Tuesday 4 May 2010

Week 4 Organisation Culture

Visible aspects of culture in John Lewis –When walking into John Lewis it is clear there are many departments within this one store, the culture is however split and it is easily obvious where one department starts and the other begins. This is due to the visable culture. one of the ways to identify where one department is by reading the signs on the walls and by the uniform the staff are wearing.

Some examples of visible aspects are – atmosphere, dress code, communication, unwritten rules and expectations.

Organisation culture

Organisational culture is like an organisation having a personality of its own that is more than the formal structure, and it gives them a unique identity, it is the unwritten beliefs, attitudes, values and expectations about how people work within an organisation.

Power culture: One individual is dominant over the whole organisation, everything is run by that one person who is in the central of the organisation.
Many small enterprises and large conglomerates such display the characteristics of a centralised power culture.

This model is very like Weber's Charismatic organisation. It is like a web with a ruling spider. Those in the web are dependent on a central power source.

Rays of power and influence spread out from a central figure or group. There may be a specialist or functional structure but central control is exercised largely through appointing, loyal key individuals and interventionist behaviour from centre.whim and personal influence rather than on procedures or purely logical factors. This is not to say that the whim is autocratic or authoritarian - although it be is authoritative.

Effectiveness is judged on results and sometimes for the central figure, perhaps the ends sometimes justify their means.

ADVANTAGES and DISADVANTAGES

Such organisations can be strong, proud and dynamic, react quickly to external demands.

However power cultures may suffer from staff disaffection. People in the middle layers may feel they have insufficient scope. The interventionist pressure and constant need to refer to centre may create dysfunctional competition and jostling for the support of the boss

The organisation is dependent on the ability and judgement of the central power - if weak then the organisation will struggle. As the power organisation grows, the centrist culture breaks down if it becomes impossible for the centre to keep up its interventionist, co-ordinating role. The large organisation may need to divisionalise (create other spiders webs linked to the central web).
MANAGEMENT AND EMPLOYEES

The dominant managerial style may readily equates to Reddin's task-oriented-entrepreneurial style and shares its potential advantages and disadvantages.

Individuals succeed as long as they are power oriented, politically minded,, risk taking with a low need for security. The power of members is based on control over resources and personal influence with the centre.
(Harrison: Typologies of Organisational Culture 2005)

Role culture: When people look at a person within an organisation who is a role model and they look up to as a particular senior.
Often referred to as a bureaucracy, it works by logic and rationality. Its pillars represent functions and specialisms. Departmental functions are delineated and empowered with their role e.g. the finance dept., the design dept etc. Work within and between departments (pillars) is controlled by procedures, role descriptions and authority definitions. Communication structures and well defined systems and products (committee constitutions and reports, procedure manuals, official memoranda). There are mechanisms and rules for processing decisions and resolving conflicts. Matters are taken up the line to the pediment of the doric structure where heads of functions can define a logical, rational, & corporate response".

Co-ordination is at the top - with the senior management group. Job position is central to this not necessarily the job holder as a person. People are appointed to role based on their ability to carry out the functions - satisfactory performance of role. This is very much in line with Weber's bureaucratic framework

Performance required is related to role and functional position. Performance over and above role is not expected and may disrupt.

Efficiency stems from rational allocation of work and conscientious performance of defined responsibility.

ADVANTAGES and DISADVANTAGES

If economies of scale are more important than flexibility or technical expertise and specialism more important than product innovation or product cost - the the stability and conformity of the role culture has merits. Mintzber refers to this model as the machine bureaucracy.

Role-cultures tend to develop in a relatively stable environments. Importance is given to predictability, standardisation and consistency .

However the role-culture may find it harder to adjust to change. Rules, procedures and tested ways of doing things may no longer fit the circumstances. Burns & Stalker pointed out the problems of mechanistic organisations struggling to cope with dynamic market change. Similarly Reddin's bureaucratic management style - tends to place less emphasis on task innovation and people relationships.

Work in a role-culture is frustrating to someone who wants discretion and opportunity for innovation in his/her work. Those who are ambitious may focus on procedures and existing methods and work the committee structure. Performance focuses on standard expectations rather than novel problem-solving to achieve results

EMPLOYEES

Employees benefit from security and predictability in working patterns. They can be specialists skills without risk. Salary and career progression are predictable. Power is based on position not personal expression. Expert power is tolerated if it is line woth accepted position.

Application of rules and procedures are major methods of influence.

EXAMPLES

Local government and he civil service, large insurance companies. IBM by the late 1980's. However the pressures for enhancing market competitiveness and with the application of various forms of de-centralisation and deregulation the have been many calls to make such organisations more flexible and responsive. Down-sizing and competitive tendering are examples of how such organisations have changed.
(Harrison: Typologies of Organisational Culture 2005)

Task culture: is job and product orientated where the organisation was different task to achieve results for different projects.
Imagine this culture as a net with small teams of cells at the interstices. It is very much a small team approach to organisations. The modern jargon also refers to organisational arrangements such as

network organisation - many separate organisations co-operating together to deliver a project. So the large organisation consists of lots of little ones that make their contribution.

matrix organisations which are project oriented with ever changing project or contract teams. Team or cell technologies fall into this mode of organising
As a culture, power and influence are distributed to the interstices of the net.
The emphasis is on results and getting things done. Resources are given to the right people at whatever level who are brought together and given decision making power to get on with the task. Individuals empowered with discretion and control over their work. The task and results and the main focus and team composition and working relationships are founded on capability rather than status.

ADVANTAGES and DISADVANTAGES

Team culture is flexible and adaptable. Tams are formed for specific purposes and then move on. Team composition changes according to the stage of the project. The team is flexible and sensitive to the environment. Client responsiveness is important.

Economies of scale are harder to realise - but computer communications and information systems facilitate sharing of information and co-ordination.

People in the team who want to specialise may be sucked into general probelsm-solving and when the task changes they must move with it rather than a particular scientific or professional specialism.

The project usually involves high risk and ambiguity. Control is via
· allocation of projects and target setting,
· project budgets/resource allocation
· monitoring/review of progress systems.

Where resources become scarce and top management may intervene more closely. There may be competition between project leaders for available resources. Either way morale may suffer. Idividual priorities and objectives take over and the task culture may then become a power culture.

· EMPLOYEES

Most managers and technical types at junior and middle levels, prefer a task culture which is implied by the work of the human relations theorists such as
· Likert: System 1 to System 4
· Herzberg - job enrichment
· Blake and Mouton 9.9 manager.
· Reddin's Executive/team leader.
· It is the culture of Burns and Stalker's organismic organisation.
· It fits managerial thinking on the need for democratic values
· reward by results (management by objectives)

Task culture is based on expert power with some personal and positional power. Influence tends to be more widely dispersed with team members feelingthat he/she has more of it. In the team status and individual style differences are of less significance. The group achieves synergy to harness creativity, problem-solving and thus gain efficiency. The aspirations of the individual are integrated with the objectives of the organisation.
(Harrison: Typologies of Organisational Culture 2005)

A Person culture: This is characteristic of the consensus model of management, where the individuals within the structure determine collectively the path which the organisation pursues.

The individual is the central point. If there is a structure it exists only to serve the individuals within it. If a group of individuals decide to band together to do their own thing and an office or secretary would help - it is a person culture. The culture only exists for the people concerned; it has no super-ordinate objective.

ADVANTAGES and DISADVANTAGES

This culture may be the only acceptable organisation to particular groups - such as workers' co-operatives or where individuals basically work on their own but find some back up useful.

Only the originators are likely to achieve success - the organisation begins to take on its own identity and begins to impose on individuals so moving towards some of the other cultures.

POWER

Is by consent: influence is shared and the power base, if needed is usually expert individuals do what they are good at and are listened to on that basis.

EMPLOYEES

Tend to have strong values about how they will work. Employees with a person culture will often be found working in other cultures but using their own culture - the specialist who will do what he/she has to retain his/her position in the organisation but essentially sees the organisation as a base on which he/she can build his/her own career or carry out his/her own interests. As such they are very difficult for the organisation to manage.

EXAMPLE

Consultants both within organisations and free lance, workers co-operatives, barristers' chambers.

http://www.lindsay-sherwin.co.uk/guide_managing_change/html_overview/05_culture_handy.htm
Harrison: Typologies of Organisational Culture 2005

Nokia is a true global success story. Founded in 1885 in southern Finland, the company began as a paper manufacturer. In the 1920s it added manufacturing of rubber boots, raincoats, and hunting rifles. It went into consumer electronics in the 1950s by making television sets. But it didn’t its current niche until the 1980s, when management decided to change strategies- to transform Nokia from a traditional industrial company into a high-tech conglomerate. Management refocused Nokia on the emerging market for mobile phones and networks, Jorma ollila, who was then the company’s chief financial officer, was put in charge of the mobile phone business.

Management’s revised strategy has proven an overwhelming success. Nokia is now the worlds leading manufacturer of mobile phones, with 35% of the world’s mobile phone market.

A strong organizational culture like Nokia provides employees with an understanding of “the way things are done around here.”

Institutionalisation – When as organisation takes on a life of its own, apart from any of its members, and acquires immortality.

There seem to be a wide agreement that organizational culture refers to a system of shared meanings held by members that distinguishes the organisation from other organizations. This system of shared meaning is on, closer examination a set of key characteristics that the organisation values. The research suggests that, in aggregate, capture the essence of an orgnisations culture.

1. Innovation and risk taking: The degree to which employees are encouraged to be innovative and take risks.
2. Attention to detail: The degree to which employees are expected to exhibit precision, analysis, and attention to detail.
3. Outcome orientation: The degree to which management focuses on results or outcomes rather than on the techniques and processes used to achieve those outcomes.
4. People orientation: The degree to which management decisions take into consideration the effect of outcomes on people within the organisation.
5. Team orientation: the degree to which work activities are organized around teams rather than individuals.
6. Aggressiveness: The degree to which people are aggressive and competitive rather than easy going.
7. Stability: The degree to which organizational activities emphasise maintaining the status quo in contrast to growth.




Each of these characteristics exists on a continuum from low to high. Appraising the organisation on these 7 characteristics, then, gives a comparite picture of the orgnaisation culture.

Dominant culture: Express the core values that are shared by a majority of the organizations members.

Subcultures: Minicultures within an organisation, typically defined by department designations and geographical separation.

Core values: The primary or dominant values that are accepted throughout the organisation.

Strong culture: Culture is which the core values are intensely held and widely shared.

Culture + onions

The outer layers are clearly visible.

  • Middle layers deeper aspects of culture.
  • Centre, the basic beliefs on which the organisation is built.


    CONCLUSION

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