What is an organisation?

An Organisation is a group of individuals

operating together in a systematic way to
achieve a set of objectives
Formal Organisation Has a consciously
coordinated system of human interactions with a
common purpose
Informal Organisation has social interactions
without a conspicuous structure or common
purpose.

The three characteristics of an organisation are

People, Structure and Purpose.

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What is organisational culture?

Organisation Culture The commonly held
and relatively stable set of beliefs, attitudes, values
and norms that exist throughout an organisation
usually refers as the way things are done around
here.
Every organisation has a system of beliefs, values,
norms of behaviour, symbols, myths and practices
that have evolved over time and are shared by its
members.
Organisations possess some of the ingredients of
a sub-culture distinctive shared beliefs and
values that sometimes translate into policies and
practices.

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How to determine the culture of an

organisation?

Communication of organisation goals

Clarity
Deployment in all departments and at all levels
Embracement by all employees

Dominant behaviour patterns:

within the organisation
Between the organisation and other stakeholders

Distribution of authority and decision-making

Concentration at the top?
Spread downwards with employees working closely
with customers?

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How to determine the culture of an

organisation?
Structure of the organisation
Nature of leadership

Authoritarian to democratic

Value of the organisation

Responsiveness to the needs and aspirations of
employees and other stakeholders

Entrepreneurial spirit
Receptiveness to embracing change

Proactive v/s reactive

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Types of organisation culture

Power Culture Normally found in small

business owner/manager takes all the
decisions and risks.
Limited amount of formalisation, rules, procedures
and policies. Workers rely on what has gone before.
Organisation not rigidly structured can easily adapt
to changes
As organisation grows, power culture tends to be
diminished

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Types of organisation culture

Role Culture Rigid Bureaucratic Culture

Works by logic and reason.
Typified by policies, procedures and practices that are
formally laid down
Authority, job descriptions, procedures for
communications, internal processes are all clearly
defined
The role of the person is more important as the
person himself
Stereotype ad very hard to adapt to changes
Cannot fit well for ambitious person

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Types of organisation culture

Task Culture Getting effective performance is

more important than power or individuals the
emphasis is on completing a project or task
Task approach.
More flexible to adapt to changes as the objective is
to achieve something
Ideal when the firm has to adapt quickly to changes in
business environment
Difficulties arise because of capability to coordinate
workflow, mobilising resources on time, adjusting to
budget, working towards economies of scale.

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Types of organisation culture

Person Culture The individual is the main

focus
The Organisation and its structure exist to serve the
individuals objectives and aspirations
Being able to do ones own thing
Usually found in specialised business

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Factors that influence the culture of

an Organisation

Origins Founding principles of the

organisation
Size Whether the organisation is big , small,
global?
Technology Rate of technology adoption
Goals and objectives Top-down or bottomup participation
External Environment PESTEL forces that
impact an organisation from outside
Human Resources - managing the diverse
personality behaviours

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Can Culture be Changed?

Culture Management its function is to foster the

most appropriate pattern of the culture elements
revealed by analysis to achieve organisational goals
Ability to cope with change
Bringing change in some culture elements, while
reinforcing other elements of the existing culture.
Focus on what the organisation does best

Successful organisational cultures have two key

components:
Culture should be coherent all cultural elements should
follow similar style and direction
Culture must be flexible enough to cope with rapid
changes in environment

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