Organisational Culture

Introduction

Few issues influence organisational outcomes more than culture. Shaping members behaviour, beliefs and values, the internal culture of an organisation is a powerful tool, one effective leaders capitalise on to achieve competitive advantage. This essay argues that leadership is a crucial element of strong internal culture, in turn supporting an inclusive and multicultural organisation. To discuss this proposition, the approach taken is both theoretical and observational, comprising three sections. First, ‘Observable culture, core values and a preparatory view of diversity management’.

Second, ‘Multiculturalism, diversity management and the fundamental role of leadership’, and finally, ‘A critical reflection of multiculturalism and leadership within a known organisation’. Observable culture, core values and a preparatory view of diversity management. Schein (2010), defines organisational culture as incorporating three elements.

One, the behaviour of employees within the workplace. Two, the manner in which members learn throughout the organisations evolution and three, the imported assumptions, beliefs and values of new members and leaders. Leadership has been described as a fundamental element of strong internal culture (Schein, 2010), therefore, the strength of the internal culture is a reflection of the organisations leadership (Schermerhorn et al.

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, 2014). As an example of self-fulfilling prophesy (Schermerhorn et al., 2014), leadership governs whether internal culture is either an asset to an organisation, or a liability (Chatman & Cha, 2003). Strong organisational cultures are inclusive and cohesive, interconnecting employees with shared values and beliefs. Furthermore, a strong culture is one where managers actively communicate organisational objectives to members and the organisational strategy is closely aligned to those same objectives (Deal & Kennedy, as cited in Ross, 2000).

Conversely, weak cultures displays disjointed values and beliefs. While members may affiliate with a boss, co-worker or sub-culture, overall loyalty to broader organisational goals is fragmented (Smircich, as cited in Ross, 2000). Weak cultures rarely support and achieve the organisations strategic objectives (Ross, 2000).

Commonly, internal culture evolves due to the attitudes of the organisations founders or leaders (Schein, 2010), thereby highlighting the fundamental importance of leadership to the development of strong internal culture. Astute leaders recognise any dysfunctional elements of culture and implement change initiatives (Schein, 2010), in turn guiding the organisation towards increased performance and sustainable competitive advantage (Chatman & Cha, 2003). Achievement of strong internal culture and competitive advantage is gained when managers incorporate a three pronged approach. First, by establishing shared values and beliefs. Second, by ensuring operating procedures are aligned with established principles and finally, by demonstrating commitment towards the individuals and teams within the internal environment, for example, members, customers and stakeholders (Schermerhorn et al., 2014; Ross, 2000). While organisational culture can be explored on many different levels (Schein, 1984), most commonly, it is described on two levels, ‘observable’ culture and ‘core’ culture (Schermerhorn et al., 2014). Schein (1984) describes observable culture as ‘how’ the environment was created and ‘what’ behaviour is displayed amongst members.

Observable culture is visible, what can physically be seen and heard within the environment, for example, the office layout, manner of dress and style of communication. It is through strong observable culture that the organisations values and beliefs are reinforced to existing members and learnt by new members (Schermerhorn et al., 2014). The observable culture is reflected in the customs of its members, including stories, heroes, symbols and rites and rituals (Schermerhorn et al., 2014). First, stories serve to communicate and reinforce culture by illustrating an account of organisational life (Karathanos, 1998). A positive connection has been shown linking organisational commitment to the number and type of stories told. (Wilkins, as cited in Karathanos, 1998). Second, heroes are people both past and present who display core organisational values, in turn, reinforcing the organisations values and providing a benchmark for expected performance. Third, symbols characterise actions, for example, shaking hands and language specific to the organisation (Karathanos, 1998). Lastly, rites and rituals describe events such as Christmas parties, award ceremonies and regular meetings.

The rites and rituals within an organisation reinforce connectedness between members (Schein, 2010). A symbolic manager is one who integrates these four elements of observable culture into their leadership, in turn encouraging others to do so (Schermerhorn et al., 2014). While observable culture describes the ‘how’ and ‘what’ behind internal culture, the underpinning rationality is more elusive, that is ‘why’ members behave the way they do (Schein, 1998, p. 3). To understand why individuals and groups display certain characteristics, it is necessary for managers to look at the “second and deeper level of culture” known as core culture. (Schermerhorn et al., 2014, p. 67). The core values of an organisation extend beyond the beliefs or ‘norms’ of an organisation to incorporate underlying assumptions, or “taken-for-granted qualities” (Schein, 1984, p. 3).

Underlying assumptions develop through group experience, thereby reinforcing member’s behaviour, work and the integration of new members (Martin, 2003). While core values are often unconscious, it is these values that determine how members interact within the internal environment (Schein, 1984). The strength of core values is a contributing factor to organisational performance, to support this, studies have shown that achievement of long term organisational success stems from a commitment to an organisations core values (Schermerhorn et al., 2014). Managers therefore must ensure core values meet three benchmarks. First, are the core values relevant to the organisations objectives? Second, have the core values been effectively communicated across the organisation and widely known by all members, and third, have the core values been accepted by all members (Schermerhorn et al., 2014)? In addition to developing and maintaining strong observable culture and core values, managers must also recognise organisational subcultures as a vital and interconnected component of internal culture. Just as subcultures exist within society, they equally exist within organisations. Subcultures commonly fall into four categories (Schermerhorn et al., 2014).

First, occupational subcultures are based on hierarchical levels. Second, functional subcultures are based around divisions within an organisational, for example, departments (Jermier, Slocum, Fry, Gaines, 1991). Third, “ethnic or national” subcultures include demographic differences such as ethnicity and gender (Schermerhorn et al., 2014, p. 75), and fourth, generational subcultures refer to generation gaps amongst ‘baby boomers’, ‘generation Xers’, ‘generation Yers’ and the ‘next generation’ (Schermerhorn et al., 2014, p. 75). Understanding distinctions between subcultures is of critical importance to managers when implementing effective cultural change initiatives (Linnenluecke & Griffiths, 2010).

However, how do managers implement change initiatives when “one subculture is in ‘majority’ status while others become ‘minorities’ in respect to representation within the organisation” (Schermerhorn et al., 2014, p. 76)? To answer this question, an historical view of Equal Opportunity (EO) is required (Moss, 2010). Equal Opportunity polices were introduced in the 1960’s and 1970’s (Kirton & Green, as cited in Moss, 2010). Then, in the 1980’s, as part of “expanding equal opportunity laws and heightened concerns over discrimination litigation”, diversity management initiatives emerged (Dobbin; Kelly & Dobbin., as cited in Roscigno, Wilson, & Berrey, 2014, p. 349). The basis of equality policies centred on legal compliance and equality based on the assumption of sameness (Gagnon & Cornelius, 2000). According to Alvesson and Billing (as cited in Moss, 2010, p. 4), this mindset established acceptance that “white, non-disabled, heterosexual men’s experiences and interpretations of organisational life were universally applicable”. While minority groups and women have made advancements into professional positions, they continue to remain largely underrepresented compared to male colleagues (Tomaskovic-Devey & Stainback as cited in Roscigno, Wilson, & Berrey, 2014, p. 349).

The challenge todays managers’ face is using “modern management approaches” to eliminate workplace inequality (Schermerhorn et al., 2014, p. 46). In response to this challenge, diversity management offers a solution (Roscigno et al., 2014). While equal opportunity is founded in legal and policy compliance, in contrast, the premise of diversity training is founded on organisational initiative and “equality through difference” (Gagnon & Cornelius, 2000, p. 69). The presence of difference extends to ethnicity, race, gender, “the disabled and any other under-represented group” (Gagnon & Cornelius, 2000, pp. 68-69). A culture built on diversity management meets members “self-actualisation needs” (Schermerhorn et al., 2014, p. 44) thereby creating an internal environment allowing individuals and groups to reach their full potential (Schermerhorn et al., 2014).

The responsibility of leading an organisation towards cultural change initiatives however, does not fall only to the ‘chosen few’, that being those individuals who hold key positions of leadership (Schermerhorn et al., 2014, p. 68; Stanford, 2011, p. 106). While it is the role of top management to set the cultural framework, all managers, regardless of title and position are responsible for “change leadership” (Schermerhorn et al., 2014, p. 440). Multiculturalism, diversity management and the fundamental role of leadership. Diversity is a term used to describe differences amongst individuals, most commonly when referring to age, gender, race, ethnicity and nationality (Schermerhorn et al., 2014). Encompassing acceptance and respect, diversity forms an integral component of internal culture. Therefore, managers must be responsive to changes in “environmental trends” (Schermerhorn et al., 2014, p. 60) and modify operations accordingly as increasingly, organisations become more diverse (Moss, 2010). As organisations become more diverse, so too does the organisation’s “specific environment” (Schermerhorn et al., 2014).

In response to increased culturally diverse consumers, managers must ensure the organisation delivers a more diverse work force (Allen, Dawson, Wheatley, White, 2008). Incorporating the differing views of members ensures better decision making and creative problem solving is expedited (Schermerhorn et al., 2014), in turn, organisations “respond to its customers or other stakeholders with more creative and innovative products and solutions” (Gardenswartz, Cherbosque, & Rowe, 2010, p. 74). Adapting to diversity in this manner maintains a continued commitment to “total quality management” (Schermerhorn et al., 2014, p. 71), presenting the organisation with a significant competitive advantage. To capitalise on the competitive advantage created by diversity, leaders are urged to create multicultural organisations. A multicultural organisation is one of three organisation types, each “with varied implications for diversity”, (Msibi, 2011, p. 170).

First, the monolithic organisation, second, the plural organisation and finally the multicultural organisation (Cox, 1991). The monolithic organisation is highly homogeneous and is characterised by minimal “structural integration” (Cox, 1991, pp. 36-37). The plural organisation, as opposed to the monolithic organisation promotes inclusiveness amongst individuals though compliance to workplace legislation (Cox, 1991). However, the plural organisation presents a slanted model of integration due its reliance on legal compliance (Gagnon & Cornelius, 2000). This poses a major shortcoming, distinguishing it from the multicultural organisation (Cox, 1991). The multicultural organisation, as argued by Sales & Mirvis (as cited in Cox, 1991), is not one that simply contains culturally diverse individuals, this instead describes a plural organisation.

To be considered multicultural an organisation must value diversity, in conjunction with containing it. In opposition to the plural organisation which is “making efforts to conform to equity policies, with some limitations” (Msibi, 2011, p. 170), the multicultural organisation has overcome those limitations (Cox, 1991). As equal opportunity policies were introduced, a transition commenced away from monolithic organisations (Moss, 2010). While managers today predominately work within plural organisations, the question is how do organisations move from pluralism to multiculturalism (Cox, 1991)? In response, organisations must extend beyond legal compliance and instead, fully integrate diversity management as part of the organisations “value chain” (Schermerhorn et al., 2014, p. 49), thereby positioning diversity as a major component of the corporate strategy (Moss, 2010).

In support of an organisations move towards multiculturalism, Cox (1991) provides six strategies. One, establish pluralism, where cultural identities, values and behaviours are maintained in accordance with legal compliance. Two, ensure any connection between minority culture members and job status is eliminated. Three, provide assistance with career development through mentoring and support groups. Four, eliminate cultural bias, specifically discrimination and prejudice. Five, ensure members personally identify with and define themselves as members of the organisation, and six, eliminate conflicts between minority and majority members.

In support of these six strategies, Roosevelt (2011) discusses four strategic elements required for the development and implementation of a diversity management plan. First, understand the context of diversity. Second, effectively plan for diversity management. Third, strategically implement the diversity plan and finally, effectively implement the diversity plan. Critical reflection of multiculturalism and leadership in a known organisation This section examines my own observations of multiculturalism in a known organisation. I will discuss my current workplace, where my position is Human Resource and Compliance Manager. I will argue that management has historically failed to influence multiculturalism, however presently, change initiatives are occurring. The organisation is a Defence contractor. While the organisation is civilian, 43% of members are ex-military, including 30% of management.

Therefore, the military psyche is indoctrinated into the organisations culture. The organisation has historically been monolithic in its operations, characterised by high levels of white males and low levels of women and culturally diverse individuals within management roles (Cox, 1991). Recruitment and selection is one example where management has failed to influence multiculturalism. Historically, recruitment has fostered the “similarity-attraction effect” (Chatman & Cha, 2003, p. 26). To illustrate this point, 92% of members are male, 4% of members are culturally diverse and 2% of females hold management positions. Lack of inclusiveness is another example where management has failed to influence multiculturalism. With almost zero “structural integration” and medium to high levels of “intergroup conflict” (Schermerhorn et al., 2014, p. 74), member identity is closely aligned to past rank or current position title.

For example, ex-military members impose bias over other ex-military members based on previous rank, and non ex-military members have expressed reluctance to apply for promotional positions. Since February 2014, a ‘culture survey’ project has been underway. The objective is to measure cultural attitudes in a move towards multiculturalism. The methods used have been inclusive. A “quality circle” was formed (Schermerhorn et al., 2014, p. 72), although we called it a ‘survey consultative committee’. The committee consisted of 16 volunteer members who autonomously developed the survey. Once survey results are codified, approximately mid June 2014, an additional committee will form to make recommendations on appropriate change initiatives – it is a bottom up approach to management (Schermerhorn et al., 2014). While I have encountered resistance to this “change leadership” (Schermerhorn et al., 2014, p. 440) from my peers within the management group, the initiative has been well received by other staff.

Conclusion

In conclusion, this essay has demonstrated that effective leadership coupled with multiculturalism, inclusiveness and diversity management form an intermeshed relationship resulting in strong organisational culture. In an increasingly diverse environment, innovative managers promote multiculturalism and inclusiveness by being adaptive in changing circumstances; moving away from compliance based leadership and instead evolving towards a multicultural organisation, one where diversity management is embedded within the organisations corporate strategy. While multicultural organisations achieve better business outcomes and gain competitive advantage, ultimately, organisational excellence is determined by the managers’ commitment towards and ability to lead a workforce founded on inclusiveness and multiculturalism.

References

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Bringing a Change in Organizational Culture

Critically explain why changing organisational culture is so difficult and how managers can do it. Culture can be defined as “a set of basic tacit assumptions about how the world is and ought 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 is depend on differences in norms and shared values which are learned in workplace and to direct behaviour of members in the particular organisation. Cabrera, Cabrera& Barajas 2001) Organisational culture was built on its shared beliefs and values which was the guidance to solve problems. This essay will introduce the definition of organisational culture and explain why changing organisational culture is so difficult. The main reasons are the fear of uncertain future and difficult to establish the organisational culture. In addition, the essay is to interpret how managers can change organisational culture and how does it work.

Managers can change organisational culture through communication and management strategies. This essay may introduce the detail about changing organisational culture. Most scholars think that changing organisational culture is difficult; however a few people think it is easy to change organisational culture. As Chu (2003) stated that organizational culture is contributed to change. In his opinion, organisational culture can collect different values and actions to form a frame to guide the behaviour of members within an organisation.

In other words, organisational culture can shape what employees do in the company and control tendency of company. For example, a company may have employees who are unwilling to change and who are conductive to change, if managers recruit staff that are innovated and willing to change, they may be the new power to change organisational culture. Therefore, to form a “change” culture can make changing organisational culture easier. However, it is also difficult to establish an organisational culture. It is need to experience a long time and face lots of difficult and challenges.

According to levels of cultural analysis (Wood 2004), it shows how difficult to form the organisational culture, especially the deepest level of cultural analysis: common assumption. Common assumptions are to collect truths that organisational employees shares as a result of their common experiences and that direct beliefs and behaviours. It is extremely hard to isolate these modes, but it is interpret why culture is full of organisational life. It is hard to shape common assumptions if members of the organisation do not experience same ups and downs or cooperate long time.

As Ferrara-Love (1997) stated that organizational culture does not appear in a night. On the contrary, organisational culture evolves during the time, and is the collective beliefs of individuals who worked together. Therefore, it is hard to establish organisational culture, to say nothing of changing organisational culture. At the same time, it is debatable to recruit plenty employees when the company want to change organisational culture. The new power is unstable to the company. It is hard for managers to control the new employees and it still need to cost much time.

To conclude, it is difficult to change organisational culture. Organisational culture plays an ineradicable role to different kinds of organisational behaviours and members within organisations. Thus, it is always failure if certain problems of organisational culture were not being considered. Moreover, if managers want to change organisational culture which focuses on shared values or beliefs, it will be more difficult; because on the deepest of organisational culture, it formed invisible and omnipresent old guard or power which makes organisational change failure.

As Locus and Kline (2008) stated that organizations always appear “learning disability” and “defensive routines” which obstruct the learning and organizational change. It shows the strong of conservative power. When managers try to change the organizational culture, they always face opposition. What was worse, the conservative power always important to the organisation. They make huge contribution to the company, which used to promote the development of company. Therefore, they play an important role to organisation. It is difficult for managers to challenge their authority.

Moreover, the reason people do not want to change is the nature of people. People are easy to be used to do one thing and do not want to accept new thing. They are afraid of the unknown thing after change. As Ferrara-Love (1997) stated that people are comfortable with exist ways to finish the work. In their opinion, change is just the threat to their peaceful. Thus, they do not want to change organisational culture and dispute to change. It is obvious that changing organisational culture is so difficult. Leadership is the key to change organisational culture.

The achievements of an organisation mostly depend on the leadership of managers. As Fishman and Kavanaugh (1989) stated that the culture of an organization and how employees want to change was formed substantially by leader. For example, if managers uphold to change organisational culture steady and have enough ability to direct staff, it will achieve maximum results with little effort to change organisational culture. Thus, managers are the guidance of the company; they are main factor to change organisational culture.

Clement (1994) also expounded that management leadership is basic factor in a major organisational change effort. From this, it can be seen that the importance of leadership in change organisational culture. However, it is hard to change managers. If managers are not satisfied with their employees, employees can be changed, but managers will not changed unless the company go bankrupt. Thus, the most difficult to change organisational culture is to change the mind of managers. For instance, if managers make no attempt to make progress and milk-toast, it will be the most resistance to change organisational change.

For this reason, the best way to change is from up to bottom. At the same time, change the mind and ability of leader is the difficult demand for changing organisational culture. To change organisational culture, managers have lot of things to do it. The role of managers is very important through up down system. As Ott (1989) suggested that the leader can do lots of things included staff selection, socialization, removal of deviating members, cultural communication and role model to guide behaviour. For example, managers can choose employees who will support to change organisational culture.

Although it will not change the situation directly, they can be the power push the step of changing organisational culture. In the same way, managers can fire part of staff who opposes to change. It is not only reducing resistance to change organisational culture, but also overawe the opponent to change their minds. Furthermore, managers need to be the role model to change organisational culture. The behaviour of managers can be the maximum power to guide behaviour of managers. For example, when managers try to change organisational culture but not to do anything to change it, employees will not follow managers with any anxiety.

To sum up, it is important to be the role model of changing organisational culture for managers. Furthermore, communication is an important tool for managers to change organisational culture. According to Fry (2003), he examined that leadership as motivation to change; managers need to communicate with employees about their feelings. In other words, managers should get in touch with employees and let them know core values of changing organisational culture and the need of changing organisational culture. The employees may understand the determination of managers and why to change organisational culture.

Then, they can have their decision about changing organisational culture. In this way, it can reduce the distance between managers and employees, and let employees think they are also the participants to change organisational culture, they are not insignificant. When employees think they are the part of changing organisational culture, they will follow managers and try their best to help managers. At the same time, managers communicate with employees also can understand what employees think about and then do well about interactive. In addition, it can reduce the fear of employees about unknown future.

As Kanter, Stein and Jick (1992) stated that communication is basic tool within any change process and failure to change always because of the feeling uncertain and anxious about their future. Thus, communication is very significant for managers to change organizational culture. In addition, to help employees to change organisational culture, managers need to teach them related skills and knowledge to work differently. As Ke and Wei (2007) suggested that employees thought to learn skills and knowledge as their main responsibility. Thus, employees may accept skills and knowledge easier than accept directly new culture.

When they understand how to do, it may easy for them to accept to change organisational culture. At the same time, it is also the good way to remove their fear to uncertain future. When they master relevant skills and knowledge, they will be confident to deal with change of organisational culture. In this way, they will not fight against to change organisational culture as before. Then they can be the power help to change organisational culture. The most important things to change organisational culture are to change origin perception and beliefs.

According to the definition of organisational culture, if managers want to change organisational culture, they must change shared values. The same as Whitely (1995) said that, managers need to be able to help employees to remove the past values which are not consistent with current shared vision of future organizational arrangements. The shared values and beliefs are keys of the organisational culture. Thus, managers need to change origin values of employees to change organisational culture. For example, managers can change new uniform to show the new the new appearance of company.

According to Wood (2006), managers can create processes, systems and ways of working that enable to put the new values into practice. The new values can take place of the past one. In addition, managers can recruit and select new employees to help change origin values. As Harris and Metallinos (2002) stated that new employees were outside the company who did not affect by origin organizational culture, thus they were easy to accept new culture. That is why managers to select new employees to enlarge the power to change organizational culture.

The new values and beliefs can be brought into the company in this way. In the same way, managers can retrain employees and engraft new rules to them, although it will not have better effect than new employees, it also can help to change organizational culture. In a word, managers need to create new values and beliefs to substitute origin one. Technology change also can promote to change organisational change. Although Weick (1990) thought technology change may make people anxiety about the values of new technology to their work, the new technology is the progress to organisational culture.

There is no doubt technology change may improve work efficiency which may improve organisational culture. As Harris and Metallinos (2002) suggested that the application of new technology and subsequent development of system would promote standardization. The implementation of new technology can make employees understand new things which break routine. It also can be the sally port to open the mind of employees, let them know advantages of changing. When they can accept technology change, it is easy for them to support to change organisational change.

Thus, managers can first bring in advanced technology to improve organisational change. Then teaching them to learn about it and establish new values in this process. This essay introduces what are the organisational culture and two main parts of organisational culture, the reason why changing organisational culture is difficult and how managers do to change it. This essay support to change organisational culture is so difficult because of the fear of unknown and difficult process to form organisational culture.