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An investigation into organisational culture permeation and its impact on traits for improved organisation performance

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Organisational culture: what is it and how does it affect organisational effectiveness?

An organisation’s culture can play a significant role in determining the organisation’s success – or its failure. This is because organisational culture determines everything from how decisions are made to how employees feel and behave within the organisation.

Built on a foundation of organisational values, and reflecting the behaviours of its leaders, an organisation’s culture is effectively the personality of the organisation or business. How does it treat people? What sorts of practices, processes, and policies does it prioritise? These are important questions, because the culture an organisation develops can help to deliver on performance and organisational goals, strategic objectives, and can even influence employee recruitment and retention. In short: a strong culture is a powerful asset within any business – and a dysfunctional organisational culture can significantly stunt its success. 

So what exactly is organisational culture? A commonly used definition comes from Daniel R. Denison, a professor of organisation and management who co-wrote a paper called Toward a Theory of Organisational Culture and Effectiveness with Aneil K. Mishra. Denison says that organisational culture is “the underlying values, beliefs, and principles that serve as the foundation for an organisation’s management system, as well as the set of management practices and behaviours that both exemplify and reinforce those basic principles.” 

According to the Chartered Institute of Personnel and Development (CIPD) , the UK association for human resource management professionals, organisational culture “matters because it offers a way for employees to understand their organisation, to voice their views, and to develop connections and common purpose.”

What are the different types of organisational cultures?

Organisational cultures can be broken down into several different categories. For example, the Competing Values Framework outlines four classifications for organisational culture and leadership.

• Adhocracy culture . Also known as the create culture, adhocracy culture is commonly seen in entrepreneurial businesses. A blend of ad hoc and bureaucracy, adhocracy is focused on flexibility and innovation.
• Clan culture . Also known as the collaborative culture, this organisational culture is focused on people first.
• Hierarchy culture . Hierarchy culture is also known as control culture, and is process-oriented, with clear structures and procedures in place for everyone from entry level employees to high-level stakeholders.
• Market culture . Market culture is driven by results, and is also known as compete culture. It’s driven by profitability, a competitive advantage, and the organisation’s bottom line.

The Harvard Business Review , meanwhile, identifies eight different types of corporate cultures.

• Caring cultures , which are focused on collaborative relationships, teamwork, a good work-life balance, and mutual trust. 
• Purpose cultures , which are focused on idealism and altruism. 
• Learning cultures , which are characterised by creativity and innovation among team members.
• Enjoyment cultures , which feature lighthearted working environments.
• Results cultures , which are driven by achievements, and are focused on outcomes and business performance.
• Authority cultures , which are defined by strength and decisiveness in decision-making as well as competitive work environments.
• Safety cultures , which are risk-conscious and focused on planning and preparedness.
• Order cultures , which are focused on respect, structure, and shared norms. 

What are the main factors that influence organisational culture?

There are several schools of thought when it comes to organisation culture, what shapes it, and what influences it.

For example, Edgar Schein , Professor Emeritus at the MIT Sloan School of Management, argued that organisational culture had three levels:

• artefacts , which are the organisational attributes that can be seen and heard by anyone. For example, the appearance of offices and décor, how employees dress, and how they interact with others.
• values , which are cultural elements that are explicitly stated: mission statements, slogans, corporate values and behaviours, and so on. 
• basic assumptions , which are the common beliefs that evolve within the organisation and form a pattern while never being explicitly articulated or challenged.

Others, such as Professor Geert Hofstede – a social psychologist – developed an organisational culture model with six factors:

• Organisational effectiveness . Is the organisation means-oriented or goal-oriented? Is it primarily focused on what it achieves, or how it achieves it?
• Customer orientation . Is the organisation internally driven or externally driven?  
• Level of control . Is the organisation easygoing or strict in terms of work discipline?
• Focus . Are employees within the organisation locally focused on their immediate boss or team, or professionally focused?
• Approachability . Does the organisation operate as an open system or a closed system? 
• Management philosophy . Is the organisation employee-oriented or work-oriented? 

Understanding the impact of organisational culture

How does the culture of an organisation impact organisational change.

An organisation’s culture can directly influence its response to organisational change. This is significant, with the CIPD pointing out that an “effective approach to managing change is vital because evidence indicates that few change initiatives are successful. This failure can have a great impact on an organisation, both in their market position and the engagement and retention of employees.”

With people and culture being the single biggest drivers of organisational change success, it’s obvious that a dynamic, change-receptive culture is key to ensuring the success of any organisational change programmes.

How does the culture of an organisation impact individual and organisational performance?

It’s clear that organisational culture has a large part to play in driving the effectiveness of the organisation – and the individual – however, research to establish firmer links between culture and organisational performance, or employee performance outcomes, is still ongoing.

“There’s speculation that culture affects organisational performance, and some organisations have put great effort into changing their culture and structure to improve this,” reports the CIPD. “However, while managing organisational culture is increasingly seen as a necessary part of governance and management practice, research evidence on the link between organisational culture and performance is weak.”

That said, in his recently published book Win from Within: Build Organisational Culture for Competitive Advantage , James Heskett highlights the correlations between organisational culture and employee loyalty, productivity, and creativity.

And according to Tom Peters, who co-wrote the 1980s strategic management book In Search of Excellence , says that culture drives in behaviour , and that in turn, organisational behaviour “has direct impact on the bottom line, costs, revenue streams, level of productivity, customer satisfaction, even the brand – every aspect of the business is affected.”

Additionally, Jennifer A. Chatman and other academics have written extensively on the topic of leadership, its impact on organisational culture – and the impact on performance. For example, in a publication titled The Promise and Problems of Organisational Culture: CEO Personality, Culture, and Firm Performance , Chatman and others found that “CEO personality affects a firm’s culture and that culture is subsequently related to a broad set of organisational outcomes including a firm’s financial performance, reputation, analysts’ stock recommendations, and employee attitudes.”

How does the culture of an organisation impact the organisation’s ability to innovate?

There are a number of organisational culture styles that encourage – or inhibit – innovation. For example, both the adhocracy and learning cultures place a strong emphasis on innovative behaviours and outcomes, while a hierarchy culture or order company culture are more likely to favour tried-and-true processes and procedures that restrict innovation and new ideas.

How does the culture of an organisation impact the organisation’s ability to compete?

Much like innovation, organisational competitiveness can be directly influenced by the organisation’s culture and its core values. Market culture, for example, is often referred to as compete culture, and is focused primarily on market competitiveness.

Models for improving corporate culture and organisational effectiveness

Regardless of whether a leader is focused on corporate culture and performance, or the culture and performance within a health care setting – or anything in between – there are a number of different models, methods, and leadership styles that can be used to create a set of shared values and a strong organisational culture.

One example is Dr. John Kotter’s eight-step process for leading change . Another is the McKinsey 7-S framework .

Help shape the culture of your organisation

You could advance your career in management and leadership with the 100% online MBA Leadership from Lincoln International Business School at the University of Lincoln. This degree has been created for ambitious professionals who want to fast-track their career progression, and because it’s studied part-time and fully online, you can learn around your current work and personal commitments.

Through one of your core modules, you’ll have the opportunity to learn about leading and developing individuals and high-performance teams within an organisational culture. This degree also explores other areas of leadership, such as talent management, learning organisations, workforce design, succession planning, and diversity and inclusion. Another key module on this programme is in leading organisational change, so you could examine organisational change theories, models, and frameworks, as well as different approaches for managing change, and new ways of working across infrastructure, processes, people, and culture to promote the effective leading of organisational change.

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Gray, Roderic John. "Organisational climate and project success." Thesis, Anglia Ruskin University, 1999. http://ethos.bl.uk/OrderDetails.do?uin=uk.bl.ethos.264984.

Du, Plessis Yvonne. "The development of an assessment tool for measuring project management culture in organisations." Thesis, Pretoria : [s.n.], 2003. http://upetd.up.ac.za/thesis/available/etd-06092004-112505.

Engelke, Renske Magdalena. "An evaluation of the organisational culture of Matla Powerstation to support effective project management." Thesis, Stellenbosch : Stellenbosch University, 2011. http://hdl.handle.net/10019.1/19796.

Jokinen, T. (Tauno). "Managing quality inside a high-technology project organization." Doctoral thesis, University of Oulu, 2004. http://urn.fi/urn:isbn:951427301X.

Osborne, Vincent. "Is the organisational culture of Cape of Good Hope Bank Limited's Treasury and Investments Division ready for project management methodology?" Thesis, Stellenbosch : Stellenbosch University, 2001. http://hdl.handle.net/10019.1/49700.

Gårlin, Karl, and Mathias Kostet. "Change Through Transformation : An exploratory case study on leadership in contrasting organisational contexts of IKEA Sweden." Thesis, Umeå universitet, Företagsekonomi, 2016. http://urn.kb.se/resolve?urn=urn:nbn:se:umu:diva-123230.

Benadict, Rajasegaram Annet. "The application of post-project reviews in events management by cultural operators." Thesis, Umeå universitet, Företagsekonomi, 2016. http://urn.kb.se/resolve?urn=urn:nbn:se:umu:diva-118291.

Dragana, Milin. "Uticaj organizacione kulture i strukture preduzeća na uspešnost projekata." Phd thesis, Univerzitet u Novom Sadu, Fakultet tehničkih nauka u Novom Sadu, 2014. http://www.cris.uns.ac.rs/record.jsf?recordId=85749&source=NDLTD&language=en.

Weeks, Susan Jane, and Francesca Clotilde Scialdone. "Management of Uncertain Resources in Film Festival Organisations : a first European Picture." Thesis, Umeå universitet, Företagsekonomi, 2017. http://urn.kb.se/resolve?urn=urn:nbn:se:umu:diva-130737.

Diaz, Carlos Fernando Gomez. "Chilean organisational culture." Thesis, University of Liverpool, 1997. http://ethos.bl.uk/OrderDetails.do?uin=uk.bl.ethos.364111.

Bright, K. S. "Organisational culture and the management of quality." Thesis, University of Manchester, 1994. http://ethos.bl.uk/OrderDetails.do?uin=uk.bl.ethos.496298.

Siddieg, T. E. S. I. "Culture and organisational change in a major Sudanese organisation." Thesis, Lancaster University, 1988. http://ethos.bl.uk/OrderDetails.do?uin=uk.bl.ethos.304295.

De, Jager A. J. "A framework for organisational project management at Sasol Technology." Thesis, Stellenbosch : Stellenbosch University, 2000. http://hdl.handle.net/10019.1/51569.

D'Andrea, Dajana. "Organisational routines in project-based organisations : an exploratory study." Thesis, University of Sussex, 2012. http://sro.sussex.ac.uk/id/eprint/39706/.

Jonker, Martin. "Enhancing project success using an organisational architecture approach." Thesis, Nelson Mandela Metropolitan University, 2015. http://hdl.handle.net/10948/4101.

Preston, Diane. "Making sense of organisational culture : the role of management development in organisational socialisation." Thesis, Lancaster University, 1991. http://ethos.bl.uk/OrderDetails.do?uin=uk.bl.ethos.316543.

Tong, Michael K. L. "The management of inter-organisational relationships and project based learning." Thesis, Glasgow Caledonian University, 2011. http://ethos.bl.uk/OrderDetails.do?uin=uk.bl.ethos.547433.

Sobhiyah, Mohammad Hossein. "Project start-up and its relevance to organisational development and project management in Iran." Thesis, University of Birmingham, 1999. http://ethos.bl.uk/OrderDetails.do?uin=uk.bl.ethos.368562.

Khanyile, Dumisani. "Organisational culture and knowledge creation : the relationship between knowledge creation enablers and organisational culture types." Thesis, Stellenbosch : University of Stellenbosch, 2009. http://hdl.handle.net/10019.1/4045.

Judson, Robert Graham. "A study of the effects of leadership style and organisational culture on organisational performance." Thesis, Kingston University, 2009. http://eprints.kingston.ac.uk/20883/.

Khabeng, Kagiso Ivan. "Assessment of organisational culture of a business unit." Thesis, Stellenbosch : University of Stellenbosch, 2010. http://hdl.handle.net/10019.1/8573.

Halonen, Raija. "Challenges in an inter-organisational information system implementation : participatory view /." Oulu : University of Oulu, Department of Information Processing Science, 2007. http://herkules.oulu.fi/isbn9789514284694/isbn9789514284694.pdf.

Osborne, Jeremy. "Extending knowledge management beyond organisational borders – barriers for South African construction organisations." Master's thesis, Faculty of Engineering and the Built Environment, 2020. http://hdl.handle.net/11427/32907.

Ciuk, Sylwia. "Climbing out of organisational depression : culture change project after a toxic leadership episode." Thesis, Oxford Brookes University, 2011. https://radar.brookes.ac.uk/radar/items/fb9e26b1-31a7-4acd-a9cb-f1e2acd8a457/1/.

Britton, Garth Murray, and garth britton@netspeed com au. "On Reading Lines in Shifting Sands: making organisational culture relevant." The Australian National University. College of Business and Economics, 2007. http://thesis.anu.edu.au./public/adt-ANU20071105.161653.

Zhao, Ying. "Organisational culture : a comparison of Naspers and Tencent." Thesis, Stellenbosch : Stellenbosch University, 2007. http://hdl.handle.net/10019.1/22018.

Seares, Roger C. "Market orientation, organisational culture and organisational performance : an analysis of the Australian Broadcasting Corporation." University of Western Australia. Graduate School of Management, 2005. http://theses.library.uwa.edu.au/adt-WU2005.0105.

Abubakre, Mumin Adetunji. "The influence of organisational culture and organisational control on the diffusion of a management information system." Thesis, Loughborough University, 2013. https://dspace.lboro.ac.uk/2134/12999.

Gilmour, Sophia Mawani, and n/a. "Organisational culture and the communication of loyalty : an ethnography." University of Canberra. Professional Communication, 2006. http://erl.canberra.edu.au./public/adt-AUC20070119.152841.

Nuottila, J. (Jouko). "Flexibility in agile projects:contracting practices and organisational arrangements." Doctoral thesis, Oulun yliopisto, 2019. http://urn.fi/urn:isbn:9789526224190.

Abu, Baker Rohaya. "The management practices and organisational culture of large Malaysian construction contractors." Thesis, University of Reading, 1998. http://ethos.bl.uk/OrderDetails.do?uin=uk.bl.ethos.242126.

Parker, Martin. "Organisational culture in context : a study of management in three organisations." Thesis, Staffordshire University, 1995. http://ethos.bl.uk/OrderDetails.do?uin=uk.bl.ethos.262037.

Chan, Andrew. "Representing culture in organisational discourse : toward a genealogy of subjectivisation." Thesis, Lancaster University, 1998. http://ethos.bl.uk/OrderDetails.do?uin=uk.bl.ethos.264124.

Kurtz, R. P. (Ronald Patrick). "Establishing a culture supporting project management within an organization." Thesis, Stellenbosch : Stellenbosch University, 2004. http://hdl.handle.net/10019.1/49948.

PODLESNY, PAULINE ANNA, and JENNIFER ELZE. "Overcoming intercultural communication barriers : Organisational Culture and Organisational Learning within a Swedish Textile Company." Thesis, Högskolan i Borås, Institutionen Textilhögskolan, 2014. http://urn.kb.se/resolve?urn=urn:nbn:se:hb:diva-18004.

Abridah, Alkddafi Ibrahim Altaher. "The influence of national and organisational culture on creativity in Libyan work environments." Thesis, University of Huddersfield, 2012. http://eprints.hud.ac.uk/id/eprint/17513/.

Tuan, Nien-Tsu. "Towards an interactive management approach to performance improvement in bureaucratic organization." Doctoral thesis, University of Cape Town, 2002. http://hdl.handle.net/11427/14950.

Davies, Gareth. "The impact of organisational culture, learning and knowledge development on performance." Thesis, Kingston University, 2012. http://eprints.kingston.ac.uk/24604/.

Alhaddad, Masalek. "Career self-management in ascription culture." Thesis, Brunel University, 2014. http://bura.brunel.ac.uk/handle/2438/8746.

Gqada, Dumisani. "The South African Police Service organisational culture : the impact on service delivery." Thesis, Stellenbosch : Stellenbosch University, 2004. http://hdl.handle.net/10019.1/50190.

BARRIOS, CALDERON JOSE ROBERTO, and JIMENEZ LUIS PABLO DIAZ. "Organisational Culture Characteristics that Influence Knowledge Sharing : A Case Study on Multinational Project Teams in Latin America." Thesis, Umeå universitet, Företagsekonomi, 2015. http://urn.kb.se/resolve?urn=urn:nbn:se:umu:diva-115233.

Steyn, Keegan. "Organisational ventriloquism in a project centered organization : a qualitative inquiry into the effects of ritualized mimeticisomorphism within a project centered organization." Master's thesis, University of Cape Town, 2015. http://hdl.handle.net/11427/19892.

Masinovic, Dinka. "Recruitment process outsourcing and organisational culture, connecting the dots." Thesis, Högskolan Kristianstad, Sektionen för Hälsa och Samhälle, 2010. http://urn.kb.se/resolve?urn=urn:nbn:se:hkr:diva-7331.

Memon, Salman Bashir. "Relationship between organisational culture and knowledge creation process in knowledge-intensive banks." Thesis, Queen Margaret University, 2015. https://eresearch.qmu.ac.uk/handle/20.500.12289/7313.

Pattison, Elizabeth Mary. "The contribution of soft systems methodology to the achievement of change in organisational culture." Thesis, University of Warwick, 1995. http://wrap.warwick.ac.uk/36206/.

Wilson, Elisabeth Mary. "Organisational culture as a framework for male and female progression and preferred management style." Thesis, Liverpool John Moores University, 1998. http://researchonline.ljmu.ac.uk/4992/.

Kravariti, Foteini. "National and organisational cultural impact on talent management implementation : case studies from Greece." Thesis, University of Manchester, 2016. https://www.research.manchester.ac.uk/portal/en/theses/national-and-organisational-cultural-impact-on-talent-management-implementation-case-studies-from-greece(355f5242-6ba1-4a3a-8af7-5b744b478d51).html.

Holmlund, Tim, and Oscar Lindqvist. "Virtual Team Management & Organisational Identification : A Mixed Method Study." Thesis, Umeå universitet, Företagsekonomi, 2015. http://urn.kb.se/resolve?urn=urn:nbn:se:umu:diva-105768.

Hung, Kitty Shuk-Yee. "A Dynamic Business Object Architecture for supporting Strategic Management Planning." Thesis, University of Sheffield, 1999. http://ethos.bl.uk/OrderDetails.do?uin=uk.bl.ethos.310629.

Beech, Peter Nicholas Hugh. "A critical assessment of high commitment management." Thesis, Open University, 1999. http://ethos.bl.uk/OrderDetails.do?uin=uk.bl.ethos.286922.

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The Impact and Influence of Organisational Culture on Innovation Management (2012)

Innovation Management and Organisational Culture Dissertation – An organisation’s culture is the established system of doing things, it is a reference point that guides the relationships in an organisation and the decision making processes. This is either consciously or unconsciously. Culture affects all aspects of the organisation; it is like a web that joins new ideas or relationships with the old ones that represent the accepted thought paradigm.

This paradigm is a sieve that only lets through the culturally acceptable strategies in an organisation. Modern organisations struggle to create an organisational culture that supports the set goals and objectives of an organisation. It is from the organisational culture base that an organisation can pursue projects that increase its competitiveness in the market. Culture is dynamic. Organisations are involved in a program that ensures there is a suitable culture to cope with the changes in the industry of operation, human resource policy and the technological changes that always affect organisation. Top on the major organisational practices that require a suitable organisational culture is Innovation.

This is among the major competitive advantages that an organisation can have especially in this rapidly changing era. The market is not only interested by the quality or price of a company’s product but also on the improvements aimed at adding utility while satisfying the consumer wants. The survival of every organisation is greatly influenced by its innovation capacity. The dynamism in modern business environments requires organisations to set up structures that ensure continuous flow of new ideas in production marketing and human resources mobilization.

In innovation management, an organisations culture plays a major role. In the recent past China has emerged as a major economic power with multinationals that market their products in almost all parts of the world. The Chinese multinationals have become competitive in the world due to their innovative tendencies. The specific objectives of the dissertation include;

• To establish the nature of Foxconn’s organisational culture and culture change processes
• To identify the processes of innovation in Foxconn
• To demonstrate the role of human resource policy to an organisational culture
• To indentify the sustainability of Foxconn innovativeness in regard to changing organisational culture
• 10,000 words – 50 pages in length
• Good use of literature
• Good in depth analysis
• Well written throughout
• Includes questionnaire
• Ideal for business management students

1 – Introduction Background Aim and Objectives Research questions Methodology Dissertation Structure

2 – Literature Review Introduction The Role of Organisational Culture Innovation Management Foxconn Culture and Innovations

3 – Methodology Introduction Research Perspective Research Design Qualitative Research Population Reasons for Choosing Foxconn Sample Data Collection Primary Data Collection Methods Interviews Interview Questions Development Questionnaires Secondary data Ethical Issues Observed in the Study

4 – Findings Introduction Organisational culture in Foxconn Foxconn 3Cs Culture Innovations in Foxconn

5 – Discussion Oganisational culture Foxconn’s Training Culture Effects of Innovations on Foxconn’s Organisational Culture The Human Resource Policy in Foxconn

Chapter 6 – Conclusion and Recommendations

Appendix Section

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