Transcript Culture-and-the

What is organisational culture?
The unwritten code that affects the attitudes and
behaviours of staff, approaches to decision making
and the leadership style of management.
Further definitions: Organisational Culture
• “The values and standards shared by people and groups within an
organisation”
• “The way we do things around here”
• “The values, attitudes and beliefs of the people working in an organisation
that control the way they interact with each other and with external groups”
• “The attitudes, traits and behavioural patterns which govern the way
individuals interact with others”
• “Organisations have values, policies, rules and guidelines which help them
create an image of their own”
• “The principles, ideologies, beliefs and polices of an organisation which make
it different from others”
• “The collection of briefs norms and values that are shared by groups of
people”
• All of the above!
Types of Organisational Culture
Purpose... Creating a sense of
“who we are”, “what we do”
and “what we stand for”...
 Shared meanings that helps
everyone understand how to
act & behave
 Strong culture = internally
consistent
 The culture MUST be suited
the environment the business
operates in...allowing response
& reaction to market
changes....
Sources of Organisational Culture






Company routines
Formal controls
Organisational structures
Power structure
Symbols
Rituals and myths
Stretch & challenge corner:
 Additional reading: see hand out
‘Organisational culture
is the key to
organisational
excellent....and the
function of leadership
is the creation and
management of
culture” (Edgar Schien)
Links to other topics:
Organisation structures
Delegation
De/centralised
Leadership styles
Leadership styles....HUGE influence on
culture & philosophy of the
organisation
All the way through....THINK about
business EXAMPLES that you could use
to support your points!
Robert Cooke
HW Reading
Edgar Schein
Hofstede
Charles Handy
What is Organisational Culture?
How do the theorists define culture?
Schein
• “The pattern of basic assumptions that a group has invented, discovered or
developed to cope with its problems of external adoption or internal
integration, that has worked well and are taught to new members as the way to
perceive, think, feel and behave.”
Handy
• “ Deep-set beliefs about the way work should be organised, the way authority
should be exercised, people rewarded, people controlled.”
www.time2resources.co.uk
Types of Culture
• Edgar Schein 3 levels
• Culture is formed over time
www.time2resources.co.uk
Consider:
How visual is
each level to an
outside
observer?
Which is the
most difficult to
understand?
Classifying Organisational Culture
Charles Handy (1981)
Classification system....
Power
Role
Task
Person
Bureaucratic &
entrepreneurial
A04
“THERE IS NO SUCH THING AS A RIGHT
CULTURE, WHAT MATTERS IS WHETHER THE
CULTURE IS RIGHT FOR THE BUSINESS
CIRCUMSTANCES”
Do you agree?
Culture orientation...
 For each...apply a business example
Marketing
Technology
Production
Consolidation Questions
• Reasons for changing culture?
• Problems of culture?
• How to change organisational culture?
• Is culture important?
Changing organisational Culture....
Possible reasons for change?
The existing culture can hinder growth,
development and success.
Some examples when to change:
• Product-led – respond to changing
market conditions (become taskbased)
• Recently privatised business
(become profit orientated)
• Merger or takeover
• Need to motivate staff (become
person-based)
Can you think of any more?
The importance of organisational culture
Influences...
Responding to their external
environment
 Culture adopted- influence
marketing skills & financial
controls
 De/centralised, tall/ fall
structure influence
 Mission statements
 Leadership styles, delegation
‘Focus not on what the
organisation SAYS but on
what it DOES’
Corporate culture, change
management & the approach
of small & large organisations
are important to consider
when answering questions
on management structure &
organisation
June 2012
The retailer, the John Lewis Partnership, is owned by its employees and
has a strong culture that focuses on employee involvement and
welfare. In the recent recession, John Lewis still managed to produce
good financial results. To what extent do you think that the culture of
an organisation determines its financial success in a changing external
environment? Justify your answer with reference to John Lewis and/or
other organisations that you know.
(40 marks)
The retailer, the John Lewis Partnership, is owned by its
employees and has a strong culture that focuses on employee
involvement and welfare. In the recent recession, John Lewis
still managed to produce good financial results.
To what extent do you think that the culture of an organisation
determines its financial success in a changing external environment?
Justify your answer with reference to John Lewis and/or other
organisations that you know.
(40 marks)