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life-cycle is the business idea itself and clearly this is capable of being modified and adapted in the light of experience. Bhattachary, on the other claims that the company overall has a life-cycle and has the capability of passing through a period of early struggle, to one of motivation, followed by complacency and ultimately decline. In his
t, terms, organizational renewal is not, an easy option.
Structure
In essence, the structuralists seek to find rational ways to build an organisational structure best suited to match the company to its chosen environment. Bums and Stalker (961)25 found that in stable environments the so-called mechanistic organisation (bureaucratic, impersonal, formal communication channels and a high division of labour), was more successful than what they termed the 'organic' organisation (non-bureaucratic, informal with multi-path communication channels). When the environment became more volatile, however, the
reverse was true.
Lawrence and Lorsch (967)26 took a different view and put forward
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5. A shared values system can be a source of strength and commitment to the company.
6. The more explicit are the values system and organisational vision, the more committed are the staff.
7. Culture only has to be 'sensible' to those who operate within the company. It doesn't necessarily have to be rational or congruent with the current business environment.
8. The more deeply a culture is embedded, the more difficult it is to
change.
Thus, corporate cultures can be anti-developmental, since they are backward-looking. Equally, it takes a senior executive with vision and high commitment to overthrow an out-of-date culture and replace it with a new set of more appropriate norms of behaviour.
This idea of trying to change the corporate culture opened up a new avenue of exploration.
Perspectives on organisational change
Mangham (1979)27 and Marshall and McLean (1985)28 found that corporate culture created an inertia which reduced attempts to introduce radical change into something far less potent, and consequently, less effective. Johnson (1984)29 found that a successful change process had to start with the existing cultural norms being loosened and their culture carriers discredited. This paves the way for a subsequent reconstruction, which ultimate~ allows for consolidation into a new cultural recipe. Williams (970) 0 discovered that for the change process to be managed to a successful conclusion, several different rules needed to be played. These are termed:
• Change agent - the person who stimulates the change, either from inside the organisation, or as an external adviser.
• Catalyst - a person with enough power to ensure the change takes place, but who might well remain unaffected at a personal level.
• Pacemaker - the person who provides the energy to keep the change process going.
• Diffusion agent/s) - who help to transfer or communicate the change into the furthest recesses of the organisation.
The influence of the various role players assumes different importance as the change process unfolds, as shown in Figure 4.6.
Schein (1985)31 claims that there are a number of different ways of intervening in a company in order to bring about a change in corporate culture. Bv and larce. these intervention techniques need to be matched
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Figure 4.6 Influences of role players during the change process (after Williams)
to the company's stage of development and are required to be increasingly coercive, the stronger the existing culture is embedded.
His study of culture carriers identified five main observable actions that leaders take, either consciously or subconsciously, which transmit and embed culture. These primary mechanisms are:
1. How the leader reacts to crises or critical incidents.
2. The criteria they establish for allocating rewards and status.
3. The areas to which the leader pays attention, measures and controls.
4. The criteria they establish for recruitment, selection, promotion, retirement and dismissing staff.
5. The role model the leader promotes by either their own behaviour,
or by coaching and teaching others.
Schein also identified a second tier of cultural transmitters, which are:
1. Organisational systems and procedures.
2. Organisational design and structure.
3. Design of physical space, facades and buildings.
4. Formal statements about organisational philosophy, creeds and charters.
5. Stories, legends, myths and parables about important people and
events in the company's life.
Key issues from the literature review
Overall, it seems that there are two main determinants of corporate culture:
1. The culture that has evolved as the company developed and which is related to its maturity or stage of development.