www.time2resources.co.uk
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INTRODUCTION www.time2resources.co.uk
The broad theme for this year’s research task is
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
• “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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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.” www.time2resources.co.uk
Introductory case study from
Times100
What is culture?
Creating a high performance culture at Siemens www.time2resources.co.uk
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
• Robert Cooke
Selective use of key words to underpin an argument
• 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
• Healthy interaction
• Share ideas
• Innovative solutions
• Achievement
• Self actualising
• Encouragement
• Positive ambience
Passive
• Behave in a way contrary to own beliefs
• Please superiors
• Approval
• Conventional
• Dependent
• Avoidance
Aggressive
• Promote competition
• Want power and appreciation
• Opposition
• Power
• Perfectionist
• Competitive www.time2resources.co.uk
TYPES OF CULTURE
Edgar Schein 3 levels
Culture is formed over time
Consider:
How visual is each level to an outside observer?
Which is the most difficult to understand?
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Factors influencing the culture of an organisation and cultural differences within an organisation
The impact of organisational culture on business strategies and performance
Reasons for changes in organisational culture
Ways of changing organisational culture
5.
Problems of changing organisational culture www.time2resources.co.uk
1 .
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
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
Employees
Speed of growth www.time2resources.co.uk
Founders
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 www.time2resources.co.uk
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
You will consider these when looking at the first research task.
Split the class into 5.
Each group to research one of these 5 factors and report back www.time2resources.co.uk
BACKGROUND KNOWLEDGE
1. FACTORS INFLUENCING THE CULTURE OF AN ORGANISATION AND
CULTURAL DIFFERENCES WITHIN AN ORGANISATION
Is this possible?:
www.time2resources.co.uk
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.
www.time2resources.co.uk
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?
www.time2resources.co.uk
ASSESSMENT ACTIVITY
1. FACTORS INFLUENCING THE CULTURE OF AN ORGANISATION AND
CULTURAL DIFFERENCES WITHIN AN ORGANISATION
Practice question 1
50 minutes = 10 minutes reading and planning
+ 40 minutes writing
Level
L5
L4
L3
L2
L1
Descriptor
Good application AND good analysis
Good application AND reasonable analysis OR
Good analysis AND reasonable application
Good analysis AND Limited application OR
Good application AND Limited analysis OR
Reasonable analysis AND Reasonable application
OR Reasonable analysis AND Limited application
Reasonable application AND Limited analysis
Limited response – knowledge only
Level
E3
Descriptor
Good evaluation with evidence of research (+QOL)
E2
E1
Reasonable evaluation with evidence of research (+QOL)
Limited evaluation (+QOL) www.time2resources.co.uk
Mark
26-23
22-18
17-13
12-8
7-1
Mark
14-11
10-6
5-1
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 www.time2resources.co.uk
2.
The impact of culture on team performance at the Olympics
www.time2resources.co.uk
INTRODUCTION
2. 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?
www.time2resources.co.uk
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
Innovation
Organisational structure www.time2resources.co.uk
BACKGROUND KNOWLEDGE
2. THE IMPACT OF ORGANISATIONAL CULTURE ON BUSINESS STRATEGIES AND
PERFORMANCE
• A strong culture
•
Staff respond positively to organisational values
• Shared sense of responsibility towards vision, mission and objectives
•
Motivated and loyal staff
• Greater efficiency
• Accept roles and responsibilities willingly
“A corporation that can create a strong culture has employees who
•
Abide by policies believe in its products, its customers and its processes. They
• “everyone buys into it”
•
A weak culture sell it willingly because it is part of 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?
www.time2resources.co.uk
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?
www.time2resources.co.uk
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?
www.time2resources.co.uk
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
L5
L4
L3
L2
L1
Descriptor
Good application AND good analysis
Good application AND reasonable analysis OR
Good analysis AND reasonable application
Good analysis AND Limited application OR
Good application AND Limited analysis OR
Reasonable analysis AND Reasonable application
OR Reasonable analysis AND Limited application
Reasonable application AND Limited analysis
Limited response – knowledge only
Mark
26-23
22-18
17-13
12-8
7-1
Level
E3
E2
E1
Descriptor
Good evaluation with evidence of research (+QOL)
Reasonable evaluation with evidence of research (+QOL)
Limited evaluation (+QOL) www.time2resources.co.uk
Mark
14-11
10-6
5-1
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 www.time2resources.co.uk
3.
Introductory case study from
Times100
Changing the culture at Jaguar www.time2resources.co.uk
INTRODUCTION
3. REASONS FOR CHANGES IN ORGANISATIONAL CULTURE
• Consider internal and external factors
• 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?
www.time2resources.co.uk
BACKGROUND KNOWLEDGE
3. REASONS FOR CHANGES IN ORGANISATIONAL CULTURE
Performance
Market conditions
New leadership
Reasons
Corporate objectives
Change of sector public v private
“Change your culture or die”
Denning
Organic growth
New ownership www.time2resources.co.uk
Mervyn King
“Banks must change culture”
Can you identity the reasons why?
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?
www.time2resources.co.uk
ASSESSMENT ACTIVITY
3. REASONS FOR CHANGES IN ORGANISATIONAL CULTURE
Practice question 3
50 minutes = 10 minutes reading and planning
+ 40 minutes writing
Level
L5
L4
L3
L2
L1
Descriptor
Good application AND good analysis
Good application AND reasonable analysis OR
Good analysis AND reasonable application
Good analysis AND Limited application OR
Good application AND Limited analysis OR
Reasonable analysis AND Reasonable application
OR Reasonable analysis AND Limited application
Reasonable application AND Limited analysis
Limited response – knowledge only
Level
E3
E2
E1
Descriptor
Good evaluation with evidence of research (+QOL)
Reasonable evaluation with evidence of research (+QOL)
Limited evaluation (+QOL)
Back to research theme www.time2resources.co.uk
Mark
26-23
22-18
17-13
12-8
7-1
Mark
14-11
10-6
5-1
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
www.time2resources.co.uk
4.
“it’s a bit like gardening!”
30 second clip
www.time2resources.co.uk
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?
www.time2resources.co.uk
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?
Both
Inform or Coerce www.time2resources.co.uk
or
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?
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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
www.time2resources.co.uk
It makes sense to consider the problems of changing culture to understand the ways of changing culture www.time2resources.co.uk
5.
Introduction
Background Knowledge
Assessment Activity
Glossary
www.time2resources.co.uk
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.
www.time2resources.co.uk
Back to research topic
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:
• 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
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.”
How far have we evolved?
www.time2resources.co.uk
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
www.time2resources.co.uk
ASSESSMENT ACTIVITY
4. WAYS OF CHANGING ORGANISATIONAL CULTURE
50 minutes = 10 minutes reading and planning
+ 40 minutes writing
Practice question 4
Level
L5
L4
L3
L2
L1
Descriptor
Good application AND good analysis
Good application AND reasonable analysis OR
Good analysis AND reasonable application
Good analysis AND Limited application OR
Good application AND Limited analysis OR
Reasonable analysis AND Reasonable application
OR Reasonable analysis AND Limited application
Reasonable application AND Limited analysis
Limited response – knowledge only
Mark
26-23
22-18
17-13
12-8
7-1
Level
E3
E2
E1
Descriptor
Good evaluation with evidence of research (+QOL)
Reasonable evaluation with evidence of research (+QOL)
Limited evaluation (+QOL) www.time2resources.co.uk
Mark
14-11
10-6
5-1
ASSESSMENT ACTIVITY
5. PROBLEMS OF CHANGING ORGANISATIONAL CULTURE
50 minutes = 10 minutes reading and planning
+ 40 minutes writing
Practice question 5
Level
L5
L4
L3
L2
L1
Descriptor
Good application AND good analysis
Good application AND reasonable analysis OR
Good analysis AND reasonable application
Good analysis AND Limited application OR
Good application AND Limited analysis OR
Reasonable analysis AND Reasonable application
OR Reasonable analysis AND Limited application
Reasonable application AND Limited analysis
Limited response – knowledge only
Mark
26-23
22-18
17-13
12-8
7-1
Level
E3
E2
E1
Descriptor
Good evaluation with evidence of research (+QOL)
Reasonable evaluation with evidence of research (+QOL)
Limited evaluation (+QOL) www.time2resources.co.uk
Mark
14-11
10-6
5-1
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
www.time2resources.co.uk
ASSESSMENT ACTIVITY
Practice question 6
50 minutes = 10 minutes reading and planning
+ 40 minutes writing
Level
L5
L4
L3
L2
L1
Descriptor
Good application AND good analysis
Good application AND reasonable analysis OR
Good analysis AND reasonable application
Good analysis AND Limited application OR
Good application AND Limited analysis OR
Reasonable analysis AND Reasonable application
OR Reasonable analysis AND Limited application
Reasonable application AND Limited analysis
Limited response – knowledge only
Level
E3
E2
E1
Descriptor
Good evaluation with evidence of research (+QOL)
Reasonable evaluation with evidence of research (+QOL)
Limited evaluation (+QOL) www.time2resources.co.uk
Mark
26-23
22-18
17-13
12-8
7-1
Mark
14-11
10-6
5-1
Back to research topic