Slide 15.

FACULTY OF BUSINESS, ACCOUNTING & MANAGEMENT

MANAGING ORGANISATION
MGT3553

Mullins, Management and Organisational Behaviour, 11e © Pearson Education Limited 2016
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Chapter 15
Organisational culture
and change

Mullins, Management and Organisational Behaviour, 11e © Pearson Education Limited 2016
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Organisational culture
‘In its broadest sense, our understanding of
workplace culture is that it embodies the ethos and
values of a particular organisation, which are
expressed through the way it operates and the
practices it undertakes. If the latter are deemed to
be wrong, then the former needs to be addressed in
order for any issues to be resolved effectively.
Anything else would be superficial change and
unlikely to have a lasting impact’.

Johnson

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Organisational culture
and change

Figure 15.1 Organisational culture and change

Source: Senior, B. and Swailes, S. Organisational Change, fourth edition, Financial Times Prentice Hall (2010), p. 61.

Mullins, Management and Organisational Behaviour, 11e © Pearson Education Limited 2016
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Levels of culture: Schein

From the shallowest to the deepest, levels of culture
are manifested through:
1. Artefacts: physical space and layout, technological
output, written and spoken language and overt
behaviour of group members.
2. Espoused values: beliefs which become part of the
conceptual process by which groups members justify
actions and behaviour.
3. Basic underlying assumptions: unconsciously held
learned responses.

Mullins, Management and Organisational Behaviour, 11e © Pearson Education Limited 2016
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Levels of culture: Schein

Figure 15.2 Schein’s levels of culture

Source: Rollinson, D. Organisational Behaviour and Analysis: An Integrated Approach, fourth edition, Financial Times Prentice Hall (2008), p. 592

Mullins, Management and Organisational Behaviour, 11e © Pearson Education Limited 2016
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Types of organisational
culture: Handy

• Power culture
– Centralised control
• Role culture
– Bureaucratic control
• Task culture
– Project and team orientation
• Person culture
– Individual focus
Mullins, Management and Organisational Behaviour, 11e © Pearson Education Limited 2016
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Types of organisational culture:

Deal and Kennedy

• Tough-guy, macho culture

– High risk, quick feedback
• Work-hard/play-hard culture
– Low risk, quick feedback
• Bet-your-company culture
– High risk, slow feedback
• Process culture
– Low risk, slow feedback
Mullins, Management and Organisational Behaviour, 11e © Pearson Education Limited 2016
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Influences on the development

of culture

• History
• Primary function and technology
• Strategy
• Size
• Location
• Management and leadership
• The environment

Mullins, Management and Organisational Behaviour, 11e © Pearson Education Limited 2016
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The cultural web

Figure 15.3 The cultural web

Source: Johnson, G., Whittington, R., Scholes, K., Angwin D., and Regnér, P. Exploring Strategy, tenth edition, Pearson Education (2014), p. 156

Mullins, Management and Organisational Behaviour, 11e © Pearson Education Limited 2016
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Culture and organisational control

ACAS distinguishes two different forms of
culture:
• Control culture
– emphasis on rules, procedures, control and
compliance.
• Quality of working life culture
– emphasis on core values, mission statements
to provide guidance and commitment via
shared goals, values and traditions.

Mullins, Management and Organisational Behaviour, 11e © Pearson Education Limited 2016
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The importance of culture

The pervasive nature of culture will have a
significant effect on organisation processes such
as:
– Decision-making
– Design of structure
– Group behaviour
– Work organisation
– Motivation
– Job satisfaction
– Management control
Mullins, Management and Organisational Behaviour, 11e © Pearson Education Limited 2016
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National and
international culture
National differences and cultural reasons raise concerns
about the transferability of organisational ‘best practice’ across
national boundaries.

‘Although the outward signs of work (dress, technology etc.)

might be increasingly similar regardless of the country of
origin, there are many ways in which people can be offended,
and business propositions damaged, if there is not an
understanding of the culture of the country in which the
activities are being conducted.’

CIPD
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A generic model of cultural

categorisation: Lewis

• Linear-active people
– tend to be task oriented, highly organised, prefer doing one
thing at a time, adhere to logic, have faith in rules and
honour written contracts.
• Multi-active people
– tend to be emotional, loquacious and impulsive and attach
great importance to family and relationships, have limited
respect for authority, often procrastinate and are flexible.
• Reactive people
– rarely initiate action or discussion but listen and show
respect, are introverts and adept at non-verbal
communication.
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Cultural categorisation

Figure 15.4 Cultural categorisation

Source: Lewis, R.D. The Cultural Imperative: Global Trends in the 21st Century, © 2003 Richard Lewis. Reproduced by permission of Nicholas Brealey Publishing.

Mullins, Management and Organisational Behaviour, 11e © Pearson Education Limited 2016
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Organisational climate
• Applied to organisations, climate refers to:
– the prevailing atmosphere surrounding the
organisation;
– the level of morale;
– the strength of feelings or belonging, care and
goodwill among members;
– an indication of the employees’ feelings and
beliefs of what the organisation is about.

Mullins, Management and Organisational Behaviour, 11e © Pearson Education Limited 2016
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Six dimensions of climate:

Atkinson and Frechette
• Clarity
– Understanding of the organisation’s goals and policies as well as the
requirements of their job.
• Commitment
– Continuing dedication to a common purpose.
• Standards
– Emphasis management places on high performance standards.
• Responsibility
– Degree to which people feel responsible for their work.
• Recognition
– Feeling of being recognised and rewarded for good work; performance
feedback.
• Teamwork
– Sense of organisational cohesion, mutual support, trust and pride.
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Organisational change
• Change is a pervasive influence. It is an
inescapable part of both social and
organisational life.
• Organisational change can:
– deliberately be initiated by management;
– evolve slowly over time;
– be imposed by changes in policy;
– result from environmental pressures.

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Forces of change
• Uncertain economic • Increased demand for
conditions high-quality goods,
• Globalisation and services and customer
competition satisfaction
• Government intervention • Flexibility in work
• EU influences and social organisation
legislation • Changing nature of the
• Political interests workforce
• Scarcity of natural • Internal organisational
resources conflict
• Technological development

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Planned organisational
change: Lewin
Lewin identifies a three-phase process of
behaviour modification to achieve organisational
change:
– Unfreezing; reducing forces which maintain
behaviour
– Movement; development of new attitudes or
behaviour
– Refreezing; stabilising change at the new level

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Stages in a planned-change effort

Figure 15.7 Stages in a planned-change effort

Source: based on French, W. L., Kast, F. E. and Rosenzweig, J. E. Understanding Human Behavior in Organisations, Harper and Row (1985), p. 9.

Mullins, Management and Organisational Behaviour, 11e © Pearson Education Limited 2016
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Resistance to change: individual

Individual resistance can arise from:
– Selective perception
– Habit
– Inconvenience or loss of freedom
– Economic implications
– Security in the past
– Fear of the unknown

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Resistance to change:
organisational
Organisational resistance can arise from:
– Organisational culture
– Maintaining stability
– Investment in resources
– Past contracts or agreements
– Threats to power or influence

Mullins, Management and Organisational Behaviour, 11e © Pearson Education Limited 2016
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Managing change: CMI checklist

1. Agree the implementation strategy
2. Agree timeframes
3. Draw up detailed implementation plans
4. Set up a team of change champions
5. Establish good programme management practices
6. Communicate clearly
7. Ensure participation and help to minimise stress
8. Personalise the case for change
9. Be prepared for conflict and manage it effectively
10. Motivate your employees
11. Develop skills
12. Maintain momentum
13. Monitor and evaluate Mullins, Management and Organisational Behaviour, 11e © Pearson Education Limited 2016
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Minimising problems of change

• Create an environment of trust and shared
commitment.
• Team management and co-operation amongst
staff.
• A carefully designed HRM action programme,
including:
– incentives such as payment schemes;
– maintenance of the socio-technical balance;
– careful attention to job design, methods of work
organisation, relations between jobs and task
design.
Mullins, Management and Organisational Behaviour, 11e © Pearson Education Limited 2016
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Getting people to accept change

Successful change leaders know that:
• Humans are hard-wired for survival.
• Our default thinking is habitual and self-
perpetuating.
• Everyone is the product of their own experience
with different motivations and unique memories.
• Change can be frustratingly slow because it’s
hard brain work to rewire – even if it is logical
and in the best interests.

Mullins, Management and Organisational Behaviour, 11e © Pearson Education Limited 2016
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Change leaders: Drucker

‘A change leader looks for change, knows how to find
the right changes and knows how to make them
effective both outside the organization and inside it.
This requires:
1. Policies to make the future.
2. Systematic methods to look for and to anticipate
change.
3. The right way to introduce change, both within and
outside the organisation.
4. Policies to balance change and continuity’.

Mullins, Management and Organisational Behaviour, 11e © Pearson Education Limited 2016
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Assignment

Source: Understanding Your Organisation’s Image and Style, www.learningmatters.com

Mullins, Management and Organisational Behaviour, 11e © Pearson Education Limited 2016