operating together in a systematic way to achieve a set of objectives Formal Organisation Has a consciously coordinated system of human interactions with a common purpose Informal Organisation has social interactions without a conspicuous structure or common purpose.
The three characteristics of an organisation are
People, Structure and Purpose.
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What is organisational culture?
Organisation Culture The commonly held and relatively stable set of beliefs, attitudes, values and norms that exist throughout an organisation usually refers as the way things are done around here. Every organisation has a system of beliefs, values, norms of behaviour, symbols, myths and practices that have evolved over time and are shared by its members. Organisations possess some of the ingredients of a sub-culture distinctive shared beliefs and values that sometimes translate into policies and practices.
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How to determine the culture of an
organisation?
Communication of organisation goals
Clarity Deployment in all departments and at all levels Embracement by all employees
Dominant behaviour patterns:
within the organisation Between the organisation and other stakeholders
Distribution of authority and decision-making
Concentration at the top? Spread downwards with employees working closely with customers?
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How to determine the culture of an
organisation? Structure of the organisation Nature of leadership
Authoritarian to democratic
Value of the organisation
Responsiveness to the needs and aspirations of employees and other stakeholders
Entrepreneurial spirit Receptiveness to embracing change
Proactive v/s reactive
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Types of organisation culture
Power Culture Normally found in small
business owner/manager takes all the decisions and risks. Limited amount of formalisation, rules, procedures and policies. Workers rely on what has gone before. Organisation not rigidly structured can easily adapt to changes As organisation grows, power culture tends to be diminished
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Types of organisation culture
Role Culture Rigid Bureaucratic Culture
Works by logic and reason. Typified by policies, procedures and practices that are formally laid down Authority, job descriptions, procedures for communications, internal processes are all clearly defined The role of the person is more important as the person himself Stereotype ad very hard to adapt to changes Cannot fit well for ambitious person
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Types of organisation culture
Task Culture Getting effective performance is
more important than power or individuals the emphasis is on completing a project or task Task approach. More flexible to adapt to changes as the objective is to achieve something Ideal when the firm has to adapt quickly to changes in business environment Difficulties arise because of capability to coordinate workflow, mobilising resources on time, adjusting to budget, working towards economies of scale.
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Types of organisation culture
Person Culture The individual is the main
focus The Organisation and its structure exist to serve the individuals objectives and aspirations Being able to do ones own thing Usually found in specialised business
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Factors that influence the culture of
an Organisation
Origins Founding principles of the
organisation Size Whether the organisation is big , small, global? Technology Rate of technology adoption Goals and objectives Top-down or bottomup participation External Environment PESTEL forces that impact an organisation from outside Human Resources - managing the diverse personality behaviours
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Can Culture be Changed?
Culture Management its function is to foster the
most appropriate pattern of the culture elements revealed by analysis to achieve organisational goals Ability to cope with change Bringing change in some culture elements, while reinforcing other elements of the existing culture. Focus on what the organisation does best
Successful organisational cultures have two key
components: Culture should be coherent all cultural elements should follow similar style and direction Culture must be flexible enough to cope with rapid changes in environment
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