Tài liệu Organisational decision Making: Stakeholder Analysis & Culture ppt

Stakeholder Analysis Strategic management is effective only when resources match stakholders needs and expectations and change to fit into a tubulent environment... Stakeholder Analysis

Organisational decision Making

Stakeholder Analysis

&

Culture

Stakeholder Analysis

Stakeholders - who are they?

 A stakeholder is anyone who has an

expectation regarding the behaviour or performance of an organisation

Stakeholder Analysis

 Strategic management is effective only when resources match stakholders needs and expectations and change to fit into a tubulent environment

Stakeholder Analysis

Who are typical stakeholders?

 Financial stakeholders e.g shareholders; investors; bankers; creditors etc

Stakeholder Analysis

Stakeholders & their expectations

Expectations Primary Secondary

Owners Profit Added shareholder valueEmployees Pay Working conditions

Customers Quality Price

Creditors Creditworthiness Payment on time

Suppliers Payment Long-term relationship

Community Safety & security Contribution to comm.

Government Compliance Improved competitiveness

Stakeholder Analysis

 Stakeholder analysis represents the political context within which organisations

function

 For any given strategic objective to be

achieved the expectations of the

stakeholders must be met - especially those stakeholders with substantial power and

interest in the organisation

Stakeholder Analysis

A word on culture:

 The culture that exists in an organisation - sometimes referred to as - “the way we do things around here”- is in some way a

reflection of the historical relationship that has been established between the various stakeholders

Stakeholder Analysis

The Power/Interest Matrix

 This assesses the cultural fit: whether the political/cultural situation is likely to

undermine the adoption of a particular

strategy

Keep Informed

Keep Satisfied

Key Players

Stakeholder Analysis

Sources of Power: within organisations

 Hierarchy: formal power

 Influence: informal power

 Control of strategic resources

 Possession of knowledge

 Control of the environment

 Involvement in strategic implementation

Stakeholder Analysis

The Mission Statement:

 Embodies the interests and expectations of major stakeholder Should act to link the internal

resources of the organisation and its competences

to the external environment.

 Ideally it balances conflicting expectations, but often reflects the expectations of the most

powerful group E.g Abbey National; Kwik Fit.

What is “culture” as applied to organisations?

 The “feel” of an organisation.

 The “way the organisation operates”

 What is it like from an employees point of view,

or a customer, or supplier?

 What are the “values” of the organisation?

 These are all vague, but absolutely critical to the organisations success.

Culture – Charles Handy

The “culture” of an organisation develops from:

 Its history

 Its size

 The technology it uses

 Its goals and objectives

 The environment in which it operates

Culture – Charles Handy

Four types of culture.

 Power culture – central

power source –

particularly relevant for

small owner managed

firms Sometimes likened

to a spiders web all

sources of power and

Culture – Charles Handy

Role culture – the temple

metaphor.

 Organisations are

structured along

functional lines with

clearly established lines of

Role Culture

Under what circumstances is a role culture beneficial?

 When the external environment is highly stable - the market does not change and competitor behaviour is predictable.

 When the internal environment is also stable - the tasks undertaken are easily defined and the desired outcomes predictable

 Employees are expected to do no more and no less than that expected of them.

 Not a “learning organisation”.

How relevant is this to retail banks, give examples?

The “matrix” structure

The thicker lines represent the sources of power, usually based

on key areas of expertise relevant

to the task.

Task Culture

Characteristics of a task culture organisation.

position.

importance of its “people” rather than its “systems”.

Task Culture

What are the strengths and weaknesses of a task culture based organisation?

learning organisation suitable for an unstable

external environment.

wasteful, difficult to manage and control, danger of

“mavericks” “loose canons”.

In what ways is this relevant to retail banking?

Person Culture

 Rare in business - the

organisation structure is

largely irrelevant - each

individual within the

organisation has their

own personal objectives

and targets This

Organisational Culture

The “cultural web” (Johnson & Scholes 1991)

-organisation culture can be understood and defined through a web of inter-related formal and informal structures and relationship that exist internally and externally to the organisation.

Cultural Web

Stories Symbols

Power structures

Organisation structure

Controls

Rituals &

routines Paradigm Johnson &

Scholes (1991)

Cultural Web

What would the cultural web of retail banks have looked like in the 1980s?

promoted for great failures or successes - the

“heroes” and “villains”

size of silver coffee tray and office according to

status, branch layout separating staff and customers

Cultural Web

 Power structures - formal: regional directors,

managers, assistant managers etc informal: a long

serving “Mafia”, “the old-boy network”.

 Organisational structure - hierarchical, one-on-one reporting, autocratic, strict job grading.

 Controls - heavy, standardised manual procedures,

branch inspectors.

 Rituals & routines - follow the procedures, do not step out of line, grading & promotion rituals, mortgage relief.