![Page 1: Managing Change Key Influences on the Change Process: Culture](https://reader035.vdocuments.net/reader035/viewer/2022062323/568152df550346895dc0fedc/html5/thumbnails/1.jpg)
Managing ChangeManaging ChangeKey Influences on the Change Key Influences on the Change Process: Process:
CultureCultureBureaucratic and risk averse environments are career
killers because of their impact on learning.John Kotter
We need a can-do, vibrant, innovation-driven culture. Not wearing a tie is just a snippet of that.
Paul Walsh
BUSS4.10 Culture
![Page 2: Managing Change Key Influences on the Change Process: Culture](https://reader035.vdocuments.net/reader035/viewer/2022062323/568152df550346895dc0fedc/html5/thumbnails/2.jpg)
In this topic you will learn In this topic you will learn about:about:
Types of organisational culture
Reasons for and problems of changing organisational culture
Assessing the importance of organisational culture
BUSS4.10 Culture
![Page 3: Managing Change Key Influences on the Change Process: Culture](https://reader035.vdocuments.net/reader035/viewer/2022062323/568152df550346895dc0fedc/html5/thumbnails/3.jpg)
What is corporate culture?
“The way we do things
around here!
“The way we do things
around here!
![Page 4: Managing Change Key Influences on the Change Process: Culture](https://reader035.vdocuments.net/reader035/viewer/2022062323/568152df550346895dc0fedc/html5/thumbnails/4.jpg)
Culture consists of…
The shared values of a business
The beliefs and norms that affect every aspect of work life
The behaviours that are 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
![Page 5: Managing Change Key Influences on the Change Process: Culture](https://reader035.vdocuments.net/reader035/viewer/2022062323/568152df550346895dc0fedc/html5/thumbnails/5.jpg)
Different types of ‘business’ culture – some real examples
Both of these communities are based in my home area of Blaenavon and Ebbw Vale. My grandparents and parents worked in these communities.
![Page 6: Managing Change Key Influences on the Change Process: Culture](https://reader035.vdocuments.net/reader035/viewer/2022062323/568152df550346895dc0fedc/html5/thumbnails/6.jpg)
Different types of ‘business’ culture – Google culture!
![Page 7: Managing Change Key Influences on the Change Process: Culture](https://reader035.vdocuments.net/reader035/viewer/2022062323/568152df550346895dc0fedc/html5/thumbnails/7.jpg)
Organisational CultureOrganisational Culture“The specific collection of values and norms that are shared by people and groups in an organisation and that control the way they interact with each other and with stakeholders outside the organisation.”
Source : Wikipedia
The culture of a business affects the way in which
the business operates. This includes:◦ Decision Making◦ Organisational Structure◦ Communication◦ Leadership styles (cause or effect?)◦ Attitude towards work
BUSS4.10 Culture
What are the key features of the
organisational culture at Google?
How might this influence the business
performance?
![Page 8: Managing Change Key Influences on the Change Process: Culture](https://reader035.vdocuments.net/reader035/viewer/2022062323/568152df550346895dc0fedc/html5/thumbnails/8.jpg)
How employees are recruited
The way that visitors and guests are looked after
How the working space is organised
The degree of delegation & individual responsibility
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
How culture might be demonstrated
![Page 9: Managing Change Key Influences on the Change Process: Culture](https://reader035.vdocuments.net/reader035/viewer/2022062323/568152df550346895dc0fedc/html5/thumbnails/9.jpg)
Types of Organisational Types of Organisational cultureculture
Power culture
◦ A few people central to the organisation have control
◦ Associated with Centralised decision making Autocratic leadership
Entrepreneurial culture
◦ Risk taking and innovation are actively encouraged and rewarded, whilst failure is not criticised
◦ Associated with Decentralised decision making Democratic leadership
Task culture
◦ Emphasis on achieving set outcomes through cooperation and team work
◦ Associated with Matrix structures Delegation
BUSS4.10 Culture
The AQA specification states that types of organisational culture include: power, entrepreneurial and task
Can you define all the terms used within this
slide?
![Page 10: Managing Change Key Influences on the Change Process: Culture](https://reader035.vdocuments.net/reader035/viewer/2022062323/568152df550346895dc0fedc/html5/thumbnails/10.jpg)
Strong or weak culture?
Staff understand and respond to culture
Little need for policies and procedures
Consistent behaviourCulture is embedded
Staff understand and respond to culture
Little need for policies and procedures
Consistent behaviourCulture is embedded
StrongStrong
Little alignment with business values
Inconsistent behaviourA need for extensive
bureaucracy & procedures
Little alignment with business values
Inconsistent behaviourA need for extensive
bureaucracy & procedures
WeakWeak
![Page 11: Managing Change Key Influences on the Change Process: Culture](https://reader035.vdocuments.net/reader035/viewer/2022062323/568152df550346895dc0fedc/html5/thumbnails/11.jpg)
Handy’s Four Classes of Culture
PowerPower RoleRole
TaskTask PersonPerson
![Page 12: Managing Change Key Influences on the Change Process: Culture](https://reader035.vdocuments.net/reader035/viewer/2022062323/568152df550346895dc0fedc/html5/thumbnails/12.jpg)
Power culture
• Control radiates from the centre
• Concentrates power among a few
• Few rules and little bureaucracy
• Swift decisions are possible
• Control radiates from the centre
• Concentrates power among a few
• Few rules and little bureaucracy
• Swift decisions are possible
![Page 13: Managing Change Key Influences on the Change Process: Culture](https://reader035.vdocuments.net/reader035/viewer/2022062323/568152df550346895dc0fedc/html5/thumbnails/13.jpg)
Role culture
• People have clearly delegated authorities within a highly defined structure
• Hierarchical bureaucracy
• Power derives from a person's position
• Little scope exists for expert power
• People have clearly delegated authorities within a highly defined structure
• Hierarchical bureaucracy
• Power derives from a person's position
• Little scope exists for expert power
PowerPower
![Page 14: Managing Change Key Influences on the Change Process: Culture](https://reader035.vdocuments.net/reader035/viewer/2022062323/568152df550346895dc0fedc/html5/thumbnails/14.jpg)
Task culture
• Teams are formed to solve particular problems
• Power derives from expertise as long as a team requires expertise
• No single power source
• Matrix organisation
• Team may develop own objectives (a risk)
• Teams are formed to solve particular problems
• Power derives from expertise as long as a team requires expertise
• No single power source
• Matrix organisation
• Team may develop own objectives (a risk)
Functional DeptsFunctional Depts
Proj
ect T
eam
sPr
ojec
t Tea
ms
![Page 15: Managing Change Key Influences on the Change Process: Culture](https://reader035.vdocuments.net/reader035/viewer/2022062323/568152df550346895dc0fedc/html5/thumbnails/15.jpg)
Person culture
• People believe themselves to be superior to the business
• Business full of people with similar training, background & expertise
• Common in firms of professionals – e.g. accountants & lawyers
• Power lies in each group of individuals
• People believe themselves to be superior to the business
• Business full of people with similar training, background & expertise
• Common in firms of professionals – e.g. accountants & lawyers
• Power lies in each group of individuals
![Page 16: Managing Change Key Influences on the Change Process: Culture](https://reader035.vdocuments.net/reader035/viewer/2022062323/568152df550346895dc0fedc/html5/thumbnails/16.jpg)
Your task
Take each of these ‘cultures’ – decide which leadership style
would work best for each.
Justify your choice.
![Page 17: Managing Change Key Influences on the Change Process: Culture](https://reader035.vdocuments.net/reader035/viewer/2022062323/568152df550346895dc0fedc/html5/thumbnails/17.jpg)
Culture types and leadership style
Cultural Type
Suitable Leadership Style
Power Autocratic
Role Autocratic or paternalistic
Task Paternalistic / democratic
Person Democratic
![Page 18: Managing Change Key Influences on the Change Process: Culture](https://reader035.vdocuments.net/reader035/viewer/2022062323/568152df550346895dc0fedc/html5/thumbnails/18.jpg)
Reasons for changing Reasons for changing organisational cultureorganisational cultureChange in owners / leaders
◦ Recap BUSS4.7 - how might a change in ownership mean a change in culture?
Change in corporate objectives
Change in size◦ Mergers and takeovers can often mean
businesses with different cultures joining togetherResponding to market conditions
◦ New competition◦ Economic climate
BUSS4.10 Culture
How might the organisational culture of a business have to change to respond to different functional strategies?
![Page 19: Managing Change Key Influences on the Change Process: Culture](https://reader035.vdocuments.net/reader035/viewer/2022062323/568152df550346895dc0fedc/html5/thumbnails/19.jpg)
Problems of changing Problems of changing organisational cultureorganisational cultureResistance to change
Lack of trust
Period of adjustmentAlienation of:
◦Suppliers◦Customers◦Other stakeholders
BUSS4.10 Culture
Read the Business Week
article on how to change corporate
culture
![Page 20: Managing Change Key Influences on the Change Process: Culture](https://reader035.vdocuments.net/reader035/viewer/2022062323/568152df550346895dc0fedc/html5/thumbnails/20.jpg)
The importance of The importance of organisational cultureorganisational culture
Impact on staff motivation◦ Communication◦ Retention◦ Personnel
performance indicators
Effects decision making◦ Speed◦ Level of
involvement◦ Scientific v Intuition
Competitiveness of the business◦ Innovation◦ Adaptability
Brand image◦ Consumer
perception◦ Stakeholder
opinion
BUSS4.10 Culture
![Page 21: Managing Change Key Influences on the Change Process: Culture](https://reader035.vdocuments.net/reader035/viewer/2022062323/568152df550346895dc0fedc/html5/thumbnails/21.jpg)
Barriers to cultural changeTradition and set
ways:Loyalty to existing
relationshipsFailure to accept
the need for change
InsecurityPreference for the
existing arrangements
Different person ambitions
Fear of:Loss of powerLoss of skillsLoss of incomeThe unknown Inability to perform as
well in the new situation
Break up of work groups
![Page 22: Managing Change Key Influences on the Change Process: Culture](https://reader035.vdocuments.net/reader035/viewer/2022062323/568152df550346895dc0fedc/html5/thumbnails/22.jpg)
![Page 23: Managing Change Key Influences on the Change Process: Culture](https://reader035.vdocuments.net/reader035/viewer/2022062323/568152df550346895dc0fedc/html5/thumbnails/23.jpg)
![Page 24: Managing Change Key Influences on the Change Process: Culture](https://reader035.vdocuments.net/reader035/viewer/2022062323/568152df550346895dc0fedc/html5/thumbnails/24.jpg)
ActivityActivityWhat type of organisation would you like
to work for in the future - what sort of culture would it have?
Watch this video about the top 100 organisations to work for in 2009
BUSS4.10 Culture
![Page 25: Managing Change Key Influences on the Change Process: Culture](https://reader035.vdocuments.net/reader035/viewer/2022062323/568152df550346895dc0fedc/html5/thumbnails/25.jpg)
Culture activity Using The Sunday Times 100 Best companies to work
for…
1. List 3 common factors you would expect to find in the culture of these organisations
2. Explain how the culture of an organisation can impact upon its overall performance.
Select THREE companies within the 100 Best… What are the key features that these companies have? Why do the staff value about the company that they work
for? What ‘organisation culture’ systems do they operate?
Do some more research from the The Times 100 http://business.timesonline.co.uk/tol/business/career_and_jobs/best_100_companies/best_100_tables/
![Page 26: Managing Change Key Influences on the Change Process: Culture](https://reader035.vdocuments.net/reader035/viewer/2022062323/568152df550346895dc0fedc/html5/thumbnails/26.jpg)
![Page 27: Managing Change Key Influences on the Change Process: Culture](https://reader035.vdocuments.net/reader035/viewer/2022062323/568152df550346895dc0fedc/html5/thumbnails/27.jpg)
Essay titleResearch among schools and businesses points to ‘cultural differences’ as being the key problem in mergers.
Discuss why cultural differences are so hard to overcome when bringing two organisations together. (40)
![Page 28: Managing Change Key Influences on the Change Process: Culture](https://reader035.vdocuments.net/reader035/viewer/2022062323/568152df550346895dc0fedc/html5/thumbnails/28.jpg)
EssayEssay
Employees at Google enjoy a creative, relaxed and innovative culture. The open plan offices, informal structure and entrepreneurial culture help to create a fun working environment.
With reference to Google and/or other businesses you have studied to what extent does the culture of a business determine its ability to maintain competitiveness?
BUSS4.10 Culture