UNIT 3.

1 ORGANISATIONAL CULTURE

Exercise 1. Before reading the texts below try to provide an answer to the following
questions’:

What is organisational culture?

Which are its constituent elements?
What types of organisational culture can you name? How can you identify it?
Do you agree or disagree that many companies don't motivate their staff? Why or why not?
Are staff really so necessary to a company's success? Why or why not?
What should companies, departments, and/or managers do to motivate employees?

Far too many companies get it the wrong way. Instead of motivating their employees with a
desire to strive towards success, they drain any enthusiasm that exists. The company
becomes rigid, unable to meet changes in the marketplace, filled with staff who does only
what is necessary, and filled with a heavy, oppressive atmosphere. Companies succeed
when employees get what they need and want, namely opportunities to contribute, a feeling
of achievement, and a sense of solidarity. In addition, other important factors include
managers who immediately provide both negative and positive feedback, ongoing training,
equity in all decisions and company endeavors, and a sense that teamwork is beneficial and
important. For any company moving in the wrong direction, it takes a monumental effort to
once again motivate employees. However, it can be done.

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Exercise 2. Read the following text and summarize it.
The culture of an organisation is its personality and character. Organisational culture is made up of
shared values, beliefs and assumptions about how people should behave and interact, how decisions
should be made and how work activities should be carried out. Key factors in an organisation’s culture
include its history and environment as well as the people who lead and work for it.
An understanding of organisational culture is essential for effective leadership. Leaders and managers
will be better placed to implement strategy and achieve their goals if they understand the culture of
their organisation.
Strategies that are inconsistent with organisational culture are likely to meet with resistance and will
be more difficult or even impossible to implement, while strategies that are in line with it will be
easier to put into effect and more likely to succeed. It is also important to understand the existing
culture of an organisation when thinking of introducing changes.
It is often difficult to specify what exactly drives a particular culture, but easier to observe its effects
– for example, the culture of an informal small software company may be quite different from that of
a large financial corporation and different again from that of a hospital or a university. It can take
years for new joiners to fully understand and absorb the culture, or this may happen relatively rapidly
– the extent to which the organisation has a successful ‘on-boarding’ approach will be important here.
However, in certain circumstances, an influx of new employees, especially at senior levels, can
modify the existing culture.
In practice it should also be recognised that while an organisation may have an ‘umbrella’ culture –
broadly defining how things should be done and what is acceptable – subsidiary cultures can emerge
based on work roles or other allegiances. Inevitably culture is experienced and interpreted
subjectively by individuals in the context of their own beliefs, and also their perspective on the
organisation - some facets may have more relevance for some people than others depending on their
roles.
To gain an understanding of the culture of an organisation, its written and unwritten rules should be
examined alongside the relationships, values and behaviours displayed by its people. This checklist
begins by outlining some well-known approaches proposed by management theorists to classify
organisational cultures. These suggest the dimensions you should look at when assessing expressions
of culture in a particular organisation.
Secondly, key steps to follow and questions to ask to help you gain this understanding are presented.

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Exercise 2. Fill in the gaps using the words provided in the box.

collective objectives attitudes values productivity beliefs decision making

psychological environment corporate culture community committed
performance change.

The 1. ______________ and behaviors that contribute to the unique social and 2. _______________
____________________ of an organization. Organizational culture includes an organization's
expectations, experiences, philosophy, and values that hold it together, and is expressed in its self-
image, inner workings, interactions with the outside world, and future expectations. It is based on
shared 3. _______________ , 4. _______________ customs, and written and unwritten rules that
have been developed over time and are considered valid. Also called 5._____________
____________, it's shown in:

(1) the ways the organization conducts its business, treats its employees, customers, and the
6. ________________________,
(2) the extent to which freedom is allowed in 7. _________________, developing new ideas, and
personal expression,
(3) how power and information flow through its hierarchy, and
(4) how 8. ___________________ employees are towards 9. _______________ ________________.

It affects the organization's 10. ____________________ and 11. __________________, and provides
guidelines on customer care and service, product quality and safety, attendance and punctuality, and
concern for the environment.

It also extends to production-methods, marketing and advertising practices, and to new product
creation. Organizational culture is unique for every organization and one of the hardest things to
12._____________________

Exercise 4. Read the following text and identify organisational culture constituent elements
» DEFINITION
Organisational culture is the way that things are done in an organisation, the unwritten rules that
influence individual and group behaviour and attitudes. Factors which can influence organisational
culture include: the organisation's structure, the system and processes by which work is carried out,

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the behaviour and attitudes of employees, the organisation’s values and traditions, and the
management and leadership styles adopted.
A number of management thinkers have studied organisational culture and attempted to classify
different types of culture. The following approaches may be helpful in assessing and understanding
the culture of an organisation, but also illustrate its inherent complexity. Observers should recognise
that an organisation’s culture can be viewed from multiple angles, and that its characteristics can be
reflected in a number of overlapping dimensions.
Edgar Schein believed that culture is the most difficult organisational attribute to change and that it
can outlast products, services, founders and leaders. Schein’s model looks at culture from the
standpoint of the observer and describes organisational culture at three levels:
› Artefacts - organisational attributes that can be seen, felt and heard by the uninitiated observer,
including the facilities, offices, décor, furnishings, dress, and how people visibly interact with others
and with organisational outsiders
› Espoused values - the professed culture of an organisation's members. Company slogans, mission
statements and other operational creeds are useful examples
› Basic underlying assumptions - which are unseen and not consciously identified in everyday
interactions between organisational members. Even people with the experience to understand this
deepest level of organisational culture can become accustomed to its attributes, reinforcing the
invisibility of its existence.
Gerry Johnson and Kevan Scholes developed the Cultural Web in 1992. It is a representation of the
takenfor-granted assumptions of an organisation which helps management to focus on the key factors
of culture and their impact on strategic issues. This can identify blockages to and facilitators of change
in order to improve performance and competitive advantage.
The Cultural Web contains six inter-related elements:
› Stories - the past and present events and people talked about inside and outside the company
› Rituals and routines - the daily behaviour and actions of people that signal acceptable behaviour
› Symbols - the visual representations of the company including logos, office decor and formal or
informal dress codes
› Organisational structure - includes structures defined by the organisation chart, and the unwritten
lines of power and influence that indicate whose contributions are most valued
› Control systems - the ways that the organisation is controlled including financial systems, quality
systems, and rewards
› Power structures - Power in the company may lie, for example, with one or two executives, with a
group of executives or a department, or it may be more evenly distributed in a ‘flat’ organizational

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structure. These people have the greatest amount of influence on decisions, operations, and strategic
direction.

Exercise 5. Extract the cultural dimensions according to Geert Hofstede.

Geert Hofstede is well-known for his work exploring the national and regional cultural
influences which affect the behaviour of organisations. He also collaborated with Bob Waisfisz to
develop an Organisational Culture Model, based on empirical research and featuring six dimensions.
These are:
› Means oriented vs goal oriented - the extent to which goals (the ‘what’) or the means (the ‘how) of
conducting work tasks are prioritized. This may affect attitudes to taking risks or contributing
discretionary effort
› Internally driven vs externally driven - externally driven cultures will be more pragmatic, focusing
primarily on meeting the customer’s requirements, while internally driven cultures may exhibit
stronger values
› Easygoing vs strict - stricter cultures run on a high level of discipline and control, while easygoing
cultures tend towards more improvisation
› Local vs professional - the extent to which people identify with their immediate colleagues and
conform to the norms of this environment, or associate themselves with a wider group of people and
practices based on their role
› Open system vs closed system – the extent to which newcomers are accepted and the differences
they bring are welcomed
› Employee-oriented vs work-oriented – the extent to which the employee’s well-being is prioritized
at the expense of the task, or vice versa.

Exercise 6. Which are the characteristics of the types of culture identified by Charles Handy?
Charles Handy links organisational structure to organisational culture. Handy describes:
› Power Culture - power is concentrated among a few with control and communications emanating
from the centre. Power cultures have few rules and little bureaucracy; decision making can be swift
› Role Culture - authority is clearly delegated within a highly defined structure. Such organisations
typically form hierarchical bureaucracies where power derives from a person's position and little
opportunity exists for expert power
› Task Culture - teams are formed to solve particular problems with power deriving from expertise

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› Person Culture - here, all individuals believe themselves superior to the organisation. As the concept
of an organisation suggests that a group of like-minded individuals pursues common organizational
goals, survival can become difficult for this type of organisation. However, looser networks or
contractual relationships may thrive with this culture.

There are 6 aspects of culture that people look for in a great place to work: purpose, opportunity,
success, appreciation, well-being, and leadership. These key areas were identified based on extensive
research of over 10,000 companies, derived from an employee’s view point of culture.
1. Purpose means connecting employees to your organization’s reason for being or the
difference you make in the world.
2. Opportunity means providing employees the ability to learn new skills, develop, and
contribute.
3. Success means giving employees the opportunity to innovate, do meaningful work, and be on
winning teams.
4. Appreciation means acknowledging and recognizing employees’ outstanding work and
unique contributions.
5. Well-being means paying attention to and constantly working to improve employees’
physical, social, emotional, and financial health.
6. Leadership means connecting employees to purpose, empowering them to do great work,
and creating a sense of camaraderie.

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Additional information
A great way to describe business or corporate culture is:
"The way we do things around here"
Culture consists of factors such as:
 The shared values of a business
 The beliefs and norms that affect every aspect of work life
 The behaviours typical of day-to-day behaviour
 The strength of a culture determines how difficult or easy it is to know how to behave in the
business
The culture of a business is reflected in many ways – including the following:
 How employees are recruited – the cultural factors that make one applicant more suitable than
another
 The way that visitors and guests are looked after
 How the working space is organised
 The degree of delegation & individual responsibility
 How long new employees stay in a business
 How contracts are negotiated and agreed
 The personality and style of the sales force
 The responsiveness of communication
 The methods used for communication
 How staff call each other (e.g. first name)
 The nature and style of marketing materials
 The speed with which decisions are taken
 The number of layers in the management hierarchy
Strong v Weak Culture
When you visit a range of businesses you soon get a sense of the strength of the business culture. If
a culture can be measured as then how might this show itself?
Signs of a strong organisational culture include:
 Staff understand and respond to culture
 Little need for policies and procedures
 Consistent behaviour
 Culture is embedded
Evidence that points to a weak organisational culture include:
 Little alignment with business values
 Inconsistent behaviour
 A need for extensive bureaucracy & procedures

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Using the information provided above analyse the companies and discuss their
organizational culture.

Profile #1: AUTO PARTS DISTRIBUTOR

Corporate statement: It is the mission of our company to provide personal vehicle owners and
enthusiasts with vehicle-related products and knowledge.

Additional Company Information: People at this company tend to remain in jobs for a long period of
time; there is low turnover. Because of this, the diversity of the company does not reflect that of its
community, which is changing rapidly. The company makes it a priority to invest in employee
professional development; loyalty is expected in return. Policies related to things such as work hours
and dress codes are traditional.

Profile #2: ONLINE NETWORKING COMPANY

Corporate statement: We give everyone the power to build communities around their own interests.

Additional Company Information: This up-and-coming company has a young and diverse
demographic. Workers are fiercely committed to the company’s mission and values, and it shows in
the work ethics demonstrated. It is not unusual for workers here to log 80-hour workweeks.
Employees work hard, but they are rewarded in many tangible and intangible ways. The culture is
casual yet competitive, and the hours, although long, are flexible.

Profile #3: FINANCE GIANT

Corporate statement: Our goal is to be the most esteemed financial services firm in the world.

Additional Company Information: This well-established company has many lifelong employees.
However, due to shifts in the marketplace and in the importance of new technologies, there is a recent
upsurge in younger workers. This is beginning to change and challenge some traditional company
practices. Leadership is grappling with swift market changes. This is a company in transition that
prides itself on professionalism and being respected above all else.

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Profile #4: AGRIBUSINESS

Corporate statements: We are a company of people who produce food, seek truth, and demonstrate
integrity.

Additional Company Information: This agribusiness is involved in a variety of food production. The
company highly values workers with impeccable integrity. The company welcomes constructive
criticism and offers employees a variety of ways to suggest changes and best practices. Company
leadership does not believe in “top-down” change. Rather, they rely on their employees, customers,
and other stakeholders to help them define future goals and initiatives. Company leadership prioritizes
work-life balance for all employees.

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 » ACTION CHECKLIST
A broad initial impression of an organisation’s culture can be gained by:
1. Reading:
› the organisation’s vision, mission and value statements, as well as documents setting out the its
strategy and objectives
› publications, reports and newsletters. Reflect on what is mentioned, emphasised or omitted and
how the organisation presents itself
› the organisation’s website and intranet, including its presence, (or lack of presence) on social
media platforms.
2. Reviewing the organisation’s context and environment
› How might the organisation’s sector (public/ private/ not-for-profit) affect its culture?
› Does the industry have particular characteristics which could affect the way that people think and
behave?
› What does the organisation’s formal structure look like?
› What does the whole ‘system’ look like - what kinds of processes are in place for getting things
done?
3. Talking to people who work for the organisation
› What are their impressions of the organisation and which words would they use to describe it
(e.g.professional, experienced, friendly, stable, secure)?
› What kinds of behaviours are expected of employees, and which are actually exhibited?
› Are the messages they get about culture consistent across all levels and units within the
organization?
› Are vision, mission and objectives shared and owned by every employee, or only by members of
dominant groups?
› To what extent is information on financial performance shared with employees?
› What is their view of senior management?
› Are they happy working for the organisation, or what exactly might prompt them to leave?
4. Making physical observations
› Do the furnishings and décor make a particular statement?
› How formal or informal are the offices and working environment?

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› Do people dress for work - formally or informally?
› Do people dress differently depending on their position within the organisation?
› How do people dress for special appointments and meetings?
5. Assessing communication styles
› How do employees usually communicate with one another (face-to-face, phone, email)?
› How do people at different levels in the organization address one another?
› Are new ideas communicated only from the top down, or do they also filter up from the bottom?
› How much communication takes place through informal as opposed to formal channels?
› How are organisational decisions communicated to employees?
› Is performance feedback given regularly?
› How accessible or approachable are senior managers and directors?
› Do employees feel free to express controversial views openly?
6. Looking at the nature of decision making and the impact on stakeholders
› What processes are in place for decision making at strategic and operational levels?
› How are decisions actually made? To what extent are employees consulted or involved in decision
making? To what extent are managers empowered to take decisions in their own areas
responsibility?
› How are HR policies such as reward and recognition formulated and put into practice?
› What level of priority and attention is given to customer service and how are customer queries and
complaints handled?
› How is the balance between customer and business benefits handled when designing products?
› How effectively are statutory regulations being applied?
7. Considering timekeeping
› To what extent is flexible working accepted and supported?
› What time do people come to work and do they arrive punctually?
› Are coffee or tea breaks taken? Do they become extended breaks?
› Do people work their set hours only or do they stay late?
› Are employees under pressure to work long hours?

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8. Analysing groups and networks
› Do people appear to prefer working in groups or individually?
› Is team work actively promoted?
› Do people gather together at lunch?
› Do people socialise at work and/or outside the workplace?
› Do sub-networks with their own cultures exist within departments or within professional groups?
› Are people encouraged to work outside of their department or silos?
› Are there any cross-functional projects or teams?
› What happens when mistakes are made? Do employees fear blame and recriminations from
managers or other team members if they make mistakes or are these regarded as opportunities for
learning and development?
9. Looking at how meetings are conducted
› How much time do managers spend in meetings?
› Are meetings handled in a quick and efficient or are they lengthy and bureaucratic?
› Who speaks at meetings? Does everyone participate?
› Are people encouraged to share ideas?
› What do people say if they arrive late for a meeting?
10. Consider organisational boundaries
› What types of positions do women and members of minority groups hold in the organisation?
› Is saving face important to people?
› Is there a sense of stability, or a feeling of insecurity arising from constant, unexpected changes?
› Is there a shared language of jargon and acronyms?
› What induction processes are in place for new employees?
» POTENTIAL PITFALLS
Managers should avoid:
› assuming that an organisation’s culture can be fully understood through superficial observation
› believing that the values expressed, for example, in mission statements necessarily reflect the
values actually practised by the organisation.

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Teacher Resource #2: Questions to Ask a Prospective Employer

What is the company’s practice regarding the training and professional

development of its employees?

Where do you see the company in five years, and how would the person in this role contribute to
this vision?

What is your company’s view on work-life balance?

How would you describe the work environment? Is it fast-paced? Formal? Competitive?
Collaborative?

What opportunities exist for employee growth within the company?

Beyond the hard skills, what do you think are the most important qualities for someone to excel in
this role?

How would you describe the culture of the company?

What do you like best about working for this company?

How would you score the company on living up to its core values? What's the one thing you're
working to improve?
https://www.youtube.com/watch?v=PA54HWLZ2e4
• What do we learn about the food / health at Google?
• What do Google get in return for treating their employees so well?
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• Would you like to work for a company like this? Why / Why not?
• What problems might happen with this set up at Google?

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