3 Reasons Why Culture is So Important within Organisations

Culture comes up a lot in business and organisations, especially in the academic side around the subject. Despite this though, many people are ok with just accepting a business culture and going along with it, believing that once a culture has come into play, it can’t be changed. Culture is one of the main reasons that companies fail. Even with a great idea, a culture can cripple an organisation from the inside out. In today’s article, I would like to discuss the 5 reasons why culture is so important. Having the Right People It can take years to acquire a team of the right people. Yet that team could ultimately be the failure of the business, because it doesn’t fit together, the culture doesn’t work. Let’s use a football team as an example. Real Madrid and Barcelona of late are the perfect examples. Real Madrid have always been seen as having best players in the world, they spend millions and millions getting these players so that they can compete, but then Barcelona beat them, because they still have great players, but they have built a team… It is exactly the same in businesses around the world. The best companies don’t necessarily always have the best employees, but they have employees who fit with the rest of the group and work well together. Projecting a Brand Image People often don’t think of this, but a culture within an organisation can be a deciding factor of what kind of brand image is projected to people outside of the company. Take Google for example, a few years ago they were gaining a...

The Organisational Domain

The Organisational Domain Definition: The organisations chosen field of action, the part of the environment which they choose to be vital to their company, so if that part changes, they must react. It is the area which the organisation will sell its products and services, in a way their niche (even though it may not be that small). It is said that there is ten different sectors which make up the environment for an organisation, each of which affect different organisations in different ways. These are shown below; Industry Raw Materials Human Resources Financial Resources Market Technology Economic Conditions Government Sociocultural International A good way to remember these is to make an anagram, such as ‘FISH M’ TIGER’  diagram which shows these off quite well is the following; The above sectors are known as the Task Environments and General Environments, depending on how that certain sector affects the organisation in question. Task Environments These are sectors which an organisation will interact with directly and therefore have a direct impact on the company itself. This includes the sectors; Industry Raw Materials Market Sectors Human Resource International Sectors General Environment These are sectors which an organisation will interact with indirectly, not directly every day, but it will indirectly influence the firm. The sectors which are included are the following; Government Sociocultural Economic Conditions Technology Financial Resources Sector More on This Subject To delve in deeper to this topic we recommend the following articles from MyHRMBook.com; An Organisation’s Environment and the Uncertainty this Brings The Culture Created due to an Organisation’s Environment The Resources Available due to an Organisation’s Environment We also suggest...

Conducting the Appraisal Interview

Appraisal Definition: An appraisal is the act of assessing an employee or a member of a team. These are normally taken place within an interview and are a terms of analysing the performance of that employee. From the analysis employees are normally given advice on how to improve, which they can use to make aims and objectives to build upon until the next appraisal interview occurs. Step 1: Prepare Preparing for the interview is very important, having a prepared interviewer will make the interviewee more confident that the review of their performance is being done properly and this in turn will make them more likely to listen to advice given. To prepare for an appraisal the interviewer needs to make sure there are no distractions, by removing the phone etc., make sure the room is set up so that the person being reviewed is comfortable, both mentally and physically. As well as this its important that the last appraisal done with this person is looked at, so that objectives which should have been achieved can be checked and its then possible to easily build upon what has already been covered over the years with this employee. It also means that the person being reviewed will be more confident that the reviewer is trying to do everything properly. Information should also be gathered from any of managers supervising this person. The most important aspect of being prepared is that both sides of the appraisal know what the point of the meeting is, what will be happening and why it will benefit them and the organisation. A good way to get to...

How to Approach an Appraisal

There are 6 main steps to approaching an appraisal situation, these are outlined below in bold, the extra text are some notes to help understand what to do and what not to do. Starting the Appraisal Good News First Vs. Bad News First Handling the Bad News – Criticising Make sure to note what they did well, adding confidence, but including the criticism Set objectives and ways the person can improve, so that they have something good to take from it Make the person think about themselves and work out the problem. If they understand what is wrong with themselves, they will be able to change it easier. Getting Information – Asking the Right Questions Don’t go back over points, as the employee will think the review is going in circles. Ask questions until the correct answer is given. Don’t use questions that lead to an answer Ask open questions Don’t show emotions Probe and check the employee to make sure the correct information is being given Listening to the Answer Summarising Let the employee do the summary, to make sure that they have taken in the review and they feel OK with what has been said. More on This Subject To delve in deeper to this topic we recommend the following articles from MyHRMBook.com; How to Conduct an Appraisal Interview How to Plan an Approach to an Appraisal Interview How to Set SMART Goals to Improve Performance Management We also suggest you read these articles from around the web; Six steps for performance appraisal success Performance Management Process Checklist Key Learning Points To keep it in you head whilst...

Appraisals and Performance Management

Appraisal Definition: An appraisal is the act of assessing an employee or a member of a team. These are normally taken place within an interview and are a terms of analysing the performance of that employee. From the analysis employees are normally given advice on how to improve, which they can use to make aims and objectives to build upon until the next appraisal interview occurs. Performance Management Definition: To keep an organisation working as effectively and as efficiently as possible, performance management is used. It is a process where expectation and objectives are set by both the employee and employer, and every certain amount of time, these are looked at and analysed to see where improvements could be made. The annual appraisal in an organisation is a very important time of the year, it allows employees to talk to their bosses, learning and developing their skills and also it allows the bosses to find out how objectives have faired and whether everyone has performed to a high enough standard. Not only does it help with performance, but it is a way to interact and make employees feel more motivated, as it gives them an opportunity to talk to people higher up than them. Its a way of sharing understanding and building upon experiences. Objectives of an Appraisal The following defines why the need of appraisals is there and why we use them so often in today’s organisations. To help see what individuals skills and potential is, allowing a company to build a database which they can look into and see people who are right for the job, quickly, helping efficiency....

Four Principles of Culture Activity

Culture Definition: Cultures in organisation is defined by how the organisation is run, how the personalities within the organisation interact with each other and also how the structure of the company is set out. Four Principles of Culture Activity Definition: There are four main features which help a company look to see which type of culture it should have in its organisation. These are; Steady State – This included most of the company, including the finance department, human resource department and offices. This is where the job is a routine and can be planned out, unlike say the management and marketing departments who will always have to be following change and reacting to keep up with competitors. Innovation – This includes things which change the company, so it can involve anything which cause disturbance within an organisation, such as planning, changes of budgets, research and development and even the marketing of a business. Crisis – This is mainly the management, where they have to be aware of change and quickly react to crises, whether that is a big competitive move, or a natural disaster. Policy – The way the organisation is run, the standards it has to go by and the rules it makes. Working out principle activity an organisation is allows us to see which type of culture would be the most efficient for an organisation. As ever though, it may not be the case in all situations. It needs to be remembered that flexibility in culture will help a lot, so an organisation can have different cultures in different areas, giving all of the employees what they need...