Explain how Organisational Culture Explain how Organisational Culture impact on the development of a impact on the development of a

strategic plan. strategic plan.

NASEEMA KAJEENASEEMA KAJEE

13/06/0713/06/07

Logically, we think that strategy Logically, we think that strategy should drive behavior. BUT in should drive behavior. BUT in reality, it’s the culture – the reality, it’s the culture – the underlying norms, belief systems underlying norms, belief systems – that dictates how effectively – that dictates how effectively people work together…people work together…

ORGANISATIONAL CULTUREORGANISATIONAL CULTURE

Every organisation has a particular cultureEvery organisation has a particular culture It comprises of an omnipresent set of assumptions It comprises of an omnipresent set of assumptions

which is often difficult to fathom and which directs which is often difficult to fathom and which directs activities with the organisation.activities with the organisation.

Organisational culture may be defined as the Organisational culture may be defined as the beliefs and shared values by people in the beliefs and shared values by people in the organisationorganisation

Examples:Examples: ““It’s the way we do things around here” (Hewlette It’s the way we do things around here” (Hewlette

Packard)Packard) ““Culture is the personality of our organisation, it’s Culture is the personality of our organisation, it’s

what we do when no-one is watching (IBM)what we do when no-one is watching (IBM)

CONTINUED….CONTINUED….

Shared values and beliefs form the Shared values and beliefs form the foundation of a particular culture that foundation of a particular culture that influences the activities in that organisation.influences the activities in that organisation.

It is entirely possible for two organisations It is entirely possible for two organisations in the same industry, even on the same in the same industry, even on the same street to feature divergent cultures.street to feature divergent cultures.

Their effectiveness is bond to differ as.Their effectiveness is bond to differ as. Clearly organisational culture is a specific Clearly organisational culture is a specific

collection of values and norms that are collection of values and norms that are shared by people and groups in an shared by people and groups in an organisation.organisation.

Continued….Continued….

The organisational culture controls the way The organisational culture controls the way the employees interact with each other and the employees interact with each other and the stakeholders outside the organisation.the stakeholders outside the organisation.

It determines the values, beliefs and ideas It determines the values, beliefs and ideas about what kind of standards of behaviour about what kind of standards of behaviour organisational members should use to organisational members should use to achieve the organisation’s goals.achieve the organisation’s goals.

From organisational values develop From organisational values develop organisational norms, guidelines or organisational norms, guidelines or expectations that presecibe appropriate expectations that presecibe appropriate behaviors in a situation.behaviors in a situation.

INGREDIENTS FOR INGREDIENTS FOR ORGANISATIONAL CULTUREORGANISATIONAL CULTURE

Focuses attention on the human side of Focuses attention on the human side of organisational lifeorganisational life

It clarifies the importance of creating It clarifies the importance of creating appropriate systems of shared appropriate systems of shared learning/meaning to help people work learning/meaning to help people work together towards a desired outcomes.together towards a desired outcomes.

It requires leaders, to acknowledge the It requires leaders, to acknowledge the impact of their behavior on organisational impact of their behavior on organisational culture.culture.

Encourages the view that the perceived Encourages the view that the perceived relationship between the organisation & it’s relationship between the organisation & it’s environment is also affected by the environment is also affected by the organisation’s basic assumptionsorganisation’s basic assumptions

CONTENT OF ORGANISATIONAL CONTENT OF ORGANISATIONAL BEHAVIORBEHAVIOR

The content of culture (visible & invisible) The content of culture (visible & invisible) influences the direction of behavior.influences the direction of behavior.

It is also noteworthy that culture affects It is also noteworthy that culture affects not only the ways managers & employees not only the ways managers & employees behave with the organisation but also the behave with the organisation but also the decisions they make about the decisions they make about the organisation’s relationship with its organisation’s relationship with its environment and its strategy environment and its strategy development.development.

OEGANISATIONAL CULTURE & OEGANISATIONAL CULTURE & STRATEGYSTRATEGY

Fisher (1992;2) maintains that an Fisher (1992;2) maintains that an understanding or the organisational culture understanding or the organisational culture is important to ensure the organisation’s is important to ensure the organisation’s success in a rapidly changing environment.success in a rapidly changing environment.

Given this statement, one immediately sees Given this statement, one immediately sees the link between strategy and culture.the link between strategy and culture.

““A radiply changing environment is part of A radiply changing environment is part of the organisations’s environment.the organisations’s environment.

Strategy is developed subject to the Strategy is developed subject to the dictates of the environment in which the dictates of the environment in which the organisation exists.organisation exists.

STRATEGIC PLAN/(NING)STRATEGIC PLAN/(NING)

Strategic plan is the organisation’s basic Strategic plan is the organisation’s basic path to the future.path to the future.

As a roadmap, the organisation’s strategic As a roadmap, the organisation’s strategic plan provides direction – its fosters co-plan provides direction – its fosters co-ordination at the top.ordination at the top.

Strategy development is therefor seen as Strategy development is therefor seen as the development of long range plans for the development of long range plans for the effective management of the the effective management of the organisation’s environmental opportunities organisation’s environmental opportunities & threats while taking into account the & threats while taking into account the organisation’s strengths weaknesses.organisation’s strengths weaknesses.

THE IMPACT OF THE IMPACT OF ORGANISATIONAL CULTUREORGANISATIONAL CULTURE

When the strenghts and weaknesses of When the strenghts and weaknesses of the organisation are determined, the organisation are determined, special attentention needs to be paid to special attentention needs to be paid to the nature of an organisation’s culture.the nature of an organisation’s culture.

Once SWOT analysis is completed the Once SWOT analysis is completed the organisation set goals and objectives.organisation set goals and objectives.

Organisational culture can hinder or Organisational culture can hinder or help the successful development/ help the successful development/ execution of the organisation’s goals execution of the organisation’s goals and objectives and objectives

CONTINUED….CONTINUED…. The content of culture is an asset to an The content of culture is an asset to an

organisation if it eases communication, facilitates organisation if it eases communication, facilitates organisational decisional making and control.organisational decisional making and control.

The result is increased productivity.The result is increased productivity. Culture can become a liability when important Culture can become a liability when important

shared values and beliefs interfere with the shared values and beliefs interfere with the organisation’s goals and objectives.organisation’s goals and objectives.

Because of the influence of the cultural content on Because of the influence of the cultural content on behavior, an individual or group:behavior, an individual or group:

- May not want to behave as called by the May not want to behave as called by the organisationorganisation

- May not understand how to behave efficiently and May not understand how to behave efficiently and appropriatelyappropriately

SummarySummary The above situtations happen when The above situtations happen when

cultural contents is in conflict with what cultural contents is in conflict with what needs to be done in order to reach the needs to be done in order to reach the organisation’s objectives.organisation’s objectives.

The more closely actual behavior matches The more closely actual behavior matches required behavior, the more productively required behavior, the more productively & effectively the individual and & effectively the individual and organisation accomplishes its object.organisation accomplishes its object.

There fore a successful culture must There fore a successful culture must support the organisation’s strategy. support the organisation’s strategy.

Significant changes in strategy must be Significant changes in strategy must be accomplished by modifications in culture.accomplished by modifications in culture.