14/28
Culture
Why manage Culture?
Ogbonna and Harris (2002)
On the whole management theory assumes
that an organisations culture is discrete andunitary. It is therefore possible for it to becontrolled by senior management.
If it is possible to control culture, to fail to doso is to miss an opportunity to harness anorganisations human resources
-
7/29/2019 Unit 2 Organisational Culture
15/28
-
7/29/2019 Unit 2 Organisational Culture
16/28
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
-
7/29/2019 Unit 2 Organisational Culture
17/28
Is Managing Culture Feasible?
Functionalist Perspective Culture can and
ought to be a variable an organisation has in
the possession of managementcould be
manipulated. Possible therefore for senior
management to override other sub-cultures
beliefs and values
-
7/29/2019 Unit 2 Organisational Culture
18/28
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 sub-
group
-
7/29/2019 Unit 2 Organisational Culture
19/28
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 at160 organizations over ten years and found that
culture can enhance performance or prove
detrimental to performance. Organisations withstrong performance-oriented cultures witnessed
far better financial growth.
-
7/29/2019 Unit 2 Organisational Culture
20/28
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 isinfluenced by national culture.
-
7/29/2019 Unit 2 Organisational Culture
21/28
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.
-
7/29/2019 Unit 2 Organisational Culture
22/28
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 individualsmake decisions, feel, and act in response to
the opportunities and threats affecting the
organization
-
7/29/2019 Unit 2 Organisational Culture
23/28
Social constructionism suggests organisational culturesemerge from collective experiences of members
Organisational stories indicate the health of theorganisation
The founding story often contains lessons learnt from theentrepreneur whose vision may still dominate the firm
Organisational stories reflect how its members view theworld and operate together
Rituals establish boundaries and relationships between
stakeholders of the organisation and is reflected in thejargon which emerges
Symbols are powerful visual objects of organisationalcultures
Levels of Culture
-
7/29/2019 Unit 2 Organisational Culture
24/28
Values results in collective actions
Value statements are adopted whichexpresses organisational commitment to
certain areas Values may result in a strong corporate
identity
Values enhance collective commitment
Strong values reduce the need for formal andbureaucratic controls
Culture and Values
-
7/29/2019 Unit 2 Organisational Culture
25/28
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
-
7/29/2019 Unit 2 Organisational Culture
26/28
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#!
http://www.youtube.com/watch?v=sO2vNyBrocohttp://www.youtube.com/watch?v=sO2vNyBrocohttp://www.youtube.com/watch?v=X8S09YGI_P8http://www.youtube.com/watch?v=X8S09YGI_P8http://www.youtube.com/watch?feature=player_embedded&v=OxQ3LiEKqtYhttp://www.youtube.com/watch?feature=player_embedded&v=OxQ3LiEKqtYhttp://www.youtube.com/watch?feature=player_embedded&v=OxQ3LiEKqtYhttp://www.youtube.com/watch?feature=player_embedded&v=OxQ3LiEKqtYhttp://www.youtube.com/watch?v=X8S09YGI_P8http://www.youtube.com/watch?v=X8S09YGI_P8http://www.youtube.com/watch?v=sO2vNyBrocohttp://www.youtube.com/watch?v=sO2vNyBroco -
7/29/2019 Unit 2 Organisational Culture
27/28
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 leadershipskills would you need to successfully manage theworkforce?
Would you manage employees at Google in the sameway as those employed at the Silicon Valley Bank?Explain your answer
-
7/29/2019 Unit 2 Organisational Culture
28/28
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 theorganisation
If you were a manager in IKEA, what would you do to
sustain the current culture?
What sort of employment practices would you need toensure that employees engaged with the organisational
culture?