GORM

QHO-420-CMT
Lecture-Week-4
The Organization Culture.
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 TODAY’S SESSION PLAN
• Be able to define organizational culture
• To understand key theories of organizational culture
• to understand the impact of culture on an organization and its performance.
• why is organisational culture important?
• How do you think it relates to the performance of an organisations?

• Reading: Mullins (2016).

• Revision and Q&A.
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 Assessment Task:
• Write an essay on ONE of the following topics:

1-How does organisational culture impact on an organisation’s performance?

• or
2-Discuss the role of stakeholders in an organisation.
• or
3-Choose ONE of the following laws and explain why it is so important in the workplace?
• The Equality Act
• The General Data Protection Act
• The Health and Safety at Work Act
• or
4-Which is most important in an organisation? Control, power, or influence?
Learning outcomes

BE ABLE TO DEFINE TO UNDERSTAND KEY THEORIES TO UNDERSTAND THE IMPACT OF

ORGANIZATIONAL CULTURE. OF ORGANIZATIONAL CULTURE CULTURE ON AN ORGANIZATION
AND ITS PERFORMANCE
What is
organisational
culture?

• “The collection of traditions, values, policies, beliefs, and

attitudes that constitute a pervasive context for
everything we do and think in an organisation” (Mullins,
2016)

• “Culture impacts most aspects of organisational life,

such as how decisions are made, who makes them, how
rewards are distributed, who is promoted, how people
are treated, how the organisation responds to its
environment, and so on”. (Harrison and Stokes, 1992).
 What is Organisational
Culture?

• “How things are done around here” (Mullins, 2016, p.537)

• Culture is the ‘Personality of the organisation’
• It refers to:

• How things are done

• How employees perform in their work
• How employees relate to management, customers and each other

• Culture affects the tasks (what is done), and the emotional issues within
organisations
9

What is Organisational
Culture?

• “The shared values, beliefs and norms

which influence the way employees
think, feel and act towards others inside
and outside the organisation”
(Buchanan and
Huczynski, 2016, p.
109)
What does Organisational Culture
influence?

- How decisions are made

- Who makes decisions
- How rewards are distributed
- Who is promoted
- How people are treated
- How the organisation responds to its environment

10

• (Harrison and Stokes, 1992)

Shein’s Model of Culture
(in Mullins, 2016, p. 539)

Artefacts and Creations:

- Visible layer – physical space, layout,

written and spoken language, overt
behaviours

Values and Beliefs:

- Accumulated beliefs about how work
should be done and situations dealt with

Basic Assumptions:
- Nature of reality and the organisation’s
relationship to its environment
- How group members perceive, think and
feel about things

11
 Level 1: Artefacts – most visible – the physical
space and layout, tech output, written and
spoken language, overt behaviour of group
members

Levels of
Organisational Level 2: Espoused values – the values and
beliefs of the organisation by which members
Culture justify actions and behaviour

(Schein, 1980)
Level 3: Basic underlying assumptions: They
guide behaviour and determine how group
members perceive, think and feel about things
Types of
organisational
culture
Deal and
Kennedy’s(19
82) Corporate
Cultures
• Tough guy – macho – High
risk/swift feedback – police
departments

• Work hard/play hard – Fun –

low risk – quick feedback –
coffee shops

• Bet your company – High

risk, slow feedback – oil
companies

• Process – low risk/slow

feedback need for order an
predictability – civil service
Influences on
the Development
of Culture

• History
• Primary function and technology
• Strategy
• Size
• Location
• Management and leadership
• The environment
7

Organisational Socialisation (Buchanan and Huczynski, 2016, p. 116)

“The process
through which an
employee’s
pattern of
behaviour, values,
attitudes and
motives is
influenced to
conform to those
of the
organization”
7 Key Steps in Organisational Socialisation (Pascale (1985) in Buchanan and Huczynski, 2016, p. 117)

18
The Cultural
Web
(Johnson
and Scholes,
2005)
Question

So, why is organisational culture How do you think it relates to the

important? performance of an organisations?
Organisation culture is
important because…
• …it impacts on:
• 1. Decision making
• 2. Work organisation
• 3. Motivation and job satisfaction
• 4. How people are treated
• 5. How rewards are distributed
• 6. How the organisation responds
to its environment
 Work
Ad ethic
ap W
It impacts on tib e ll
i li t be
performance y
in
g
because it Ta Loy
ke
influences… ri s
al t
y
ks Willingness
to go
‘above and
beyond’
Thank you
ANY QUESTIONS?
 References
• BROOKS, A. C. 2009. Social Entrepreneurship: A ...
Managing and measuring social enterprises, London,
Sage Publications
• MULLINS, L., 2016, Management and Organisational
Behaviour 11th edition, London: Pearson Education
Limited.
 References:

• Boddy, D. (2014) Management: An Introduction.

(6th Ed). Harlow: Pearson Education. Chapters 1 and 10 [
Ebook].
• Jones, G. & George, J. (2016) Contemporary Management.
(9th Ed). New York: McGraw Hill
• Schermerhorn , Hunt and Osborn, 2003, Organizational
Behaviour, 8TH Edition,-John Willey & Sons, Inc. USA. (OB,CH-
15).