In Colloboration with

6518YPCBSC
STRATEGIC HRM
Workshop 5:
Organisational Culture – The Importance of Culture and
Behaviours in Developing Strategic Responses
Learning outcomes

By the end of this session, you should be able to:

❑ Explore the concept of organisational culture;

❑ Explore the importance of organisational culture;
❑ Identify and explain approaches to cultural mapping;
❑ Analyse different cultural contexts;
This implies that the culture of your company always determines
success regardless of how effective your strategy may be. To be
clear he didn't mean that strategy was unimportant – rather that a
powerful and empowering culture was a surer route to
organisational success (Drucker 2006).
.
 The Culture :
▪ The collective programming of the mind that distinguishes the members of one group or category of
people from another (Hofstede, 1980).
▪ A set of basic assumptions / shared solutions to universal problems of external adaptation (how to
The survive) and internal integration (how to stay together) – which have evolved over time and are handed
down from one generation to the next. It is manifested in beliefs, values, behaviour and artefacts (Schein,
Culture? 2010).
▪ Shared ethos (the distinguishing character, sentiment, moral nature, or guiding beliefs of a person,
group, or institution) has a strong impact on employees in the organisation and determines how they act
and perform in their jobs (Treven, Mulej and Lynn, 2008).
The ▪ Culture is to an organisation as personality is to an individual (Schein, 2010).

Complexities ▪ Deeply embedded and not easy to change (Schein, 1999).

▪ Can also evolve naturally, subject to the evolving circumstances of an organisation - societal change
. is constant so this inevitably has an impact on organisational culture and change (Schein, 2010).
▪ Hofstede (1997) claimed that organisational cultures evolve over time to adapt, mimic and maintain
organisational legitimacy. These changes happen through workforce composition, alignment with broader
social concerns or diversion in business focus.
▪ Members of one group or category of people from another (Hofstede, 1980)
▪ A set of basic assumptions – shared solutions to universal problems of external adaptation (how to
survive) and internal integration (how to stay together) – which have evolved over time and are handed
down from one generation to the next. It is manifested in beliefs, values, behaviour and artefacts
(Schein,2010).
 ▪ Calls attention to the problematic nature of culture and behaviour –
The although we can see behaviour, we cannot always see the underlying forces
that cause certain behaviours (Whelan, 2016).
Complexity
▪ Berger and Luckman (1967) said that organisational culture has different
continues segments that creates various groupings of individuals with related
tasks and roles. This means that employees have a uniformed identity.
▪ On the other hand, Van Maanen and Barley (1985) argued that
organisational sub-cultures (also referred to as counter-cultures)
undermine collective culture. Sub-cultures are influenced by social
pressures originating from external professional cultures.
▪ Kondra and Hurst (2009) argued that culture is experienced by
individuals as a confluence of complex, interacting factors. These may
be unwritten or written (physical artefacts) expectations, in taken-for granted
or explicit form.
The ▪ Tends to be characteristic of a group rather than an
Characteristics individual
of Culture ▪ It is learned – being passed on from one generation
to the next through a process of socialisation
▪ It develops over time and is the result of
successful adaptation by the group to their
particular environment
▪ It has different layers or expressions which include
artefacts, behaviours, values and beliefs
 ▪ Berger and Luckman (1967) said that organisational culture has different
segments that creates various groupings of individuals with related tasks
and roles. This means that employees have a uniformed identity.
▪ On the other hand, Van Maanen and Barley (1985) argued that
Literature on organisational sub-cultures (also referred to as counter-cultures)
organisational undermine collective culture. Sub-cultures are influenced by social
pressures originating from external professional cultures.
culture
▪ Hofstede (1997) claimed that organisational cultures evolve over time to
adapt, mimic and maintain organisational legitimacy. These changes
happen through workforce composition, alignment with broader
social concerns or diversion in business focus.
▪ Kondra and Hurst (2009) argued that culture is experienced by individuals
as a confluence of complex, interacting factors. These may be unwritten
or written (physical artefacts) expectations, in taken-for granted or
explicit form.
Lets take a
closer look at [Cameron &
[Johnson & Quinn,1999]
these aspects of Scholes,1992]
organisational
culture.
 Factors that shape the culture of an organisation.
1. Components
[Johnson & Scholes (1992), Johnson, Whittington & Scholes, (2009)]
Factors that shape the culture of an organisation.
2. Influences The six major influences on the culture of an organisation are
as follows:
1. Size - How large is the organisation - in terms of turnover, physical size,
employee numbers?
2. Technology - How technologically advanced is the organisation - either
in terms of its product, or its productive processes?
3. Diversity - How diverse is the company - either in terms of product
range, geographical spread or cultural make-up of its stakeholders?
4. Age - How old is the business or the managers of the business - do its
strategic level decision makers have experience to draw upon?
5. History - What worked in the past? Do decision makers have past
successes to draw upon; are they willing to learn from their mistakes?
6. Ownership - Is the organisation owned by a sole trader? Are there a
small number of institutional shareholders or are there large numbers of
small shareholders?
Factors which
shape
organisational
culture.

2. Influences
(cont…)
Factors that shape the culture of an organisation.

3. Writers
▪ Organisational culture is defined as a
collective belief, assumptions and values
that govern how people behave (Schein,
2004).
▪ These shared ethos (the distinguishing
character, sentiment, moral nature, or
guiding beliefs of a person, group, or
institution) have a strong impact on
employees in the organisation and
determines how they act and perform their
jobs (Treven, Mulej and Lynn, 2008).
Factors that shape the culture of an organisation : Writers
Schein 1985 – Organisational culture

Artefacts
▪ Artefacts are the visible signs of an organisation's culture.
▪ They are visible; they can be seen, heard and felt.
▪ For example, what the dress code is; what kind of offices and layout is used; how
employees address each other and how they communicate internally and externally.

Espoused Values
▪ These are the public statements about what the organisational values are about.
▪ Many organisations now communicate what their "core values" are - the espoused values
by which the organisation conducts its business.

Basic underlying assumptions

▪ These are the foundations on which culture is based. Handy described this as "the ways
things get done around here".
▪ The underlying assumptions are often difficult to describe, are intangible and are often
only really understood by people who've become accustomed to the way the organisation
works.
▪ Imagine you are new to an organisation and you find it is taking time to "fit in“ – it’s
because you haven't yet got to grips with these underlying assumptions that those in the
organisation who've been there a while seem to take for granted.
▪ Underlying assumptions are usually invisible -You won't find them written down
anywhere. People may not want to talk about them. But they exist and are often powerful.
Factors that shape the culture of an organisation : Writers
Charles Handy (1978) links organisational ▪ Person Culture
structure to organisational culture. ▪ Here, all individuals believe themselves superior to the organisation.
Handy describes: ▪ As the concept of an organisation suggests that a group of like-minded
individuals pursues common organisational goals, survival can become
difficult for this type of organisation.
▪ However, looser networks or contractual relationships may thrive with
this culture.

▪ Task Culture
▪ Teams are formed to solve particular problems with power deriving from
expertise.
▪ Role Culture
▪ Authority is clearly delegated within a highly defined structure.
▪ Such organisations typically form hierarchical bureaucracies where
power derives from a person's position and little opportunity exists for
expert power.
▪ Power Culture
Source: The Gods of management: The changing work of
▪ Power is concentrated among a few with control and communications
organisations, Charles Handy 1978. emanating from the centre.
▪ Power cultures have few rules and little bureaucracy; decision making
can be swift.
The Importance of organisational culture

▪ Organisational culture is important because it

provides a sense of identity that shapes how
an organisation operates.
▪ It influences organisational results and
performance.
▪ A good organisational culture improves
financial position of the organisation.
▪ It improves productivity, team morale through
team-working.

Source: Chow (2002)

Clan Culture Adhocracy culture
▪ A very friendly working environment where people have Types of organisational ▪ A dynamic, entrepreneurial and creative working
a lot in common and which strongly resembles a large
family.
culture environment. People stick their neck out and take
Cameron and Quinn (1999) risks.
▪ The leaders, or the heads of the organisations, are
▪ The leaders are viewed as innovators and risk
viewed as mentors and maybe even as father figures.
takers. The binding agent that keeps the organisation
▪ The organisation is held together by loyalty and tradition. together is a commitment to experimentation and
There is a high level of engagement. innovations. The emphasis is on trendsetting.
▪ Within the organisation the emphasis is on the long-term Flexibility and Discretion ▪ For the long term the organisation's emphasis is on
benefits of human resource development, and great growth and tapping new sources.
value is attached to personal relationships and morale.
▪ Success means having new products or services
▪ Success is defined in the context of openness to the Clan Adhocracy available; being a pioneer in this is considered

External focus and differentiation

needs of the customer and care for the people. Extended family Dynamic important. The organisation encourages individual

Internal focus and integrations

▪ The organisation attaches great value to teamwork, Mentoring Entrepreneurial initiative and freedom.
participation and consensus.
Nurturing Risk-taking Market culture
Participation Values innovation ▪ A result-oriented organisation in which the greatest care
Hierarchy culture focuses on completing the work. The people are
▪ A highly formalised, structured working environment. competitive and goal-focused.
Procedures determine what the people do.
Hierarchy ▪ The leaders are drivers, producers and competitors
▪ The leaders are proud of the fact that they are good, Market at the same time. They are tough and demanding.
efficiency-oriented coordinators and organisers. Structure The binding agent that keeps the organisation
Results oriented
▪ Maintaining a smoothly running organisation is the most Control together is the emphasis on winning. Reputation and
crucial thing. Formal rules and policy documents hold Gets the job done success are important areas of focus.
Coordination
the organisation together. Values competition ▪ For the long term people focus on competitive
Efficiency
▪ Concern for the long term focuses on stability and Achievement activities and achieving measurable targets and
results, accompanied by an efficient and smooth Stability goals.
execution of tasks. ▪ Success is defined in the context of market share
▪ Success is defined in the context of reliable delivery, Stability and control and market penetration. Competitive pricing and
smooth planning and low costs. market leadership are important.
▪ Personnel management must ensure certainty about the ▪ The organisational style is one of unflinching
job and predictability. competition.
Hofstede’s cultural dimension
Professor Geert Hofstede conducted one of the most comprehensive studies of how values in the
workplace are influenced by culture.
▪ He defines culture as “the collective programming of the mind distinguishing the members of
one group or category of people from others”.
▪ Hofstede developed a framework to understand the differences in culture across countries
and to distinguish the ways that business is done across different cultures. In other words, the
framework is used to distinguish between different national cultures, the dimensions of culture,
and assess their impact on a business setting.
▪ The model of national culture consists of six dimensions,
▪ The cultural dimensions represent independent preferences for one state of affairs over another
that distinguish countries (rather than individuals) from each other. The country scores on the
dimensions are relative, as we are all human, and simultaneously we are all unique. In other
words, culture can be only used meaningfully by comparison.
Hofstede’s cultural dimension (cont….)
▪ The model consists of the following dimensions:

Individualistic/Collectivistic How personal needs and goals are prioritized vs the needs and goals
of the group or organisation.

Masculine/ Feminine Masculine societies have different rules for men and women, less so in
feminine cultures.
Uncertainty avoidance How comfortable are people with changing the way they work or live
(low UA) or prefer the known systems (high UA).

Power distance The degree people are comfortable with influencing upwards. Accept
of inequality in distribution on power in society.

Time perspective Long-term perspective, planning for future, perseverance values vs.
short time past and present oriented.

Indulgence / Restraint Allowing gratification of basic drives related to enjoying life and having
fun vs regulating it through strict social norms.

Source: Hofstede (1973: 2010)

Hofstede’s cultural dimension (cont….)
A brief overview of the six cultural dimensions:
Individualism vs. Collectivism: The focus of this dimension is on the question regarding whether people have a preference for
being left alone to look after themselves or want to remain in a closely knitted network.

Masculinity vs. Femininity: Masculinity implies a society’s preference for assertiveness, heroism, achievement and material
reward for attaining success. On the contrary, femininity represents a preference for modesty, cooperation, quality of life and caring
for the weak.

Uncertainty Avoidance: It is a dimension that describes the extent to which people in society are not at ease with ambiguity and
uncertainty.

Power Distance: This dimension explains the extent to which members who are less powerful in a society accept and also expect
that the distribution of power takes place unequally.

Long-Term vs. Short-Term Orientation: Long-term orientation describes the inclination of a society toward searching for virtue.
Short-term orientation pertains to those societies that are strongly inclined toward the establishment of the absolute truth.

Indulgence vs. Restraint: This revolves around the degree to which societies can exercise control over their impulses and
desires.
Organisational culture and cultural change - CIPD view.
▪ Organisational culture is an important concept to the people profession. The work of HR,
L&D and OD influences and is influenced by organisational culture because, at their heart,
every organisation is made up of human relationships and human interactions.
Culture is therefore central to the role of the profession and must be managed and
developed accordingly.
▪ Organisational culture is the shared characteristics among people within the same
organisation. It includes the values, norms of behaviour, routines, traditions,
perspectives and beliefs of individuals.
▪ Culture matters because it offers a way for employees to understand their organisation, to
voice their views, and to develop connections and common purpose.
▪ It’s also important to continually assess that culture, as the organisation’s purpose and
values will affect the standard of its customer service and influence the engagement and
retention of its people.
CIPD 2019.
 Netflix Culture:
Culture gives Entertainment, like friendship, is a fundamental human need; it changes how we
a sense of feel and gives us common ground.
Netflix is better entertainment at lower cost and greater scale than the world has
identity ever seen.
We want to entertain everyone, and make the world smile
Like all great companies, we strive to hire the best and we value integrity;
Image: Netflix (2019) excellence, respect, inclusivity, and collaboration. What is special about Netflix
though, is how much we:
❑ Encourage independent decision-making amongst employees;
❑ Share information openly, broadly and deliberately;
❑ Extraordinarily candid with each other;
❑ The keeper test – keep only highly effective people
❑ Avoid rules;
❑ Sunshining – admitting to your mistakes in a very public way so others
don’t make it too!
 Collaboration

Open/direct
Examples of communication
Team-working

behaviours that
shape
organisational
culture
Diverse Supportive

Transparency
Summary of organisational culture
Does culture influence strategy?

Gif: Gif
Cultural mapping

❑ There is growing interest in the use of

cultural mapping to effect strategy.

❑ Cultural mapping is a diverse set of

research techniques and tools used to
‘map’ distinct tangible and intangible
strengths and resources.

❑ Organisations use cultural mapping when

concerned about protecting cultural
diversity of capabilities.
Culture mapping stages for action

❑ Stage 1 - Planning - Determining objectives with the community• Obtaining buy-in from colleagues and
community leaders• Setting a budget – revenues can be cash or in-kind• Identifying and assembling mapping
resources.
❑ Stage 2 – Project design- Designing the inventory• Drafting survey questionnaires and interview questions•
Setting interim and final deadlines.
❑ Stage 3 - Implementation- Public announcement• broad-based research – surveys• targeted research –
interviews• assembling the inventory• taking stock.
❑ Stage 4 – Synthesis
❑ Stage 5 – Final the map & go public - Public announcement broad-based research – surveys•
Targeted research – interviews• Assembling the inventory• Taking stock- Previewing the map• Presenting the
results to the target audience.
CIPD - Culture and Behaviour –
Understanding people's behaviour and creating the right
organisation culture.
❑ CIPD have developed a Profession Map - sets the international benchmark for the people profession. Use
it to make better decisions, act with confidence, perform at your peak, drive change in your organisation
and progress in your career. No matter who you are in the profession, whether you’re a CIPD member or
not, the new Profession Map is relevant to you.
❑ Understanding and influencing organisational systems and human behaviour is integral to developing a
positive culture and working environment.
❑ This area of the new Profession Map encompasses behavioural science, which can provide a rich source
of insight for people professionals. It includes knowing:
❑ how different leadership and people practices, along with ethical perspectives, impact on behaviour and culture
❑ how to enable high levels of people engagement and promote learning
❑ how giving people a meaningful voice enables people professionals to influence behaviour, unlock potential and
shape organisational culture.
CIPD profession Map – Culture and Behaviour
Understanding people's behaviour and creating the right organisation
culture
Understanding and influencing organisational systems and human behaviour is integral to
developing a positive culture and healthy working environment.

• All people professionals need a common understanding of the way culture and behaviour impact on people practices, and vice
versa. It’s particularly important that people professionals think in a systemic way: understanding how to align the different
elements of the organisation’s system (for example, the values, the culture, structures, people practices and policies) to
maximise the organisation’s performance.
• This area of the Profession Map encompasses the knowledge needed to understand how organisations and people behave,
and includes elements such as:
▪ How different leadership and people practices, along with ethical perspectives, impact on behaviour and culture.
▪ How giving people a meaningful voice enables people professionals to influence behaviour, unlock potential and shape organisational
culture.
▪ How to enable high levels of people engagement and promote learning, and use the right approaches in different situations for individuals
and teams.
▪ How to develop resilience within the organisation.
Things to consider………

❑ Does behaviour influence culture, or does culture influence behaviour?

❑ How can culture subvert strategy?
❑ What are the external factors that might influence an organisation’s
culture?
❑ What happens when culture and strategy are not aligned? And how can
we realign culture to strategy?
Workshop Activity

• Responding to the Financial Reporting Council’s (FRC) request for evidence of the importance and value of corporate culture to
business, and the role that boards plan in setting, managing and leading culture in organisations. The CIPD explored the evidence
for the importance of culture within organisations and at board level.
• CIPD research, A duty to care? Evidence of the importance of organisational culture to effective governance and leadership, has
gathered insights against a set of core questions proposed by the FRC, and thorough analysis illustrates the evidence in 4 key
themes.
In breakout groups you will be allocated a section of the CIPD report. You are required to summarise the allocated section into a 1
page PowerPoint presentation and feedback your findings .

No: Title Pages

1 HR strategy and operations: building productive and engaging cultures 14
2 Leadership and communication of organisational culture, values and behaviours 21
3 Engagement, employee voice and employee relations 25
4 Contextual factors: economy, diversity and technology 29
 References
▪ Berger, P.L. and Luckman, T. (1967) The social Construction of Reality, New York: Garden City.

▪ Cameron, K. S., & Quinn, R. E. (1999). Diagnosing and changing organizational culture. Reading: Addison-Wesley.

▪ Cho, I., Kim, J.K., Park, H. and Cho, N-H. (2013) The relationship between organisational culture and service quality through organisational learning framework. Total Quality Management and Business
Excellence, 24(7/8), pp.753-768.

▪ Handy, C. B. (2007). Understanding organizations. Penguin Uk.

▪ Handy, C. B. (1996). Gods of management: The changing work of organizations. Oxford University Press, USA.

▪ Harrison, R. 1972. “Understanding your organisations culture”. Harvard Business Review, 50(May/June): 119 – 128.

▪ Hofstede, G. (1980). Culture's Consequences: International Differences in Work-Related Values. Beverly Hills, CA: Sage

▪ Hofstede, G. (1997) Cultures and organization software of the mind: Intercultural cooperation and its importance for survival. New York: McGraw‐Hill.

▪ Hofstede, G. and Fink, G., 2007. Culture: organisations, personalities and nations. Gerhard Fink interviews Geert Hofstede. European Journal of International Management, 1(1-2), pp.14-22.

▪ Kondra, A.Z. and Hurst, D.C. (2009) Institutional processes of organizational culture. Culture and Organization, 15(1), pp.39-58.

▪ Netflix (2019) Netflix culture. [online] https://jobs.netflix.com/culture (Accessed June, 2021).

▪ Schein, E.H. (1999), "Empowerment, coercive persuasion and organizational learning: do they connect?", The Learning Organization, Vol. 6 No. 4, pp. 163-172

▪ Schein, E.H. (2010) Organizational culture and leadership. San Francisco: Jossey-Bass.

▪ Treven, S., Mulej, M. and Lynn, M. (2008) The impact of culture on organisational behaviour. Management, 13(2) pp.27-39.

▪ Van Maanen, J. and Barley, S.R. (1985). Cultural organization: Fragments of a theory. In Organization culture, Edited by: Frost, P.J., Moore, L.F., Louis, M., Lundberg, C. and Martin, J. 31-53. London: Sage

▪ Whelan, C. (2016). Organisational culture and cultural change: A network perspective, Australian and New Zealand Journal of Criminology, 49 (4) pp. 583-599, DOI: 10.1177/0004865815604196 [accessed
1st June, 2021].