Module_10 - Organisational Culture Organisational Dr Retha...

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Unformatted text preview: Organisational Culture Organisational Dr Retha Wiesner Organisational Culture Organisational Definition Definition Culture ... is a pattern of beliefs and expectations shared by the organisation's members. These beliefs and expectations produce norms that powerfully shape the behavior of individuals and groups in the organisation. organisation. (Schwartz & Davis, 1981, p. 33) Organisational culture is the pattern of basic assumptions that a given group has invented, discovered, or developed in learning to cope with its problems of external adaptation and internal integration, and that have worked well enough to be considered valid, and, therefore, to be taught to new members as the correct way to perceive, think, and feel in relation to those problems. think, (Schein, 1984, p. 3) Objectives Objectives define the common characteristics making up define common organisational culture; contrast strong and weak cultures; contrast strong iidentify the functional and dysfunctional effects dentify functional of organisational culture on people and the organisation; explain the factors determining an organisation's explain factors culture; llist the factors that maintain an organisation's ist maintain culture; clarify how culture is transmitted to employees; clarify transmitted and outline the various socialisation alternatives outline socialisation Seven key characteristics of what the organisation values capture the essence of culture: culture: 1. innovation and risk taking; 1. innovation 2. attention to detail; 2. 3. outcome orientation; 3. outcome 4. people orientation; 4. people 5. team orientation; 5. 6. aggressiveness; 6. 7. stability. 7. Elements of Culture Elements Norms are the rules governing behaviour of individuals and groups in organisations individuals Organisational values are those that are shared by Organisational values most of the members of an organisation. most Rites and rituals can be defined as 'a relatively rituals elaborate, dramatic, planned set of activities that combines various forms of cultural expression and that often has both practical and expressive consequences' . consequences' Stories and myths: The term 'myth' is used to refer not only to fictitious stories but also to assertions that have an historical origin but which have a questionable basis in fact. For example, we have the myth of male superiority in management. Elements of Culture (cont) Elements One liners: a brief judgmental statement brief about a person, an event, a procedure, or any other aspect of organisational life (‘meetings are a waste of time’). indicators of an organisation's shared values and norms, its culture. values Symbols (status) and language Symbols (acronyms) (aspro). Culture Is a Descriptive Term Culture It is concerned with how employees It perceive the seven characteristics, not whether they like them whether Do Organisations Have Uniform Cultures? Cultures? Most organisations have a dominant culture Most dominant and numerous sets of subcultures. subcultures. The first expresses the core values that are The shared by a majority of members. Subcultures develop to reflect common Subcultures problems, situations, or experiences that members face such as department or geographical differentiation. geographical Strong versus Weak Cultures Strong The argument is that strong cultures have a The greater impact on employee behavior and are more directly related to reduced turnover. This means the firm's core values are both This intensely held and widely shared. Examples: Microsoft employees who wear Tshirts that say 'Working 100 hours and loving shirts it'. it'. Culture versus Formalisation A strong organisational culture can act strong as a substitute for formalisation; it can create predictability, orderliness, and consistency. Organisational Culture versus National Culture The main thesis is that members of an The organisation develop common perceptions that, in turn, affect their attitudes and behavior. The strength of the effect, however, depends The on the strength of the organisation's culture. National differences or cultures must be taken National into account if accurate predictions are to be made about organisational behavior in different countries. different Culture versus Climate Culture While climate is often transitory, tactical, and manageable over While the relatively short term, culture is usually long-term and strategic. It is very difficult to change. strategic. (Schwartz & Davis 1989, p. 33) One refers to shared perceptions (climate) whereas the other One shared refers to shared assumptions and values (culture). shared ''the culture concept may have literally consumed the climate the concept' Organisational climate is a description of how people Organisational experience organisational culture... Culture is the underlying mechanism that is only partly reflected by the climate. mechanism (Callahan & Fleenor 1988, p. 423) Theories of Culture Theories There is no comprehensive theory of There organisational culture. Various writers have attempted to explain Various various aspects of culture, for example, the function of rites (Beyer & Trice 1987), the function basis for the differing content of cultures basis (Jones 1983), and the effect of organisational stories on psychological tension (Martin et al stories 1983). Ouchi & Wilkins (1985) classify theories of organisational culture into two types: Ouchi • • Macroanalytic theories which attempt to understand the culture of a whole group or subgroup, the functions that culture performs in maintaining the group, or the conditions under which the group and its cultures and subcultures develop; and subcultures Microanalytic theories which present culture as something that resides within each individual and can be understood through the cognitive processes of sense-making, learning, and causal attribution, or by probing the unconscious mind. the Origins of Culture Origins The founder somehow imposes a fullyThe somehow developed culture on the organisation they developed create. Whatever the founder's vision for an Whatever organisation, the assumptions, values and norms that eventually characterise its culture, are those that are internalised by its members. members. An important means for shaping culture is by An selecting staff who have values that are selecting compatible with those of the organisation. Enculturation Enculturation Enculturation is the process whereby new Enculturation members come to adopt the culture of an members established group, that is, to share the assumptions, norms and values of other group members. group In adopting an organisation's culture, a new In employee learns not just 'how we do things around here', but more importantly comes to around accept 'how we think and what we value around here'. around Seven steps which can be taken to ensure that new members are effectively socialised into an organisation organisation • careful recruitment and selection; careful recruitment • use of humility-inducing experiences to use experiences encourage acceptance of the organisation's cultural values; values; • on-the-job training and field experience; • assessment of performance and provision of assessment rewards; rewards • continual reaffirmation of the organisation's transcendent values; transcendent • validation of the organisation's aims and code of conduct using folklore or stories; code • role models who typify the organisation's values. values. Sub-Cultures Sub-Cultures Regardless of whether there is an Regardless identifiable overall culture, large organisations usually have a number of sub-cultures, with the number of identifiable sub-cultures depending on the size of the organisation and the differentiation of its workforce. three types of sub-culture: Three types of sub-culture Three Enhancing sub-culture is one where the core values of the organisation are held more strongly by a particular group than by the rest of the organisation's members; of Orthogonal sub-culture is one where a group adheres to the organisation's core values and in addition has its own set of non-conflicting values; and values; Counter-culture is one in which the values directly clash with the core values of the organisation. Productive Cultures Productive Those which entail widely-shared values and Those norms that influence employees to work hard and to work smart. the beliefs workers have about the consequences the of poor performance; the extent to which they value hard work and see it the as personally worthwhile; the stories workers hear about how good the performers have been treated; the performance modelled by individuals who are the regarded as heroes; the one-liners people repeat about another's the performance standards; and the rites the organisation uses to publicly reward the good performers or punish poor performers. What Does Culture Do? What It has boundary defining role, iit conveys a t It boundary sense of identity, facilitates the generation of sense facilitates commitment to something larger than selfcommitment iinterest, enhances social system stability, and nterest, enhances and serves as a sense-making and control mechanism that guides and shapes the mechanism attitudes and behavior of employees. An organisation's culture, when it is strong An and consistent, also determines the image image the organisation presents outside to the greater world. A good example of this is Disney. Disney. Culture as a liability When the shared values are When not in not agreement with those that will further the organisation's effectiveness. This occurs when the environment is This dynamic, and the entrenched culture dynamic and may no longer be appropriate. Barrier to Change In adapting to upheavals in the In environment, a challenge arises for managers of companies with strong cultures that worked well for them in the past. These strong cultures become barriers These to change when 'business as usual' is no longer effective. no Barrier to Diversity Hiring new employees who, because of Hiring race, gender, ethnic, or other differences, are not like the majority of the organisation's members creates a the paradox. Strong cultures put considerable Strong pressure on employees to conform and limit the range of values and styles that limit are acceptable. are Barrier to Mergers and Acquisitions While in the past the main consideration While in a merger or an acquisition was financial advantage, today it is cultural compatibility. compatibility. Creating And Sustaining Culture Creating Meek's (1988) warning against treating culture as Meek's something an organisation 'has' rather than something it 'is‘: 'is‘: While it is maintained that culture as a whole cannot While be consciously manipulated by management or any other group, culture is not necessarily static: cultures do change within organisations, and management does have more direct control than other organisational members over certain aspects of the corporate cultures, such as, control over logos and officially stated missions and ethos officially Assessing Culture Assessing The aim is to identify the 'important The shared understandings' starting with the manifestations of culture that can be observed, the shared things, shared sayings, shared doings and shared feelings. feelings. Culture and Change Culture Understand your old culture first... Understand old Encourage those employees who are bucking the old culture and have ideas for a better one. the Find the best subculture in your organisation and hold it up as an example... hold Don't attack culture head on. Don't count on a vision to work miracles. Figure on five to ten years for significant, Figure five organisation improvement. organisation Live the culture you want. As always, actions speak louder than words. speak (Dumaine 1990, p. 56) Keeping a Culture Alive Selection practices, or the processes by which the organisation searches for newcomers who fit with the culture; The actions of top management, where the where upper managers establish norms of behavior and expectations for performance; and and Socialisation, the process that adapts employees to the organisation's culture (preemployees arrival, encounter, and metamorphosis). encounter and metamorphosis Cross-cultural Relations Cross-cultural Individualism versus collectivism (extent to which Individualism workers see themselves as part of a group beyond their own family); their Power distance (the amount of acceptance of unequal distribution of power in organisations); unequal Uncertainty avoidance (the amount of acceptance of uncertainty and ambiguity in society); and uncertainty Masculinity versus femininity (extent to which the society values assertiveness and materialism versus an emphasis on relationships and concern for others). others). Australia, the United States, Great Britain, New Zealand and Canada Australia, • high individualism; • low power distance; • low uncertainty avoidance; • high masculinity. ...
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