Organisational Culture and Strategic Planning

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Explain how Organisational Culture impact on the development of a strategic plan.

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Organisational Culture and Strategic Planning

  1. 1. <ul><li>Explain how Organisational Culture impact on the development of a strategic plan. </li></ul><ul><li>NASEEMA KAJEE </li></ul><ul><li>13/06/07 </li></ul>
  2. 2. <ul><li>Logically, we think that strategy should drive behavior. BUT in reality, it’s the culture – the underlying norms, belief systems – that dictates how effectively people work together… </li></ul>
  3. 3. ORGANISATIONAL CULTURE <ul><li>Every organisation has a particular culture </li></ul><ul><li>It comprises of an omnipresent set of assumptions which is often difficult to fathom and which directs activities with the organisation. </li></ul><ul><li>Organisational culture may be defined as the beliefs and shared values by people in the organisation </li></ul><ul><li>Examples: </li></ul><ul><li>“ It’s the way we do things around here” (Hewlette Packard) </li></ul><ul><li>“ Culture is the personality of our organisation, it’s what we do when no-one is watching (IBM) </li></ul>
  4. 4. CONTINUED…. <ul><li>Shared values and beliefs form the foundation of a particular culture that influences the activities in that organisation. </li></ul><ul><li>It is entirely possible for two organisations in the same industry, even on the same street to feature divergent cultures. </li></ul><ul><li>Their effectiveness is bond to differ as. </li></ul><ul><li>Clearly organisational culture is a specific collection of values and norms that are shared by people and groups in an organisation. </li></ul>
  5. 5. Continued…. <ul><li>The organisational culture controls the way the employees interact with each other and the stakeholders outside the organisation. </li></ul><ul><li>It determines the values, beliefs and ideas about what kind of standards of behaviour organisational members should use to achieve the organisation’s goals. </li></ul><ul><li>From organisational values develop organisational norms, guidelines or expectations that presecibe appropriate behaviors in a situation. </li></ul>
  6. 6. INGREDIENTS FOR ORGANISATIONAL CULTURE <ul><li>Focuses attention on the human side of organisational life </li></ul><ul><li>It clarifies the importance of creating appropriate systems of shared learning/meaning to help people work together towards a desired outcomes. </li></ul><ul><li>It requires leaders, to acknowledge the impact of their behavior on organisational culture. </li></ul><ul><li>Encourages the view that the perceived relationship between the organisation & it’s environment is also affected by the organisation’s basic assumptions </li></ul>
  7. 7. CONTENT OF ORGANISATIONAL BEHAVIOR <ul><li>The content of culture (visible & invisible) influences the direction of behavior. </li></ul><ul><li>It is also noteworthy that culture affects not only the ways managers & employees behave with the organisation but also the decisions they make about the organisation’s relationship with its environment and its strategy development. </li></ul>
  8. 8. OEGANISATIONAL CULTURE & STRATEGY <ul><li>Fisher (1992;2) maintains that an understanding or the organisational culture is important to ensure the organisation’s success in a rapidly changing environment. </li></ul><ul><li>Given this statement, one immediately sees the link between strategy and culture. </li></ul><ul><li>“ A radiply changing environment is part of the organisations’s environment. </li></ul><ul><li>Strategy is developed subject to the dictates of the environment in which the organisation exists. </li></ul>
  9. 9. STRATEGIC PLAN/(NING) <ul><li>Strategic plan is the organisation’s basic path to the future. </li></ul><ul><li>As a roadmap, the organisation’s strategic plan provides direction – its fosters co-ordination at the top. </li></ul><ul><li>Strategy development is therefor seen as the development of long range plans for the effective management of the organisation’s environmental opportunities & threats while taking into account the organisation’s strengths weaknesses. </li></ul>
  10. 10. THE IMPACT OF ORGANISATIONAL CULTURE <ul><li>When the strenghts and weaknesses of the organisation are determined, special attentention needs to be paid to the nature of an organisation’s culture. </li></ul><ul><li>Once SWOT analysis is completed the organisation set goals and objectives. </li></ul><ul><li>Organisational culture can hinder or help the successful development/ execution of the organisation’s goals and objectives </li></ul>
  11. 11. CONTINUED…. <ul><li>The content of culture is an asset to an organisation if it eases communication, facilitates organisational decisional making and control. </li></ul><ul><li>The result is increased productivity. </li></ul><ul><li>Culture can become a liability when important shared values and beliefs interfere with the organisation’s goals and objectives. </li></ul><ul><li>Because of the influence of the cultural content on behavior, an individual or group: </li></ul><ul><li>May not want to behave as called by the organisation </li></ul><ul><li>May not understand how to behave efficiently and appropriately </li></ul>
  12. 12. Summary <ul><li>The above situtations happen when cultural contents is in conflict with what needs to be done in order to reach the organisation’s objectives. </li></ul><ul><li>The more closely actual behavior matches required behavior, the more productively & effectively the individual and organisation accomplishes its object. </li></ul><ul><li>There fore a successful culture must support the organisation’s strategy. </li></ul><ul><li>Significant changes in strategy must be accomplished by modifications in culture. </li></ul>
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