L10: Organisational Culture_v2

Organisational Culture Overview

Concepts:

• Corporate Competitive Integrity: Ensuring ethical practices while striving for market competitiveness, fostering trust with stakeholders.

• Collaborative Environment: Promoting teamwork and open communication among employees, encouraging diverse perspectives to enhance problem-solving.

• Employee-Centric Values: Prioritizing the well-being, development, and engagement of employees to support a strong workplace culture.

• Focused on Customer Success: Aligning organizational goals with customer needs and actively seeking feedback to improve products and services.

Characteristics:

• Engaged Employees: Employees who feel valued and involved, leading to increased productivity and job satisfaction.

• Rewards Based on Performance: Implementing performance management systems that recognize and reward individual and team achievements.

• Collegial and Innovative Approach: Encouraging a culture of respect and creativity where solutions are generated collaboratively and innovation is supported.

• Respect for Customers: Building long-term relationships and trust by valuing customers’ input and putting their needs first.

Objectives of the Study

• Clearly define the concepts of culture and organizational culture.

• Explain the various levels and types of culture that are present in organizations, including their implications on performance and structure.

• Conduct an evaluation of organizational culture within Loughborough Business School, analyzing its unique features and alignment with institutional goals.

Development of Culture

• Historical Background: The study of organizational culture began in anthropology and sociology, where early researchers investigated cultural norms within native tribes.

• In 1979, Pettigrew introduced the concept to organizational studies, leading to its acceptance among business scholars.

• The term gained popularity during the 1980s due to seminal works such as:

  • In Search of Excellence (1982) by Peters & Waterman, which emphasized the importance of culture in business success.

  • Corporate Culture: The Rites and Rituals of Organisational Life (1982) by Deal & Kennedy, which illustrated how culture affects organizational functions.

Definition of Culture

• According to Northouse (2007): "Culture encompasses learned beliefs, values, rules, norms, symbols, and traditions common to a specific group." This definition highlights the social constructs that shape the identity of a group, including their customs, behaviors, and shared experiences.

Definition of Organisational Culture

• Schein (1985, 2010) frames organizational culture as the "pattern of basic assumptions invented or discovered to manage problems, valid assumptions passed on to new members in an organization," indicating the shared beliefs that dictate behaviors within the organizational context.

Aspects of Organisational Culture

• Visible Organizational Culture (Hellriegel et al., 1998): Consists of the organization’s stated vision, strategy, policies, procedures, beliefs, and traditions, showcasing what is claimed versus the underlying reality of what is valued.

• Invisible Organizational Culture: Comprises unwritten rules, stories, and emotional connections that define behavioral norms within the organization.

Levels of Culture (Schein, 2004)

• Three Levels of Culture:

  1. Artefacts: The visible aspects of a culture, such as architecture, dress code, and office layout.

  2. Espoused Beliefs and Values: The organization's declared set of values and rules that guide lifetime decisions.

  3. Underlying Assumptions: The deep-seated, often unconscious beliefs that truly influence behavior.

Visible Elements of Culture

• High Visibility Elements:

  • Dress & Appearance: The typical attire within the organization reflects its culture.

  • Signs & Symbols: Logos, emblems, and office design conveying the organizational identity.

  • Rules & Laws: Formal regulations that establish protocols for behavior.

  • Atmosphere: The general feeling and environment within the organization.

• Lower Visibility Elements:

  • Stories, Myths & Legends: Shared narratives that embody cultural values and reinforce organizational identity.

  • Normative Behaviours & Habits: The day-to-day actions and practices that are commonly accepted.

  • Values & Ideology: The fundamental beliefs that inform decision-making and priorities.

Organisational Cultures Transition

• Different cultures can be experienced in various settings, such as educational institutions and corporate environments, each with its own set of norms, rules, and rituals that dictate interactions and governance.

Categorising Cultures

• Organisational Culture Typologies: Key typologies include insights from Harrison and Handy, and Deal and Kennedy, each providing frameworks for understanding cultural dynamics.

Harrison / Handy Typology (Handy, 1995)

• Culture Determinants:

  • Centralisation: Refers to the concentration of decision-making authority.

  • Formalisation: The degree to which rules and regulations are articulated in the organization.

• Types of Cultures:

  1. Power Culture: Features informal power structures, promotes quick decision-making, ideal for competitive environments.

  2. Role Culture: Focuses on defined roles and responsibilities, works efficiently in stable settings with predictable processes.

  3. Task Culture: Restructured around project-focused team dynamics, fostering collaboration and innovation.

  4. Person Culture: Primarily centered on individual contributions rather than on organizational hierarchy, leading to potential challenges in management.

Organisational Culture Research: Critical Evaluation

• The understanding of organizational culture requires navigating its complexities and recognizing various perspectives. This includes contrasting quantitative surveys with qualitative studies, emphasizing the import of probing underlying assumptions through qualitative methods like in-depth interviews.

Summary

• Multiple cultures can exist within one organization simultaneously, influencing socialization into shared beliefs and attitudes.

• Culture manifesting at both organizational and national levels has far-reaching implications for interactions and relationships.

Exam Preparation: Marking Criteria

• Knowledge & Understanding: Showcase relevant discoveries and knowledge regarding theories of culture and organizational culture.

• Application of Knowledge: Link theoretical frameworks to practical examples across diverse organizational contexts.

• Critical Evaluation: Assess existing research critically, evaluating the strengths and weaknesses of different theories, supported with empirical evidence and meta-analyses.

Wider Reading List

1. Harris, L. C., & Ogbonna, E. (1998). Employee responses to culture change efforts. Human Resource Management Journal.

2. Hogan, S. J., & Coote, L. V. (2014). Organizational culture, innovation, and performance: A test of Schein's model. Journal of Business Research.

3. Giorgi, S., Lockwood, C., & Glynn, M. A. (2015). The many faces of culture: Making sense of 30 years of research on culture in organization studies. Academy of Management Annals.