Specific collection of values and norms that are shared by people and groups in an organisation and that control the way they interact with each other and with external stakeholders
Business Culture (Hill & Jones)
'The way we do things around here'
Business Culture (Handy)
Sum total of all beliefs, attitudes, norms, and customs that prevail within the organisation. Develop over time and can change as a result of major event (death of founder, threatened takeover, etc.)
Business Culture (generic)
Components of Culture (3)
- Norms of Behavior - i.e. informal dress codes, formal rules
- Symbols - i.e. rituals such office cake on birthdays, logos, slogans
- Shared Values & Beliefs - identifying what is important - underlying attitudes, beliefs (i.e. belief in importance of people as individuals)"
Major Factors that shape Culture of Org (5)
- Company Size
- Technology - how advanced is organisation (product & processes)
- Diversity - product range, geographical spread, cultural make-up of stakeholders
- Age of business and managers of businesses
- History - What worked in the past?
- Ownership - Sole trader vs large institutional shareholders vs many small shareholders
Schein's Culture (3)
- Espoused Values
- Basic assumptions and values
First leaders of company create culture. Very difficult to change.
Aspects of culture that can be seen - i.e. the way people dress
Schein - Artifacts
Strategies and goals of organisation including company slogans
Schein - Espoused Values
Unseen aspects of culture - exist at unconscious level - i.e. What is the org really about - profit seeking vs charitable etc.
Schein - Basic assumptions and values
Handy's Cultural Types (4)
Handy Culture - God Zeus - One major source of power and influence. i.e. small owner-managed business - think entrepreneurial structure with few formal rules
Handy Culture - God Apollo - people describe their job by its duties, not by its purpose. Job descriptions rule - strong emphasis on hierarchy & status - works in stable work environments
Handy Culture - God Athena - Emphasis on achieving the task at hand - success in terms of what they are achieving (project teams) - works for a rapidly changing environment.
Handy Culture - God Dionysus - exists to satisfy the requirements of the particular individual(s) that make up org - Small, where individuals undertake all duties themselves - i.e. judges in chamber
Hofsted: Extent to which people are integrated into groups. Are goals/performance assessed individually or for the group as a whole
Individualism vs Collectivisim
Hofsted: Society's tolerance for uncertainty / ambiguity / taking risks - determines how much people will act outside of their normal job descriptions and amount of bureaucracy
Hofsted: Extent to which the less powerful members of organisation accept and expect that power is distributed unequally. Whether or not the culture expects to be involved in the decision-making progress.
Hofsted: Degree to which the culture makes a distinction between males and females and the degree of focus on on work, power, success Employees motivated by status, job titles, pay raises vs motivated by work life balance, quality of life, relationships
Masculinity vs Femininity
Hofsted: Focus on future rewards, saving, persistence, ability to adapt vs focus on tradition, social obligations, saving face
Long-term vs Short-term Orientation
Hofsted: Enjoying life and having fun vs strict social norms
Indulgence vs Restraint
Network of relationships that exist within the organisation. Arises from common interests & friendships between staff
> Advantages - better motivation, communication, social control
> Disadvantages - inefficiencies, opposition to change, grapevine effect (rumors, etc.), conformity
Effective Management of Informal Organisation (3)
- Adapt formal structure to complement informal
- Maintain looser formal structure to allow informal to thrive
- Take account of informal organisation in decision making