Organisational Culture

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BUSS4 RESEARCH TASK
JUNE 2013
ORGANISATIONAL
CULTURE
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INTRODUCTION
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The broad theme for this year’s research task is
“Organisational Culture”
There are 5 bullet points to research
Research should look at different organisations and industries
We have chosen to focus on a range of large organisations which are in the public eye
You are strongly recommended to compare and contrast a number of different types of
organisational culture
You will not be asked a question on any one specific type of culture
•
However we do strongly recommend you underpin your research with theoretical
models
Students must make reference to their research in section A of the examination
WHAT IS ORGANISATIONAL CULTURE?
• “The values and standards shared by people and groups within
an organisation”
• “The way we do things around here”
• “The values, attitudes and beliefs of the people working in an
organisation that control the way they interact with each other
and with external groups”
• “The attitudes, traits and behavioural patterns which govern the
way individuals interact with others”
• “Organisations have values, policies, rules and guidelines which
help them create an image of their own”
• “The principles, ideologies, beliefs and polices of an organisation
which make it different from others”
• “The collection of briefs norms and values that are shared by
groups of people”
• All of the above!
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WHAT IS ORGANISATIONAL CULTURE?
How do the theorists define culture?
Schein
“The pattern of basic assumptions that a group has invented,
discovered or developed to cope with its problems of external
adoption or internal integration, that has worked well and are taught
to new members as the way to perceive, think, feel and behave.”
Handy
“ Deep-set beliefs about the way work should be organised, the way
authority should be exercised, people rewarded, people controlled.”
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WHAT IS ORGANISATIONAL CULTURE?
WHAT KEY WORDS WOULD YOU USE TO
DEFINE ORGANISATIONAL CULTURE?
Culture
Introductory case
study from
Times100
What is culture?
Creating a high
performance
culture at Siemens
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TYPES OF CULTURE
The AQA specification says types of organisational culture might
include:
•
Entrepreneurial
•
Power
•
Task
•
Entrepreneurial – the ethos of a business where risk taking and
innovation are actively encouraged and rewarded, whilst failure is not
criticised
•
•
•
•
Workers are given individual responsibility
High degree of delegation and empowerment
Decentralised decision making
Democratic leadership
Discussion points:
• Why might Dell have chosen an entrepreneurial culture?
• What are the benefits to dell of an entrepreneurial culture?
• Is this appropriate for the nature of the industry?
You will be looking at other technology firms in your own research later.
TYPES OF CULTURE
Selective use of theorists and theory.
Some of these will be introduced to help analyse research findings as
you work through the research activities.
• Charles Handy
• Stephen Robbins
• Edgar Schein
Selective use of key
words to underpin an
argument
• Robert Cooke
• Geert Hofstede
• Deal and Kennedy
• Fons Trompenar
Watch this 6 minute video about culture and types of
culture before looking at who each theory belongs to.
TYPES OF CULTURE
Charles Handy – what are the characteristics of each type of
culture as explained by Handy?
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TYPES OF CULTURE
Robert Cooke
Constructive
Passive
Aggressive
• Healthy interaction
• Share ideas
• Innovative solutions
• Behave in a way
contrary to own
beliefs
• Please superiors
• Promote competition
• Want power and
appreciation
•
•
•
•
•
•
•
•
•
•
•
•
Achievement
Self actualising
Encouragement
Positive ambience
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Approval
Conventional
Dependent
Avoidance
Opposition
Power
Perfectionist
Competitive
TYPES OF CULTURE
Edgar Schein 3 levels
Culture is formed over time
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Consider:
How visual is
each level to an
outside
observer?
Which is the
most difficult to
understand?
A THOUGHT TO REMEMBER
AS YOU START YOUR
RESEARCH!
“THERE IS NO SUCH THING AS A
RIGHT CULTURE, WHAT MATTERS IS
WHETHER THE CULTURE IS RIGHT
FOR THE BUSINESS
CIRCUMSTANCES”
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ORGANISATIONAL CULTURE
1. Factors influencing the culture of an organisation and
cultural differences within an organisation
2. The impact of organisational culture on business
strategies and performance
3. Reasons for changes in organisational culture
4. Ways of changing organisational culture
5. Problems of changing organisational culture
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1. FACTORS INFLUENCING THE CULTURE
OF AN ORGANISATION AND CULTURAL
DIFFERENCES WITHIN AN ORGANISATION
Introduction
Background Knowledge
Research Time
Assessment Activity
Glossary
Back to research theme
INTRODUCTION
1. FACTORS INFLUENCING THE CULTURE OF AN ORGANISATION AND
CULTURAL DIFFERENCES WITHIN AN ORGANISATION
Factors influencing the culture of an organisation and
cultural differences within an organisation
• Factors influencing
• Not just what is the culture but why is that the culture?
• What factors have led to the development of that culture?
Remember Schein’s definition “The pattern of basic assumptions that a group has
invented, discovered or developed to cope with its problems of external adoption or
internal integration, that has worked well and are taught to new members as the way
to perceive, think, feel and behave.”
• Why might there be different cultures within an
organisation?
• Cultures and sub-cultures
Back to research theme
Back to research topic
BACKGROUND KNOWLEDGE
1. FACTORS INFLUENCING THE CULTURE OF AN ORGANISATION AND
CULTURAL DIFFERENCES WITHIN AN ORGANISATION
Consider how each of the following factors might influence culture?
As you do your research try to prioritise these for different businesses.
Nature of
business
Senior
managers
Objectives
Influences
External
factors
Founders
Employees
Back to research theme
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Speed of
growth
Back to research topic
BACKGROUND KNOWLEDGE
1. FACTORS INFLUENCING THE CULTURE OF AN ORGANISATION AND
CULTURAL DIFFERENCES WITHIN AN ORGANISATION
Edgar Schein listed the following factors:
• The legacy of the company founder
• Key subsequent leaders
• Lessons learnt by the organisation as it grows and develops
• Can you remember Schein’s 3 levels?
• Schein reported that organisations could:
• claim highly moral behaviour at the second level
• display opposing behaviour at the third level
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Back to research theme
Back to research topic
BACKGROUND KNOWLEDGE
1. FACTORS INFLUENCING THE CULTURE OF AN ORGANISATION AND
CULTURAL DIFFERENCES WITHIN AN ORGANISATION
Hofstede Cultural Dimensions Theory
• Hofstede gave 5 factors that influence culture
•
•
•
•
•
Power distance
Masculinity v Femininity
Individualism v Collectivism
Uncertainty avoidance index
Long term v Short term orientation
Split the class
into 5.
Each group to
research one
of these 5
factors and
report back
You will consider these when looking at the first research task.
Back to research theme
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Back to research topic
BACKGROUND KNOWLEDGE
1. FACTORS INFLUENCING THE CULTURE OF AN ORGANISATION AND
CULTURAL DIFFERENCES WITHIN AN ORGANISATION
Is this possible?:
“ simultaneous loose tight properties”
Peters & Waterman
Excellent companies are both centralised and
decentralised
Back to research theme
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Back to research topic
ACTIVE READING,
ACTIVE RESEARCH
Never just read, always analyse! Ask yourself WHY!
The following are quotes from “Inside Apple” Adam Lashinsky:
“Corporate narcissists are charismatic leaders willing to do whatever it
takes to win and who couldn’t give a fig about being liked.”
“Job’s brutality in dealing with subordinates legitimised a frighteningly
harsh, bullying and demanding culture at Apple.”
“If the narcissistic leader didn’t care about being loved and was willing
to take extraordinary risks in the interest of winning, then so would his
subordinates.”
“High performance teams should be at each other’s throats.”
How would you describe Apple’s culture?
Identify and prioritise 3 factors that have contributed towards
Apple’s culture.
You will look at Apple again in more detail for bullet point 2.
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RESEARCH TIME
1. FACTORS INFLUENCING THE CULTURE OF AN ORGANISATION AND
CULTURAL DIFFERENCES WITHIN AN ORGANISATION
Work through the research activity below reading the articles, visiting the business
websites and watching the video clips. It is advised that you make notes on the key points
as you work through the research activities.
Research Activity Vogue and Daimler
How do your research findings on Vogue and Daimler compare and/or contrast to
Apple?
Back to research theme
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Back to research topic
ASSESSMENT ACTIVITY
1. FACTORS INFLUENCING THE CULTURE OF AN ORGANISATION AND
CULTURAL DIFFERENCES WITHIN AN ORGANISATION
50 minutes = 10 minutes reading and planning
+ 40 minutes writing
Practice question 1
Level
Descriptor
Mark
L5
Good application AND good analysis
26-23
L4
Good application AND reasonable analysis
Good analysis AND reasonable application
OR
22-18
L3
Good analysis AND Limited application
Good application AND Limited analysis
Reasonable analysis AND Reasonable application
OR
OR
17-13
L2
Reasonable analysis AND Limited application
Reasonable application AND Limited analysis
OR
12-8
L1
Limited response – knowledge only
7-1
Level
Descriptor
Mark
E3
Good evaluation with evidence of research (+QOL)
14-11
E2
Reasonable evaluation with evidence of research (+QOL)
10-6
E1
Limited evaluation (+QOL)
5-1
Back to research theme
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Back to research topic
GLOSSARY
1. FACTORS INFLUENCING THE CULTURE OF AN ORGANISATION AND
CULTURAL DIFFERENCES WITHIN AN ORGANISATION
Culture - the values and standards shared by people and groups within an organisation
Entrepreneurial culture - the ethos of a business where risk taking and innovation are actively
encouraged and rewarded, whilst failure is not criticised
Power culture – power is maintained by a few individuals who control decision making and determine
the culture
Task culture – an achievement driven culture where employees work in teams to achieve targets
Role culture – a bureaucracy designed to maximise the performance of individuals through procedures
and role descriptions
Person culture – employees personal development and achievement is more important than the
organisation
Mission statement – a written statement of the purpose of a company
Back to research theme
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Back to research topic
2. THE IMPACT OF ORGANISATIONAL
CULTURE ON BUSINESS STRATEGIES AND
PERFORMANCE
Introduction
Background Knowledge
Research Time
Assessment Activity
Glossary
Back to research theme
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The impact of culture
on team performance
at the Olympics
INTRODUCTION
2. THE IMPACT OF ORGANISATIONAL CULTURE ON BUSINESS STRATEGIES AND PERFORMANCE
The impact of organisational culture on
business strategies and performance
• Impact = effect
• Strategies
• What strategies does the business adopt as a
result of its culture?
• Performance
• How does the culture and related strategies
affect the business performance?
Discussion point:
What strategies does Dell adopt as a result of their entrepreneurial culture?
How does culture affect performance at Dell?
Back to research theme
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Back to research topic
BACKGROUND KNOWLEDGE
2. THE IMPACT OF ORGANISATIONAL CULTURE ON BUSINESS STRATEGIES AND
PERFORMANCE
Culture will affect the attitudes of everyone in the workplace.
Decision
making
process
CSR
Communication
Impacts
HRM
soft v hard
Leadership
styles
Back to research theme
Organisational
structure
Innovation
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Back to research topic
BACKGROUND KNOWLEDGE
2. THE IMPACT OF ORGANISATIONAL CULTURE ON BUSINESS STRATEGIES AND
PERFORMANCE
Strong v weak culture
• A strong culture
• Staff respond positively to organisational values
• Shared sense of responsibility towards vision, mission and objectives
• Motivated and loyal staff
“A corporation that can create a
• Greater efficiency
strong culture has employees who
• Accept roles and responsibilities willingly
believe in its products, its
• Abide by policies
customers and its processes. They
• “everyone buys into it”
sell it willingly because it is part of
• A weak culture
their own identity.” Payne
• Little alignment with organisational values
• Employees have to be forced to perform duties
• Greater management control and supervision
• Treat the organisation as a source of income only
What is the relationship between culture and HR strategies?
Back to research theme
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Back to research topic
BACKGROUND KNOWLEDGE
2. THE IMPACT OF ORGANISATIONAL CULTURE ON BUSINESS STRATEGIES AND PERFORMANCE
• How does culture impact on performance?
• Performance indicators:
• Financial results
• Employee behaviour
• Innovation
• Competitiveness
• Customer service
• Brand image
• Achieving objectives
• Ethical behaviour
• Culture is a powerful thing – affects success but can be destructive e.g. Enron
Discussion points:
What are the core values at Zappos?
How does this impact on strategy?
How does this impact on performance?
Independent research:
Did Zappos’ culture change after it was acquired by Amazon?
“If you get the culture right, most of the other stuff will just take care of itself” Tim Hsieh
CEO Zappos
To what extent do you agree with this statement?
Back to research theme
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Back to research topic
RESEARCH TIME
2. THE IMPACT OF ORGANISATIONAL CULTURE ON BUSINESS STRATEGIES AND PERFORMANCE
Work through the research activity below reading the articles, visiting the business
websites and watching the video clips. It is advised that you make notes on the key points
as you work through the research activities.
Research activity Apple and RBS
• In an aggressive culture recognition hungry employees drive
innovation. To what extent do you agree with this statement?
“If you get the culture right, most of the other stuff will just take care of itself” Tim Hsieh
CEO Zappos
To what extent do you agree with this statement? Can you now support your answer
with evidence from your research?
Back to research theme
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Back to research topic
ASSESSMENT ACTIVITY
2. THE IMPACT OF ORGANISATIONAL CULTURE ON BUSINESS STRATEGIES AND PERFORMANCE
50 minutes = 10 minutes reading and planning
+ 40 minutes writing
Practice question 2
Level
Descriptor
Mark
L5
Good application AND good analysis
26-23
L4
Good application AND reasonable analysis
Good analysis AND reasonable application
OR
22-18
L3
Good analysis AND Limited application
Good application AND Limited analysis
Reasonable analysis AND Reasonable application
OR
OR
17-13
L2
Reasonable analysis AND Limited application
Reasonable application AND Limited analysis
OR
12-8
L1
Limited response – knowledge only
7-1
Level
Descriptor
Mark
E3
Good evaluation with evidence of research (+QOL)
14-11
E2
Reasonable evaluation with evidence of research (+QOL)
10-6
E1
Limited evaluation (+QOL)
5-1
Back to research theme
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Back to research topic
GLOSSARY
2. THE IMPACT OF ORGANISATIONAL CULTURE ON BUSINESS STRATEGIES AND
PERFORMANCE
Strong culture – employees are aligned with corporate values and want individual and organisational
success
Weak culture - there is little alignment with corporate values and therefore staff perform out of fear
rather than motivation
Business strategy – the medium to long term actions adopted by a business in order to achieve
corporate goals
Hard HRM – employees are treated as a resource that must be managed in order for the business to
control costs and output
Soft HRM – employees are treated as an asset to the business that can help a business achieve its
corporate objectives
Corporate objectives – the long term goals of a business which determine its guiding principles
Corporate social responsibility – a firm’s decision to accept responsibility to its stakeholders for its
social, environmental and ethical actions
Back to research theme
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Back to research topic
3. REASONS FOR CHANGES IN
ORGANISATIONAL CULTURE
Introduction
Background Knowledge
Research Time
Assessment Activity
Glossary
Introductory case
study from
Times100
Changing the
culture at Jaguar
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Back to research theme
INTRODUCTION
3. REASONS FOR CHANGES IN ORGANISATIONAL CULTURE
Reasons for changes in organisational culture
•
Reasons = the cause
•
Why would an organisation change its culture?
•
•
Consider internal and external factors
How might this link back to bullet point 2?
•
Relationship between culture and performance
“An adaptive culture translates into organisational success; it is
characterised by managers paying close attention to all of their
constituencies, especially customers, initiating change when needed,
and taking risks.”
Is there a difference between adapting and changing?
Back to research theme
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Back to research topic
BACKGROUND KNOWLEDGE
3. REASONS FOR CHANGES IN ORGANISATIONAL CULTURE
Performance
Market
conditions
New
leadership
Reasons
Change of
sector public
v private
Corporate
objectives
“Change
your culture
or die”
Denning
Back to research theme
Organic
growth
New
ownership
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Mervyn King
“Banks must
change culture”
Can you identity
the reasons why?
Back to research topic
RESEARCH TIME
3. REASONS FOR CHANGES IN ORGANISATIONAL CULTURE
Work through the research activity below reading the articles, visiting the business
websites and watching the video clips. It is advised that you make notes on the key points
as you work through the research activities.
Research activity Walmart
Research activity Airline Industry
Can you compare and contrast the reasons for change at Walmart
and the airline industry with the banking sector?
Back to research theme
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Back to research topic
ASSESSMENT ACTIVITY
3. REASONS FOR CHANGES IN ORGANISATIONAL CULTURE
Practice question 3
50 minutes = 10 minutes reading and planning
+ 40 minutes writing
Level
Descriptor
Mark
L5
Good application AND good analysis
26-23
L4
Good application AND reasonable analysis
Good analysis AND reasonable application
OR
22-18
L3
Good analysis AND Limited application
Good application AND Limited analysis
Reasonable analysis AND Reasonable application
OR
OR
17-13
L2
Reasonable analysis AND Limited application
Reasonable application AND Limited analysis
OR
12-8
L1
Limited response – knowledge only
7-1
Level
Descriptor
Mark
E3
Good evaluation with evidence of research (+QOL)
14-11
E2
Reasonable evaluation with evidence of research (+QOL)
10-6
E1
Limited evaluation (+QOL)
5-1
Back to research theme
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Back to research topic
GLOSSARY
3. REASONS FOR CHANGES IN ORGANISATIONAL CULTURE
Corporate objectives – the long term goals of a business which determine its guiding
principles
Organic growth – internal growth when a business expands by opening new stores,
branches, functions or plants
Privatisation – the transfer of public sector organisations into the private sector
Nationalisation – the transfer of private sector organisations into the public sector
Leadership – the ability to influence and direct people in order to meet the corporate
objectives
Back to research theme
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Back to research topic
4. WAYS OF CHANGING
ORGANISATIONAL CULTURE
Introduction
Background Knowledge
Research Time
Assessment Activity
Glossary
“it’s a bit like
gardening!”
30 second clip
Back to research theme
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INTRODUCTION
4. WAYS OF CHANGING ORGANISATIONAL CULTURE
Ways of changing organisational culture
• How does a business go about changing culture?
• What actions can be taken to manage the change process?
• What actions can be taken to overcome resistance to a change in culture?
• Does it matter what the reason for change is in the way its managed?
• Look back at the reasons for change
Discussion point:
“Jenkins has told Barclays' 140,000 staff to sign up to a new code
of conduct or leave the organisation.”
Can it really be that easy?
Back to research theme
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Back to research topic
BACKGROUND KNOWLEDGE
4. WAYS OF CHANGING ORGANISATIONAL CULTURE
A collection of tips on ways of changing culture:
• Concentrate on the positives of the current culture
• Ensure full commitment from everyone at the top
• Top management and key personnel to lead by example
• Establish new objectives and mission statement
• Explain the need for change
• Encourage the desired behaviour with rewards and recognition
• Convince employees the gains to them will outweigh the losses
How important do you think each of these tips are to the effective
changing of culture?
Inform
Back to research theme
or
Coerce
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or
Both
Back to research topic
BACKGROUND KNOWLEDGE
4. WAYS OF CHANGING ORGANISATIONAL CULTURE
Cummings & Warley suggest a set of guidelines for cultural change:
1) Formulate a clear strategic vision
2) Display top management commitment
3) Model cultural change at the highest level
4) Modify the organisation to support change
5) Select and socialise newcomers, terminate deviants
6) Build in an evaluation process
Tips on how to build a culture like Apple. Could these
also be applied to changing a culture?
Managing change at Barclays might be easier said than
done. What can Jenkins do to manage the change of
culture?
Back to research theme
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Back to research topic
BACKGROUND KNOWLEDGE
4. WAYS OF CHANGING ORGANISATIONAL CULTURE
Organisational tools for changing minds
Read intro
then skip to
the dos and
don’ts at
the end
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Back to research topic
BEFORE CARRYING OUT
MORE RESEARCH FOR
BULLET POINT 4 WE ARE
GOING TO LOOK AT
BULLET POINT 5
It makes sense to consider the problems of changing culture
to understand the ways of changing culture
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5. PROBLEMS OF CHANGING
ORGANISATIONAL CULTURE
Introduction
Background Knowledge
Research Time
Assessment Activity
Glossary
Back to research theme
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INTRODUCTION
5. PROBLEMS OF CHANGING ORGANISATIONAL CULTURE
Problems of changing organisational culture
• Why is it not easy to change culture?
• What are the problems?
• Why do these problems exist?
• BP4 how do we overcome them?
Split the class into small teams. Each take a section of this
report on why changing culture was so difficult at Toyota. Report
back on reasons, problems and way of changing culture at
Toyota.
Back to research theme
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BACKGROUND KNOWLEDGE
5. PROBLEMS OF CHANGING ORGANISATIONAL CULTURE
•
Does changing culture imply a weakness in the current culture?
•
Could this be taken personally?
•
Is it challenging the way things have always been done?
•
Does it depend on:
•
•
•
•
•
Schein
“Change agents often fail to achieve
their goals: underlying tacit cultural
norms are generally not understood
before would-be change agents begin
their actions.”
The strength of the culture?
The type of the culture?
The reason for change?
The habits of employees?
Why resist change?
•
•
•
Lack of trust
Fear
Impact on self
Back to research theme
How far
have we
evolved?
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Back to research topic
RESEARCH TIME
4. WAYS OF CHANGING ORGANISATIONAL CULTURE
5. PROBLEMS OF CHANGING ORGANISATIONAL CULTURE
Work through the research activity below reading the articles, visiting the business
websites and watching the video clips. It is advised that you make notes on the key points
as you work through the research activities.
.
Research activity Walmart
Research activity British Airways
After carrying out the research try to ensure you understand :
•
Which notes relate to bp 4
•
Which notes relate to bp 5
•
How these 2 bps fit together
Back to research theme
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Back to research topic
ASSESSMENT ACTIVITY
4. WAYS OF CHANGING ORGANISATIONAL CULTURE
50 minutes = 10 minutes reading and planning
+ 40 minutes writing
Practice question 4
Level
Descriptor
Mark
L5
Good application AND good analysis
26-23
L4
Good application AND reasonable analysis
Good analysis AND reasonable application
OR
22-18
L3
Good analysis AND Limited application
Good application AND Limited analysis
Reasonable analysis AND Reasonable application
OR
OR
17-13
L2
Reasonable analysis AND Limited application
Reasonable application AND Limited analysis
OR
12-8
L1
Limited response – knowledge only
7-1
Level
Descriptor
Mark
E3
Good evaluation with evidence of research (+QOL)
14-11
E2
Reasonable evaluation with evidence of research (+QOL)
10-6
E1
Limited evaluation (+QOL)
5-1
Back to research theme
www.time2resources.co.uk
Back to research topic
ASSESSMENT ACTIVITY
5. PROBLEMS OF CHANGING ORGANISATIONAL CULTURE
50 minutes = 10 minutes reading and planning
+ 40 minutes writing
Practice question 5
Level
Descriptor
Mark
L5
Good application AND good analysis
26-23
L4
Good application AND reasonable analysis
Good analysis AND reasonable application
OR
22-18
L3
Good analysis AND Limited application
Good application AND Limited analysis
Reasonable analysis AND Reasonable application
OR
OR
17-13
L2
Reasonable analysis AND Limited application
Reasonable application AND Limited analysis
OR
12-8
L1
Limited response – knowledge only
7-1
Level
Descriptor
Mark
E3
Good evaluation with evidence of research (+QOL)
14-11
E2
Reasonable evaluation with evidence of research (+QOL)
10-6
E1
Limited evaluation (+QOL)
5-1
Back to research theme
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Back to research topic
GLOSSARY
4. WAYS OF CHANGING ORGANISATIONAL CULTURE
5. PROBLEMS OF CHANGING ORGANISATIONAL CULTURE
Managing change – the activity of planning for, implementing, coordinating and
monitoring the process of change
Project champions – the people responsible for driving a project forward and
gaining commitment
Project groups – a group of people from different backgrounds tasked with
achieving the desired programme of change
Project management – the activity of delivering the required change
Promote change – the process of gaining acceptance of change
Back to research theme
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ASSESSMENT ACTIVITY
Practice question 6
50 minutes = 10 minutes reading and planning
+ 40 minutes writing
Level
Descriptor
Mark
L5
Good application AND good analysis
26-23
L4
Good application AND reasonable analysis
Good analysis AND reasonable application
OR
22-18
L3
Good analysis AND Limited application
Good application AND Limited analysis
Reasonable analysis AND Reasonable application
OR
OR
17-13
L2
Reasonable analysis AND Limited application
Reasonable application AND Limited analysis
OR
12-8
L1
Limited response – knowledge only
7-1
Level
Descriptor
Mark
E3
Good evaluation with evidence of research (+QOL)
14-11
E2
Reasonable evaluation with evidence of research (+QOL)
10-6
E1
Limited evaluation (+QOL)
5-1
Back to research theme
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Back to research topic
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