02-ACCA-F1-讲义-基础-PART A-Chapter 6 Organisational Culture in Business-1

Chapter 6. Organisational Culture in Business

1. Definition of the organisational culture

In every organisation, there has evolved over time a system of beliefs, values, and norms of behavior, that are shared by members of the organisation.

organisation culture has been described as the ‘ways things are done around here!’

2. Factors that shape the culture of the organisation

Organisation culture can be the results of many factors, and are shaped by:

(a) The organisation’s founder and his beliefs

(b) The organisation history

(c) The past and prevailing management leadership and style

(d) The organisation preserved values, goals, and objectives

(e) The orga nisation’s environment

3. Different theory related to corporate culture

3.1 Schein’s three level of culture (determinants of organisational culture)

Edgar Schein(1985) defines organisational culture as ‘the set of shared, taken-for-granted implicit assumptions that a group holds and that determines how it perceives, thinks about and reacts to its environment. He also suggests that the culture of an organisation i s grounded in the founder’s basic beliefs, values and assumptions, and embedded in the organisation over time, as ‘the residue of success’.

He contends that the determinants of organisational culture rest on three levels of consciousness of the people in the organisation.

3.1.1 The first level

The observable, expressed or 'explicit' elements of culture.

Behavior: Norms of personal and interpersonal behavior; customs and rules about behaviors which is 'acceptable' or unacceptable.

Artifacts: Concrete expressions such as architecture and interior design (e.g. office premises), dress codes and symbols.

Attitudes: Patterns of collective behavior such as greeting styles, business formalities, social courtesies and ceremonies.

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3.1.2 The second level

Beneath these observable phenomena lie values and beliefs and the professed culture, which give the behaviors and attitudes their special meaning and significance.

Values and beliefs may be overtly expressed in slogans or the mission statement .

3.1.3 The third level

Beneath values and beliefs lie assumptions ：Foundational ideas ('unspoken-rules').

Those are no longer consciously recognized or questioned by the culture, but which 'programmed' its ways of thinking and behaving.

3.2 Handy’s four cultal stereotypes

Roger Harrison (1972) classified organisation culture into four types that relate structure to culture. Charles Handy in his book ‘Gods of Management’ (1996) gave each type the name of a Greek God.

3.2.1 The power culture (Zeus)

There is only one source or power and influence , which comes normally from the owner or founder of the organisation. The power person will strive to maintain absolute control over subordinates .

3.2.2 The role culture (Apollo)

People describe their jobs by its duties and purposes. It is a bureaucratic organisation, where the structure

determines the authority and responsibility. The culture is based on status, position and hierarchy.