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‘The Effective Implementation of OGW within Educational

Organizations: a Process of Cultural Adjustment’

Field of Research:

Management Control in Educational Organizations

July 2014

Author: J. D. Douma s1714783

Supervisor: Drs. D. P. Tavenier Co-assessor: Drs. A. R. Abbasi

University of Groningen (RUG) MSc Business Administration

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‘The Effective Implementation of OGW within Educational

Organizations: a Process of Cultural Adjustment’

Abstract

This study analyzes the effect of organizational culture on the effective implementation of a new management control system (MCS) within an educational setting. Organizational culture was measured using Johnson’s Cultural Web (1992), combined with a stage of cognitive mapping to preserve the richness of the data. The results herein reported add to the discussion of accomplishing organizational change within a context of relatively fixed cultural beliefs and assumptions. The analysis supports two major conclusions: the current organizational culture at the secondary educational organization is not in line with the desired cultural paradigm. Secondly, to overcome potential resistance to change, various instruments may be implemented to facilitate the effective implementation of the new management control system.

Keywords: organizational culture, management control system (MCS), organizational change,

resistance to change, educational organizations, cultural adaptation, Opbrengstgericht Werken (OGW).

Research theme: Management control in educational organizations Supervisor: Drs. D. P. Tavenier

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INTRODUCTION

In previous studies, it has been recognized that the effective management of organizational change is of utmost importance in order to survive and succeed in today’s highly competitive and continuously changing environment (Luecke, 2003; Rune, 2005). However, nowadays, a failure rate of around 70 percent of all initiated change programs has been reported (Balogun & Hope Hailey, 2004). This low rate of success emphasizes the necessity of careful and well-thought approach to the management of organizational change (Burnes, 2004).

Currently, multiple educational organizations are forced into organizational change and development (Vermaas, 2013). The main argument for the initiation of these organizational changes can be found in the new legislation imposed by the governmental inspection centers (Vermaas, 2013). These new mandatory guidelines aim to increase the performances of students, teachers, their supervisors, and the educational system in general (Vermaas, 2013). To achieve the stated objectives, a more preventive control system has been developed by the governmental inspection departments to monitor and supervise educational organizations (Vermaas, 2013). This new MCS, called ‘Opbrengstgericht Werken’ (OGW), aims for the development of predetermined performance targets, the systematic and cyclical gathering of data, the subsequent analysis and interpretation of the data, which finally influences the achievements and subsequent behavior of management and employees (Vermaas, 2013). By 2015, at least 50 percent of all secondary educational organizations need to have implemented OGW, and by 2018 at least 90 percent of all secondary schools are obliged to take advantage of OGW as a management control system (Vermaas, 2013). These national developments, in combination with the continuing technological change and the intensifying competition for scarce educational budgets, has forced educational organizations into change and the development of more formalized management control systems (Vermaas, 2013; Merchant & van der Stede, 2007).

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4 amount of uncertainty and responsibility. Especially for teachers, acting as professionals within their own fields, always enjoying a considerable amount of autonomy, it seems plausible that the new system could result in internal conflicts and resistance to change (Heracleous & Langham, 1996). Furthermore, it has been argued that at least part of the employees do not appreciate the expanded range of tasks and the increased responsibilities (Vermaas, 2013). However, to effectively implement an organizational change program, the norms and beliefs of all organizational stakeholders should be in accordance (Heracleous & Langham, 1996). A strong and functional organizational culture prompts employees to work together in a synergistic manner to achieve the stated goals and objectives of the organization (Merchant & van der Stede, 2007). In relation to the previous statements, the research of Bamford and Forrester (2003) recognized the potential need to discard previous organizational behavior and attitudes, before being able to effectively implement new organizational practices. In addition, it has been stated that the current organizational culture and structures can both act as sources of inertia, impeding the change process, or as incentives, stimulating the effective implementation of the organizational changes (Burnes, 1996). Therefore, it could be argued that the successful management of organizational change can be extremely difficult and time consuming, due to the substantial influence of cultural beliefs and assumptions on individuals’ interpretations and actions, which effectively precludes them from open debate (Heracleous & Langham, 1996).

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5 The outcomes of this research can be valuable for several reasons. Firstly, the results may support the stated need to conduct a cultural audit and consider the cultural implications, before implementing the desired strategies and practices within the organization (Heracleous & Langham, 1996). Furthermore, the results may strengthen the close link between the implementation of new strategies and organizational culture, and therefore contribute to a more complete understanding of the dynamic processes with respect to the management of organizational change (Rune, 2005; Heracleous & Langham, 1996). Change management research could incorporate these outcomes in developing more practical and empirically tested models for the management of organizational change (Rune, 2005). From a managerial perspective, it could be stated that the outcomes of the current research could be used as a benchmark for initiating organization specific cultural audits. Furthermore, specific recommendations have been provided for the adaption of organizational culture in congruence with a change program, which can be used by management to shape their own organizational cultures in line with the designed objectives (Heracleous & Langham, 1996).

Based on the definition of the problem statement and the purpose of this study, the following research questions have been developed:

RQ1: To what extent does the existing organizational culture impede the effective implementation of a new MCS within an educational organization?

RQ2: Which requirements need to be satisfied (by management) to create and shape an organizational culture in congruence with the new management control system?

To outline and answer the research questions, the following sub-questions have been developed:

SQ1: How can the existing organizational culture be defined?

SQ2: What are the incongruences between the existing organizational culture and the desired organizational culture, in line with the objectives of the new MCS?

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THEORETICAL FRAMEWORK Organizational Culture

The literature on organizational culture has become overwhelming and diverse (McDonald & Foster, 2013). In general, researchers agree on the view that organizations operate not only within a cultural and social context, but that these organizations are also culture-bearing entities by themselves. However, not one, uncontested, definition of organizational culture exists (Kemp & Dwyer, 2001). By reviewing the literature, the author recognizes similarities and recurrent patterns with respect to the definition of organizational culture. Organizational culture refers to a set of important understandings that members of a community share in common (Sathe, 1983). Furthermore, it refers to the shared meanings, priorities and practices of a group (McDonald & Foster, 2013). Organizational cultures are built on shared traditions, norms, beliefs, values, ideologies, attitudes, and ways of behaving (Schein, 1984). These definitions of culture emphasize an integrative view, a unifying phenomenon, shared by all organizational members and refers to a certain ‘cultural consistency’ throughout the whole organization (Kemp & Dwyer, 2001).

Defining organizational culture in practice is rather difficult, since the underlying cultural assumptions are complex, often unquestioned and deeply buried within the practices and perspectives at play in an organization. Although these assumptions are implicitly understood by many within the organization, they are often hard to articulate (Johnson and Scholes, 1999). This definition of organizational culture might also explain why organizational cultures remain relatively stable over time, even while goals and strategies necessarily adapt to changing business conditions (Collins & Porras, 1994).

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8 However, especially during a process of organizational change, it can be desirable to shape a new organizational culture in line with the designed strategies and goals of the organization (Heracleous & Langham, 1996). In these situations, management could use multiple instruments to shape organizational behavior, both by using words and setting an example. Firstly, there should be visible, active and credible leadership with respect to the management of the change. Managers should emphasize what is valued in the organization and role model new behaviors that need to be institutionalized (Heracleous & Langham, 1996). Furthermore, involvement of the employees that will be affected by the organizational changes is of great importance, because it leads to a decrease in resistance to change and builds ownership of the process through participation (Coch & French, 1948). Thirdly, the sufficient and timely sharing of information is needed during a process of organizational change. The communication of a clear rationale for the change, the objectives, and the degree to which these objectives can be reached, influence the attitudes of the employees towards the change and stimulate a particular readiness to change (Armenakis et al., 1993). Moreover, sufficient resources need to be dedicated to the training and development of employees, who acquire new skills and knowledge requested for the successful execution of organizational tasks within a changed environment (Heracleous & Langham, 1996). Lastly, management may introduce new and aligned codes of conduct, effective group rewards, intra-organizational transfers and physical and social arrangement to facilitate the adoption of requested attitudes and behaviors (Merchant & van der Stede, 2007). These instruments of cultural control guide organizational behavior in the appreciated direction and facilitate the development of a strong and functional organizational culture (Merchant & van der Stede, 2007).

The Measurement of Organizational Culture

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9 examine organizational culture is the Cultural Web, developed by Johnson (1992) (Figure 1.1). The Cultural Web’s heart refers to what Johnson (1987) terms the ‘paradigm’. The cultural paradigm can be seen as a product of the taken-for-granted assumptions in an organization, often unquestioned by its members and deeply buried within the working practices of employees (Johnson and Scholes, 1999). The paradigm itself is influenced and formed through a web of cultural elements or ‘artefacts’. These cultural elements represent “the wider cultural context in which ‘the paradigm’ is embedded” (Johnson, 1992). The Cultural Web consists out of six cultural elements, which contribute to and help to sustain the cultural paradigm, namely: stories, rituals and routines, symbols, power structures, organizational structures and control systems (Johnson 1992).

Figure 1.1: The Cultural Web (adapted from Johnson, 1992)

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10 most visible cultural ‘artefacts’ are the symbols of an organization. Symbols signify a broader purpose and have special meaning for the members of the organization. Symbols cover a wide range of particular elements, such as: organizational logos, titles or the type of language and terminology commonly used within the community of the organization (Kemp & Dwyer, 2001). Power structures comprise the more structural elements of an organization and are closely related to the managerial groupings, and sequentially the division of power. Organizational structure is a cultural element closely related to the previous ‘power structures’. Organizational structures can be summarized by examining the degree of centralization, formalization, complexity, configuration and flexibility in the firm (Olsen et al., 1998). It is important to notice that organizational structures comprise the formal- as well as the informal structures present within the organizational entity. Finally, the sixth cultural ‘artefact’, control systems, indicates what is important to measure and monitor within the organization. Control systems are meant to influence the behavior of the members of an organization in line with the stated strategies and objectives, thereby focusing attention, activities and output orientation (Merchant & van der Stede, 2007).

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The Effective Implementation of a Management Control System

Management control is a critical function within organizations. Management control failures can lead to significant financial losses, reputation damage, poor decision making, legal sanctions, and possibly even to organizational liquidation (Merchant & van der Stede, 2007). Management control can be defined as “all the devices or systems managers use to ensure that the behaviors and decisions of their employees are consistent with the organization’s objectives and strategies” (Merchant & van der Stede, 2007, p. 5). The systems used to achieve these desired behaviors and outcomes are most commonly referred to as the management control systems (MCS) (Merchant & van der Stede, 2007). Management control systems are apparent in all kinds of organizations. In most cases the management control function is an integral component within the organizational structure, in conjunction with the processes of objective setting and strategy formulation. Knowledge of the objectives of an organization is indeed an important prerequisite for the design and implementation of any management control system (Merchant & van der Stede, 2007). The behavioral emphasis of management control systems is needed to solve the management control problems that arise due to a lack of direction, motivational problems, and personal limitations that employees experience. When employees do not know what is expected of them, it seems obvious that the desired behaviors are probably less apparent. Furthermore, because of the natural self-interested behavior of individuals, individual and organizational objectives do not always coincide. Finally, MCSs can be implemented to deal with the problem of personal limitations, which may arise due to a lack of relevant information or specific knowledge (Merchant & van der Stede, 2007).

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12 consequences of the actions they undertake. In this output oriented environment employees are empowered to execute those actions they believe will best produce the desired outcomes (Merchant & van der Stede, 2007). To effectively implement a results oriented management control system the following elements should be present within an organization: a process defining the relevant performance dimensions, performance targets specified for every performance dimension, a measurement of the actual performance on the stated performance dimensions and finally, the provision of rewards in congruence with the performances of the employees (Merchant & van der Stede, 2007). These characteristics, when present and internally accepted, indicate an effective implementation of a results oriented MCS.

The elements of a results control system are closely related to the PDCA-cycle. The PDCA-cycle, referring to the Plan, Do, Check and Act cycle, is a cyclical approach, used to integrate OGW within the teaching processes apparent at secondary educational organizations (Vermaas, 2013). The PDCA-cycle contributes to an organization that is more results-oriented. Therefore, the degree that the PDCA-cycle is implemented and accepted within the organization can be seen as an approximation of the effective implementation of OGW as a management control system (Vermaas, 2013).

Managing Organizational Change

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13 However, multiple theories and approaches for the effective management of organizational change have been constructed (Rune, 2005).

First of all, a process of organizational change can be defined according to the rate of occurrence (Senior, 2002). According to Rune (2005), three types of main characterizations are identified: discontinuous, incremental, and continuous organizational change. Discontinuous organizational change is triggered by major internal or external developments and is characterized by rapid changes in either strategy, structure or culture (Grundy, 1993). One of the suggested weaknesses of this approach is the plausible defensive behavior of employees and an inward focus of the organization, forcing new major organizational reforms (Luecke, 2003). Incremental change is supported by the view that organizational change is implemented best by successive, but limited, and negotiated shifts. In such a process of change, different parts of an organization treat one problem, related to one objective, per period (Burnes, 2004). Furthermore, defining organizational change according to the rate of occurrence, continuous change refers to the ability of the organization to change continuously, in line with the fast changing business environment (Burnes, 2004). Continuous changing organizations are specialized in monitoring, sensing and responding to internal and external requirements, focusing on small developments as an ongoing process of change (Luecke, 2003). Finally, the term ‘bumpy’ may be added as an additional category in relation to incremental or continuous change. Bumpy incremental or continuous change refers to periods of relative silence, succeeded by an increase in the pace of organizational change (Grundy, 1993). Table 1.1 summarizes the characterizations of organizational change in relation to the rate of occurrence:

Type of change:

 Discontinuous Change

 Incremental Change

 Bumpy Incremental Change

 Continuous Change

 Bumpy Continuous Change

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14 Furthermore, different approaches and theories have been developed when it comes to the manner in which an organizational change is initiated. Based on the research of Bamford and Forrester (2003), it may be concluded that planned and emergent change are the most significant and recognized approaches with respect to how change comes about. The planned approach to organizational change highlights the importance of recognizing the different stages which an organization has to pass in order to transfer from the current state into a desired future state (Eldrod II & Tippett, 2002). This approach to change, founded by Lewin in 1946, states that organizational change and the adoption of new behaviors can only be successful after the rejection of previous organizational behavior (Burnes, 2004). To conceptualize the process of organizational change, Lewin developed a three-step model, as a general framework for successful organizational change. The three steps involve the unfreezing of the present state, subsequently moving to the new state, and finally refreezing the new organizational state (Eldrod II & Tippett, 2002). One of the strengths of this model is the recognition of the need to discard previous behavior, processes, and of particular interest, organizational culture, before being able to effectively implement new organizational practices (Bamford & Forrester, 2003). This approach to organizational change recognizes the necessity of a certain ‘readiness for change’ before an organizational change program can be implemented successfully. Figure 1.2 gives an overview of Lewin’s three-step model (1952), as general framework to understand the stages of planned organizational change. To ensure the practical applicability of Lewin’s framework, Bullock and Batten (1985) extended the three-step model and developed a four-step model, dividing the process of planned change into an exploration, planning, action, and integration phase. It could be said that the exploration and planning phase is closely related to the unfreezing of an organization and incorporates the methods employed to ensure the successful initiation of a change process (Bullock and Batten, 1985).

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15 Although the planned approach to organizational change has proved its value and can be a highly effective framework for managing change (Burnes, 2004), multiple deficiencies with respect to the feasibility of this approach can be identified (Kanter et al., 1992). Firstly, it seems plausible that a planned approach to change is less applicable to situations which require timely and transformational change, instead of a more incremental and well-thought process of organizational development (Burnes, 2004). Related to the previous argument can be a situation of organizational crisis, requiring the immediate response of management. In these situations the creation of extensive organizational support and the involvement of the workforce in organizing the change is less appropriate, and more flexible and directive approaches to change are needed (Burnes, 2004). Furthermore, it has been argued that contemporary organizational change is more an open-ended and ongoing process than a set of sequentially structured and planned events (Burnes, 2004). This statement has been supported by Wilson (1992), indicating that a process of change can become too dependent on the management of an organization, when planning and structuring the whole change process in advance, while not fully understanding the outcomes of the implemented change mechanisms. Finally, one of the weaknesses of the planned approach, which should be taken into consideration, is the assumption that during the implementation of the change all organizational stakeholders agree on the proposed changes and are willing to adopt these new organizational practices (Bamford & Forrester, 2003). This assumption does not take into account the possibility of conflicting interests and inconsistent organizational behaviors and attitudes, which frequently can be very dangerous to, and adversely influence the process of organizational change (Burnes, 2004).

In reaction to the stated deficiencies of the planned approach, the emergent approach towards the management of organizational change has been developed (Rune, 2005). The emergent approach emphasizes the continuous and open-ended process of organizational development as an answer towards the ever changing organizational surrounding and conditions (Burnes, 2004). Since the organizational environment evolves so frequently, it is impossible for management alone to plan and execute the change process effectively (Kanter et al., 1992). Therefore, the emergent approach aims to steer the change process from the bottom up, instead of a top-down approach and envisions organizational change as rather unpredictable and as a continuous learning process (Bamford & Forrester, 2003; Altman & Iles, 1998).

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16 change emphasizes the necessity of a deep understanding of organizational culture, structure and strategy (Burnes, 1996). The current organizational culture and structures can both act as sources of inertia, impeding the change process, or as incentives, stimulating the effective implementation of the organizational changes (Burnes, 1996). The emergent approach, therefore, mainly focusses on a clear understanding of the organizational issues arising from the change program, aiming for a particular ‘readiness to change’ and facilitating all processes needed for the effective implementation of the change (Rune, 2005).

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17 Kanter et al.’s Ten

Commandments for Executing Change (1992)

Kotter’s Eight-Stage Process for Successful Organizational Transformation (1996)

Luecke’s Seven Steps (2003)

1. Analyze the organization and its need for change

1. Mobilize energy and commitment through joint identification of business problems and their solutions 2. Create a vision and a common

direction

3. Developing a vision and strategy

2. Develop a shared vision of how to organize and manage for competitiveness

3. Separate from the past

4. Create a sense of urgency 1. Establishing a sense of urgency

5. Support a strong leader role 3. Identify the leadership 6. Line up political sponsorship 2. Creating a guiding coalition

7. Craft an implementation plan

8. Develop enabling structures 5. Empowering broad-based action

9. Communicate, involve people and be honest

4. Communicating the Change vision 10. Reinforce and institutionalize

change

8. Anchoring new

approaches in the culture

6. Institutionalize success through formal policies, systems, and structures 6. Generating short-term

wins

7. Consolidating gains and Producing more change

4. Focus on results, not on activities

5. Start change at the periphery, then lead it spread to other units without pushing it from the top

7. Monitor and adjust strategies in response to problems in the change process

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18

Organizational Change and Culture: Adaptive Capabilities or Resistance?

A coherent and distinctive organizational culture contributes to the effective functioning of an organization and can ensure that the various parts of an organization are all working together in a synergistic fashion (Kemp & Dwyer, 2001). However, as stated in the research of Kemp and Dwyer (2001), “organizational cultures can be very resistant to change”, and this rigidity of organizational culture may impair the adaptive capabilities of an enterprise. Since the culture of an organization has an important influence on the effectiveness of implementing a new strategic MCS, an analysis and recognition of the existing organizational culture should be the initial step in a process of organizational change (Brown, 1998; Heracleous & Langham, 1996). This critical step has also been recognized in the change management literature, stating the importance to reconsider and possibly even discard previous organizational behavior and attitudes, before being able to successfully implement a new change program (Bamford & Forrester, 2003; Bullock & Batten, 1995). The initial analysis of an organizational culture might indicate a discrepancy between the organizational behavior and attitudes currently visible within a firm and the organizational culture that is indispensable for the effective implementation of the designed strategies and objectives (Brown, 1998). An organization at change should recognize this potential inconsistency between the current organizational culture and the new strategic development program being implemented, to overcome potential resistance to change and initiate appropriate instruments to shape organizational behavior (Heracleous & Langham, 1996). Furthermore, it has been confirmed that employees are more receptive to change if they understand the need for change and experience that their views were taken into consideration by management initiating the development program (Kemp & Dwyer, 2001).

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19 comparing it to a predetermined set of ‘desired cultural elements’, in line with the strategic implications of a change program. The next paragraph presents a theoretical overview of these ‘desired cultural elements’ that could foster a process of change within an organization. More specifically, these cultural elements contribute to the effective implementation of an output oriented management control system and can be used as a benchmark to compare an existing organizational culture to a desired cultural paradigm (Vermaas, 2013).

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Figure 1.3: A theoretical overview of the ‘Desired Cultural Web’

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21 confirm this need for internal support and readiness to change (Eldrod II & Tippett, 2002; Rune, 2005). It seems acceptable that organizational culture could be a potential source of inertia, impeding the adaptive capabilities of an organization (Burnes, 1996). Therefore, it could be stated that an analysis of the existing culture of an organization should be the initial step during a process of organizational development (Brown, 1998; Heracleous & Langham, 1996). The current research recognizes this suggested approach to the effective management of change and studies the existing culture of an organization, using Johnson’s Cultural Web (1992). Subsequently, the existing culture is compared to the ‘desired cultural paradigm’ to identify possible incongruences. A discrepancy between the current organizational culture and the desired attitudes and behaviors apparent within the organization should be recognized, to overcome potential resistance to change, and to initiate appropriate instruments to shape organizational culture (Brown, 1998; Heracleous & Langham, 1996). The present study, therefore, will incorporate these suggested approaches to the management of organizational change, and design appropriate instruments for management, to create and shape an organizational culture in congruence with the new management control system.

Based on the elaborated theories and approaches for the successful management of organizational change, the following conceptual model has been developed (Figure 1.4). This model will be used as a structuring framework to answer the proposed research questions.

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RESEARCH METHODOLOGY

The research herein reported involved a qualitative exploratory case study (Cooper & Schindler, 2006; Yin, 2003), a method that provides tools for researchers to study complex phenomena within their original context (Baxter & Jack, 2008). This approach to the research became a valuable method to analyze the current change program, cultural difficulties, and the development of suitable interventions. The strength of this approach lies, amongst others, in the close collaboration between the researcher and the participant, while enabling the participants to elaborate on their stories (Crabtree & Miller, 1999). Through these narratives participants are able to describe their views of reality, enabling the development of a clear perspective on the organizational context (Lather, 1992). By executing an exploratory case study the researcher aimed to understand and analyze the process of change and the cultural difficulties apparent at the unit of analysis in more detail and in depth.

The first procedure for being able to collect the necessary data, was the selection of the organization under investigation. The selection of the ‘unit of analysis’ was built on two criteria. The first criteria demanded a professional organization attempting to implement a more formalized MCS. This criteria allowed the researcher to measure the current organizational culture and employees’ attitude towards the change program. The second and most important criteria for selecting the current unit of analysis was the access to relevant information. Interpretive research and especially the method of the exploratory case study permit depth of perspective. Thereby allowing a rich understanding of the organization under change (Cooper & Schindler, 2006). However, access to relevant information sources can become extremely difficult when conducting this type of research (Granlund, 2003). Finally, a holistic single case study was executed, supported by the uniqueness of the organization (Yin, 2003) and the relative short time frame for conducting the research.

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23 More specifically, the current research took advantage of the technique of maximum variation sampling. This method emphasizes the need to capture a wide range of perspectives from each key section of the organization, related to the field of interest (Cooper & Schindler, 2006). The main argument for selecting this sampling method is to gain insights into a phenomenon by investigating it from multiple angles. Therefore, supporting the researcher to identify common themes that become evident across the sample (Cooper & Schindler, 2006). This technique facilitated the objective to develop a clear understanding of the existing organizational culture at the unit of analysis. Furthermore, the respondent’s length of service at the educational organization was recognized during the selection of the interviewees. It has been agreed that there exists a positive relationship between the length of service and the degree to which an organizational culture has been internalized and accepted by the employees of an organization (Kemp & Dwyer, 2001). Table 1.3 presents an overview of the selected respondents, incorporating the various positions of the interviewees and their length of service.

Field of

specialization:

Length of service:

≤ 2 years 2 – 5 years 6 – 10 years ≥ 10 years

Geography x French language x History x English language x Biology x Physical education x Mathematics x Dutch language x Business Economics x Economics x German language x Social science x

Table 1.3: Employee interview respondents

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24 was used more as a guideline for structuring the interview, introducing more open-ended questions and stimulating interactions between the interviewer and the participant. By intervening as little as possible during the interview, the answers of the respondents became richer and deeper insights were apparent. Since the current research sought to find hidden or suppressed meanings, projective techniques were used within the interview structures. These projective techniques included word association, sentence completion and personification (Cooper & Schindler, 2006). The script of the interview was pre-tested to identify any ambiguous or unclear questions and necessary adjustments were made before executing the IDI’s (Jordão et al., 2014). Furthermore, because of the high involvement of the researcher within this research project, behavioral observation became a second source of information. The strength of behavioral observation can be found in its ability to capture the whole event as it occurs in its natural environment, thereby being less demanding for participants (Cooper & Schindler, 2006).

In total, a number of 12 interviews were executed between May and June 2014. These interviews were subsequently transcribed and content analyzed. The interviews aimed to grasp a deep understanding of the existing organizational culture. On average the interviews lasted from 30 to 50 minutes. In conjunction with the semi-structured interview questions, off-the-record discussions contributed to a more complete understanding of organizational behavior and attitudes apparent within the organization. Furthermore, the discussions assisted in improving the interview questions to be asked and the clarification of imprecise content.

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25 cognitive maps were subsequently analyzed to identify the various cultural elements (symbols, rituals and routines, stories etc.) present within each cognitive map. Secondly, the identified cultural elements were transferred from the original cognitive maps of the interviewees into separate cognitive maps, one for each cultural element of the Web. Furthermore, each of the six cultural elements of the Web was subsequently analyzed to identify corresponding themes within each category. Finally, the common themes were summarized into a definite Cultural Web, referring to the existing culture of the educational organization (McDonald & Foster, 2013).

During the ‘cognitive mapping stage’ the analysis focused on the identification of shared or complementary perceptions among the employees, thereby measuring the existing organizational culture. Utilizing the Cultural Web as a framework, both the structural and interpretive aspects of organizational culture were examined, offering a broad and balanced perspective (McDonald & Foster, 2013). The second phase of the analysis aimed to compare the existing organizational culture relative to the desired organizational culture, in line with the objectives of the new MCS. The degree of similarity between the current and the desired organizational culture influences the effectiveness of implementing a strategic control mechanism (Brown, 1998). Moreover, a discrepancy between actual ‘organizational attitudes’ and ‘required attitudes’ towards the new MCS could result in resistance to change and impair the adaptive capabilities of the organization (Kemp & Dwyer, 2001). Therefore, the outcomes of the analysis could result in specific recommendations for management to shape the organizational culture, in congruence with the new MCS.

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26

CASE DESCRIPTION AND ANALYSIS

The secondary educational organization is a Dutch educational organization, specialized

in secondary education for HAVO and VWO students. As a part of the ‘educational group’, a cooperative partnership has been established between Christian secondary schools, named ………….. . The secondary educational organization is located in the city of ………. (province of ………., the Netherlands). The organization as it is currently known, emerged from a fusion between the ………. and several local divisions of the secondary

educational organization.

The analysis of the case aimed to present a clear overview of the existing organizational culture present at the secondary educational organization. Based on the analysis of the triangulated data and the theoretical assumptions behind the new MCS, two cultural webs have been designed. The first cultural web (Figure 1.5) represents the existing cultural paradigm of the

secondary educational organization. The second cultural web (Figure 1.6) refers to the desired

cultural paradigm of the educational organization, in line with the objectives of the change program (Vermaas, 2013; Merchant & van der Stede 2007). The cultural web of the existing organizational culture was subsequently compared to the desired organizational culture. A comparison of the cultural webs helped to show clearly which beliefs, assumptions, and behaviors need to be changed or reinforced in accordance with the new strategic directions imposed by the MCS (Heracleous & Langham, 1996). Over the years during which the

secondary educational organization has been operating in its current form, it has developed a

rich organizational culture. This organizational culture can be described by the following characteristics, which have been shared by the teaching staff of the educational organization:

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27

Figure 1.5: The ‘actual’ Cultural Web

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28 ❖ Students were seen as “unique individuals” and classes requested “specific pedagogical and didactic approaches”. Test results and marks were seen as absolute values, but the learning process was defined by the teachers as “relative”. Moreover, it became evident that the measurement of the learning process was broader than numbers alone. On average, a negative stance was taken against the development of increasing measurements within the educational system. “Incorrectly interpreted figures”, “higher workload”, “inappropriate incentives” and “ambiguity about the value added” were mentioned quotes against this trend of increased measurements.

❖ The secondary educational organization has been characterized by individualism and high autonomy of its workforce. This is exemplified by stated terms as “running your own kingdom” and “being able to play your own game”. Teachers indicated that they really appreciated their freedom in teaching style and that “multiple roads may contribute to a common purpose”. Collaboration between colleagues of the same department has been common, but especially for operational tasks and to a lesser extent future oriented. ❖ Employees indicated on average a “high accessibility”, “equality” and “openness” in dealing with the management team. However, in relation to the decision making process, the involvement of the ‘professionals’ was experienced as rather limited. Employees indicated that they would appreciate a more active involvement within the decision making process. The “discussion of new ideas” and “the establishment of a constructive dialogue” were mentioned as important conditions for gaining organization wide support. ❖ The secondary educational organization’s control systems put more emphasis on action,

cultural and above all personnel controls. The control systems were mainly process oriented and relied upon the professional insights of the teaching staff. Furthermore, the detection of undesirable outcomes was more prevalent than the prevention of these events. The assessment visits, as part of the annual review of employees, were experienced as “irregular”, “without obligation”, nevertheless “instructive”, but also “a bit confronting”. The low emphasis on feedback mechanisms was supported by the statement that “few consequences arose” from the external reviews.

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29 it was noticed by several colleagues that in recent years “the working atmosphere has become more businesslike”. The distance between teaching staff and management had been increasing. In combination with the necessary budgetary cuts, which had a negative influence on working practices, organizational trust, especially in management, had decreased.

The second phase of the analysis focused on the comparison of the existing organizational culture relative to the desired organizational culture, in line with the objectives of the new MCS. A comparison of the cultural webs could contribute to the prediction of likely areas of resistance to change and result in practical recommendations to resolve these difficulties (Heracleous & Langham, 1996). Based on the comparison of the cultural webs, it had been determined that, if the strategic change was to succeed, significant modifications needed to be realized in the cultural beliefs and assumptions of the employees:

❖ The effective implementation of OGW within the educational organization demanded a more directive role of management. This ‘desired cultural element’ contrasted the high degree of autonomy currently experienced and valued by the professional workforce. This was confirmed by quotes such as: “I appreciate to play my own game during the lessons” and “someone else does not need to tell me how to structure my lessons”. ❖ Furthermore, a shift in focus had to be realized towards an organizational culture that was

characterized by evaluation and constant learning. In such a culture, the proper and regular use of data is indispensable. Ideally, employees frequently use the available data to inform their decision making, determine objectives and draw proper conclusions. Currently employees did not use the available data in a systematic manner. In addition, a negative attitude was taken against the development of increasing measurements within the learning process. Teachers indicated that they did not fully understood which educational problems had to be solved by this “measurement trend”. Moreover, several employees indicated that their knowledge for using the available instruments was lacking and that the provision of instructional information was insufficient.

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30 mutual trust and openness between colleagues and management was an important prerequisite to reach this organizational goal. However, a significant part of the employees was not accustomed to the practice of analyzing individual performance and the subsequent receipt of feedback. These organizational practices felt for them as “internal competition” and “confrontational”. In parallel, the severe organizational cutbacks and the experienced professionalization of the organization did not contribute to the creation of a save and open organizational culture.

❖ To reach the desired organizational culture, more emphasis needed to be placed on the cooperation and alignment of working practices in each of the organizational departments. Within the existing organizational culture, cooperation between sections was common, but mainly focused on operational activities. To reach the desired cultural paradigm, the timely analysis of results and the aim for early interventions should be the main goal of working in a synergistic fashion. This way of operating contributes to a more harmonious, dynamical and flexible organization (Vermaas, 2013).

❖ According to the research of Fullan (2007), successful schools, that implement OGW, examined regularly which ‘revenues’ they valued for the learning process and what these ‘revenues’ meant for the organization. In addition the authors mentioned that management and educational staff should perform this goal-setting process together. In this manner internal support from the educational staff is reinforced (Heracleous & Langham, 1996). However, when analyzing the current approach towards the setting of objectives, it became apparent that the organizational structures facilitated top-down decision making and a rather low level of consultation of the employees. Interview quotes, such as “consultation is a rare practice” and “our voice in decision making is rather small” confirmed the previous statements. These outcomes, with regard to decision making process, stood in sharp contrast with the desired organizational culture, in which consultation and the gaining of support from the workforce were critical design elements. ❖ The analysis of the cultural element ‘control systems’ indicated that more systematic

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31 combination with an effective feedback mechanism, was of crucial importance.

In reference to the designed conceptual model, phase 1 ‘an analysis of the existing organizational culture’, using Johnson’s Cultural Web (1992), has been completed. Step 2 ‘a comparison of the existing and desired organizational culture’ indicated that significant cultural incongruences exist. These discrepancy between the current organizational culture and the desired organizational behaviors and attitudes could threaten the effective implementation of the new MCS (Brown, 1998; Heracleous & Langham, 1996).

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32

DISCUSSION

The outcomes of this empirical research imply that there exists a significant difference between the current organizational culture and the organizational culture that is indispensable for the effective implementation of a results oriented MCS. The main discrepancies between the current organizational behavior and the desired behavior and attitudes of the professional employees were observed in:

❖ The negative attitude towards the organization wide trend of increased measurement of the learning process and the use of ‘hard data’ to inform decision making and subsequent behavior. This outcome was strengthened by the experienced lack of knowledge and information to use the available data effectively.

❖ The difference between the experienced and expressed ‘need for autonomy’ of the professional workforce and the more directing role of management that was requested for the effective implementation of the strategic changes (Heracleous & Langham, 1996). ❖ The organizational process of decision making and objective-setting, that was currently

perceived by the teaching staff as ‘fairly top-down’ and ‘without participation’. This contrasted the more collaborative approach of ‘consultation’, which was needed for the gaining of critical organizational support (Vermaas, 2013).

❖ The experienced difference between the current organizational atmosphere, of limited trust and openness, and the required atmosphere of mutual trust and openness with respect to individual and group results. This emphasis on organizational trust and openness was needed for the effective implementation of feedback mechanisms, to stimulate an inquiring and evaluative organizational culture (Vermaas, 2013).

❖ The current low emphasis on feedback mechanisms and appraisals, which are an indispensable part of the cyclical working practices and output orientation, arising from the implementation of OGW (Vermaas, 2013).

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33 play in an organization (Johnson and Scholes, 1999). These cultural assumptions are often only implicitly understood and hard to articulate by the employees of an organization (Johnson and Scholes, 1999). This description of organizational culture could explain why organizational cultures remain relatively stable over time and can be extremely difficult to shape or adapt (Collins & Porras, 1994; Heracleous & Langham, 1996). The present study supports this statement, recognizing the rigidity of organizational culture.

However, due to changes in the internal and external environment of an organization, it can become desirable to shape a new organizational culture in line with the designed strategies and objectives of the organization (Heracleous & Langham, 1996). The successful management of such a development program is crucial to any organization in order to survive and succeed in today’s competitive and continuously changing organizational environment (Rune, 2005). Currently, however, multiple organizational change programs fail to achieve the desired strategies and objectives, due to a tendency of reactive and ad hoc management of organizational changes (Balogun & Hope, 2004). This trend became also apparent in the present study, since the implementation of the new MCS seemed complex, time consuming and resulted in internal resistance to the changes. Both the planned and emergent approach to the management of organizational change recognize the need of a particular ‘readiness to change’ (Rune, 2005). This need for internal readiness could indicate that previous organizational behavior and attitudes have to be relieved, before being able to successfully implement new organizational strategies (Bamford & Forrester, 2003). Furthermore, a deep understanding of organizational culture and structures is needed, since culture and structure both have been recognized as potential sources of inertia, impeding the implementation of the organizational changes (Burnes, 1996). The present study supports these statements and recognizes the need of a particular ‘readiness to change’. This ‘readiness to change’ could be facilitated by effective instruments that result in the creation of internal support and involvement, to shape organizational culture in the appreciated direction (Kanter et al., 1992; Heracleous & Langham, 1996).

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34 it was stated by the employees that there has been too much emphasis on absolute figures, whose added value was questioned. Moreover, the teaching staff felt that they were not engaged in the decision making process and the design of the organizational changes. Previous research indicates that employees are more receptive to change if they understand the need for change and experience that their views were taken into consideration (Kemp & Dwyer, 2001). This statement emphasizes the positive effects of increased employee identification and commitment, contributing to the effective implementation of a change program. (Kemp & Dwyer, 2001).

Theoretical Implications

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35 Managerial Implications

Several insights that yield from the present research can become valuable to the management of organizations. Firstly, it could be mentioned that managers should realize that transformational change, as initiated by the implementation of strategic changes, can be extremely difficult to achieve (Heracleous & Langham, 1996). One of the reasons for this is exemplified in the present study and refers to the substantial influence of cultural beliefs and assumptions on individuals’ interpretations and behaviors, therefore influencing the effectiveness of implementing a strategic change program (Brown, 1998; Johnson and Scholes, 1999). This statement signifies that the implementation of a change program could be a long term effort, taking several years for cultural adjustment to occur (Heracleous & Langham, 1996). The management of organizations at change should recognize this substantial influence of cultural beliefs and assumptions and develop appropriate instruments to shape organizational culture in the appreciated direction (Heracleous & Langham, 1996). Next, an overview will be presented of specific recommendations for management, to shape organizational culture in congruence with a new management control system:

❖ First of all, the tone at the top is of high importance. Organizational change on such a large scale is possible, but it has to be pursued by committed leaders. This indicates that the leaders of an organization should be visible, active, and credible in disclosing and implementing the strategic changes (Merchant & van der Stede, 2007; Heracleous & Langham, 1996).

❖ Secondly, involving the participants who will be affected by a change program, reduces resistance to change significantly, because it ensures ownership of the process through engagement (Coch & French, 1948).

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36 ❖ Furthermore, it is important that the organization invests in the development of new skills and knowledge for its employees (Heracleous & Langham, 1996). For this specific case the professional employees may be trained in the acquiring of new ICT-skills and the execution of their new and broader organizational responsibilities (Vermaas, 2013). ❖ Moreover, the implementation of new and aligned codes of conduct, in accordance with a

new MCS, may contribute to the accelerated acquaintance with the desired organizational behavior (Merchant & van der Stede, 2007).

❖ Finally, the design of effective group rewards may stimulate the desired organizational behavior and attitudes. Organizations can derive motivational value from the design of incentives, which are linked to results that employees can influence (Merchant & van der Stede, 2007). This motivational value can be used by the organization to steer the actions of employees in the most appreciated direction, in line with the objectives of a new MCS (Merchant & van der Stede, 2007).

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37

CONCLUSION

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38 In reflection to this study, one limitation is the fact that the results cannot be generalized to other cases, since the analysis is limited to a holistic single case study. However, this decision was supported by the uniqueness of the organization (Yin, 2003). Moreover, it could be said that the results from the present study complement to the results found in other organizational and cultural contexts, such as those reported in Jordão et al. (2014) and Heracleous & Langham (1996). In both studies a single case study methodology was used to confirm the significant interrelationship between strategic change and organizational culture. Another limitation of the current research is the relative short time period (2-3 months) used to observe and analyze the organizational culture at the educational organization. As a consequence it was fairly difficult to capture ‘the whole cultural picture’ and determine which cultural elements were of utmost importance within the initiated process of strategic change.

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39

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Altman, Y., & Iles, P. (1998). Learning, leadership, teams: corporate learning and organisational change. Journal of Management Development, 17(1), 44–55.

Armenakis, A.A., Harris, S.G., & Mossholder, K.W. (1993). Creating readiness for organizational change. Human Relations, 46(6), 681-703.

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Bamford, D. R., & Forrester, P. L. (2003). Managing planned and emergent change within an operations management environment. International Journal of Operations & Production Management, 23(5), 546–564.

Baxter, P., & Jack, S. (2008). Qualitative Case Study Methodology: Study Design and Implementation for Novice Researchers. The Qualitative Report, 13(4), 544-559.

Brown, A., (1998). Organizational Culture (2nd ed.) London: Pitman Publishing.

Bullock, R. J., & Batten, D. (1985). It’s just a phase we’re going through: a review and synthesis of OD phase analysis. Group and Organization Studies, 10(12), 383–412.

Burnes, B., (2004). Managing Change: A Strategic Approach to Organisational Dynamics (4th ed.) Harlow: Prentice Hall.

Burnes, B., (1996). No such thing as ... a “one best way” to manage organizational change. Management Decision, 34(10), 11–18.

Coch, L., & French, R. (1948). Overcoming resistance to change. Human Relations, 2(4), 512-532.

Collins, J.C., & Porras, J.I. (1994). Build To Last: Successful Habits of Visionary Companies. Harper Collins Publishers.

Cooper, D.R., & Schindler, P.S. (2006). Business Research Methods (9th ed.) New York: McGraw Hill-Irwin.

Crabtree, B., & Miller, W. (1999). Doing Qualitative Research (2nd ed.) Londen: Sage.

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40 Review, 14(14), 500–532.

Eldrod II, P.D., & Tippett, D. D. (2002). The “death valley” of change. Journal of Organizational Change Management, 15(3), 273–291.

Flamholz, E.G., & Randle, Y. (2007). Successful Organizational Development and Growing Pains. Management Online REview, 1-9.

Fullan, M. (2007). The new meaning of educational change (4th ed.) Taylor & Francis Ltd.

Granlund, M. (2003). Management accounting systems integration in corporate mergers: A case study. Accounting, Auditing and Accountability Journal, 16(2), 208–243.

Grundy, T. (1993). Managing Strategic Change. London: Kogan Page.

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Johnson, G. (1987). Strategic change and the management process. Oxford, UK: Blackwell.

Johnson, G. (1992). Managing strategic change: Strategy, culture and action. Long Range Planning, 25(1), 28-36.

Johnson, G., & Scholes, K. (1999) Exploring corporate strategy (5th ed.) London: Prentice Hall.

Jordão, R.V.D., Souza, A.A., & Avelar, E.A. (2014). Organizational culture and post-acquisition changes in management control systems: An analysis of a successful Brazilian case. Journal of Business Research, 67, 542-549.

Kemp, S. & Dwyer, L. (2001). An examination of organisational culture: The Regent Hotel, Sydney. International Journal of Hospitality Management, 20(1), 77-93.

Lather, P. (1992). Critical frames in educational research: Feminist and post-structural perspectives. Theory into Practice, 31(2), 87-99.

Luecke, R. (2003). Managing Change and Transition. Boston, MA: Harvard Business School Press.

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41 Kotter, J.P. (1996). Leading Change. Boston, MA: Harvard Business School Press.

MCDonald, S., & Foster, R.A. (2013). The Use of Johnson’s Cultural Web to Improve Under- standing of Organisational Culture: A Critical Review. International Journal of Management, 30(04), 340-354.

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Merchant, K.A., & van der Stede, W.A. (2007). Management Control Systems (2th ed.) Prentice Hall.

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Rune, T. (2005). Organisational Change Management: A Critical Review. Journal of Change Management, 5(4), 369-380.

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43

Appendix A

Interview: de ‘organisatie cultuur’ van the secondary educational organization Inleiding op het interview:

Mijn naam is Joshua Douma, ik ben ….. jaar oud, woonachtig in ……….. en momenteel aan het afstuderen aan de RUG in Groningen. Voor mijn scriptie heb ik ervoor gekozen om onderzoek te doen naar de organisatie cultuur op een middelbare scholengemeenschap. In dit geval the secondary educational organization. Momenteel zijn er verschillende nationale ontwikkelingen gaande die invloed hebben op het (toekomstig) ‘functioneren’ van een middelbare school. Eén van deze ontwikkelingen is ‘Opbrengstgericht Werken’, een programma dat zich richt op het verbeteren van de onderwijs kwaliteit. In dit onderzoek is het mijn doelstelling om de huidige ‘manier van werken’ te onderzoeken en dit te ‘koppelen’ aan het nieuwe programma: ‘Opbrengstgericht Werken’.

Voordat we gaan beginnen met het interview wil ik u allereerst toestemming vragen om dit gesprek op te nemen. De opname zal door mij alleen gebruikt worden om het gesprek nog eens terug te kunnen luisteren. Daarnaast zullen alle door u gegeven antwoorden volkomen anoniem blijven.

Inleidende vragen:

1. Wat is uw naam? (puur administratief) ………

2. Hoeveel jaren bent u al in dienst van the secondary educational organization? ……… jaar 3. Wat is u vakgebied? In welke sectie bent u werkzaam? ………..

4. In de visie van the secondary educational organization wordt gesproken over ……….., ……… en ……….. .

- Hoe kijkt u tegen deze visie aan? Wat vindt u een belangrijk onderdeel voor de visie van de school?

……… - In hoeverre beïnvloedt deze visie uw dagelijkse werkzaamheden / de invulling van het

leerproces?

……… - In hoeverre hebt u hoge verwachtingen voor het leerproces van de leerlingen?

……… - Op welke manier uit u deze verwachtingen naar leerlingen / wordt dit zichtbaar in de

inrichting van de lessen (onderwijs proces)?

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44

5. Op the secondary educational organization is de schoolleiding, in samenwerking met de centrale directie verantwoordelijk voor uitzetten en varen van de juiste koers.

- In hoeverre hebt u contact met de schoolleiding (centrale directie)?

……… - Om welke redenen heeft u contact met de schoolleiding?

……… - Hoe ervaart u het (professioneel) contact met de schoolleiding?

……… - In hoeverre kunt u zich vinden in de stelling dat de schoolleiding duidelijk aangeeft wat

zij belangrijk vindt voor de invulling van het leerproces en hier ook op stuurt?

………

6. De afgelopen tijd is ook binnen the secondary educational organization meer nadruk komen te liggen op het ‘meten van het leerproces’. Deze trend komt onder andere voort uit de vernieuwde richtlijnen van de inspectie (opbrengsten kaart / oordeel). Dit gebeurd op the secondary educational organization bijvoorbeeld door middel van het leerlingvolgsysteem (Magister) en de Cito-(volg)toetsen.

- Hoe hebt u deze ontwikkeling ervaren?

……… - ‘Meten is weten’ is een uitdrukking die soms wordt gebruikt als argument voor de

hiervoor beschreven trend. Hoe kijkt u hier tegen aan?

……… - Hebt u het gevoel dat het meten, analyseren, vergelijken en verklaren van

‘leerresultaten’ een positieve invloed heeft op de kwaliteit van het leerproces?

- ……… - In hoeverre maakt u zelf gebruik van de instrumenten die voorhanden zijn om de

uitkomsten van het leerproces te meten en analyseren? En hoe ervaart u dit?

……… - Stelling: “Docenten zijn binnen hun eigen vakgebied in staat om zelfstandig na te

denken over- en keuzes te maken voor de invulling van het onderwijs proces.”

- ………

7. Binnen the secondary educational organization werkt een groot aantal collega’s die op verschillende momenten en manieren met elkaar in contact komen. Deze ‘samenwerking’ tussen OP, OOP en LMT kan op verschillende manieren verlopen.

- In hoeverre werkt u samen met andere collega’s?

……… - Op welke terreinen werkt u samen met andere collega’s?

……… - Hoe ervaart u de (professionele) samenwerking met mede-docenten, OOP en LMT?

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45 - Stelling: Ik vind het belangrijk om met andere docenten samen te werken om op deze

manier mijn eigen handelen in de lessen te kunnen evalueren.

……… - Stelling: Ik voel mij niet belemmert om mijn eigen functioneren te bespreken met

collega’s / mijn leidinggevende.

……… - De gesprekken die ik voer met collega’s / het LMT over mijn lesgevende

(on)bekwaamheden zijn over het algeheel opbouwend te noemen.

……… - Mijn vertrouwen in collega’s (/ de schoolleiding) is ………, omdat ………..

We zijn bij het einde van het interview aangekomen. Ik heb voor u geen aanvullende vragen meer. Zijn er nog zaken die u graag wilt noemen met betrekking tot de behandelde

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