Organisational Culture and Diversity Notes
Organisational Culture
- Toxic corporate culture can significantly impact attrition rates.
- Organisational culture is defined as shared assumptions and ways of life within an organisation.
- It influences behaviour, values, and impacts strategy and operations.
- Key components include attitudes, values, norms and expectations.
- Subcultures exist within larger organisations
- Toxic cultures are those in which people feel not valued
- Healthy cultures are those in which people feel valued
- Culture helps employees understand the firm's history and fosters commitment.
- It also serves as a control mechanism and can improve effectiveness and productivity.
Impact of COVID-19 on Organisational Cultures
- Increased need for flexibility.
- Reduced physical interaction among teams.
- Lower employee engagement and satisfaction.
- Higher stress levels.
- Companies with healthy cultures experienced lower turnover.
Transmitting Culture
- Symbols: Objects representing more than their appearance (e.g., uniforms).
- Slogans: Phrases capturing culture (e.g., "We are ladies and gentlemen serving ladies and gentlemen").
- Stories: Narratives about the past (e.g., Guinness storehouse).
- Jargon: Special language defining culture (e.g., Amazon’s “two pizza teams”).
- Ceremonies: Events commemorating values (e.g., company holidays).
- Awards: Recognition of values.
- Statements of Principle: Written definitions of culture.
Influences on Culture Development
- History
- Primary function and technology
- Goals and objectives
- Size
- Location
- Management and staffing
- The environment
Schein’s Three Levels of Culture
- Surface Manifestations and Artefacts: Visible elements like dress codes and communication styles.
- Espoused Values: Strategies, goals, and philosophies.
- Basic Assumptions: Unconscious beliefs and perceptions.
- Culture significantly impacts long-term economic performance.
Models/Framework of Types of Cultures
- Clan Culture: This is an internal culture with a flexible orientation..
- Bureaucratic Culture: Focuses on predictability, efficiency, and stability.
- Market Culture: Focuses on external control and stable orientation.
- Entrepreneurial Culture: Values experimentation, innovation, and growth.
Other Frameworks of Organisational Culture (Handy)
- Power culture: Central power source, relies on trust and personal communication.
- Role culture: Based on logic, rules, and job descriptions.
- Task culture: Authority widely spread.
- Person culture: Individual-focused.
Organisational Culture – Managing Cultural Diversity
- Diversity encompasses all characteristics defining individuals.
- Includes race, age, gender, sexual orientation and more.
Types of Diversity
- Language
- Cultural/ethnicity diversity
- Religion
- Gender diversity
- Age diversity
- Family situations/responsibilities
- Disability/physical ability
- Sexual orientation
- Political views/values
- Dress
- Education
- Interests
Benefits of Diversity
- Increased innovation and creativity.
- Wider range of perspectives.
- Increased sales revenue and profits.
Downsides of Diversity
- Potential for less integration and higher dissatisfaction.
- Increased miscommunication and conflict.
- Potential for increased employee turnover and absenteeism.
Gender Diversity
- Women are underrepresented in leadership positions.
- Gender pay gap persists.
Taylor Cox’s Six Arguments
- Cost Argument: Managing diversity reduces costs related to turnover and discrimination.
- Resource-Acquisition Argument: Attracts and retains the best talent.
- Marketing Argument: Provides insight into diverse markets.
- Creativity Argument: Improves innovation through diverse perspectives.
- Problem-Solving Argument: Leads to better decisions with a wider range of viewpoints.
- System Flexibility Argument: Increases adaptability and responsiveness.