2 organisational culture amanda werner. learning outcomes explain the concept of organisational...
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2ORGANISATIONAL
CULTUREAmanda Werner
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Learning outcomes
• Explain the concept of organisational culture.• Distinguish between espoused and enacted values.• Debate the importance of culture with reference to the
Shangri-La case study.• Discuss various methods used to assess organisational
culture.• Identify key factors used to assess organisational
culture.• Identify and describe various types of culture.
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Learning outcomes• Suggest a strategy and techniques for establishing a
performance culture in an organisation.• Discuss the socialisation process and how it can be
manipulated to ensure that a new employee internalises the organisational culture.
• Discuss the importance of ethics in a global environment and explain how an ethical culture can be reinforced in the organisation.
• Discuss the merits of a culture that endorses the appreciation of diversity.
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Introduction
• Scientific management approach vs. perceiving the organisation as a social entity
• Organisational leaders need to determine what type of culture will reflect the organisation’s values and vision and then instil this behaviour across the organisation
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Organisational culture
• A system of shared assumptions held by members that distinguishes one organisation from another.
• Culture as a three-layered entity:
– Basic assumptions people in the organisation hold– which give rise to shared feelings, beliefs and values, and– manifest in symbols, processes and forms and some aspects
of group behaviour.
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Espoused versus enacted values
“We value people. We share information and encourage creativity. We collaborate and learn from each other.”
Espoused values Enacted values
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The importance of organisational culture
• Creates a corporate identity• Creates greater commitment to organisational goals and
objectives• Guides employees in terms of acceptable behaviours and
attitudes• Creates social stability with associated emotional security• Serves as a yardstick for evaluating and correcting
deviant behaviours and for rewarding desired behaviours• Is a barrier to mergers and acquisitions: Shangri-La
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The importance of organisational culture
• Leaders are interested in understanding how the organisational culture influences employees’ behaviour and performance.
• Managers should be aware of cultural differences in the company because culture influences the organisation’s performance.
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Measuring culture
• Degree of objectivity with which one can measure the assumptions on which culture is based is questionable
• Quantitative measurements • Qualitative methods • Culture is not concrete • Visionary companies vs. less visionary companies
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Dominant culture and subcultures
• A dominant culture reflects the core values of an organisation that are shared by most members.
• A subculture develops from the dominant culture and reflects the common problems, experiences and situations with which members are confronted.
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Key characteristics of culture
• Innovation and risk-taking• Attention to detail• Outcome orientation• People focus• Team approach• Aggressiveness vs. supportiveness• Stability versus growth and change
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Hofstede’s dimensions
• Power distance• Uncertainty avoidance• Individualism/Collectivism• Masculinity/Femininity
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Types of culture
• Kreitner and Kinicki (2001: 75):
- Constructive cultures
- Passive-defensive cultures- Aggressive-defensive cultures
• A leadership culture is formed by the shared beliefs, views, feelings, interpretations and behaviours of those in the leadership community and subsequently affects leadership processes, roles, modes, styles and interactions in the organisation.
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Leadership cultures
Leadership dimension Enabling leadership culture
Disabling leadership culture
World view Inclusive, open-minded Exclusive, closed-minded
Attitude Optimistic, confident Pessimistic, anxious
Relationship Warm, personal, close Cold, impersonal
Power Empowering Controlling, directive
Action Risk-taking Conservative, risk-avoiding
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Trompenaar and Hampton-Turner
• Family cultures• Eiffel Tower cultures• Guided missile cultures• Incubator cultures
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Leadership cultures
• The pioneering pattern• The clan pattern• The heritage pattern• The doomsday pattern
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How are cultures established, changed and reinforced in organisations?
• An organisation's initial culture sprouts from its founder’s business philosophy.
• Senior leadership is responsible for establishing a culture that will contribute to the attainments of the organisational goals.
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How are cultures established, changed and reinforced in organisations?
1. Define the optimum culture.
2. Assess the current culture.
3. Do a gap analysis.
4. Engineer cultural change by using specific strategies.
5. Review the organisational culture annually.
(Miller 2004)
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Strategies for organisational change (Collins & Porras, 1998: 136))
• Commitment of senior leadership• Orientation and training programmes• Internal “universities” and training centres• On-the-job socialisation• Mentoring• Rigorous policies of up-through-the-ranks promotion
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Mechanisms to establish and reinforce culture (Collins & Porras, 1998: 136)
• Legendary stories• Unique language • Corporate songs, cheers, affirmations and pledges• Tight screening processes• Incentive and advancement criteria
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Mechanisms to establish and reinforce culture (Collins & Porras, 1998: 136)
• Awards, contests and public recognition• Tolerance for honest mistakes• Financial and time investments to create “buy-in”• Celebrations• Plant and office layout• Constant verbal and written emphasis on corporate
values
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Socialisation
• Process through which newcomers learn the values, norms and beliefs of an organisation in order to become an integral part of it.
• As a mechanism to indoctrinate new members into the organisational culture, socialisation should be managed carefully.
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Ethics
• The study of moral principles or values that determine whether conduct or actions are right or wrong.
• Every organisation has an ethical duty to shareholders, employees, customers, suppliers and the community.
• Senior leadership is ultimately responsible for the ethics of an organisation.
• The second King Report on Corporate Governance has formulated ethical principles.
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Characteristics of corporate governance
• Discipline• Transparency• Independence• Accountability• Responsibility• Fairness• Social responsibility
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Creating an ethical culture in an organisation
(Mey, 2004)
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Cornerstone 1Ubuntu
Cultural synergyShared values
Cornerstone 2Training and development
MultiskillingEmpowerment
Mentoring
A cultural diversity model for corporate South Africa
Cornerstone 3Team building
NetworkingTransformation
Managing diversity
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Competencies of leaders
• Modelling the way by personal value commitment of leaders
• Team work and team development
• Challenging the process• Change and innovation• Participative decision
making
• Empowering and enabling others to act
• Creating vision• People development and
empowerment• Defining and managing
organisational culture• Diversity
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Conclusion
Management should determine which values are most imperative for long-term business success and then
consciously manage the integration of these values into the product, processes and behaviour of the
organisation.