Organisational Culture

2
Learning Objectives
© 2015 Berlin Asong. All rights reserved.
I. Whatexactlyisculture?
i. Understandcultureusingmetaphors.
II. Understandingorganisationalculture.
i. Whyorganisationalculturematters?
III. Explainandusetechniquestoevaluateorganisationalculture.
i. Culturalweb
ii. Culturaliceberg
iii. Handy’sfourculturetypes
iv. Competingvaluesframework

3
Learning Objectives
IV. Howisorganisationalculturecreatedandpreserved?
V. Canorganisationalculturebechanged?
VI. Discusscasesofculturalblunders.
i. Whatarethecausesofculturalblunders?
ii. Howtominimiseculturalblunders.

© 2015 Berlin Asong. All rights reserved. 4
You are a product of your environment.

Culture
?

It’sthecollectiveprogramming
ofthemindwhichdistinguishes
amemberofonegroupfromanother.
Geert Hofstede 1997

mind
Human

Thecentreofconsciousness
thatgeneratesthoughts,feelings,ideas,andperceptions,
andstoresknowledgeandmemories.

“Collectiveprogrammingofthemind…”
What does
this imply?

Is culture a set of
“instructions” installed in the
minds of people?
1

What are these
instructions? Who writes
(wrote) them? And why?
Ifso…

Is culture
perceivable?
2
Ifculturedistinguishesa
groupofpeoplefromanother…

Suggestingcultureis
identity.

Culture [is] installed
in the minds of people…
3

…then culture is
unperceivable & hard
to articulate.

Culture is a set of values & norms
shared by a group of people.

values

Principles or standards
that people use in directing
their behaviours.

Describe to the person
next to you the qualities
you want for a friend?

normal.
Putsimply,norms=
Towhom?

Asetofsharedvalues
understandings
assumptions,and
goalsthatarelearnedfromearlier
generations,imposedbypresentmembers
ofasociety,andpassedontosucceeding
generations.

Cultureis:
perceivable
unperceivable
Comprisesof:
norms
values
practices
Difficultto:
articulate
Summary

Culture is the software
of the mind.
1

Culture comprises
of codes; set auto-pilot
behaviours; it has a pattern.

Cultureislikean
Iceberg.

Visible elements of culture
Invisible elements of culture

Hellriegel, D. and Slocum, J. W. (2008), “Organisational Behaviour”. 13th edition, Cengage Learning, London, p. 479.

Culture as values
3

Cultural
Value
Systems
Social
system
Legal
system
Education
system
Religion
Political
system
Economic
system

4
Culture
as a web.

Used to convey its
intricacy & complexity.

InternationalCulture
NationalCulture
OrganisationCulture
Occupational
Culture
Personal
Culture
RelationalbutDistinctEnvironmentsofCultures

InternationalCulture

National Culture

Organisation Culture

Occupational Culture

Personal Culture

Thepracticesofmyfirm
contradictmypersonal
valuesandbeliefs.

Is your “personal culture”
aligned with the “national
culture” of your country?

Organisational
Culture

Shared values, principles, traditions and
practices that influence the way organisational
members act, and distinguish the organisation
from other organisations.
Robbins, S. P. and Coulter, M. (2012) “Management”. 11th edition, Prentice Hall: London p. 52”

Setofnorms,values
and practicestowhich
peopleinanorganisationareexposed.

VALUES
PRACTICES
NORMS
Theorganisationtreatsemployees,customers,shareholders
andsociety;itsservicesandproducts;itsfutureambitions,etc.
PRACTICES
…arereflectedon…
PRACTICES

Barclays fined £290
for rigging LIBOR rate.
Source: www.guardian.co.uk/business/2012/jun/27/barclays-chief-bob-diamond-bonus-fine
FormerBarclaysCEOBobDiamondresignedamidliborscandal
3 July 2012
Source: insurance-center.org

PPImis-selling,LIBORscandal,
HSBCmoneylaunderingscandal
havebroughtrenewedattentionto
bankingpracticesofUK’sbanks.

Organisational culture is “the way we do things around here”.
Adapted from Matsumoto, D. (1996) Culture and Psychology. Pacific Grove, CA: Brooks/Cole.

How can we determine the
culture of an organisation?

How To Determine the Culture of an Organisation
Rituals.
Policies.
Artefacts.
Annual reports.
Products/services.
Stories (current, ex-employees, customers, founders).
Organisational structure.
Publications on website.
Covert observation.
Overt observation.
Minutes.
Etc.

Too often the culture that an organisation communicates through
its annual reports, policy handbook, speeches, websites and media
interviews do not reflect the “way things get done around here”.

Yougottobeinside
tosee,feel,smell,touch
andhearit,andmake
senseofit.

Sites like Glassdoor.com and Indee.com allow current
and ex-employees to write reviews about the managers,
practices, systems, rituals, etc. of organisations.

However, symbolic
objects & activities can yield
clues to a firm’s culture.

Artefacts

Rituals

What rituals can you
see from this picture?

Stories

History
Reports
Speeches
Customers’thoughts
Employees’thoughts
Frontlinestaffs
Ex-staffs
Theunspoken
Etc.

WhyIAmLeavingGoldmanSachs
Source: Greg, S. (2012). Retrieved from www.nytimes.com/2012/03/14/opinion/why-i-am-leaving-goldman-sachs.html?pagewanted=all

Whatdoyoumake
ofGreg’sdescription
ofGoldmanSachs’
culture?

Products
Services
Processes
Policies
Organisationalstructure
Decisionrights
Standards
Goals
Strategy
Language
Etc.
OtherSymbolicObjects&Activities

Remember.Symbols
arenotcultureinthemselves
butmeanstoprojectthe
“softwareofthemind”.

Why
organisational
culture matters?

Itgivespeoplea
senseofidentity,
belongingand
security.
1

Thinkaboutyour
firstdayatworkfor
anewemployer.
Howdidyoufeel?
Didyourelatewith
yournewco-
workers?

Doyoufeel
proudworking
foryourcurrent
employer?

Doyoufeel
comfortabletalking
aboutyourjobor
whereyouwork
withfriends,etc.

Behaviourisinfluenced
byone’sculturalmind-set(education,belief,needs,
aspirations,etc.)inturninfluencedbyones
environment(economics,religion,laws,politics,etc.).
2

Knowledge Past ExperiencesInterestsGoals
Values Norms Other Info.

Virgin Group CEO Richard Branson

The link between
culture and organisational
performance.
3

PerformanceCulture


Culturegivescharactertothe
organisation’soperationslikeHRM,
marketing,services,ethics,etc.
4

Usedtopreserveorchangethecultureofanorganisation

A“poorculture”
canleadtostaff
disengagement
andcustomer
dissatisfaction.

It affects how
work is done in an
organisation.
5

Tools for
Evaluating
Organisational
Culture

Diagnostictoolfor
understandingandassessingthe
cultureofagroupofpeople.

The
Paradigm
Stories
Rituals &
Routines
Symbols
Power
Structures
Organisation
al Structure
Control
Systems
Gerry Johnson & Kevan Scholes, 1992
CulturalWeb

Stories

History
Reports
Speeches
Customers’thoughts
Employees’thoughts
Frontlinestaffs
Ex-staffs
Theunspoken
Etc.

Objects,
Awards
Events,
Acts
People,
Etc.
that convey meanings.
Symbols

Activities or
events that reinforce
people’s way of life.
Rituals&Routines

Has it got a flat, tall,
organic, mechanistic, formal,
informal or hybrid structure?
Organisationalstructure

What measures or
programmes are used to
preserve,protect&promulgate
organisationallife?
ControlSystems

Ispowerdefinedbyone’s
expertise,performance,personality,
affiliation,resourcecontrol,etc.
PowerStructures

Thesixelementsofthecultural
webreflecttheoverallclimate
(paradigm)insidetheorganisation.
Paradigm

Example

Visible
Invisible

Over 90% of an
organisation’s culture is
invisible, even to its
members.

How do you study
something that’s
hard to articulate &
has no form?

CharlesHandy
(1985)–
Organisational Behaviour
Academic; Social Philosopher
1932-

Handy’s Four Dimensions

Powerculture
Powerrestsinthe
handsofacentralfigure
orgroupofindividuals.

The Web

Oneperson,
divisionunitor
groupovershadows
theentirefirm.
Former Apple CEO Steve Jobs

Obedience
tothecentral
commander(s).

Dissentingviews
areignored,contained
orpunished.

Abilityto
influence
isbasedonone’s
positiononthe
organisational
chart.

Jobpromotionis
sometimesbasedon
longevityinservice,not
expertise,meritocracy.

Thesuccessof
apower-culture
organisation
dependsonthe
effectivenessof
thepower-
holder.
Former Apple CEO Steve Jobs

What’s good
and bad about a
power culture
organisation?

Strengths

Values&practices
thatcontribute
toorganisational
effectivenesscan
bepreserved.
1
Source: dadcando.com

Sometimes,
work gets done
effectively &
speedily. Why?
2
Source: developingyouthspeed.com

Weaknesses

Dissentingviews
areignored,contained
orpunished.
1

…employees feel isolated
from important decisions.

May stifle employee
creativity & emotional
connection withtheorganisation.

2
Jobpromotionmaybebased
on longevity in service, not
expertise, meritocracy.
Source: onetip.net

Slow to respond to
environmental changes.
How?
3

Strong power
culture can be a barrier
to needed change.

Workplaceinequality&discrimination
Exploitationofcustomers&employees
Corruption&accountingfraud
Excessiverisk-taking
complacency
Etc.
Strong power
culture can foster
bad practices.
4

RoleCulture

“TheGreektemple”

Senior management
Pillar
(department)
Pillar
(department)
Pillar
(department)
Pillar
(department)

Pillar
(accounting)
Pillar
(marketing)
Pillar
(HRM)
Pillar
(R&D)
Senior management

Senior management
Pillar
(division)
Pillar
(division)
Pillar
(division)
Pillar
(division)

Seniormanagement
Pillar
(division)
Pillar
(division)
Pillar
(division)
Pillar
(division)
Senior
management&
departmentor
divisionalheads
sharepower.

Abilityto
influence
isbasedonone’s
positiononthe
organisational
chart.

Clearlydefined
roles,rules,work
procedures.
Bendingtherules
islesswelcome.

Highemphasis
onstaffstodevelop
specialisedcompetence.

Job promotion
may be predictable.
Source: onetip.net

I’mcomfortable
workinginarole
cultureorganisation
because…

1

High emphasis
on staffs to develop
specialised competence.
2

Weaknesses

encourage staff to
think inside the box.
Itmay…
1

Highlydepartmentalised
structuresmayreducetheflow
ofinformationandresourcesharing.
2

Excessive
rules can cripple
employees’
effectiveness.
3
Source: rachelmariestone.com

Taskculture

Howcanweget
the job done?

Resources & competences
are pulled from all available
areas to get the job done.

Jones, Mills, Weatherbee, & Hills (2006) Organizational Theory, Design, and Change,

Ability to influence
is based on one’s
expertise and inputs.

Greatercross-
departmental
anddivisional
collaborationand
communication.

Adapting fast to
new events is highly
important to task culture
organisations.

Employees’ roles
and responsibilities
change frequently.

Excessive focus on task
may be at the expense of
employee’s wellbeing.

Personculture

Itaspirestoservetheneeds &
interests ofindividuals
workingforthatorganisation.

…small-sized firms like
consultancies, tech start-ups,
privatehealthcareandlawfirms.
Thisistypicalof…
…alsosomefamily-ownedbusinesses.

Power is
evenly shared
amongst
members.

Individuals
workfor
themselves,
notthefirm.

…highly
motivated
employees;
carryinga
senseof
prideintheir
work.

Personal
identitiesmake
uptheoverall
cultureofthefirm

Theriskofconflict
amongmembersover
organisationalmatters.

Inpractice,these
culturesrarelyexist
intheirpurestform.

Somecommentatorsdescribe
NewsCorpasapower-culture
companysteepedintheidealsof
itsfounderRupertMurdoch.
Source: economist.com

…NewsCorpisequally
ataskandroleculturecompany.
Hence,ithasahybridculture.

Whattypeofcultureisyourorganisation:
Power?
Task?
Role?
Person?
Hybrid?

Power Task Role Person
Classroomshavecultures.Describe
yourclasscultureusingHandy’s
dimensionsoforganisationalculture.
Doesthecultureconstrainyou?How?

InternalFocus ExternalFocus
Istheorganisationdesignedto
adapttoitsexternalenvironmentor
topreserveitsinternalstatusquo?

Theassumptionis,preserving
theinternalstatusquoandadapting
toachangingenvironmentare
mutuallyexclusive.

Someorganisationsthrivebetter
bymaintainingtheinternalstatus
quo,whileothersthrivebyadapting
toachangingenvironment.

Flexibility
Control
Isthe
organisation’s
management
stylecontrolling
orflexible?

Theassumptionis,centralised
anddecentralisedmanagements
aremutuallyexclusive.

Someorganisationsthrivethrough
flexiblemanagement,whileothers
throughcontrollingmanagement.

The term flexible
management is an oxymoron
since management is all
about control.

The term controlling
management is a tautology.

However, combining
these two sets of competing
priorities like so…

Flexibility
Control

…four types of organisational
culture are identified.

Flexibility
Control
Clan Adhocracy
Hierarchy Market
Kim Cameron and Robert Quinn created the CVF model

CVF—CultureTypes
Ocai-online (2012). Retrieved from www.ocai-online.com/about-the-Organizational-Culture-Assessment-Instrument-OCAI/Organizational-Culture-Types

Flexibility
Control
Clan
Market
Kim Cameron and Robert Quinn created the CVF model
Hierarchy
Adhocracy

How is
organisational
culture created
& preserved?

Col.Sander
KFC Founder

Kellogg's Global Leadership Team
TopManagement

ArseneWenger
Arsenal FC Manager

HRrecruitment&selectionpolicies

Usedtopreserveorchangethecultureofanorganisation

Inductionprogrammes

Socialisation

Reward

Punishment

“Organisational Behaviour & Analysis”, 4th Ed, Derek Rollinson, 2008

…that depends on your
definition & interpretation
of culture.

…canbechanged.
…mightchangeovertime.
…mightnotchange.

However, some
aspects of organisational
culture decay over time.

Cultural
Blunders

beef oil in India.

GMlaunchedacar,
“Chevy Nova”
inLatinAmerican. “No
va”inSpanishmeans“it
won’t go”.

Ford'sPintofloppedin
Brazil.Thecompany
foundoutthatPinto
wasBrazilianslangfor
“tinymalegenitals”.

German
shoppers
loathedWal-
Martstore
greeters.

InTaiwan,thetranslationofthePepsi
slogan“ComealivewiththePepsi
Generation”cameoutas“Pepsiwillbring
yourancestorsbackfromthedead.”

InChinese,theKentuckyFried
Chickenslogan“finger-lickin’good”
cameoutas“eatyourfingersoff.”

Why these
cultural blunders
are committed?

Lack of cultural
awareness & literacy.
1

"Okay"
"Vulgar gesture"
"It's a secret"
"Very nosey"
"Crazy"
"Very clever"

Lack of due diligence
2

Assuming the planet Jupiter
was a country you planned to
visit next month. What due
diligence would you perform?

Ethnocentrism: the tendency
to “superioritise” one’s own
culture over that of others.
3

My-culture-is-superior
mentality.

Culture is complex.
It’s hard to grasp all its
shades and contours.
4

What can managers
do to reduce the commission
of cultural blunders?
20minutes

Organisational Culture

Recomendados

Recomendados

Más contenido relacionado

La actualidad más candente

La actualidad más candente (20)

Destacado

Destacado (12)

Similar a Organisational Culture

Similar a Organisational Culture (20)

Más de Teaching Excellence

Más de Teaching Excellence (20)

Último

Último (20)

Organisational Culture