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ORGANISATIONAL CULTURE

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  1. ORGANISATIONAL CULTURE MEASUREMENT AND IMPLICATIONS Eileen Henderson eileen.henderson@xtra.co.nz HENDERSON WHITE ASSOCIATES 8 June 2004

  2. Today’s Presentation • Why go back to study? • A culture questionnaire - OCP • Use of multivariate statistics - SEM • Test of the factor structure of the OCP - failed! • Development of new measurement model • Test of the predictive relationships between • Culture vs Organisational Commitment • Culture vs Job Satisfaction • Implications HENDERSON WHITE ASSOCIATES 8 June 2004

  3. 10 OCP Dimensions • Leadership: Role of leaders in directing organisation, maintaining its culture and serving as role models • Planning: Extent to which the organisation has clear goals; plans to meet the goals, and strives to follow the plans • Communication: Free sharing of information among all levels within the organisation • Humanistic: Extent to which the organisation respects and cares for individuals; the people end of task vs people • Job Performance: Degree to which the organisation emphasises task performance HENDERSON WHITE ASSOCIATES 8 June 2004

  4. Environment: Extent to which the organisation is responsive to client needs and is influenced by/ influences the action of similar organisations • Individual Development: Extent to which the organisation provides members with opportunities to develop their skills; rewards development with career advancement and challenging work • Innovation: Willingness of the organisation to take risks and encourage innovation and creativity HENDERSON WHITE ASSOCIATES 8 June 2004

  5. Socialisation of Entry: Time new members take to settle in and feel they understand the organisation; the effectiveness of any formal induction process • Structure: Degree to which structure limits the action of its members; the influence of its policies and procedures on behaviours; the concentration of power HENDERSON WHITE ASSOCIATES 8 June 2004

  6. Factors of OCP Leadership Environment Planning Individual development Communication Innovation Humanistic Socialisation of Entry Job Performance Structure HENDERSON WHITE ASSOCIATES 8 June 2004

  7. Factors From Literature Detert et al 2000 8 Cultural DimensionsOCP Dimension(s)No. Ref’s Basis of truth and rationalityLeadership10 Nature of time/Time horizon Planning 7 Motivation Communication 9 Humanistic Stability vs Change/Innovation Innovation 17 Individual Dev Orientation to work, Task Job Performance 12 Isolation vs Collaboration -------- 17 Control, Co-ordination Structure 13 Focus – Internal/External Environment 11 HENDERSON WHITE ASSOCIATES 8 June 2004

  8. Instruments 158 Survey Questions from: • The Broadfoot and Ashkanasy 50 Organizational Culture Profile (OCP) • A commitment questionnaire 15 • A job satisfaction survey 36 • Individualism/Collectivism 16 • Two social desirability scales 36 HENDERSON WHITE ASSOCIATES 8 June 2004

  9. Sample Demographics • Mean age 43.3 years • Mean time in this job 16.3 years • Mean time in this hospital 6.1 years HENDERSON WHITE ASSOCIATES 8 June 2004

  10. Correlations -10-Factor Model Variable 1 2 3 4 5 6 7 8 9 1. Leadership -- 2. Planning .71** -- 3. Comms .68** .60** -- 4. Hum .65** .58** .76** -- 5. Indiv Dev .64** .58** .68** .64** -- 6. Structure -.18** -.25** -.37** -.30** -.28** -- 7. Job Perform .68** .64** .57** .57** .56** -.19** -- 8. Environmt .66** .59** .56** .50** .47** -.20** .55** -- 9. Innovation .59** .61** .65** .69** .60** -.32** .57** .50** -- 10. Soc of E .31** .41** .34** .37** .42** -.31** .38** .28** .45** 11. Comtmnt .54** .57** .54** .61** .59** -.23** .49** .49** .55** HENDERSON WHITE ASSOCIATES 8 June 2004

  11. 10 FactorModel HENDERSON WHITE ASSOCIATES 8 June 2004

  12. 7 FactorModel HENDERSON WHITE ASSOCIATES 8 June 2004

  13. Outcome variable/s Individualism Collectivism HumS LeadS Plan Soc of Entry In Dev Innov Struct SDE IM Measurement Model HENDERSON WHITE ASSOCIATES 8 June 2004

  14. Commitment • Strong belief in and acceptance of organisation’s goals • A willingness to exert considerable effort on behalf of the organisation • Desire to maintain membership of the organisation Mowday, Steers & Porter, 1979 HENDERSON WHITE ASSOCIATES 8 June 2004

  15. Culture vs Commitment Individualism -.320 SDE .294 Soc of Entry .365 Collectivism .151 Commitment .630 In Dev HENDERSON WHITE ASSOCIATES 8 June 2004

  16. Job Satisfaction FacetSatisfaction with • Extrinsic Rewards Pay, pay rises, other rewards • Supervision Immediate supervisor • Nature of work Type of work, tasks, pride meaningful • Op conditions Rules, procedures, red tape • Promotion Opportunities HENDERSON WHITE ASSOCIATES 8 June 2004

  17. EXR Soc of Entry SDE .358 .299 1.389 Collectivism .213 NoW .862 .995 PROM In Dev .881 Innov Job Satisfaction - Positive HENDERSON WHITE ASSOCIATES 8 June 2004

  18. -.764 Struct OpC -.690 -.588 Individualism -.320 -.974 -.532 EXR Soc of Entry -.213 SDE NoW -1.405 -1.988 HumS Job Satisfaction - Negative HENDERSON WHITE ASSOCIATES 8 June 2004

  19. Summary The importance of • growing and developing people • teamwork • socialisation process • managing expectations The changing nature of the psychological contract HENDERSON WHITE ASSOCIATES 8 June 2004