Organisation culture

Organisational (or Corporate) Culture: Refers to the attitudes and values of employees within a company.

Understand the importance of organisational culture.
Explore the influences on organisational culture.
Examine reasons for and problems associated with changing organisational culture.

Definition: Organisational culture encompasses the shared values, beliefs, and attitudes of employees.
Influential beliefs may include:
- Emphasis on excellent customer service.
- Prioritising profits while balancing societal impact.
- Focusing on long-term success vs. short-term rewards.
- Valuing employee ideas over directive management.
- Encouraging experimentation over perfectionism.
- Taking calculated risks for innovation and contract acquisition.
The culture impacts employee behavior and interactions:
- Task-Focused Culture: Employees prioritize tasks over interpersonal relationships, leading to neglect of well-being.
- People-Focused Culture: Managers may adopt a more supportive approach preventing excessive stress on employees.

The culture is reflected in various aspects such as:
- Work Environment: Décor, office layout, and dress code.
- Communication Styles: How employees talk to each other and the topics they discuss.
- Job Titles: Indicate levels of hierarchy and importance.
These factors provide clues to the underlying values of the organisation.

Founders
- Vision and values of founders shape early organisational culture and may influence future operations.
Recruitment and Selection
- New employees bring their own values, affecting existing culture and team dynamics.
Training
- Training programs can instill desired values such as customer service and long-term planning.
Rewards and Punishments
- Employees respond to rewards; positive reinforcement encourages desired behaviors, while punishment suppresses risk-taking.

Unfavorable culture can hinder business success, resulting in:
- Excessive risk-taking, e.g., banks lending irresponsibly to meet targets.
- Discrimination against specific groups, leading to attrition and demotivation.
- Complacency in addressing customer needs.
- Prioritizing employees' comfort over business objectives.
Managers must intervene to correct detrimental cultural elements.

Amazon's Leadership Principles: Encourage ownership, innovation, and customer-centric behaviors.
Key Questions:
1. Why is a "customer-centric" mindset crucial for Amazon?
2. Why foster a culture that embraces risk-taking?
3. How might Amazon promote risk-taking among employees?

Organisational cultures are influenced by national cultures, which define regional values and behaviors.
Hofstede's Cultural Dimensions include:
- Power Distance: Acceptance of hierarchical structures.
- Long-term vs Short-term Orientation: Different focus on planning horizons influences investment attitudes.
- Individualism vs Collectivism: Rewarding individual performance vs. teamwork.
- Masculinity vs Femininity: Competitive achievement versus cooperative cooperation.
- Uncertainty Avoidance: Preference for clear directions versus tolerance for ambiguity.
- Indulgence vs Restraint: Societal attitudes towards enjoying life and expressing emotions.

Cultural change challenges deeply held employee beliefs, leading to resistance.
Factors to consider:
- Strong values may make employees resistant to change, similar to personal opinions.

Forceful Change: Mandating new practices; may face high resistance but can eventually lead to shifts in belief.
Collaborative Shift: Encouraging employees to understand the necessity of change to foster internal value alignment.
- Strategies for Managers:
  - Explain the rationale for change.
  - Offer rewards for adopting new behaviors.
  - Discourage resistance through lack of rewards for non-compliance.