Introduction to ManagementThink 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 ManagementAll 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 ManagementOrganisational CultureSo 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 ManagementOrganisational Culture - DefinedThe 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 ManagementOrganisational Culture - Defineda 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 ManagementOrganisational Culture - DefinedOne 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 ManagementOrganisational Culture - DefinedLundberg (1990) has developed these definitions further and split culture into a seven point plan.

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

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 ManagementOrganisational Culture - DefinedCulture gives people something in common and serves to emphasise what is unique about a particular group or organisation.

Culture has an enduring quality and is not easily changed.

Culture has symbolic significances and is observable in traits such as language that everyone understands.

Culture is invisible and deeply engrained in people conscious.

Culture is modifiable, but only with some difficulty

Introduction to ManagementSchein suggests the following elements shape an organisations culture:

Introduction to ManagementSchein Elements of CultureBasic 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 respectedThe basis of the firms ability to competeThe use of involvement and participationHow and whom makes decisions

Introduction to ManagementSchein Elements of CultureValues 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 ManagementSchein Elements of CultureArtefacts and Creations

As the most visible indicators of culture, these include elements such as:

Physical layout of the buildingCommunication methodsDress codeSocial interplay and informal structure

Introduction to ManagementSchein Elements of CultureArtefacts and Creations

Artefacts and Creations can be split into six elements:

NormsThese 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 ManagementSchein Elements of CultureArtefacts and Creations

LanguageThe way managers speak to subordinates and vice versa is a clear indicator of culture

SymbolsUsed as a way of communicating, these is include the way an office is set out.

Introduction to ManagementSchein Elements of CultureArtefacts and Creations

RitesThese 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 ManagementSchein Elements of CultureArtefacts and Creations

MythsUsed as a method of communicating core values, they are used to convey the history/feel of the organisation.

TaboosThese 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

Introduction to ManagementKey Elements which make up an organisations cultureSo what contributes to an organisations culture ?Structure and HierarchyLayoutRules and RegulationsUniformPower and StatusSymbolsLanguageNormsHistoryCommunication

Introduction to ManagementHarrisons Model of CultureA simple way to identify different cultures within an organisation is by adopting Harrisons (1972) model.

Harrison splits culture into four classifications:

Role CultureTask CulturePower CulturePerson Culture

Introduction to ManagementHarrisons Model of CultureThe 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 ManagementHarrisons Model of CultureThe 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 ManagementHarrisons Model of CultureThe 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 ManagementHarrisons Model of CultureThe 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 ManagementCommon Characteristics of a CultureStaying 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 ManagementCharacteristics of a CultureLean 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

Introduction to ManagementBackward Looking CulturesA company with a backward looking culture is likely to be:

Product or Procedure ledControlled by traditional managers who have worked their way up the organisationConservative in attitudeResistant to changeInward lookingA risk avoider

Introduction to ManagementForward Looking CulturesA company with a forward looking culture is likely to be:

Market ledInclined to trust employees to make decisionsKeen to introduce new talent to bring in bright new ideasSeek changeMonitor the external environment and be proactiveBe prepared to take risks.

*