Organisational Culture Lecturer: Eric Vassilikos

Defining organizational culture  The patterns of beliefs, symbols, rituals, myths and practices that have evolved over time in an organisation (Smircich, 1983)  The prevailing patterns of values, attitudes, beliefs, assumptions, expectations, activities, interactions, norms, and sentiments in an organisation (French and Bell, 1984)  The patterned way of thinking, feeling and reacting that exists in an organisation (Tosi et al., 1990)

Defining organizational culture  A social force that controls patterns of organisational behaviour by shaping members’ cognitions and perceptions of meanings and realities, providing affective energy for mobilization, and identifying who belongs and who does not (Ott, 1989)

Defining organizational culture  A pattern of basic assumptions and beliefs, developed by a given social group throughout its history of internal integration and external adaptation, that has worked reasonably well in the past to be considered by the group as valid and important enough to be passed on to new members as the generally accepted way of interpreting the organisation’s reality (Schein, 1992)

Defining organizational culture Three basic definitions: 1.a CONSTRUCTED product 2. a set of ORGANIC norms 3. a continual process of NEGOTIATION

Organizational culture as a CONSTRUCTED product  The product of structures, systems and regulations, planned and imposed by management.  Implications: Effort by management to strategically manipulate organizational culture Compliance by the workforce might not indicate genuine commitment

Organizational culture as a set of ORGANIC norms  The employees’ sense of “How things are done around here” - The appropriate way to behave.  Shared experiences have been built up and internalized over the years.  Attempts by management to make radical changes may have a negative effect, causing resentment and demoralization.

Organizational culture as a continual process of NEGOTIATION  A negotiated process between the needs and perceptions of top management and workforce  Focus on the relationship between management and employees, based on: The general relationship between them The hierarchical system of authority defining superiors and subordinates The general views of employees about the organization’s destiny, purpose and goals and their place in it

Sub-cultures  HIERARCHICAL sub-cultures E.g. top management vs. middle management vs. Workforce  FUNCTIONAL sub-cultures E.g. the sales department vs. the marketing department; marketing vs. accounting; front-office vs. back-office staff  STRUCTURAL sub-cultures On the basis of shifts, work teams, divisions, headquarters vs. subsidiaries, etc.  POLITICAL groupings

Schein’s (1990, 1992) organisational culture theory  3 elements of culture: Artefacts and creations  Written and spoken language, technological output and overt behaviour Values  A sense of what ought to be, eventually transformed cognitively into: Basic assumptions  Congruence between underlying assumptions and values, resulting in the articulation of a philosophy of operating, serving as a source of common identity and mission

Schein’s (1990, 1992) organisational culture theory  Basic assumptions about: The nature of reality and truth  e.g. based on science, debate and conflict, or authority figures The nature of time  Time can be seen as monochronic, assuming only one task at a time, or polychronic, assuming several tasks simultaneously The nature of space  e.g. Public/private space, size of an office as a symbol of status

Schein’s (1990, 1992) organisational culture theory  Basic assumptions about: Human nature  e.g. assumptions of type X and Y employees, etc. The nature of human activity  control over/conformity to the environment, conditioning through norms or environmental pressures The nature of human relationships  Reference to the concepts of safety, productivity, power and influence, ultimately affecting also participation in decision-making

Weakening a ‘negative’ strong culture  Focus on cohesion  Independencies and regular contacts between members are lessened by introducing: Flexi-time systems Work-at-home schemes Shared office space Outsourcing specialist functions to outside consultants