Managing organisational change

• organisational culture


  the way that people do things in a company and then ay that they expect things to be done
• organisational culture is created and reinforced by

  company rule sand managerial attitudes, behaviour and recruitment policies
• company culture can be identified by looking at

  1. heroes (people represent company values)

  2. stories told within company

  3. symbols that represent values

  4. ceremonies business holds
• organisational culture can be

  strong or weak
• strong culture


  when employees agree with corporate values of company
• strong corporate culture advantages

  - employees have less supervision

  - staff more loyal to business

  - staff turnover lower

  - increase employee motivation
• weak culture


  where employees of a company don't share the company values and have to be forced to comply with them
• 4 main types of organisational culture

  1. Power culture

  2. Role culture

  3. Person culture

  4. Task culture
• 1. Power culture (4 main types of organisational culture)

  - centralised structure where decision limited to small number people

  - may begin to struggle if business grows

  - employees likely to be more resistant to change
• 2. role culture (4 main types of organisational culture)

  - common in bureaucratic firms where authority defined by job title

  - decision from senior managers

  - opportunities - poor communication between departments so respond slowly to change

  - avoid risk for fear fo failure - change is rare

  - any change will meet resistance
• 3. Person culture (4 main types of organisational culture)

  - common in loose organisations of individual workers, usually professional partnershi[s

  - objectives defined by personal ambitions of individuals involved

  - decisions made jointly so all employees comfortable with changes

  - change can be difficult - think what's best for themselves
• Task culture (4 main types of organisational culture)

  - place emphasis on specific task done

  - get small teams work together on project - may be conflicts

  - supports objectives based around products

  - respons well to management by objectives

  - change normal easy used to changing teams
• other types of organisational cultures

  - entrepreneurial

  - customer focused

  -clan culture

  - market culture
• corporate culture


  the shared experiences, stories, beliefs, and norms that characterize an organization
• how does organisational culture of a business effect staff

  - affects motivation of employees

  eg. power culture demotivate creative staff
• how does organisational culture of a business effect customers

  organisational culture affects customers loyalty to business eg. customers focused culture more likely to have customers loyal
• how does organisational culture of a business effect shareholders

  Level of risk that businesses take depends on organisational structure - shareholders may get low return on investment if invest in company with low risk culture
• Two reasons why managers may change organisational culture

  1. depends on preferences of its leaders - may make its similar to old business

  2. may change culture to be more competitive
• growth can influence organisational culture

  - if business grow - take on new employees - different expectation and aims

  - become more corporate and rigid

  - multinational

  - amount culture affected depends on how strong original culture was
• changing organisational culture can be difficult

  - employees resist change

  - employees worked long time resist

  - changes employee behaviour and attitudes so complicated

  - expensive - changing layout, extra training, new processes

  - recruitment, induction
• Geert Hofstede's Cultural Dimensions

  1. Power Distance

  2. Uncertainty avoidance

  3. Individualism vc collectivism

  4. masculinity vs femininity

  5. long term orientation

  6. Indulgence vs restraint
• Geert Hofstede


  - used large set of data collected from employees across different countries to identify 4 areas of national culture - two more have been added

  - countries are scared on each of 3 dimensions - allow business to assess cultural differences when dealing with businesses form different countries and plan for any culture clashes
• 1. Power distance (Geert Hofstede's Cultural Dimensions)

  The extent tow hick people accept that power and wealth is distributed unequally. Societies with low power distance expect equality and societies with high power distance accept hierarchy without agreement
• Uncertainty avoidance (Geert Hofstede's Cultural Dimensions)

  The extent to which people attempt to minimise uncertainty. this can be done by introducing rules or regulations. people in societies with low uncertainty avoidance tend to be open to change.
• Individualism vs collectivism (Geert Hofstede's Cultural Dimensions)

  The extent to which people are expected to look after themselves rather than support ecahother. Societies with high individualism focus on personal achievement and rights and look after selves and family. Collectivist societies made up of large groups where members expected to support eachother in return for loyalty.
• Masculinity vs femininity (Geert Hofstede's Cultural Dimensions)

  Masculine cultures are highly competitive and powerful with contrasting gender roles. Feminine cultures focus on varying and quality of life. More power and money in masculinity.
• lOng term orientation (Geert Hofstede's Cultural Dimensions)

  The higher the long term orientation, the more the society looks to future and accepts new ideas, rather than follow tradition.
• Indulgence vs restraint (Geert Hofstede's Cultural Dimensions)

  Indulgent societies allow people to satisfy desires and impulses within reason. restrained societies attempt to regulate desires of their people.