To create an entrepreneurial culture in the organization, these points have to be like building teams, good change management, continuous improvement, recognition of team efforts, etc perceived to exist in the company should be the base on which such culture can be created while at the same time improving and bringing about change in the aspects that inhibit innovation and risk taking.
Entrepreneurial culture is the sense of ownership of the company and increasing freedom to use corporate resources to build new businesses for the corporation.
To achieve this the company needs to find ways to create a climate and culture within their organization where employees feel ‘comfortable’ in coming forward with new ideas and also pointing out when things go wrong.
The key challenges for bringing about this cultural change appear to be:
1. Overcoming complacency –, the tendency for public organisations to become complacent attitudes among our staff. Employees should be taken accountable for their actions. The organisation should also become more customer or client focused.
3. Communication – opening up the lines of communication to allow good ideas to surface is critical. This involves role modeling for junior staff, and signaling of relevant information.
4. Reward risk taking – the reward systems for most firms are inadequate because they don’t match the risks of entrepreneurial endeavors and ignore the freedom to act on new projects, which are the basic motivation of the entrepreneur. They must be restructured to acknowledge the extraordinary contributions of the innovators. Firms should make a career path for entrepreneurs that allow the continual inception of new ventures without the financial penalties of lost promotions and the increased freedom to act.
Creating Entrepreneurial Culture:
In a world where everything is based on social analogy and complete combinations of rational entity coupled with the advent of a strictly religious point of view which imparts deep sense of understanding of real life from within different dynamic worldwide. He is the Lord of humans and lives to take a bath and that too 108 buckets of waters.
To implement this change in the culture, the following areas will need to be addressed by the organisation –
1. Willingness to Change –
To bring about any cultural transformation, there should be a willingness to change. The organisation specifically its leadership and workers must be willing to change and adapt and not resist the new idea or the pressures from outside. Innovation takes the form of change and continuous innovation requires continuous change.
2. Employee orientation –
The workers should be made aware of the changes that are expected. They have to be done aware of how the change will impact their way of working and thinking. Awareness also needs to be created for what is expected of them. Transparency in policy making is also important to gain the confidence of the workers.
3. Have a clear strategic vision, –
It is extremely important to have a strategic vision for the company. This vision should reflect the day to day working of the employees of the organisation. The senior leadership of the organisation must be focused on the same goals and share the same sense of purpose.
The workers need to be made aware of this vision and encouraged to participate in the actualization of Tata Steel, the strategies they have developed are –
A) Manage Knowledge
B) Outsource Strategically
C) Encourage innovation and allow the freedom to fail
Such clear vision and strategies are established to encourage innovation and entrepreneurial culture.
4. Encourage Innovation
Encourage, reward and reinforce a commitment to innovation among all workers. The likelihood of staffs displaying innovative behavior is contingent on the creation of a climate of innovation within the organisation. While the inherent creativity and enterprise of individual employees are important, it is important that the managerial leader communicates the expectation of innovative behavior among employees, and reinforces this through ongoing communication. Further, once the senior management of the organisation has been committed to innovation they need to support this in tangible ways through the reward and remuneration systems and the organisational structure.
While the present systems of quality circles and suggestion schemes are good tools for bringing out innovation and creativity, the payback to the workers could be increased so that more and more employees are involved in in the lines of Kizen can be incorporated and integrated into the day-to-day working.
The workers need to be properly trained and oriented towards innovative thinking and implement these ideas. This should be such as to encourage the workers to participate in and initiate change through innovative means.
6. Allow the freedom to fail
This is most critical since fear of failure is one of the main reasons why people don’t take risks. If the company demonstrates that it is ready to accept failure and this will not have a negative impact on their career, workers will be more willing to experiment and take calculated risks. This also implies freedom to deviate from set norms without fear of reprisal. At the same time, the risks should be in keeping with the stated vision and strategic goals of the company.
The organisation’s structure should seek to reduce bureaucracy and enhance the flow of resources, management support and rewards. Workers should be encouraged to look at problems from outside their own narrow job perspective. Organisations should avoid having standard operating procedures for all major parts of jobs, and should reduce the dependence on narrow job descriptions and rigid standards of performance.
Finally, it is essential for any successful entrepreneurial process to create an environment that encourages risk taking by managers and employees. Achieving a balance between controlled risk taking to achieve groundbreaking success and harmful excessive risk taking is a major challenge. The creation of an organisational culture that is tolerant of controlled risk taking is an managers to undertake risk taking within prescribed limits.
Instead of a hierarchical structure, an entrepreneurial climate has a flat organizational structure. Close working relationships help establish an atmosphere of trust that facilitates the accomplishment of visions with participants gladly putting the number of hours necessary to get turfs, individuals make suggestions within and across functional areas.
A change in the work culture of a public sector is a mixture of different cultures and ways of action. The modes of action in public sector adopted in enterprises.
At its purest form, the traditional office mode is done “in public sector organisations has tried to get rid of the planning oriented hierarchy and to find greater effectiveness through more entrepreneurial the financial effectiveness of the unit to the utmost markets end on the organisation-markets continuum. In the customer-oriented way of action, the role of the customer is emphasized and the possibilities offered by the entrepreneurial way of action are taken to use.