Culture of Organisation
Discuss the culture of your organisation (or the organisation you are familiar with) by taking into consideration Handy’s classification of cultures and also state how the behaviour of the staff is influenced by the culture of the organisation. The organisation I have worked with is a newspaper company. It is one of the largest newspaper organisations of Asia. It is more than fifty years old. This organisation was started by a family and is now run by the extended family members. The number of family members in the list of the board of directors is large.
This results in a situation where decision making process and the exact line of authority are difficult to understand. There is formal procedure for all the processes of the organisation but these are highly influenced by numbers of factors like interest of particular director and people directly or indirectly related to the process. People working with the organisation from the long time have the idea of the norms and tradition of the organisation culture. However it becomes very difficult for the person joining new.
The subordinates are more concerned of being boss’s favourites rather than doing their jobs effectively. The entire culture was highly politicised and
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It is described as a culture where power radiates from (the person or person at) the centre. Similarly in this newspaper company, decisions are centred on the family members of the owner or the people close to them. Decisions are taken on the basis of influence of the same people. Behaviour of the Staff: In the organisation behaviour of the staff was highly influenced by the culture of the organisation. People with trust of these key people had more chances for getting approvals of new ideas and thoughts. They were more confident and some of them were outspoken. They felt that no one can harm them.
This led to situation where people that the feeling of being more powerful than others. This led to situations of conflicts several times. Not only that the employee turnover was high due to the feeling of negligence, lack of authority and power and internal politics of the organisation. Several good people left the organisation that could have been a great resource for the same. Q 1. b. Discuss how the culture of an organisation can be designed to promote excellence. What are the likely barriers? How can they be overcome? Organisation culture is very important for the promotion of organisation excellence.
It is defined as “a sets of values, norms and beliefs which are shared by the members of an organisation, and clearly an important aspect for the persons working in them. ” An organisation which has a supportive top management, flat organisational structure, transparency of communication and availability of adequate training and development to enhance their skills will successfully promote organisational excellence. The barriers to organisational excellence are as follows: Individual barriers Individuals tend to avoid going beyond their comfort zones.
Any kind of change leads to affect the equilibrium individual has developed. To maintain this equilibrium individual tend to resist change. Selective Perception Employees tend to perceive the impact of changes on them, their department, organisation, colleagues and others. If the perception is negative they tend to resist change. Sometimes lack of information and proper guidance, results in selective perception among employees. Lack of Information Employees when lack information will form different perceptions regarding the change process that can lead to uncertainty and insecurity among them.
This can form one factor for resistance to change. Habit Individuals develop particular habit of working in the organisation. This can have influence on the organisational goal to achieve the excellence in performance. Organisation Resistance These barriers comes from various factors like power conflict within the organisation or department, power distribution, functional and mechanistic orientations, conflicts, organisation culture and many others.. Power Maintenance Culture of the organisation promoting excellence may lead to change the power centres of the organisation.
Therefore some section of the organisation may lead to resist the same. Structure Stability Employees working within a structure develop certain ways of doing work. If the organisational design promoting excellence leads to structural differences, it results in resistance. Employees want to retain the structural stability in the organisation. Functional Sub-Optimisation “Resistance to change due to differences in functional orientation occurs because employees or departments with different functions will see problems and issues differently, thus making it harder to come to an agreement regarding change.
” (Bushman, 2007) Organisational Culture Organisation’s culture is influenced by various factors like leadership, vision, mission and others. Support of leader and top management is important for promoting excellence. Lack of the same becomes barrier to the same. Group Norms Employees working together form groups. These groups have certain norms, likeminded approach, and commitments towards members, cohesiveness and ways of interaction. In such case people tend to resist the change in order to protect their groups and existing relationships. Methods of dealing with barriers to organisational excellence:
Education and Communication The best way to deal with barriers is to communicate clearly. Especially the upfront communication and assurance from top authorities or leaders of the organization improve the organisations culture. Communication flow at various levels of organization should be transparent. People should be communicated about the visions and goals of the organisation. They should be given the resources required to do their jobs effectively. They should have clearly defined responsibilities. Tidd et al (2001) commented that change and innovation could be fostered through learning.
Training and development allows the growth of skill of employees to take more responsibility. It increases the initiatives by employees. This prepares them to accomplish their jobs. Participation and Involvement Employees should be involved in various decision making process. Delegation is an important decision taken by corporate leaders. This is a way to distribute responsibility and authority in a group according to workload, total responsibilities and individual’s ability (Johnson, Gerry and Scholes 2002, Tidd, Bessant and Pavitt 2001).
Involving employees in various decisions making processes and considering their views also helps in dealing with resistance to change at initial stage itself. Facilitation and Support Changing formal structure helps to break the line of authority and create a new one. The informal structure of the organization cannot be ignored. In many of the cases of failure of change, execution was ignorance of informal structure. Mentoring is a process to influence people and show them a way. It provides a direction and help to solve various issues.
Mentoring is being trusted by people, actively supporting and guiding people to achieve personal and professional goals. (Johnson, Gerry and Scholes 2002). Task 2 a. What did the Government embark upon the process of privatisation? To what extent was this successful? How did the aims and objectives of organisations change? By the end of 20th century the world economy have been said to have the moment of free market. There were various macroeconomic policies of various nations which were the key to the success of globalisation in these countries.
The policies were related to investments, deregulation, privatization, export-import and many others. The effective functioning of international organizations like World Bank, Organization for economic cooperation and development (OECD), United Nations Development programs and ASIAN and many others asserted the economic growth in 20th century. The microeconomic aspects contributed to the growth of globalisation. There were various global strategies adopted by multinational organizations. Liberalization in various sectors proved to be successful.
According to Zarrilli (2003) governments from worldwide have understood the importance of energy sector and implications it can have if it is left of market forces. All over the world countries are reforming this sector in order to maintain the balance of this sector. Energy market is regulated and controlled by government worldwide. It is in the recent past that governments have opened their energy markets for competition or liberalization and limited their regulations to facilitating competition to the market place. Energy goods and services are regarded as one of the strategic tools in almost all the countries.
Privatization and liberalization results on conditions in which market forces drive the pricing of such services. In that case it will be difficult for these classes to afford energy services. Kemper (2002) has described various issues related to post and prior to liberalization in particular to the energy markets. However these are applicable to all the markets that are liberalized. The markets which are not liberalized are characterized with Local and regional monopolies, supply obligation of local suppliers, opportunities for service providers to recover their capital and operating cost through subsidy and monopoly.
Single company may be involved in all the functions of production, distribution and selling of services in the market. The Legal and regulatory reforms are supporting monopoly of service providers. The achievements of Markets Post Liberalization are as follows: • Various Legal and regulatory reforms according to the international frameworks and national demands • Restructuring of industry • Change in overall market environment from investment patterns and delivery to end users and Quality of service increases • Changes in marketing forces, public policy and best pricing • Focus on cost reduction and lowering prices of the services
• Better response system for consumer complaints • Change in policy implementation procedures licensing, ownership, clarifications of roles and responsibilities of government agencies, regulatory authorities and others policy making and implementations and others. • Customer focus increases. • Entry of new companies and in flow of investments creates new job opportunities, overall wealth is created • Promotes sharing of resources and regional markets development in order to meet fluctuating demands Q 2 b. Draw a PEST analysis of an organisation that has been privatised. Explain the significance of such and analysis.
Liberalization is based on various basic assumptions. The first assumption is related to competition. Opening up markets and encouraging free trades will increase competition in the market place which will benefit end users by providing them best prices and choices. The second assumption is related to efficiency. Less restrictive policies will attract new investors and marketers. Companies have to be efficient in order to minimize the cost of goods and services they offer for sustaining profitability. Liberalization will open industries for various national and international investors and companies.
Energy services have been one of the most important economic sectors, highly regulated and controlled by governments of most of the countries. From the last two three decades this phenomenon has been changing. Most of the developed nations have opened their energy service markets almost two decades ago. The process started with privatizations of the government holding companies in a measured way. These implemented policy reforms, changed market environment by changing regulatory frameworks, increased transparency, created regulatory bodies, encouraged competition and restricted monopoly.
This resulted in flow of funds in energy sector, better consumer service and availability of different suppliers. PEST analysis for the companies operating in Energy sector is as follows: Political ? Liberalization process requires changes in the regulatory systems and sometimes results in creation of independent regulatory body. ? Political will is important for liberalization. ? Any organization working in a liberalized environment will face competition. Effective leadership will help dealing with competitiveness. Economical
? Entry of multi-national companies and encouraged investments in the economy will benefit everyone. ? The standard of living in the areas of investments or economy will increase. It will create more jobs. Purchasing power will increase. This will encourage other industries to grow. ? People will have better opportunity to improve their standard of livings. Hence the assumption of liberalization is that, it will bring prosperity for everyone from investors to the society. Social ? In the case of developed countries the economies are developed, social structure is strong in terms of less poverty and unemployment rates.
? Liberalisation provides better opportunities to people from the society. ? Increased competition will put pressure on the people working in the organisation to perform to a certain level. ? The better opportunity and pay will help in improving social status of the people working in the organisation. ? Technological ? The technological factors are very important for the energy sector. This is a technologically extensive industry. ? The production process, utilisation of natural resources, transport and till the delivery to the final customers it is a complex and highly technical process.
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