Lecture 5 - National and Organisational Culture, Power and Change (1) PDF

Culture and Change Dr. Petya Koleva ©copyright, Heriot-Watt University, 2024  Objectives Pre-work: Google and Apple Videos. Applying Schein’s framework Approach to cultural analysis using the Cultural Web Learning and unlearning Po...

Culture and Change Dr. Petya Koleva ©copyright, Heriot-Watt University, 2024  Objectives Pre-work: Google and Apple Videos. Applying Schein’s framework Approach to cultural analysis using the Cultural Web Learning and unlearning Power Dynamics ©copyright, Heriot-Watt University, 2024  Pre-work Watch the two videos and consider What cultural artefacts are portrayed in the videos and what additional artefacts can you identify from your own experiences and interactions with these companies What are the espoused/documented cultural values that support these artefacts? Again, draw on your experience, knowledge or independent research if these are not evident from the video? What beliefs and assumptions do you think have led to these values being formed ©copyright, Heriot-Watt University, 2024  The Enquiry-Action Framework Uncover cultural Diagnosin context of change, g people’s established habits and ways of thinking  See what needs to be changed Explainin Enactin g g Communicate the Take action, change: dialogue? where to change: Styles? Top down? structure, Simple rules? culture, An interactive process, which can start from any stage:stakeholders what is enactment of practice for some might also be treated as part of a diagnostic by others ©copyright, Heriot-Watt University, 2024  What is culture? Why is it important? What (if anything) can we do to change it? ©copyright, Heriot-Watt University, 2024  Why is culture important? Culture shapes behaviour Friendly or aggressive Proactive or passive Concerned or not bothered Team worker or solo player Rule follower or rule breaker. ©copyright, Heriot-Watt University, 2024  Implications of culture Behaviour is not shaped by extrinsic and intrinsic motivators but by values, beliefs and assumptions. Culture guides actions but only when it is strong and unchallenged. Some cultures are better than others. If values, beliefs and attitudes can be learned, they can also be changed. ©copyright, Heriot-Watt University, 2024  Deal and Kennedy’s four types of culture Source: Deal and Kennedy (1982). ©copyright, Heriot-Watt University, 2024  Quinn and McGrath’s four types of culture Source: Quinn and McGrath (1985). ©copyright, Heriot-Watt University, 2024  Handy’s four types of culture Power – Power radiates out from the centre like a spider’s web. Found in small entrepreneurial companies, family dominated companies, etc. Role – Found in bureaucracies where the main emphasis is on compliance with rules and procedures. Task – The emphasis is on completing the job or project. Found in organisations which require teamwork, flexibility and speed, such as advertising agencies. Person – The individual is the central focus. Found amongst artists, performers, barristers and architects. Source: Handy (1986) Main cultures in the UK = Role and Task Handy (1986) ©copyright, Heriot-Watt University, 2024  Organisational Culture Inventory classifications Source: Jones et al (2006: 18). ©copyright, Heriot-Watt University, 2024  Organizational Culture Organizational culture is “how things are done around here” (Drennan, 1992:3) A culture is a set of basic tacit assumptions about how the world is and out to be that a group of people share and that determines their perceptions, thoughts, feelings, and to some degree, their overt behaviour. (Schein, 1996) Organizational culture elements: History Culture Language Established practice Emotional attachments and rejections They relate to taken-for-granted ways of seeing and doing things (embeddedness) – ‘recedes from view’ (Beech and MacIntosh) Organizational culture evolves slowly and cannot be changed ©copyright, from University, Heriot-Watt the top2024 down (Schein, 1996)  Cultural Analysis Process Stage Stage Stage Stage 1 2 3 4 Is the culture Construct Does the Are you integrated, culture web current oversimplifying differentiated for the culture inhibit or reifying the or organization culture or enable the fragmented? intended change? Beech and MacIntosh (2012, p. 73) ©copyright, Heriot-Watt University, 2024  Cultural Analysis Integrat Differentiat Fragment ed ed ed Culture Culture? Culture? ? Martin 1992, cited in Beech and MacIntosh (2012) ©copyright, Heriot-Watt University, 2024  Integrated Culture: consistency across different levels within the organization and across different functional or structural grouping. Shared values are deeply held. Disadvantages? Resistant to radical changes, reaching consensus, think out of box challenge Cultur Differentiated culture: Subcultures eg: occupational cultures : al engineer culture, executive culture, operator culture Disadvantages? Different perspectives, Analysi assumptions, hard to reconcile, communication across cultural boundaries, mutual s understanding Fragmented culture: The make-up of many individuals, individuals can belong to many groups, or not fully committed, shared little common ground. Disadvantages? Ambiguity, disagreement, communication ©copyright, Heriot-Watt University, 2024  The Cultural Web Stori Symb es ols Paradigm Power Ritual Core Values and s& Belief System Structu Routin res es Contr Organisati ol onal Syst Structur Johnson et al. em es (2016) ©copyright, Heriot-Watt University, 2024  The Culture Web Routines and Rituals The way we do things around here Special events that emphasise the way we do things around here e.g. formal training, informal socialising What would look odd if changed? ©copyright, Heriot-Watt University, 2024  The Culture Web Stories Embed the present organisation in its history Celebrate important events and personalities Highlight successes, disasters, heroes and mavericks ©copyright, Heriot-Watt University, 2024  The Culture Web Symbols Logos, offices, cars Forms of language (e.g. jargon) Organisational symbols / Status symbols ©copyright, Heriot-Watt University, 2024  The Culture Web Power Structures Hierarchy Powerful groups Those who can drive or block change ©copyright, Heriot-Watt University, 2024  The Culture Web Organisational Structure Reflect the power structure Reflect and impact on relationships e.g. a tall hierarchy can denote distinction between management and workers How formal or informal are the structures? ©copyright, Heriot-Watt University, 2024  The Culture Web Control Systems Measurements and reward systems emphasise what is important to the organisation Draw attention to certain behaviours and outcomes ©copyright, Heriot-Watt University, 2024  The Culture Web Stories Symbols Power Rituals & Paradigm Structures Routines Control Organisational Systems Structures ©copyright, Heriot-Watt University, 2024 Overcoming cultural barriers to change (Hill and McNulty 1998) The merger of a nursing college to the University ©copyright, Heriot-Watt University, 2024 “Culture hides much more than it reveals, and strangely enough what it hides, it hides most effectively from its own participants” Ed Hall (1959, p53)  Implications for strategic change Culture is the identity of an organization Culture can facilitate or hinder the change efforts Strategic Change is transformational only when it changes the culture Presenting logic of change only is not enough Changing organizational structure and systems is not sufficient Change needs to take account of everyday reality  Learning Human beings may be said to have learnt a skill when the use of the programme necessary to perform the requisite action is so much under control that control over its performance does not have to be conscious or explicit Argyris (1977 p.114) Akin to ‘system 1’ or fast thinks – Kahneman Trial and error , failures, disappointments , learning by doing (Kolb) Routinisation a source of problems? ©copyright, Heriot-Watt University, 2024  Creating a Learning Organization https://www.youtube.com/watch?v=TDYPW4ha DOUBLE LOOP LEARNING Errors are corrected by modifying the organization’s objectives, polices and standard routines Governi Action Resul ng Strategi Variabl es ts es SINGLE LOOP LEARNING Errors are corrected using past routines and present policies ©copyright, Heriot-Watt University, 2024  Unlearning is about over- coming Defensive Routines ©copyright, Heriot-Watt University, 2024  Defensive Routines (DRs) DRs are: “..policies or actions that prevent organizations from feeling pain or threat and simultaneously prevent learning how to prevent t the cause of the threat in the first place” (Argyris 1986, p.541). Single Loop routines that are no longer appropriate Addictive, habit-based and often sub-conscious You are running the DRs often appear when: show, but…. Moving from Single to Double Loop LearningThat’s interesting idea, but be careful Individuals and organizations with…. are full of DRs: Difficult to spot Very hard to change ©copyright, Heriot-Watt University, 2024  Learning Organisation https://www.youtu be.com/watch?v=lU P4WcfNyAA&t=12s Need to ask: will the change that we are planning necessitate dislodging any defensive routines or unlearn embedded practices? (Beech and MacIntosh 2012) ©copyright, Heriot-Watt University, 2024  National Culture Hofstede’s national clusters ©copyright, Heriot-Watt University, 2024  The GLOBE study (Global Leadership and Organizational Behavior Effectiveness) Key characteristics of national culture: Performance Orientation Assertiveness Future Orientation Humane Orientation Institutional Collectivism In-Group Collectivism Gender Equalisation Power Distance Uncertainty Avoidance. ©copyright, Heriot-Watt University, 2024  The GLOBE 10 Societal Clusters (1 of 2) Anglo cultures: England, Australia, South Africa (white sample), Canada, New Zealand, Ireland, USA Latin Europe cultures: Israel, Italy, Portugal, Spain, France, Switzerland (French speaking) Nordic Europe cultures: Finland, Sweden, Denmark Germanic Europe cultures: Austria, Switzerland (German speaking), The Netherlands, Germany (former East), Germany (former West) Eastern Europe cultures: Hungary, Russia, Kazakhstan, Albania, Poland, Greece, Slovenia, Georgia Source: Compiled from Gupta et al (2002: 13) and Javidan et al (2006). ©copyright, Heriot-Watt University, 2024  The GLOBE 10 Societal Clusters (2 of 2) Latin America cultures: Costa Rica, Venezuela, Ecuador, Mexico, El Salvador, Columbia, Guatemala, Bolivia, Brazil, Argentina Sub-Sahara Africa cultures: Namibia, Zambia, Zimbabwe, South Africa (black sample), Nigeria Arab-Middle East cultures: Qatar, Morocco, Turkey, Egypt, Kuwait Southern Asia cultures: India, Indonesia, Philippines, Malaysia, Thailand, Iran Confucian Asia cultures: Taiwan, Singapore, Hong Kong, South Korea, China, Japan Source: Compiled from Gupta et al (2002: 13) and Javidan et al (2006). ©copyright, Heriot-Watt University, 2024  Wilson’s culture perspectives (1 of 2) The integration perspective: This portrays a strong or desirable culture as one where there is organisation-wide consensus and consistency. The differentiation perspective: This emphasises that rather than consensus being organisation-wide, it only occurs within the boundaries of a sub-culture. At the organisational level, differentiated sub-cultures may co-exist in harmony, conflict or indifference to each other. Source: Wilson, (2001: 357). ©copyright, Heriot-Watt University, 2024  Wilson’s culture perspectives (2 of 2) The fragmentation perspective: This approach views ambiguity as the norm, with consensus and dissension co-existing in a constantly fluctuating pattern influenced by events and specific areas of decision- making (e.g. Frost et al, 1991). Rather than the clear unity of the integration perspective, or the clear conflicts of the differentiation viewpoint, fragmentation focuses on that which is unclear. Source: Wilson, (2001: 357). ©copyright, Heriot-Watt University, 2024  Dobson’s guide to changing culture Source: Adapted from Dobson (1988). ©copyright, Heriot-Watt University, 2024  Cummings and Worley’s six steps to culture change 1. Formulate a clear strategic vision. 2. Display top-management commitment. 3. Model culture change at the highest level. 4. Modify the organisation to support organisational changes. 5. Select and socialise newcomers and terminate deviants. 6. Develop ethical and legal sensitivity. 7. (Cummings and Worley, 2001: 509–11) ©copyright, Heriot-Watt University, 2024  Figure 7.1 The major elements of culture ©copyright, Heriot-Watt University, 2024  Figure 7.2 A structure–culture continuum ©copyright, Heriot-Watt University, 2024  Figure 7.3 A structure–culture–environment continuum ©copyright, Heriot-Watt University, 2024  Figure 7.4 A structure–culture mismatch ©copyright, Heriot-Watt University, 2024  Three perspectives on culture Optimists – culture can be changed, e.g. Peters and Waterman (1982) Pessimist – culture cannot be changed, e.g. Hatch (1997) Realists – parts of culture can be changed, e.g. Meek 1988). (Ogbonna and Harris, 2002) ©copyright, Heriot-Watt University, 2024  Warning ‘Culture as a whole cannot be manipulated, turned on or off, although it needs to be recognised that some [organisations] are in a better position than others to intentionally influence aspects of it.… (Meek, 1988: 469–70) ©copyright, Heriot-Watt University, 2024  Criticisms Strong cultures can make organisations resistant to certain types of change. Strong cultures may only suit organisations at certain stages in their development. Can bring short-term benefits but may also bring long-term stagnation and decline. Organisations also have subcultures. Timescale for changing culture: 6–15 years. Ethics: should we seek to control or manipulate people’s emotions? Culture cannot be controlled. ©copyright, Heriot-Watt University, 2024  Power and politics ‘It is difficult to think of situations in which goals are so congruent, or the facts so clear-cut that judgment and compromise are not involved. What is rational from one point of view is irrational from another. Organizations are political systems, coalitions of interests, and rationality is defined only with respect to unitary and consistent ordering of preferences’. (Pfeffer, 1978: 11–12) ©copyright, Heriot-Watt University, 2024  Authority and power? Authority: ‘The right to act, or command others to act, toward the attainment of organizational goals. Its unique characteristic, we said, was that this right had legitimacy based on the authority figure’s position in the organization. Authority goes with the job.’ Power: ‘When we use the term power we mean an individual’s capacity to influence decisions.... the ability to influence based on an individual’s legitimate position can affect decisions, but one does not require authority to have such influence.’ (Robbins, 1987: 186) ©copyright, Heriot-Watt University, 2024  What is politics? ‘[Politics is the]… efforts of organizational members to mobilize support for or against policies, rules, goals, or other decisions in which the outcome will have some effect on them. Politics, therefore, is essentially the exercise of power’. (Robbins, 1987: 194) ©copyright, Heriot-Watt University, 2024  Definitions (1 of 2) Authority: ─The right to act Power: ─The capacity to influence decisions Politics: ─The exercise of power. ©copyright, Heriot-Watt University, 2024  Definitions (2 of 2) Politics: ─ The exercise of power Legitimate use of politics: ─ The exercise of power by those entitled to in the interests of the organisation Illegitimate use of politics: ─ The exercise of power in pursuit of personal interests or by those not entitled to. ©copyright, Heriot-Watt University, 2024  The political view of organisations ‘A political view can explain much of, what may seem to be, irrational behaviour in organizations. It can help to explain, for instance, why employees withhold information, restrict output, attempt to “build empires”.’ (Robbins, 1986: 283) ©copyright, Heriot-Watt University, 2024  The conditions for political behaviour ‘Virtually all [writers] agree that for politics to occur, certain conditions must exist. There must be two or more parties (individuals, groups or large entities), some form of interdependence between the parties, and a perception on the part of at least one of the parties that divergent interests exist between them such that there is, or may potentially arise, conflict between the parties. Once these conditions exist, the subsequent actions of the parties involved will be deemed “political”.’ (Bradshaw-Camball and Murray, 1991: 380) ©copyright, Heriot-Watt University, 2024  Political ploys Source: From Kipnis et al (1980, 1984), Schilit and Locke (1982). ©copyright, Heriot-Watt University, 2024  Using power and politics Source: From Pfeffer (1992: 29). ©copyright, Heriot-Watt University, 2024  The four main types of power 1. Coercive power – the threat of negative consequences (including physical sanctions or force) should compliance not be forthcoming. 2. Remunerative power – the promise of material rewards as inducements to cooperate. 3. Normative power – the allocation and manipulation of symbolic rewards, such as status symbols, as inducements to obey. 4. Knowledge power – the control of information. (Etzioni,1975); (Robbins,1986) ©copyright, Heriot-Watt University, 2024  Favourite influencing strategies For influencing up (managers) – the use of reason. For influencing across (co-workers) – the use of friendliness. For influencing down (subordinates) – the use of reason. (Huczynski and Buchanan, 2001) ©copyright, Heriot-Watt University, 2024  Power tactics Source: Buchanan and Badham (1999: 27–9). ©copyright, Heriot-Watt University, 2024  Political behaviour Minimised when there is: ─ Stability ─ Agreement about goals ─ Openness. Maximised when there is: ─ Uncertainty ─ Conflict over goals ─ Secrecy. ©copyright, Heriot-Watt University, 2024  Organisational change Can: ─ Create instability ─ Challenge culture ─ Threaten existing power relations ─ Promote political behaviour. But it can also: ─ Restore stability ─ Recreate or support culture ─ Maintain existing power relations ─ Reduce conflict. It depends on the context. ©copyright, Heriot-Watt University, 2024  References Chapter 7 in Burnes, 2018 HILL. S. MCNULTY, D. 1998. Overcoming cultural barriers to change, Health Manpower Management, Vol. 24 Issue: 1, pp.6-12 OBGONNA, E. AND HARRIS, L.C. 2002. Managing organisational culture: insights from the hospitality industry. Human Resource Management Journal, 12.1, pp.22-53 SCHEIN, E. AND BROWN, A. 1998. Organizational Culture. London: Financial Times Prentice-Hall ©copyright, Heriot-Watt University, 2024