Notes by Mr.

Mujeeb Khan 0333-9471388

Ch. 13. Organizational Structure
1.

INTERNAL ENVIRONMENT AND ORGANISATIONAL

CULTURE

Organisational culture is the system of shared beliefs and values that develops within
an organisation and guides the behaviour of its members
What strong cultures do

A strong culture commits members to do things for and with one another that are in
the best interests of the organisation, and then reinforces these habits.
o

The best organisations have strong cultures that are performance-oriented, emphasise
teamwork, allow for risk taking, encourage innovation, and make the well being of
people a top management priority.
Levels of organisational culture

observable culture and core culture.

o

Observable culture is what one sees and hears when walking around an organisation
as a visitor, a customer or an employee. Elements of the observable culture in
organisations are: 1.

Stories: oral histories and tales, told and retold among members, about dramatic sagas
and incidents in the life of the organisation. 2.

Heroes: the people singled out for special attention and whose accomplishments are
recognised with praise and admiration among members. 3.

Rites and rituals: the ceremonies and meetings

—
planned and spontaneous
—
that celebrate important occasions and performance accomplishments. 4.

Symbols: the special use of language and other non-verbal expressions to

communicate important themes of organisational life.
o

Core culture consists of the core values or underlying assumptions and beliefs that
influence behaviour and actually give rise to the aspects of observable culture.

Values are essential to strong culture organisations, and are often widely publicised in
formal statements of corporate mission and purpose.
Leadership and organisational culture

Leadership of the organisational culture involves establishing and maintaining

appropriate core values.
o

This responsibility exists at the top level of the organisation, as well as for any
manager or team leader at any level of responsibility.
o

Criteria for evaluating core values: 1.

Relevance
—
core values should support key performance objectives. Chapter 13: Organizational
Culture

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Notes by Mr. Mujeeb Khan 0333-9471388

2.

Pervasiveness
—
core values should be known by all members of the organisation or group. 3.

Strength
—
core values should be accepted by everyone involved.
o

Symbolic leaders use symbols well to establish and maintain a desired organisational
culture.
o

Good symbolic managers do the following:



They use language metaphors, positive examples from another context, to reinforce
and communicate a desired culture.


They highlight the observable culture by telling key stories, such as the founding story
or stories about heroes, over and over, and encourage others to tell them.


They use rites and rituals to glorify the performance of the organisation and its
members.

2.

DIVERSITY AND MULTICULTURAL ORGANISATIONS

Diversity describes differences among people at work, including race, gender, and
age, personal, educational, and organisational backgrounds, among other dimensions.


How diversity is handled in the workplace

—
respect and inclusion or disrespect and exclusion
—
reflect the
organisation’s culture.

Diversity is a potential source of competitive advantage, offering an organisation a

mixture of talents and perspectives for dealing with the uncertainties and complexities
of the 21st century business environment.
What is a multicultural organisation?

Multiculturalism refers to pluralism and respect for diversity in the workplace.



Characteristics of a multicultural organisation:

1.

Pluralism
—
members of both minority cultures and majority cultures are influential in setting key
values and policies.
2.

Structural integration
—
minority culture members are well represented in jobs at all levels and in all
functional responsibilities.
3.

Informal network integration

—
various forms of mentoring and support groups assist in the career development of
minority-culture members.
4.

Absence of prejudice and discrimination

—
a variety of training and task force activities continually address the need to eliminate
culture-group bias.
5.

Minimum intergroup conflict

—
diversity does not lead to destructive conflicts between members of majority cultures
and minority cultures.
Organisational subcultures

Organisations contain subcultures, which are the cultures common to groups of people
with similar values and beliefs based upon shared work responsibilities and/or
personal characteristics.


Common subcultures found in organisations include the following: Chapter 13:

Organizational Culture

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Notes by Mr. Mujeeb Khan 0333-9471388



Occupational subcultures have ‘salaried professionals’ such as lawyers,

scientists, engineers and accountants. These professionals have needs for work
autonomy that may conflict with traditional top-down management practices.
Managers must recognise and respond appropriately to these needs, or these
professionals may be difficult to integrate into the culture


Functional subcultures embody people who develop strong identities with

their work groups and specific areas of task responsibilities, such as ‘systems people’
or ‘marketing people’ or ‘manufacturing people’ or ‘finance people.’
This results in tendencies to separate in-group people from the rest of the
organisation, to use jargon, and to compete with other people from other subsystems.


Ethnic or national cultures will be addressed in chapter 5 on the global dimensions of

management. The impact of ethnic subcultures in organisations can be addressed by
promoting understanding through direct contact, personal commitment, and a genuine
openness to people with different ethnic backgrounds.


In generational subcultures, ‘generational gaps’ exist between people who

grew up and are growing up during different periods of history, and whose values
have thus evolved under different influences. These differences in values affect
perceptions of and interpersonal relationships among the generations.


Gender subcultures reflect differences in the values and beliefs of women and men.
When men work together, a male group culture forms, which typically
has a competitive atmosphere and relies on ‘sports’ metaphors. When women
work together, a female group culture forms, which typically involves more personal
relationships with an emphasis on collaboration. When gender subcultures mix in an
organisation, conflict may result because the dominant subculture will likely attempt
to impose its values.
Challenges faced by minority groups and women

Minority members of organisations face special economic and work challenges.



The daily work challenges faced by minority groups or populations in organisations

can range from having to deal with misunderstandings and lack of sensitivity on the
one hand to suffering harassment and discrimination active or subtle, on the other.


The challenges imposed by glass ceilings in organisations traditionally dominated by

a majority culture. Sexual harassment or pay discrimination may occur, or a glass
ceiling may result from this situation. Minority groups may adapt by exhibiting
biculturalism
—
which involves minority groups displaying characteristics of the majority culture that
seem necessary for success in an organisation.
3.

MANAGING DIVERSITY

Managing diversity is the process of comprehensively developing a work environment

that is for everyone.


Managing diversity can be a source of competitive advantage by creating an

environment that enables all people to reach their full potential in the pursuit of
organisational objectives Chapter 13: Organizational Culture
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Notes by Mr. Mujeeb Khan 0333-9471388



Three approaches to exercising diversity leadership. These approaches are:

1.

Affirmative action in which leadership commits the organisation to hiring and

advancing minorities and women.
2.

Valuing differences in which leadership commits the organisation to education and

training programs that help people to better understand and respect individual
differences.
3.

Managing diversity in which leadership commits to changing the organisational

culture to empower and include all people.


A diverse workforce is a strategic asset when it is aligned with the needs and
expectations of a diverse customer and supplier base.


Nine questions by which managers can assess the extent to which they are diversity
mature. These questions are: 1.

Do you accept personal responsibility for improving your performance? 2.

D
o you accept personal responsibility for improving your organisation’s
performance? 3.

Do you understand yourself and your organisation? 4.

Do you understand important diversity concepts? 5.

Do you make decisions involving differences based on ability to meet job

requirements? 6.

Do you understand that diversity is complex and accompanied by tensions? 7.

Are you able to cope with tensions when dealing with diversity? 8.

Are you willing to challenge the way things are? 9.

Are you willing to learn continuously?