The effect an organisation's (organizational) culture has on performance.
What is an organisational (organizational) culture?
How does an organisational (organizational) culture form and how can it be changed.
Types of organisational culture.
The effect of leadership on an organisational (organizational) culture.
Postgraduate Diploma assignment
Original Title
Organisational (organizational) Culture. Definition, description, causes, key players and methods to change.
The effect an organisation's (organizational) culture has on performance.
What is an organisational (organizational) culture?
How does an organisational (organizational) culture form and how can it be changed.
Types of organisational culture.
The effect of leadership on an organisational (organizational) culture.
Postgraduate Diploma assignment
The effect an organisation's (organizational) culture has on performance.
What is an organisational (organizational) culture?
How does an organisational (organizational) culture form and how can it be changed.
Types of organisational culture.
The effect of leadership on an organisational (organizational) culture.
Postgraduate Diploma assignment
The importance of organisational culture is universally recognised by a variety of
disciplines (Doherty, et al., 2013). For instance Peters and Waterman contend that, peoples greatest need is to find meaning in their working lives (Peters and Waterman, 2004), Doherty, eta al. (2013) agree with this statement adding that the need for respect is an evident core value that must be adopted by organisations thus allowing staff to feel valued, included and appreciated. A commonly agreed upon definition of what an organisational culture is has proven to be rather difficult, this is particularly evident when Kroebner, et al. (1985) identified 164 separate definitions of workplace culture. Westrum (2004) emphasises this adding: to speak of organisational culture is to take on many problems. Approaches to organisational culture have been diverse . There appears to be no common understanding about what culture is. Hatch (1997) concurs with Westrum stating: is perhaps the most difficult of all organisational concepts to define. Conversely however, Bellot (2011) disagrees with these theories stating this does not necessarily mean that organisational culture is a weak or ill-defined concept, rather this divergence is indicative of a continually developing body of research. However for the purpose of this essay Scheins (2010) definition the way we do things here is perhaps the most appropriate.
Organisational Cultures A model. There are a multitude of organisational cultural models, however the most prominent of them - it has been recognised by the Financial Times as one of the 40 most important frameworks in the history of business, is the Competing values framework (CVF). (DeGraff, 2014) The CVF was first described by Quinn and Rohrbaugh (1983) for the purpose of determining the values employees hold as valuable within an organisations culture. Their research resulted in a model for organisation that is based on two dimensions: Organisational process (organic vs. mechanistic) Organisational orientation (internal vs. external) The CVF experienced further development and adaptation by Cameron and Quinn (1999) and Deshpande and Farley (1998), resulting in the framework including tools that allow for a deeper examination of organisational. These tools further identified four culture types: The Clan Culture (organic, internal) is characterised by an emphasis on cohesiveness, teamwork and commitment to the organisation. The Market Culture (mechanistic, external) is characterised by competitiveness and goal achievement. The Adhocracy Culture (organic, external) is characterised by its focus creativity, entrepreneurship, and dynamism. The Hierarchy Culture (mechanistic, internal) is characterised by order, rules and regulations, uniformity and efficiency. (Cameron and Quinn, 1999, Deshpande and Farley 1998) It should be noted that the adapted CVF has been used widely by Deshpande, Farley and Webster (1993 & 1998) in their Asian and cross-culture research who define these four cultural styles respectively as Rabbit, Monkey, Elephant and Tiger.
Figure 1 The CVF model of Organisational culture types as adapted from Quinn & Rohrbaugh (1983), Cameron and Freeman (1999) and Deshpande and Farley (1998).
Organisational Culture Its development. An organisational culture often emerges at the early stages of the organisations development, the management team/owners who are involved with the business from its inception have the opportunity to establish a culture. Thereafter, the employees/staff who come on board will often fall in with the established behaviour patterns that have been established. While an organisational culture can and will evolve over time with new staff and management regimes, a will require time to develop and once developed can be difficult to change or amend. (Schein, 2010) There are numerous factors that influence the formation of an organisations culture. Doina, et al. (2008) propose and describe the following to be some of the most important factors: The Founders/Owners. It has often been noted that the ideals and philosophies of the founders create the culture and ideals of an organisation. They owners have the ability and authority to exert their influence. The Environment (economic, cultural and technological) These external factors have a profound effect on the internal cultures of an organisation, a relevant example given by Doina, et al. (2008) is the current economic crisis and how organisations in their continued bid to exist are practicing efficiency and ruthlessness, this attitude has been shown to filter down the levels of an organisation. The result is that departments are becoming result and cost driven with higher expectations placed on employees and teams. Leadership and Management Style this has a considerable effect on group behaviours. Managers have the ability to create a working atmosphere that has honesty, trust and appreciation at its heart, the opposite is also true. This corresponds to what Peters and Waterman (2008) stated. The Organisations Characteristics Characteristics often depend on the size and complexity of an organisation. Larger companies tend to have a higher degree of specialisation and a more impersonal character, this can result in the formation of subcultures due to the disengagement that often occurs between sections and divisions of a large company. In contrast it can be said that a smaller company will have a more homogenous character which should encompass the entirety of the company. The degree of formality exhibited at a companys inception is an important factor in a companys character, this be observed by how many rules, policies and norms that employees have to be complied with.
Organisational Culture Its effects. It is broadly accepted that organisational culture is related to performance (Westrum 2004, Scott et al. 2003a, and Peters and Waterman 2004). Glisson (2007) identifies that, a number of studies in various organisations link culture. to service quality, service outcomes, worker morale, staff turnover, adoption of innovations, and organisational effectiveness. Scott et al (2003b) however, urge restraint when interpreting the trend of any connection between performance and culture, they suggest that it: is equally plausible that certain cultures emerge from high performing organisations... That is performance may drive culture. They highlight that crucially it is not enough to know whether culture is linked to performance ... We also need to discover how and why it is linked for only then can we decide if policies, strategies and interventions are appropriate. Furthermore the effects of an organisations culture can have a significant effect on employees behaviour as well as their performance (Lunenburg and Potter, 2011, Hellriegel and Slocum, 2011), this can be observed in the following areas (Rehman,n.d.): By being aware of an organisations culture the employee will be able to understand the organisations history and current methods of operations. This insight will provide key guidance on expected behaviour and attitude. An organisations culture has the potential to foster employee commitment, this will depend on the companys philosophy and values. This commitment can generate feeling of working towards shared goals. An organisations culture through its established norms can serve as a control mechanism to influence behaviour, the norms can encourage desired behaviour while discouraging undesired behaviour. Another method to accomplish this is through the companys recruitment and retaining processes where employees are retained or hired depending on their values best fitting the organisations own values.
Organisational Culture Change. Given the complexity conceptualising and instigating an organisational culture, it is small wonder that Grant (2011) cautions, Cultural change cannot happen at the flick of a switch and change cannot happen without some form of disruption. Halligan (2007) approves stating that, there is no more difficult task than that of changing peoples behaviour It would follow therefore that the main actors who instigate an organisations culture would also be those that exert the most influence when changing it, in most case this will be the organisations leaders. (Doherty, et al., 2013) Denning (2010) believes that changing an organisations culture is one of the most difficult leadership challenges, furthermore he writes that the difficulty is due the nature of organizational culture which comprises of an interlocking set of goals, roles, processes, values, communications practices, attitudes and assumptions; these goals fit together as an mutually reinforcing system and combine to prevent any attempt to change it. Denning (2010) states that changing a culture is a large-scale undertaking, and all of the companys tools will need to be put into use. However, he warns that the order in which these tools are deployed will have a critical impact on the likelihood of success. Denning (2010) contends that the most productive success strategy begins with leadership tools, such as a vision or a story for the future, then cement the change in place with management tools (such as role definitions, measurement and control systems), and then finally the use of power tools such as coercion and punishments as a last resort, when all else fails.
Organisational Culture Authors experience. It has been the authors experience working for an organisation that promotes itself as a clan culture that after researching the theory of organisational culture, the company evidently falls into the Hierarchy Culture. The established organisational culture focuses on the founders believes and philosophies. Resulting in a workforce that is demotivated, passive due to all actions and decisions being controlled by the founder. To change the organisations culture would involve a change in the founders attitude, a change in management/leadership style and an overhaul of the companys characteristics. This change would be significant and in the authors opinion very unlikely for the foreseeable future.
Organisational Culture - Summary Organisational culture remains a developing area of research and interest for a variety of disciplines. The difficulty in describing the concept will predictably lead to challenges in studying it, its effect on quality and productivity, and how best to assess and change it. (Doherty, et al. 2013) Whilst it is clear that culture change is a complex and lengthy process, for which there no set procedure, factors that facilitate change have been identified and these include: leadership, engagement, communication and team work (Leonard and Frankel, 2012, Leape et al., 2012). These factors can therefore be considered the bases on which culture improvement should and must be based upon, and their importance should not be undervalued. (Doherty, et al. 2013)
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