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

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

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Organisational Culture and Strategic Planning Presentation Transcript

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