1. ORGANISATIONAL CULTURE ILM Project Management 2014-15 Session 9 Tara Lovejoy VIDEO: http://study.com/academy/lesson/strong-vs-weak- organizational-cultures-examples-differences.html#lesson

2. Today Introduction to culture within business By the end of the session, you will be able to: Describe how culture impacts business Explain the different theories of organisational culture Assess organisational cultural theories Apply relevant theory to business scenarios

3. ORGANISATIONAL CULTURE

4. Organisational Culture The collection of traditional values, policies, beliefs and attitudes that constitute a pervasive context for everything we do and think in an organisation (Mullins, 2011). The distinctive norms, beliefs, principles and ways of behaving that combine to give each organisation its distinctive character (Arnold and Randall et al, 2010) Organisations are similar to countries - they each have a unique culture based on values, beliefs and common expectations. Each culture has its strengths and its weaknesses. Many organisations resist changing their culture once it's developed. But organisations grow and change over time, just like a living thing, and the culture must grow and change as well for it to succeed in the long term. The most successful organisations have the right culture in the place for what they're trying to do. When these elements don't align, productivity, morale and efficiency can all suffer. No two organisations can have the same culture and it is essential for the employees to adjust well in their organisation’s culture to enjoy their work and stay stress-free. Another way to look at culture is through the symbols in which culture is manifest. The obvious or ‘high-profile’ symbols are those designed to create an external image: the mission statement, the logo, the annual report, the corporate dress code, the head office architecture.

5. A strong organisational culture could be one were the majority of the participants hold the same basic beliefs and values as applies to the organisation. The people in this group may follow the perceived rules and ethical procedures that are basic to the organisation, even if those values are not publicly stated by the organisation. This can be extremely valuable for building a team where all the participants have the same goals. Working together to improve efficiency or, possibly, communication with management could be some of the goals. This could also be detrimental to the company if the rules and regulations become more important to the participants than the actual goals of the company. New people joining the company are consciously of unconsciously indoctrinated into the existing culture, making innovation hard to come by.

6. CULTURE MODELS

7. Let’s look at some examples of success... Review the BBC handout and identify how these entrepreneurs might build a strong organisational culture.

8. The five main models 1. Handy’s Four Types of Cultures (1978) 2. Deal and Kennedy Cultural Model (1982) 3. Johnson and Scholes Cultural Web (1988) 4. Schein’s Three Levels (1992) 5. Trompenaars’ Implicit-Explicit Factors / Trompenaar Hampden-Turner Seven Dimensions of Culture (1997) Task: Review each of the models and read through the handouts. Consider one of the two case studies and identify which of the culture models are most suitable for that scenario, and/or they would have used to implement the change in culture

9. Handy's Four Types of Cultures (1978) Charles Handy born in 1932 in Ireland is a well-known philosopher who has specialised in organisation culture. According to Handy’s model, there are four types of culture which the organisations follow. Handy's theory describes four distinct management styles, each with its own values. Over time, these values and expectations create a culture within the organisation. Handy’s approach may help you understand why you have been more comfortable in some organisations than others.

10. 1. PowerWhere the power remains in the hands of few people and only they are authorised to take decisions. They are the ones who enjoy special privileges at the workplace. They are the most important people at the workplace and are the major decision makers. These individuals further delegate responsibilities to the other employees. In such a culture the subordinates have no option but to strictly follow their superior’s instructions. The employees do not have the liberty to express their views or share their ideas on an open forum and have to follow what their superior says. The managers in such a type of culture sometimes can be partial to someone or the other leading to major unrest among others. 2. Task Culture Organisations where teams are formed to achieve the targets or solve critical problems follow the task culture. In such organisations individuals with common interests and specialisations come together to form a team. There are generally four to five members in each team. In such a culture every team member has to contribute equally and accomplish tasks in the most innovative way. 3. Person Culture There are certain organisations where the employees feel that they are more important than their organisation. Such organisations follow a culture known as person culture. In a person culture, individuals are more concerned about their own self rather than the organisation. The organisation in such a culture takes a back seat and eventually suffers. Employees just come to the office for the sake of money and never get attached to it. They are seldom loyal towards the management and never decide in favour of the organisation. One should always remember that organisation comes first and everything else later. 4. Role culture Role culture is a culture where every employee is delegated roles and responsibilities according to his specialisation, educational qualification and interest to extract the best out of him. In such a culture employees decide what best they can do and willingly accept the challenge. Every individual is accountable for something or the other and has to take ownership of the work assigned to him. Power comes with responsibility in such a work culture. http://managementstudyguide.com/charles-handy-model.htm[28/01/2014 12:22:37]

11. Leadership styles How does Handy’s model connect with leadership styles?

12. Deal and Kennedy Cultural Model (1982) Suggests that the biggest single influence on a company’s culture is the business environment in which it operates – the ‘corporate culture’, which is what is needed to succeed in that environment. The model is based on two dimensions of 1) risk associated with the company’s activities, and the 2) speed at which companies and their employees get feedback on whether decisions or strategies are successful.

13. Johnson and Scholes Cultural Web (1988) Johnson and Scholes' Cultural Web helps analyse the current culture and identify what needs to stay, go or be added to if you're to achieve your strategic goals.

14. Schein’s Three Levels (1992) Builds on Hofstede and Trompenaars original theories. The model explains the basic elements of cultures and make culture more visible within an organisation. According to Schein, organisational culture is formed over time through various changes, adapting to the external environment, solving problems, gaining from past experiences and start practicing it everyday.

15. Trompenaar Hampden-Turner Seven Dimensions of Culture (1997) Fons Trompenaar’s interests are international culture, whilst Charles Hampden-Turner is a dilemma enthusiast. Their focus is on understanding individuals in different countries. This framework is useful in helping you link the dimensions of culture to other aspects of organisational behaviour. Trompenaars F and Hampden-Turner C (1997)Riding the Waves of Culture: Understanding Diversity in Global Business, NB Publishing

16. CLIMATE

17. What is climate? “Properties of the business environment in a workplace observed by staff that strongly influence their actions and job performance. For example, a perceptive business manager might take the trouble to survey employees about the organizational climate to identify and promote those aspects that are most conducive to achieving corporate objectives. Also called corporate climate.” (Business Dictionary) Organisational climate provides the grounding for flexibility, responsibility, standards, rewards, clarity and team commitment What impact does management practices have on climate? What are the characteristics of a healthy climate? How does climate impact efficiency and effectiveness? What methods can an organisation introduce to improve climate?

18. Review What have we learnt so far? What are we doing next session?