MBA401 People, Culture and Contemporary Leadership Workshop Week 2 Developing Culture and Engagement COMMONWEALTH OF AUSTRALIA Copyright Regulations 1969 WARNING This material has been reproduced and communicated to you by or on behalf of Kaplan Business School pursuant to Part VB of the Copyright Act 1968 (the Act). The material in this communication may be subject to copyright under the Act. Any further reproduction or communication of this material by you may be the subject of copyright protection under the Act. Do not remove this notice. 2 • To understand the nature of organisational culture. • To understand how managing change can affect people within organisations. • To understand the concept of employee engagement, how it is measured, and how it can impact performance. • LO1 - Explain the key concepts in managing the human resources inherent in an organisational system. • LO2 - Apply human resource considerations to business decision making and in meeting organisational strategic goals. Workshop Objectives When Culture Goes Well When Culture Goes Wrong Activity – Culture • On your own, write down your definition of organisational culture. What is Organisational Culture? • A pattern of basic assumptions invented, discovered, or developed by a given group as it learns to cope with its problems of external adaptation and integral integration, that has worked well enough to be considered valid, and, therefore to be taught to new members as the correct way to perceive, think, and feel in relation to these problems. Source: Schein (2010) What is Organisational Culture? • Organisational culture is the pattern of beliefs and expectations that shape the behaviours of individuals and teams in organisations. • Shared meanings and mindsets bind employees together and help members make sense out of the organisation. • Culture affects performance. However the culture must be the ‘right’ one to support business strategy. • A culture which supports knowledge sharing will encourage innovation. Source: Nankervis et al (2014) Aspects of Culture • Rites and ceremonies • Stories • Symbols • Language Source: Trice and Beyer (1984) Video - Enron • https://www.youtube.com/watch?v=1dNZa KLjYbc • So what went wrong at Enron? – Pride – Arrogance – Intolerance Styles of Culture • Dominant culture – Core values shared by the majority of employees. • Sub cultures – Core values are shared by the majority of employees and unique values of a division or department. • Strong cultures – Intense attachment by employees of core values, behaviourally aligned, little bureaucracy required. • Weak cultures – Less attachment to values, less alignment, bureaucracy required. Source: McKenna (2012) Types of Culture • Power culture – Concentrates power among a small group or a central figure and its control is radiating from its centre like a web. • Role culture – Authorities are delegated as such within a highly defined structure. • Task culture – Teams are formed to solve particular problems. Power is derived from the team with the expertise to execute against a task. • Person culture – Formed where all individuals believe themselves superior to the organisation. Source: Harrison (1972), Handy (1976) Types of Culture • Clan culture (internal focus and flexible) – A friendly workplace where leaders act like father figures. • Adhocracy culture (external focus and flexible) – A dynamic workplace with leaders that stimulate innovation. • Market culture (external focus and controlled) – A competitive workplace with leaders like hard drivers. • Hierarchy culture (internal focus and controlled) – A structured and formalised workplace where leaders act like coordinators. Source: Cameron and Quinn (1999) Activity - Google • In groups of 4 or 5 using your own knowledge and research from the internet, prepare a 5 minute presentation entitled “The Culture at Google”. • You will be required to present this back to the rest of the class. • Use all of the following to help inform your views: – Aspects of culture – Styles of culture – Types of culture • What would it be like to work at Google? Activity - Helpful Resources • https://hbr.org/2013/05/what-is-organizational-culture • http://www.businessinsider.com.au/heres-what-its-really-like-towork-at-google-the-worlds-most-attractive-employer-20159#/#current-role-1 • http://www.businessinsider.com.au/google-employees-confess-theworst-things-about-working-at-google-2013-11 • https://www.google.com.au/about/company/facts/culture/ • https://www.officevibe.com/blog/7-secrets-of-googles-epicorganizational-culture • http://www.nytimes.com/2013/03/16/business/at-google-a-place-towork-and-play.html?_r=0 • https://blog.kissmetrics.com/googles-culture-of-success/ • To help set cultural strategy and values. • To define elements of a high performing culture. • To identify the right structure and leadership. • To integrate relevant culture and behavioural characteristics into HR processes, for example: – Recruitment – Performance management – Training and development • To manage cultural change Culture - The Role of HR Source: Nankervis et al (2014) • https://www.youtube.com/watch?v=VE0lPTfsBoI • Watch the video and in groups of 4 or 5 answer the following questions: • What are the key drivers of change that will affect the organisation Deutsche Post? • How would the culture need to adapt to ensure that Deutsche Post is successful? Activity – Deutsche Post Forces for Change Source: Nankervis et al (2014) Types of Change Planned Unplanned • Write down 5 examples of planned change. • Write down 5 examples of unplanned change. • Let’s discuss. Activity – Change Changing Culture • So at each stage, what is the contribution that HR could make? Source: Nankervis et al (2014) Source: Johnson, Scholes and Wittington (2008) The Cultural Web Employee Engagement • What is it? Is it just about being happy at work? • Engaged workers are those that are “fully physically, cognitively and emotionally connected to their work” (Kahn, 1990). Employee Engagement • “A passion for work” (Truss, Soane, Edwards, Wisdom, Croll & Burnett, 2006). • “Engagement is an employee’s level of involvement and enthusiasm” (Seijts & Crim, 2006). • “A state of mind and a clear identification with a given job role” (Bakker, Schaufele, Leiter & Taris, 2008). • “A heightened emotional connection that an employee feels for his or her organisation that influences his or her to exert greater discretionary effort to his or her work” (Soldati, 2007). • Simplistically, all of these perspectives in one way or another deem ‘work engagement’ as a situation in which workers are self motivated to go ‘above and beyond’ in the course of their work. Employee Engagement • “A positive, fulfilling, work related state of mind that is characterised by vigour, dedication and absorption” (Schaufeli, Salanova, Gonzalez-Roma & Bakker, 2002). Activity – Are You Engaged? Answer the following questions based on your current or last job: 1. Do you know what is expected of you at work? 2. Do you have the materials and equipment you need to do your work right? 3. At work, do you have the opportunity to do what you do best every day? 4. In the last seven days, have you received recognition or praise for doing good work? 5. Does your supervisor, or someone at work, seem to care about you as a person? 6. Is there someone at work who encourages your development? 7. At work, do your opinions seem to count? 8. Does the mission/purpose of your company make you feel your job is important? 9. Are your associates (fellow employees) committed to doing quality work? 10. Do you have a best friend at work? 11. In the last six months, has someone at work talked to you about your progress? 12. In the last year, have you had opportunities at work to learn and grow? https://www.youtube.com /watch?v=cX2f0LEGZn8 The Gallup Q12 What Drives Engagement? • Employee perceptions of their job. • Employee clarity of job expectations. • Career development opportunities. • Regular performance feedback. • Quality of working relationships. • Perceptions of organisation’s ethics and values. And What Does Engagement Drive? • Lower staff turnover. • Higher staff retention. • Greater career advancement. • Higher earnings per share compared with the competition. Activity - Concepts • What do you think the differences are between the 3 concepts of: – Employee Engagement – Job Satisfaction – Intrinsic Motivation • Culture is the basic assumptions, values and norms that are taken for granted and guide perceptions, thoughts and actions. • HR can contribute to organisational culture change. • Engagement is a complex concept yet widely adopted on a practical basis within organisations. • Engaged employees make a positive influence on organisational outcomes. Summary Any Questions? Assessment 1 - Overview • Refer to subject outline. Any Questions?