Organisational Culture Articles
Attraction and Retention – Navigating the Perfect Storm
The recently released HAYS Salary Guide points to a “perfect storm” on the horizon for employers. The survey highlights 3 factors which will contribute to the storm. These are:
Positive Hiring Intentions – most employers are planning on hiring more people
Widening gap between candidate and employer salary intentions – most candidates expect more than employers are prepared to pay
Skills shortages – 54% of employers in Australia are experiencing difficulty in filling critical positions. This number is significantly higher in WA and QLD. Australia is ranked fourth out of 39 countries for skills shortages in critical roles.
Activity Based Working Drives Attraction and Retention
The new trend in office design is referred to as Activity Based Working (ABW). This concept has been developed based upon the idea that people will be more engaged and satisfied in their jobs by removing hierarchical structures from the workplace. Hierarchy is removed from the workplace by removing symbols of seniority and creating an environment which fosters collaboration.
Activity based offices are designed to give people the freedom of how to work, where to work and when to work. There are no assigned desks and in most cases no private offices for executives. Team members are also encouraged to work remotely.
How much is Your Reputation worth?
As a shareholder in News Corporation I have followed the News of the World phone hacking scandal with much interest. Many analysts would argue that News of the World represents less than 1 % of the News Corporations profits and that what happens in this small part of the Murdoch empire should have minimal (if any impact) on the overall performance of the organisation.
These analysts are wrong; the share price of the Organisation has fallen by almost 20% since the scandal started and has wiped billions of dollars off the company’s market value. So how can it be that what happened in a tiny division of News Corporation has had such a monumental impact on News Corporation’s overall share price?
The double-edged sword of being “fair”
There is a body of evidence theorizing on what makes a good manager. However, how a manager is perceived has dramatic effects on their career development, regardless of whether their management style is correct, unorthodox or plain wrong. How you are perceived by specific people within your company can also have dire effects on your promotion opportunities. New evidence suggests that you will be more respected by your peers and senior management if you are perceived as being a ‘tough’ manager verses a ‘fair’ manager. This hidden cost to exhibiting management fairness suggests that it is the opinions of your peers and upper management that could hinder your chances for promotion and career progression. This however does not suggest that managers can through away all scruples in order to be a successful manager.
The AFL’s move towards a Free Market
The AFL is one of the most regulated employment markets in the world. Recent moves by the AFL Players Association towards “Free Agency” mean that some of the restrictions on player transfers are now being removed. This effectively is a move towards a free market. In spite of these changes salary caps and draft concessions still structurally drive competition equalisation and restrict player movement.
The AFL has placed artificial barriers in the market to ensure that the rich clubs cannot simply go out and “buy” the best players. The AFL’s number one objective is to develop their brand. They do this in part by creating a structure that creates an even competition. A more even competition makes for closer games. Closer games enhance the popularity of the sport and this drives profitability.
Influencing Organisational Culture
Naturally, having a strong culture is great competitive advantage; indeed the strength of corporate culture can significantly affect corporate policies such as employment, managerial and financial structures. Organisational culture directly influences the likelihood of success for a company’s change strategies. As evidence suggests, team members are more inclined to embrace change when the organisation’s culture is aligned with the mission and goals of that company. (Ref: Edgar Schein, The Corporate Culture Survival Guide, California: Jossey-Bass, 1999)