ORGANISATIONAL [CORPORATE]

CULTURE

Schein [1992] ‘The basic assumptions and beliefs that are
shared by members of an organisation, that operate
unconsciously and define in a basic taken for granted
fashion an organisation’s view of itself and it’s environment’

Smirch [1983] ‘..social or normative glue that holds an
organisation together’

Cooke and Pousseau [1988] ‘..the share beliefs and values
guiding the thinking and behavioural styles of members’

House etc al [1999] ‘..shared motives, values, beliefs,
identities and interpretations or meanings of significant
events….transmitted across age generations’

THE WAY WE DO THINGS AROUND HERE!!!

LEVELS OF CULTURE CULTURE TYPOLOGIES

Edgar Schein: Artifacts
Strong cultures should have clear patterns of values,
The visible and constructed physical
and social environment
norms, beliefs

Martin [1995]:

Integrated culture

Fragmented culture
Espoused Values
Philosophies, strategies and goals
espoused by organisations leaders

Differentiated culture

Very difficult to achieve in modern complex
organisations
Basic underlying
Tensions between different parts of organisation [Mintzberg]
assumptions
The actual shared values of the
Sub-cultures i.e. differential culture [Martin]
organisation (may not be visible and
may differ from above!)

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CULTURAL WEB
Paradigm of an organisation: collective,
taken for granted assumptions and beliefs
(Johnson, 2006)
Success; disasters; villains;
mavericks
-Legitimise types of
behaviour
-Devices for underlining
what is important
How people behave
towards each other, how
things should be done
- Emphasises what is
particularly important
e.g. ceremonies,
induction etc
Logos, offices, cars, titles, types of
language, privileges.
- Can pose problems if trying to change
strategies in hierarchical/deferential
THE IMPORTANCE OF CULTURE
systems
Culture: deep set beliefs in organisations which affect:

The way work is organised and authority exercised
Symbols

How people are rewarded/controlled
Where does power
Stories and Power actually lie?
How much planning is required? And how far ahead?
Myths structures

Relative obedience/initiative of subordinates
THE
Significance of dress/eccentricities
PARADIGM

Culture can be reflected in:
Rituals & Organisational
Kind of people employed
Routines structures
Career aspirations
Control Type of structure [links
Status in society
with power structure]
systems E.g. classical, flat
Level of education
What is most closely
controlled/monitored?
Emphasis on punishment/rewards
Barriers to new strategies

THE IMPORTANCE OF CULTURE HANDY’S CULTURE TYPES

Different cultures Power Culture

Look, feel different • Central power source, connected by functional

Require different people strings

Will appeal to different types of people • Based on trust, empathy

Different ways of working
• Few rules, procedures, little bureaucracy

Powerful ways of influencing behaviours

Different parts of organisations may have different cultures • Ability to move and react to threats
• A lot of faith in individuals

Strong pervasive cultures
• Judge by results; tolerant of means

Make organisations like cohesive tribes that are distinctly clannish

Reinforced by language, catch phrases, past heroes etc. Role Culture

Way of life enshrined in rituals; written procedures almost • Culture works by logic, rationality
unnecessary • Rests on strength of pillars: functions & specialities

Japanese and American firms have their company songs • Controlled by procedures and rules, and a

Culture is important, but does it matter what type? pediment of senior managers
• Position is the main source of power

Handy says, yes it does!

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HANDY’S CULTURE TYPES FACTORS INFLUENCING CULTURE
Task Culture
History
• Job or project oriented
• Much of power at intersections (eg: Matrix organisation) Primary
The
• Brings together the right resources & people at right Function &
Environment
level Technology
• Influence is widely spread and based more on expert
power than on position or personal power
Cultural
Person culture Management
Development Goals
& Staffing &
• The individual is the central focus and any structure Objectives
exists to serve the individuals within it
• Groups of individuals “doing their own thing”
•Not appropriate for many organisations
Size
Location

HISTORY AND OWNERSHIP TECHNOLOGY

Centralised ownership leads to power culture with more control of
resources (eg Family firms, founder dominated firms)

Diffused ownership leads to diffused influence of power

New organisations need to be aggressive and independent [power] or
Flexible, adaptable and sensitive [task] or often combination of the
two
SIZE

Often the single, most important variable

Large organisations tend to be more formalised, develop specialist
groups, need more systematic co-ordination

Larger size pushes organisation to role culture

Radical decentralisation may result in core organisation to develop a
different culture e.g.. web linking series of temples

Design of organisation needs to take account of nature of work/people
e.g.. changes to shift work can result in major cultural conflicts and
changes

Number of researchers have drawn wide-ranging conclusions, butIn
general: high technology, highly automated companies tend to push
towards role cultures
GOALS AND OBJECTIVES

Goals, objectives and resultant strategies influence culture: Profit? Risk
avoidance? CSR?

Quality of production goals; more easily monitored via ROLE

Growth goals more appropriate to POWER

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ENVIRONMENT

Including the economic environment, market, competitive scene,
Geographical/societal environment etc.

The environment is often taken for granted by people who work in
organisation but can be crucially important: if an organisation operates
in a dynamic environment, it requires a structure and culture that
reacts accordingly

Different nationalities prefer different organisational cultures

Environmental change requires sensitive culture e.g.. Task

Diversity in environment requires diverse structure e.g.. TASK

Standardisation > ROLE

Environmental threats/danger > POWER

E.g. mergers, nationalisation, economic disasters
COLLECTIVE PROGRAMMING:
Geert Hofstede [published 1980]

Four basic dimensions of differences between national
cultures

Power-distance: relates to levels of inequality within a
organisation

Uncertainty-avoidance: relates to the extent to which
members of an organisation feel threatened by unusual
situations

Individualism: The relative individualistic or
collectivist ethic of an organisation

Masculinity: Competitive and assertive vs caring &
concerned about the environment!
MANAGEMENT & STAFFING

Top executives can influence the overall culture, but all members of staff
shape the organisational culture

Cultural match = satisfied individual

Satisfied individual linked with higher productivity

High security needs = ROLE

Need to establish identity: POWER or TASK [could be seen disruptive in
Role]

Individual skills, impact in Power Task; hence care in selection
process/appraisals
LOCATION

Influences the type of people employed and the customers served

May limit the potential for development
POWER - DISTANCE

How close/distant subordinates feel to superiors (not a
physical distance)

HI: France, India

Being boss = power

A place for everyone and everyone in their place

Employees reluctant to express disagreement

LO: Austria, Israel

Superiors/subordinates consider each other colleagues

Believe inequalities should be minimised

Employees seldom afraid to disagree

Expect to be consulted before decisions made
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UNCERTAINTY - AVOIDANCE INDIVIDUALISM

Ease with which cultures cope with novelty
Focuses on the degree culture encourages

HI: Japan, Greece individual concerns

People need clarity and order and are threatened by uncertain
HI: (Individualistic)USA, UK
situations

Emphasis on personal initiative and achievement

Combated by hard work, career stability

Everyone has a right to private life and opinion

Employees believe company rules should not be broken

LO: Denmark, Hong Kong

LO: (Collectivist) Iran, Peru

The uncertainty inherent in life is accepted

Characterised by tighter social framework

A pragmatic approach to change
Extended families/clans; protection in exchange for

Employees expect to work for company for shorter period
loyalty

Emphasis is on belonging

MASCULINITY HOFSTEDE

HI: Australia, Italy
Dimensions:

Performance, money, ambition are important and key
These are not extremes but a continuum
drivers
Different countries are spread across the entire

Sex roles clearly defined spectrum

LO: Netherlands, Sweden
Country’s position based upon AVERAGE of
respondents from that country

Quality of life matters

Many individual variations

People/environment important

Sex roles more flexible

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HOFSTEDE: COUNTRY CLUSTERS

More developed Latin: Belgium, France, Spain, Brazil

Less developed Latin: Chile, Peru, Mexico, Portugal

More developed Asian: Japan

Less developed Asian: Pakistan, India, HK, Taiwan

Near eastern: Greece, Iran, Turkey

Germanic: Austria, Germany, Israel, Switzerland

Anglo: Australia, NZ, UK, USA

Nordic: Denmark, Sweden, Norway, Netherlands. Finland

Check more recent studies that relate to current situation!