Professional Documents
Culture Documents
The Hawthorne investigations had been started in Chicago by engineers of the Western
Electric Company’s Hawthorne plant. In 1927, the Department of Industrial Research of
Harvard University – Mayo's research group - were called in. Their enquiry started in the
Relay Assembly Test Room where over a five-year period a wide range of changes were
made in the working conditions of a specially segregated group of six women whose job was
to assemble telephone relays.
Changes involving incentive schemes, rest pauses, hours of work and refreshments were
made, but it was found that whatever changes were made – including a return to original
conditions – output rose.
The explanation which was later to emerge has been labelled ‘the Hawthorne effect’.. It was
thought that the close interest shown in the workers by the investigators, the effective pattern
of communication which developed and the emerging high social cohesion within the group
brought together the needs of the group for rewarding interaction and co-operation with the
output needs of the management. This type of explanation was also encouraged by the other
stages of the investigation. The employee interviewing programme was seen as showing that
many of the problems of management– worker relationships could be put down to the failure
to recognise the emotions and the ‘sentiments’ of the employees, and the study in the Bank
Wiring Observation Room was taken to show the part played by informal social group
pressures in worker restriction of output. The workgroup informally set their own ‘output
norm’ and subsequently found ways of punishing any member who performed at either a
higher rate or a lower rate than the norm.
At the deepest level, below our awareness, lie basic assumptions. These assumptions are
taken for granted and reflect beliefs about human nature and reality. At the second
level, values exist. Values are shared principles, standards, and goals. Finally, at the surface,
we have artifacts, or visible, tangible aspects of organizational culture. For example, in an
organization, a basic assumption employees and managers share might be that happy
employees benefit their organizations. This might be translated into values such as
egalitarianism, high-quality relationships, and having fun. The artifacts reflecting such
values might be an executive “open door” policy, an office layout that includes open spaces
and gathering areas equipped with pool tables, and frequent company picnics.
Founder values become part of the corporate culture to the degree to which they help the
company be successful. For example, the social activism of Ben and Jerry’s was instilled in
the company because the founders strongly believed in these issues. However, these values
probably would not be surviving 3 decades later if they had not helped the company in its
initial stages. In the case of Ben and Jerry’s, these values helped distinguish their brand from
larger corporate brands and attracted a loyal customer base. Thus, by providing a
competitive advantage, these values were retained as part of the corporate culture and were
taught to new members as the right way to do business.
While founders undoubtedly exert a powerful influence over corporate cultures, the industry
characteristics also play a role. Companies within the same industry can sometimes have
widely differing cultures. At the same time, the industry characteristics and demands act as a
force to create similarities among organizational cultures. For example, despite some
differences, many companies in the insurance and banking industries are stable and rule-
oriented, many companies in the high-tech industry have innovative cultures, and those in
nonprofit industry may be people-oriented. If the industry is one with a large number of
regulatory requirements—for example, banking, health care, and high-reliability (such as
nuclear power plant) industries—then we might expect the presence of a large number of
rules and regulations, a bureaucratic company structure, and a stable culture. The industry
influence over culture is also important to know because this shows that it may not be
possible to imitate the culture of a company in a different industry, even though it may seem
admirable to outsiders.
Example of Elizabeth Holmes and Theranos. Video – 7 mins.
Dimensions of organisational culture
What type of organisations would you associate with each type of culture?
Organisational cultures can be discerned by assessing what is important or emphasised within
each organisation.
How do you identify organisational culture?
• Mission statements
• Rituals
• Rules and policies
• Physical layout
• Stories and language
Note – organisational cultures, and efforts to change and shape them, implicitly mirror some
of the early approaches that we covered last week.
culture:
• artefacts, such as the tools, documents, building layouts, logos, badges and
furnishing;
• jargon, the linguistic terms that are peculiar to that organisational setting;
• stories about how people have acted within the organisation, and with what effect;
• jokes and humour generally;
• legends about events that might or might not actually have happened but that have a
sense of wonder about them and which point to activities that organisational members
are encouraged to admire or deplore;
• myths about events that are unlikely ever to have happened but which illustrate some
important ‘truth’ about the organisation;
• sagas about the organisation’s history and how it has become ‘what it is’;
• heroes and villains that people speak of – inspirational figures that organisational
members are encouraged to emulate and ‘bad people’ illustrating types of behaviour
to be avoided;
• norms of behaviour, regularly occurring pieces of behaviour that become accepted as
‘the way things are done’ in the organisation;
• rituals, patterns of behaviour that regularly occur in particular circumstances and at
particular times in an organisation;
• rites, more formalised rituals that tend to be pre-planned and organised; and
• actions leading to rewards or punishments, behaviours that lead to positive or
negative sanctions because they accord with or clash with cultural values.
Physical layout: Open plan offices
Open plan offices – 70% of modern office workspaces.
Not so much about their functionality – we know that they're not helpful. More about what
they stand for. They symbolise a certain type of organisational culture, and are viewed as a
shorthand way to get to it.
BUT – do organisations have a single culture?
• Recent human relations and organisational research has critiqued an 'integrative' view
of organisational cultures.
• In order to discuss cultures and subcultures we must determine the specific entity that
we are discussing – a multinational corporation? A national branch? A department? A
specific project team?
• We can then talk about organisational subcultures...
This is arguably a response to the top-down approach that a lot of organisations take to
cultivating a culture.
Remember, despite the amount of scrutiny on them, the women in the Hawthorn studies still
developed their own, internal culture – they dictated how much and how little work they
should do.
Why do you think it is difficult to prevent organisational subcultures from forming?
Because people have lives outside of their jobs!!!
This view of organisations as a negotiated order also helps us to tease out the tension
between organisations and the people who work for them.
• Organisations are best understood not as pre-given structures into which people are
slotted, but as the outcome of the interactive patterns of human activity.
• In summary, organisations are a negotiated order.
• Such a view focuses on processes, rather than systems or things.
Organisational structures = outcome of processes through which official and unofficial ways
of doing things are established, and the interaction between them.
It is important to note that official and unofficial ways of doing things/structures are not
necessarily opposed to each other!
"The structure of any organisation, seen in this way, will partly be the outcome of the efforts
of managers and other organisational designers to structure tasks, activities and establish a
controlling hierarchy of command. And it will partly be an outcome of the efforts of
members of the organisation to find their own way of doing things, to establish their own
coalitions of interest and, to some extent, to develop their own power hierarchies. Those
involved in particularly strategic roles are especially likely to shape the organisation to fit
with their own life projects."
(Watson 2016, Sociology, Work and Organisation, p. 134).
So ultimately we have official and unofficial structures – and the interaction with them and
between them is the way in which order is negotiated.
While unofficial structures can compete with official structures in a way that is negative for
the latter, they can also interact with them in a way that is useful to the official structures. In
a way that allows individuals to do their jobs and navigate inefficiencies and dysfunctional
parts of the official system.
A study of two government agencies by Blau (1963) revealed what he called the dynamics of
bureaucracy through observing the various ways in which employees avoid what could
become ‘dysfunctional’ aspects of official procedures. ‘Procedural adjustments’ constitute
one form of adaptation in which the officials, when faced with alternative courses of action
choose the one more congenial to themselves, typically justifying this choice as the one more
in the interests of successful organisational performance. Law enforcement agents, for
instance, justified their preference not to obey the rule of officially reporting bribes which
were offered to them on the grounds that keeping the offer to themselves gave them a
psychological advantage over the offender which would help them complete their
investigations. Another tactic is to redefine a rule or procedure in a way which ‘deliberately
sacrifices the original objective of a procedure in order to achieve another organisational
objective more effectively’ as in the case of the employment agents who more or less
abandoned counselling clients in order to concentrate on getting them speedily placed in
jobs. In reaction to this type of unofficial activity, Blau observes, managerial attempts are
made to elaborate or ‘amplify’ procedures. These, in turn, lead to further unofficial
adjustments. Here we see an ongoing dialectical relationship between the official and the
unofficial aspects of the organisation. In the end, all this helps the functioning of the
organisation through accommodating the interests and preferences of employees to the wider
purposes of those in charge of the organisation.
But if structures are negotiated orders, then why are so many organisations so similar,
at least in their structure?
Approaches to HRM
Instrumental (Hard)
Stresses the rational, quantitative and strategic aspects. Performance improvement and
competitive advantage are highlighted.
Humanistic (Soft)
Emphasises the integration of HR policies and practices with strategic business
objectives but also acknowledges employee development, collaboration, participation
and trust.
Which approach are you most comfortable with? Why?
HR manager then, should be not just a people person but also someone who understands the
entire system and processes to drive value.
Differences between HRM and IR/ER
HRM scholars tend to focus…
• Within the organisation
• On what is of benefit to the organisation
• On relationships between individual managers and employees
• On prescription about how to do things
• Psychological and financial aspects of the employment relationship
IR/ER scholars tend to focus…
• On the organisation in context
• On what happens to a range of stakeholders
• On collective relationships between management and employee representatives
• On description about how things actually happen
• Political and legal aspects of employment relationship
Table 1.7 Common Themes of Employee Engagement
2. What are some mega-trends in contemporary society that influences the HRM
practices?
HRM Challenges
HR managers need to:
- be strategic contributors;
- show the true value of the HR function to the organisation;
- be the employees’ voice; and
- demonstrate professional competence.
COVID19 Pandemic
Sourcing the human resources?
Sustainable Challenges
Positive working environment and organisational culture
- Foster individual employee sustainability?
- Develop HRM systems to motivate employees?
- Work-life balance?