Organisational Culture

Agenda Elements of culture The importance of culture Types of cultures Ways of thinking about culture The relationship between culture and performance Fish culture

Elements of Culture Physical Structures Rituals/Ceremonies Stories Language Tangible Artifacts of Organisational Culture Beliefs Values Assumptions Intangible Artifacts of Organisational Culture

Oakley’s culture as expressed in its physical design Oakely, Inc.’s protective and competitive corporate culture is apparent in its building design and workspace. The building looks like a vault to protect its cherished product designs (eyewear, footwear, apparel and watches).

The Role of Organisational Culture (Greenberg & Baron, 2000, pp Culture provides a sense of identity for organisational members SWA and Virgin Blue employees strongly associate with the company’s emphasis on fun Culture may generate commitment to the organisation’s mission Culture can clarify and reinforce standards of behaviour Culture can promote stability of an organisation’s social system

Types of Organisational Cultures (Goffee & Jones, 1998)   High   Sociability (people orientation) Networked Communal Fragmented Mercenary   Low Low High Solidarity (task orientation)

Types of Cultures Goffee & Jones Model (1998) Sociability – a measure of friendliness. People relate in a caring, friendly way, often going out of the way for each other. Solidarity – a measure of task orientation. People focus on common interests and goals. Networked – organisational members viewed as family and friends. Focus on friendships can take eyes off performance Eg’s: Unilever, Heineken Mercenary – people are intense and determined to meet goals Can lead to inhumane treatment of people Eg’s: Mars, Campbells, Komatsu

Types of Organisational Cultures (Goffee & Jones, 1998) Fragmented – made up of individualists with little identification to organisation While performance judged on quality of work, these orgs may lack collegiality and may overemphasis critiquing of others Eg’s: most universities, professional law firms Communal – value both friendship & performance – feelings of belonging combined with ruthless focus on goals Downside may become unhealthy whole-of-life obsession with work Eg’s: HP, J&J, Bain and Co.

Deal & Kennedy’s Model (1992)

Which values and beliefs are shared by all? Ways of thinking about culture: the integrationist perspective (Martin 1992) Which values and beliefs are shared by all?

Ways of thinking about culture: the differentiationist perspective (Martin 1992) Which values and beliefs unify individual subcultures internally but separate them from one another?

Ways of thinking about culture: The fragmentationist perspective (Martin 1992) ? ? ? ? ? ? ? ? ? ? ? What values and beliefs are ambiguous?

Ways of thinking about culture: the Sophisticated Perspective (Martin 1992) ? ? Martin stresses the need to look through all three lenses in order to comprehensively observe organisational culture

The Relationship Between Culture and Performance View 1 – Stronger is Better Held by Peters & Waterman, Collins & Porras, however strong cultures may be a problem when: Culture content is incompatible with the organisation’s environment. Strong cultures focus attention on one mental model. Strong cultures suppress dissenting values from subcultures.

Creating ‘Cult-like Cultures’ (Collins & Porras, 2000, p.136) Orientation and training with ideological as well as practical content Internal ‘universities’ On the job socialisation by peers and immediate supervisors Up-through-the-ranks policies Exposure to pervasive mythology Unique language & terminology Constant emphasis on corporate values & heritage Corporate songs, cheers, affirmations or pledges Tight screening processes Incentives & advancement criteria linked to ideology Awards, contests and public recognition Tolerance for honest mistakes that do not breach core ideology Plant/office layout reinforcing norms & ideals

Are ‘cult-like cultures’ required in Australian organisations? Hubbard et al (2002) argue that strategic alignment is more important, where culture is only one element of a set of elements requiring ‘perfect alignment’. These include: External environment Strategy Systems People Leadership Structure Communications Perceptions

The Relationship Between Culture and Performance View 2 – Culture Should Fit internal processes & external conditions Held by Cartwright & Cooper – mergers likely to fail where dominant partner has a power culture No point in having a strong culture if it is the wrong culture Sounds good, but how can managers monitor and adjust appropriately to environmental changes? Further, this approach makes difficult the possibility of competitive advantage from cultural uniqueness.

The Relationship Between Culture and Performance View 3 – Adaptability is Everything – constant and proactive cultural adaptation is demanded – parallels organisational learning approaches. However, not all organisations may need to pursue adaptiveness or engage in learning, especially if in stable, relatively unchanging environments (Palmer & Hardy, 2000)

Culture Change in Action

Fish Culture Play Make their day Be there Choose your attitude