Key Influences on the Change Process: Culture Bureaucratic and risk averse environments are career killers because of their impact on learning. John Kotter We need a can-do, vibrant, innovation-driven culture. Not wearing a tie is just a snippet of that. Paul Walsh

In this topic you will learn about: Types of organisational culture Reasons for and problems of changing organisational culture Assessing the importance of organisational culture

Organisational Culture “The specific collection of values and norms that are shared by people and groups in an organisation and that control the way they interact with each other and with stakeholders outside the organisation.” Source : Wikipedia The culture of a business affects the way in which the business operates. This includes: Decision Making Organisational Structure Communication Leadership styles (cause or effect?) Attitude towards work What are the key features of the organisational culture at Google? How might this influence the business performance?

Types of Organisational culture The AQA specification states that types of organisational culture include: power, entrepreneurial and task Power culture A few people central to the organisation have control Associated with Centralised decision making Autocratic leadership Entrepreneurial culture Risk taking and innovation are actively encouraged and rewarded, whilst failure is not criticised Decentralised decision making Democratic leadership Task culture Emphasis on achieving set outcomes through cooperation and team work Matrix structures Delegation Can you define all the terms used within this slide? Office culture

Reasons for changing organisational culture Change in owners / leaders Change in corporate objectives Change in size Mergers and takeovers can often mean businesses with different cultures joining together Responding to market conditions New competition Economic climate How might the organisational culture of a business have to change to respond to different functional strategies?

Problems of changing organisational culture Resistance to change Lack of trust Period of adjustment Alienation of: Suppliers Customers Other stakeholders Read the Business Week article on how to change corporate culture Changing culture at Boardroom level

The importance of organisational culture Impact on staff motivation Communication Retention Personnel performance indicators Effects decision making Speed Level of involvement Scientific v Intuition Competitiveness of the business Innovation Adaptability Brand image Consumer perception Stakeholder opinion

Activity Think about the type of organisation you would like to work for in the future - what sort of culture would it have? Watch this video about one of the top 100 organisations to work for in 2015 List 3 common factors you would expect to find in the culture of a top 100 organisation Explain how the culture of an organisation can impact upon its overall performance What is the culture of your school, college or workplace? How does this impact upon day to day activities?

Practice exercise Page 477 BUSS4.10 Culture