BUSS4 Research Task June 2013

1. BUSS4 Research Task June 2013 Organisational Culture www.time2resources.co.uk

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3. Introduction • The broad theme for this year’s research task is “Organisational Culture” • There are 5 bullet points to research • Research should look at different organisations and industries • We have chosen to focus on a range of large organisations which are in the public eye • You are strongly recommended to compare and contrast a number of different types of organisational culture • You will not be asked a question on any one specific type of culture • However we do strongly recommend you underpin your research with theoretical models Students must make reference to their research in section A of the examination www.time2resources.co.uk

4. What is Organisational Culture? • “The values and standards shared by people and groups within an organisation” • “The way we do things around here” • “The values, attitudes and beliefs of the people working in an organisation that control the way they interact with each other and with external groups” • “The attitudes, traits and behavioural patterns which govern the way individuals interact with others” • “Organisations have values, policies, rules and guidelines which help them create an image of their own” • “The principles, ideologies, beliefs and polices of an organisation which make it different from others” • “The collection of briefs norms and values that are shared by groups of people” • All of the above! www.time2resources.co.uk

5. What is Organisational Culture? • How do the theorists define culture? • Schein • “The pattern of basic assumptions that a group has invented, discovered or developed to cope with its problems of external adoption or internal integration, that has worked well and are taught to new members as the way to perceive, think, feel and behave.” • Handy • “ Deep-set beliefs about the way work should be organised, the way authority should be exercised, people rewarded, people controlled.” www.time2resources.co.uk

6. What is Organisational Culture?What key words would you use to define organisational culture? Introductory case study from Times100 What is culture? Creating a high performance culture at Siemens www.time2resources.co.uk

7. Types of culture • The AQA specification says types of organisational culture might include: • Entrepreneurial • Power • Task • Entrepreneurial – the ethos of a business where risk taking and innovation are actively encouraged and rewarded, whilst failure is not criticised • Workers are given individual responsibility • High degree of delegation and empowerment • Decentralised decision making • Democratic leadership • Discussion points: • Why might Dell have chosen an entrepreneurial culture? • What are the benefits to dell of an entrepreneurial culture? • Is this appropriate for the nature of the industry? • You will be looking at other technology firms in your own research later.

8. Types of culture • Selective use of theorists and theory. • Some of these will be introduced to help analyse research findings as you work through the research activities. • Charles Handy • Stephen Robbins • Edgar Schein • Robert Cooke • Geert Hofstede • Deal and Kennedy • FonsTrompenar Selective use of key words to underpin an argument Watch this 6 minute video about culture and types of culture before looking at who each theory belongs to.

9. Types of culture • Charles Handy – what are the characteristics of each type of culture as explained by Handy? www.time2resources.co.uk

10. Types of Culture • Robert Cooke www.time2resources.co.uk

11. Types of Culture Consider: How visual is each level to an outside observer? Which is the most difficult to understand? • Edgar Schein 3 levels • Culture is formed over time www.time2resources.co.uk

12. A thought to remember as you start your research! • “THERE IS NO SUCH THING AS A RIGHT CULTURE, WHAT MATTERS IS WHETHER THE CULTURE IS RIGHT FOR THE BUSINESS CIRCUMSTANCES” www.time2resources.co.uk

13. Organisational Culture • Factors influencing the culture of an organisation and cultural differences within an organisation • The impact of organisational culture on business strategies and performance • Reasons for changes in organisational culture • Ways of changing organisational culture • Problems of changing organisational culture www.time2resources.co.uk

14. 1. Factors influencing the culture of an organisation and cultural differences within an organisation • Introduction • Background Knowledge • Research Time • Assessment Activity • Glossary Back to research theme

15. Introduction1. Factors influencing the culture of an organisation and cultural differences within an organisation • Factors influencing the culture of an organisation and cultural differences within an organisation • Factors influencing • Not just what is the culture but why is that the culture? • What factors have led to the development of that culture? • Remember Schein’s definition “The pattern of basic assumptions that a group has invented, discovered or developed to cope with its problems of external adoption or internal integration, that has worked well and are taught to new members as the way to perceive, think, feel and behave.” • Why might there be different cultures within an organisation? • Cultures and sub-cultures Back to research theme Back to research topic

16. Background Knowledge1. Factors influencing the culture of an organisation and cultural differences within an organisation Consider how each of the following factors might influence culture? As you do your research try to prioritise these for different businesses. Back to research theme Back to research topic www.time2resources.co.uk

17. Background Knowledge1. Factors influencing the culture of an organisation and cultural differences within an organisation Edgar Schein listed the following factors: • The legacy of the company founder • Key subsequent leaders • Lessons learnt by the organisation as it grows and develops • Can you remember Schein’s 3 levels? • Schein reported that organisations could: • claim highly moral behaviour at the second level • display opposing behaviour at the third level Back to research theme Back to research topic www.time2resources.co.uk

18. Background Knowledge1. Factors influencing the culture of an organisation and cultural differences within an organisation Hofstede Cultural Dimensions Theory • Hofstede gave 5 factors that influence culture • Power distance • Masculinity v Femininity • Individualism v Collectivism • Uncertainty avoidance index • Long term v Short term orientation • You will consider these when looking at the first research task. Split the class into 5. Each group to research one of these 5 factors and report back Back to research theme Back to research topic www.time2resources.co.uk

19. Background Knowledge1. Factors influencing the culture of an organisation and cultural differences within an organisation Is this possible?: “ simultaneous loose tight properties” Peters & Waterman Excellent companies are both centralised and decentralised Back to research theme Back to research topic www.time2resources.co.uk

20. Active reading, Active research • Never just read, always analyse! Ask yourself WHY! • The following are quotes from “Inside Apple” Adam Lashinsky: • “Corporate narcissists are charismatic leaders willing to do whatever it takes to win and who couldn’t give a fig about being liked.” • “Job’s brutality in dealing with subordinates legitimised a frighteningly harsh, bullying and demanding culture at Apple.” • “If the narcissistic leader didn’t care about being loved and was willing to take extraordinary risks in the interest of winning, then so would his subordinates.” • “High performance teams should be at each other’s throats.” How would you describe Apple’s culture? Identify and prioritise 3 factors that have contributed towards Apple’s culture. You will look at Apple again in more detail for bullet point 2. www.time2resources.co.uk

21. Research Time1. Factors influencing the culture of an organisation and cultural differences within an organisation Research Activity Vogue and Daimler How do your research findings on Vogue and Daimler compare and/or contrast to Apple? Work through the research activity below reading the articles, visiting the business websites and watching the video clips. It is advised that you make notes on the key points as you work through the research activities. Back to research theme Back to research topic www.time2resources.co.uk

22. Assessment Activity1. Factors influencing the culture of an organisation and cultural differences within an organisation 50 minutes = 10 minutes reading and planning + 40 minutes writing • Practice question 1 Back to research theme Back to research topic www.time2resources.co.uk

23. Glossary1. Factors influencing the culture of an organisation and cultural differences within an organisation • Culture - the values and standards shared by people and groups within an organisation • Entrepreneurial culture - the ethos of a business where risk taking and innovation are actively encouraged and rewarded, whilst failure is not criticised • Power culture – power is maintained by a few individuals who control decision making and determine the culture • Task culture – an achievement driven culture where employees work in teams to achieve targets • Role culture – a bureaucracy designed to maximise the performance of individuals through procedures and role descriptions • Person culture – employees personal development and achievement is more important than the organisation • Mission statement – a written statement of the purpose of a company Back to research theme Back to research topic www.time2resources.co.uk

24. 2. The impact of organisational culture on business strategies and performance • Introduction • Background Knowledge • Research Time • Assessment Activity • Glossary The impact of culture on team performance at the Olympics Back to research theme www.time2resources.co.uk

25. Introduction2. The impact of organisational culture on business strategies and performance The impact of organisational culture on business strategies andperformance • Impact = effect • Strategies • What strategies does the business adopt as a result of its culture? • Performance • How does the culture and related strategies affect the business performance? Discussion point: What strategies does Dell adopt as a result of their entrepreneurial culture? How does culture affect performance at Dell? www.time2resources.co.uk Back to research theme Back to research topic

26. Background Knowledge2. The impact of organisational culture on business strategies and performance Culture will affect the attitudes of everyone in the workplace. Back to research theme Back to research topic www.time2resources.co.uk

27. Background Knowledge2. The impact of organisational culture on business strategies and performance Strong v weak culture • A strong culture • Staff respond positively to organisational values • Shared sense of responsibility towards vision, mission and objectives • Motivated and loyal staff • Greater efficiency • Accept roles and responsibilities willingly • Abide by policies • “everyone buys into it” • A weak culture • Little alignment with organisational values • Employees have to be forced to perform duties • Greater management control and supervision • Treat the organisation as a source of income only “A corporation that can create a strong culture has employees who believe in its products, its customers and its processes. They sell it willingly because it is part of their own identity.” Payne What is the relationship between culture and HR strategies? Back to research theme Back to research topic www.time2resources.co.uk

28. Background Knowledge2. The impact of organisational culture on business strategies and performance • How does culture impact on performance? • Performance indicators: • Financial results • Employee behaviour • Innovation • Competitiveness • Customer service • Brand image • Achieving objectives • Ethical behaviour • Culture is a powerful thing – affects success but can be destructive e.g. Enron Discussion points: What are the core values at Zappos? How does this impact on strategy? How does this impact on performance? Independent research: Did Zappos’ culture change after it was acquired by Amazon? “If you get the culture right, most of the other stuff will just take care of itself” Tim Hsieh CEO Zappos To what extent do you agree with this statement? Back to research theme Back to research topic www.time2resources.co.uk

29. Research Time2. The impact of organisational culture on business strategies and performance Research activity Apple and RBS • In an aggressive culture recognition hungry employees drive innovation. To what extent do you agree with this statement? Work through the research activity below reading the articles, visiting the business websites and watching the video clips. It is advised that you make notes on the key points as you work through the research activities. “If you get the culture right, most of the other stuff will just take care of itself” Tim Hsieh CEO Zappos To what extent do you agree with this statement? Can you now support your answer with evidence from your research? Back to research theme Back to research topic www.time2resources.co.uk

30. Assessment Activity2. The impact of organisational culture on business strategies and performance 50 minutes = 10 minutes reading and planning + 40 minutes writing Practice question 2 Back to research theme Back to research topic www.time2resources.co.uk

31. Glossary2. The impact of organisational culture on business strategies and performance Strong culture – employees are aligned with corporate values and want individual and organisational success Weak culture - there is little alignment with corporate values and therefore staff perform out of fear rather than motivation Business strategy – the medium to long term actions adopted by a business in order to achieve corporate goals Hard HRM – employees are treated as a resource that must be managed in order for the business to control costs and output Soft HRM – employees are treated as an asset to the business that can help a business achieve its corporate objectives Corporate objectives – the long term goals of a business which determine its guiding principles Corporate social responsibility – a firm’s decision to accept responsibility to its stakeholders for its social, environmental and ethical actions Back to research theme Back to research topic www.time2resources.co.uk

32. 3. Reasons for changes in organisational culture • Introduction • Background Knowledge • Research Time • Assessment Activity • Glossary Introductory case study from Times100 Changing the culture at Jaguar Back to research theme www.time2resources.co.uk

33. Introduction 3. Reasons for changes in organisational culture • Reasons for changes in organisational culture • Reasons = the cause • Why would an organisation change its culture? • Consider internal and external factors • How might this link back to bullet point 2? • Relationship between culture and performance “An adaptive culture translates into organisational success; it is characterised by managers paying close attention to all of their constituencies, especially customers, initiating change when needed, and taking risks.” Is there a difference between adapting and changing? Back to research theme Back to research topic www.time2resources.co.uk

34. Background Knowledge 3. Reasons for changes in organisational culture “Change your culture or die” Denning Mervyn King “Banks must change culture” Can you identity the reasons why? Back to research theme Back to research topic www.time2resources.co.uk

35. Research Time 3. Reasons for changes in organisational culture Research activity Walmart Research activity Airline Industry Can you compare and contrast the reasons for change at Walmart and the airline industry with the banking sector? Work through the research activity below reading the articles, visiting the business websites and watching the video clips. It is advised that you make notes on the key points as you work through the research activities. Back to research topic Back to research theme www.time2resources.co.uk

36. Assessment Activity 3. Reasons for changes in organisational culture 50 minutes = 10 minutes reading and planning + 40 minutes writing Practice question 3 Back to research theme Back to research topic www.time2resources.co.uk

37. Glossary 3. Reasons for changes in organisational culture • Corporate objectives – the long term goals of a business which determine its guiding principles • Organic growth – internal growth when a business expands by opening new stores, branches, functions or plants • Privatisation – the transfer of public sector organisations into the private sector • Nationalisation – the transfer of private sector organisations into the public sector • Leadership – the ability to influence and direct people in order to meet the corporate objectives Back to research theme Back to research topic www.time2resources.co.uk

38. 4. Ways of changing organisational culture • Introduction • Background Knowledge • Research Time • Assessment Activity • Glossary “it’s a bit like gardening!” 30 second clip Back to research theme www.time2resources.co.uk

39. Introduction 4. Ways of changing organisational culture Ways of changing organisational culture • How does a business go about changing culture? • What actions can be taken to manage the change process? • What actions can be taken to overcome resistance to a change in culture? • Does it matter what the reason for change is in the way its managed? • Look back at the reasons for change Discussion point: “Jenkins has told Barclays' 140,000 staff to sign up to a new code of conduct or leave the organisation.” Can it really be that easy? Back to research theme Back to research topic www.time2resources.co.uk

40. Background Knowledge 4. Ways of changing organisational culture A collection of tips on ways of changing culture: • Concentrate on the positives of the current culture • Ensure full commitment from everyone at the top • Top management and key personnel to lead by example • Establish new objectives and mission statement • Explain the need for change • Encourage the desired behaviour with rewards and recognition • Convince employees the gains to them will outweigh the losses How important do you think each of these tips are to the effective changing of culture? Both Inform Coerce or or Back to research theme Back to research topic www.time2resources.co.uk

41. Background Knowledge 4. Ways of changing organisational culture Cummings & Warley suggest a set of guidelines for cultural change: • Formulate a clear strategic vision • Display top management commitment • Model cultural change at the highest level • Modify the organisation to support change • Select and socialise newcomers, terminate deviants • Build in an evaluation process Tips on how to build a culture like Apple. Could these also be applied to changing a culture? Managing change at Barclays might be easier said than done. What can Jenkins do to manage the change of culture? Back to research theme Back to research topic www.time2resources.co.uk

42. Background Knowledge 4. Ways of changing organisational culture • Organisational tools for changing minds Read intro then skip to the dos and don’ts at the end Back to research theme Back to research topic www.time2resources.co.uk

43. Before carrying out more research for bullet point 4 we are going to look at bullet point 5 • It makes sense to consider the problems of changing culture to understand the ways of changing culture www.time2resources.co.uk

44. 5. Problems of changing organisational culture • Introduction • Background Knowledge • Research Time • Assessment Activity • Glossary Back to research theme www.time2resources.co.uk

45. Introduction 5. Problems of changing organisational culture • Problems of changing organisational culture • Why is it not easy to change culture? • What are the problems? • Why do these problems exist? • BP4 how do we overcome them? Split the class into small teams. Each take a section of this report on why changing culture was so difficult at Toyota. Report back on reasons, problems and way of changing culture at Toyota. Back to research theme Back to research topic www.time2resources.co.uk

46. Background Knowledge 5. Problems of changing organisational culture • Does changing culture imply a weakness in the current culture? • Could this be taken personally? • Is it challenging the way things have always been done? • Does it depend on: • The strength of the culture? • The type of the culture? • The reason for change? • The habits of employees? • Why resist change? • Lack of trust • Fear • Impact on self Schein “Change agents often fail to achieve their goals: underlying tacit cultural norms are generally not understood before would-be change agents begin their actions.” How far have we evolved? Back to research theme Back to research topic www.time2resources.co.uk

47. Research Time4. Ways of changing organisational culture5. Problems of changing organisational culture • Research activity Walmart • Research activity British Airways • After carrying out the research try to ensure you understand : • Which notes relate to bp 4 • Which notes relate to bp 5 • How these 2 bps fit together Work through the research activity below reading the articles, visiting the business websites and watching the video clips. It is advised that you make notes on the key points as you work through the research activities. . Back to research theme Back to research topic www.time2resources.co.uk

48. Assessment Activity 4. Ways of changing organisational culture 50 minutes = 10 minutes reading and planning + 40 minutes writing Practice question 4 Back to research theme Back to research topic www.time2resources.co.uk

49. Assessment Activity5. Problems of changing organisational culture 50 minutes = 10 minutes reading and planning + 40 minutes writing Practice question 5 Back to research theme Back to research topic www.time2resources.co.uk

50. Glossary4. Ways of changing organisational culture5. Problems of changing organisational culture Managing change – the activity of planning for, implementing, coordinating and monitoring the process of change Project champions – the people responsible for driving a project forward and gaining commitment Project groups – a group of people from different backgrounds tasked with achieving the desired programme of change Project management – the activity of delivering the required change Promote change – the process of gaining acceptance of change Back to research theme Back to research topic www.time2resources.co.uk