Management Culture in Organizations - Essay Example

?Introduction Organisations encounter increasingly dynamic situations characterised by changes in technology, economies and political systems. The management and employees work in cohesion towards organisational success. Culture dictates how the management and the staff cooperate in attaining set objectives (Ashkanasy, Wilderom and Peterson 2010). It is important to note that these parties can also transform the culture of the organisation. Understanding organisational culture translates to the difference in the success or failure in achieving organisational goals (Alavi, Keyworth and Leidner 2006). Culture can be explained as the values, norms, beliefs and behaviours manifested by the employees and the management (Schein 1993). Subculture on the other hand refers to groups within an organisation with similar ideas and ways of doing things. A strong organisational culture has considerable benefits to the organisation although it can be a liability since it hinders flexibility in adapting to changes. Organisation culture and subcultures play an important role in organisations and they work best when they are maintained and at the same time aligned according to the changes in the dynamic business environment. Subcultures allow the organisations to respond appropriately to the situation at hand without destroying internal consistency (Schein 1993). They provide flexibility that a rigid culture may inhibit. It is interesting to note that organisations with an effective overall culture prevent the emergence of subcultures. Recent studies have shown that subcultures detract from sturdy organisational cultures. This leads to the conclusion that subcultures possess specific aspects that can enhance the entire organisation culture. Subcultures differ in the levels at which they interrupt the arching culture in an organisation. They often result in response to varying demands and act as outlets for the staff to express opposition and presence of conflicts arising during unstable periods. They also offer a system of changing the less fundamental values in an organisation. They are important with respect to affecting key values since they illustrate the difficulties encountered in trying to transform organisational culture. There are different perspectives and theories of culture in various disciplines that have been applied in organisational studies (Bradley and Pridmore 2006). These theories are mainly based on sociology and anthropology and they have contributed to the development of theories in the education field as well. Sociology takes a functionalist perspective that interprets culture as something an organisation owns. On the other hand, anthropology takes an intreprevist perspective and describes culture as a symbol for organisations (views organisations as being cultures). In spite of the varying perspectives of organisational culture, common grounds exist on various areas. The most common organisation culture theory is that by Edgar Schein (1988). Edgar H. Schein’s Model of Organisational Culture This is the most commonly used theory in organisational culture. It takes a functionalist perspective in describing culture. According to this approach, culture is explained as a model of basic assumptions formulated and developed by a group of people as it discovers how to cope with its problems. These problems occur in integration and external adaptation that has proven its effectiveness and is taught to any newcomers in the organisation as the best way to act, perceive and feel in relation to their work and other happenings (Jones, Cline and Ryan 2007). According to this perspective, cultural examination is important when handling aspects in organisation that are found to be delicate, embarrassing, intractable or frustrating. The truth is that if the leaders are not well versed with the cultures in which they operate, then culture steps in to manage them as explained by Miller (2008). This theory also states that members in an organisation may fit in subcultures. In Schein’s model (1988), organisational culture exists in three different levels as explained below i) Artefacts These are basically referred to as the visible aspects in a given culture. These cannot be quantified and they are the attributes in an organisation that can be noticed by an individual who is introduced in the new environment (Schein 1993). These may include structures in the organisation, processes, office climate, staff dress code, furniture, art work in the office and the general appearance of the office or the workplace. An outsider can easily recognise the artefacts but they may not fully comprehend what their meaning is. For a better understanding of the artefacts, the outsiders must study the espoused values of the organisational culture. ii) Espoused values These include the values that are espoused by the prominent aspects of culture in the organisation (Schein 1993). These may refer to the strategies, goals and objectives that are sought by the management and the philosophies that they bring forward. Nevertheless, these values should be facilitated by shared assumptions. These assumptions concern the way the organisation should be managed together how employees need to fit in. If the espoused values contradict with the general assumptions in organisational culture, crises might occur in future. iii) Assumptions These show the common values within as specific organisational culture. These values are not properly defined and are in most cases not visible to those who uphold the culture in question. These are probably related to the espoused values but may not be embedded in the real values of the culture (Schein 1993). This may result to problems between actual values and espoused values causing frustration and an overall decrease in staff morale. The principle assumptions relate to human nature and human relationships in the company. The model can be applied by the management in comprehension of the cultural elements in an organisation (Schein 2010). It also enables the management to examine the relationship between common business processes and entrenched assumptions in a given company. The management in different organisations seeks to modify the assumptions in a specific culture in an effort to improve the company’s overall efficiency (Iivari ans Huisman 2007). The latter is hence perceived as a cultural change procedure where the assumptions in an organisation are transformed to be in line with the artefacts and the espoused values. Organisational change is mandatory if any changes are to occur in the company environment. Introduction of new regulations or intensified market competition require that a new organisational culture is introduced or modifications made on the current one. This is done as of new organisation values are introduction to conform to changes. The assumptions should also be changed so that an organisation is able to develop and steer through crisis both at the same time. The values that are brought forth by the leadership need to be accepted by members of staff to enhance growth of a sound organisational culture (Schein 2010). Deal and Kennedy’s Theory This theory is based on analysing of corporate culture as the driving force of success or failure in an organisation. A weak organisational culture will limit the ability to cope with the changing business world. This perspective gives a guideline on corporate culture and the measures to take in creating a strong organisational culture to ensure business success. This was among the first models proposed in the 1982 as stipulated by Bolman and Deal (2008) and Albers (2005). There were many critics arguing that the concept of corporate culture was just a short-term trend but it has persisted over the years and has been widely accepted as a fundamental business model in employee satisfaction and financial control. Deal and Kennedy in their work suggest that the starting point of organisational culture was a link between the following cultural elements: i) History A shared account of the past forms the basis for organisational culture. The past traditions in an organisation keep employees compliant to the core values that an organisation was founded on as asserted by Dainton and Zelley (2010). ii) Values and beliefs The cultural identity is based on shared beliefs on significant issues that determine core principles (Dodt and Northern Illinois 2007). iii) Rituals and ceremonies These bring the staff and the management together and strengthen the bond between them according to Gamage (2006) iv) The cultural network The informal networks in any organisation are sources of important information (Holbeche 2006). This may include spies, guardian of cultural beliefs in a company and gossips. v) Heroic figures Connected to the account are managers and staff whose significance is elevated because they represent cultural values (Holbeche 2006). These figures act as role models and their actions and utterances are important to the rest. vi) Documentation of past events Past events illustrate values and particular organisational culture. They informs the staff of what is expected from them and enhance the understanding of shared values. There are four different types of organisational culture as identified by Deal and Kennedy and two market aspects that affect cultural practices. Each type sets the pace at which organisations learn about efficiency of their strategies and the level of risks associated with their various operations as explained by Handy (2005). The four types of culture are illustrated below: i) Process This particular culture is characterised by low risks and slow feedback (Businessballs.com 2009). Insurance companies, government organisations and banks belong to this category. This is explained by the fact that no single transaction has an impact on the organisation’s success and it takes approximately one year to establish whether the decision was right or wrong. Due to the lack of immediate response, employees find it difficult to measure what they do and pay attention on how they do things. Technical merit is measured and employees focus on capturing methods and the details correctly without valuing the outcome. ii) Bet your company In this culture, decisions are highly risky and employees may wait for a long time before they realise whether their actions have paid off. The best examples of companies in this category include capital intensive industries, architectural firms, gas companies and pharmaceutical firms (Johnson 2009). The need to make the right decision is important since cultural aspects evolve whereas values are required to be long-term. There is an accepted belief in the need to strategise and perform diligently at all levels. iii) Tough-guy macho This type of culture involves taking high risks but feedback on decisions made is immediate (Norton and Hughes 2009). Employees in this organisational culture enjoy working hard and taking high risks to be stars. There is no teamwork under such an organisational culture and is a difficult environment for those who are less aggressive. The staff turnover is quite high and this hampers development of a consistent culture. This is mainly common in advertising, sports and entertainment industries. iv) Work hard This culture is characterised by less risks and feedback is prompt according to Sanchez (2008). Employees in this culture have to sustain their energy and stay on their toes at all times. This is common Sales and those who stand out are high volume salespersons. Teamwork is accepted in this culture as it takes the combined effort of all employees for a firm to excel (MindTools 2010). Competitions among employees are common to encourage high performance. Charles Handy’s theory of organisational culture Organisational culture has remained a widely discussed issue for many years (Symphony Orchestra Institute, 2011). This determines how employees behave in an organisation as stipulated by Handy (2005). The theory is an eye-opener to many organisations as it advises the management to treasure the experiences learnt from the past and use them as a platform of introducing change and improve on processes, structures and relationships. This approach revolves around a number of concepts and Handy’s explains four types of organisational culture as discussed below: i) The person culture In this type of corporate culture, individuals collectively establish direction to be taken by the organisation (Hedegus 2010). This is similar to the consensus concept of organisation. Where a formalised structure exists, it is inclined to service the wishes of the people within it. The organisations with this type of culture are opposed to formal leadership and mainly exist to meet the needs of individuals. This leads to the conclusion that this culture is not appropriate for the corporate world and it is practical in self-help groups and community associations. This is portrayed by a clustered structure since all individuals are involved in decision making and implementation. Person culture (Lindsay Sherwin 2009) ii) Task culture Organisations with this form of culture are involved in general research and development operations that are ever-changing. They should therefore come up with teams to meet their prospective needs. The skills that are needed include information and expertise. There is a close link between functions, departments, communication and integration hence organisations can adapt to change quite quickly. Control in this type of culture is based on expertise and up-to-date information where the culture is at par with expected results as stipulated by Itzen and Newman (2003). A risk exists where there is a limit in resources leading it to become role oriented. Task culture (Lindsay Sherwin 2009) This is illustrated by a lattice since all units work in cohesion for the success of the company. iii) Role culture The strength of a culture can be attributed to specialisation within its components. Interaction occurs between functional specialisation by rules, systems, procedures and job descriptions. Authority is based on job description and not other factors and this explains why it is referred to as the Paper System. Co-ordination is conducted by the senior staff and it is the only form required as the system provides the required integration (Smith and Mounter 2008). Job description is of huge significance than the abilities and skills of the people in this culture. Activities beyond job description are not encouraged. The effectiveness within an organisation is determined by adherence to the rules and regulations not by personalities. This form of corporate culture is suitable in organisations that experience constant change. The culture is effective in an environment that is subject to insecurities in times of change (Handy 2005). It is common in the public sector, local authorities, government departments and public utilities. This form of organisational culture finds it hard to change speedily and it is characterised by size and rationality and it is common in large state ventures. Role culture (Lindsay Sherwin 2009) The figure above represents role culture which is likened to a temple that represents administration. The apex portrays leadership in an organisation and the pillars illustrate the departments that implement decisions made. iv) The power culture This illustrates the concentration of authority in a family owned entity. Responsibilities are given to family members and this leads to a web-like structure. Thomas (2006), states that power is concentrated at the centre of the web and spreads out to other parties. At the centre is a key personality and their influence radiates to other family members who send the information to specific departments, units or functions. Decision making and strategising are done by the family leaving others to implement plans. It is hard to find members outside the family network playing any pivotal role in the organisational management (Johnson 2009). The power culture (Lindsay Sherwin 2009) Virgin and Ryanair case study Comparison Virgin Atlantic and Ryanair are similar in a couple of ways. The most obvious one is that both are airline companies with huge operational base in Europe. The airlines compete with major airlines including British Airways, Lufthansa, KLM and Aer Lingus among others. They have time and again proved to be major competitors to these reputable airlines. Ryanair competes with companies like EasyJet and Flybe while Virgin Atlantic competes with British Airways, United Airlines and American Airlines as stated by Mullins (2007). Both companies apply intense marketing strategies and their top managements appear constantly in the media in many promotional campaigns. The fundamental systems and technology in these two airlines are also quite similar. Schein’s theory This approach is used in examining the areas that are found to be frustrating for a company. This can be used by both airlines in handling the sections of their culture that attract complaints. Their founders were born around the same time and they have distinctive and strong personalities. The values espoused by the top management include a strong character that can be emulated by the employees and their CEOs engage act as the faces of these airlines or essentially their brand names. O’ Leary who is the CEO of Ryanair enjoys huge publicity and has a sense of humour in his communication. Branson on the other hand is the founder of Virgin Atlantic and he loves publicity antics and uses humour in his media communication (Mullins 2007). Deal and Kennedy This theory identifies the driving force in a company for the case study. The driving force lies in their leadership. Their top managers act as role models to the rest of the staff. Charles and Handy’s theory The two organisations can take the form of task culture since all the units work together to achieve a common goal and are able to quickly adapt to changes. Contrast There are some major differences that can be observed between the airlines. The most significant difference is in their target market. Ryanair mainly focuses on the European, Eire and UK destinations leading to the conclusion that it is a short-haul airline. Its business strategy is maintaining low flight costs. The meals offered are limited to sandwiches and it is at an extra cost. Virgin Atlantic on the other hand offers quality service, a wide range of meals and special equipment such as sunglasses and flight socks (Mullins 2007). Schein’s theory In Virgin Atlantic the artefacts include the office environment that is characterised by professionalism. Virgin tries to establish customer loyalty through branding resulting to the gain of repeat business through brand-allied service attributes. It is important to note the key areas of organisational culture in both companies. Virgin Atlantic Cabin crew is quite helpful and welcoming to their customers (Mullins 2007). They play a key role in the branding and their job description is to promote customer loyalty which creates high profits for the company. The company acknowledges the role played by its employees being the carriers of its values. This is clearly shown in statements concerning the nature of work and in the recruitment material. O’ Leary displays intelligence and tends to be quite critical and uses colourful language in his public communication. He cares about how the public perceives him and has experienced difficulties on several occasions with the advertising standard bodies in Europe. Some were believed to be offensive to the French President, the Catholic Church and the British Airways. Branson who is the founder of Virgin Atlantic loves publicity antics and uses humour in his media communication. He portrays a desire to show a connection with the public, customers and employees as he portrays a fun and happy character. These are some of the espoused values illustrated by their leaders and employees follow them as suggested by HRM Guide (2010). Deal and Kennedy’s Theory Ryanair can be described as having the Work Hard Culture as the risks involved are less. It competes with companies like EasyJet and Flybe and ventures in smaller market segments at low cost of operation. Ryanair specializes in the airline business and commands authority on their competitors and governing bodies (Mullins 2007). The company has raised issues with the European Union in regards to policies governing competition and venturing into new markets. It has also raised concerns with the British Airports Authority concerning their charging guidelines. Virgin Atlantic on the other hand can be described as manifesting a Tough Guy Culture since the risks involved are higher and employees are required to work quite hard. Virgin Atlantic business strategy encompasses long-haul flights and offering of high quality service and it has ventured in the transatlantic region which is highly competitive but at the same time quite profitable (Mullins 2007). As the company spreads its wings across the globe, branches are set up as independent companies such as Virgin Blue based in Australia and Virgin Express. Virgin Express is based in Brussels and operates in European destinations in the exterior of the UK and does not directly compete with Ryanair. The airline strategy is based on attracting its customers by offering quality service. The company pays attention to comfort and style and this are offered in all classes in the aircraft. Charles Handy’s theory of organisational culture Virgin can also be described as a Role Culture given the level of specialisation within its units (Mullins 2007). The organisation constantly experiences change and has operations globally. Job description is mandatory and success is determined by adherence to guidelines. The administration coordinates and integrates all operations. Virgin can be described as a jack of all trades since it is a group of businesses each specialising in a different fields including financial services, luxury hotels, airlines, manufacturing contraceptives and trains. All the companies are connected by a single authority and the founder. Virgin Atlantic unites people with different personalities, skills and abilities to achieve set goals and objectives (Mullins 2007). When one joins the company they learn about customer service which is the main area of focus. Every employee plays a role in delivering the company’s brand and they are supposed to assume responsibility for their deeds and being ready assist both their customers and colleagues. The workplace at Virgin Atlantic is unique since it is characterised by unconventional professionalism and friendly work relations as opposed to strictly official and hierarchical relationships. Their recruitment exercise is quite professional and it includes a range of interviews which act as a selection process before any job offers are made. After this an intensive training is conducted where additional skills are imparted including the desirable organisational culture. There are many benefits after this training including discounted goods and services across the Virgin chains, private pensions, medical schemes and free flights (Mullins 2007). The airline has a high number of employees so as to allow them to take time off especially the cabin crew and the pilots. The customers at Virgin Atlantic make many demands and they spend longer times with the crew. This requires the company to keep changing its crew in order to offer quality and efficient services. Ryanair on the other hand can be described to have a Task Culture since expertise and skills are highly needed and there exists an intense connection among all the airline functions. At Ryanair the recruitment of the cabin crew and other employees does not undergo a strict process like the one in Virgin Atlantic. The cabin crew is referred to as Crewlink and what one needs to do when applying for the job is to answer a couple of online questions. Successful candidates are then enrolled in the Crewlink training centres where they are expected to pay a fee for the training. The candidates do not enjoy any benefits while undergoing this training. Those who successfully complete it receive a 3 years contract to work on the flights on shift basis (Mullins 2007). Their crew is not expected to make stops during the night at the various destinations. The starting salary is not as much but after the contract ends one has a high possibility of securing a permanent job and a pay raise. The Organisations’ setbacks Both companies have experienced problems in various areas and they should review their organisational cultures. Ryanair announced a reduction in the flights from Stansted owing to the high fees charged by the airport, increasing passenger taxes and decreasing demand. Ryanair’s branding is not as effective when compared to Virgin Atlantic (Mullins 2007). Their no-frills strategy is undesirable to business and leisure customers. The company does not guarantee a chance to work with them when their contracts come to an end leaving them without livelihoods. The operations involve rigid turnaround times and it has managed to take only 20 minutes which a high achievement considering its many flights per day. However, this results in higher levels of pressure and pace of work as compared to Virgin Atlantic. Ryanair is questioned by trade unions over its employment practices. The International Transport Workers has launched a campaign to put pressure on the management to recognise the function of trade unions in the workforce. The company gathers complaints from dissatisfied crew and former employees. They usually state poor operational culture and a great deal of stress at work. Branson at Virgin has had a fair share of issues with British Airways citing his dirty tricks affair but none with the authorities (Mullins 2007). Conclusion From the case study, it is clear that both organisations have been successful in their activities despite their shortcomings. Virgin Atlantic has continued to enjoy immense profits resulting to increased commercial strength and growth. Ryanair on the other hand has made considerable profits over the years in an industry that is characterised by poor profit records and which is negatively influenced by global events e.g. global recession. The difference in organisational cultures is as diverse as their markets and operations. Though the current organisational cultures have proven to be profitable and beneficial to the companies, they should analyse them and identify the areas they should improve on. Organisations should choose the best theory in analysing their culture and adapt the one that suits them best. References Alavi, M, Kayworth, TR & Leidner, DE 2006, An empirical examination of the influence of organisational culture on knowledge management practices, Journal of Management Information Systems. Albers, S 2005, The design of alliance governance systems, Kolner Wissenschaftsverlag Ashkanasy, NM, Wilderom, CP & Peterson, MF 2010, The handbook of organisational culture and climate, 2nd edn, SAGE. 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