805- Introduction to Management

Chapter 4: The internal environment

Page 38

Learning outcomes

This chapter will enable you to:

•Describe the formal and informal organisation;

•Investigate organisational culture;

•Identify ways of influencing organisational culture.

Organisational culture•Organisational culture are all the aspects that make a particular group the way that it is. – the values, beliefs, and behaviours of the members within the organisation .

•It is like the personality of the individual and as such can vary from organisation to organisation.

•See pages 38 – 39, including What is your culture? page 39.

Orientation/induction

•An orientation or induction is a process where by an employee learns about the organisation, including the requirements of the job and the organisational culture.

•A buddy system can be used to do the induction. Specifically, a more experienced staff member is partnered up with the new employee for a certain length of time and teaches them the requirements of the position.

Characteristics of organisational culture

• According to Kreitner and Kinicki (1998) there are seven key organisational culture characteristics.

1.Innovation and risk taking – strong entrepreneurial flare and high level of risk taking versus a more conservative business – Pacificblue versus NZ Post

2.Attention to detail – being precise versus being more relaxed.

3.Outcome orientation – focusing on the end product versus focusing in on the processes that lead to the end product.

Characteristics of organisational culture

4.People orientation – paying greater attention to employee satisfaction versus profit maximisation.

5.Team orientation – working together in groups versus working individually.

6.Aggressiveness – competitive/aggressive behaviour versus co-operative or easy-going tendencies.

7.Stability – seeking growth opportunities versus maintaining status quo.

Characteristics of an organisation’s culture

Attention to

detail

Characteristics of

organisational culture

Team orientation

Aggressiveness

Stability

Innovation and risk taking

Outcome orientationPeople

orientation

Subcultures

•Made up of people or departments with different values and beliefs from the rest of the organisation.

•Can have either a positive or negative effect on the organisation as a whole

•Negative if the subculture is moving in a counter productive direction

•Positive if the team and remain productive and the organisation benefits from the difference.

•See page 43

Maintaining the organisational culture

•Employing only people who ‘fit; the desired culture;

•Rewarding ‘appropriate’ behaviour, e.g. to encourage excellent customer service, they may provide bonuses for those who take special care of customers or clients;

•Providing training which emphasises desired behaviours.

•Holding special events which reinforce the culture – employee of the month, annual Christmas party (all recognise employee efforts)

Changing the organisational culture

•Management providing both verbal and behavioural support by ‘walking the talk’. •Training to communicate expectations and teach new behaviours.•Employee focus groups, by department, to put the mission, vision, and values into words that state their impact on each employee's job.•Keep all employees informed about the organisational culture change process to ensure their commitment. •Review all work systems such as promotions, pay practices, performance management, and selection to make sure they are aligned with the desired culture.•See page 44 and Case Study: Tasman Pulp.. page 45

Chapter summary

•Organisational culture describes the values, beliefs and behaviours of people within the organisation.

•Organisational culture influences how the work is done, the nature of the relationships among staff and how customers are viewed.

• Organisational culture can be managed by rewarding appropriate behaviour, training staff and hiring people who exhibit the desired values and attitudes.

Chapter summary questions

• See pages 47 & 48