HR0372 Click to edit Master title style Week Two

Click to edit Master subtitle style Organisational Culture

29/03/2014

 Think about any part time job you may have or indeed life at university, what do you like about the organisation and what do you dislike. For example Do you think there are too many rules ? Do you like the environment because it is relaxed ? Do you hate wearing a uniform ? Do you like the fact they always offer promotion to existing members of staff. Do you like the way everyone works as a team ? Do you like the fact they celebrate with cakes on your birthday ? Do these facts make you work less or harder ?
Introduction to Management

 All of these activities make up an organisations culture A Manager must identify which type of culture will develop a more productive, motivated and stable workforce. Elements of the existing organisation which are leading to dissatisfied staff, high levels of absence and turnover are parts of the culture which must be changed.

Introduction to Management

Organisational Culture
So lets consider what we mean by culture:
The Culture of an organisation is one of the intangible aspects of a company which affect how employees behave and carry out their daily activities. A Manager must design an appropriate culture.

Introduction to Management

Organisational Culture - Defined

The word Culture has been used by many different people to explain a variety of phenomena. In business terms, key definitions include: the customary and traditional way of doing things, which is shared to a greater or lesser degree by all members, and which the new members must learn and at least partially accept, in order to be accepted into the services of the firm (Jacques, 1952)
the ideologies, beliefs and deep set values which occur in all firmsand are prescriptions for the ways in which people should work in these organisations (Harrison, 1972)
Introduction to Management

Organisational Culture - Defined

a dominant and coherent set of shared values conveyed by such symbolic means as stories, myths, legends, slogans, anecdotes and fairy tales (Peters and Waterman, 1982) the way we do things around here (Deal and Kennedy, 1982)

Introduction to Management

Organisational Culture - Defined

One of the most widely accepted definition of organisational culture is that given by Edgar Schein. a pattern of basic assumptions invented, discovered or developed by a given group as it learns to cope with its problems of external adaption and internal integration that has worked well enough to be considered valuable and, therefore, to be taught to new members as the correct way to percieve, think and feel in relation to these problems (Schein, 1985)

Introduction to Management

Organisational Culture - Defined

Lundberg (1990) has developed these definitions further and split culture into a seven point plan. 1. Culture refers to a common frame of reference, largely taken for granted and widely shared by a high proportion of the members of the group or organisation 2. Culture is something acquired by these people that governs their behaviour; is taught to newcomers and, when learned, consists of a code or set of rules that regulate certain aspects of behaviour.
Introduction to Management

Organisational Culture - Defined

3. Culture gives people something in common and serves to emphasise what is unique about a particular group or organisation. 4. Culture has an enduring quality and is not easily changed. 5. Culture has symbolic significances and is observable in traits such as language that everyone understands.

6. Culture is invisible and deeply engrained in people conscious.

7. Culture is modifiable, but only with some difficulty

Introduction to Management

 Schein suggests the following elements shape an organisations culture:

Introduction to Management

Schein Elements of Culture

Basic Assumptions
In Scheins view, basic assumptions lie at the very core of an organisations culture. They are often so fundamental they are taken for granted. Typical basic assumptions include: The basis on which individuals are respected The basis of the firms ability to compete The use of involvement and participation How and whom makes decisions
Introduction to Management

Schein Elements of Culture

Values and Beliefs At the next level of visibility, Schein discusses the importance of Values and Beliefs as a characteristic of culture. These are the moral and ethical codes which shape an organisation. For example: Equality in Promotion, Environmental Policy. Such values and beliefs must be followed through to create a culture.

Introduction to Management

Schein Elements of Culture

Artefacts and Creations
As the most visible indicators of culture, these include elements such as:
Physical layout of the building Communication methods Dress code Social interplay and informal structure

Introduction to Management

Schein Elements of Culture

Artefacts and Creations

Artefacts and Creations can be split into six elements:

Norms These are the assumptions made by employees following historical evidence as to the normal ways of achieving things in the organisation. For example, it may be a norm to work 60 hours per week to gain promotion.

Introduction to Management

Schein Elements of Culture

Artefacts and Creations

Language The way managers speak to subordinates and vice versa is a clear indicator of culture
Symbols Used as a way of communicating, these is include the way an office is set out.

Introduction to Management

Schein Elements of Culture

Artefacts and Creations
Rites These are both formal and informal identifiers of culture. For example, the importance played on staff birthdays, retirements, induction all indicators of the caring nature of the organisation

Introduction to Management

Schein Elements of Culture

Artefacts and Creations

Myths Used as a method of communicating core values, they are used to convey the history/feel of the organisation. Taboos These are the indicators of what should not be done in an organisation, eg through formal and informal rules. For example, how do you address senior management
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Key Elements which make up an organisations culture

So what contributes to an organisations culture ?
Structure and Hierarchy Layout Rules and Regulations Uniform Power and Status Symbols Language Norms History Communication

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Harrisons Model of Culture

A simple way to identify different cultures within an organisation is by adopting Harrisons (1972) model.

Harrison splits culture into four classifications:

Role Culture Task Culture Power Culture Person Culture

Introduction to Management

Harrisons Model of Culture

The Role Culture typifies a bureaucratic or functional structure with everyone having tightly controlled, interconnected roles with clear levels of authority and specific activities attached to them.
There are many rules and procedures in place. What characteristics would a typical role culture have ?

Introduction to Management

Harrisons Model of Culture

The Task Culture is a complete opposite to the role culture, and the emphasis is solely on getting a specific task completed, whatever methods are used. There are typically few rules and procedures and status comes from experience and past results.
What characteristics would a typical task culture have ?

Introduction to Management

Harrisons Model of Culture

The Power Culture also lacks formal rules but tends to be an organisation where one powerful individual or a small group of individuals have complete control. This elite co-ordinate everything and often change the rules as they go along.
What characteristics would a typical power culture have ?

Introduction to Management

Harrisons Model of Culture

The Person Culture is often associated with the voluntary sector and exists to serve its members. Individuals within the organisation are allowed to pursue there own destiny and get on with their roles within considerable interference. Can you think of any private sector roles which may adopt this culture ? What characteristics would a typical person culture have ?

Introduction to Management

Common Characteristics of a Culture

Staying close to the customer to guide a companies actions, eg environmentalism Autonomy dividing the company into management units, eg empowerment. Productivity through people treat employees with dignity and consider the whole employee via work life balance

Hands on Management senior managers should walk the floor and implement effective communication eg open plan offices, open door policy and involvement/participation.
Introduction to Management

Characteristics of a Culture
Lean Staff flat structures with few levels of management.

Career Structure offer clear opportunities for progression

Unity ensure everyone is aware of the common purpose, via mission statement, corporate goals, functional goals and individual goals. Evaluation of employees adopt performance appraisal and feedback systems

Training and Development ensure everyone in the organisation is trained and understands the philosophy of the company
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Backward Looking Cultures

A company with a backward looking culture is likely to be:

Product or Procedure led Controlled by traditional managers who have worked their way up the organisation Conservative in attitude Resistant to change Inward looking A risk avoider

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Forward Looking Cultures

A company with a forward looking culture is likely to be: Market led Inclined to trust employees to make decisions Keen to introduce new talent to bring in bright new ideas Seek change Monitor the external environment and be proactive Be prepared to take risks.

Introduction to Management