10.2 - Managing Organisational Culture

• Organisational culture refers to the ethos, values and beliefs of a business and its employees. When attempting to study the business culture, managers and leaders can use Handy’s model of culture.
• Handy's model is based on four types of organisational cultures which are power culture, role culture, task culture and person culture
• Power culture is where there is an emphasis on hierarchy and authority within the organisation. This type of culture is often found in large organisations with many layers of management such as government departments or multinational corporations.
• Role culture is when people have clearly defined roles and responsibilities within their job. The focus is on doing what they were employed to do rather than being creative or innovative.
• Power culture is where there is an emphasis on hierarchy and authority with decisions being made by those at the top of the organisation. This type of culture is often found in large businesses that have been around for many years such as banks or oil companies.
• Role culture is when people work together within their own departments but do not necessarily interact much outside them. The focus here is on doing your job well rather than working closely with others from different areas of the business.
• Role culture is where people have clearly defined roles and responsibilities. The focus is on job specialisation and efficiency rather than individual creativity or innovation.
• Task culture is where teams come together to complete specific tasks. These groups may be cross functional so they include members from various parts of the business. They will only exist while completing the project and then disband once it has finished.
• Task culture is where the focus is on achieving specific goals and objectives through teamwork and collaboration. It encourages open communication and shared decision making.
• Person culture is where individuals are valued and encouraged to develop their own skills and abilities. There is a strong emphasis on personal growth and development.
• Task culture is where teams work together towards achieving common goals. There is a strong sense of teamwork and collaboration between members of staff.
• Person culture is where individuals are encouraged to be themselves and express their own ideas and opinions. It is characterised by openness and trust among colleagues.
• Task culture is where the main priority is completing tasks efficiently and effectively. There may be less emphasis on teamwork and collaboration compared to other types of culture.
• The advantages of having a positive corporate culture include increased motivation, higher levels of employee satisfaction, improved productivity and better communication throughout the company.
• Person culture is where individuals are encouraged to develop themselves personally and professionally. This type of culture is often found in smaller businesses where everyone knows each other well and has a close working relationship.
• The advantages of using Handy's model include it providing a framework for understanding different types of organisational culture and how they might impact employee behaviour and performance.
• Power culture refers to a business that places importance on the authority and decision-making power of a small number of key employees.
• Role culture refers to a business which places importance on employees having clear roles within the organisation.
• Task culture refers to a business which places importance on employees being associated with tasks and projects within the organisation.
• Person culture refers to a business which places importance on employees being valued and operating autonomously within the business.
• Hofstede’s model of national culture states that businesses operating internationally will be affected by the cultural influences of the different countries in which they operate, and these influences are categorised: Power Distance, Individualism vs. Collectivism, Masculinity vs. Femininity, Uncertainty Avoidance.
• • Individualism and collectivism state that different countries will influence branches of a business in different ways as some countries have societies which value individuals whereas other countries have societies which value team members.
• • Power distance states that different countries will influence branches of a business in different ways as some countries have societies which value individuals based on age and experience whereas other countries have societies which value individuals based on their skill and ability.
• • Long-term orientation states that different countries will influence branches of a business in different ways as some countries have societies and governments which value short-term approaches whereas other countries have societies and governments which value long-term approaches.
• Uncertainty avoidance states that different countries will influence branches of a business in different ways as some countries have high adversity to uncertainty whereas other countries have much lower adversity to uncertainty.
• Masculinity and femininity state that decision-making approaches may differ between cultures and that masculinity focusses on rewards and discipline whereas femininity focusses instead on relationships and being caring.
• Organisational Structures

  As businesses grow, organisational structures can be used, and businesses can choose different types of organisational structure.
• • A functional structure exists when a business structures itself by the four main business functions of human resources, finance, marketing, and operations.
• A product structure exists when a business structures itself around the products or services it produces, so there will be staff from each function working in a team assigned to each business product.
• A matrix structure exists when a business structures itself around a matrix where each employee may report to two or more supervisors, for example where one supervisor has knowledge of a product or project and another supervisor has knowledge of a business function.
• A regional structure exists when a business structures itself around a region, so there will be staff from each function working in a team assigned to each region.
• When choosing the most appropriate organisational structure, a business must consider a range of different influences including the industry, the actions of competitors and the market conditions in which the business operates.
• The different types of organisational structure are: Product Structure, Matrix Structure, Functional Structure, and Regional Structure.
• Nodes


  • Left number is the node reference, used for information
  • Upper-right number is the earliest start time (EST) the next activity can begin based on the previous activity finishing
  • Lower-right number is the latest finish time (LFT) of the previous activity to not delay the overall project
• Arrows


  Straight arrows are used to show each individual activity within the overall project
• Organisational culture definition:

  The unwritten code that affects the attitudes and behaviour of staff, approaches to decision making and the leadership style of management.
• Problems changing the organisational culture (resistance):

  • change may challenge the existing assumptions of employees
  • they may resist these changes as they believe what they are doing is right
• Problems changing the organisational culture (time consuming):

  • changing culture means changing what people believe and question how they view the world, this can take a long time
• Problems changing the organisational culture (investment):

  • changing culture may involve extensive training and education, therefore heavy investment is required
• Problems changing the organisational culture (size):

  • the larger the organisation, the more difficult it will be to change culture