SABS
2.7 ORGANISATIONAL CULTURE
Once people have accepted that the world will never be the same again, then new opportunities may present themselves. In order for an organisation to remain competitive in today's global market, it has to recognise change as an ongoing occurrence and to tackle it with fresh enthusiasm every time.
2.6.5 Conclusion
So thus in conclusion, all four agree that change is part of being human, and that human and change go together, hence change should be adopted with less fear than is currently happening.
Thomas Wolf (as cited in Want, J. H. 1995.) quotes "You can'tgo home again because home ceases to exist except in the mothballs ofone's own memories. "
Each organisation has its own unique organisational culture. Each has its own embedded patterns of"How we do things around here". Culture can be defined as the unwritten laws eg,"That chair in the boardroom is Mike's chair, or this is how the documentation shouldflow etc ".
2.7.2 Where Does Corporate Culture Come From
"A corporate culture is a product of internal social forces. It represents any interdependent set ofvalues and behavioral norms",(Thompson, A A. JR and Strickland, AJ. 1995.) Corporate culture is not only found at organisational level, but also found at departmental level, subcultures do exist within each area. Values, beliefs and practices vary from department, geographical areas etc.
2.7.3 The Power of Culture
Most managers accept that an organisation culture is an important contributor or obstacle to successful strategy execution.
mM
CEO, Thomas Watson JR, stated the case for a culture-performance link eloquently in a 1962 speech at Columbia University, "The basic philosophy, spirit and desire of an organisation have far more to do with its relative achievements than do technological or economic resources, organisation structure, innovation and timing. All theses things way heavily on success. But they are, I think, transcended by how strongly the people in the organisation believe in its basic precepts and how faithfully they carry them out". (Thompson, A A. JR and Strickland, AJ. 1995)Therefore, if an organisation believes goals and practices called for in a strategy are compatible with its culture, it usually is easy to implement the strategy successfully and visa versa.
2.7.4 Strong Versus Weak Cultures
A weak or fragmented culture leads to employees having no deep felt company identity, they view the organisation purely as a place of work. A strong culture on the other hand results in a clear and explicit set of principles and values that management spends time on communicating to their employees.
Three factors that contribute to the development of strategically supportive strong cultures (Thompson, A. A. JRand Strickland, A. J. 1995)
"A strong leader who establishes values, principles and practices that are consistent and sensible in light of customer needs, competitive conditions and strategic requirements, a single, long standing company commitment to operating the business according to these established traditions and a genuine concern for the well-being of the organisation's three biggest constituencies - Customers, Employees and Shareholders".
Organisations that are prone to fast changes have to create an "Adaptive Culture", in these cultures, management genuinely cares about the well-being of their Customers, Employees and Shareholders. Entrepreneurship is further encouraged and rewarded.
Strategies are modified to take advantage of changes in the business environment.
2.7.5 Creating the fit Between Strategy and Culture
It is ultimately the responsibility of the "Strategy- Makers", to select a strategy that is compatible with the existing organisational culture. He has to change whatever facets of the culture that may hinder the effective execution of the plan. Changing the organisation culture or aligning it with the strategy is one of the most difficult things to do. It is very important to talk to the staff first and get their input and then to ensure that visible changes are made quickly.
2.7.6 Building a Spirit of High Performance Into the Culture
This aspect focuses on achievement and excellence. The majority of these organisations are people orientated. To create such an organisation the organisation must make champions out of the people who turn in wining its entire chain. It begins with a competition to determine the best hamburger cooker in each store. Store winners go onto compete in regional championships, and winners go to the All-American contest. The winners get trophies and an All American patch to wear on their shirts. (Thompson, A. A.
JR and Strickland, A. J. 1995) 2.7.7 Dealing with Politics
The strategy manager needs to know the organisation backwards, who wields influence in the executive ranks, who is open to change, who are the defenders of the status quo etc.
A major British corporation chairman (name not given) quotes, "I've never taken a major decision without consulting my colleagues. It would be unimaginable to me, unimaginable. First they help me make a better decision in most cases. Second,
if
they know about it and agree with it, they'll back it. Otherwise, they mightchallenge it, not openly, but subconsciously". (Thompson, AA. JR and StrickJand, AJ. 1995)2.7.8 Conclusion
Therefore in conclusion the politics of strategy centres around stimulating options, nurturing support for strong proposals and killing weak ones, guiding the formation of coalitions on particular issues and achieving consensus and commitment.