Unit 603 Organisational Culture

•Unit Name: Organisational Culture

•Unit code: F/617/4454

•Unit Name: 603

Unit Aim

The aim of this unit is to equip professional managers and leaders with an understanding of the role and impact of culture within organisations and the approaches to make and sustain cultural change.

Keywords

• Culture, identity, influence, impact, theory, interrelationships, leadership, barriers, vision, position, planning, change.

Learning Outcomes

1. Understand the role of culture within organisational contexts.

2. Understand approaches required to make and sustain cultural change.

Learning Outcome 1:

Consider the impact of culture within different organisational contexts.

Assessment Criteria

A.C. 1.1 Consider the impact of culture within different organisational contexts.

A.C. 1.2 Critically examine the factors which influence organisational culture.

A.C 1.3 Critique the interrelationship between culture and leadership.

A.C. 1.1 Consider the impact of culture within different organisational contexts

The Command Verb is CONSIDER - which means take (something) into account (i.e. different ideas, perspectives, theories, evidence) when making a judgement.

Indicative Content

Consider how cultural norms and values shape interactions and decision-making processes.

Consider how culture impacts the organization's reputation both internally and externally. Analyze how cultural practices and behaviors contribute to the perception of the organization by stakeholders.

Apply relevant theoretical perspectives and frameworks such as the Gods of Management by Handy and the Competing Values Framework by Quinn and Cameron to analyze and understand organizational culture and its impact.

Utilize recognized definitions of culture such as those proposed by Schein and Deal and Kennedy to provide a clear understanding of what constitutes organizational culture.

Take into account the specific context of the organization including its purpose, governance structure, legal status, organizational structure, type, and levels of maturity. Consider how these contextual factors interact with and shape organizational culture.

Consider different ideas, perspectives, theories, and evidence when analyzing the impact of culture within different organizational contexts. Avoid simplistic or one-dimensional assessments by incorporating a diverse range of viewpoints.

Based on the analysis of cultural impact within different organizational contexts, make reasoned judgments about the significance and implications of cultural factors for organizational behavior, performance, and outcomes.

A.C. 1.2

Critically examine the factors which influence organisatio nal culture.

The Command Verb is CRITICALLY - which means typically used to qualify verbs such as evaluate, assess, appraise, analyse and reflect. Give in-depth insight, opinion, debate, and verdict based on a wide variety of sources, theory, and research which may agree and contradict an argument.

Indicative content

Begin by defining what organizational culture is and why it is important for an organization's functioning and success. This sets the context for understanding the factors influencing it.

Identify a range of factors that are known to influence organizational culture. These could include leadership styles, organizational structure, communication channels, reward systems, industry norms, societal influences, etc.

For each identified factor, provide a critical analysis of how it impacts organizational culture. Consider its strengths, weaknesses, and potential implications for the organization. Look at both internal and external influences.

Explore different perspectives or theories related to each factor. This could involve referencing academic literature, case studies, or expert opinions to provide a well-rounded view.

Recognize that these factors often interact with each other in complex ways. Analyze how these interactions shape the overall culture of the organization.

Illustrate your analysis with real-world examples where appropriate. This helps to contextualize your arguments and demonstrate a practical understanding of the concepts.

A.C.1.3. Critique the interrelationshi p between culture and leadership

The Command Verb is CRITIQUE - which means a detailed analysis and assessment of something, especially a literary, philosophical, or political theory.

Indicative content

Discuss various dimensions of culture such as Hofstede's cultural dimensions or other relevant frameworks. Analyze how these dimensions influence leadership styles and behaviors.

Investigate different leadership styles such as transformational, transactional, charismatic, situational, etc. Evaluate how cultural factors shape the adoption and effectiveness of these leadership styles.

• Use real-world examples or case studies to illustrate the interplay between culture and leadership. Analyze how leaders from different cultural backgrounds navigate challenges and opportunities within their organizations.

• Encourage critical thinking by questioning assumptions and exploring contradictions. Assess the limitations and strengths of existing research on the topic.

• Based on the analysis, provide recommendations for organizations or leaders to effectively manage cultural diversity and leverage it for better leadership outcomes.

• Acknowledge alternative viewpoints and interpretations regarding the relationship between culture and leadership. Discuss how different theories or perspectives offer diverse insights into this complex interrelationship.

Learning Outcome 2: Understand approaches required to make and sustain cultural change.

Assessment Criteria

A.C. 2.1 Discuss the approaches to make and sustain cultural change.

A.C. 2.1. Discuss the approaches to make and sustain cultural change

The Command Verb is DISCUSS - which means give a detailed account including a range of views or opinions, which include contrasting perspectives.

Indicative content

Explain how it involves modifying beliefs, behaviors, and norms within an organization or society.

Discuss various theoretical frameworks or models used to understand cultural change, such as Lewin's Change Management Model, Kotter's Eight-Step Process for Leading Change, or Schein's Organizational Culture Model.

Describe general strategies commonly employed to initiate and sustain cultural change. This might include strategies like communication plans, employee involvement initiatives, leadership support, and organizational restructuring.

• Address the challenges and considerations associated with cultural change efforts, such as resistance from employees, cultural clashes, or the need for long-term commitment and resources.

• Discuss how the effectiveness of different approaches can vary depending on the context, organizational culture, and specific goals of the change initiative. Encourage critical thinking about the pros and cons of each approach.

• Offer general recommendations for organizations embarking on cultural change journeys based on the discussed approaches. Summarize key points without explicitly providing solutions.

Reference

• Charles Handy, Gods of Management: The changing work of organisations, Oxford University Press, 1995

• Deal, T.E. & Kennedy, A.A., 2000. The new corporate cultures : revitalizing the workplace after downsizing, mergers and reengineering, New York : Basic Books.

• Schein, E.H., 2004. Organizational culture and leadership, San Francisco: Jossey-Bass

• Atkinson, P.E. (1990), Creating Culture Change: The Key to Successful Total Quality Management, Pfeiffer, London.

• Becker, S.W. (1993), “TQM does work; ten reasons why misguided attempts fail”, Management Review, May, pp. 32-3.

• Coca-Cola Official Website. Coca-Cola Corporation. Coca-Cola Corporation, 2011. Web.

• Hayes, Johns. The Theory and practice of Change Management. New York: Palgrave Macmillan, 2010. Print.

• Hiatt, Jeff, and Creasey Timothy. Change management: the people side of change. Colorado: Prosci, 2003. Print.

• Kalmar, Anthony. Human Resource Management, A Strategic Approach. South-Western, Thomson Learning, 2002. Print.

• Newman, Janet. Modernising Governance. Belmont: SAGE Publications, 2001. Print.

• Sadler, Philip, and James Craig. Strategic management. London: Kogan Page Publishers, 2003. Print.

• Oboro, Virtue. (2022). Changes in Coca - Cola from the pandemic. 10.13140/RG.2.2.29850.52168.

• https://d1io3yog0oux5.cloudfront.net/cocacolacompany/files/pages/cocacolacompany/db/761/ description/2022_CAGNY_GNG_reconciliations.pdf

• Blumenthal, B. and Haspeslagh, P. (1994), “Toward a definition of corporate transformation”, Sloan Management Review, Vol. 35 No. 3, pp. 101-6.

• Brown, M.G. (1992), “Baldridge Award Winning Quality: How to interpret the Malcom Baldridge Award Criteria”, 2nd Edition, Milwaukee: ASQCBurnes, B. (2004a).

• Kurt Lewin and the planned approach to change: a reappraisal. Journal of Management Studies, 41(6),977–1002.

• Morrison, M. (2013) Strategic business diagnostic tools: theory and practice. Create Space Independent Publishing.

• Turner, S. (2002), Tools for success: a manager’s guide. London: McGraw Hill.

• Dobbs, M. E. (2014) Guidelines for applying Porter's five forces framework: a set of industry analysis templates. Competitiveness Review. Vol. 24, No 1, pp32-45.

• Jung, T., Scott, T., Davies, H. T. O., Bower, P., Whalley, D., McNally, R., & Mannion, R. (2009). Instruments for Exploring Organizational Culture: A Review of the Literature. Public Administration Review, 69(6), 1087–1096.

http://www.jstor.org/stable/40469029

Introduction

• Organisational culture is a system of shared assumptions, values, and beliefs, which governs how people behave in organisations.

• These shared values have a strong influence on the people in the organisation and dictate how they dress, act, and perform their jobs.

• Every organisation develops and maintains a unique culture, which provides guidelines and boundaries for the behaviour of the members of the organisation.

• Organisational culture is often taken in conjunction with climate, ideology, and style that makes the concept much confusing.

• Organisational culture can be described as the accepted and patterned ways of behaviour of a given people (overt organisational behaviour), body of common understandings (group and organisational norms) and an organisation’s way of thinking feeling and acting (ideology and philosophy).

• Organisational culture is a cognitive framework consisting of attitudes, values, behavioural norms and expectations shared by organisational members.

• Even the organisations concerned with identical activities or that provide similar products or services can be very different from one another.

• Organisational culture is the system of shared beliefs and values that develops within an organisation and guides the behaviour of its members.

Values and beliefs which support Organisational Goals

• The culture of the organisation, if it is positive and helpful can help to motivate staff or at least prevent them from becoming dissatisfied.

• At IBM, the attitude of management to their employees is an attraction to prospective staff and would probably help maintain the staff that they have.

• If the climate does not satisfy the needs of staff, then it will probably become a demotivator,- that is that it would cause dissatisfaction and so people would become less inclined to want to work towards the organisational goals.

Things in an organisation which contribute to the culture or climate

• The organisational structure of reporting and relationships

• Company policy

• Personnel practices

• Work flow and work loads

• Job design

• Management and supervisory styles.

Things which can affect the organisational culture or an individual or personal level.

• Levels of trust

• Risk taking

• Stress

• Fears and anxieties

• Social interaction

• Factions and politics

Organisatio nal culture

Organisational culture is often described in terms of its cause and effect.

• Outcomes - Defining culture as a manifest pattern of behavior. Many people use the term culture to describe patterns of cross individual behavioral consistency.

• For example, when people say that culture is “The way we do things around here,” they are defining consistent way is in which people perform tasks, solve problems, resolve conflicts, treat customers, and treat employees.

• Process - Defining culture as a set of mechanisms creating cross individual behavioral consistency.

• Culture is defined as the informal values, norms, and beliefs that control how individuals and groups in an organisation interact with each other and with people outside the organisation.

• According to Kroeber and Kluckholn (1952) culture consists of patterns, explicit and implicit, of and for behavior acquired and transmitted by symbols, constituting the distinctive achievement of human groups, including their embodiment in artifacts.

• The essential core of culture consists of traditional (i.e., historically derived and selected) ideas and especially their attached values.

• Culture systems may, on the one hand, be considered as products of action, and as conditioning elements of future action.

Organisational Goals

• All organisations have goals

• These goals might be to make the most profit they can, or to gain the highest market share in their area of business or in the case of many community organisations, to provide an effective service to the community even if they do not make any money at all.

• Managers are employed to ensure that the people who work in an organisation are working together to achieve the organisations goals.

How Organisational Culture is Formed?

Culture supplements rational management: creation of work culture is a two way process.

Culture communicates to people through symbols, values, physical settings, and language, and thereby supplements the rational management tools such as technology and structure.

Culture facilitates induction and socialization induction is a process through which new entrants to an organisation are socialized and indoctrinated in the expectations of the organisation; its cultural norms, and undefined conduct.

The newcomer imbibes the culture of the organisation, which may involve changing his/ her attitudes and beliefs to achieving an internalised commitment to the organisation.

• Culture promotes a code of conduct: a strong culture in an organisation explicitly communicates modes of behaviour so that people are conscious that certain behaviours are expected and others would never be visible.

• The presence of strong culture would be evident where members share a set of beliefs, values, and assumptions which would influence their behaviour in an invisible way.

• Where culture has been fully assimilated by people, they persistently indulge in a typical behaviour in a spontaneous way.

• Promotion of the culture of quality can help achieve good organisational results.

• Culture helps to explain why different groups of people perceive things in their own way and perform things differently from other groups.

• Culture can help reduce complexity and uncertainty. It provides a consistency in outlook and values, and makes possible the process of decision-making, co-ordination and control.

• The essence of organisations revolves around the development of shared meanings, beliefs, values and assumptions that guide and are reinforced by organisational behaviour.

• Employees are important asset to the organisation. They serve as human capital to the organisation. Organisations make use of their employees’ skills, knowledge and abilities in carrying out fulfilling their objectives.

• Organisation culture is the environment that surrounds employees at work all of time.

• It is the collective behaviour of people that are part of an organisation, it is also formed by the organisation values, vision, norms, working language, systems, and symbols, it includes beliefs and habits.

• It is also pattern of such collective behaviours and assumptions that are taught to new organisation members as a way of perceiving, and even thinking and feeling.

• Organisational culture affect the way people and groups interact with each other, with clients, and with stakeholders.

• Organisational culture is defined as a pattern of basic assumptions invented, discovered or developed by a given group, as it learns to cope with problems of external adaptation and internal investigation that has worked well enough to be considered valid and therefore is to be taught to the new members as the correct way to perceive, think, and feel in relation to those problems.

• Organisational culture is a powerful elements that shapes employees work enjoyment, work relationships, and work processes.

• However, culture is something that one cannot actually see, except through its physical manifestation in work place.

• The culture of the organisation should be developed to support continuous improvement, improve employees’ style of performing their job and thus develop quality awareness.

• Organisational culture has influence employee behaviour in work as a result of acceptable behaviours and attitudes to various jobs in the organisation.

• Organisational culture is a major determinant of an employee’s efficiency and effectiveness in carrying out their jobs.

• That is, organisational culture is one of the major key determinants of how employees behaves and performs in his job.

• Organisational culture is a set of shared understandings, norms, values, attitudes and beliefs of an organisation which can promote or obstruct change. When people join in an organisation, they bring with them the values and beliefs that they have been taught.

• Quite often, however these values and beliefs are insufficient for helping the individual to succeed in the organisation.

• An organisation’s culture can have a profound impact on how its employees with care-giving responsibilities experience their work and family roles (Shockley, in press; Thompson, Beauvais & Lyness, 1999).

• At the same time, national culture also influences individuals’ preferences for how they manage those roles. For instance, workaholism among men is more common in cultures centered on achievement and material success than in cultures that emphasize quality of life; women are less likely to work outside the home in cultures featuring a strong breadwinner/homemaker gender role ideology (Lewis, 2009; Snir & Harpaz, 2009).

• Given that globalization has increased international mobility for workers as well as the likelihood that home country workers are interacting with colleagues from or in other countries (Tams & Arthur, 2007), it has become paramount for work-family scholarship to recognize that multiple layers of culture are increasingly influencing employees’ experiences in integrating work and family, as well as their perceptions of appropriate organisational work-family practices.

• It is important for work-family scholars to determine the efficacy of organisational work-family practices and policies, as these practices continue to expand beyond their Western points of origin and become implemented all over the world (e.g., Allen, 2013; Ollier-Malaterre, Valcour, Den Dulk & Kossek, 2013).

• Culture of the workplace is very powerful force, which is consciously and deliberately cultivated and is passed on to the new employees.

• It is the thread that holds the organisation together.

• Organisations build up their culture for the survival in the market, and for achieving growth under competitive conditions.

• Every organisation has its own culture.

• Stronger the culture, the more it is directed to the market place, and the less need there is for policy manuals, organisation charts, detailed procedures or rules.

• In companies, people way down the line knows what they are supposed to do in most situations because the handful of guiding values are crystal clear.

• Hence organisational culture can considerably influence organisations, especially in aspects such as performance.

• The culture of the organisation influences the work that is done in the organisation.

• In the present era of competition, organisations need culture such that it increases the employee commitment and efficiency.

• According to Schein (1990), organisation culture is “A pattern of basic assumptions invented, discovered or developed by a given group as it learns to cope with its problems of external adaptation and internal integration, that has worked well enough to be considered valid, and therefore, is to be taught to new members as the correct way to perceive, think and feel in reaction to those problems.”

• In 1980, researchers concentrated on organisational culture which was considered as one of the vital aspects determining the organisation’s success.

• Organisational culture comes into picture with the interaction of employees with each other.

• The formation of culture in the organisation involves various factors, such as, the work force, leadership, owner of the organisation, size of organisation.

• The culture of the organisation motivates employees, which affects the organisation’s performance.

• Researchers have classified culture into strong and weak cultures.

• The organisation having clear and comprehensive shared values and beliefs leads to a strong organisational culture.

• Strong culture increases the performance of employees by energizing them with better working environment and coordination among employees behavior.

• Organisational culture helps in maximizing the value of employees as intellectual assets and promotes their intellectual participation and facilitates both, individual and organisational learning, creation and application of new knowledge and willingness to share knowledge with others.

• Organisational culture, thus is very important in the context of the progress of the organisation.

• The beliefs, stories and symbols of an organisation help in shaping the culture of the organisation and hence it is necessary for the management to realize that culture is an integral part of their business, and so every effort must be made not only to preserve it but also to improve it.

Characteristics of Organisational Culture

Innovation and risk-taking

The degree to which employees are encouraged to be innovative and take risks.

Attention to detail

The degree to which employees are expected to exhibit precision, analysis, and attention to detail.

Outcome orientation

The degree to which management focuses on results or outcomes rather than on technique and process.

People orientation

The degree to which management decisions take into consideration the effect of outcomes on people within the organisation.

Team orientation

• The degree to which work activities are organized around teams rather than individuals.

Aggressiveness

• The degree to which people are aggressive and competitive rather than easy going.

Stability

• The degree to which organisational activities emphasize maintaining the status quo in contrast to growth.

Why Organisational Culture is Important?

Culture is important because it affects:

• What the organisation considers to be “right decisions”.

• The attitudes of stakeholders to the organisation.

• What individuals consider to be appropriate behaviours and how they interact with each other within the organisation .

• How individuals, work groups and the organisation as a whole deal with work assigned to them.

• The aim of the organisational culture is to promote unity and cohesion and to stimulate the enthusiasm and innovation of employees to improve the economic efficiency of the company.

• In addition, employee behaviour is profoundly influenced by corporate culture (Tianya, 2015).

• Every company has its own distinctive character, just the same as people do.

• The one-of-a-kind character of an entity is its community.

• Organisational culture is an intangible yet strong force among a community of people who work together that affects the behaviour of the members of that group.

• Appropriate behavioural modes become essentially selfevident to its members when an organisation takes on structural permanence (Citeman 2008).

• Increasing the loyalty of its customer base is the goal of a company. A good corporate image must, therefore, be created.

• A good corporate image, in other words, brings good economic returns, and a good corporate image relies on a good organisational culture.

• Therefore, an understanding of what constitutes the culture of an organisation and how it is developed, maintained and learned would increase our ability to describe and predict the actions of individuals at work.

• There seems to be general consensus that organisational culture refers to a structure that separates the organisation from other organisations with a common definition held by members.

• On closer inspection, this structure of common definitions is a collection of core characteristics that the organisation values.

Cultural Assessment

• Cultural Assessment helps the organisation to analyse the gap between the current and desired culture.

• As competitive environment changes fast, the organisational culture also needs to change.

• However, in practice, some of its practices and secondary values are changed, and precious and non negotiable core values are kept intact which leads to the continuity of organisational culture.

Functions of Culture

• Social glue that helps hold an organisation together Provides appropriate standards for what employees should say or do.

• Boundary-defining

• Conveys a sense of identity for organisation members

• Facilitates commitment to something larger than one’s individual self-interest

• Enhances social system stability

• Serves as a “sense-making” and control mechanism

Guides and shapes the attitudes and behaviour of employees

Origin of Organisational Culture

• From a cultural standpoint, the root of organisational culture is based on the work of Deal and Kennedy (1982), among others.

• According to this view, organisational culture, rather than factors such as structure, policy or politics, is seen as essential to organisational performance.

• As a consequence, focus turned away from national cultures and concentrated more on the culture of organisation.

• The interest in organisational culture from the point of view of human resource management and success stems from the belief that organisational culture offers a non-mechanistic, versatile and creative approach to the understanding of how organisations function (Brown, 1998).

• Consequently, for most organisational concerns, organisational culture is perceived to be the great “cure-all” (Wilson, 1992).

• Another theoretical evolution of the organisational culture definition involves research carried out in the area of organisational philosophy.

• These studies concentrated on defining and interpreting the culture of concept organisation through the use of typologies or classifications, including the following:

• In order to define organisational culture, Deal and Kennedy (1982 ) defined four generic types of cultures, namely the tough-guy/macho culture, the work-hard/play-hard culture, the bet-your company culture and the culture of the process; Handy (1985) described organisational culture by using four types of classification, namely cultures of power, position, task and person; Schein (1985) used three levels to explain organisational culture, namely artefacts, values and basic underlying assumptions; five primary culture typologies were defined by Scholtz (1987), namely stable, reactive, anticipating, experimenting and creative; Hampden-Turner (1990) used four forms of culture to characterize organisational culture, namely position, control, task and atomistic cultures.

• Hofstede (1991) pointed out that cultures differ on the basis of five dimensions, namely power distance, individualism/collectivism, uncertainty avoidance, masculinity/femininity and confusion dynamism.

• In order to characterize organisational culture, O'Reilly, Chatman and Caldwell (1991) introduced seven key features, namely creativity and risk-taking, attention to detail, orientation of performance, orientation of individuals, aggressiveness and cohesion of team orientation.

• In their definition of this term, the above-mentioned typologies of organisational culture provide extensive overviews of the differences between theorists. Over time, the changes and differences have mostly evolved.

Conceptualizing organisational culture

• The concept of culture in organisations must be taught and exchanged (Titiev, 1959).

• Pettigrew (1979) asserts that organisational cultures are based on cognitive structures that help explain how workers think and make choices.

• According to Tichy (1982), the "normative glue" is known as organisational culture, which is a way of keeping the entire organisation together.

• The definition of organisational culture also provides a basis for assessing the difference between organisations doing business in the same national culture that can survive (Schein, 1990).

• The concept of culture is generally used in the concept of organisations now-a-days (Kotter and Heskett, 1992).

• Two main social group factors might create organisational culture; a group's structural stability and the incorporation of a single object into a higher norm (Schein, 1995).

• Culture can be described as a framework of common values that can be estimated to represent the similar culture of the organisation, even with different backgrounds within the organisation at different levels (Robbins & Sanghi, 2007).

• Stewart (2010) also claimed that the principles and values of the organisation have a direct influence on all those who are attached to the organisation.

• Standards are claimed to be intangible, but if companies want to enhance employee efficiency and profitability, standards are what they need to look for.

• Counter Culture is mutual beliefs and values that are implicitly contrary to the values and beliefs known as counter cultures in the wider organisational culture, developed often around a powerful manager or leader (Kerr & Slocum, 2005).

• The original organisational culture could be considered a threat to this form of culture.

• According to Schein (1995), Sub Culture is the segments of culture that display different norms, principles, beliefs and behaviours of individuals due to discrepancies in geographical areas or (within organisation) departmental priorities and job requirements.

• The perception of subculture workers was related to the loyalty of employees to the company (Lok, Westwood and Crawford, 2005).

• To allow for social interaction outside the workplace, some groups may have a common culture within them (Fakhar, Rana, Ayesha, and Lalarukh, 2012).

• Since the organisational culture reflects a shared view held by members of the organisation. Therefore, individuals with distinct backgrounds or at different levels of the company are expected to identify their community of similar terms. That doesn’t mean, however, that there are no subcultures.

• Most large organisations have a dominant culture and numerous subcultures.

• A dominant culture expresses the core values a majority of members share and that give the organisation its distinct personality.

• In large organisations, subcultures tend to evolve to represent common challenges or experiences members face in the same department or location.

• A subculture that incorporates the core values of the dominant culture, plus additional values specific to representatives of that department, can be present in each of the different departments.

• If organisations were comprised only of various subcultures, the corporate culture would be substantially less powerful as an independent variable.

• It is the “shared sense” element of culture that makes it such an effective instrument for behavioral instruction and shaping. But subcultures can affect the behaviour of members, too.

• Organisational culture is also referred to as a structure that separates the organisation from other organisations with a common meaning held by members.

• For performance, organisational culture and communication between employees are important.

• Organisational cultures show the conditions of employment, employee behavior, etc.

• A significant determinant of organisational performance is organisational culture and each organisation has an exclusive social structure.

• In establishing the organisation's brand image and making it different from its rivals, the work culture goes a long way.

• Over the years, the concept of culture has completely shifted from being a summary of collective practices and norms within an organisation that could not be influenced.

• The concept has been created to recognize that organisational culture is unpredictably tangible and can be purposely crafted and leveraged as employee experience.

• The culture of organisations requires leadership concentration and attention and should be deliberately incorporated in the organisational structure.

• Organisational culture is a framework of common assumptions, values, and beliefs that dictates how organisations treat individuals. These common beliefs affect the people in the company strongly and control how they dress, behave, and perform their jobs.

• A specific culture is created and preserved by each organisation, which establishes standards and limitations for the actions of the organisation's members. Seven attributes that vary in importance from high to low are composed of organisational culture.

• For each of these attributes, each organisation has a separate value that, when combined, determines the specific culture of the organisation.

• Members of organisations make decisions on the importance put on these features by their company and then change their actions to adhere to this perceived collection of values.

• Organisational culture involves values and attitudes that "contribute to an organisation's unique social and psychological environment."

• According to Needle (2004), organisational culture reflects the organisational members' common values, beliefs and ideals and is a product of factors such as history, product, market, technology and strategy, employee type, management style, and strategy.

• The culture involves the vision, principles, standards, structures, symbols, vocabulary, assumptions, beliefs, and behaviors of the organisation.

• As a way of perceiving and, also, thought and feeling, it is also the pattern of such group behaviours and assumptions that are taught to new organisational participants.

• Organisational culture also shapes the way individuals and groups connect with each other, with customers, and with stakeholders.

• Furthermore, the organisational culture can influence how strongly workers associate with an organisation.

• Although a company may have its "own unique culture", in larger organisations there are sometimes co-existing or conflicting subcultures because each subculture is linked to a different management team.

• There are basically contrasting organisational cultures that depend on organisational objectives and style of leadership.

• In one organisation, for example, you will find out that all decisions are needed to be thoroughly reported by managers and "successful managers" are those who can provide comprehensive evidence to support their recommendations.

• There is no support for innovative decisions that incur substantial change or risk.

• Managers tend not to introduce proposals that deviate far from the status quo, so managers of unsuccessful projects are publicly blamed and penalized.

• Job tasks are devised around people.

• Different divisions and lines of authority exist, and workers are required to avoid formal communication beyond their functional area or line of command with other workers.

• Evaluations and incentives of success prioritize individual effort, while seniority continues to be the primary factor in deciding pay increases and promotions.

• There are, on the other hand, several companies where leadership facilitates and encourages risk taking and transformation.

• Intuition-based judgments are respected as much as those that are well rationalized. Management is proud of its history of experimenting with emerging innovations and its success in developing ground breaking goods on a regular basis.

• Managers or workers who have a good idea are encouraged to “run with it”. And mistakes are viewed as “experiences of learning”. The company is proud of being market-driven and sensitive to its customers' evolving needs quickly. For workers to obey, there are few rules and regulations, and control is loose because management thinks the workers are hard-working and trustworthy.

Management is concerned with high productivity, but assumes this comes about by correctly handling the individuals.

The company is proud of its credibility as being a good place to function.

Job activities are structured around work teams, and team members are encouraged to collaborate with individuals through roles and levels of authority.

Employees speak about the rivalry between teams in a constructive way.

Individuals and teams have expectations, and the achievement of these results is dependent on incentives.

In selecting the means by which the objectives are accomplished, workers are granted considerable control.

Types of Culture

• A) Hellriegel, Slocum and Woodman (1995), describe four types of cultures as follows:

• 1) Bureaucratic culture: An organisation that values formality, rules, standard operating procedures and hierarchical coordination has a bureaucratic culture. Long term concerns of bureaucracy are predictability, efficiency and stability.

• 2) Clan Culture: Tradition, loyalty, personal commitment extensive socialization, teamwork, self management and social influences are the attributes of clan culture. It’s members recognize an obligation beyond simple exchange of labor for a salary. The individual long term commitment to the organisation is exchanged for the organisation’s long term commitment to the individual. Individuals hold themselves accountable to the organisation for their actions.

• 3) Entrepreneurial culture: High level of risk taking dynamism and creativity are the main characteristics of this type of culture.

• There is commitment to experimentation, innovation and being on the leading edge. Instead of reacting to change, it creates change.

• 4) Market Culture: The achievements of measurable and demanding goals especially those that are financial and market based, characterize a market culture.

• High level of competitiveness and profit orientation prevail in the organisation. The relationship between individual and organisation is contractual. The absence of a long term commitment by both parties results in a weak socializing process.

• B) Harrison and Stokes (1993) describe four types of culture as follows:

• 1) The Power Culture: A power oriented culture is based on an inequality to access resources.

• The people in a Power use resources either to satisfy or frustrate the needs of others, so as to control behavior of others power oriented leader is firm, fair and generous and has loyal subordinates.

• In the worst case, power oriented leader leads by fear, and with abuse of power for personal gains.

• 2) The Role culture: A role culture oriented organisation’s structures and systems give protection to subordinates and stability to the organisation. The duties, roles and rewards are clearly defined. There is order, rationality, dependability and consistency. So this type of organisation provides stability, justice, and efficient performance. People are protected in their jobs and hence, they devote more energy to their work.

• 3) The Achievement Culture: An achievement culture oriented organisation is called as an “aligned” organisation, because it aligns people before a common vision or purpose. Such organisations use the mission to attract and release the personal energy of the employees in achieving common goals. There is an inner commitment within these achievement oriented individuals. Many individuals like their work and want to make a contribution to society, thus enjoying an intrinsic reward.

• 4) The Support Culture: This type of culture is observed in an organisation having an organisational climate based on mutual trust between individuals and the organisation.

• In such organisations, people are valued as human brings and this makes people want to come to work and not only because they like their work but also because they care for their colleagues.

• People contribute towards the organisation out of a sense of commitment. Employees feel a sense of belonging and they have a personal stake in the organisation.

• C) Strong Culture and Weak Culture: A Strong culture means a high performance culture, representing the core values that are shared by a majority of the organisational members.

• Strong culture is the system of shared meaning held by organisational members that distinguishes the organisation from others. Strong culture exists where members respond to stimulus because of their alignment to organisation values.

• There is a weak culture when there is little alignment with organisational values and hence the control has to be exercised through detailed procedures and bureaucracy.

• A strong culture is reflected in the form of healthy behavior, keenness to work hard and a strong desire and willingness to do their best.

• Behavior towards work efficiency is largely controlled by internal ability and willingness to work hard.

• It is based on sincerity of participation, involvement, devotion to duty, earnest desire to work and discharge of responsibilities with confidence and competence. Thus culture acts as a blue print, influencing all aspects of life.

• D) Healthy and Unhealthy Cultures: Shepard (1965) used primary mentality assumptions and secondary mentality assumptions. In unhealthy organisational cultures, primary mentality assumptions (coercion, cut-throat competition, compromise of principles) are the norms.

• In healthy organisational cultures, secondary mentality assumptions (cooperation, collaboration, consensus-seeking behavior) are the norms.

• Ruth Benedict (1970) used concepts of high and low synergy groups and societies. A low synergy group or society is one in which the interests of individuals and the interests of the group as a whole are at odds.

• A high synergy group or society is one in which the interests of individuals and the interests of the group as a whole are in harmony.

• Unhealthy organisational cultures are those characterized by low synergy and healthy organisational are those characterized by high synergy.

Characteristics of Healthy Organisational Culture

• Organisation should strive for what is considered a “healthy” organisational culture in order to increase productivity, growth, efficiency and reduce employee turnover and other counterproductive behaviour.

A variety of characteristics describe a healthy culture, including:

• Acceptance and appreciation for diversity

• Regard for and fair treatment of each employee as well as respect for each employee’s contribution to the company

• Employees pride and enthusiasm for the organisation and the work performed

• Equal opportunity for each employee to realize their full potential within the company

• Strong communication with all employees regarding policies and company issues

• Strong company leaders with a strong sense of direction and purpose.

• Ability to compete in industry innovation and customer service, as well as price

• Lower than average turnover rates

Organisational Culture

• Culture exists at multiple levels – wider society, countries, industry sectors, organisations, functions, portfolios, programmes and projects.

• In this topic we focus on organisational culture and its impact on projectbased working.

• Organisational culture can be defined as the way things are done in an organisation, the unwritten rules that influence individual and group behaviour and attitudes.

Factors that influence organisational culture include:

• Values, Traditions, Stories and Organisational Memory;

• Organisational Structure, Systems And Processes;

• Management and Leadership Styles;

• Behaviours Demonstrated At All Levels Of The Organisation.

• Some aspects of culture are observable or visible – the things that people do, for example, the prevailing style of communication or decision-making.

• Most aspects of culture are hidden from view – the things that people value, feel or believe to be true yet have influence in shaping ‘the ways things are done’.

• Taking time to try to understand the prevailing culture in an organisation is an important part of stakeholder analysis and of team leadership.

• If the project, programme or portfolio is contained within one organisation, or one part of a large distributed organisation, the values, behaviours and norms may be tacitly understood.

• Where multiple organisations are involved, the impact of any cultural differences will need to be understood and managed from both the perspective of the deployment team, and the people affected by the change.

As a result of their work to understand organisational culture(s), project professionals may need to adapt their approach to maximise their impact on the project or programme and reduce the risk of alienating themselves.

However, project professionals should not rely on hearsay, or first impressions to assess culture. Reviewing artefacts, processes, speaking with people and observing behaviour closely is important to build an informed assessment.

It is common in large projects or programmes for the leadership to talk about creating a culture for the project or programme being managed.

This can be useful when the team is drawn from different organisations – developing an environment where particular behaviours and characteristics are encouraged can be a useful way of building team cohesion and performance.

• Additional complexities arise where stakeholders or members of the team are from different national cultural backgrounds.

• Behaviours that are taken for granted in one place may be alien to others. At best this can cause confusion and delays; at worst offence and the breakdown of relationships.

The Visible and Hidden Aspects of Organisatio nal Culture

Strong and Weak Organisational Cultures

• The culture of organisations may be either weak or solid.

• The strong corporate culture is where the majority of workers have the same form of beliefs and principles as the organisation's concern.

• Organisational culture is believed to be deep, with the majority of employees adopting the same kind of organisational beliefs and values (Deal and Kennedy, 1982).

• While one that is loosely knitted may be a delicate community.

• It may be a valuable tool for some time, but often not, for individual thinking, accomplishments, and in an organisation that wants to evolve through creativity.

• Laws are placed exclusively on workers and may generate diversity between the personal interests of the individual and organisational objectives.

• Martins and Martins (2003) point out that “the fundamental values of the company are kept firmly and expressed widely in a strong community”.

• This indicates that they become more dedicated to them as organisational members embrace the common values.

• Therefore, a good corporate culture refers to organisations in which principles and values are expressed within an organisation relatively consistently.

• The behaviour of organisational members is profoundly affected by strong organisational cultures.

• In other words, a healthy community is a potent lever for behavioral advice.

• Brown (1998) also suggests that a strong organisational culture will enable an organisation to achieve high success for the following reasons: A strong organisational culture promotes the coordination of goals.

High levels of employee engagement contribute to a good organisational culture. It is easier for a good corporate culture to learn from its experience.

Martins and Martins (2003) notes that “one clear consequence of a good culture should be a lower turnover of workers” in relation to the above advantages of a strong organisational culture.

This is due to the fact that the final results are stability, commitment and organisational participation when organisational members agree to what the company stands for. In the other hand, a weak culture means the opposite of a strong culture, i.e. organisational participants do not adhere to common ideals, values and norms (O'Reilly et al, 1991).

It is difficult for organisational participants in a poor culture to align themselves with the core principles and priorities of the organisation (Wilson, 1992).

• As a consequence, elements or distinct divisions of such an entity uphold numerous values that do not explicitly discuss the organisation's core objectives.

• As they are directly related to increase turnover, poor cultures have a detrimental effect on workers (Harrison, 1993).

• The fundamental strength of the culture of the company, in essence, is determined by how fragile or strong it is.

Characteristics making up organisational culture

• According to Dasanayaka and Mahakalanda (2008), optimizing the values of employees is seen as rational assets that required a culture for individual and organisational learning, new knowledge creation, and readiness to share with others to promote their reasonable participation.

• There seems to be general consensus that organisational culture refers to a structure that separates a specific organisation from other organisations with a common meaning held by members.

• On closer inspection, this structure of common sense is a collection of core characteristics that the organisation values.

• Literature indicates that there are seven primary features that, in total, capture the nature of the culture of an organisation.

• a. Innovation and risk taking: The degree to which employees are encouraged to be innovative and take risks.

• b. Attention to detail: The degree to which employees are expected to exhibit precision, analysis, and attention to detail.

• c. Outcome orientation: The degree to which management focuses on results or outcomes rather than on the techniques and processes used to achieve these outcomes.

• d. People orientation: The degree to which management decisions take into consideration the effect of outcomes on people within the organisation.

• e. Team orientation: The degree to which work activities are organized around teams rather than individuals.

• f. Aggressiveness: The degree to which people are aggressive and competitive rather than easygoing.

• g. Stability: The degree to which organisational activities emphasize maintaining the status quo in contrast to growth.

Types of organisational culture

• It is essential to note that not only one organisational culture exists.

• Academic literature generally accepts that numerous organisations have distinctive cultures.

• As revealed in theoretical studies of organisations (Zammuto, Gifford and Goodman, 1999), there are four primary forms of organisational culture: Internal process model In order to maintain continuity and control, the internal process model requires a control/ internal emphasis in which information management and communication are used.

• This model has often been referred to as a ‘hierarchical society’ because it requires the regulation of technical matters, obedience, and obedience to laws (Denison and Spreitzer, 1991).

• The internal process model most explicitly represents the conventional bureaucracy and public administration theoretical model that relies on structured rules and procedures as control mechanisms (Weber, 1948; Bradley and Parker, 2001, 2006) and Zammuto, Gifford and Goodman, 1999).

• Open systems model, flexibility/external emphasis in which preparation and adaptability are used to achieve development, resource acquisition and external support is included in the open systems model.

• This paradigm has also been referred to as a ‘developmental culture’ because it is related to creative innovative leaders who often retain an external environment emphasis (Denison and Spreitzer, 1991).

• These organisations are competitive and their leaders are risk-takers, and individual initiative is connected with organisational rewards (Bradley and Parker, 2001, 2006).

• Human relations model: The model of human relations requires a flexibility/ internal orientation in which training and wider human resources growth are used to create harmony and the morale of employees.

• This organisational culture model has often been referred to as ‘community culture’ because, through collaboration, it is correlated with confidence and involvement.

• Managers aim to promote and mentor staff in organisations of this kind (Bradley and Parker, 2001, 2006).

Rational goal model

• A control/external orientation in which planning and target setting are used to achieve productivity and performance is included in the logical goal model. Due to its focus on performance and goal achievement, this type of organisational culture is referred to as a rational culture (Denison and Spreitzer, 1991).

• Production-oriented organisations of this kind organize and managers organize workers in pursuit of designated objectives and targets, and incentives are related to performance (Bradley and Parker, 2001, 2006).

• The meaning of this academic interpretation of culture forms is not that in organisations the styles occur in any pure form. Several cultural forms may be displayed by organisations.

• Rather, in our interpretation of prevailing cultures and thinking about what re-balancing is required if culture is to be moved to embrace new behaviors and values, such typologies aid.

Functions of Organisatio nal Culture

• In order to give meaning to organisational life, the key role of organisational culture is to describe the way of doing things (Arnold, 2005).

• Making sense is a matter of corporate culture, since members of the group continue to learn from the lessons of previous members.

• As a result, organisational participants will benefit from whatever trials and failures others have been able to obtain in terms of information (Johnson, 1990).

• Organisational culture also describes organisational actions by specifying main objectives; methods of work; how members should connect and address each other; and how personal relationships should be conducted (Harrison, 1993).

The following roles of organisational culture are mentioned by Brown (1998):

• a. Conflict reduction: A common culture promotes consistency of perception, problem definition, evaluation of issues and opinions, and preferences for action.

• b. Coordination and control: Largely because culture promotes consistency of outlook it also facilitates organisational processes of coordination and control.

• c. Reduction of uncertainty: Adopting of the cultural mind frame is an anxiety reducing device which simplifies the world of work, makes choices easier and rational action seem possible.

• d. Motivation: An appropriate and cohesive culture can offer employees a focus of identification and loyalty, foster beliefs and values that encourage employees to perform.

• e. Competitive advantage: Strong culture improves the organisation’s chances of being successful in the marketplace.

Martins and Martins (2003) also mention the following as functions of organisational culture:

• i. It has a boundary-defining role, that is, it creates distinctions between one organisation and the other organisations.

• ii. It conveys a sense of identity to organisational members.

• iii. It facilitates commitment to something larger than individual self-interests.

• iv. It enhances social system stability as the social glue that helps to bind the organisation by providing appropriate standards for what employees should say and do.

• v. It serves as a meaningful control mechanism that guides or shapes the attitudes and behaviours of employees. These functions of organisational culture suggest that an organisation cannot operate without a culture, because it assists the organisation to achieve its goals. In general terms, organisational culture gives organisational members direction towards achieving organisational goals (Hampden-Turner, 1990).

Dimensions of organisational culture

• While culture may not be instantly apparent, the identification of a collection of principles that could be used to characterize the culture of an organisation allows us to more accurately define, quantify, and manage culture.

• Several researchers have suggested different culture typologies for this reason.

• organisational culture profile (OCP), in which culture is defined by four distinct dimensions, is one typology that has received a lot of research attention.

Four Elements Of The Culture Of organisation

Power culture dimension

• There is a need to use power in any given organisation in order to exert control and influence actions.

• Power-oriented culture is described by Harrison and Stokes (1992) as ‘organisational culture centered on inequality of access to resources’. Brown (1998) notes that “a culture of power has a central power source from which rays of energy scatter through the organisation”.

• This implies that power is centralized and functional and specialist strings connect organisational representatives to the core (Harrison, 1993).

• In the sense that it focuses on respect for authority, rationality in processes, division of work and normalization, this form of organisational culture may also be regarded as rule-oriented (Hampden-Turner, 1990). Both small and larger organisations have a power-oriented community.

• Leadership exists in a few and depends on their capacity in small organisations managed by power-oriented leaders (Brown, 1998).

• Those who exercise authority seek to retain total power over subordinates. The size of the organisation is a concern with such structures because if the site connects to too many events, it may break down.

• Harrison and Stokes (1992) demonstrate that “at its worst poweroriented organisational cultures in a larger organisation continues to govern through intimidation, with misuse of power on the part of leaders, their friends and their protégés for personal gain”.

• This will mean that the propensity to instill fear in the workforce and to misuse control is present in a larger organisation. Nepotism and favoritism may contribute to this.

• A power-oriented cultural organisation also has a topdown communication policy in general (Harrison, 1993).

• Such an entity can be politically focused in the sense that decisions are made not on procedural or strictly rational grounds, but largely on the basis of power.

Role culture dimension

• Harrison and Stokes (1992) characterize role-oriented culture as “substituting the naked power of the leader for a system of mechanisms and processes”.

• This form of culture focuses primarily on the definition and specialisation of workers. In other words, the procedures and rules that set out the job description, which is more critical than the person who fills the role, govern work (Harrison, 1993).

• Brown (1998) notes that “the power of a position culture lies in its roles or specialties (finance, buying, development, etc.) that can be regarded as a set of pillars that a small group of senior executives (the front) coordinates and regulates”.

• This implies that formalized and centralized roles are the cornerstone and foundations of such an organisation; they are governed by position and contact procedures (Hampden-Turner, 1990).

• Owing to its mechanistic methods, such an organisation is often stereotyped as bureaucratic organisations with this kind of culture are defined in a rational way by a collection of tasks or work boxes joined together (Harrison, 1993).

• A narrow band of senior management co-ordinates these positions or job requirements at the top.

The achievement-oriented culture is described by Harrison and Stokes (1992) as “the aligned culture that lines people up behind a shared vision or purpose”.

Achieveme nt culture dimension

The culture of accomplishment is also referred to as the mission culture, which includes the focus of the organisational participant on realizing the organisation's defined goal and objectives.

Brown (1998) notes that “a job culture is one in which control is somewhat diffuse, focused not on place or charisma but on knowledge”.

Unlike role-oriented culture, where a significant role is played by positional or personal power, the center of achievement-oriented culture is abilities, abilities and expert control.

Authority is, therefore, founded on sufficient expertise and competence. In order to achieve organisational objectives, the key strategic aim of this community is to bring together the right people (Brown, 1998).

This indicates that, as a function of organisational culture, the achievement-oriented culture is close to team orientation.

Team orientation is described by Martins and Martins (2003) as’ the degree to which work activities are organized around teams rather than individuals’.

The company is able to satisfy its consumer demand by putting together a variety of individuals who are experts in their fields.

This is due to the fact that teams through concerted activities create meaningful synergy. The key drawback of the accomplishment culture in this regard, though using teams is an advantage, is that it overshadows individual success (Harrison, 1993).

Support culture dimension

• The support-oriented cultural component differs from the achievement-oriented culture that emphasizes teams, since it supports people as the organisation's central point.

• Harrison and Stokes (1992) describe the culture of support as an “organisational atmosphere centered on reciprocal trust between the person and the organisation”.

• Thus, a person-oriented culture is often referred to as a support-oriented organisational culture.

• Brown (1998) notes that there is only a support-oriented organisation for the people who compromise it, which can be described diagrammatically as a cluster in which no person dominates.

• According to Brown (1998), “in the community of individuals, individuals themselves decide on their own allocation of jobs, with minimally meaningful laws and communication mechanisms”.

In other words, on the basis of personal choice, job tasks are usually allocated based on the need for learning and development.

A positive culture produces a favorable atmosphere in the workplace that promotes proactive change, innovation and openness (Harrison, 1993).

It shows that the organisation values the abilities of individual staff who often respect their own jobs.

The organisation therefore sees its function as resourcing talented individuals and is allowed to make decisions for the latter.

Gods of Management (Handy, 1978)

• Charles Handy’s model of culture is based on the way in which organisations are structured.

• It is important to remember that a single organisation may have more than one of these cultures because parts of the organisation may be structured differently and because of different occupational/ professional cultures.

• Handy uses the Greek gods as metaphors for his cultural types because each god represented a particular trait or set of values.

• Zeus is the god representing the power or club culture.

• Zeus is a dynamic entrepreneur who rules with snap decisions. This culture is based on personalities with power and influence coming from a central source, usually the founder or leader.

• Organisations with this culture are usually small and informal and are capable of adapting quickly to changing circumstances.

• However the success of the organisation depends on the luck or judgement of key individuals.

• These organisations are really clubs of like-minded people where personal contact is more important than formal liaison.

• An ACL provider, led by a dominant Head of Service who has recruited individuals on the same wavelength to key positions, may have elements of this culture.

• The first culture Handy discusses is the club or Zeus culture.

• He uses a spider web to represent the club culture.

• “The lines radiating out from the centre” represent “divisions of work based on functions or products” (Handy p14). The most important lines however “are the encircling [lines], the ones that surround the spider in the middle, for these are the lines of power and influence, losing importance as they go farther from the centre.

• The relationship with the spider matters more in this culture than does any formal title or position description”(Handy p14).

• Handy also maintains that this type of culture is excellent for “speed ofdecisions” (Handy p15).

• However, because of its speed, quality is dependent upon Zeus andhis inner circle. This results in an emphasis being placed upon the selection and successionof Zeus.

• The club culture achieves its speed through empathy.

• This in turn leads to very little documentation within the organization and face-to-face meetings between Zeus and his subordinates or contacts.

• Furthermore, this culture is dependent upon networks of "friendships, old boys, and comrades” (Handy p16). Because of the high level of trust, this type of organization is cheap to operate.

• The only costs incurred in this type of organization are those of phone and travel expenses. In essence, these types of organizations value the individual, give him or her free rein, and reward their efforts.

• The second type of culture that Handy discusses is the role or Apollo culture. This type of culture bases its approach on the definition of the role or the job to be done.

• The symbol used to represent this type of culture is a Greek temple.

• The pillars of the temple represent the functions and divisions in an organization.

• “The pillars are joined managerially only at the top, the pediment, where the heads of the functions and divisions join together to form the board, management committee, or president’s office” (Handy p44).

• Besides being joined at the pediment, the pillars are also connected through rules and procedures. This type of organization looks to the past in order to predict the future, based on the assumption that tomorrow will be like yesterday.

• This then allows the organization to examine and pull apart yesterday in order to formulate improved rules and procedures. “Stability and predictability are assumed and encouraged” (Handy p45).

The role or set of duties is fixed in the Apollo culture. Furthermore, in this type of organization, efficiency is determined upon meeting deadlines and standard objectives.

Exceeding the objectives or beating the deadlines does not lead to reward but rather a reevaluation the institutions goals and objectives. This in turn results in very little initiative among the employees.

According to Handy, some typical examples of the role or Apollo culture are “life insurance companies, civil service, state industries, and local government” (Handy p47).

Furthermore, apollonian cultures abhor change. Generally an apollonian response to a change in the environment would be to first ignore it and then usually do more of what they were already doing.

“Role cultures respond to drastic changes in the environment (changing consumer preferences, new technologies, new funding sources)by setting up a lot of cross-functional liaison groups to hold the structure together.

If these measures don’t work, the management will fall, or the whole temple will collapse in merger, bankruptcy, or a consultants’ reorganization” (Handy p48).

• Apollo represents the role or bureaucracy culture. The underlying presumption is logic and rationality.

• Apollo organisations have formal structures and well defined rules and procedures. The structure defines the authority and responsibility of individual managers.

• Fulfilling the requirements of a job description is important, but individuals must remain within the boundaries of their authority.

• The Apollo approach works well for large organisations, with predictable work in a stable environment. You would expect the payroll section in a large organisation to work this way.

• The task, time frame and rules and procedures are clear and the result is that people are paid on time. The downside of Apollo organisations is that they can be inflexible and are generally slow to adapt to change.

• Some local authority providers feel that they are part of a large bureaucracy with a strong focus on rules, procedures and standardization.

• The next type of organization is the task or Athena culture. This type of organization basically views management “as being basically concerned with the continuous and successful solution of problems” (Handy p70).

• The management accomplishes this by first locating or finding the problem. After locating the problem, appropriate resources are given to solve the problem and waits for the results.

• In this type of organization, performance is judged by the results or problems solved. The symbol used for the task culture is a net.

• According to Handy, these types of organizations draw resources from various parts of the organization in order to solve a problem.

• In this type of culture, “power lies at the interstices of the net” and is a “network of loosely linked commando units, each unit being largely self-contained but having a specific responsibility within an overall strategy” (Handy p72).

• In the Athena culture, expertise in a specific field is the source for one’s power or influence. For example he states that “ to contribute to your group, you need talent, creativity, a fresh approach, and new intuitions.

• It is a culture where youth flourishes and creativity is at a premium” (Handy p72).

• However, Handy asserts that task cultures are expensive organizations to run and supports his assertion by noting that these types of organizations are staffed by experts who demand their market worth.

• Furthermore, he maintains that these experts discuss in excess the problems an organization faces, which results in costing the organization a large quantity of money.

• Also he states that some problems are not solved the first time around, so there is a need to experiment which results in some errors and those errors also cost the organization money.

• This leads Handy to conclude that these types of organizations “tend to flourish in times of expansion, when the products, technologies, or services are new or when there is some sort of cartel arrangement that provides a price floor” (Handy p74).

• However, he also contends that a task culture comes into difficult times when the organization needs to make the solutions permanent or routine, and that the cost of maintaining the culture seems excessively expensive.

• Furthermore, Handy asserts that the lives of task cultures are short.

• To support his assertion, he states that “if [organizations] are successful, they will grow big, and to pay their way will take on a lot of routine or maintenance work, which requires Apollonian structures”(Handy p74).

• In essence, this leads to the transformation of a task culture into that of a role culture

• Athena is the goddess of the task culture.

• Management is seen as completing a series of projects or solving problems.

• Task cultures usually have matrix structures or are organised as project teams.

• The principal concern is to get the job done and performance is judged by results.

• The ability to accomplish a particular task is more important than formal status.

• Task cultures depend on variety and creativity which requires a tolerance of mistakes.

• These organisations are flexible and constantly changing with project teams being disbanded and new ones formed.

• This culture is suitable for organisations (or parts of them) which are concerned with problem solving and short one-off exercises.

• There is a conflict between the desire to see results in meeting targets (task culture) and the way accountability is being enforced through procedures, returns etc. (bureaucracy).

• The leader’s role is to strike an appropriate balance between these competing demands.

• The last type of culture or philosophy that Handy discusses is the existential or Dionysus culture.

• In an existential culture, the organization exists to help the individual achieve his purpose.

• This is in contrast to the other three types of cultures where the individual is there to help the organization achieve its purpose.

• The symbol Handy uses for this type of culture is a cluster of individual stars loosely gathered in a circle.

• The members of this type of organization are not interdependent and thus do not cause an organizational change if one or more members leave the organization.

• In this type of organization, management is considered a chore.

• Furthermore, a manager is considered the lowest status in such organizations. Furthermore, in a Dionysus culture, the manager can only manage by consent, and every individual has the right of veto, so that any coordinated effort becomes a matter of endless negotiation. An example Handy gives of a Dionysus culture is a university.

• A university is an existential culture in that “there are no sanctions that can be used against the professors, and dismissal, money perks, or punishment are all outside the jurisdiction of the leader” (Handy p97). Furthermore he states that these decisions are made by a “group of equals” and not by an individual.

• Dionysus is the god of existential culture.

• In the three other cultures, the individual is subordinate to the organisation or the task.

• An existential culture is found in an organisation whose purpose is to serve the interests of the individuals within it.

• True existential cultures are rare although many professional practices come very close. These organisations are characterised by management having lower status than professional work.

• Management can only happen with the consent of the managed and the organisation’s success depends on the talent of the individuals.

• Occupational/ professional culture is dominant here and in the past many education professionals, among others, found it difficult to accept the need for any form of management.

• Handy advocates a ‘best fit’ approach to organisational culture.

• The most effective organisations have an appropriate fit between the individuals, the type of work, the environment and the culture.

• This implies that changes in the work or the environment may lead to a requirement for culture change as well.

• Handy argues that in order for a manager to be successful, the manager must first be aware of the different organizational cultures that exist within his or her organization.

• Once a manager is aware of the different cultures present in an organization, the manager may be effective as a liaison between the different cultures, thereby eliminating slack or inefficiency.

Competing Values Framework (Quinn and Cameron, 2011)

The Competing Values Framework

• The Competing Values Framework has been named as one of the 40 most important frameworks in the history of business (ten Haveetal.,2003).

• It has been studied and tested in organizations for more than 25 years by a group of thought leaders from leading business schools and corporations (Quinn and Cameron,1983; Quinn and Rohrbaugh,1983; Quinn,1988; Cameron and Quinn, 2006).

• Currently used by hundreds of firms around the world, the Competing Values Framework emerged from studies of the factors that account for highly effective organizational performance.

• It was developed in response to the need for a broadly applicable model that would foster successful leadership, improve organizational effectiveness, and promote value creation.

The relationship between leadership, effective performance and value creation

• The Competing Values Framework serves as a map, an organizing mechanism, a sensemaking device, a source of new ideas, and a learning system.

• It has been applied by researchers and practitioners to many aspects of organizations such as value outcomes, corporate strategy, organizational culture, core competencies, leadership, communication, decision making, motivation, human resources practices, quality, and employee selection (Cameron and Quinn, 2006).

• From the Competing Values Framework comes a theory about how these various aspects of organizations function in simultaneous harmony and tension with one another.

• The framework helps identify a set of guidelines that can enable leaders to diagnose and manage the interrelationships, congruencies, and contradictions among these different aspects of organizations.

• In other words, the framework helps leaders work more comprehensively and more consistently in improving their organizations’ performance and value-creation.

• The Competing Values Framework has proven to be a helpful framework for assessing and profiling the dominant cultures of organizations because it helps individuals identify the underlying cultural dynamics that exist in their organizations.

• This framework was developed in the early 1980s as a result of studies of organizational effectiveness (Quinn & Rohrbaugh, 1981), followed by studies of culture, leadership, structure, and information processing (Cameron,1986; Cameron & Quinn, 1999).

• The framework consists of two dimensions, one that differentiates a focus on flexibility, discretion, and dynamism from a focus on stability, order, and control.

• Some organizations are effective if they are changing, adaptable, and organic, whereas other organizations are effective if they are stable, predictable, and mechanistic.

• This dimension ranges from organizational versatility and pliability on one end to organizational steadiness and durability on the other end.

• The second dimension differentiates a focus on an internal orientation, integration, and unity from a focus on an external orientation, differentiation, and rivalry.

• That is, some organizations are effective if they have harmonious internal characteristics, whereas others are effective if they focus on interacting or competing with others outside their boundaries.

• This dimension ranges from organizational cohesion and consonance on the one end to organizational separation and independence on the other.

• Together these two dimensions form four quadrants, each representing a distinct set of organizational effectiveness indicators.

• The dimensions have been found to represent what people value about an organization’s performance, what they define as good, right, and appropriate, how they process information, what fundamental human needs exist, and which core values are used for forming judgments and taking action (Beyer &Cameron, 1997; Cameron & Ettington, 1988; Lawrence.

• What is notable about the dimensions is that they represent opposite or competing assumptions.

• Each continuum highlights a core value that is opposite from the value on the otherend of the continuum--i.e., flexibility versus stability, internal versus external., 2001; Mitroff, 1983; Wilber, 2000)

• The dimensions, therefore, produce quadrants that are also contradictory or competing on the diagonal.

• The upper left quadrant identifies values that emphasize an internal, organic focus, whereas the lower right quadrant identifies values that emphasize external, control focus.

• Similarly, the upper right quadrant identifies values that emphasize external, organic focus whereas the lower left quadrant emphasizes internal, control values.

• These competing or opposite values in each quadrant give rise the name for the model, the Competing Values Framework.

• Each of the four quadrants has a label that characterizes its most notable characteristics-clan, adhocracy, market, and hierarchy.

• These quadrant names were derived from the scholarly literature and identify how, over time, different organizational values have become associated with different forms of organizations—for example, Weber’s (1947) hierarchy, Williamson’s (1975) market, Ouchi’s (1981) clan, and Mintzberg’s (1986) adhocracy.

• Similar dimensions have emerged in other scholarly domains--such as organizational quality, child development, leadership roles, information processing, management skills, organic brain functioning, and philosophy—suggesting that the dimensions and the quadrants are very robust in explaining core values and human orientations (Mitroff, 1983; Piaget, 1932; Hampton-Turner, 1981; Lawrence,2001; Wilber, 2000).

• Organizations tend to develop a dominant orientation and value set—or organizational culture—over time as they adapt and respond to challenges and changes in the environment (Schein, 1996;Sathe, 1985).

• Just as individuals who face threat, uncertainty, and ambiguity reassert their own habituated behavior with redoubled force (Staw, Sandelands, & Dutton, 1981; Weick, 1993), institutions also tend to respond to challenges by amplifying their core cultural values.

• As competition, change, and pressure intensify, organizational culture becomes more solidified and is given more prominence and emphasis (Cameron, 2003 – in Tichy).

Core Dimensions

• Statistical analyses have confirmed the robustness and applicability of this framework to a broad array of human and organizational phenomena.

• That is, the same dimensions that emerged from research on organizational effectiveness also emerged when studying a wide variety of other aspects of human and organizational activities, including shareholder value, mergers and acquisitions, approaches to learning, organizational culture, leadership competencies, organizational designs, communication styles, organizational virtues, creativity, financial investments, and information processing.

Culture Types

• The competing values framework identifies four distinct types of cultures in organizations.

• The clan culture, is typified as a friendly place to work where people share a lot of themselves. It is like an extended family with best friends at work.

• Leaders are thought of as mentors, coaches, and, perhaps, even as parent figures. The organization is held together by loyalty, tradition, and collaboration.

• Commitment is high.

• The organization emphasizes the long-term benefits of individual development with high cohesion and morale being important.

• Success is defined in terms of internal climate and concern for people. The organization places a premium on teamwork, participation, and consensus.

• In the upper right quadrant of the competing values framework is the adhocracy culture.

• It is characterized as a dynamic, entrepreneurial, and creative workplace.

• People stick their necks out and take risks.

• Effective leadership is visionary, innovative, and risk-oriented.

• The glue that holds the organization together is commitment to experimentation and innovation.

• The emphasis is on being at the leading edge of new knowledge, products, and/or services.

• Readiness for change and meeting new challenges are important.

• The organization’s long term emphasis is on rapid growth and acquiring new resources.

• Success means producing unique and original products and services.

• A market culture in the lower right quadrant is a resultsoriented workplace.

• Leaders are hard-driving producers, directors, and competitors. They are tough and demanding.

• The glue that holds the organization together is an emphasis on winning. The long-term concern is on competitive actions and achieving stretch goals and targets.

• Success is defined in terms of market share and penetration.

• Outpacing the competition, escalating share price, and market leadership dominate the success criteria.

• The organizational culture in the lower left quadrant, the hierarchy culture, is characterized as a formalized and structured place to work.

• Procedures and well-defined processes govern what people do. Effective leaders are good coordinators, organizers, and efficiency experts.

• Maintaining a smooth-running organization is important.

• The long-term concerns of the organization are stability, predictability, and efficiency.

• Formal rules and policies hold the organization together.

• Cameron and Ettington’s (1988) review of the literature found more than 20 dimensions of organizational culture, including dimensions such as internalexternal focus, speed, riskiness, participativeness, clarity, power distance, masculinity, and individualism.

• Each of these dimensions helps establish a profile or a pattern for an organization’s culture.

• By far the three most dominant and frequently appearing pattern dimensions in the literature, however, are cultural strength (the power or preeminence of the culture), cultural congruence (the extent to which the culture in one part of the organization is congruent with the culture in another part of the organization), and cultural type (the specific kind of culture that is reflected in the organization).

• Cameron & Ettington (1988) found that “the effectiveness of organizations is more closely associated with the type of culture present than with the congruence or the strength of that culture (p.385).”

• More than two decades of work on the Competing Values Framework has produced a set of intervention processes, measurement devices, and change techniques that capture a comprehensive view of the organization, its outcomes, and its leadership.

• As we explain below, the framework high-lights the inherent tensions and contradictions that face organizations and leaders as they navigate their complex and changing environments.

• It predicts the future success of enterprises with significantly greater accuracy than alternative models currently on the market.

• It goes beyond the capabilities of other approaches to leadership development, organizational change, or financial valuation in its ability to forecast, measure, and create positive value in organizations.

Dynamics

• One of the most important applications of the Competing Values Framework is as a guide for change.

• Hundreds of organizations have used the framework to diagnose and implement culture change, establish competitive strategy, motivate employees, facilitate organizational development and change, implement quality processes, develop high potential leaders, and so on.

• Using the framework to guide change initiatives has uncovered the existence of two secondary dimensions.

• These dimensions can helpguide the improvement in performance and create value.

• One of these secondary dimensions identifies key differences in dynamics, or approaches to change.

• Specifically, think of a continuum stretching from the upper right quadrant in the framework to the lower left quadrant. This continuum separates an emphasis on change that is new, innovative, unique, and transformational from small incremental change that emphasizes efficiency, predictability, and continuity in the lower left quadrant.

• This continuum separates a focus on the new from a focus on the better.

• Some organizations such as Cisco and 3M create value by focusing primarily on new product development and creating new market niches (being new), whereas other organizations such as CH2MHill and Walmart focus primarily on rationalizing processes and continuously improving existing services and delivery systems (being better).

Now think of a continuum stretching from the lower right quadrant to the upper left quadrant. This continuum separates an emphasis on fast, short-term, immediate change (lower right) from an emphasis on long-term, developmental, sustained change (upper left). This continuum separates a focus on speed from a focus on long-term development.

Companies celebrated by Fast Company Magazine or Inc. Magazine, for example, are recognized because of their emphasis on reducing cycle times and producing value in ever more rapid time frames.

Speed drives value creation activities. By contrast, firms such as McDonalds, Rubbermaid, Walgreen’s, and Berkshire Hathaway are recognized for their emphasis on staying power overtime and the value they place on endurance and toughness.

Resiliency drives value creation. Figure illustrates these dimensions.

Secondary dimensions of the Competing Values

Framework – approaches to change

• The dynamics dimension separates value creation strategies on the basis of speed and scope of action.

• Two key questions addressed are: ‘How quickly must we act to create value?’ (velocity) And: ‘How much change must we initiate to create value?’ (magnitude).

• The velocity of value creation activities separates rapid, short-term value creation (the Compete quadrant) from deliberate, long term value creation (the Collaborate quadrant),and the magnitude of value creation separates dramatic transformation (creating new value) from incremental improvement (producing increasing value).

• That is, the Create quadrant is juxtaposed with the Control quadrant by this continuum.

• As leaders consider ways in which they must respond to or anticipate opportunities in their organizations, both speed and scope issues represent critical choices upon which value creation will depend.

• For example, at the beginning of this past decade, Reuters was required to engage in an immediate, rapid-fire transformation in order to reverse the downward spiral of investor confidence that threatened the survival of the firm.

• High-velocity, large magnitude change was essential. On the other hand, even in the face of a major threat to its credibility resulting from fictitious stories being passed off as factual news, the New York Times approached change efforts in methodical, incremental ways so that a continued foundation of stability and security was maintained. A more deliberate, developmental strategy was pursued.

• Incremental contributions to value creation (low magnitude) emphasize improving and enhancing existing processes, products, and services as continuity is maintained, typical of the Control quadrant.

• Breakthrough or transformational value creation (high magnitude), on the other hand, emphasizes radical innovations and extending processes, products, and services into previously unexplored arenas, which typify the Create quadrant.

• Measurement criteria in the former case are easier to quantify and record, whereas measurement criteria in the latter case often need to be invented or created anew.

Level of Analysis

• A second supplemental dimension in the Competing Values Framework refers to the different levels of analysis that it is also useful for leaders who desire to create value to consider.

• Whereas the issue of level of analysis is not unique to the Competing Values Framework and has been of central concern in management and organizational studies for decades (Cameron,1980), the Competing Values Framework highlights the need for congruence among individual dynamics, organizational dynamics, and different types of outcomes associated with value creation.

• Figure illustrates the dimension relating to levels of analysis.

• The figure highlights three major levels of analysis – an external outcomes level, an internal organization level, and an individual level. Each level emphasizes different elements in value creation which, when aligned in a congruent way, reinforce and enhance one another.

• For example, in Figure, the outside layer illustrates factors that relate to valued external outcomes produced by the organization, such as customer loyalty, innovative products, shareholder return, brand identity, or global competitiveness.

• These outcomes refer to different kinds of value created by organizations that have an effect beyond the boundaries of the organization itself.

• They stand in contrast to the internally-focused outcomes that are often used to determine effectiveness–sales, profits, or efficiency.

Secondary dimensions of the Competing Values

Framework – levels of analysis

The Competing Values Framework makes clear that achieving valued outcomes in each of the quadrants is crucial for organizational effectiveness over the long term.

Leaders should consider multiple outcomes in each of the quadrants, in other words, as they pursue value creation strategies.

Narrowly defining value to include only financial outcomes, for example, often ends up producing only short term results while compromising long-term value creation.

The development of a well-rounded outcomes portfolio (Gadiesh and Gilbert, 1998) guided by the Competing Values Framework, in other words, is an important prescription for ensuring long-term success and value enhancement.

• This does not mean that all organizations must be equally balanced in all four quadrants to be successful.

• An organization such as Dell focused traditionally on mastery in the Control and Compete quadrants to create value.

• As conditions changed, however, competencies in other quadrants became important for sustaining value creation.

• For example, Dell had to creatively adapt to declining PC sales and sagging employee morale in 2003.It did so by becoming more innovative in marketing and outsourcing processes (the Create quadrant),and by reformulating the office of the CEO (appointing

• Introducing the competing values way of thinking Kevin Rawlins as CEO) and the organization’s global culture.

• It created amore collaborative culture to balance the company’s Control/ Compete strengths.

• The ‘internal organizational level of analysis’ refers to elements inside the organization that facilitate value creation.

• Examples include organizational design, the cultural profile, production processes, incentive systems, strategic initiatives, and core competencies, all of which must be considered as value creation is pursued.

• The Competing Values Framework helps guide leaders in identifying which elements within the organization – for example, efficiency measures (Control quadrant),employee engagement activities (Collaborate quadrant), innovation strategies (Create quadrant), or approaches to customer service (Compete quadrant) – can be emphasized, and to what degree they should be emphasized as value creation strategies are formulated and implemented.

• Without such a framework to guide strategies and initiatives, leaders risk ignoring important elements in the value creation process.

• It is also important to keep in mind that not only must internal dynamics in each quadrant be considered, but the congruence between organizational factors and desired outcomes must also be aligned.

• The ‘individual level of analysis’ refers to factors such as personal leadership competencies, learning styles, skills and abilities, and attitudes that are associated with the individuals in the organization.

• These factors focus on the attributes of individual members in the organization, as separate from the organization’s attributes or outcomes.

• Developing individual leaders, retaining highly valued employees, and fostering a highly energized workforce require attention to individual attributes, and the Competing Values Framework helps identify the importance of a comprehensive view of individual factors for value creation.

• Focusing on a single motivational technique, one incentive system, or a lone leadership approach without consideration for other approaches suggested by the remaining quadrants inhibits long-term success.

• In sum, aligning different levels of analysis – as represented by desired external outcomes, internal organizational dynamics, and individual attributes – is an important condition for effective performance and value creation, and using the Competing Values Framework to help organize those elements makes the alignment more straightforward and unambiguous.

• The different levels of analysis should each be considered in value creation activities, and alignment among them is an important part of successful strategy.

• Considering which level of analysis upon which to focus value creation attempts, in addition to aligning individual competencies with organizational capabilities and desired outcomes, are key choices of leaders wishing to increase value.

• Figure summarizes the core and secondary dimensions of the Competing Values Framework.

• These dimensions illustrate the trade-off sand tensions inherent in value creation activities, and they highlight the comprehensive nature of effective leadership when value creation and effective performance are the desired results.

Core and secondary dimensions of the Competing Values

Framework

An Illustration of Competing Values

In 1937,Kiichiro Toyoda founded the Toyota Motor Company in Japan as a spin-off from Toyoda Automatic Loom Works to manufacture cars roughly based on the designs of Chrysler and Chevrolet.

Toyota emerged from the rubble of war in the late 1950s to become Asia’s premiere manufacturing company and swiftly moved from a regional to a global brand.

Gaining a foothold in the United States during the oil embargo of the1970s, Toyota systematically extended its product array from compact cars, like the Corolla, to mid-size sedans.

In the late 1980s, Toyota accomplished the previously unimaginable by successfully introducing Lexus, a luxury car line to compete with European bluebloods, BMW and Mercedes.

In fact, the newly introduced Lexus established previously unimaginable initial quality records, and may be said to have been the car that most sparked the quality revolution in the North American auto industry.

• At the time, the initial quality level for luxury automobiles averaged approximately 148 defects per 100 cars.

• The first Lexus introduced had an initial quality recordof79 defects per 100 cars ...an almost unbelievable achievement. Today, Toyota is Japan’s biggest carmaker with over $120 billion in annual sales.

• Toyota is one the few companies that has demonstrated an ability to pursue several directions simultaneously.

• The traditional organizational identity at Toyota was highly control focused and internally directed.

• Perfecting ‘lean production ’and ‘just in time’ manufacturing techniques, Toyota became symbolized by quality and efficiency which made it a bench-mark for automobile manufacturing worldwide.

• Engineering, extensive product testing, and process redesign are competencies for which Toyota has become renowned. More recently, Toyota became more adaptive in order to respond to external challenges confronting the firm.

• In the face of internal calls for protectionism, Toyota diversified its manufacturing and assembly plants from its core location in Toyota City in Aichi, Japan, to new plants in many regions of the world.

• To survive the worldwide recession and Asian currency crisis of the late 1990s,Toyota introduced innovative ‘ flexible platform’ manufacturing to manage global supply and demand for their products at optimal prices regardless of currency fluctuations.

• Recently, Toyota has also ventured into non-auto areas such as financial services, and it now runs the Internet portal, Gazoo.com.

• The value creation story of Toyota represents both ends of the core dimensions and dynamics of the Competing Values Framework. Toyota’s initial approach to value creation was characterized by internally focused, incremental, and control oriented activities.

• Fine tuning production and reducing defects were chief areas of concern.

• Thereafter, however, the introduction of a luxury car which exceeded by a substantial margin the quality and design standards of competitors in Europe and the United States– coupled with a dramatically successful global manufacturing and distribution strategy and a rapid automobile design process, put Toyota squarely on the opposite side of the dimensions and dynamics continua.

• The company, in other words, created value by responding simultaneously to competing tensions and opposites. It was both fast and slow, incremental and transformational.

• It created value with flexibility and anticipation as well as with stability and control. It exemplifies a focus on both internal and external concerns.

• It focused on the future and the past, the short-run and the long-run, quick results and long-lasting results, change and stability, transformation and incrementalism.

Functional model for Organisational and Safety Culture

Cultures are usually defined as shared values, attitudes and behaviour of certain group.

The core of culture is inside person’s mind. Only through behaviour or other actions of persons the culture becomes visible and shareable.

Cultural artefacts and all other perceptible signs of culture are formed through action.

From this perspective culture requires functionality. It does not exist nor spread without activity of individuals.

• In systems theory there is a methodological distinction between theoretical system and empirical system.

• Theoretical system “is a complex of concepts, suppositions, and propositions having both logical integration and empirical reference”.

• Empirical system is “a set of phenomena in the observable world that is amenable to description and analysis by means of a theoretical system”.

• However, in cultural context, theoretical models usually describe only properties of the empirical system. Usually the functionality of the culture is left undefined.

• Therefore theoretical models may have flaws in their ability to describe the functionality of the culture, which is essential part of the culture.

• Most organizational culture models are based on the shared mental models of individuals (Schein 2004; Ravasi & Schultz 2006).

• These mental models include values and beliefs, which have been called “the bedrock of culture” (Deal & Kennedy 2000, p.4).

• Organizational culture represents the collective values and beliefs and it can become visible only through behavior or another human action.

• In all these models the shared aspects in the organization where considered as part of the culture (Reiman and Oedewald, 2007).

• These internal psychological models are highly personal.

• Some of these models are used as guidelines with which one operates in the world.

• Thoughts, values and other cognitions need some kind of action to be exposed to other people.

• As long as they are solely inside peoples’ minds they cannot be shared nor be confirmed.

• Gherardi and Nicolini have described safety as “aspect of practice” (2002, p.216), but also organisational and safety cultures are aspects of practice.

• In the context internal psychological factors require some kind of corporal activity to be exposed.

• All human behavior is considered as an action and these actions include talking, writing and all other socially interactive methods of communication.

• In systems theory there is a methodological distinction between theoretical system and empirical system.

• Theoretical system “is a complex of concepts, suppositions, and propositions having both logical integration and empirical reference”.

• Empirical system is “a set of phenomena in the observable world that is amenable to description and analysis by means of a theoretical system” (Laszlo & Krippner 1998).

• However, in cultural context, theoretical models describe only properties of the empirical system.

• Usually the functionality of the culture is left undefined. Therefore theoretical models may have flaws in their ability to describe the functionality of the culture, which is essential part of the culture.

• Our functional model shows the interaction between an individual and an organisation and thus unites theoretical and empirical systems.

Organisational and Safety Culture Models

• Schein’s organisational levels of culture provides the core of all organisational and safety culture models share: underlying assumptions as the basis of culture and its visible manifestations are espoused beliefs and values and artefacts (2004).

• Johnson & al. show behavioural, physical and symbolic manifestations of a culture within an organisation with their cultural web (2008, p.198).

• Cooper has introduced a safety culture model (2000), which is based on Bandura reciprocal determinism model (1986).

• Cooper’s model unites psychological, situational and behavioural factors. Figure shows three different cultural models.

Three organisational and safety culture models

• These models offer different kinds of approaches to (safety) culture.

• Schein’s levels of culture show the basis of the culture in quite abstract level.

• He does not specify in deeper level which espoused beliefs and values or artefacts belong the culture.

• He defines the external observable entities to be cultural if their basis is in the shared underlying assumptions.

• Johnson et al. provide a deeper insight to organisational culture by defining in detail, which organisational entities are also cultural.

• The paradigm is defined as the set of assumptions held in common and taken for granted (Johnson et al. 2008, p.195).

• In that form it is quite equivalent to Schein’s underlying assumptions, which were taken-for-granted beliefs, perceptions, thoughts and feelings (Schein 2004, p.26).

• The most commonly used safety culture model in the safety culture research is the Cooper’s reciprocal safety culture model (Cooper 2001, p.16).

• It states that an organisation’s safety culture is combination of the dynamic interrelationships between individuals’ attitudes, their safety behaviour and organisation’s safety systems support to goal-directed behaviour (Cooper 2001, p.15).

• This model explores safety culture through three different players: person’s attitudes, person’s safety behaviour and organisation’s safety management system.

• When comparing organisation’s role in Cooper’s model (SMS only) to the systems model of organisation in Figure, it is quite obvious that Cooper’s model reaches only small spectrum of the culture.

Combination of three organisational and safety culture models

• The table provides comparison of the three models which combines different views into one picture.

• The table has three lines, which represent the Schein’s model’s view of internal psychological factors and external observable factors.

• The underlying assumptions are the psychological factors. Bothe espoused values and artefacts are visible observable factors.

• The third line presents other socially construed structures, which are not cultural artefacts.

• Column headers in the table are from Cooper’s model: person, job and organisation.

• In the first column, there are person related features. There exists internal psychological factors in all three models.

• Schein calls them underlying assumptions, Johnson & al. call it the paradigm and in Cooper’s model there are perceptions and attitudes (2001, p.15).

• In Schein’s model the observable signs of culture are espoused values and artifacts.

• They can be seen in all Cooper’s triadic model’s elements. In Johnson & al. the stories are person related espoused values and artefacts.

• In the job there are also espoused values and artefacts.

• From Johnson & al. the routines and rituals are in this category. Finally the symbols are organization related artefacts and espoused values.

• The most interesting part in this categorization is the socially constructed structures, which are here considered to be not culture related features.

• Johnson & al. claim that organizational and power structures and control systems are part of the organizational culture.

The benefits and responsibilities of embracing diversity

• Workplace environments are increasingly made up of individuals with different backgrounds, abilities and ways of working.

• In the project-based context, challenges arise when temporary teams need to come together and perform quickly.

• These temporary teams are increasingly international, bring diverse skill-sets and perspectives, and can be located across countries and continents.

• National cultures have been developed over centuries with influences like religion, wars and geographic location all having an effect in building strong values and intrinsic beliefs about how to behave.

• These are influential in shaping behaviours in project-based working.

• As part of stakeholder analysis the project professional may research the drivers underpinning national culture to gain clues about typical behaviours in that culture, but this is not a substitute forgetting to know the people involved as individuals.

National cultures have been developed over centuries with influences like religion, wars and geographic location all having an effect in building strong values and intrinsic beliefs about how to behave.

These are influential in shaping behaviours in project-based working.

As part of stakeholder analysis the project professional may research the drivers underpinning national culture to gain clues about typical behaviours in that culture, but this is not a substitute forgetting to know the people involved as individuals.

Academic and empirical evidence supports the view that value is created from difference and diverse teams can bring about higher performance.

This is because individuals from different backgrounds and cultures are likely to have had different experiences and perspectives they can bring to the team. There can also be a strong sense of inclusion and community that is fostered when people of different backgrounds and abilities come together for a common purpose. The project professional has an opportunity to improve outcomes by harnessing the diversity of the people available.

• Despite the known benefits of diversity and inclusion, human nature is often to favour the people and the things they do that are ‘like us’ rather than ‘different from’ us.

• This can lead to unconscious or conscious bias. Unconscious bias refers to the attitudes or stereo types that affect our understanding, actions, and decisions in an implicit manner.

• These biases may encompass both positive and negative assessments of people and are triggered without an individual’s awareness or intention.

• These biases are different from conscious, or known, biases that individuals know they have and may try to conceal.

• Even when people are working in the same organisation and from the same cultural back-ground, the project professional has the opportunity to embrace the diversity and capabilities of their team. A positive working environment happens when:

• people feel they can be themselves at work;

• ideas and respectful challenge is encouraged;

• differences are understood and welcomed.

• In many countries, it is illegal to discriminate on the basis of age, disability, gender identification, gender reassignment, marriage and civil partnership, pregnancy and maternity, race, religion or belief, sex or sexual orientation.

• If unsure in any way, it is important that project professionals seek advice on how to treat people fairly.

Diversity leads to higher performance

Cultural Factors Affecting International Business

• Culture can be defined as a way of the life of a group of individuals.

• This encompasses the beliefs, behaviour, knowledge, skills, motives, values and attitudes.

• Cultural factors are simply factors that come from various components that relate to a cultural environment or culture where a business operated or consumers belong.

• On the other hand, international business refers to an entity like an international company or multinational corporation that has business operations in multiple countries.

• International business also means the exchange of services and goods among businesses and individuals in multiple nations.

• Culture is the ideas, customs and social behaviour of a particular person or society.

• In a business context, culture relates to what behaviour is common and accepted professionally in one location, compared to another.

• What may be accepted business practice in one country, may be very different from the approach that is used by businesses overseas.

• Therefore, recognising how culture can affect international business is something that should be understood in order to avoid misunderstandings between colleagues and clients, and also to make sure that businesses are presenting themselves to their new market in the best way they can.

The Major Cultural Factors Affecting Internation al Businesses

Language and communication

• In any business, communication is a vital element that determines how successful it becomes.

• However, communication of an international business can be affected by languages barriers.

• Communication both orally and use of body language plays a vital role of enabling a business to know what the basic needs of consumers are.

• An international business that knows how to communicate in different international languages enjoys the benefit of being able to convey the right messages to consumers or prospects.

• On the other hand, languages barrier can be off-putting and a serious challenges in conducting international business even when there is a translator.

• There are times when language barrier leads to ridicules and anger because physical gestures may vary among countries.

• Communication plays an important role in international business, and sometimes effective communication can be the difference between succeeding or failing in a new market.

• Effective communication is particularly important for international businesses as there is a risk of your messages getting ‘lost in translation’. There are several things that need to be considered when looking at how effective your business communication is at an international level.

The first thing that should be considered when looking into communication is any language barriers that may hinder the communication between you and your new market.

However, this goes deeper than just the language that is used to communicate, it’s how the messages are conveyed that’s important.

Language barriers not only relate to people speaking different languages, but also to the tone used in those languages.

For example, The number “3” enjoys both praise and abuse alike.

In Monaco, people like this number very much because they believe it will bring them prosperity.

The Hong Kong people like this number, too, because in Cantonese, “3” is homophonic with “promotion”. But the European generally consider it ominous.

In countries like the US or Germany, it is common for people to speal loudly and be more assertive when sharing ideas amongst colleagues.

However, in countries like Japan people typically speak more softly and have a more passive tone when making suggestion to colleagues.

Negotiatio ns

• Business people in different countries tackle negotiations differently.

• Chief executive officers and managers of international businesses should adapt to how negotiations are tackled in different countries.

• Due to cultural differences and personality in most countries, business persons seem to approach the process of making a deal with the attitude that both parties can win, or one side can win while the other loses.

• While entering a negotiation session, it is crucial that international businessmen know the negotiation attitude of the other party.

• Negotiation is a principal component of international business.

• Culture influences the way they negotiate. It is crucial for businesses to understand cultural differences during business transactions and find ways to hurdle the barriers these differences present.

• Spanish speakers view negotiation as the means to have a contract, while in some Asian countries, negotiations are taken as the way to build stronger and firmer business relationships.

• The Japanese regard negotiation as a win-win process while the Spanish look at it as win-lose process.

• The way one communicates during negotiation should be carefully considered. Israelis and Americas are very direct, so you immediately know if the transaction is approved or not.

• The Japanese, however, tend to be indirect. You have to read and carefully interpret vague signs to know if they rejected or accepted your proposal.

Religion

• Religious beliefs in different countries vary. International businesses should know the religious beliefs of different countries where they operate and respect them fully.

• Religion affects the attitude or values of customers on the products or services that are offered by international businesses.

• Religious factor can’t be ignored, especially for those states ruled by religious authority, since religion lays down a set of fundamental principles and values which govern the behaviours.

• The impacts of religion on can be indicated in individual’s material life and their attitudes toward purchasing and using merchandise and services.

• Sometimes religious traditions even prohibit the use of certain goods and service altogether, like Islam forbids the eating of pork and Hindus do not consume beef.

• Therefore, when Macdonald entered Muslim countries, it has changed its menu to get used to their specific religious practices.

Etiquette

• How people show business etiquette in different countries vary.

• In some countries, business professionals shake hands as a way of showing business etiquette.

• There are countries where culture requires business people to bow, hug or even kiss on the cheek. This affect international businesses because international business professionals should how to show respect for other parties.

• Being aware of the culture’s etiquette of the other part enables international business professionals to avoid making mistakes because some people can be offended by even small gestures.

• Workplace etiquette is something else that businesses need to be aware of it they are working internationally.

• The formality of address is another key things to consider within international business when communicating with colleagues and clients from different cultures.

• Are they comfortable with being approached on firstname basis or do they prefer titles and surnames?

• Asian countries such as China seem to prefer the latter, whereas Americans usually use first names.

• While some may consider working long hours a sign of commitment and achievement, others may consider these extra hours a demonstration of a lack of efficiency or lack of prioritisation of family or personal time.

Tastes

• Culture plays a role in shaping the preferences of tastes and colour of different people.

• Taste affects international businesses because they are forced to modify their products so that they can satisfy the specifics needs of the target consumers.

Attitude

• Businesses also need to be aware that different cultures have different attitudes towards business.

• Scandinavian countries such as Sweden emphasise social equality and therefore they tend to have a relatively flat organisation hierarchy.

• This relates to their informal approach to communication and cooperation normally at the heart of their organisations.

• In Japan, their traditional values of relative status and respect for seniority are reflected in their organisations and there is a very clear organisational structure.

• This means that senior management command respect at all times and expect a level of formality from junior members of their teams.

Why it is important to know cultural factors affecting international business

Variation in cultural factors should be considered by the management of an international business in order to succeed.

This is because culture has a lot of power in the world of business. This power creates insensible ideas and pictures matrix whose impacts are exceptional for international businesses.

When an international business fails to consider culture, it loses credibility from its target customers.

It also gets a negative response from the public. Eventually, it loses revenue.

To avoid this, it is important that an international business knows the cultural factors that are likely to affect its operations.

Organisational environment

Organisations in context

• In many contexts, project-work engages with novelty and uncertainty extending into an unknown future. Projects and programmes therefore entail management under uncertain conditions.

• Yet, it is widely recognised that traditional business models, focused on efficiency, topdown control and desired predictability, only address a small proportion of a rather complex, uncertain and interconnected landscape.

• Uncertainty arises from many sources.

• Leaders increasingly face new challenges, including the emergence of new markets, interconnected global competition, new sources of innovation, rising customer expectations, disruptive technologies, the gig economy and the growing diversification of the workforce.

• Stable and predictable contexts are hard to find and the models and approaches used for managing need to be updated to reflect a world characterised by uncertainty, turbulence, novelty, ambiguity and complexity.

• Moreover, the combination of economic unknowns with political, social and environmental concerns regarding the proposed actions and their longer-term implications requires new ways of engaging with uncertainty.

• The US military coined the term VUCA to reflect the ‘volatility, uncertainty, complexity and ambiguity’ of general conditions and situations associated with a multilateral world following the end of the Cold War.

• The term has been widely adopted to represent increasingly vulnerable and unpredictable contexts.

• The key implication of VUCA conditions is that there is an inherent uncertainty that makes it difficult to predict and plan with great accuracy.

• The rigidity that comes from expecting full and perfect knowledge is unsustainable and unattainable in turbulent contexts.

• Uncertainty defies anticipation and detailed planning.

• Enforcing detailed planning and fixed-price contracting on an uncertain future can be counter productive and business-damaging.

• Change is natural and ongoing as managers learn more about the context they are operating in, enabling them to identify emerging opportunities, respond to new conditions and address shortfalls and differences in outcomes.

• Embracing and managing uncertainty lie at the heart of good project management and insistence on certainty may unwittingly result in mismatches between plans, models and reality, translating into poor project performance.

• Addressing uncertainty entails developing organisational capabilities for dealing with change and fostering readiness to exploit new opportunities, respond and adapt. This is frequently translated into strategic flexibility, corporate resilience or organisational agility.

• Flexible plans, iterations, and proto typing offer vehicles for the experimentation and adaptation needed to inform, adjust and exploit uncertain contexts. These can complement open collaboration approaches and enhanced abilities to innovate and move rapidly and flexibly in order to shape opportunities, change strategic directions and build on adversity in uncertain settings.

• Organisations that invest in flexible planning, options evaluation and scenario planning are already better prepared to respond to emergent conditions and such preparation needs to be reflected in project-work.

Sources of uncertaint y

Strategic implementat ion

Making strategy happen

‘Strategic intent’ is a term used to describe the aspirational plans, overarching purpose or the intended direction of travel needed to reach an organisational vision.

Strategic intent provides the basis for the scrutiny of the continuous alignment of the portfolio of project-work against organisational ambition.

While the strategic intent describes the alignment between ambition and resources, it can become a constraint on growth.

Recognising the inherent uncertainty, as well as the emerging opportunities and threats, is useful to develop a more dynamic basis for balancing evolving ambition with emerging reality.

Strategy implementation, often recognised as the hardest part of the strategy process, is delivered through the execution of strategic projects and programmes and the realisation of their targeted benefits.

From an executive perspective, project-work is an essential part of making strategic investment work. The key focus is on the creation of value through projects that will enable meaningful execution of both deliberate and emergent strategies. This implies extending the scope of interest around projects and programmes to incorporate the realization of benefits that will justify the investment and fulfil the criteria outlined in the business case.

Life cycles play an important role in ensuring that the intended benefits and value are delivered

• Investment in change is one effective way of implementing strategy.

• Projects, programmes and portfolios tend to flow out of strategic decisions made by the organisation and can there-fore be viewed as strategic investments that enable other activities and capabilities to be developed.

• This implies that project-work is concerned with the ability to enact the organisational strategy by enabling benefits to be realised so that the intended value can be accrued.

• Senior leaders within the organisation are able to demonstrate how each project or programme that they fund contributes to the overall strategy.

• Where projects or programmes cannot be justified or aligned with the organisational strategy, their continued operation and purpose can be questioned.

• It is worth noting that supplier organisations managing projects for their clients on a commercial basis may have a different strategic justification for conducting commercial work.

• Project-work may also be needed as an enabler to maintain existing capabilities or assets, ensure compliance with newly introduced legislation or satisfy other professional requirements or business imperatives.

• Corporate leaders are accountable for demonstrating profitability and return on investment (ROI), and therefore view project-work as a critical part of delivering that investment and contributing to the overall benefit of the organisation.

• Portfolios play an important part in maintaining the alignment between project-work and strategic objectives and in enabling the realisation of the benefits that underpin the successful capture of the intended value and securing the return on investment

Hierarchy of strategic intent

Organisatio nal change

Enabling beneficial change

• Change is an established part of life, especially in modern organisational contexts, and is often needed to ensure continued survival or business relevance.

• Avoiding stagnation and maintaining the relevance of strategies, approaches and capabilities often requires processes of renewal and update.

• Combining change management with the management of project-work offers the best potential for delivering new results and capabilities, successfully embedding the change and enabling the required benefits.

• Change management is the overarching approach taken in an organisation to move from the current to a future desirable state, using a coordinated and structured approach in collaboration with stakeholders.

The change management process links strategy with execution, and deployment with operation and the ultimate realisation of the expected benefits.

• Change management is the overarching approach taken in an organisation to move from the current to a future desirable state, using a coordinated and structured approach in collaboration with stakeholders.

• The change management process links strategy with execution, and deployment with operation and the ultimate realisation of the expected benefits.

• Organisational change is typically introduced and implemented into corporate settings through project-work, however that is only the beginning of the process of embedding change and making it the new normal state for the organisation.

• Strategic intent drives organisations to maintain competitive advantage or seek a new one (i.e. change).

• The strategic intent leads to the development of specific change initiatives within a portfolio structure.

• Specific initiatives, aligned to the strategic intent, are selected on the basis of available capabilities and resources that can be deployed.

• Projects and programmes are designed and implemented in order to deploy new assets, functions, capabilities, processes, structures and systems. However, these are devised to facilitate or enable some change: change management activities are integrated with projectworking.

• Only once the deliverables are adopted and used as intended, can the benefits be realised.

• Organisational change encompasses the new behaviours that are enabled through project-work, and change management is the facilitating discipline that makes it possible to embed change, achieve buy-in, bring people along and thereby derive and accrue the new benefits that result from such actions in order to satisfy a business case.

Given that successful change management requires changes to behaviours, there is a significant focus on people, culture and behaviours needed to prepare the organisation, demonstrate the change, encourage buy-in and embed new behavioural norms and expectations around the altered conditions.

Organisations respond to change in many different ways.

Organisational change management begins and ends with the individuals involved, requiring an understanding of resistance, organisational defence routines, pervading cultures and the engagement processes required to bring people along.

One of the biggest barriers to change is knowledge boundaries of various types –including conflicts of interest that (for example) wipe out users’ motivation to absorb knowledge about project outputs.

A good way of embedding change and achieving buy-in from concerned stakeholders is by exploring the proposed impacts through a series of proto types, allowing stakeholders to shape and influence the change situation through a series of meaningful iterations.

Outcomes of change efforts

• Delivering benefits is the primary reason why organisations under take change.

• Given limited resources, there is a need to develop an improved understanding of potential investments and the reasons for undertaking them.

• Making change work for the organisation entails identifying a viable set of potential benefits and delivering value by realising the promised benefits.

• A benefit is a positive and measurable impact of change. However, in some cases, there may be unavoidable measurable declines or negative impacts of change that are acceptable in the context of greater benefits. These are called ‘disbenefits’ and are treated in the same way as benefits.

• The intended benefits are driven by the strategic intent. In a supplier organisation, benefits are likely to be derived from the revenue, profit, opportunities, relationships, gained expertise or market position related to under taking the work.

• Benefits can be tangible (e.g. money saved, jobs created) or intangible (e.g. corporate reputation, capacity for change).

• They may, or may not, also be quantifiable in cash terms (e.g. reduced costs or greater customer satisfaction). Benefits-driven change requires proactive management throughout the entire life cycle.

• An organisation identifies the benefits it needs and initiates changes that are forecast to deliver benefits. Projects and programmes are implemented in order to enable new outputs, capabilities and outcomes to be utilised so that the benefits described in the business case can be fully realised.

• During the change, the organisation needs to monitor performance indicators that can reliably predict benefits realisation.

• Benefits demonstrate the value created by investments. To ensure that value is created and sustained from organisational change initiatives, benefits have to be managed throughout the entire investment life cycle. In order to maximise the value from particular investments and avoid value erosion, it is essential to ask if the proposed investments will realise the promised benefits at an acceptable cost over the full economic life cycle of the investment.

• The forecast benefits of a programme or project are the basis of its business case. It is therefore important to engender a shift from a culture of delivery towards an ethos of value.

• It is only when the output, capability or outcome is used as a result of a comprehensive change programme that benefits are realised, resulting in delivered value.

• Benefits-driven projects and programmes support the investment cycle, with portfolios and governance structures utilised to monitor the results and question the continuing alignment with strategy and the realisation of expected and emerging benefits.

• The sponsor owns the business case and is ultimately accountable for the realisation of the benefits.

• Governance boards and sponsors have a crucial role in emphasising and accentuating the importance of securing and sustaining benefits.

Change of emphas is

Structural Choices

Projects, programmes and portfolios

• There are multiple options for delivering change and benefits, depending on the purpose and overall desire.

• The scale, significance and complexity of the proposed under taking play a part in determining which approach to use.

• Another distinguishing factor is related to the nature of the objectives, which can be defined in terms of outputs (such as delivering a building), outcomes (such as staff being relocated from multiple locations to a new HQ), benefits (such as reduced travel and facilities costs) or strategic objectives (such as doubling the organisation’s share price in three years).

The choice of how to structure investments encompasses projects, programmes and portfolios:

Projects are unique, transient endeavours, under taken to bring about change and achieve planned objectives, which can be defined in terms of outputs, outcomes or benefits.

A project is usually deemed to be a success if it achieves the objectives according to their acceptance criteria, normally within an agreed times cale and budget.

Project-work is conducted across normal organisational functional areas, setting up a temporary organisation, drawing on the skills, expertise and knowledge of the organisation, as well as third parties, where appropriate.

Projects normally use capital expenditure to acquire, upgrade and maintain assets, services, products and capability.

Projects need to take into account the ultimate requirements for decommissioning and disposal.

In some settings, it is possible to find arrangements involving multiple projects running in parallel, or related to one another, to provide support or to build additional capabilities.

Multiple concurrent projects may require prioritisation in terms of scheduled deployment, importance of primary deliverables or the availability of key resources, skills, or individuals.

• Programmes are unique and transient strategic endeavours, under taken to achieve a defined set of objectives, incorporating a group of related projects and change management activities.

• They can be defined as coordinated projects and change management activities combined to achieve beneficial change.

• The distinction between projects and programmes depends on context and the guiding criteria between them often relates to the complexity of scope and the addition of change activities.

• The need for significant improvement will be consistent with the organisation’s strategy, and programmes will help to deliver elements of that strategy.

• Programmes typically combine new deployment with some elements of business-as-usual. Consequently, they utilise capital expenditure to acquire assets, services, products and capability, alongside operating expense incurred as a result of performing normal business operations.

• Programmes are often defined as delivering change, and would typically incorporate the full utilisation of benefits to satisfy the business case.

• The overall measure of success will be determined by the actual realisation of the expected benefits, which frequently involves the use of capabilities or facilities created by the programme in an ongoing, ‘business-as-usual’ manner.

Projects, programmes and portfolios

Portfolios are used to select, prioritise and control an organisation’s programmes and projects, in line with its strategic objectives and capacity to deliver.

Their goal is to balance the implementation of change initiatives and the maintenance of business-as-usual, while optimising return on investment.

Portfolios are used to structure investments. They can be managed at an organisational or functional level (e.g. including all IT initiatives) to optimise strategic benefits or operational efficiency, respectively.

They address a number of major questions:

Are these the projects and programmes needed to deliver the strategic objectives, subject to risk, resource constraints and affordability?

Is the organisation delivering them effectively and efficiently?

Are the full potential benefits from the organisation’s investment being realised?

Portfolios are particularly concerned with the interdependencies between projects and programmes, in terms of: scarce or limited resources; balance within the portfolio (e.g. between risks and returns); alignment with the strategic intent and main priorities; timing; capacity bottlenecks.

• Portfolio success relates to the soundness of the investment and depends on the ability to address the above concerns and questions.

• The management of a structured portfolio involves constant review of the balance of investment and benefit, creating and closing projects and programmes as required.

• Project professionals get to choose between the different ways of structuring project-work by using projects, programmes and portfolios.

• Governance, assurance and oversight structures will match the approach selected for organising the work.

People and behaviours

• Engaging and influencing stakeholders, forming, building and leading teams, and the generic skills and responsibilities of being a project professional are addressed with the objective of making it clear that all project-based work relies fundamentally on the ability of people to work together.

• Stakeholders, those individuals or groups who have an interest or role in the project, programme or portfolio, or are impacted by it, cannot by definition be ‘managed’.

• Rather, depending on their stake, and the role that ideally they will play, the people involved in the work, from sponsor to team member, are part of the effort to keep the stakeholder appropriately engaged and influenced to do the right things.

• This is not easy work and benefits from a facilitative approach rather than assuming that ‘command-and-control’ approaches will be effective.

• Conflicts may well arise and the resolution of these, or containment if resolution is not possible, is essential for all involved parties.

• Groups of people with a common aim are called a ‘team’ on the assumption that the people will not only cooperate with each other but also collaborate to innovate and perform.

• Effective project-based working relies on effective teamwork, often carried out in a context where teams are temporary, multidisciplinary and, occasionally, also geographically dispersed.

• Leading a group of people so they can become a high-performing team is skilled work and some would argue that it is the most important skill that a project professional needs to develop.

• Beyond working with stakeholders and teams, there are other aspects of any role involved in project-based working (from sponsor to team member) that is about managing self and working in a professional manner.

• There are some generic skills that apply to everyone, including effective communication and the ability to manage ones’ own time and work load.

• Project professionals also operate within frameworks designed to uphold the law and professional standards. Doing this ethically and with a focus on continual professional development is avital part of working as a professional in any field.

Engaging stakeholders

• There is wide agreement that understanding stakeholders – those influential, interested individuals and groups who are affected by projects, programmes or portfolios – is critical work.

• However, over the past decades, ‘stakeholder management’ has become a frequently used term.

• The term implies that stakeholder behaviours and actions can, indeed, be managed, i.e. predicted, planned and controlled.

• This section challenges the position that stakeholders can be ‘managed’ and suggests the need to think instead about how we understand, engage and influence stakeholders.

• Identifying and understanding stakeholders is the starting point, but going beyond initial assumptions or generalisations is key, as is understanding stakeholder relationships with each other, as well as with the project, programme or portfolio.

• Deeper understanding, including of organisational power and politics, is the basis for effective engagement – an opportunity to build enough of a relationship with stakeholders to influence their perspectives and behaviour.

• Influencing stakeholders, usually without any position power, is ongoing work for the project professional.

• This work is often aided by adopting a facilitative approach.

• Sometimes, conflict needs to be resolved, or at least managed in order to balance the needs of the project with the needs and expectations of the people involved.

Stakeholders

Understanding who needs to be engaged and influenced

• ‘Stakeholder’ is the term used in most instances to refer to individuals or groups who have an interest or role in the project, programme or portfolio, or are impacted by it.

• Stakeholder theory emerged in the 1960s as a challenge to the idea that share (stock) holders are the only group to whom managers need be responsive. Stakeholder theory focuses on relationships to get the best trade-off of economic and social value.

• In project-based working, this is the trade-off between efficient creation of a solution or change, and people’s support for the design and use of those outputs.

• Stakeholders typically exist both within and outside the organisation that is investing in the project, programme or portfolio.

• Some organisations will include the team who plan and deliver the work as stakeholders; others separate their thinking about stakeholders and how to engage and influence them from their thinking about the team and how to lead them to success.

• Both approaches are valid. Identifying stakeholders is important because any person or organisation who is likely to take a keen interest in the design, deployment and impact of the work can be a help (a backer) or a hindrance (a blocker).

• It is usual for project professionals to identify stakeholders and then analyse the degree to which they may become a help or hindrance by considering a number of criteria, including:

• the relative power of the stakeholder to change how things are done;

• the degree of interest that the stakeholder is likely to demonstrate actively;

• the likelihood of the stakeholder to support the project

• These dimensions are not static and stakeholder analysis is a dynamic process through the life of the project, programme or portfolio to ensure that changes to initial assumptions are validated or updated as more becomes known about the context and its relationship to the people involved and affected.

• Where the social context for project-based working is complex, more advanced approaches to stakeholder analysis are needed to understand issues such as politics, alliances and shifting sources of power.

• Stakeholder analysis is of great value when it is used to shape how the work is planned, delivered and governed.

• The composition of governance boards, the processes for gaining agreement of solutions and benefits, general communication strategies and the risk management process are just some of the aspects of project-based working that need to be designed in the specific knowledge of the stakeholder landscape.

An approach to capturing analysis of stakeholders

Social context

Navigating sociopolitical complexity

• At its heart, project-based working requires an ability for people to work together to develop solutions and solve problems in a constrained environment.

• Success factors include the ability to clearly define roles and responsibilities for team members, the creation of a coherent project culture and the influence of the sponsor and other stakeholders who have a common and supportive view of the project.

• Sometimes, it is relatively easy to establish these success factors.

• Often, it is not because there are many complexities to navigate in the organisational context, for example, multiple organisations, differing perceptions of priorities and/or different cultural norms and expectations.

• On many occasions, the complexity relates directly to people and behaviours and can manifest itself in power struggles, misaligned communication and conflict.

• In projects, programmes and portfolios where the relationships between stakeholders and the team are complex, it can be useful to build an understanding of the social system at play, i.e. the network of relationships and how the influences between actors work together as a whole.

• Social systems recognise that inter connected entities often produce behaviour that cannot be predicted by analysing the system’s parts in isolation.

• Systems are more than the sum of their parts. In analysing a social system, the project professional needs to go beyond simple ideas of whether a stakeholder has high or low power, for example, and to understand and influence sources of power.

• In most situations, project professionals do not have position or hierarchical power with respect to stakeholders and need to influence through their personal characteristics and skills.

• They require as much information as possible in order to work out how to accomplish this.

Organisational politics is also a factor to understand alliances, explicit and hidden agenda and alignment of personal objectives with project objectives. The consideration of the network of relationships and interests is vital to craft appropriate engagement and communication strategies.

Mapping interests and influences in a social network diagram (alternatively called a soft systems diagram in systems thinking) can be a good way for the team to visualise multiple complex relationships and to make sense of who needs to be engaged and influenced and how.

Such a technique can also be really useful to identify people and behaviour-based risks. Where project-based working is socially and politically complex, some of the traditional ideas of planning and control using a linear life cycle are not so effective because there is a low chance of accurately anticipating what is required and when.

Iterative approaches that prioritise collaboration between stakeholders and cocreation of solutions can be far more effective because they balance the need for pace and progress with resolving the uncertainty associated with complex social contexts.

An example social network diagram

Engagement and influence

Working with people to build support to achieve intended outcomes

• Project professionals interact with a range of individuals, teams and organisations, whose support they need to achieve desired outcomes.

• In many cases, the project professional will not have the formal authority to direct staff and stakeholders who have an interest and who are influential to the project’s success.

• As a result, successful accomplishment of objectives is reliant on the ability to engage and influence stakeholders without position power.

Effective engagement improves the chance of achieving objectives by having a positive influence on stakeholders’ behaviours to:

• use and sustain positive interest; or

• minimise or remove negative interest

• Effective engagement requires the project professional to focus on understanding stakeholder perspectives and to address these in order to achieve the intended outcomes.

• Putting in effort to explore stakeholder points of view has the dual benefit of building understanding of the issues and building relationships.

• Influence relies on relationships being built and maintained. Relationships depend on factors such as respect, shared values and trust.

To establish the best possible conditions to be influential, project professionals need:

• Contextual awareness: The ability to select the appropriate time, place and contributors.

• Cultural awareness: Understanding the background and values of both the organisation and the people involved.

• Communication skills: Flexibility of medium used and clarity in message.

• Conflict resolution skills: The ability to challenge in a neutral and fair manner, persuade and find mutually acceptable positions.

• Influence can also be achieved through an understanding of relationships between stakeholders and the politics that shapes those alliances. Stakeholders who support the project can be used to influence stakeholders who do not.

• Influence can be attempted formally and/or overtly, through direct communication and action, or may be achieved through more informal and/or covert and subtle behaviour and action, for example by including an influential but sceptical stakeholder in governance and decision-making activities.

• Engagement and influence of stakeholders must be coordinated across projects within programmes and portfolios.

• A particular stakeholder may only be concerned with one project within a programme, but the influence of the stake holder on that project may have programme consequences.

• Where a stakeholder is affected by multiple projects, the programme manager will ensure that engagement and influence of that stakeholder is coordinated across the multiple projects.

• Stakeholder influence at portfolio level typically requires the involvement and support of senior leaders. The skills required by the project professional to engage and influence are many and varied.

• A facilitative approach is often useful to demonstrate commitment to attending to the stated needs and inferred expectations of stakeholders.

Facilitation

Making it easy to collaborate and solve problems

• At times within projects, programmes and portfolios, it makes sense for project professionals to be directive, leading from the front, especially at time-critical periods or in crisis.

• At other times, especially when the aim is to involve, motivate and engage stakeholders to take ownership, it makes much more sense for them to act as facilitators. This means taking a more neutral stance, encouraging collaboration and encouraging people towards their agreed-upon objectives in away that fosters participation, ownership and creativity.

• When adopting a facilitative approach, the project professional’s role becomes a supporter and encourager, helping everyone to do their best work. A facilitative leadership style suits many team members better than command and control and is more effective in projects that are managed virtually, where the project professional has to work harder to make sure everyone is ‘heard’.

• As a facilitative leader, a project manager makes it easy for people to be involved, for a variety of views to be heard and understood, and for appropriate stakeholders to make decisions together.

• For the project professional, this means stepping back from the content of the discussion and focusing instead on the processes that people will follow to get to the results.

• Sometimes, project professionals find that they are personally too close to the details or that they have a stake in decision-making, and therefore it is not appropriate for them to facilitate a workshop as part of their project or programme.

• In this case, neutral facilitators are worth the investment so that everyone can participate equally.

Organisational Culture

• The word culture has many different and connotations and no consensus has been reached referring to what is organisational culture (Schein, 1985, p.5).

• Smircich (1983, p. 347) noted from the ontological point of view that objectivists tend to see culture as something the organisation ‘has’ and subjectivists as something the organisation ‘is’.

• There are different definitions of culture, the most commonly cited is the one of Drennan (Beech & MacIntosh, 2012, p. 66), which refers to “the way we do things around here” (Drennan, 1992, p. 3).

• Schein (1985, p. 9) defines culture as “a pattern of basic assumptions invented, discovered, or developed by a given group as it learns to cope with its problems of external adaptation and internal integration that has worked well enough to be considered valid and, therefore, to be taught to new members as the correct way to perceive, think, and feel in relation to those problems”.

• Hofstede et al. (2010, p. 6), define culture as “the collective programming of the mind that distinguishes the members of one group or category of people from others.

• According to Johnson et al. (2011, p. 168), organisational culture is “the taken-forgranted assumptions and behaviours that make sense of people’s organisational context”.

• Knowing the culture of an organisation is important because it contributes to the understanding of people responds and reaction in relation to the issues they face.

• Therefore, it will exert influence on change and organisational strategy.

• In order to understand the existing culture and its effect on an organisation, we have to analyse its behavioural, physical and symbolic manifestations.

• A way of achieving this purpose is with the ‘cultural web’ framework (Johnson et al., 2011, p. 176).

• As we can see in figure 6, the ‘paradigm’ is the core of the cultural web, it refers to the collective experience applied to a situation so it can make sense of it and inform a likely course of action, in other words, it relates to the taken for granted assumptions in the organisation.

• People behave in line with the paradigm, therefore understanding what it is and how it informs matters for defining strategies (Johnson et al., 2011, p. 176-177).

• ‘Routines’ are the way of doing things on a daily basis, they provide basis for distinctive capability in the organisation, and also represent a taken-for-granted assumptions of how things should work, which tends to affect people behaviours (Johnson et al., 2011, p. 177).

• ‘Rituals refers to particular events or activities that emphasise what is important in an organisation’s culture, can be formal like inductions for the new recruits or informal like monthly birthday celebrations (Johnson et al., 2011, p. 177).

• ‘Stories’ represent the history of the organisation where important events and personalities are presented, they usually involve heroes, villains, disasters or successful particular situations (Johnson et al., 2011, p. 177).

• ‘Symbols’ are objects, events, acts or people that maintain and create meaning over functional purposes, for example parking spaces closer to the entrance may express higher hierarchy than those that are far from it. It has to be taken into consideration that other elements of the cultural web may also refer as symbolic and not only functional such as routines, reward systems and structures (Johnson et al., 2011, p. 177).

Levels of organisational maturity (Carnegie Mellon Maturity Index ‘CMMI’, 1990)

CMMI was developed by Carnegie Mellon University as part of the CMMI project.

Its goal was to make maturity models—which measure the ability of organizations to have ongoing improvement in a particular area— more effective and usable by integrating a number of models into a single framework.

Process improvement is a systematic and periodic approach to improving the process to make it more effective and efficient i.e. improve quality, timeliness and cost effectiveness.

It helps improve quality, and the inputs and outputs that glue these processes together. It is a way of solving process related problems like improving time to market, quality of deliverables, reducing defects etc.

Process improvement initiatives impact one or more processes depending on the objective to be achieved.

Process improvement can be done at multiple levels for a process, a project, a function, a division, a business unit, entire organization.

The Capability Maturity Model Integration (CMMI) has evolved from the learning, feedback and experience of software organizations across the world that deployed various models (ISO, CMM, etc.) for improving their processes.

The CMMI Product Suite is at the forefront of process improvement because it provides the latest best practices for product and service development and maintenance.

The CMMI models improve the best practices of previous models in many important ways. CMMI best practices enable organizations to do the following:

More explicitly link management and engineering activities to their business objectives

Expand the scope of and visibility into the product lifecycle and engineering activities to ensure that the product or service

meets customer expectations

Incorporate lessons learned from additional areas of best practice (e.g., measurement, risk management, and supplier management)

Implement more robust high-maturity practices Address additional organizational functions critical to their products and services

More fully comply with relevant ISO standards

Levels of Engageme nt

• Given below are the 3 levels of possible engagements that QAI can have with the organization starting from basic understanding of concepts using e-learning to mentoring based customized interventions.

Advanced

• Coaching/workout led

• Typically customized interventions

• Normally un-canned but can be canned on need basis

Intermediate

• Instructor Led Trainings

• Canned workshops but can be customized on need basis

• Supplemented with exercises, scenarios and case studies

Basic

• Eleaning led

• Canned sessions

• Self paced

• Built in evaluation

Initiation:

• Focuses on setting up the foundation for quality and process improvement. To help participants understand the terms, concept and philosophy behind quality and process improvement.

Gap Analysis:

• Focuses on understanding the spirit and philosophy of the model, and thus be equipped to better understand the current organizational gaps/ strengths w.r.t. the model & create a realistic action plan.

Process Definition & Deployment:

• Focus of this layer is to help the participants understand the expectations of different process areas and thus be able to define processes for the same and implement the same

Appraisal:

• This layer focuses on the mandatory trainings that the Appraisal Team Member need to attend to be a part of the SCAMPI appraisal.

Organisational Structure

An organizational structure is a system that outlines how certain activities are directed in order to achieve the goals of an organization. These activities can include rules, roles, and responsibilities.

The organizational structure also determines how information flows between levels within the company.

For example, in a centralized structure, decisions flow from the top down, while in a decentralized structure, decision-making power is distributed among various levels of the organization.

Having an organizational structure in place allows companies to remain efficient and focused.

Understanding an Organizational Structure

Businesses of all shapes and sizes use organizational structures heavily.

They define a specific hierarchy within an organization.

A successful organizational structure defines each employee's job and how it fits within the overall system.

Put simply, the organizational structure lays out who does what so the company can meet its objectives.

This structuring provides a company with a visual representation of how it is shaped and how it can best move forward in achieving its goals.

Organizational structures are normally illustrated in some sort of chart or diagram like a pyramid, where the most powerful members of the organization sit at the top, while those with the least amount of power are at the bottom.

The Theory of Manageme nt

• A central part of the study of organisation and management is the development of management thinking and what might be termed management theory.

• The application of theory brings about change in actual behaviour.

• It helps to view the interrelationships between the development of theory, behaviour in organisations and management practice.

• An understanding of the development of management thinking helps in understanding principles underlying the process of management.

• Knowledge of the history helps in understanding the nature of management and organisational behaviour and reasons for the attention given to main topic areas.

• Many of the earlier ideas are of continuing importance to the manager and later ideas on management tend to incorporate earlier ideas and conclusions.

• Management theories are interpretive and evolve in line with changes in the organisational environment.

As McGregor puts it:

• Every managerial act rests on assumptions, generalizations, and hypotheses – that is to say, on theory.

• Our assumptions are frequently implicit, sometimes quite unconscious, often conflicting; nevertheless, they determine our predictions that if we do a, b will occur. Theory and practice are inseparable.

• Miner makes the point that the more that is known about organisations and their methods of operation, the better the chances of dealing effectively with them.

• Understanding may be more advanced than prediction, but both provide the opportunity to influence or to manage the future.

• Theory provides a sound basis for action. However, if action is to be effective, the theory must be adequate and appropriate to the task and to improved organisational performance. It must be a ‘good’ theory.

Main approaches to organisation, structure and management

The cultural web of an organisation

(Source: Johnson et al. 2011)

• ‘Power’ refers to the ability to persuade others into following certain courses of action, usually the most powerful individuals are closely associated with the paradigm located at the centre of the cultural web (Johnson et al., 2011, pp. 177-178).

• ‘Organisational structure’ is related to hierarchies and the way work flows throughout the organisation, it generally reflects power structures (Beech & MacIntosh, 2012, p. 82).

• The last element of the cultural web refers to ‘Control Systems’ which are the formal and informal ways of controlling, monitoring and supporting people in the organisation, including reward systems and measurements (Johnson et al., 2011, p. 178).

Knowledge Sharing

• Various authors have considered knowledge sharing as the most important part of knowledge management (Jian & Hanling, 2009, p. 2; Bock & Kim, 2002, p. 14; Kalling & Styhre, 2003, p. 57) this supports our choice of research topic as we are focusing our study only on the knowledge sharing process of knowledge management.

• Knowledge sharing is a complex process that is value laden and driven by factors such as culture (national, professional and organisational) and communication (formal and informal channels) within organisations.

• Since knowledge is always situated in a particular context, cultures within this context will affect the way knowledge is created, shared and used (Kim, 2007, p. 2).

• Organisations struggle when implementing knowledge-based strategies, because they underestimate the challenge of cultural change, which is the key of knowledge sharing.

• For that matter, organisations have to focus on having more informed managers that can lead better in terms of cultural change since knowledge sharing depends on it.

• Once cultural change is achieved, when trust and collaboration are embedded in the company, then sustainable progress can be achieved (Smith, 2005, pp. 523-524; 536-537).

• IT-based tools and techniques may support knowledge management and knowledge sharing, but managers should not focus all the attention on it, since project success is related with identifying what knowledge is worth sharing, managers should focus on this subject considering also the social and cultural aspects that creates context for knowledge sharing to happen (Karlsen & Gottschalk, 2004, pp. 3; 9-10).

• Knowledge managers must balance both the content of knowledge (tacit and explicit) and the capabilities to leverage knowledge (infrastructure and process).

• Since both, infrastructure and process capabilities predict performance, optimising only one of them may cost efficiency in terms of knowledge sharing (Gold et al., 2001)

• Based on Kalling and Styhre (2003, p. 78), the theory of knowledge sharing emphasize on the knowledge shared, cognitive abilities of the receivers of knowledge, social context of the organisations that practice this process, and to a lesser extent the motivations to share and receive knowledge.

• Is important to take into consideration when analysing the knowledge sharing process in an organisation, whether to consider it as a bottom-up approach, where knowledge sharing occurs in the everyday practices of working life, such as in conversations, operations and discussions or to consider it as a strategic management issue that aims to create sustainable competitive advantage which instead is a top management priority (Kalling and Styhre, 2003, p. 160).

• In terms of virtual knowledge sharing in an organisation, studies have shown that outcomes expectations are insufficient for knowledge sharing but social capital is the key to achieve a greater level of quantity and quality in terms of knowledge sharing.

• Social capital has a structural dimension (defined by patterns of connections between actors represented by social interaction ties) a relational dimension (defined by relationships people develop with each other through history of interactions represented by trust, norms of reciprocity and identification) and a cognitive dimension (resources providing shared representation and systems of meaning among parties like shared vision and shared language).

• Managers should focus on encouraging interaction and strengthen relationships among members (social interaction ties), in return will obtain high levels of knowledge sharing in terms of quantity which is important in initial phases of knowledge sharing in virtual communities.

• Also should focus in trust, which place an important role in mature knowledge sharing communities because it increases the level of quality of the knowledge shared (Chiu et al., 2006)

• The use of rewards in knowledge sharing has a divided opinion in the literature, one part supports the idea of using rewards as a mean to encourage knowledge sharing (Wang et al., 2014, p. 978; Ismail Al-Alawi et al., 2007, p. 37; Jones et al. 2006, p. 431; Chiu et al., 2006, p. 1885), whereas others believe that reward mechanisms have a negative impact in the knowledge sharing process (Bock et al., 2005, p. 101; Hau et al., 2013, p. 363), and some argue that knowledge management leadership is more essential to knowledge sharing and its success than incentives and bonuses awarded to potential knowledge management users (Alavi et al., 2006, p. 220).

• A plausible explanation for different opinions regarding rewards effects on knowledge sharing, could be that previous studies did not differentiate between tacit and explicit knowledge.

• Since rewards have different impacts on tacit and explicit knowledge, a differentiation among them when studying the impacts of rewards is necessary (Hau et al., 2013, p. 363).

• We want to analyse the use of rewards in project teams to give more findings to the literature and to understand better the effects of rewards on knowledge sharing, which could have also managerial implications on organisations working with project teams in Latin America.

• Social rewards can be distinguished according to Blau (1964, pp. 99-100) in three different ways.

• First, differentiating them between those that can or cannot be trade in social exchange, where the distinction lies in the meaning of the rewards for a particular individual, whether the significance is based on spontaneous reaction rather than calculated means of pleasing him.

• The former will only reward the individual if he assumes they are not primarily motivated by the explicit intention to reward him, the latter will constitute a reward for him even if he knows benefits are expected from him in exchange.

• A second differentiation is made from those that are related to the association between individuals whether this is intrinsic such as personal attraction or extrinsic such as instrumental services (e.g. money).

• A final distinction is made to separate those rewards that are mutually supply for each other and those that are unilateral and based on superiority of power from one individual over another

• Knowledge sharing in knowledge networks is critical (Akhavan & Hosseini, 2015, p. 8).

• Information sharing and knowledge assets are vital for the success of collaborative networks, particularly in supply chain context, where knowledge sharing becomes a key factor in determining performance (Cai et al., 2013, p. 2072).

• In order to achieve organisational goals, knowledge workers need to create and share knowledge.

• When designing effective knowledge networks (e.g. communities of practice) it is important to consider the following.

• First in the knowledge sharing literature, when analysed from a social capital theory perspective, ‘trust’ is the most frequent stated determinant, followed by ‘social network ties’, both from the relational dimension (Akhavan & Hosseini, 2015, pp. 7-8; 13-16).

• Second, ‘trust’ is crucial in enhancing knowledge sharing, ‘power’ in the other hand enhances it indirectly with a passive approach (Cai et al., 2013, p. 2072).

• Third, ‘cultural differences’ and ‘strategic misalignment’ or differences related to success criteria can hamper knowledge sharing in project networks across borders (Solli-Saether et al., 2015, pp. 53; 57).

• A way of sharing knowledge in organisations is by the use of communities of practice, which can be defined as “groups of people who share a concern, a set of problems, or a passion about a topic, and who deepen their knowledge and expertise in this area by interacting on an ongoing basis” (Wenger et al., 2002, p. 4).

• These communities of practice create trust and understanding which allows its members to share accomplishments and mistakes as wells as half-ideas and not only clear bright insights (McDermott, 1999, p. 33).

• They are driven by the value they provide to the members, defined by the opportunities to learn and share knowledge, they develop organically and are bounded by the sense of collective identity their members form. (McDermott, 1999, p. 34)

• There are four different types of communities of practice which can be differentiated by the decision structure or by its transparency.

• The first group can be subdivided in centralised structures (i.e., social planner) or decentralised (i.e., individual decision making).

• The latter means that background information such as work experience, education levels, and individual beliefs is available or not to other members.

• The best performance communities of practice are the ones where the knowledge sharing has a centralized decision structure and high levels of transparency among members (Li & Jhang-Li, 2010, pp. 1052-1053; 1061).

• Tacit knowledge is valuable to business because it embodies expertise, however this knowledge is hard to catalogue and store.

• As a solution to this problem, ‘online communities of practice’ have emerged, connecting and sharing knowledge among organisations with the use of internet (Baker-Eveleth et al., 2005, p. 254).

• Online communities of practices are a way for creation, collaboration and contribution to expertise and knowledge among members (Cheung et al., 2013, p. 1357).

• It is important to encourage contributors of online communities of practice to keep actively participating.

• In this sense, managers should provide mechanisms to members, so they can feel and know that their contributions are making a difference to the organisation.

• When expectations of reciprocity and capability of contributors to help others are fulfilled, their level of satisfaction increases in relation to sharing knowledge experiences, and they will continue to share their knowledge in online communities of practice (Cheung et al., 2013, pp. 1357; 1363-1365).

Tacit knowledge takes more effort to share than explicit knowledge, it involves more cognitive resources to transfer and is more difficult to duplicate therefore researchers assume that has a higher value in relation to explicit knowledge (Hansen, 1999, p. 105; Markus, 2001, pp. 87-88).

However, this is not always true, both tacit and explicit knowledge sharing can create positive and negative effects. The use of knowledge sharing can result counterproductive in some cases, undermining the organisation’s competitive performances (Haas & Hansen, 2005, p. 18).

Also can diminish individuals creativity on project teams depending on the type of knowledge shared (i.e. more tacit over explicit or vice versa) and the dissimilarities between team members expertise (Huang et al., 2014, pp. 826-827).

Haas and Hansen (2007, p. 1151) argue that different types of knowledge sharing affect different dimensions of task performance in firms.

When cross-functional teams face novelty, knowledge integration can be achieved by transcending differences that may come to the surface, rather than clarify, confront and traverse them, in such cases knowledge sharing comes to be little or no useful at all (Majchrzak et al., 2012, pp. 951; 963; 966).

Intentions are predictors of behaviour (Ajzen, 2011, p. 438), understanding knowledge sharing intentions could give management insights regarding what actions to take in order to support and encourage knowledge sharing among employees.

In this sense knowledge management intentions have different effects depending of the type of knowledge to be shared, whether is tacit or explicit knowledge.

On the other hand reciprocity, which is the reciprocal exchange relationship between knowledge providers and receivers, and enjoyment, defined as an internal stimulus based on the exchange relationship between a knowledge provider and his or her ego, have positive effects on both types of knowledge, being the effect of tacit knowledge more considerable.

In terms of individual intentions, rewards have a big negative effect on tacit knowledge and a small positive effect on explicit knowledge, which means it may not be an essential driver forcing explicit knowledge sharing, therefore using rewards is not recommended.

• Regarding social intentions, analysing the most relevant social capital elements in relation to knowledge sharing (i.e. social tie, social trust and social goals), they also have a positive impact on both types of knowledge, having a higher impact on tacit knowledge sharing (Hau et al., 2013, pp. 356358; 363-364).

• Chen and colleagues (2011, pp. 1-4) findings are similar but with little variations, they state that both extrinsic and intrinsic factors can motivate attitudes towards explicit knowledge sharing are motivated by specific intrinsic factors such as organisational based self-esteem which was found to impact positively on this manner.

• Furthermore, Chen and colleagues (2011, pp. 1-4) state that an improvement of social relationship among employees and creating an organisational sense of self-worth are efficient ways to motivate explicit knowledge sharing.

Organisational Culture And Knowledge Sharing

Wiewiora et al. (2014, p. 61) and Suppiah and Sandhu (2011, p. 471) insights regarding knowledge sharing, state that collaboration and friendly non-competitive atmosphere at work will tend to have more trust-worthy behaviours which in return influences tacit knowledge sharing.

On the other hand, organisations with cultures driven by competition and achievement will report less trust-worthy relationships and will have negative effects on knowledge sharing.

Mueller (2015, p. 63) studies are in the same line, where ‘trust in colleagues’ is considered the most important characteristic regarding the knowledge sharing culture followed by ‘autonomy and trust in employees’.

Managers can help establish these type of characteristics in the organisation to enhance knowledge sharing, when employees are expose to positive experiences regarding knowledge sharing they are more likely to practice this behaviour.

Ruppel & Harrington (2001, p. 49), also believed that an organisational culture characterised by high concern for others and an atmosphere of mutual confidence and trust is extremely important for sharing tacit knowledge.

This sharing of tacit knowledge is what they considered to generate the competitive advantage coming from the knowledge management efforts.

Ismail Al-Alawi et al. (2007, p. 37) emphasise even more the importance of trust between co-workers, considering it a critical success factor regarding knowledge sharing, hence they recommended to reinforce it through social events and outdoor discussions.

Moreover, they also found that communication, information systems, rewards and organisational structure, are positively related to knowledge sharing (Ismail AlAlawi et al., 2007, p. 39).

• On a parallel stream of thoughts, Jones et al. (2006, p. 426) considered that promoting a change oriented culture focused on innovative ideas, with members who rely on both explicit and tacit knowledge sharing are initiatives to overcome the barriers that impede knowledge sharing.

• Organising teams around processes instead of functions can help to integrate knowledge across processes.

• Moreover, the use of formal and informal team building exercises will orient people towards willingness to share knowledge and to listen to others (Jones et al., 2006, p. 429).

Reinforcing the idea from a different angle, Bock et al. (2005, pp. 93; 99) found that the greater extent to which an organisational culture is characterised by fairness, innovativeness, and affiliation, the stronger the influence will be towards the subjective norm regarding knowledge sharing. Subjective norms refer to the perceived social pressure to perform or not perform a behaviour (Ajzen, 1991, p. 188).

Fairness are equitable practices neither arbitrary nor capricious. Innovativeness is the perception that change and creativity are actively encouraged and rewarded, and affiliation means caring and pro-social behaviour to help each other. (Bock et al., 2005, p. 94).

Collaboration and leadership are also linked to knowledge sharing.

Studies have analysed knowledge sharing from the collaboration lenses of organisational culture.

Yang (2007, pp. 532; 536) investigated different levels of collaboration in an organisations culture, and found that work-group collaboration contributes way more than immediate superior collaboration and business unit support to the knowledge sharing process.

Also the findings show that leadership roles are important when establishing a knowledge sharing system, a facilitator and mentor role are really useful whereas innovator roles are found to have only a weak relationship with knowledge sharing.

Furthermore, a monitor role should be avoided since it has a negative impact on knowledge sharing, therefore managers should encourage facilitator and mentor roles and discourage monitoring roles (Yang, 2007, pp. 537-538).

This is supported by Alavi et al. (2006, p. 220) who states that leadership is more essential to knowledge management success than incentives and bonuses awarded to potential management users.

• Differences in organisational culture among stakeholders on project networks may act as barriers towards knowledge sharing, the same happens when there is a strategic misalignment (Solli-Saether et al., 2015, p. 57).

• The ability to create a knowledge-sharing culture within a global virtual team rests on the existence and maintenance of intrateam respect, mutual trust, reciprocity and positive individual and group relationships (Zakaria et al., 2004, pp. 15; 25).

• Kathiravelu et al. (2014, p. 120) summarised the components of culture which are found to support or block knowledge sharing in organisations.

• Manager’s commitment, emotional intelligence, fear, the presence of hierarchy in the organisational structure, lack of social network, age differences, gender differences, shortage of resources, conflict of motives, uncertainty, under-estimation of lower levels, conflict avoidance and the general environment at work are found to act as barriers toward knowledge sharing (Kathiravelu et al., 2014, p. 120).

• In the other hand, communication, information systems, rewards, organisation structure, and trust were noted to be visible and invisible factors of the organisational culture that are influential in regards of knowledge sharing and refining the performance of any of this factors will translate on an improvement of knowledge sharing in the organisation (Kathiravelu et al., 2014, pp. 120-121).

Project Teams, Project-based Organisations And Knowledge Sharing

• There are different types of organisations, Hobday (2000, pp. 877; 878) classifies them in six groups (see figure 7), pure functional form, functional matrix, balanced matrix, project matrix, project-led organisations and project-based organisations.

• The second, third and fourth type, vary among each other from having a weak project coordination to a matrix with a strong project management authority and finally reaching a point, where project managers and functional managers are considered to have equal status.

• Project led organisations in the other hand, are those where “the needs of projects outweigh the functional influence on decisionmaking and representation to senior management, but some coordination across line still occurs” (Hobday, 2000, p. 878).

• The last type, Project-based organisations, are firms in all variety of industries characterised for undertaking projects as a growing part of their operations, they involve a creation of temporary systems for the performance of project tasks (Thiry & Deguire, 2007, pp. 649-650).

• In project-based organisations, “the project is the primary business mechanism for coordinating and integrating all the main business functions of the firms, and no formal functional coordination across project lines exist.

• Business processes are coordinated within the projects” (Hobday, 2000, pp. 874; 878).

Different types of organisation regarding the use of projects.

Hobday (2000)

• The more an organisation tends to be Project-based the greater the challenges it will face regarding knowledge sharing than other type of organisations, because it will need to overcome the boundaries emerging from the nature of working with project teams (Mueller, 2012, p. 435).

• Project-based organisations focus more on organising project teams, concentrate their efforts on effective knowledge sharing within project team boundaries and encourage individual knowledge sharing in order to achieve better results (Mueller, 2014, p. 190).

• But even if there is a high potential in the opportunities to learn from project teams, there is also difficulties that challenge the realisation of that potential (Scarbrough et al., 2004, p. 1579).

• Project based learning considers both the creation and acquisition of knowledge within projects and also the sharing of such knowledge to other parts of the organisation, including other projects (Scarbrough et al., 2004, p. 1580).

• Different types of knowledge are shared between project teams at different levels, project leaders usually share knowledge regarding project teams’ management whereas team members share technical knowledge (Mueller, 2012, pp. 440-441).

• There are three conditions which can lead to learning from projects, whether is from within the project itself, from project to project or from project to the greater organisation (Scarbrough et al., 2004, pp. 1579; 1584).

• The three conditions are known as practice based nature of learning, project autonomy and knowledge integration. Practice-based learning considers that craft elements of practice are acquired individually but what is considered acceptable or unacceptable knowledge is developed and negotiated collectively as group. (Scarbrough et al., 2004, p. 1581).

• Project autonomy considers divisions of practice which are distinctively different to the mainstream organisational practices, as enablers of learning within the project (Scarbrough et al., 2004, pp. 1582; 1582).

• Knowledge integration is related to overcoming knowledge barriers arising from pre-existing divisions of practice among team members, these barriers are referred as language, meaning or interpretation and different practice or interests.

• Knowledge integration barriers can be overcome in order to share understandings, with translation into a common language and or transformation through shared problem solving between team members (Scarbrough et al., 2004, p. 1582).

In this sense, four propositions have to be taken into consideration. Knowledge boundaries between project members need to be overcome in order to complete the project successfully (Scarbrough et al., 2004, p. 1584).

Project team boundaries create opportunities for intra-project learning. (Scarbrough et al., 2004, p. 1585). Higher levels of intra project learning arising from higher levels of knowledge integration are associated with higher levels of project autonomy, which is enhanced by the diversity of project team members’ previous practices (Scarbrough et al., 2004, p. 1585).

The greater the degree of learning within the project, the greater the division between new shared practices of project members and practices from other parts of the organisation, this translates into more significant learning boundaries (Scarbrough et al., 2004, p. 1585).

Some particular acknowledgements that managers should make according to Huang et al. (2014, p. 827), when considering knowledge sharing in project teams are: first, recognize that there are different types of knowledge sharing, second, the benefits of knowledge sharing are related with its associated costs, finally costs and benefits of sharing tacit and explicit knowledge, will vary for project teams with expertise-dissimilar members and those whose teams share similarity of expertise.

The Cultural Web, Higher Education and Workbased Learning

• This article explores the key challenges experienced by employers, employees and academics during work-based learning (WBL) programmes.

• Higher education institutes (HEIs) and external employer organisations are increasingly recognizing the benefits of engaging in WBL partnerships.

• These collaborations offer significant benefits to employers, employees and HEIs.

• The challenges associated with WBL place demands on the design of curriculum, pedagogy and accreditation.

• One of the major challenges facing the HEI and employer organisation relates to organisational culture. The purpose of this article is to present an organisational culture web that recognizes the requirements of all stakeholders participating in a WBL partnership.

• An ethnographic methodology combining a number of different datagathering methods was adopted. Johnson’s cultural web is used as a framework to present a series of recommendations for HEIs to review when considering WBL partnerships. The understanding of best practice in the design of WBL programmes is enriched.

Multination al Project Teams

• Global-project teams have been considered as a source of knowledge generation.

• They can provide information about the needs of customers geographically dispersed, from different cultural backgrounds, who speak different languages, and with different set of preferences (Rodrigues & Sbragia, 2011, p. 1).

• Firms are using cross-functional teams for new product development projects, but are also facing issues in making sure these projects are successfully completed.

• Companies have to work different to achieve project success, obtaining team behaviour of cooperation, setting appropriate project goals early in the project and providing good team leadership are the most frequently mentioned ways to overcome such issues (McDonough, 2000, pp. 221-222).

• Projects extending across national boundaries introduce their own set of project management challenges which begins when individuals from different organisations, countries, and from different value systems must share authority, responsibility and decision-making (Shore & Cross, 2005, p. 55).

• Culture may be an important factor in the project management process since it affects behaviour, but the extent to which it then influences outcomes is unclear (Shore & Cross, 2005, p. 62)

• The temporary nature, uniqueness, and complexity of international projects create many pressures for project managers, tension can surface between adapting to the local project environment and integrating the project across the organisation.

• Highly adapted projects employ more aggressive methods than low adapted projects.

• High integration projects use methods enabling richer information exchange in comparison to low integration projects.

• There is a need to achieve balance between local adaptation and organisational integration. (Berteaux & Javernick-Will, 2015).

• Cultural diversity in multinational IT project teams or in near and offshoring arrangements can lead to serious problems, ‘face maintenance’ for example, has been found among Indian teams as a cultural behaviour pattern that can generate problems in multinational project teams (von Stetten et al., 2012, p. 137).

• “Face maintenance” refers to the desire to preserve one’s image as competent, trustworthy person, conversely to avoid appearing weak, foolish or incapable in the attempt of making ourselves less vulnerable to attacks. (Donohue & Kolt, 1992, pp. 58-59).

• Managerial actions can be taken to overcome issues like this one, such as selecting project managers with broad intercultural experience or doing periodic work assignments on site allowing people from different culture to meet face-to-face (von Stetten et al., 2012, p. 148).

• Managing this issues appropriately helps achieving high project performance (von Stetten et al., 2012, p. 149).

• Negative emotions generated from language barriers among team members are also found to reduce performance in Multinational Project teams. Emotions management through Leadership strategies should be applied to overcome these barriers. (Tenzer & Pudelko, 2015, p. 621)

Teams differing cultural, ethnic, gender and corporate backgrounds can be significantly superior to homogeneous teams if they are properly managed.

But they can also be much worse than a poorly managed homogeneous team if differences among members are ignored (Miller et al., 2000, p. 18).

Certain leadership characteristics may enhance the chances of getting the best of these multinational project teams, open style of management increases trust, good sense of humour diffuse potential misunderstandings, interest of Project Managers in their staff as individuals creates good morale, communication is important considering that many teams have members whose first language is not the one used in the multinational team.

Finally understanding and avoiding stereotypes can prevent expectations to affect individual behaviours towards harming the team. (Miller et al., 2000, p. 18).

• Some organisations struggle when trying to exploit the potential of their global network, and this is due to the reason that they manage all their projects like traditional ones.

• However, a single-location project has a reservoir of shared tacit knowledge and trust that a global project lacks (Wilson & Doz, 2012, p. 87).

• Enabling conditions such as collaboration competencies and keeping disruptions to a minimum, on site managers with negotiation power, allocating resources based on availability rather than skills and capabilities, and fostering communication channels are managing actions that help building a capability in global innovation.

• Moreover, these actions are translated into lower development costs, faster time to market, and most important, the ability to leverage dispersed knowledge to gain competitive advantage (Wilson & Doz, 2012, p. 90).

• As previously stated, knowledge sharing is considered the most important part of knowledge management.

• There are several studies that consider organisational culture as a barrier or enabler of knowledge sharing in project teams and organisations.

• Moreover, when considering multinational project teams, other challenges are generated that can put in risk the project itself, the knowledge sharing process and the competitive advantage that comes by hand with it.

• Here lies the importance of identifying the characteristics that enable or hinder this process. Based on the findings of all the studies mentioned in this chapter, a model was elaborated.

• All the characteristics previously found by various authors are grouped into ten different categories including one general category that encompasses characteristics connected with multiple categories.

Framework model based on theoretical background

Organisatio nal Culture and Leadership Defined

• Culture is both a dynamic phenomenon that surrounds us at all times, being constantly enacted and created by our interactions with others and shaped by leadership behavior, and a set of structures, routines, rules, and norms that guide and constrain behavior.

• When one brings culture to the level of the organisation and even down to groups within the organisation, one can see clearly how culture is created, embedded, evolved, and ultimately manipulated, and, at the same time, how culture constrains, stabilizes, and provides structure and meaning to the group members.

• These dynamic processes of culture creation and management are the essence of leadership and make one realize that leadership and culture are two sides of the same coin.

• Leadership has been studied in far greater detail than organisational culture, leading to a frustrating diffusion of concepts and ideas of what leadership is really all about, whether one is born or made as a leader, whether one can train people to be leaders, and what characteristics successful leaders possess.

• ‘Leadership chaos’ might be used to describe the political, social, economic, religious, and environmental conditions for much of the first decade of the 21st Century.

• The difficulties faced in all of these various domains are so drastic that it is difficult to refrain from being sarcastic about the effectiveness and utility of what is referred to as “leadership development.”

• Values are a shorthand method of describing what is important to us individually or collectively (as an organisation, community or nation) (Turkkahraman, 2014).

• They are “shorthand” because the concepts that values represent can usually be captured in one word or a short phrase.

• For example, honesty, openness, compassion, long-term perspective and human rights can all be considered as values.

• Behaviours, which are the outward manifestation of our values, are context dependent (Cubukcu, 2014). Values can be positive or potentially limiting.

• Positive values such as friendship, trust and creativity, help us to connect with others and make a positive contribution to society (James, 2014).

• Potentially limiting values such as blame, bureaucracy and status-seeking, do just the opposite.

• They may enable us to meet our immediate needs, but in the long-term they are counterproductive, often divisive, and frequently result in a breakdown of connection, thereby affecting our relationships and undermining any positive contributions we may have been able to make.

• The frequent utilisation of potentially limiting values as a basis for conscious or subconscious decision-making leads to isolation, separation and failure.

• Potentially limiting values are sourced from the fears of the ego and support the ego’s self-interest (Barrett, 2013).

The role of leadership is to add value to other people and the true measure of leadership is influence, thus a great leader must have the ability to change the attitude or behavior of others (Reese, 2017).

In organizations where leaders lead, the leadership values must be communicated by actions, mostly in the ways in which activities / actions are conducted on a day-today basis, and not so much in words directly spoken or written.

Actions speak louder, but written values that reinforce and support specific actions, and specific actions that reinforce and support written values, make a powerful combination (Healthfield, 2018).

• Values based leadership evolved as a bi-product of the time and culture. The emergence of the twentyfirst century was plagued with extensive, evasive and disheartening ethical leadership failures.

• Neither the public nor private sectors was immune as many leaders were exposed for immoral or unethical behaviors (Copeland, 2014).

• Values based leaders are people who have clear principles, they are honest and congruent in their deeds, they truly inspire those around them, and they feel a greater sense of gratitude towards others than they expect to receive in return.

• Values based leadership can fall short of expectations, whether shortcomings are perceived or genuine (Clarke, 2018).

Leadership values

• Leaders should influence the values of organization (Barnard, 1938).

• Organizations can be mature only when leaders infuse them with values (Selznick, 1957).

• He promoted the concept “responsible leadership” which is described as “a blend of commitment, understanding, and determination”.

• Values are the guiding principles in our lives. Leaders guide and facilitate others to make a positive difference in their own lives and to contribute to a larger good (Sen et al., 2013).

• Values inform the application of leadership qualities as the competencies of leadership are activated – learned, developed, and practiced – within the set of core values (Keyser, 2011).

• By focusing on what people believe and value, and then positively building on this understanding, we have the potential for impact far more wide reaching than if we approached leadership development as a problem-solving activity

• The leader must choose the values that are most important to her / him, the values that s/he believes in and that define her / his character.

• Then must live them visibly every day at work.

• Living her / his values is one of the most powerful tools available to the leader to help her / him lead and influence others (Heathfield, 2018).

• Leadership values are related to personal and organizational purpose(s) and it is important to understand how these two aspects of purpose fit together for each person.

• It's about hiring people that demonstrate care for the purpose the organization is pursuing (Clarke, 2011).

• Organizations that are effective, customer-centric, and employee-oriented, develop a clear, concise and shared meaning of values / beliefs, priorities, and direction within their organization.

• They want every employee to understand the values, contribute to the values, and live the values. Once defined, the values should impact every aspect of the organization. The leader must support and nurture this impact (Heathfield, 2018).

Values based leadership

• People become effective leaders when they are rooted in who they are and what matters most to them (Clarke, 2018).

• Becoming the best kind of leader isn't about emulating a role model or a historic figure.

• Rather, the leadership must be rooted in who the leader is and what matters most to her / him.

• When the leader truly knows her / himself and what s/he stands for, it is much easier to know what to do in any situation. It always comes down to doing the right thing and doing the best s/he can (Jansen Kraemer, 2011).

• Values based leadership has received attention as many charismatic and seemingly transformational leaders had emerged that lacked a moral, authentic and ethical dimension (Copeland, 2014).

• Values based leadership is the only true style of leadership that separates the great from the rest (Clarke, 2018).

• Leaders must lean on the values of the organization to drive performance, especially during times of change.

• An organization's values should be the bedrock of why the institution exists, how it makes decisions and its true purpose.

• They must be authentic and relatively specific so they actually resonate with the team (Gleeson, 2017).

• Values based leadership within the organization manifests the institutional ethos. Institutional ethos clearly articulates values and culture.

• Everything employers and employees do is guided by the institutional ethos. Because it means that leaders have come together to ensure alignment on what the organization stands for. What the long term vision is. It guides decision-making, recruiting and selection, how the organization trains its members and how the institution fights, and the overall expectations (Barret Values Center, 2018).

• Values based leadership means communicating organisational values that tell members how to behave in order to fulfil the organisation’s mission.

• They talk about these values in a way that connects with employees’ personal values, so that employees come to identify strongly with both the organisation and its mission (Daskal, 2016).

• Such leaders focus on core values - the enduring guiding principles that capture the organisation’s strengths and character.

• Because the core values represent the soul of the organisation, they are likely to remain steadfast in the face of changing market trends and fads (Clarke, 2011).

• In order for employees to believe in the sincerity and depth of the organisation’s values, the leadership team must lead by example and communicate the values on an ongoing basis to the entire workforce.

• The values’ effectiveness lies in how well they are embodied by the organisation as a whole (Clayton, 2013).

• The values based leadership is related to leading the team and evaluating performance - both leader’s own and the team's - based more so on the organization's set of values rather than specific metrics and milestones.

• Leaders still have to oversee their team member's ability to execute and be accountable for their role in mission success, but values based evaluations can't be an afterthought (Gleeson, 2017).

• Values based leadership describes behaviors that are rooted in ethical and moral foundations including spiritual, servant, authentic, ethical and transformational leadership (Copeland, 2014).

The four principles of values based leadership are distinguished by Jansen Kraemer (2011):

• The self-reflection. The leader must have the ability to identify and reflect on what s/he stands for, what her / his values are, and what matters most to the leader. To be a values based leader, s/he must be willing to look within her / himself through regular self-reflection and strive for greater self-awareness.

• The balance. It means the ability to see situations from multiple perspectives and differing viewpoints to gain a much fuller understanding. Balance means that the leader considers all sides and opinions with an open mind.

• The true self-confidence. It means that the leader accepts her / himself as s/he is. The leader recognizes personal strengths and weaknesses, and strives for continuous improvement. With true self-confidence the leader knows that there will always be people who are more gifted, accomplished, successful and so on than s/he (the leader), but the leader accepts the self as s/he is.

• The genuine humility. The leader should not forget who s/he is or where s/he came from. Genuine humility keeps life in perspective, particularly as the leader experiences success in her / his career. In addition, it helps the leader value each person s/he encounters and treats everyone respectfully.

• Prilleltensky’s (2000) model for values based leadership focuses on individual, collective, and relationship wellness that together indicate that perceiving one’s own values and values of the group (emloyees), and building relationships to bind the two are the foundations for operating through a values based framework in organisation.

• The researcher asserts that failure to address these three areas of wellness leads those in an organisation to focus on individual gain, and the concept of doing what is best for the collective becomes lost.

• Values based leaders are those with an underlying moral, ethical foundation (Copeland, 2014).

• Thus the successful values based leader will recognize personal and professional values; determine how much variance from established values will be tolerated, and understand the values of internal stakeholders.

• This model relies heavily on recognition of the individual’s role in upholding personal and organisational values. After all, an organisation may have established values, but it is up to the individuals in that organisation to embody them (Graber & Kilpatrick, 2008)

• The values based leadership is not about realizing leader's personal needs for status, fame, or ego satisfaction.

• Instead, her / his actions are based on helping their followers realize their true needs.

• Values based leaders consistently act on behalf of their followers, seeking to provide the conditions and resources those constituencies couldn’t provide on their own.

• The importance of this servant leadership quality is identified, but what is most unusual about these leaders is the consistency of that behavior: unlike paternalistic leaders, they do not seek to impose their personal agendas on their followers; unlike situational leaders, there is a complete and predictable integrity to all their actions; unlike transformational leaders, they do not seek to change their opponents (their every action demonstrates respect for their followers and enemies alike). And they each display a high degree of selflessness.

• That does not mean they are without ambition, but rather their ambition is of an unusual sort: they find personal satisfaction and fulfillment by providing the opportunity for others to realize their goals and potential (O'Toole, 2008).

Responsibl e leadership (Maak and Pless, 2006)

• Thomas Maak and Nicola Pless pick up on the importance of relationships and lay out a relational approach towards responsible leadership in business.

• They do so first by looking at some of today's key challenges for leaders and discuss a diversity challenge, an ethics challenge, as well as a trust, values and stakeholder challenge.

• Faced with these challenges, leadership is a demanding and complex task as leaders have to balance multiple and thus often conflicting values in a creative and ethically sound way.

• The authors define responsible leadership as the art of building and sustaining morally sound relationships with all relevant stakeholders of an organization.

• They then discuss the concept of the leader as a moral person, underscoring that character and virtues are an important element but that a leader also needs ethical intelligence by which they mean moral awareness, reflection skills, critical thinking and moral imagination.

• The roles and responsibilities of a responsible leader is also discussed and propose that he or she is at times servant to others, steward and therefore custodian of values and resources, architect of sound processes and shared systems of meaning, responsible change agent, coach to nurture and support others and, finally, storyteller who uses the means of storytelling to lead responsibly.

Transformatio nal

Leadership

(Bass & Riggio, 2006)

• Transformational leadership theory is the most current leadership theory that attracts many discussions and researches at different levels to prove its effectiveness in current world leadership’s pattern, but some are against it.

• Transformational leadership is all about empowering followers to develop themselves and improving their performance beyond expectation (Bass & Avolio, 1990 as cited by Taly el al., 2002).

• It has also been argued by (William, L. K., et al. 1995. p. 331) that “transformational leaders have charismatic leadership behavior whereby they attempt to inspire their followers in return to faith and respect.

• They also have a clear sense of mission that they attempt to convey to their followers.

• It further evidenced that such leaders also tend to have superior debating skills, technical expertise and persuasive skills.”

• The transformational leadership theory’s platform is build of four main concepts (Intellectual Simulation, Individualized consideration, Idealized Influence and Inspiration Motivation) which are under heavy criticism from the opposing side of the idea that they are highly correlated to charismatic behaviors (Northouse, 2007 as cited by Marturano, 2004).

• Meanwhile transactional leadership theory uses the existing organizational structures to build energy of the followers in return for rewards. (Davidhizer & Shearer, 1997 as cited by Bruce & Robert, 2004)

Four I’s of transformatio nal leadership theory

• Intellectual Simulation- the leader encourages followers to explore new ways of doing things and new opportunities to learn.

• Individualized consideration-Transformational leader encourage and give support to individual follower to achieve their targets.

• Inspiration Motivation-transformational leaders have clear vision which want to pass to his or her followers in order to help achieve target.

• Idealized Influence-transformation leader act as a role model or mentor to the followers in an organization (Bass & Riggio, 2006. p. 57).

From these perspectives, some scholars have criticized the transformational leadership theory on the ground that is based on few concepts which are not enough to support the idea during its innovation i.e 4I’s. They added further that is difficult to train others to be transformational leaders. Nevertheless other support the theory by saying it’s based on on-to-one individuals and recognized the value and needs of followers. (Northouse, 2001 as cited by John, el at., 2002).

Daniel Goleman Styles of Leadership

• Well-known psychologist Daniel Goleman believes that there are six distinct leadership styles and that each one of them can be useful depending on your context and desired outcome.

• Many psychologists have studied this concept, and Daniel Goleman is one worth mentioning.

• Goleman is best-known for his work on emotional intelligence. However, he also writes about and researches leadership styles.

• Daniel Goleman’s classification of six different leadership styles is the most commonly used in a variety of disciplines. In business, for example, many CEOs and managers study his work to improve their leadership skills.

• In his book Leadership that Gets Results, Daniel Goleman describes six different types of leadership.

• Each type is based on a component of emotional intelligence.

• According to Goleman, these six leadership styles aren’t incompatible.

• On the contrary, the best leaders are able to use elements of each style to best adapt to the situation at hand.

• Authoritative, democratic, affiliative, visionary, pace-setting, coaching.

• 1. Authoritative leadership- this first leadership style is based on disclipline.

• People who follow this style prioritize maintaining discipline above all. To that end, they usually give short, concrete, and precise instructions.

• In general, the consequences for not following their instructions are harsh. These kinds of leaders try to make an example of other’s bad behaviour so that no one will be tempted to slack off. This leadership style doesn’t usually make the team feel motivated.

• Employees feel like they have no control over their work. They get the impression that they are no better than machines.

• Consequently, you should only use this leadership style in extreme situations.

• It’s useful if you need to take very concrete action or if your organisation or group has a lot of problems. For example, during an emergency or for an extremely complex task that requires precision.

• 2.Democratic leadership

• This leadership style states that it’s very important to take everyone’s opinions into account when making a decision. That usually means having a lot of meetings, debates, and discussions. This style is especially useful in cases where you have a lots of time to choose a particular path. It’s also handy when the group members have similar backgrounds.

• Democratic leadership is also helpful when you are working with a cross-functional team. In this context, you have to blend the difference disciplines in order to move the project forward. In other words, you have to find the places where different disciplines overlap and coincide so that everyone’s work fits together.

• 3. Affiliative leadership

• The third type of leadership is based on creating bonds between the team members.

• That way, they are able to work and collaborate in harmony. Leaders who use this style try to ensure there is a good work environment because they understand the effect it has on their employees.

• The main problem that these kinds of leaders face arises when there is a significant lack of discipline and organisation. They can also have trouble during conflicts because people will be more emotionally invested in the situation.

• 4- Visionary

• Leaders who use this leadership style motivate their employees with a clear and exciting vision. They also help each person see their role within that vision.

• The main advantage of this type of leadership is that everyone has a clear picture of the end goal. That makes everyone feel more motivated.

• In general, this leadership style is one of the most popular as of now.

• 5- Pace-setting leadership

• The role of a pace-setting leader is to set a course of action and make sure everyone sticks to it.

• The pace settler wants to set an example for everyone else. In general, they are managers and bosses who like to feel like they play the leading role in a project.

• The problem with this leadership style is that it makes it impossible for the team to propose something new that isn’t just an imitation of what the pace-settler is doing.

• This type of leadership is especially effective when the leader is an expert in the field. As a result, the rest of the group members have to see the project as a learning opportunity.

• 6- Coaching leadership

• The last type of leadership is based on helping the members of a group find their strengths and weaknesses. Then, the coach will help each person develop to their full potential.

• The idea behind this style is that a good worker will have more to offer than one who hasn’t maximized their potential.

• Each of Daniel Goleman’s leadership styles has its advantages and disadvantages.

• That’s why its important to carefully analyse the situation and choose the one that works best depending on the circumstances.

• Developing leadership skills is useful not only for managers and supervisors, but for anyone who has to work on a team to achieve a goal.

Distributed leadership (Gronn, 2000)

• Is a group activity that works through and within relationships, rather than individual action (Bennett et al.2003)

• Collaborated, collective and coordinated distribution (Spillane & Diamond, 2007)

• Is not a new concept at all (Hoy & Miskel, 2012)

• It is used since the 50s (Gibb 1954, Gronn, 2002)

• It still continued to be explained under concepts such as self-leadership, super leadership and shared leadership (Bostanci, 2012)

• Is the sharing and distributing of leadership practices (Malloy, 2012)

• Individual expertise is the focus rather than position (Anderson, et.al.,2008)

• It is necessary to be used in education context (Heller & Firestone, 1995)

• It provide equal chances and status for the staffs to realize the goals of the school

• Working for the same goals with continuous communication and interaction rather than individual effort.

Conceptu al Model

Cross cultural leadership (Hofstede, 1991)

• Hofstede's cultural dimensions theory is a framework for cross-cultural communication, developed by Geert Hofstede.

• It describes the effects of a society's culture on the values of its members, and how these values relate to behavior, using a structure derived from factor analysis.

• He developed his original model as a result of using factor analysis to examine the results of a worldwide survey of employee values by IBM between 1967 and 1973.

• The original theory proposed four dimensions along which cultural values could be analysed: individualism-collectivism; uncertainty avoidance; power distance (strength of social hierarchy) and masculinity-femininity(task-orientation versus person-orientation).

• Hofstede's work established a major research tradition in cross-cultural psychology and has also been drawn upon by researchers and consultants in many fields relating to international business and communication.

• The theory has been widely used in several fields as a paradigm for research, particularly in cross-cultural psychology, international management, and cross-cultural communication.

• It continues to be a major resource in crosscultural fields.

• It has inspired a number of other major crosscultural studies of values, as well as research on other aspects of culture, such as social beliefs.

• In 1965 Hofstede founded the personnel research department of IBM Europe (which he managed until 1971).

• Between 1967 and 1973, he executed a large survey study regarding national values differences across the worldwide subsidiaries of this multinational corporation: he compared the answers of 117,000 IBM matched employees samples on the same attitude survey in different countries.

• He first focused his research on the 40 largest countries, and then extended it to 50 countries and 3 regions, "at that time probably the largest matched-sample crossnational database available anywhere.“

• The theory was one of the first quantifiable theories that could be used to explain observed differences between cultures.

This initial analysis identified systematic differences in national cultures on five primary dimensions:

• Power distance index (PDI)

• Individualism vs. collectivism(IDV)

• Masculinity vs. femininity (MAS)

• Uncertainty avoidance (UAI)

• Long-term orientation vs. short-term orientation (LTO)

• As Hofstede explains on his academic website, these dimensions regard "four anthropological problem areas that different national societies handle differently: ways of coping with inequality, ways of coping with uncertainty, the relationship of the individual with her or his primary group, and the emotional implications of having been born as a girl or as a boy".

• In 1984 he published Culture's Consequences, a book which combines the statistical analysis from the survey research with his personal experiences.

International communication

• In business it is commonly agreed that communication is one of the primary concerns.

Practical applicatio ns of theory

• So, for professionals who work internationally; people who interact daily with other people from different countries within their company or with other companies abroad; Hofstede's model gives insights into other cultures.

• In fact, cross-cultural communication requires being aware of cultural differences because what may be considered perfectly acceptable and natural in one country, can be confusing or even offensive in another.

International negotiation

• In international negotiations, communication style, expectation, issue ranking and goals will change according to the negotiators‘ countries of origin.

• If applied properly, an understanding of cultural dimensions should increase success in negotiations and reduce frustration and conflicts.

• For example, in a negotiation between Chinese and Canadians, the Canadian negotiators may want to reach an agreement and sign a contract, whereas the Chinese negotiators may want to spend more time for non-business activities, small-talk and hospitality with preferences for protocol and form in order to first establish the relationship.

Hofstede’s Power distance Index

Hofstede’s Power distance Index measures the extent to which the less powerful members of organizations and institutions (like the family) accept and expect that power is distributed unequally.

This represents inequality (more versus less), but defined from below, not from above. It suggests that a society’s level of inequality is endorsed by the followers as much as by the leaders. PDI is a measure of how a culture, such as a country, business or team, recognizes hierarchy. A totalitarian regime has a high power distance index, while a democracy has a low index. An entrepreneurial startup likely has a lower PDI than a wellestablished decades-old company, although companies like Apple and Google attempt to maintain a low PDI.

Hofstede’s dimension of uncertainty avoidance refers to a society’s general tolerance of ambiguity or the unknown.

This is reflected in the extent to which a given culture will utilize rules, societal norms and standardized procedures to reduce uncertainty with regard to future events, decisions or occurrences.

The Uncertainty Avoidance Index (UAI) assigns numerical scores to quantify the level of uncertainty avoidance held by individuals in various countries.

People in cultures with high uncertainty avoidance prefer to minimize uncertainty with careful planning and regulation as well as a reliance on tradition.

Conversely, cultures with low uncertainty avoidance are more open to change and alternative ways of thinking or approaching a given situation.

Long Term Orientation v/s Short Term Orientation

• The original theory proposed four dimensions.

• In 1991 Michael Harris Bond and colleagues conducted a study among students in 23 countries, using a survey instrument developed with Chinese employees and managers.

• The results from this study led Hofstede to add a new fifth dimension to his model: long term orientation(LTO) initially called Confucian dynamism.

• Hofstede‘s new dimension is based on the study of Michael Bond in Hong Kong which had noted that Hofstede’s previous four cultural dimensions did not adequately reflect Asian perspectives on culture.

Long-term Orientation

• It is when you are focused on the future. You are willing to delay short-term material or social success or even shortterm emotional gratification in order to prepare for the future.

• If you have this cultural perspective, you value persistence, perseverance, saving and being able to adapt.

• The following characteristics can be perceived in high scoring nations: family is the basis of society, education and training are highly valued and elderly people and men have more authority than young people and women. This is especially perceived in Asian countries

• Persistence (perseverance)

• Ordering relationships by status

• Thrift

• Having a sense of shame

Short-term Orientation

• It is when you are focused on the present or past and consider them more important than the future.

• If you have a short-term orientation, you value tradition, the current social hierarchy and fulfilling your social obligations.

• You care more about immediate gratification than longterm fulfilment.

• Low scoring countries promote high creativity and individualism.

• People treat each other as equals and they are willing to help each other execute the most innovative plans and ideas.

• Personal steadiness and stability

• Protecting your face

• Respect for tradition

• Reciprocation of greetings, favours and gifts.

Why is it importan t?

• Knowing a person’s cultural time orientation is important i.e. weather they are short– term or Long-term oriented.

• It is a major factor in management and in negotiation because it plays a large part in Motivation.

• Organizations and managers who knows time orientation of their employees will be able to fashion appropriate motivating incentives that align with their orientation.

Examples:

• Short time incentives like Bonus

• Addition to the PF fund as a long term incentives

Mission Statement Highlights

• Apple designs Macs, the best personal computers in the world, along with OS X, iLife, iWork and professional software. Apple leads the digital music revolution with its iPods and iTunes online store. Apple has reinvented the mobile phone with its revolutionary iPhone and App Store, and is defining the future of mobile media and computing devices with iPad.

• “We will devote our human resources and technology to create superior products and services, thereby contributing to a better global society. Our management philosophy represents our strong determination to contribute directly to the prosperity of people all over the world. The talent, creativity and dedication of our people are key factors to our efforts, and the strides we've made in technology offer endless possibilities to achieve higher standards of living everywhere. At Samsung, we believe that the success of our contributions to society and to the mutual prosperity of people across national boundaries truly depends on how we manage our company. Our goal is to create the future with our customers” (SAMSUNG)

Criticism of Hofstede Model

• Hofstede’s findings are from a single company IBM, and his informants worked with a single industry the information technology industry.

• Data used by Hofstede to construct national cultural comparisons were largely limited to response from marketing-plus-sales employees (McSweeney, 2002).

• The effect of organizational culture were single and same

• Method of questionnaire is not effective

• Sample size in each country was different

HOFSTEDE DIMENSIONS ARE OUTDATED

• Hofstede’s research was based in surveys between 1967 and 1973. During that period, the economic and political condition in most of the countries were different.

• First reason is globalization the broadening geographical inter-linkages of products, markets, firms and production factors.

• Statistics from UNCTAD (United Nations Conference on Trade and Development), number of companies invest overseas and multinational companies (MNCs) operate worldwide are continually increased for decades each business organization has its own culture promoted

• Most of these companies operate globally, the organizational culture practices are consequently almost the same.

• Example: Global products such as McDonald s, Starbucks, Coca-Cola and jeans also influence people s lifestyles.

• Another key factor which rapidly stimulates this trend is advance technology

• e-mail, social-network, fashion, music and movies

• Most distinct and easiest means of cultural exchange

• Internet servers may directly or indirectly absorb other different cultures from what they have seen or heard and may imitate those norms.

• New generation of the sample countries; those who were born after 1973, were not taken into account of Hofstede’s research

• New generation is now becoming the effective workforce of the countries and can reflect the changes occurred in the society.

• One important driver which should be considered is education

• Students studying abroad increases every year due to which the students explore and adapt to the overseas culture

• Stimulates the cultures exchange in the global environment and then gradually invokes cultures to merge

• Changes in household structure

• Increasing number of nuclear family

Organisational Change

• Organisational change is the adoption of new idea or behavior by an organisation. It is the way of modifying an existing organisation.

• It is the process in which an organisation changes its structure, strategies, operational methods, technologies and the organisational culture to affect change within the organisation and the effects of these changes on the organisation.

• Organisational change can be continuous or occur for distinct periods of time.

• Managing organisational change is the process of planning and implementing change in organisations in such a way as to minimize employee resistance and cost to the organisation while simultaneously maximizing the effectiveness of the change effort.

• The factors such as rapidly growing technology, globalization of market will force every business to change.

Types of change

Changes can be seen in different ways.

1. Evolutionary change:

• The evolutionary change do not volatile the traditions and status quo expectations. These changes takes place one by one.

• In evolutionary change, agent see the opportunity for organisation to improve and then they follow it by talking with other peoples.

• A change agent helps to bring changes and then persons within the organisation will understand the change and they follow the change slowly. But the senior level leaders are less drivers of the change. These changes occur very slowly.

2. Revolutionary change:

• It is an immediate change. It is a type of change which come from the top management of the organisation, like the boss of the organisation will ask to do something or he orders to change so the change occur this type of change is called as the revolutionary change.

• Revolutionary changes is relating to political or social change.

3. Planned change:

• It is a scientific way of viewing the change. It is the planned changes within the organisational system.

• Planned changes are made by the organisation with the purpose of achieving something which might be impossible without having a proper plan. Through planned changes organisation reach new progress by working more rapidly toward a given set of goals.

Types of Planned Change

1. Structural change

• Is focused at increasing organisational effectiveness through modification of the existing organisation structure.

• The focus should be on changing the numbers at organisational level. Altering the span of management.

• Changing one base department to another base department.

• Sometimes focus is on reorganisation. Reorganizing involves entirely redesigning the structure of the organisation. It also calls for remarkable changes in the depart mentation, span of control and coordination.

2. Redesigning the task

• It increases the diversity and the scope or depth of the job.

• It means effective utilization of available human resource and proper division of work among those employees.

• The employees are given specific job to perform and the redesigning is done in such a way that it helps to reduce the wastage of human resource and help the organisation to achieve the desired state.

3. Changing the technology

• Technological changes are concerned with the organisation’s production process.

• Competitive forces often compel managers to introduce new equipment, tools or operating methods.

• Many companies are changing its technology nowadays. Introduction of computers to facilitate managerial planning and control.

4. Cultural or people change

• Change emphasizes increasing organisational effectiveness by changing attitudes, skills, perceptions, expectations and values of organisation members.

• Managers initiates such type of changes when performance gap occur due to employee related matters.

Forces For Change

Internal changes: an organisation may change because someone inside finds a new way of doing the same things so the internal changes are takes place within the organisation.

1. Increased size: increased changes in the organisation will create more structures within the organisation. As the organisation prosper and grow in size, they generate more resources. These resources help them to get new opportunities and enter into new market and to experiment with the ideas.

2. Performance gaps: when there is a gap between the targets set by the company and the actual results then it is a time to change for the organisation. And when the organisation do not changes and shifts itself to new changes, then the company will go off the track.

3. Employee needs and values: the organisation should understand the requirements of the employees and they should change their policies and procedures. And the organisation should also change their procedures in such a way that it should not provide more freedom to employees.

4. Change in the chief Executive: the main reasons for the change is changes in the chief executive officer of the organisation. When the new executive officer is appointed he will bring changes in the current working of the organisation, so the new appointed manager might favor different organisational design, objectives, procedures and policies than a procedures. If it is not so, he indulges in making sweeping changes. Thus filling the top vacancies where the new person comes I from outside, presents a strategic opportunity for re-examining the entire structure of the organisation.

External changes:

• Modern manager is change-conscious and operates in the constantly changing environment. Many external changes bombard the modern organisations and make change inevitable.

• In recent years, far-reaching forces for change have included development in information technology, the globalization of competition and demands that organisations take greater responsibility, for their impact on the environment.

1. Technological Change: fast technology development is the major force for the change. Those companies who fail to follow the change will fall back in the race and technological changes brings the profound changes, which are not just changes the way of work but also changes the organisational structure and the work relationship. It also helps to bring more open communications between leaders and the team members.

2. Globalization: globalization means the competitions to the organisation comes from the foreign countries. The main players of the globalizations are multinational and transnational organisational. Globalization change means efficient use of the available resources and obtaining the information to develop the people.

3. Social and Political Changes: social and political changes also influence the organisational change. Many new political and social changes are introduced in the organisation which affects the organisation.

4. Workforce Diversity: diversity in the work force is also affects the organisation indifferent ways. If the workforce in more culturally driven or the work force is ageing etc. affects the organisation.

Case study Change

Manageme nt at General Motors:

• General motor established in 1908. That time the company was the sole carmaker dealer in the region. Till 1920, it was the world largest motor manufacturing company, the company got tremendous success.

• At the time of Alfred Salon, due to his leadership the company was producing new style and design cars every year, and he had given such concept to the company.

• The other brands of the company are Chevrolet, Pontiac, Buick, and Cadillac. These were the different brand cars which were produced by the company at that time, and this way there were no other competitors to compete.

But with the emergence of the Japan’s automakers, the company felt threatened, specially the emerging of Toyota Japan, the profitability of the GM especially in the North American market got disturbed.

In 2001, the sales graph of the GM showed a declined trend, because the Toyota had captured the market, this way the GM received loan form American government and Canadian government to support the company in that crises period.

During 2009, the company had faced bankruptcy and had closed several brand and sold out to a China based company. Now the company again got its position in market by restructuring and making change in the company. The company is again operating business in the core brands in America such as Chevrolet, GMC, Buick, and Cadillac.

Forces for change:

• External forces: The GM which was greatly affected by the Japan based company Toyota, emerged competitor in that time. The North America is still the biggest market place for GM where the company sold out in recent year round about 2.9 million and the nearest competitor is Toyota and China based companies, these competitors with great extent disturbed the total profitability of the general motor, and the second external forces which the company faced a huge problem was financial crises which with great extent collapsed the cash flows of the company.

• Internal forces: The another force for change to GM was the high wages cost to employees as the company was paying $74 per hour as compared to Toyota $44 per hour, because GM was an agreement with trade union. The GM was compelled to run the plant with minimum 80% capacity whether it was needed or not, these things play an important role in the bankruptcy of the company.

Types of changes:

• While going on change management the GM, the company took some steps to adopt change these are the most recent change which the company had taken.

a. Cost cutting : First change that the organisation undergo is cost cutting. The company reduced its cost for some of its products to maintain the profit level. Similarly the company also cut off employees which is major drawback for the organisation. But the company achieved the cost cutting up to 15 billion in the year.

b. Cultural changes : The general motor also changed the culture of the company, the GM removed it automotive product board, and automotive strategy and the team leaders are asked to report directly to the CEO. The main objective of this change is to bring speed up the daily activities and to improve the efficiency of the employees.

Problems of change:

c. Problems of cultural change: Cultural change is based on the top down approach which ignored totally the involvement of the employees.

d. Problems of cost cutting: The cost cutting was favorable to the organisation because they are able to cut the cost efficiently, but the organisation faced huge problems from the different unions like trade union, employee union.

Lifecycle for Business Change

• The early part of the lifecycle shown is concerned with the analysis of the organisation and its business needs in order to determine more effective and efficient ways of working.

• Later activities are about change, design and development, business acceptance testing and following implementation, benefits review and realization.

• Extensive analysis is required throughout the lifecycle and the nature of this work is clearly within the role of the business analyst.

Alignment

• Strategy links the organisation to its external environment. As the environment changes the organisation must adapt. In order to determine where it is going, the organisation needs to know exactly where it stands, then determine where it wants to go, and how it will get there. The resulting output is called the “strategic plan.”

• While strategic planning may be used to effectively plot a company’s longer-term direction, one cannot use it to reliably forecast how the market will evolve and what issues will surface in the immediate future. Therefore, strategic innovation and tinkering with the “strategic plan” have to be a cornerstone strategy for an organisation to survive the turbulent business climate.

The steps shown below are the first four included in the change process plan developed by John Kotter of the Harvard Business School in 1996.

1. organisations and the people in them need to be convinced that a change is necessary.

2. From the stakeholder analysis identify a group of individuals who have significant influence derived from position, experience and vision.

3. The vision is a ‘pull’ factor that gives us a destination and the strategy for getting there.

4. The vision needs to be communicated repeatedly so that people know why we need to change and what the implications of the change are:

Developin g and cascading statement s of vision, mission and values

• Processes to develop vision, mission and values statements may be rational and include consideration of internal and external analyses, or they may develop more creatively as a result of discussion and the expression of aspirations.

• In many organisations, vision and mission are defined by senior management (sometimes with the involvement of key stakeholders).

• These then lead to the formation of plans at a strategic and operational level and may also cascade through to individual objectives.

• Methods used to communicate these include the publication of plans and organisation wide communication and briefing mechanisms.

• The development of a values statement involves defining what matters to an organisation and is considered important by its members.

• This requires consideration at a senior level and the involvement of key stakeholders.

• Increasingly there is a trend to involve employees in these discussions to help define of what the various values mean.

• Wider inclusion and involvement ensures that an organisation’s values are relevant all employees.

Challenges of working with a values framework

• Organisational values need to be embedded into all management practices with managers actively leading and displaying these. Everyone must have a common, agreed understanding of the values.

• A failure to act on, or acceptance of, behaviour which does not fit with the agreed values will undermine the benefits which can follow.

• For managers, this can be challenging as there may be times when it is prudent to ignore behavior or to take an easier course of action. It also places managers’ behaviors clearly into the spotlight.

The impact of organisational culture

Organisational culture is often defined as “the way things work around here”.

Many organisations do similar things, but no two organisations do things in exactly the same way, and no two organisations feel the same. As a manager, you need to understand and work within this culture.

You may be required to reinforce positive aspects of that culture, or support initiatives aiming to influence change regarding any of its negative aspects.

Culture

• Schein (1980) defines culture as the pattern of basic assumptions that a group learns, or which is taught to new members as the correct way to perceive, feel and think in relation to situations they encounter.

• According to Schein, internal culture is not only on the surface of an organisation but also lies beneath.

Schein differentiates between three levels of culture; they are:

1. Level 1: Artefacts – the visible features of an organisation which reflect its culture. This comprises objects, narratives and activities.

2. Level 2: Espoused beliefs and values – often invisible features that encompass the norms, beliefs and values referred to when discussing internal issues. These may be manifested in the mission statement and statements of values.

3. Level 3: Basic underlying assumptions – the deepest level and arguably the most important, including assumptions which shape beliefs and views within the organisation.

Cultural change and the role of the manager

• Line managers play an important role in changing and reinforcing culture.

• Johnson and Scholes’s(1992) culture web is a framework which helps identify aspects of an organisation which can support or hinder culture change.

The elements of the framework are:

• Organisational and power structures; if strengthened or adjusted, will their contribution be greater?

• Stories, signalling what is expected or believed to be important. Stories should support and positively represent the new culture.

• Rituals and routines, including day to day behaviours. Management must act as role models, enacting desired behaviours to enforce change.

• Symbols, or visual representations of the organisation ensure that everything is congruent with the desired culture.

• Control systems, including ensuring support and training is given, or providing an effective infrastructure.

• Power structures, recognising the role of management in influencing what is done.

The increasing need for flexibility

In a rapidly changing business world, organisations need to be able to adapt and respond to the wider environment. The following processes assist with this.

• Organisational design– the process by which an appropriate structure and culture are determined. Good organisational design ensures structures are aligned to needs and facilitates the achievement of goals.

• Downsizing– refers to the permanent reduction in the number of employees, in effect removing unnecessary costs and head count.

• Restructuring– Is the act of changing the structure of an organisation. Over time smaller restructures may be required to ensure that the structure remains relevant and to maximise the impact of the organisation’s capability. Larger restructures may be made in response to issues and challenges affecting the whole organisation.

• Intrapreneurship– employees are encouraged to adopt a start-up mentality, being creative and taking risks to solve issues. This approach has been found to drive culture change within organisations

Change phases

Leading and supporting change

• Managers have an important role to play in ensuring smooth, and effective change.

• Whilst the forms of change, including the reasons for, nature of and speed of change differ, there are core principles which apply when leading and supporting change.

• Models of effective change management provide managers with the tools and templates to plan and implement change, ensuring employees are carried along in support rather than in opposition.

• All models stress the importance of a compelling case being made by those leading change if staff are to cooperate fully, allowing organisations to maximise the benefits.

Supporting and leading others through change requires:

• a clear vision or understanding of the need for change and desired end result.

• confidence to adapt and review plans as required;

• clear communication to ensure everyone is kept informed and understand the end goal.

Abrell, Vogel and Rowell (2014) offer the following advice to managers regarding how to support individuals during change, including the need to:

• be sensitive to individual needs, respecting each person as an individual.

• ensure that you have a strong individual relationship with each staff member.

• lead by example, being a positive role model.

Case Study

Change at Food and Co.

• Food and Co. are a chain of grocery stores which operates in your local area.

• Each store operates independently and prides itself on stocking local produce in response to their own customer preferences.

• Stores have control over their own pricing and are open from7 a.m. to 7 p.m. Monday to Saturday.

• Many stores are staffed by extended families who work flexibly.

• The business has recently come under pressure from a major national retailer who has taken the aggressive strategy of opening a store in every town.

• Economies of scale mean that a greater range of goods are carried and prices are lower.

• These stores also open seven days a week from 6 a.m. to 11 p.m.

• In response, the managing director of Food and Co. announces a series of changes including centralised and standard ordering, an end to local pricing and longer opening hours.

• These will require all staff to share weekend and evening working. The changes are being implemented in two weeks’ time.

Organisatio nal Change

Change Process Models

• Organizations will find it helpful to predefine change process models and apply them to appropriate changes when they occur. Such a model provides the framework for defining the steps needed to handle changes consistently and effectively.

The change process model includes:

• The steps that should be taken to handle the change, including handling issues

• The chronological order in which these steps should be taken

• Responsibilities; who should do what

• Timescales and thresholds for completion of the actions

• Escalation procedures; who should be contacted and when

• Approval authority

• Quality or performance measures and objectives.

• These models are usually input to the change management support tools in use and the tools then automate the handling, management, reporting, and escalation of the process. Change models may include: Normal change, significant (high-risk) change, Major change, Minor change, Standard (preapproved) change, Expedited (short-interval) change and Emergency change.

The Cycle Change Model

Kurt Lewin Model

• Lewin proposed a three stage theory of change commonly referred to as Unfreeze, Change, and Freeze.

Stage 1: Unfreezing

• The Unfreezing is about getting ready to change. It involves getting to a point of understanding that change is necessary. This first stage is about preparing ourselves, or others, before the change (and ideally creating a situation in which we want the change). The more we feel that change is necessary, the more urgent it is, the more motivated we are to make the change.

Stage 2: Change - or Transition

• Kurt Lewin was aware that change is not an event, but rather a process. He called that process a transition.

• Transition is the inner movement or journey we make in reaction to a change. This second stage occurs as we make the changes that are needed. This is not an easy time as people are learning about the changes and need to be given time to understand and work with them.

• Support is really important here and can be in the form of training, coaching, and expecting mistakes as part of the process.

• Using role models and allowing people to develop their own solutions also help to make the changes. It is also really useful to keep communicating a clear picture of the desired change and the benefits to people so they don't lose sight of where they are heading.

Stage 3: Freezing (or Refreezing)

• This stage is about establishing stability once the changes have been made. The changes are accepted and become the new norm. People form new relationships and become comfortable with their routines. This can take time.

• Advantages: It is a simple and easily understood model for change; the model is done through steps.

Lewin’s Three -Step Change Model

• Unfreezing –Change efforts to overcome the pressures of both individual resistance and group conformity.

• Refreezing –Stabilizing a change intervention by balancing driving and restraining forces.

Force field analysis

• Driving Forces: Forces that direct behavior away from the status quo.

• Restraining Forces: Forces that hinder movement from the existing equilibrium.

Unfreezing the Status Quo

Lewin also emphasised the importance of force field analysis. He argued that managers should consider any change situation in terms of:

• the factors encouraging and facilitating the change (the driving forces)

• the factors that hinder change (the restraining forces).

Force field analysis (Lewin)

If we want to bring about change we must disturb the equilibrium by:

• strengthening the driving forces

• weakening the restraining forces

• or both.

The model encourages us to identify the various forces impinging on the target of change, to consider the relative strengths of these forces and to explore alternative strategies for modifying the force field.

Overcomin g resistance to change

• Part of unfreezing existing behaviour will be to break down resistance to change.

• Resistance to change is the action taken by individuals and groups when they perceive that a change that is occurring is a threat to them.

• Resistance is 'any attitude or behaviour that reflects a person's unwillingness to make or support a desired change'.

• Resistance may take many forms, including active or passive, overt or covert, individual or organised, aggressive or timid. For each source of resistance, management need to provide an appropriate response.

Tactics for dealing with resistance to change:

• Education and communication

• Participation

• Facilitation and support

• Negotiation

• Manipulation and cooptation

• Coercion

Reasons for resisting change

According to Kotter and Schlesinger (1979) there are four reasons that explain why certain people resist change.

• Parochial self-interest (some people are concerned with the implication of the change for themselves and how it may affect their own interests, rather than considering the effects for the success of the business).

• Misunderstanding (communication problems; inadequate information).

• Low tolerance to change (certain people are very keen on security and stability in their work).

• Different assessments of the situation (some employees may disagree on the reasons for the change and on the advantages and disadvantages of the change process).

Forms of Resistance to Change

– Overt and immediate

Resistanc e to Change

• Voicing complaints, engaging in job actions

– Implicit and deferred

• Loss of employee loyalty and motivation, increased errors or mistakes, increased absenteeism

• Deferred resistance clouds the link between the source and reaction

Sources of Resistance to Change

Sources of Individual Resistance to Change

Sources of Organizatio nal Resistance to Change

Tactics for Overcomi ng Resistance to Change

• Education and Communication – Show those affected the logic behind the change

• Participation – Participation in the decision process lessens resistance

• Building Support and Commitment –Counseling, therapy, or new-skills training

• Implementing Change Fairly – Be consistent and procedurally fair

• Manipulation and Cooptation – “Spinning” the message to gain cooperation

• Selecting people who accept change – Hire people who enjoy change in the first place

• Coercion – Direct threats and force

Efficacy of the change model for communicating the change process

One of the main steps of Kotter’s Eight-Step Change Model is communicating the need for change.

Thus, adopting this change model helps the organisation effectively share with its key stakeholders, like employees, customers, etc., about the market and the importance of adopting changes.

By maintaining effective communication, the company can convince the workforce and support them in successfully implementing changes (Myers, Hulks and Wiggins, 2012).

Kotter’s Eight-Step Plan for Implementing Change

Establish a sense of urgency by creating a compelling reason for why change is needed. Form a coalition with enough power to lead the change.

Create a new vision to direct the change and strategies for achieving the vision.

Communicate the vision throughout the organization.

Empower others to act on the vision by removing barriers to change and encouraging risk taking and creative problem solving.

Plan for, create, and reward short-term “wins” that move the organization toward the new vision.

Consolidate improvements, reassess changes, and make necessary adjustments in the new programs.

Reinforce the changes by demonstrating the relationship between new behaviors and organizational success.

Kotter’s Eight-Step Plan

 Builds from Lewin’s Model

 To implement change:

Unfreezing

• Establish a sense of urgency

• From a coalition

• Create a new vision

• Communicate the vision

Movement

• Empower other by removing barriers

• Create and reward short-term “wins”

• Consolidate, reassess, and adjust

Refreezing

• Reinforce the changes

Transition Curve (KublerRoss, 1969)

Origins of model

• Developed in the 1960s by Elisabeth

Kubler-Ross

• Published in her book “On death and dying” in 1969

• Originally applied to people who had been given tragic news

• Is now regularly applied to the impact of change in organisations

• Helps you think through the best way to implement change

Movement along curve

As with all models, this is a generalisation

Not everyone will go through all of these stages

Not everyone will go through the stages in the way it is shown on the model

However, this does allow you to predict how people may react when planning change and how to manage it

Important to remember that some people thrive during change and will see it as a great opportunity

Stages

Change Equation

(Gleicher, Beckhard and Harris, 1987)

• The Change Formula and model of Beckhard and Harris (1987) is actually attributed by them to David Gleicher.

• It is a simple yet powerful tool that gives you a quick, first impression of the possibilities and conditions to change an organisation.

• Historically, the change quotation can be seen as a major milestone for the field of Organisational Development.

• Organisation development has expanded gradually over time, in response to the needs of employers who not only want to move their organisations forward in terms of business objectives, but also in terms of employee engagement, as today’s employers now understand connection between employee involvement and organizational success.

• The move to employee involvement in change, and the use of internal or external consultants to manage reactions to change, represents a shift in thinking from earlier management theory, such as Frederick Winslow Taylor’s scientific management approach, which became known as Taylorism.

• This “command-and-control” approach drew a sharp line between managers and employees.

• The underlying philosophy was that “workers work, managers think.”

• Taylor’s method was a reflection of the time, i.e., the industrial age with its factories unions, and assembly lines- environments that needed tight management control.

• Taylor’s view was eventually complemented (replaced) by the human relations movement, as organizational psychology and group dynamics evolved, paving the way for more worker involvement and benefits, and the theory of worker motivation.

The formula by Beckhard is:

Note: the three components must all be present to overcome the resistance to change in an organisation.

Dissatisfaction with the present situation, a Vision of what is possible in the future, and achievable first steps towards reaching this vision.

If any of the three is zero or near zero, the product will also be zero or near zero and the resistance to change will dominate.

Radical Change within Traditional Structures (Oswick, 2015)

• Professor Cliff Oswick and Rosie Oswick explore the meanings and potentials of organisational change, proposing that a wider set of social concerns can enable organisational developments that benefit both organisations and society.

• Traditional approaches to organisational change and progress have drawn upon knowledge based on behavioural science.

• This applies a scientific focus to the study of human actions, drawing on observed patterns of behaviour to streamline organisations and influence change.

• The approach highlights effectiveness and efficiency in an organisation and privileges improved productivity, but can omit corporate responsibilities to society and the individual needs of stakeholders such as employees.

• What appear to be concerns for workforce wellbeing, through activities that improve employee morale and happiness, may in fact be in service of the organisational aims of enhanced productivity and outputs.

• Although this approach supersedes and improves upon previous models that positioned the worker as an extension of the machine they operated, the overarching concern is a top-down, hierarchical and inwardly focused attitude.

• This results in change that is instigated by management, with employees remaining relatively passive in the process.

• Taking this scientific viewpoint means that the focus is on fixing problems, tackling deficiencies, and maintaining the agenda of powerful stakeholders.

• These actions and their underlying motives primarily maintain the organisation’s ‘health’, albeit through a rhetoric of worker choice and wellbeing – for example, asking employees to choose the colour an office wall is painted.

• Unfortunately, this top-down approach can increase conflict between management and employees due to a lack of dialogue, potentially leading to further discord and workforce resistance.

Positive change

• Where traditional approaches to organisational change have adopted a reactive attitude, placing an emphasis on problems and things that are not working, positive approaches look at future opportunities as part of a negotiated dialogue with employees.

• This dialogic change occurs through talk and discussion, shifting the conversation from problems to solutions.

• It acknowledges that change is complex and cannot be managed through former top-down techniques.

• This way of approaching change, through negotiation with employees, is not a method that will reliably produce predictable results, as it involves multiple viewpoints and dialogues.

• Although it adjusts the agenda, dialogic change does not address conflicts caused by differing perspectives and interests; it assumes a consensus can be reached rather than reconciling conflicts between differing entities.

• To encourage the move from hierarchical to democratic approaches, the appropriate conditions for change are required.

• Radical change means that it is done with and by employees, and power is handed to stakeholders who have traditionally been marginalised.

Bottom-up approaches

• An innovative model of organisational change and development is a bottom-up approach. This regards organisations as pluralistic sites which have hierarchies and competing interests, where it is likely that some stakeholders hold privileged positions while others are marginalised.

• To engage in radical change, a bottom-up approach provides opportunities for those who have been in a marginal position to be included and involved in changes.

• This attitude enables constructive dissent, through which employees can be instrumental in driving change via active participation.

• The emphasis is on generative rather than distributive attitudes, so that rather than asking, ”how can we divide resources up?”, the question takes a positive approach asking, “how can we generate more resources?“

• This mode of organisational approach, which is based on positive and constructive forms of change, occurs at a time when millennials – people born between the early 1980s to the mid-to-late 1990s – make up around 50% of the current workforce.

They have been born into an era of technological advancements and less hierarchical forms of education and training.

New ways of running businesses and organisations have also emerged, with people working freelance or on flexible contracts, who may share office space with other freelancers or who work remotely.

Within this ‘new world of work’, as well as among more established organisations, the scholarship and research produced by Cliff, Rosie and other scholars plays a valuable role in providing guidance.

This can assist organisations by helping them to experiment and try new and more inclusive ways of working.

Socially informed approaches

• Traditional organisations may have paid some attention to social issues and provided some level of support; however, this is often motivated by the organisation’s internal interests.

• This may be framed as benefitting employees, for example by improving workers’ lives, but the aim of much development work is ultimately to increase productivity, with employee benefits as a by-product.

• A progressive change approach looks beyond what is good for the organisation to how the organisation can address broader social issues like poverty, education and sustainability.

• A progressive mindset looks outward as a motivation for change rather than prioritising the self-interests of the organisation.

• While some organisations could be described as soul-less in that they lack commitment to positive change, others can be regarded as engaging in soulful activity.

• Within the soul-less organisation, resources can be regarded as fixed and finite (a fixed size of pie).

• Alternatively, the soulful organisation privileges a solution that allows for a bigger ‘pie’ or more of them; this notion embraces abundance and mutual gain.

• Such an attitude requires organisations to shift their focus from unhealthy competition between departments and staff toward cooperation and interdepartmental collaboration.

• The principle of working together rather than against other workers and departments encourages a generative mindset.

• Nevertheless, organisations may adopt elements of this perspective, but still have inward-facing goals, for example building a road to connect rural communities, and in doing so, improving the organisation’s transport links.

• If taken from a different direction, a soulful organisation is concerned with supporting stakeholders to engage in change that is informed by wider social challenges.

• Adopting this philosophy shifts from engaging in community initiatives as a form of philanthropy that benefits the organisation to taking actions that, while benefitting them, also reach out to improve and enhance communities and society.

Soulful organisations

• Organisational change and development that builds a concern for society into its philosophy also includes stakeholders in that change.

• This way of working moves beyond older, hierarchical methods that prioritised scientific measurements and efficiencies.

• Staff are actively involved in processes of change through constructive activities, in contrast to destructive actions such as protest; change happens in partnership rather than being imposed by a remote, hierarchical management.

• As the workforce and working practices alter toward increasingly flexible work-based arrangements, scholarship and new types of leadership that reflect and support this are emerging.

• Top-down approaches are displaced in favour of democratic change, with fluid forms of stakeholder decision-making replacing top-down directives.

• The positives of these new attitudes to organisational change are that stakeholders are involved and central to change, and the benefits to society come not as a by-product of an organisation’s actions but as a part of their overarching purpose.

Competencies

• Competencies are the integrated knowledge, skills and attributes that people need to perform a job effectively.

• By having a defined set of competencies, will be able to demonstrate to workforce the kind of behaviours values enhancing the process to strengthen the culture, support people and people’s engagement.

Strategic Perspective

• Themes- strategic direction, organizational awareness

• Definition – develops and implements sustainable business strategies, thinks long term and externally in order to positively shape the organisation.

• Anticipates and perceives the impact and implications of future decisions and activities on other parts of the organisation.

Integrity and inclusion

• Themes- Diversity, cross cultural awareness, transparency, honesty.

Definition

• Treats all individuals with respect; responds sensitively to differences and encourages others to do the same.

• Upholds organizational and ethical norms.

• Maintains high standards of trustworthiness.

• Role model for diversity and inclusion.

Partnering

• Themes- client focus, business awareness, networking, external collaboration.

Definition

• Demonstrates understanding of the impact of own role on all partners and always put the end beneficiary first.

• Builds and maintains strong external relationships and is a competent partner for others (if relevant to the role).

Results Orientation

Themes-planning, organizing, quality and drive.

Definition

Efficiently establishes an appropriate course of action for self and/ or others to accomplish a goal.

Actions lead to total task accomplishment through concern for quality in all areas.

Sees opportunities and takes the initiative to act on them. Understands that responsible use of resources maximises our impact on our beneficiaries.

Agility

• Themes – Problem analysis, Judgment and decision making, Innovation and creativity

Definition

• Evaluates data and courses of action to reach logical, pragmatic decisions

• Takes an unbiased, rational approach with calculated risks.

• Applies innovation and creativity to problem-solving.

Effective communication

• Themes – verbal and written communication, influencing and sharing, listening and interacting, interpersonal sensitivity in communication.

Definition

• Expresses ideas or facts in a clear, concise and open manner.

• Communication indicates a consideration for the feelings and needs of others.

• Actively listens and proactively shares knowledge.

• Handles conflict effectively, by overcoming differences of opinion and finding common ground.

Leading Self and Others

• Role modelling, directing and motivating others, developing others, teamwork

Definition

• Acts as a positive role model contributing to the team spirit.

• Collaborates and supports the development of others.

• For people managers only: Acts as positive leadership role model, motivates, directs and inspires others to succeed, utilizing appropriate leadership styles.

Stakeholder Matrix

• According to Mendelow’s Power-Interest Grid, all stakeholders are not created equal.

• They differ in terms of their power over and interest in the project.

• Stakeholder Matrix is a key to the success of projects that BABOK recommends stakeholders be managed throughout the project life cycle.

• Knowledge Area: Business Analysis Planning and Monitoring

• Application Task: Conduct Stakeholder Analysis

• Useful when: Identifying stakeholder power, attitudes and interests in the matrix when their interest/ power changes.

• Using the Customer Ordering System example, stakeholders are presented in the matrix as follows:

• Stakeholder Matrix showing the power/ interest of stakeholders.

• In order to apply this technique, follow these steps:

1. List all the stakeholders, no matter how little their power or interest in the project.

2. Categorize them based on their interest in the project and their decision-making power.

3. Place them in the appropriate quadrant.

4. Monitor them continuously and move them round the quadrant as their interest/power evolves.

The general recommendation :

• For stakeholder with low power or low interest, they should be monitored with minimal effort. For stakeholders with low power and high interest, they should be kept informed constantly.

• Stakeholders with high power and low interest should be kept satisfied while working closely with stakeholders who have a high power over the project and a high interest in it.

• While this matrix is extremely useful in determining the frequency of communication with various stakeholders, it may result in a situation where the analyst pays more attention to certain stakeholders to the potential detriment of others.

• Analysts must understand that while the model provides a great starting point for the initial unravelling of stakeholder complexities, interest and power do tend to change with changing circumstances.

The general recommendation :

• For stakeholder with low power or low interest, they should be monitored with minimal effort. For stakeholders with low power and high interest, they should be kept informed constantly.

• Stakeholders with high power and low interest should be kept satisfied while working closely with stakeholders who have a high power over the project and a high interest in it.

• While this matrix is extremely useful in determining the frequency of communication with various stakeholders, it may result in a situation where the analyst pays more attention to certain stakeholders to the potential detriment of others.

• Analysts must understand that while the model provides a great starting point for the initial unravelling of stakeholder complexities, interest and power do tend to change with changing circumstances.

Impact Of Change On Organisational Stakeholders

• Customers are the key stakeholders possessing higher interests on the organisational affairs (Cameron and Green, 2015). Therefore, customers expects the change adopted by the firm to be in line with their needs and preferences.

• Change management in the organisation pose higher impact on employees. Employees expects the organisational change to be in line with their needs and interests (Senior and Swailes, 2010).

• The intention of organisation to adopt change must be clearly communicated with the employees, as this will help to obtain complete employee support and coordination (Cameron and Green, 2015).

• The organisation change have higher impact on the other stakeholders such as investors, creditors and banking institutions (Senior and Swailes, 2010).

• The change management which questions the financial soundness of organisation cause the investors and the banking institutions to feel reluctance in pooling funds towards the organisation (Singh, 2009). Thus, the change management of the firm must be fair and ethical since it is pivotal to cater the needs and the interests of stakeholders.

Change Strategies

• A Force-Coercion Strategy (also known as Power Coercive) uses legitimacy, rewards or punishments as inducements to the change.

• The change agent “commands” change via his/her formal authority by offering rewards or threatening with punishment to enforce the change.

• This strategy is generally characterised by temporary compliance, i.e. until the inducements are no longer visible.

• Change agents use Rational Persuasion Strategy (also known as Empirical Ratio nal Strategy) to bring about change by using special knowledge, empirical supp ort or rational arguments.

• This strategy assumes that people with be persuaded to sup- port the proposed change by rational reasoning, delivered by effectively communicating experts. The strategy is characterised by longer lasting internalisation.

• The Sharedpower Strategy entails actively involving all stakeholders affected by a change in the planning related to this change. Support for change is developed though involvement and empowerment, which in turn builds personal value, group norm and common goal foundations. This strategy results in highly probable long- term changes.

Choosing a Strategy

The strategy chosen to implement a change successfully must be carefully determined.

Nickols describes a number of factors that should be taken into consideration when choosing a change strategy.

Degree of Resistance - Strong resistance could call for a forcecoercive strategy, whilst a shared-power strategy may be appropriate for situations where there is weak resistance.

Target group - A larger group of people could require using a combination of strateg ies, as they seem appropriate for each of the different sections in the group.

Stakes - The importance or degree of benefit of the change to the organisation impli es the strategy.

• Time - The time available for the change to be implemented play s a role in that a short time probably requires a force-coercive strategy while a long time requires or leaves sufficient room for a combination of strategies to be used.

• Expertise - The level of knowledge with regards to the change als o influences the strategy. If a low level of expertise exists, a forcecoercive strategy seems appropriate as opposed to a sharedpower strategy where a high level of expertise exists.

• Dependency - In organisations where the employees are depend ent on the organisation, management’s ability to command is unlimited to some extent. This implies that a force-coercive strategy will be more acceptable in such an organisation as opposed to an organisation where the organisation depends on the employees.

The context for change

(Balogun and Hope Hailey)

• For change to be successful, implementation efforts need to fit the organisational context. There is no simple 'off the shelf' approach that will work for all organisations.

• The change kaleidoscope was developed by Julia Balogun and Veronica Hope Hailey to help managers design such a 'context sensitive' approach to change.

• Change needs to be context-specific.

• The design and management of any change process should be dependent on the specific situation or context of each organisation.

• It is dangerous to apply change formulae that worked in one context directly into another.

• Description should not be turned into prescription. All too often the lessons obtained from a few case studies of organisational change by researchers, consultants or practitioners, are turned into best practice.

The kaleidoscope has three rings:

The outer ring relates to the wider strategic change context.

The middle ring relates to specific contextual factors that need to be considered when formulating a change plan.

The inner circle gives a menu of choices and interventions ('design choices') available to change agents.

Contextual features

Time - is there time for longer term strategic development or does the firm have to react quickly to a crisis?

Scope - how much of the organisation will be affected? Is the change best described as realignment or transformation?

Preservation - which aspects of working, culture, competences and people need to be retained?

• Diversity - the need to recognise that different departments (e.g., marketing and R&D) may have different sub-cultures.

• Capability - whether abilities exist to cope with the change. These can be on an individual, managerial or organisational level.

• Capacity - are resources (e.g. money, managerial time) available to invest in the change process?

• Readiness - are staff aware of the need for change and are they committed to that change?

• Power - how much authority and autonomy do change agents have to make proposed changes?

Each of these factors can be assessed as positive, negative or neutral in the context of change. Positive features facilitate change and negative ones restrict change.

Design choices

Design choices represent the key features of a change management approach:

• Change path - clarifying the types of change in terms of timescales, the extent of change and the desired outcomes.

• Change start point - where the change is initiated (e.g. top-down or bottom up).

• Change style - which management style should be adopted (e.g. collaborative, participative, directive or coercive)?

• Change interventions - which mechanisms should be deployed (e.g. education, communication, cultural interventions)?

• Change roles - assigning roles and responsibilities (e.g. leadership, use of consultants, role of change action teams).

Strategies to monitor and evaluate outcomes

Identify KPIs relevant to your culture change goals

• A KPI (key performance indicator) provides a quantifiable measure of your culture change over a period of time.

• It indicates the milestones along the way to let you know you’re on track and acts as a benchmark to provide insights to make better decisions in the future.

• It’s also important to connect the culture change results to business goals like revenue and profitability.

• Culture change goal: Develop greater enthusiasm for innovation in the company by the end of the year.

Use the Organizational Culture Assessment Instrument (OCAI)

The Organizational Culture Assessment Instrument helps you identify what your company culture is like and how it differs from your desired organizational culture. You can also use the assessment to measure culture change over time by comparing the before and after results.

Developed by Kim Cameron and Robert Quinn, the tool identifies four types of company culture.

The company culture exists “along with a competing values framework,” which are:

Flexibility & Discretion vs. Stability & Control

Internal Focus & Integration vs. External Focus & Differentiation

• The dynamic, entrepreneurial Create Culture (Adhocracy)

• The people-oriented, friendly Collaborate Culture (Clan)

• The process-oriented, structured Control Culture (Hierarchy)

• The results-oriented, competitive Compete Culture (Market)

An organization will typically have elements of all four types of organizational culture, with one prevalent culture:

Use the Organizational Culture Inventory

• It uses over 35 years of research and measures the attributes of company culture relayed to the behavior and performance of employees.

• After completing a survey, it reveals the collective beliefs in the organization, behavioral norms, and thus the foundations for culture change.

Conduct a sentiment analysis:

• Sentiment analysis is increasingly used in HR to understand what employees are thinking.

• A variety of text-based data like onboarding and off boarding feedback, performance reviews, etc., is analyzed through dedicated software. It can help you see how employees perceive your organization’s culture.

• Sentiment analysis software analyses a variety of qualitative sources: dairy notes, performance feedback check-ins, off-boarding data, compliance policies, policy updates, client feedback, any textual records, employee survey feedback etc.

• Through the use of Natural Language Processing (NLP), the combinations of phrases and words from the above sources are classified into positive, negative, or neutral and scored on a scale from -1.0 to +1.0.

Organize a focus group

• An employee focus group is an effective way to have a moderated discussion to gather specific feedback on your company culture.

• To measure whether there has been any culture change through your focus group, conduct them periodically and note any changes.

• You would be able to notice the changes through the analysis of your focus group’s results (identify key trends; analyze actual quotes from the focus group; develop a formal report).

Measure your eNPS

• Employee net promoter score (eNPS) is frequently used to measure employee engagement in a survey. Employees answer the question “On a scale from 1-10, how likely are you to recommend this organization as a place to work?” or “Based on your experience, how likely are you to recommend our organization to a friend or colleague?”

• Improvements in your eNPS might be a good indicator of the success of your culture change efforts.

Employ a dedicated culture measurement tool

• Dedicate culture measurement tools are also useful when measuring culture change at your organization. Some of them include:

• CultureAmp is a powerful platform that uses continuous listening, feedback, and various development tools to improve employee engagement and performance over time. The various metrics provided by CultureAmp can measure the success of your culture efforts over time.

• Perceptyx uses employee surveys, social listening, and people analytics to gather insights within the organization. It is a useful tool to turn your culture data into insights and measure change over time.

• Cultural change is often shaped by a convergence of external and internal factors (Inglehart & Baker, 2000; Kim, Toh & Baik, 2022).

• Additionally, cultural change can be instigated by primary strategies such as invention and culture loss (Mannion, 2022).

• Inventions, whether ideological or technological, can act as catalysts for significant shifts in culture (Brown, 2021). However, these factors may not consider unexpected shocks, such as the COVID-19 pandemic, which can significantly impact the organization's daily operations and employee engagement.

• The COVID-19 pandemic has presented challenges in social connections, resulting in shifts in typical behavioral patterns, demanding innovative approaches for assessment.

• Concurrently, organizational leaders have observed a proliferation of resources emphasizing institutional governance and management, proposing that the pandemic experience has sparked noteworthy transformations in organizational practices, including adaptations to the COVID-19 situation, which in turn impact cultural change during strategy implementation.

• The successful implementation of strategic initiatives within organizations is heavily influenced by cultural change (Bennett, Fadil & Greenwood,1994).

• Scholars have emphasized the critical role of cultural change in strategy implementation, acknowledging the challenges organizations face, such as resistance to change and potential mismatches between existing culture and strategic objectives (Kotter, 1995; Cameron & Quinn, 2011).

• Leadership plays a pivotal role in driving cultural change during strategy implementation. Studies highlight the significance of leaders in creating a compelling vision, communicating effectively, and engaging employees to foster a positive mindset (Schein, 2010).

• Effective leadership plays a crucial role in aligning the organizational culture with the new strategic direction and garnering employee support (Tsai, 2011).

• The challenges posed by unprecedented times like the COVID-19 pandemic put strategy implementation to the test, placing added pressure on management to adapt and lead the organization effectively (Donthu & Gustafsson, 2020).

• During such periods, preserving the organizational culture and ensuring employee well-being become paramount concerns.

• Clear and transparent communication, as well as maintaining integrity, assume even greater significance during these phases of uncertainty (Schnackenberg & Tomlinson, 2014; Men, Qin & Jin, 2022).

• Effective communication is crucial for promoting cultural alignment and engagement during cultural change efforts (Cameron & Quinn, 2011).

• Transparent, two-way communication helps address concerns, manage expectations, and build trust among employees, facilitating a smooth transition to the new organizational culture.

• Organizational learning and knowledge sharing are critical components of successful cultural change. Encouraging a learning culture facilitates the acquisition of new skills, behaviors, and attitudes necessary for successful strategy implementation (Johnson et al., 2019).

• Key factors that contribute to organizational learning include promoting a culture of continuous improvement and establishing feedback mechanisms for ongoing growth and adaptation.

• Organizational learning and knowledge sharing are other key critical components of cultural change.

• Organizations that promote a learning culture facilitate the acquisition of new skills, behaviors, and attitudes necessary for successful strategy implementation (Johns on et al., 2019).

Potential conflicts between existing culture and strategic objectives

• Leadership plays a pivotal role in driving cultural change within organizations.

• A compelling vision, effectively communicated by leaders, serves as a guiding force for employees during cultural transformation.

• Leaders must articulate the strategic objectives clearly and engage employees throughout the process to foster a positive mindset and ensure buy-in (Schein, 2010).

• Effective communication strategies are essential in promoting cultural alignment and engagement.

• Organizations should leverage various communication channels and techniques to reach employees at different levels and locations (Cameron & Quinn, 2011).

• Transparent, two-way communication is vital in managing concerns, addressing questions, and building trust, enabling a smooth transition to the new organizational culture.

• Organizational learning and knowledge sharing are critical components of successful cultural change.

• Encouraging a learning culture facilitates the acquisition of new skills, behaviors, and attitudes necessary for successful strategy implementation (Johnson et al., 2019).

• Key factors that contribute to organizational learning include promoting a culture of continuous improvement and establishing feedback mechanisms for ongoing growth and adaptation.

Measuring and assessing cultural change are essential for tracking progress and evaluating the effectiveness of change efforts.

Organizations can utilize various methodologies and tools to gauge the impact of cultural transformation (Kotter, 1995).

Case studies from successful organizations provide valuable insights and practical guidance for others embarking on cultural change journeys.

The significance of leadership, adopting effective communication strategies, fostering a learning culture, and implementing robust measurement techniques, organizations can navigate cultural change successfully.

Embracing cultural transformation as a continuous process allows organizations to adapt, grow, and thrive in dynamic environments, ultimately fostering a more resilient and adaptable organizational culture.