TOPIC 9
ORGANIZATION CULTURE
9.1 Definition of Organization Culture
Introduction
Culture is shared meaning, understanding and sense making .
The shared beliefs, values and expectations held by individual also constitute organization culture.
Definition:
Organization culture can therefore said to be the essential collection of shared values which provide both explicit and implicit sign post to preferred behavior in the organizations.
9.2 Importance of culture in an organisation
- It creates distinction between one organization and others.
- It conveys a sense of identity for organizations members.
iii. It facilities the generation of commitment to something larger than one’s individual interest.
- It enhances the stability of social system.
9.3 Characteristics of Organization Culture
- Innovation and risk taking The degree to which employees are encouraged to be innovative and take risk.
- Attention to detail The degree to which employees are expected to exhibit precision ,analysis and attention to detail .
iii. Outcome orientation The degree to which management focuses on result or outcomes rather than on the techniques and processes used to achieve those outcomes.
- People orientation The degree to which management decisions take into consideration the effect of outcomes on people within organization.
- Team orientation The degree to which work activities are organized around teams rather than individuals.
- Aggressiveness The degree to which people are aggressive and competitive rather than easy going
vii. Stability The degree to which organizational activities emphasize maintaining the status quo in contrast to growth.
viii. Norms Standard to behavior exist including guidelines on how much work to do .
- Dominant values These are those values that the organizations advocates and expects from the participants in an organization e.g. High quality, low absenteeism and high efficiency.
- Rules These are strict guidelines related to getting along in the organization.
9.4 Creating an Ethical Organization Culture
1. Be a visible role model
Employees will look to top management behavior as bench mark for defining appropriate behavior.
2. Communicate ethical expectations
Ethnical ambiguities can be minimized by creating and disseminating an organizational code of ethics. It should state the organization’s primary values and ethical rules that employees are expected to follow.
3. Provide ethical training
Set up seminars ,workshops and ethical training programs .Use the training sessions to reinforce the organization’s primary values, rules and standard of conduct .
4. Visibility rewards to ethical acts and punish unethical ones
Performance appraisals of managers should include a point by point evaluation of how his or her decisions measure up against the organization code of ethics .People who act ethically should be visibly rewarded for their behavior and unethical acts should be punished .
5. Provide protective mechanisms
The organization needs to provide formal mechanisms so that employees can discuss ethical dilemmas and report unethical behaviour without fear of reprimand.
Creating a Culture
A culture is created basically by a founder or top-level manager who forms a core group that shares a common vision .
Stage I
i. Recruitment of like minded individuals These people will be attracted instinctively to the founder’s visions and aims.
ii. The development of groups norms These are likely to be strongly influenced by founders in the formative stages
iii. Statement of espoused values The founders or initiators will have the greatest influence on these values in the early stages , subsequently, the organizations leadership must demonstrate to other stakeholders that what is saying truly believes and not accordingly .
iv. Production of mission statement These provides visible evidence of espoused values and norms and the platform for the organization’s relationships with various stakeholders.
Stage 2
These comprise of habit and tradition building activities, aimed at embedding the culture in the day to day activities of the organizations by means of procedural and ritualistic measures such as:
i. The introduction of appropriate communication systems and decision making to assist integration
ii. The installation of organizational procedures and rules which promotes integration by setting standards for members to follow.
iii. Promotion of organization symbols Battle flags national emblems demonstrates the unity of the organization which come to embody a certain reputation e.g. Red Cross.
iv. Development of key rituals, helps to establish the organizations ethos’s i.e.- the part of culture to do with organization climate. v. The production of policy statements on the key issues .These lay the basis for relations with stakeholders.
9.4 Types of Organisational Culture
Handy describes four main types of organisational cultures: power culture; role culture; task culture; and person culture.
- Power Culture
Power culture depends on a central power source with rays of influence from the central figure throughout the organisation. A power culture is frequently found in small entrepreneurial organisations and relies on trust, empathy and personal communications for its effectiveness. Control is exercised from the centre by the selection of key individuals. There are few rules and procedures, and little bureaucracy. It is a political organisation with decisions taken largely on the balance of influence.
- Role Culture
Role culture is often stereotyped as a bureaucracy and works by logic and rationality. Role culture rests on the strength of strong organisational ‘pillars’ – the functions of specialists in, for example, finance, purchasing and production. The work of, and interaction between, the pillars is controlled by procedures and rules, and co-ordinated by the pediment of a small band of senior managers. Role or job description is often more important than the individual and position power is the main source of power.
- Task Culture
Task culture is job-oriented or project-oriented. In terms of structure the task culture can be likened to a net, some strands of which are stronger than others, and with much of the power and influence at the interstices. An example is the matrix organisation. Task culture seeks to bring together the right resources and people, and utilises the unifying power of the group. Influence is widely spread and based more on expert power than on position or personal power.
- Person Culture
Person culture is where the individual is the central focus and any structure exists to serve the individuals within it. When a group of people decide that it is in their own interests to band together to do their own thing and share office space, equipment or clerical assistance then the resulting organisation would have a person culture. Examples are groups of barristers, architects, doctors or consultants. Although it is found in only a few organisations many individuals have a preference for person culture, for example university professors and specialists. Management hierarchies and control mechanisms are possible only by mutual consent. Individuals have almost complete autonomy and any influence over them is likely to be on the basis of personal power.
- Values
Values are beliefs in what is best or good for the organization and what should or ought to happen. The ‘value set’ of an organization may only be recognized at top level, or it may be shared throughout the business, in which case it could be described as ‘value-driven’.
The stronger the values the more they will influence behaviour. This does not depend upon their having been articulated. Implicit values that are deeply embedded in the culture of an organization and are reinforced by the behaviour of management can be highly influential, while espoused values that are idealistic and are not reflected in managerial behaviour may have little or no effect. When values are acted on they are called ‘values in use’. Some of the most typical areas in which values can be expressed, implicitly or explicitly, are: performance; competence; competitiveness; innovation; quality; customer service; teamwork; care and consideration for people.
Values are translated into reality (enacted) through norms and artefacts. They may also be expressed through the media of language (organizational jargon), rituals, stories and myths.
- Norms
Norms are the unwritten rules of behaviour, the ‘rules of the game’ that provide informalguidelines on how to behave. Norms tell people what they are supposed to be doing, saying,believing, and even wearing. They are never expressed in writing if they were, they would be policies or procedures. They are passed on by word of mouth or behaviour and can be enforced by the reactions of people if they are violated. They can exert very powerful pressure on behaviour because of these reactions; we control others by the way we react to them.
Norms refer to such aspects of behaviour as:
- how managers treat the members of their teams (management style) and how the latter relate to their managers;
- the prevailing work ethic, eg ‘work hard, play hard’, ‘come in early, stay late’, ‘if you cannot finish your work during business hours you are obviously inefficient’, ‘look busy at all times’, ‘look relaxed at all times’;
- Status; how much importance is attached to it; the existence or lack of obvious status symbols.
- Artefacts
Artefacts are the visible and tangible aspects of an organization that people hear, see or feel and which contributes to their understanding of the organization’s culture. Artefacts can include such things as the working environment, the tone and language used in e-mails, letters or memoranda, the manner in which people address each other at meetings, in e-mails or over the telephone, the welcome (or lack of welcome) given to visitors and the way in which telephonists deal with outside calls. Artefacts can be very revealing.
- Management Style
Management style is the approach managers use to deal with people. It is also called ‘leadership style. There are many styles of leadership, and leaders can be classified in extremes as follows: Autocratic, Democratic, Laissez-faire, Bureaucratic, and Expert Leadership.
Most managers adopt an approach somewhere between the extremes. Some will vary it according to the situation or their feelings at the time, others will stick to the same style whatever happens. A good case can be made for using an appropriate style according to the situation, but it is undesirable to be inconsistent in the style used in similar situations. Every manager has his or her own style but this will be influenced by the organizational culture, which may produce a prevailing management style that represents the behavioural norm for managers that is generally expected and adopted.
9.6 Influences on the Development of Culture
The culture and structure of an organisation develop over time and in response to a complex set of factors. We can, however, identify a number of key influences that are likely to play an important role in the development of any corporate culture. These include: history; primary function and technology; goals and objectives; size; location; management and staffing; and the environment.
- History: The reason, and manner in which, the organisation was originally formed, its age, and the philosophy and values of its owners and first senior managers will affect culture. A key event in the organisation’s history such as a merger or major reorganisation, or a new generation of top management, may bring about a change in culture. Corporate history can be an effective induction tool to assist a growth programme, and to help integrate acquisitions and new employees by infusion with the organisation’s culture and identity.
- Primary function and technology: The nature of the organisation’s ‘business’ and its primary function have an important influence on its culture. This includes the range and quality of products and services provided the importance of reputation and the type of customers. The primary function of the organisation will determine the nature of the technological processes and methods of undertaking work, which in turn also affect structure and culture.
- Goals and objectives: Although a business organisation may pursue profitability, this is not by itself very clear or a sufficient criterion for its effective management. For example, to what extent is emphasis placed on long-term survival or growth and development? How much attention is given to avoiding risks and uncertainties? Or how much concern is shown for broader social responsibilities? The organisation must give attention to objectives in all key areas of its operations. The combination of objectives and resultant strategies will influence culture, and may itself be influenced by changes in culture.
- Size: Usually larger organisations have more formalized structures and cultures. Increased size is likely to result in separate departments and possibly split-site operations. This may cause difficulties in communication and inter-departmental rivalries with the need for effective co-ordination. A rapid expansion, or decline, in size and rate of growth, and resultant changes in staffing will influence structure and culture.
- Location: Geographical location and the physical characteristics can have a major influence on culture – for example, whether an organisation is located in a quiet rural location or a busy city centre. This can influence the types of customers and the staff employed. It can also affect the nature of services provided, the sense of ‘boundary’ and distinctive identity, and opportunities for development.
- Management and staffing: Top executives can have considerable influence on the nature of corporate culture.However, all members of staff help to shape the dominant culture of an organisation, irrespective of what senior management feel it should be. Culture is also determined by the nature of staff employed and the extent to which they accept management philosophy and policies or pay only ‘lip service’. Another important influence is the match between corporate culture and employees’ perception of the psychological contract.
- The environment: In order to be effective, the organisation must be responsive to external environmental influences. For example, if the organisation operates within a dynamic environment it requires a structure and culture that are sensitive and readily adaptable to change. An organic structure is more likely to respond effectively to new opportunities and challenges, and risks and limitations presented by the external environment.
