2. 2
Agenda
Organizational culture
What is culture
An example
Behavioural Consequences
Unhelpful Behaviours
Implications
3. 3
Organizational culture is critical to how we manage upward and downward
Organizational Culture comprises the underlying beliefs and
assumptions about what the organisation is.
These beliefs are created as a result of successful responses
to past crises and problems over time.
Need an appreciation of the culture before we can manage
people in a meaningful manner.
4. 4
What is culture
"IBM's extraordinary success
Culture is always success based:- in the '60s and '70s was built
on one of the most dynamic
– Institutionalised learning of “what works” in stressful situations sales cultures in the world,"
Culture change requires very significant energy "They were very good, very
relentless, very focused. And
– Cultural beliefs develop huge inertia. There is great vested very individualistic."
interest in denying evidence that undermines these beliefs
Culture develops predominantly during periods of
crises
– Crises are required to motivate the abandonment of ineffectual
beliefs and the learning of new, effective responses
The external environment always develops more
quickly than an organisation’s culture responds
“The thing I have learned at
– Whilst originally success based, any cultural belief can become IBM is that culture is
more or less helpful over time given the changing context of the everything”
external environment
5. 5
An example of culture
Should not borrow money
Managers (Officers) are “superior” to Staff (Troops) but should socialise together
Discipline must be maintained (fear of anarchy and chaos)
Trappings are important rewards for rank
Size of budget, department, grade and job title all reflect an individuals worth
Allocation of resources should not be questioned because it is optimised by central
planning
Organisation structure and procedures are sacrosanct, they enable this huge
machine to operate
Most people are small cogs in the big machine - you can only understand the whole
from the top
Decisions are made by your boss. Must please your boss (and senior mgt in
general) to be individually secure
To be successful and get promoted your boss must be “winning”
The buck stops with the front line (managers are not accountable)
Do not take risks with the core products
6. 6
Behavioural Consequences Scenario 1
Some of the conflicting cultural beliefs drive some of the observable
schizophrenic management behaviours
Your boss must be “winning”
Behaviours:-
Managers are superior Rude and aggressive to subordinates
Sycophantic with bosses
Cautious and defensive with peers
Must please boss
7. 7
Behavioural Consequences Scenario 2
Other beliefs diminish the aspiration for more cross-functional working
Conclusions
Success comes from doing
individual tasks better
Work is best undertaken
within department
boundaries
Punished if fail to achieve Resultant Behaviours
personal objectives
Distrustful of
everyone outside of
Risk but no potential immediate clan
Structure is sacrosanct
benefit in cross- Little cross-
departmental working departmental
working
Must please boss(es)
to be secure Ganging-up
and bullying
Must demonstrate
To get on must work that I’m tough
for “winning” boss
Efficient managers are
rude and aggressive
8. 8
Unhelpful Behaviours
Culture is a strong driving force behind many of the commonly displayed,
unhelpful behaviours
– Hierarchical and un-empowered with little self responsibility
– Little commercial savvy
– Conformance to expectations, little innovation
– Commitment to inputs and process but little ownership for outputs
– Lots of futile, non-value-add, secondary activity
– Distrustful of everyone outside of immediate clan
– Little cross-department collaboration
– Blame each other (and especially bosses) for problems
– Lots of politicking
– Ganging-up and bullying
– Overly serious and excessively hard working
– Superficial arrogance covering deep seated insecurity
– Negative about future (it’s threatening rather than exciting)
9. 9
Implications
Know the culture
– Observation
– Engaging with others
– Learn from mistakes
Know the positive values
– Self confident, successful teams
– Trust and collaboration, (internally and with external parties)
– Commitment to and responsibility for achievements
– Enthusiasm, passion and energy
– More self-determinism
– Empowered decision making and risk taking
– Failures exploited as valuable learning opportunities
– Mutual appreciation, respect and support