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Chris Jarvis1 HRM: Organisation Culture and Intervention Organisation Culture & Intervention: Process, structure and re-structuring. Chris Jarvis2 HRM: Organisation Culture and Intervention Questions How are characteristics of organisational culture variously described? Merits and limitations of descriptions? Themes and tensions in debates about organisation culture. Hard structure & technical systems vs. soft humanistic concerns Chris Jarvis3 HRM: Organisation Culture and Intervention Questions What is “organisational development“ (OD?) What models can be defined and how do these shape understanding of organisational change? What issues face a “change agent“ - someone acting as an OD consultant/player? What “pearls of wisdom“ would you offer someone initiating an OD programme - taking their first steps? Chris Jarvis4 HRM: Organisation Culture and Intervention Soft systemsSoft systems ValuesValues InteractionsInteractions CommitmentsCommitments MotivationsMotivations LoyaltiesLoyalties PerceptionsPerceptions Leadership & teamsLeadership & teams CommunicationCommunication Hard systemsHard systems PoliciesPolicies ProceduresProcedures SystemsSystems PerformancesPerformances TechnologiesTechnologies EfficienciesEfficiencies Change, improve, perform better, re-orientate, lead, trim your sails, be different, differentiate products/services and costs Chris Jarvis5 HRM: Organisation Culture and Intervention Interventions to change soft culture R.H. Kilmann 1985, in Harvey and Brown, 1992 The organisation itself has an invisible quality - a certain style, a character, a way of doing things - that may be more powerful than the dictates of any one person or any formal system. To understand the soul of the organisation requires that we travel below the charts, rule books, machines, and buildings into the underground world of the corporate culture Chris Jarvis6 HRM: Organisation Culture and Intervention What is a corporate culture? a system of shared values and beliefs which interact with an organisations people, structure and systems to produce behavioural norms - “the way we do things around here”. e.g Sackmann, 1989: Walck, 1989 Whose norms? Shared or based on dominant power source and/or ideology? Chris Jarvis7 HRM: Organisation Culture and Intervention Other points on “culture” Profit vs. not-for-profit organisations (NPOs) sub-cultures in the organisation which differ or conflict Is management style & corporate culture a key “success“ factor influencing survival? modes of membership and commitment? communication and leadership behaviour? problem-analysis and decision-making for the entire system? Chris Jarvis8 HRM: Organisation Culture and Intervention The influence of “corporate culture” legitimisation of purpose and control gives members a sense of what to do, how to behave and what priorities to focus on helps members bridge the gap between formal directives and how the work actually gets done enables “supervision and control” thru. mind-set Compare with precision “engineering“ model of organisation structures, work-technology, methods and controls Chris Jarvis9 HRM: Organisation Culture and Intervention Mintzberg: Five Glues Mutual adjustment Direct supervision Standardisation of Systems and procedures Skills Results Acceptance of legitimate authority (power) is assumed. Neo-Weberian bureaucracy. Chris Jarvis10 HRM: Organisation Culture and Intervention Observations No one culture works best for all organisations Management styles and norms, values and beliefs of organisation members combine to form the corporate culture. Deal and Kennedy (1983 ) A shared history between members builds a distinct corporate identity or character. What is the problem with this statement? Chris Jarvis11 HRM: Organisation Culture and Intervention Culture enclave - organisational power plays Organisational development signifies change, and for change to occur in an organisation, power must be exercised. Burke, 1982 Power .the ability to get ones way in a social situation. intentional influence the capacity to effect (or affect) organisational outcomes French and Bell 1995 corporate, managerial hegemony? Fact or fantasy? Chris Jarvis12 HRM: Organisation Culture and Intervention Mintzberg, in French and Bell, 1995 “organisational behaviour is a power game in which various players seek to control the organisations decisions and actions.” Pre-requisite sources or bases of power expenditure of energy political skill Control of 1. a resource 2. technical skill (1-3 must be critical to the organisation) 3. a body of knowledge 4. Legal prerogatives - exclusive rights/privileges to impose choices 5. Access to those who have power based on 1-4. Chris Jarvis13 HRM: Organisation Culture and Intervention Bases of social power French and Bell 1959 Reward Power Coercive Power Legitimate Power Referent Power & Charismatic Power Expert Power http:/sol.brunel.ac.uk/jarvis/bola/power/power.html Morgan 1997 - Images of Orgn Resource-based Bureaucracy-based Decision Control Know-How The Contingent Hero Managing Boundaries Technological Dependence Alliances and Networks “Countervailers” Symbolism Gender Groupthink Chris Jarvis14 HRM: Organisation Culture and Intervention Organisational politics Sub-set of power? Informal power? Illegitimate in nature? Conflicts of interests Conflict or competition for scarce resources Pay-off matrix - how goods & services are to be distributed between different parties Stakeholder (claimants, lobbyists) analysis - grievances, power, ability to resist change, winners-losers, Chris Jarvis15 HRM: Organisation Culture and Intervention OD - dominant paradigm of OD Normative Learning, adaptation, empiricist, rationalist not Power-coercive (de-personalise power & politics) Weak accommodation and avoidance? OD - used as a pawn or “Transcends the negatives of power & politics“ ? French & Bell. “OD programs are unlikely to be successful in organisations with high negative faces of politics & power“. Chris Jarvis16 HRM: Organisation Culture and Intervention How can OD interventionists gain and wield power? Competence Political access & sensitivity Sponsorship Stature & credibility Resource management Group support Beer (1980) OD change agents need to know about bargaining, negotiation, power shifts & politics, strategies of influences & the characteristics of power holders Hard, technical expert Intuitive, soft, influential behavioural expert. Chris Jarvis17 HRM: Organisation Culture and Intervention Evaluating Structures & Processes Techniques of: Hard & soft systems analysis meta-system analysis re-engineer key business processes (e.g. BPR) Planning processes (power plays) Historical evolutionary models (Quinn & strategy) Pro-active structuring (Mintzberg) Hybrid organisations - mechanistic with organismic Virtualisation Changing units of currency (knowledge) Analysis of networking Chris Jarvis18 HRM: Organisation Culture and Intervention Exercise Consider your organisation Draw a mind map of considerations to be made when restructuring a significant part of the organisation? What are the particular factors - from your observation point - that influence your analysis? Chris Jarvis19 HRM: Organisation Culture and Intervention Mintzberg 1970: The structuring of organisations centralise strategic apex middle line Techno structure Support staff operating core ideology evangelise thin, distribute, devolve? collaborate standardiseprofessionalise Chris Jarvis20 HRM: Organisation Culture and Intervention Imperatives, limitations and failures of BPR Business process re-engineering Chris Jarvis21 HRM: Organisation Culture and Intervention BPR Manifesto Definition Re-engineering is the fundamental re-thinking and radical re- design of business processes to achieve dramatic improvements in critical contemporary measures of performance, such as cost, quality, service and speed. BPR Re-engineering the Corporation: A manifesto for business revolution Michael Hammer & James Champey 1993 Chris Jarvis22 HRM: Organisation Culture and Intervention Backgrounds Hammer - former MIT computer science professor turned management consultant Problems facing companies not based on organisational structures but process structures (echoes of value chain) Process structures are legacy structures developed incrementally and hence patched Re-engineering vs. CQI/kaizen, TQM Involves re-design & implementation - start with a clean sheet How? Chris Jarvis23 HRM: Organisation Culture and Intervention The business system Business processes Values and Beliefs Management and measurement systems Jobs and structures Chris Jarvis24 HRM: Organisation Culture and Intervention Field staff can send & receive information wherever they are. Data communication & portable PCs Field staff need offices - points to receive, store, retrieve & transmit information Decision making is part of everyones job Decision support tools ? Managers make all decisions New rule Disruptive technology Old rule The Impact of Technology Chris Jarvis25 HRM: Organisation Culture and Intervention Examining BPR - Commentaries BPR - difficult to mobilise, energise and sustain in very large, technically complex organisations Hugh Wilmott (UMIST) Will the turkeys vote for Christmas? The re-engineering of human resources. Enid Mumford (MBS) BPR versus socio-technical design - employee perceptions/Morgans holographic organisation Wood et al (Salford and MMU) BPR as re-tinkering - need to imagine new processes & strategies Mintzberg excesses of BPR practices (BBC Radio 4) Chris Jarvis26 HRM: Organisation Culture and Intervention Practice examination question 1. Why do organisation development interventions frequently fail to live up to expectations? 2. Evaluate the merits and difficulties associated with cultural intervention strategies. 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