Cultures and Subcultures in Organizations - Essay Example

Running head: CULTURES AND SUBCULTURES IN ORGANIZATIONS Evaluation of the Culture(s) and sub-cultures that exist within Widney Cabs Limited. Student Ref: University: Course: Date: Executive summary This study sought to examine and evaluate the Culture(s) and sub cultures that exist within Widney Cabs Limited. The study relied on the models developed by Schein Denison and their contemporaries to illustrate how these models are represented in the reality of Widney Cabs Ltd. The researcher used two methods of primary data collection namely: Questionnaires and observation. Questionnaires have the advantages of being easy to use and also have a wide acceptance. However in this case only 86 out of200 were returned. Secondary research was carried out by studying literature on Culture and looking at the theories and classifications from this literature. The research revealed the existence of several cultures and subcultures in Widney Cabs Ltd that matched the theoretical models developed by both Schein in the three level of classification i.e. Assumptions, Values and Artefacts and Denison’s classification that outlines four attributes namely: Involvement, Consistency, Adaptability and Mission. It is unfortunate to note that in almost all of these instances the results revealed a poor organizational culture that may affect the effectiveness of the company. Introduction. This study will evaluate and assess the different aspects of organizational culture that exist in Widney Cabs Ltd. The study examines these culture(s) and sub cultures in light of the relationship with models or classification from academic literature, existing knowledge and theories on organizational culture. Jacques (1951) defines organizational culture as the customary or traditional ways of thinking and doing things common to most members of an organization. Literature review. There exists a significant level of formal knowledge on the subject of culture(s) and sub-cultures that exist in organizations and their effects on the organizational behaviour. Founders and leaders of organizations create these cultures, which are then developed and sustained by people. Organization’s executives generate and impart the organizations ideals. They also promote the core values that convey inclination to certain behaviors or effects. Norms on the other hand express acceptable ways of achieving set goals. Studies have shown that the development of organizational culture requires interaction within the membership. (Louis, Posner, and Powell 1983). According to Schein (1985), there are three levels of culture,the basic being Assumptions that form the foundation of culture. Assumptions Espoused values Artefacts (Beliefs, thoughts) (Goals, strategies e.t.c) (Visible manifestations) Fig 1. These assumptions are unconscious beliefs, thoughts, perceptions, and feelings. Next to these are the espoused values that consist of goals, philosophies. Lastly are the artefacts, which are physical manifestations, which may not be obvious to a lay observer of organizational behaviour and process. Schein’s model has had a wide acceptance and has in many ways allowed insight on culture. However the model raises some questions: Who is unconscious about these assumptions? It is presumed that the researcher will be aware but not the organizational members. What happen to the presumption when the organizational members learn about the Assumptions? It is important that leaders learn about the underlying links that hold artefacts; values and assumptions together so that they can better understand the usefulness of this model in creating positive organizational change. Research by John VanMaanan and Steven Barley (1984) shed some light on the nature of interactions. They found out that interaction was “cognitive and behavioural”. New personnel learn from the established workplace community the conventional occupational behaviours and practices that are acceptable across the board. In organizations there may exist a predominant culture and several subcultures that are a result of subgroups that have common distinctiveness and a specific identity. Several authors concur that in an organization , people can easily classify themselves and others into various social categories or groups based on identification with their primary work group, occupational or professional skills, union membership, or age. (Ouchi 1980, and Ashforth and Mael 1989). This is evident in Widney Cabs Ltd where Subgroups have created subcultures that comprise specific networks even though they are still associated to the organization’s main ideals. According to Schein, (1990) Culture is often difficult to change or guide, however, senior executives can manipulate and steer an organizations culture if they are knowledgeable and patient. Background. Widney Cabs Ltd of Northampton manufactures tractor cabs. (See Appendix A) for a brief background to the Company. In February 2004 Widney Cabs Ltd took over Airflow-Streamlines. Widney Cabs Ltd is an old fashioned manufacturing Company which has maintained the Airflow Stream-line traditions as they were 30 years ago. The Company has 390 employees. 90 of these are office and management staff and 300 are shop floor workers). The Company mission statement (See Appendix B) has not changed since 1978 with the same being said for the Employees handbook (See Appendix C for the sample). Recently a new team took over the management of the company with a view of streamlining the operations and move the Company forward. One key goal of the new management is to diversify the search for new business so as to stop over reliance on a single major customer (Caterpillar). It has emerged that Caterpillar will be withdrawing all the business given to Widney Cabs Ltd. Consequently Widney Cabs will be reduced to a 35million pound Company from a 55 million pound turnover currently. As a result the management have announced a 10% salary reduction plus a compulsory redundancy situation. This is a complex situation and many factors will affect the outcome of the new management’s decisions. This paper seeks to examine the cultures and sub cultures that are found within Widney Cabs Ltd. Methodology. The researcher employed two methods of data collection namely; questionnaires and observation. Data collection occurred between October and November 2006. Questionnaires were distributed to the other employees through the personnel department. The questionnaires that had not been returned to the personnel department at the end of the exercise were deemed non-respondents. 86 questionnaires were sent back. The office staff completed 60 of the questionnaires while 26 came from the shop floor workers. Questionnaires were drawn by the researcher and employed the Likert scale1 questions in each of the dimensions ranging from 1=strongly agree to 10=strongly disagree. To ensure reliability of the questions, they were put to test before they were finally distributed. This qualitative technique in the research was used, as it is easy to administer and interpret as well as being widely acceptable. The use of this method to portray the company’s culture has several limitations. The fact that only 8.6% of the shop floor workers gave a response meant that the results gathered would barely give a balanced conclusion across the Company. The low return of questionnaires could be attributed to the current low morale and job insecurity following redundancy announcements. Employees reservation was due to the feeling that the information given could be used against them when answering some of the more controversial questions. This was especially evident with shop floor workers. The other method used was observation. This technique offered means of operationalising the concepts as employee’s behaviour was observed as they interacted. However it was more complex, time-consuming and it heightened suspicion due to issues regarding confidentiality and privacy. Another major limitation was that employees generally behaved differently when being observed. Due to time constraints the primary research was limited to these two forms or information gathering. Interviews would have yielded more sensitive data and focus groups would also have been beneficial if more time was available as topics would have been discussed openly and mixed views expressed. Secondary research was carried out by studying available literature on Culture and looking at the models and classifications. This study draws mainly on two organizational culture models by Schein and Denison. These two have made a great contribution by developing an explicit model of organizational culture and a suitable method to gauge organizational culture and subcultures. Findings. Cultures in Widney Cabs Ltd. In this study an attempt is made to demonstrate how the concepts described in the models developed by Schein are represented in Widney Cabs Ltd, 1. Artefacts. This dimension is observed in the dress code difference between the shop floor workers and their office counterparts. Again the age factor can be observed from the onset since there are very few young employees at Widney Cabs. The level of interaction between the shop floor workers and the office staff also illustrates this dimension. 2. Values. Employees felt that the values of the company were not similar to their personal values. Values are important as they determine behaviour. The influence of the differing values at Widney Cabs is manifested by the reluctance of the employees to support leaders. The conflict also brings the feeling that there are so many imposed rules, policies and other constraints that employees have to conform to as opposed to doing their work. 3. Assumptions. These are basically underlying and are invisible and not perceived or recognized in the daily interactions among members in the organization. Additionally, these are aspects of culture that are often forbidden to talk about in the organization. Denison and his contemporaries outlined four basic characteristics that are mentioned below. 4. Involvement. This is where an organization gives priority to investing in the development of its employees. The organization is focused on the workforce and empowers the people in different ways. This way employees at all levels are committed and proud of their work and have a sense of belonging. In this study the questions on this dimension were framed as follows: - (a) I feel that the Management strives to encourage employees and as a result people work to the best of their abilities. (b) As an employee at Widney Cabs I feel I have the opportunity to advance. From the results most employees felt they were not rewarded for good work and most of them were on the look out for alternative employment. 5. Consistency. This refers to cultures that are consistent, well-harmonized and Properly incorporated into the system (Davenport, 1993). Employees conduct themselves in accordance to some set values that promotes stability and a high degree of obedience despite varied opinions. In Widney Cabs one of the clearest illustration of this dimension was the significant difficulty with coordination and assimilation that arose from the differing attitudes across functions and the communication barrier among departments. This caused employees to be casual with superintendents and quite formal with managers reflecting uneasiness and lack of openness. 6. Adaptability. This has to do with how an organization handles internal and external changes. The market environment is always changing and therefore all organizations need to continually change in order to fit in their environment. This study delves into how Widney Cabs Ltd has dealt with change in the industry. According to (Stalk, 1988) change brings about improvement and can be used to provide value. The fact that Widney Cabs has depended on just one major customer (caterpillar) for such a long time without aggression to seek for new business is an illustration of lack of adaptability. 7. Mission. The influence of company mission and values is significant in shaping an employee’s contribution to the attainment of company’s success. The mission of an organization that identifies goals and objectives is to convey a vision of the direction the organization is taking. (Mintzberg, 1987). A good example of this model is the receptiveness that employees show to the changes in management. Most of the employees were neither aware of the rationale of these changes nor where they fitted in the organization’s strategy, goals, or vision. Subcultures in Widney Cabs Ltd. To ascertain the legitimacy of cultural characteristics in Widney Cabs Ltd, the researcher did a factor analysis on the several cultural products arising from different theories and literature. The results are presented in the appendix. Close examination of the data revealed the existence of two distinct sub-cultures in Widney Cabs. 1. Age. It was observed that there were very few young employees. The few who were there did not look like they really fit in the group. Most of the employees were old folk and had been working at the plant for many years. This can be interpreted as a resistance to change and lack of dynamism. 2. Dress code. The shop floor production group were noted to dress casually and conservatively while the office workers were almost always dressed in formal clothes. 3. Time keeping. It was noted that most employees were casual when it came to keeping time. It was not unusual for instance, for the workers to come in a few minutes late or to extend break time for a few minutes. 4. Office behaviour. There was a marked difference between how office workers interacted with fellow office workers and how they behaved towards shop floor workers and vice-versa. Both were more casual to their fellows while they were less social to the other group. 5. Other observations. Shop floor workforce consisted of people whose major concern was job security and a salary that could sustain them. These people were not eager to change. Each of these subgroups was influenced by the nature of its work description. This course of events distinguished one group from the other. There was a "we" and "them" kind of feeling. The researcher observed that they worked in different workspaces. They talked about different things. Both groups were not very motivated. However both groups were very warm towards visitors. Conclusion. Studies into the subject of organizational culture have yielded great insights on how leaders can effect positive changes on their organizations. This study aimed at examining and evaluating the Culture(s) and sub cultures that exist within Widney Cabs Limited. In several instances Widney Cabs has provided examples that matched a theoretical model. It is unfortunate to note that in almost all of these instances the Company has scored poorly. This is a clear indication that several aspects of the organizational culture require urgent review. Appendix A Appendix B Appendix C Organisation Culture Questionnaire The following questionnaire has been developed to assess the “culture” or “climate” in your working environment. It aims to help assess your working atmosphere and conditions. The questionnaire is a series of statements relating to different aspects of organisations to which you must indicate the extent to which you agree or disagree by circling the appropriate number. There are no right or wrong answers and no individual results will be reported. Please do not spend too long thinking about your responses, as your first guess is probably the best one. Once you have completed the questionnaire please return it to the Personnel Department in the envelope provided as soon as possible. Job Title: ______________________________________________________ Age: __________________________________________________________ Gender: _______________________________________________________ Section 1: Age a) Do you feel Widney Cabs attracts a young work force? Strongly agree 1 2 3 4 5 6 7 8 9 10 Strongly disagree b) Widney Cabs tend to treat younger staff less favourably than older ones when recruiting. Strongly agree 1 2 3 4 5 6 7 8 9 10 Strongly disagree Section 2: Conformity a) There are too many externally imposed constraints in the Company such as rules, procedures, policies, and practices. Strongly agree 1 2 3 4 5 6 7 8 9 10 Strongly disagree b) There is a feeling that employees have to conform to these constraints, as opposed to being able to do their work as they see fit. Strongly agree 1 2 3 4 5 6 7 8 9 10 Strongly disagree Section 3: Rewards a) Management strive to encourage their staff, so staff feel rewarded and work to the best of their abilities. Strongly agree 1 2 3 4 5 6 7 8 9 10 Strongly disagree b) Employees at Widney Cabs do not feel recognised or rewarded for good work Strongly agree 1 2 3 4 5 6 7 8 9 10 Strongly disagree Section 4: Warmth and support a) The feeling that friendliness is a valued norm in the Company, Strongly agree 1 2 3 4 5 6 7 8 9 10 Strongly disagree b) Management at Widney Cabs make employees feel comfortable and supported. Strongly agree 1 2 3 4 5 6 7 8 9 10 Strongly disagree Section 5. Relationships a) The office and shop floor workers are treated equally. Strongly agree 1 2 3 4 5 6 7 8 9 10 Strongly disagree b) There is a good working relationship between office based employees and shop floor employees. Strongly agree 1 2 3 4 5 6 7 8 9 10 Strongly disagree Section 6. Commitment to the stay with the Company. a) I am always on the look out for a better job. Strongly agree 1 2 3 4 5 6 7 8 9 10 Strongly disagree b) I am planning to leave this Company for another job in the near future. Strongly agree 1 2 3 4 5 6 7 8 9 10 Strongly disagree Section 7. Work Priorities a) Higher pay is a priority for me. Strongly agree 1 2 3 4 5 6 7 8 9 10 Strongly disagree b) Job security is a priority for me. Strongly agree 1 2 3 4 5 6 7 8 9 10 Strongly disagree 8. Commitment to the Company a) My values and this organisations values are very similar. Strongly agree 1 2 3 4 5 6 7 8 9 10 Strongly disagree b) I feel a strong sense of commitment to the Company Strongly agree 1 2 3 4 5 6 7 8 9 10 Strongly disagree 9. Leadership a) There is a feeling at Widney Cabs Ltd that employees support the leadership of the Company. Strongly agree 1 2 3 4 5 6 7 8 9 10 Strongly disagree b) Employees feel that the management of the Company are working in the best interest of the Employees. Strongly agree 1 2 3 4 5 6 7 8 9 10 Strongly disagree References Denison, D. 1990. Corporate Culture and Organizational Effectiveness. New York: Wiley Jacques, E. (1951). The Changing Culture of a Factory. London: Tavistock. Kotter, John. 1992 Corporate Culture and Performance, Free Press; (April 7, 1992) Mullins, L. J. (2005). Management & Organizational Behaviour. London Schein, E.H. (1990). Organizational culture. American psychologist, 45,112-118.  Schein, E.H. (1985-2005) Organizational Culture and Leadership, 3rd Ed., Jossey-Bass Watson, G., & Gallagher, K. (2005). Managing for results. London: CIPD. 2nd Edition. Read More