MBA401 Assessment

MBA401

People, Culture and

Contemporary

Leadership

Workshop Week 2

Organisational Culture

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2

Workshop Objectives

LO1 • Explain the nature of organisational culture

LO2 • Detail how managing change can affect people

and their role within organisations

LO3 • Explain the role and relationship between

innovation as a driver of organisational change

What is Organisational Culture?

• “The shared values, beliefs, assumptions and patterns of behaviour within an organisation” (Riggio, 2015).

• “The ‘social glue’ that holds together the whole organisation” (Deal and Kennedy 1982).

• “Shared norms, values and goals for an organisation’s culture” (O’Reilly & Chatman, 1996).

• “Described as the way things are done in the organisation” (Schneider, 2000).

Examples of Organisational

Culture

https://youtu.be/C4AXv-jFszs

https://www.youtube.com/watch?v=7WH8uxXXe9o

https://www.youtube.com/watch?time_conti

nue=85&v=X9SK052cF3c

Atlassian Espoused Values

6

GROUP ACTIVITY:

https://www.youtube.com/watch?v=tBPbWOo

WYlY

Form groups of 4 or 5 and discuss the

following: • How important do you think organisational values are to

creating Atlassian's corporate culture?

• What does this mean for the organisation, for employees

and for Atlassian customers?

Types of Organisational Culture

• Power culture

– Concentrates power among a small group or a central figure and

its control is radiating from its centre like a web.

• Role culture

– Authorities are delegated as such within a highly defined

structure.

• Task culture

– Teams are formed to solve particular problems. Power is derived

from the team with the expertise to execute against a task.

• Person culture

– Formed where all individuals believe themselves superior to the

organisation.

What is Organisational Culture?

https://www.managementstudyguide.com/edgar-schein-model.htm

Geert Hofstede’s (Organisational

Culture Model) • Geert Hofstede (2001) is well-known for his Organisational Cultural

Model which explores the national and regional cultural influences which affect the behaviour of organisations and features six dimensions:

– Means oriented vs goal oriented - the extent to which goals (the ‘what’) or the means (the ‘how') of conducting work tasks are prioritised

– Internally driven vs externally driven - externally driven cultures will be more pragmatic, focusing primarily on meeting the customer’s requirements, while internally driven cultures may exhibit stronger values

– Easygoing vs strict - stricter cultures run on a high level of discipline and control, while easygoing cultures tend towards more improvisation

– Local vs professional - the extent to which people identify with their immediate colleagues and conform to the norms of the environment

– Open system vs closed system – the extent to which newcomers are accepted and the differences they bring are welcomed

– Employee-oriented vs work-oriented – the extent to which the employee’s well-being is prioritised at the expense of the task, or vice versa

Geert Hofstede introduces Culture https://youtu.be/mvznxUkDLkQ

Quinn and Cameron’s Cultural Model (1980s)

• Hierarchy – Effective when inward looking and focused on stability and control.

– May be less responsive to changing situations and the demands of the market.

• Clan – Primarily inward looking and place value on responsiveness.

– May be more focused on and interested in their internal outcomes, such as engagement, than in external outcomes, such as customer results.

• Adhocracy – Outward looking and focused on being flexible and responsive. They

value the pace of work, innovation and risk taking.

– May grow and develop quickly, have less control over their operations and provide fewer nurturing environments.

• Market – Outwards looking but internally focused.

– Aware of their market position and are driven to improve it.

– May be less forward looking, less responsive and less nurturing.

https://worldofwork.io/2019/10/cameron-quinns-competing-values-culture-model/

https://www.quinnassociation.com/en/quinn-modeleron-quinns-competing-values-culture-model/

Types of Culture

12

GROUP ACTIVITY:

• In groups of 3 or 4, identify four

organisations – one for each type of

culture in the Cameron and Quinn

model (Clan, Adhocracy, Market,

Hierarchical).

• Be prepared to share your response

and rationale with the broader group.

• HR plays a pivotal role in setting a company’s cultural

tone and in developing a healthy/positive workplace

culture. HR shapes and reinforces how employees

define corporate culture:

– Providing feedback

– Addressing diversity

– Supporting business advocacy

– Becoming change agents and responding to rapid change

Culture - The Role of HR

https://www.hrcsuite.com/the-role-of-hr-in-workplace-culture/

“To drive culture and build a culture that breeds success in today's

dynamic economic environment, organisations must invest the time to

accurately reflect upon, evaluate and measure their performance at all

levels against specific criteria. This process not only ensures strategic

objectives and stakeholders’ needs are being met, but will have a direct

impact on an organisation’s bottom line and ability to grow in the future.”

(Australian Human Resources Institute)

Why Manage Performance?

https://www.ahri.com.au/resources/ahriassist/performance-management/

• Talent acquisition and selection

• Salary and incentives

• Job re-design and task analysis

• Talent development and careers

• Succession planning

• Employee autonomy

• Performance appraisal

• Teamwork

• Training

Performance is Key

Employee Engagement

• “A passion for work” (Truss, Soane, Edwards, Wisdom, Croll &

Burnett, 2006).

• “Engagement is an employee’s level of involvement and

enthusiasm” (Seijts & Crim, 2006).

• “A state of mind and a clear identification with a given job role”

(Bakker, Schaufele, Leiter & Taris, 2008).

• “A heightened emotional connection that an employee feels

for his or her organisation that influences him or her to exert

greater discretionary effort to his or her work” (Soldati, 2007).

Are you engaged in your work?

17

Answer the following questions based on your current or last job:

1. Do you know what is expected of you at work?

2. Do you have the materials and equipment you need to do your work right?

3. At work, do you have the opportunity to do what you do best every day?

4. In the last seven days, have you received recognition or praise for doing good

work?

5. Does your supervisor, or someone at work, seem to care about you as a person?

6. Is there someone at work who encourages your development?

7. At work, do your opinions seem to count?

8. Does the mission/purpose of your company make you feel your job is important?

9. Are your associates (fellow employees) committed to doing quality work?

10. Do you have a best friend at work?

11. In the last six months, has someone at work talked to you about your progress?

12. In the last year, have you had opportunities at work to learn and grow?

https://www.gallup.com/access/323333/q12-employee-engagement-survey.aspx

Top 10 Drivers of Employee Engagement

https://www.proactiveinsights.com/site/engagementdrivers

Job Satisfaction

Hackman and Oldman, 1980

Job Satisfaction

20

GROUP ACTIVITY:

The model on the previous slide is more than

40 years old. In your view: • Is the model still relevant today?

• What would you change to make it more contemporary?

Defining Toxic Culture

A toxic work culture is one where the

workplace is plagued by fighting, drama and

unhappy employees to the point that

productivity and the well-being of the people

in the office is affected.

https://youtu.be/0cgCFxL7Nvo (Simon Sinek)

Ten Signs of Toxic Culture

1. People don't communicate, don't smile, don't joke and don't reinforce

one another.

2. People are very concerned about titles, job descriptions and levels in

the hierarchy.

3. Rules and policies are very important. It's more important than the

good judgment of your teammates.

4. Everybody is afraid of getting in trouble for breaking the rules, and so

they keep their heads low and try not to step out of line.

5. Managers and employees make up two separate groups that seldom

interact. When they do interact, it's a one-way communication in

which the manager tells the underling what to do.

https://www.forbes.com/sites/lizryan/2016/10/19/ten-unmistakable-signs-of-a-toxic-culture/#5a7caefe115f

6. While it's well known that employees are unhappy, nobody talks about it openly.

7. People do not speak up even when they are presented with impossible goals, plans or ideas they are expected to implement.

8. Informal grapevine is many times more effective as a communications network than any type of official company communication.

9. Employees have little to no latitude in performing their jobs. Every procedure is spelled out for them.

10. Fear is palpable in the environment. Doors slam and whispered conversations take place in stairwells.

Ten Signs of Toxic Culture

Toxic Cultural Change

24

GROUP ACTIVITY:

The Ruthless Culture of Amazon

https://youtu.be/umMZYN5jOA0

Nike

https://youtu.be/asJTbGTZ_Bc

In groups, compare/contrast the issues and

approaches of Amazon and Nike.

Be prepared to share your response and

rationale with the broader group.

What is Reward?

A reward may be anything tangible or intangible

that an organisation offers to its employees in

exchange for their potential or actual work

contribution, to which employees as individuals

attach a positive value as a satisfier of certain self-

defined needs.

Shields, J., Rooney, J., Brown, M., & Kaine, S. (2020). Managing Employee Performance and Reward: Systems, Practices and Prospects (3rd ed.). Cambridge: Cambridge University Press. doi:10.1017/9781108684675

Attract

The right people at

the right time for the

right jobs, tasks or

roles

Retain

The best people by

satisfying their work-

related needs and

aspirations and

recognising and

rewarding their

contribution

Develop

Required workforce

capabilities by

recognising and

rewarding employees

for knowledge, skill

and ability

enhancement

Motivate

To contribute to the

best of their capability

by recognising and

rewarding high

individual and group

contributions towards

meeting the

organisation's strategic

objectives

Objective of a Reward System?

What is Total Reward?

• https://www.youtube.com/watch?v=tlmub9L7rr0

Workshop Objectives

LO1 • Explain the nature of organisational culture

LO2 • Detail how managing change can affect people

and their role within organisations

LO3 • Explain the role and relationship between

innovation as a driver of organisational change

References

• Amis, J 2018, Understanding organization change and innovation: a conversation with Mike Tushman, Journal of Change Management, vol.18, no. 1, pp.23–34

• Corritore, M, Goldberg, A & Srivastava, S 2020, The new analytics of culture, Harvard Business Review, Jan-Feb, pp.77-83

• Jarmai, K 2020, Responsible Innovation, Springer, Dordrecht

• Lauer, T 2021, Change management fundamentals, 1st edn, Springer, Berlin, Heidelberg

• Lee, J 2020, Accelerating organisation culture change: innovation through digital tools, Emerald Publishing, Bingley, UK

• Robbins, S 2020, Organisational behaviour, 9th edn, Pearson Australia, Melbourne, Victoria

• Waddell, D, Creed, A & Cummings, TG 2019, Organisational change, Cengage, Australia

Supplemental Resources • Cameron, K & Quinn, E 2006, Diagnosing and changing organizational culture:

based on the competing values framework. China Renmin University Press, Beijing

• Drucker, P 1985, Innovation and entrepreneurship: practice and principles. Harper, New York

• Handy, C 1976, Understanding organizations, Oxford University Press, London

• Hofstede, G 2001, Culture’s consequences: comparing values, behaviors, institutions, and organizations across nations, 3rd edn, CENGAGE, Thousand Oaks, CA

• Riggo, R 2015, Introduction to industrial and organisational psychology, Routledge Press, London

• Schein, E 2010, Organizational culture and leadership, MIT Press, New York