What is organisational culture?
The unwritten code that affects the attitudes and
behaviours of staff, approaches to decision making
and the leadership style of management.
Advantages: Strong Corp Culture
1.
2.
3.
4.
5.
6.
7.
Identity
Teamwork
Commitment/Retention
Motivation
Orientation as to decision making
Reinforce Org Values
Helps senior mgt control/direct
‘Organisational culture
is the key to
organisational
excellence....and the
function of leadership
is the creation and
management of
culture” (Edgar Schien)
Corp. Culture: Manifestations
1. Furniture/Clothes/Tools
2. Ceremonials (Co. Song vs Donut eating contest)
3. Courses/Culture Support
4. Heroes
5. Culture is X after it all went wrong in year Y
6. Language (Employee/Colleague/Subordinate)
7. Myths
8. Behavioural norms (meeting timing/greetings/deadlines)
9. Office layout
10. Rituals (Birthdays?)
What is Organisational Culture?
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
Types of Culture
• Edgar Schein 3 levels
• Culture is formed over time
www.time2resources.co.uk
Consider:
How visual is
each level to an
outside
observer?
Which is the
most difficult to
understand?
Classifying Organisational Culture
Charles Handy (1981)
Classification system....
Power
Role
Task
Person
Prof Hofstede’s Cultural Dimensions
• Based on research in 1980s, 5 key variables that vary by country
• Power Distance (Chinese vs Scandinavia/Israel)
• Individualism vs Collectivism
• Masculinity vs Femininity
• Uncertainty Avoidance (Germany vs Italy?)
• LT vs ST Orientation
“THERE IS NO SUCH THING AS A RIGHT
CULTURE, WHAT MATTERS IS WHETHER THE
CULTURE IS RIGHT FOR THE BUSINESS
CIRCUMSTANCES”
Do you agree?
Consolidation Questions
• Reasons for changing culture?
• Problems of culture?
• How to change organisational culture?
• Is culture important?
Additional Material
Further definitions: Organisational Culture
• “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!
Types of Organisational Culture
Purpose... Creating a sense of
“who we are”, “what we do”
and “what we stand for”...
 Shared meanings that helps
everyone understand how to
act & behave
 Strong culture = internally
consistent
 The culture MUST be suited
the environment the business
operates in...allowing response
& reaction to market
changes....
Changing organisational Culture....
Possible reasons for change?
The existing culture can hinder growth,
development and success.
Some examples when to change:
• Product-led – respond to changing
market conditions (become taskbased)
• Recently privatised business
(become profit orientated)
• Merger or takeover
• Need to motivate staff (become
person-based)
Can you think of any more?
Sources of Organisational Culture






Company routines
Formal controls
Organisational structures
Power structure
Symbols
Rituals and myths
‘Organisational culture
is the key to
organisational
excellence....and the
function of leadership
is the creation and
management of
culture” (Edgar Schien)