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Cultures and Paradigms

Dr Tahir Rashid

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Overview

What is the concept of culture? The role of culture in developing

strategy

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Emergent v. Prescriptive Views

People are a vital resource HRM analysis is essential during the

development of strategy – emergent view

Some writers say HR issues considered only after strategy has been decided – prescriptive view

Emergent approach more popular

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SCA - HRM is often KFS

In some industries people are the key factor for success (KFS) - advertising and creative development

- leisure & tourism

- management consultancy

- hospitals & medical profession In other industries the ability of people

to cope with change maybe the only SCA

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What is Culture? (1)

Anthropology ... endless definitions, but …Interpretation of the worldActivities and artefacts that reflect this

interpretation

“Collective cognition” … sharing the cognitionValues, beliefs, attitudes, habits, languageSymbols, buildings, products

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What is culture? (2) Often referred to as “ the way we do things around here” Employees often oblivious to the existence of culture The source of competitive advantage?

How do organisations create value?

Why do organisations differ and how? Deep down: relationship between interpretations and

activities Routines

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Culture exists at various levels of society: National Culture

e.g. American, French, Britain

Industry culturese.g. mining, computing, restaurants, hotels

Occupational culturese.g. lawyers, accountants, doctors teachers

Organisational structure, managerial practices, work attitudes

Corporate culturese.g. IBM, Shell, Pepsico, Disney, Hilton

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International cultural perspectives

Hofstede’s five dimensions of culture:

Power distance: the extent to which those who are poorest in society are willing to accept their position

Individualism/collectivism: the extent to which societies are collections of individuals or are bound together into a cohesive whole

Masculinity/femininity: masculine societies see a sharp distinction in roles between the sexes: female societies see more equality

Uncertainty avoidance: the extent to which members of a culture feel threatened by the unknown

Confucian versus dynamism: long-term outlook versus living for today

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Charles Handy – 4 basic orgn. cultures

Power culture - typically found in small entrepreneurial companies controlled by powerful figures.

Role culture - is associated with bureaucracies where people’s functions are well defined.

Task culture - is found where people concentrate on their job or on a project.

Person culture - occurs where people believe the organisation exists to serve their personal interests for example barristers, architects and other professionals

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In reality few organisations fit any one classification

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Source: Adapted from E. Schein, Organisation Culture and Leadership, Jossey-Bass, 1985.

ParadigmTaken-for-granted

assumptions

Beliefs

Values

Culture in “three layers”

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Three layers of culture1. Values

often written down

statements about purpose, mission, objectives

usually general/vague (eg. Service to the Community)

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2. Beliefs

more specific usually overt/talked about eg the company should not trade

with Iraq or Iran

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3. Paradigm

Taken-for-granted assumptions► this is the real “core” of culture► difficult to identify and explain► often linked to the raison d’etre of

the organisation

Insights into the paradigm can be gained by analysing

the elements of the Cultural Web

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The ‘Cultural Web’

Symbols…visible representations e.g uniforms Power structures …e.g consultants in

hospitals Organisational structure….frameworks,

communication Control systems…..reward and punishment Routines and Rituals……know their place,

roles Stories….heroes and villains, tales of

achievement

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Stories Symbols

Rituals &Routines

Paradigm PowerStructures

ControlSystem

OrganisationalStructures

The cultural web of an organisation

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C:/misc.mettoweb

A Cultural web of the UK National Health Service - in the early 1990s

STORIES SYMBOLS

RITUALS & ROUTINES

PARADIGM POWER

CONTROLS ORGANISATION

• Cures• Villains (politicians)• Heroes and heroism• Change agents are fools• Abuse of managers• The golden age

• Terminology• White coats/uniforms• Retinues• Mobile phones• Doctors’ dining room• Big institutions• “Royal”

• Clinical rituals• Consultation ceremonies • Patient infantilising - waiting rooms - putting to bed - waking up• Ward rounds • Blaming next tier

• NHS is a ‘good thing’• Public service• Free at point of delivery• Clinicians values• Providers know best• Acute sector superior• “Ours”

• Fragmented - professional bodies - doctors - senior clinicians• Prima donnas• Old boy network• Politicians

• Financial reporting• Waiting lists• Consultant episodes• Professional responsibility

• Hierarchical• Mechanistic• Pecking order of services• Tribal/functional

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Strategic change

Change brings uncertainty, two main causes of change:-

1. Internal - desire for increased profitability, growth or some other objective e.g. quality or innovation

2. External – competitors or other environmental change

Orgn. can be analysed according to their ability to cope with change (next slide)

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Miles & Snow - Four strategic types and their approaches to strategy

Defender Organisation: • protect market share • hold current position

Analyser Organisation : • seek market opportunities but protect existing areas• hold market share but with some innovation

Prospector Organisation : • find new opportunities• exploit and take risks

Reactor Organisation : • respond only to others• often late and inadequate

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Implications

Organisational culture can be the basis of core competences underpinning competitive advantage.

Or the cause of strategic drift.

Strategies need to change at the point of their delivery.

”Everyday", routine, symbolic change is therefore vital.

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Linked to practice

How does this relate to your chosen organisation

How does this inform the strategy to adopt?

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References

Lynch, R. (2009) Strategic Management, 5th ed Harlow Prentice Hall

Johnson, G., Scholes, K. Whittington, R. (2008) Exploring Corporate Strategy, Harlow, Prentice Hall

Chopra D(2002) Leadership in People Management , London, CIPD, or www.cipd.co.uk

Senge P (1990) The leaders new work: building learning organisations, in Sloan management Review, Fall, pp7-22