Lecture 9: Organizational Structure and Culture PDF

Organisational structure - is a set of organizational traditions and customs, unwritten values, and norms (sometimes also certain organizational rituals and myths, shared beliefs, attitudes, assumptions) manifested in certain forms of behaviour, thinking, acting, and appearance of its employees, cha...

Organisational structure - is a set of organizational traditions and customs, unwritten values, and norms (sometimes also certain organizational rituals and myths, shared beliefs, attitudes, assumptions) manifested in certain forms of behaviour, thinking, acting, and appearance of its employees, characteristic for the organization. Healthy organizational culture: Creates an environment that is conducive to improved performance, facilitates change management, accelerates implementation, contributes to a willingness to commit to the organisation's goals and promotes initiative, quality of work, and loyalty, increases internal organisational resilience in more difficult development phases, enables rapid decision-making, reduces demands on control. Components of organisational culture: Values - what is considered important. − basic life ideas, values, and attitudes of employees - they manifest spontaneously. − They are more or less unconscious and invisible. − The more firmly rooted the values are, the stronger they are, the more they will influence behaviour. Norms and Standards − Rules of work and social conduct are spontaneously created or purposefully established by the management of an organisation.  − They are partially conscious. − They provide guidance on how to behave. Management style, work ethics, status, ambition, performance, power, politics, loyalty, anger, accessibility, formality Artefacts -symbolically expressed organizational goals and basic principles of organizational culture, operating at the conscious level of the human psyche. Their interpretation/explanation is important. Symbols are influential, conscious, and can be perceived by sight, hearing, and smell. Artefacts are divided into: − Verbal symbols -stories, tales, narratives, myths − Symbolic actions -symbolic artifacts of action, status symbols − Symbolic artefacts of material nature Heroes -people who embody values that are considered to be central to the organizational culture. The significant actions of organizational heroes are the stuff of organizational myths and legends, in which their behaviour is characterized as exemplifying typical organizational values and expected norms of behaviour. Hero status can be earned through one's own efforts or with the active support of organizational communication and motivational tools. In most cases, it is a combination of both. Analysis of Organizational Culture: Does the current culture fit the organizational strategy? If not, can the strategy be adapted to the current culture? If not, what kind of culture change is desirable? Is this change feasible?  What will be the cost of implementing this change? Can the expected gains exceed them? In what timeframe is the change realistically feasible? After all, isn't it better to try to change the strategy? Includes: The organization's goals and mission Internal directives, especially those concerning people management. Employees' observed behaviour and attitudes, i.e. how the organization solves problems, makes strategic decisions, deals with employees and customers, what behaviour it rewards, what types of people it hires or fires, usually show the organization's true values most clearly. Symbols, rituals, and celebrations, status symbols. Traditional stories. Forming an Organizational Culture: Spontaneous Controlled: − Vision and its communication − Communication focus − Responding to crises − Resource allocation − Role model − Appraisal, remuneration − Selection criteria Creating and changing an organisational culture takes time. The result of systematic and goal-oriented activities of the company's managers. Managers shape the culture of their organisation: − By focusing their primary attention and control,  − the way they respond to crisis situations, − the allocation of scarce resources, − the way they use their role models, − the way employees are evaluated, rewarded, and promoted, − the choice of criteria used in the selection of new staff. Benefits of healthy Organizational Culture: Performance orientation Company=team Open communication Mutual trust Strong motivation Loyalty Company’s climate - how people perceive the culture in the organization (how they see it and how they think about it). It is a relatively stable set of perceptions held by members of an organization regarding the characteristics and quality of the organization's culture. Signals of the company's performance climate: Friendly tone of the meeting Positive opinion of own production Positive word of mouth promotion of own company to the surrounding area Willingness to help a colleague Willingness to accept non-departmental complaints Friendly greeting of customers and visitors by all employees Not shifting responsibility to other employees or departments Volunteering to work over time  Friendly telephone operator, friendly doorman Team spirit The role of HR in culture change: Define Explain to others Evaluate the present and identify criteria for assessing progress Choose an approach Establish a plan of action