Organisational Culture in a Corporate World Free Essay Example

Organisational culture can be defined as ” the collective programming of the mind that distinguishes the members of one organisation from another” (Hofstede,2005,282). An organisation’s culture, however is also influenced by all the persons that interact with it ( customers, media, authorities).

In BP’s case (one of the five largest oil companies in the world and United Kingdom’s largest corporation, being familiar to most people due to their 16 400 service stations around the world) culture was negatively influenced by a crisis :the tragic oil spill which took place in the Gulf of Mexico, killing 11 people and causing severe damages to the environment .

This event determined the beginning of a long and difficult process, which might be called “a catalyst for change”.

Because “culture change” means more than new name, logo, uniforms or slogans, and they “are the most superficial level of culture” (Hofstede,2005,312), this report will examine what measures have been taken and what others might be successful in order to return to normality.

As an overall view, “the culture of an organisation refers to the unique configuration of norms, values, beliefs, ways of behaving and so on that characterise the manner in which groups and individuals combine to get things done”( Brown,1998,7).

Hofstede argues that “organisational culture represents the psychological assets of the organisation that predict its material assets in five years’ time” (2005,309); however, previous experience shows that the culture itself needs good management in order to succeed. Regarding the definition for ‘culture’, the main conflict happens between those who claim that any organisation has a culture and those who say that, actually, any organisation is a culture.

For example, Pacanowsky and O’Donnell-Trujillo, argue that ‘Organisational culture is not just another piece of the puzzle, it is the puzzle'(1982,126) while Drennan suggests the opposite, that culture is ‘how the things are done around here.

Is what is typical of the organisation, the habits, and the prevailing attitudes’ (1992,3). In this report, BP’s view is closer to Drennan’s approach because their culture change is a long term process, which involves new values, aims, employees or future plans.

Typologies of culture

Considering the typologies of culture, identified by Handy, “the task culture”, which might be relevant for BP, ‘develops in organisations which are aware of the importance of teamwork in delivering projects; this is a team culture where work is considered to be the enemy that everybody fears’ (Brown,1998). In addition, it is very adaptable and flexible, groups being formed for a specific purpose and after that reformed, continued or abandoned.

As a drawback, all the organisations included in this typology ‘rely a lot on the professionalism of their staff’ (Brown,1998). From a different perspective, after researching numerous companies, Deal and Kennedy have identified four generic cultures, including the “bet your company” culture, which seems the most appropriate for BP case study:”These cultures exist in environments where the risks are high and the feedback on actions and decisions takes a long time” (Brown,1998,70).

Another characteristic of the organisations belonging to this type of culture is that they ‘invest huge amounts of money in important projects, the success or failure of which usually taking a long time to ascertain’ (Brown,1998). “Bet your company” culture is usually encountered in big companies, whose employees respect authority and behave in a responsible way, thinking about the future. However, a disadvantage might be that the slow-feedback system can bring certain problems and difficulties.

Socialisation

Organisation socialisation “refers to those processes by which participants learn the culturally accepted beliefs, values and behaviours, so that they are able to act as effective members of the group”(Brown, 1998, 57). It involves three stages: separation rites, which ‘separate individuals from their previous experience’ (Brown,1998), the transition rites, which “reinforce the unlearning of previously held work norms”(Brown,1998,57) and the rites of incorporation, which “inform new recruits that they have been accepted and what their new responsibilities now are” (Brown,1998,57).

Comparing the way in which organisations manage “enculturation” results that there are two different perspectives: on one hand companies “make extensive efforts to construct formal socialisation mechanisms… induction courses, training programmes and mentoring systems”(Brown,1998,57) and on the other hand, ‘most organisations acknowledge the advantages of informal socialisation processes, in which new recruits learn from their peers’ advice and guidance’ ( Brown,1998).

Culture change

Alvesson claims that “Managing culture is often equated with changing culture. Culture is the frequently focused because existing ideas, beliefs, values and meaning are viewed as problematic and need to be transformed” (2002,174), but, at the same time, ‘culture is inert and extremely difficult to change; people have the impulse to stick to their habits and values, which have already become a lifestyle for them'(Alvesson,2002). Analysing Schein’s life-cycle model, there are three phases of development: the organisational midlife phase, as Brown states, “is well-established and faced with complex strategic choices concerning growth, diversification, and acquisitions”(1998,131).

In addition,” the culture of the organisation is now formed and deeply embedded in its routines and structures”(Brown,1998,131). Mechanisms of change Schein identifies several mechanisms of change, one of the most important being “Managed ‘revolution’ through outsiders”. In this case, ‘organisations go through tough times, which are perceived to be crisis’ (Brown, 1998). Then, “outsiders may be brought in to fill important positions on the grounds that the organisation needs to be more professionally managed”(Brown,1998,129).

Due to the fact that these change mechanisms may happen at the same time, “managed evolution through hybrids” is also relevant. Opposite to the mechanism mentioned above, this one is not about bringing new members of staff, but “selecting for key jobs those existing members of the old culture who are most sympathetic to the new order the leaders wish to create”( Brown,1998,129). Looking from a different angle, the “Turnaround” mechanism could be useful because it requires ‘leadership skills and the necessary power in order to imbed a brand new culture’ (Brown,1998).

The importance of culture is emphasised by Alvesson: “Culture is highly significant for how companies and other organisations function: from strategic change, to everyday leadership and how managers and employees relate to and interact with customers” (2002,2). Methodology In the preparation stage, there was established an overall view over the Beyond Petroleum study, general information gathered from discussions with peers, television, radio, followed by some personal reflections which helped building a personal view over the issue.

The second stage, research, was only secondary from a variety of sources such as: British Petroleum Annual Review 2010, BP website, internet databases (Fuelfix, Ceraweek) or newspaper articles from PR Week, The Independent or The Telegraph. This facilitated a deeper understanding and lead to the third phase, the analysis which consisted of an attempt to apply theory on facts regarding BP culture change and to suggest some appropriate solutions for solving the crisis.

Results Background information

The pioneer of the Middle Eastern oil industry, BP discovered oil in Iran before World War I and eventually became involved in all aspects of the oil industry, from exploration to marketing. By the mid-1990s, it was producing over 1. 2 million barrels of oil and 1. 5 million cubic feet of natural gas every day. BP is familiar to most people by virtue of its more than 16,400 service stations around the world, but it also has significant interests in oil exploration as well as production of chemicals and plastics. “(www. fundinguniverse. com)