This study is to fulfil the requirements of the MBA dissertation module. It may be beneficial as a guide which could help not just the Diocese of Southwark as an organisation but the general congregations/consumers of the services that the diocese has to offer.
While it will attempt to highlight cultural diversity and the changes that occur the intention is not to dwell on the cultural problems that affect the Church and society in the Britain of the 21st century. It is rather aimed at looking forward and possibly finding ways of working towards solutions to those problems.
It is not a comprehensive study of all the factors affecting the church, membership and finance. However, it is hoped that it could provide guidance to policy makers on broad issues and to help in defining poignant research areas.
1.1 The Background of the Study
Nestled in the south-eastern section of England is the Anglican diocese of Southwark. Southwark is but one of the many dioceses that makeup the Province of Canterbury.
The Anglican Church in England is described as the mother church to the many dioceses and provinces in the wider Anglican Communion. In each Diocese every geographical subdivision falls within a parish. Therefore, every person in the UK, for example, lives in an Anglican parish ( 2002) (See Appendix 1).
While it is not the author’s intention to portray the church as a consumerist entity it must be noted that the financial resources are essential to the efficient operation of any business. The availability of financial resources, therefore, are necessary for the Church to carry out its mission. In recognition of this the Church from its inception has been involved with the Church Commissioners for England and the Archbishops’ Council which are responsible for management of its financial resources amongst other duties.
Much of the way the Diocese works is governed by the way the rest of the Church of England operates. There are a number of legal constraints and requirements which impact the Diocese by virtue of its being a part of the Church of England, the national church of England. It is generally said that the Church of England is by law established. This view is fallacious in that no act of Parliament of Deed or Trust has rendered it formally established in the same way as have been legally recognised ( 2002). It is the nature of the relationship of the Church of England (CofE) with the State over the centuries that has constituted its establishment. This relationship is chiefly characterised by the incorporation of church law with that of the state and the public recognition of the church’s courts and judges as possessing proper legal jurisdiction. Such legislative authority does not however, supersede that of Parliament. Some elements of the Church’s organisational structure are required by law (See Appendix 2). For example, an Anglican Diocese must have a Board of Finance to which is entrusted the proper management of its financial resources. This proper management involves the efficient and effective use and allocation of its financial resources (2002).
While the church’s established status offers certain privileges it also imposes on it certain obligations. The church is therefore governed by common law (unwritten law which has been established by precedent) and statute (written law). Statute includes the Canons Ecclesiastical and Measures and other instruments passed by Parliament and by General Synod, the governing body of the Church (2002).
Data collected from the 1991 Census and analysed with the assistance of the Geographical Information Research Laboratory at the School of Economics show that a notable feature of the south of London, under which falls a significant portion of the Diocese of Southwark, is its diversity. This diversity is manifested under six main categories:
The more recent figures of the Office for National Statistics (ONS) indicate that there is an increase in the number of minority ethnic people who occupy the south of London ( 2002, December 2002 ).
1.2 Statement of the Problem
The Church of England has become one of the most well-known global ecclesiastical bodies. In the past it was one of the most influential having spread worldwide creating what has become known as the Anglican Communion ( 2000).
The United Kingdom is described has becoming increasingly cosmopolitan in the make up of its ethnic composition and cultural changes. At the same time it has been reported that there has been a decline in the number of Anglicans and people becoming affiliated with the Anglican Church. There has also been a drop in the financial support (giving) by people to the church. While this is happening the British society and the world in which the church exists is also changing. This study will investigate the sources of funding and the allocation of funding in light of major changes affecting the Diocese of Southwark.
1.3 Aims and Objectives of the Research
The aim of this study is to identify or highlight the reasons for this change, to examine the impact of this change and its effect on the financial resource allocation in the Church, in particular the Diocese of Southwark. The stated objectives are:
To assess the political, economical, social and technological
influences on the resources of the Diocese of Southwark
To discuss the effects of changes in the cultural environment on
the Diocese of Southwark
To recommend strategies to aid the church in the stewardship of its resources
Based upon these objectives data will be collected and analysed systematically in order to establish the findings in a defined way, resulting in an increase in knowledge ( 2003). As the research is intended to be applicable to management purposes, business models or frameworks will be applied to the systematic gathering and analysis of data and the results discussed in relation to these.
The approach to undertaking research and hence the subsequent strategy that is employed are many and varied ( 2003). Saunders et al have used the analogy of an onion to represent the research process. The philosophy depends on the way the research thinks about knowledge. The research philosophy can have a positivist, realist or interpretive approach. The positivist or scientific approach (2003;2000) starts with the assumption of a theory and using controlled experiments to make generalisations about the theory. The approach is also referred to as experimental (1993) and emphasises a cause and effect relationship. Interpretivism is based on the meaning and interpretations that that people place on and draw from their environment. An extension of this approach is realism. This is based on the belief that a reality exists independently of the interpretation that people place on their environment.
These philosophies define whether a research is deductive or inductive. Deductive inferences are gained from the positivist approach while inductive reasoning from the realism and interpretivism (2003; 2000). The approach taken by the author is not basically to test a theory or make a deduction. The theory would arise out of the data that is collected. The approach taken by the author will however, incorporate deductive as well as inductive approaches.
The research will also incorporate a quantitative as well as qualitative approach. The quantitative aspect uses experimental approach to arrive at measurable outcomes that can be quantified and compared. The human element has become increasingly significant in determining truth and knowledge ( 2000). Qualitative research enables people to express their understanding of their world through what they say ( 2000). People’s attitude and feelings are important, therefore, in arriving at valid conclusions in the research.
The experimental approach will not be used in this study as it would not be possible to carry out the study under control. The iterative process required could also not be met. This process would prove to be too costly and time consuming. The approach taken will incorporate elements of the qualitative, quantitative approach in order to present information in a measurable, reliable way given the constraints of time and financial resource.
The approach taken or type of research will lead into the most appropriate strategy that can be used for gathering information. Some of these have been identified as experimental, survey, case study, ethnography, action and exploratory, descriptive and explanatory research.
1.4 The Professional Significance of the Study
In accordance with the requirement of the University of Hull in writing the dissertation to complete the Masters in Business Administration (MBA) the author seized the opportunity to undertake this project. The Church of England is seen by some writers as requiring a change to its culture in order to become more proactive in attracting new members. It needed to be developed as the type of church which could help people encounter God in their cultural context ( Thursday January 15, 2004). In February 2004, the General Synod of the Church of England approved a research-based report of its Ministry and Public Affairs Council (MPAC) called Mission-shaped Church (March 11, 2004,). The aim of this report is to draw attention to the fact that the England which “the church exists to reach and serve has significantly changed”. The church’s mission had now become cross-cultural. Also the role of the Church Commissioners with relation to the Church of England has changed. In 2002 the Church Commissioners decided that it would hand over the financial affairs of the dioceses to the Archbishops’ Council and would review allocation of funding to dioceses. In its 2002 report there were cuts in allocations and the decision to make payments of clergy pension only to those who were in post prior to 1998. The dioceses and parishes would have to provide funding for pensions occurring post 1998.
Much of the published material dealt with only one of the above-mentioned aspects at a time. No distinct correlation seems to be made between the issues. Much analysis is done through news commentaries and publications on separate issues as indicated by the newspaper references. For the author there was this concern of the culture, diversity and its possible impact on the resources and the allocation of resources for the dioceses. A close relationship with the Diocese of Southwark over a period of time led to the topic: “An analysis of financial resource in the Church of England – The Diocese of Southwark (UK)”.
Academic models will be used to relate the objectives to the research.
1.5 Overview of the Methodology The methodology or process for carrying out the research was done according to a plan. The research plan represents a linear quantitative approach (Burns 2000) and this is reflected in the plan that the author adopted. 1.5.1 The Research Plan
The following steps outline the plan of action to be followed in conducting this research:
Source: 1.5.2 Dissertation Structure
Chapter 2 presents the research methodology in detail. An overview is presented here. Incorporating qualitative and quantitative perspectives the methods used will include both primary and secondary research.
The primary research will include data collected specifically for this dissertation through:
- Interviews with strategic Church of England and Diocesan personnel
- Parish surveys using questionnaires
The secondary research will be carried out using documentary secondary data (2003) such as :
- Church Commissioners’ Annual Reports
- Archbishops’ Council’s Annual Reports
- The Southwark Annual Diocesan Review
- Articles eg various Stewardship booklets and programmes (TRIO, GEM, PASS IT ON) published by the Communications and Resources Department
- Websites
- Survey-based secondary data such as census surveys
1.5.3 The Literature Review
As a further aid to this research information will be gathered by way of a review of related literature. This review will be conducted to reflect the stated objectives. In Chapter 3 the literature review includes an analysis of the macro-environment in which the church exists. This involves an examination of the political, economical, social, technological, legal and environmental factors. An analysis will also be made of the strengths, weaknesses, opportunities and threats which face the Diocese of Southwark. Theoretical models will be used to identify competitive forces and strategies which might be helpful in pointing towards the establishment of a sustainable advantage through change and change management based on academic models.
The research objectives will be linked to theoretical frameworks in attempting to find a solution to the research problems.
1.5.4 The Research Findings
The results of the research will be reported in Chapter 4. Statistics, tables, diagrams and numerical explanations will be used to report on the research findings.
These results will be discussed, analysed and recommendations made in Chapter 5. In this chapter the author will bring to bear her own thoughts and interpretations in answering the research objectives.
Conclusions arising out of the discussions will follow in Chapter 6.
1.5.5 The Limitations of the Study
There are forty-three dioceses which make up the Church of England. However, the study has been limited to the Diocese of Southwark. Therefore, although similar concerns may affect other dioceses the findings and recommendations may not be easily applied to another diocese. The setting for the research is unique in that the geographical area of the Diocese of Southwark covers the south of London and extends to rural surrey near the M25 motorway. The London metropolitan area has been seeing an influx of various minority ethnic groups. London is acclaimed to be the financial capital of the world and the Diocese is surrounded by the affluence of the suburbs and deprivation of inner-city areas.
The sample was chosen at random and not selected by any empirical methods. It would prove expensive and time consuming to conduct a research based on probability sampling for example. Therefore, the chances of each group being represented through probability sampling would not be possible ( 2003).
It was not possible for the author to personally administer questionnaires due to geographical distances of the locations and time constraints. Help was solicited in the distribution of the questionnaires. There is the chance that some respondents may not be members of the CofE. However, because technically each person falls within a parish they are automatically defined as parishioners and have certain rights and privileges within such a parish they are able to complete the questionnaires based on this.
The questionnaires provided for anonymity which help to decrease the number of no-responses which might otherwise have been recorded. A rate of no-response might render the data unreliable or invalid.
Chapter Summary
The research being undertaken is to fulfil the requirements of the MBA and to emphasise the significance of primary research. In order to do this the C of E and in particular the Diocese of Southwark has been used to help to demonstrate this. The preceding paragraphs presented a background to the study and outlined the general steps that will be undertaken in examining primary and secondary sources of in order to arrive at valid conclusions with relation to the stated objectives of the research.
The preceding chapter sets out an overview of the study and outline the general plan or methodology for obtaining data, processing information and reporting on the findings. This chapter sets out comprehensively the manner in which the study will be carried out.
In the initial stages the author did not have a clear statement of the problem. This was refined by using questions aimed at finding out what was essentially the main features surrounding the ideas that were being conceptualised. The answers to these questions helped to formulate objectives which pointed towards the main questions that needed to be answered and subsequently a clearer statement of the problem was derived.
The general research process used involved six steps as outlined in the introductory chapter. These include a definition of the problem, a design or plan of the study, a selection of samples and instruments with which to conduct the research, the gathering of data, the processing and analysis of the data and finally the presentation of the findings and a discussion of the findings. In accordance with (2000) and (2003) the methodology pursued was based on the research perspective. This study though being mainly qualitative in that it emphasized people’s views and feelings also had elements that could be quantified as in an empirical research.
2.1 Types of Research
Several research types were identified (1998; 2000; 2003). Some of these include experimental, case study, action, survey and ethnographic research. Another type of research or strategy is the exploratory, descriptive and explanatory (causal-comparative, descriptive, evaluation) research.
In experimental research samples are assigned to experimental or controlled groups and tests and deductions made according to the presence of absence of a dependent variable. The case study method involves the examination of current or contemporary areas of interest within its real life context. Action research is a practical undertaking centred around an identified problem with scope for further study even after the project has come to an end. Survey research allows for the collection of a large and amount of information about a problem and is used by management practitioners to gather data from comparisons can be made easily. Ethnographic research uses anthropological methods to examine the cultural of a particular phenomenon. In exploratory research information is collected about a phenomenon as means of finding out what is happening and to add new insight into the topic of interest. Though not deemed to be particularly interesting in itself (2003) descriptive research can be used to present an accurate picture of a phenomenon. Explanatory research involves the examination of a problem to establish the causes and effects between variables used to study the problem.
This study incorporates elements of the survey and exploratory, descriptive and explanatory approaches. Some other approaches would not have been appropriate to this project. For example, given the limitations of financial resources and time constraints the experimental approach could not be used as the author would not be able to control the variables involved.
2.2 The Research Context
The Diocese of Southwark is said to be unique in that the geographical area covers the south of London and extends to rural Surrey near the M25 motorway. The Diocese is surrounded by the affluence of the suburbs and deprivation of inner-city areas. It also has a prominent ethnic mix within and outside of the London metropolitan area.
The Church of England Yearbook 2004 records that the Diocese covers a geographical area of 317 square miles. It has a population of 2,394,000 and over 300 parishes.
In order to carry out the study it will be necessary to collect data from a cross-section of the Diocese. It was practically impossible for information to be collected from every parish and every individual due to time and financial constraints.
2.3 The Research Participants
The sample that would be used would need to provide information about the entire population of the organisation in order to answer the research question and the objectives. It is not always possible, however, to conduct a survey of the entire population of people that would encompass the group being studied (2003). It was not therefore, practical or possible to conduct a survey of the almost two million parishioners in the Diocese of Southwark. Probability sampling in the strictest sense could not be used as this would call for a more accurate calculation of the sample size that would be required. A suitable sample frame for the survey would include parishes in urban as well as the sub-urban sections of the Diocese. Several authors have identified various methods of selecting a sample size. It was thought to be helpful to ensure that the survey encompassed the three Episcopal areas of the Diocese. An Episcopal area is a sub-division of the Diocese which is falls under the direct authority of an assistant or area bishop. In the Diocese of Southwark there are three Episcopal areas, namely Woolwich, Croydon and Kingston.
The sample size was selected on this basis and distributed among the three areas. Three hundred questionnaires were distributed among the three areas in the ratio of one hundred per area. A simple random technique was used. The data that was needed and the results obtained could still be representative in that there was no need to make statistical inferences. The margin for error for the results obtained would be low. The method could obtain on balance accurate information which is easily accessible. The aim was to obtain overall a higher than one hundred response rate cumulatively ( 2003). This would provide information which would be indicative of the entire Diocese.
2.4 Information Sources
The information was gathered from several sources. The survey was done through questionnaires administered to parishioners in the three Episcopal areas in the Diocese of Southwark.
Interviews were also used to gather information. The prospective interviewees were selected based on the nature of the information that was needed to be collected. For example, personnel with responsibility for allocation of funds, development of stewardship and overall management of the organisation were selected.
The author’s observation of some of the members of the organisation, the environment as well as the processes of the organisation were also used to gather information.
A review of related literature was also carried out based on the stated objectives of the research.
2.5 Research Instruments
Several methods of collecting information have been identified according to the type of research being undertaken. (1998) identifies five main types of research methods or instruments. These are tests and measurements, interviews, observations, surveys and through the examination of documents. Tests and measurements, for example, are more suited to experimental research. In this research the author carried out surveys using questionnaires to help to assess people’s opinions, feelings and attitudes. Interviews were also used to gain information from people placed strategically within the organisation. Documents were also examined to find out about trends and developments in areas of culture and finance in particular. In some cases observations were also made. The research methods selected were also thought to be best suited to the requirements of the study, the researcher’s skills and the time constraints. As the researcher is an employee of the organisation permission was secured in gaining access and in the use of information material were of a confidential nature. The interviews and questionnaires made up the primary research and the review of documents and literature, the secondary research.
2.5.1 Questionnaires
The types of items in the questionnaires varied from simple, close-ended to open-ended and were based on the stated objectives. The close-ended questions carried pre-specified answers in multiply choices in some instances. In this way they could be quickly answered and there would hopefully be a higher response rate. (, 1998). The open-ended items were used to enable respondents to answer as freely as possible in their own words. This is also a way of gaining information which might not have otherwise been forthcoming because of gaps in the author’s knowledge when designing the questionnaire. Items were also set based on the Likert scale because it was important to gain information on people’s attitudes and feelings. The qualitative and quantitative approaches were adopted for the research so therefore the questions set in order to obtain qualitative and quantitative data.
It would be necessary to collect data that would give information about the population’s status, involvement and also their attitudes towards features of the organisation. The information on status included sex, age ethnicity, social status, attitudes towards contributions to the church and the roles of individuals as compared to the church and the wider society. This information was collected through surveys.
2.5.2 Interviews
The aim of the interviews was to obtain information from specified personnel and departments. These sources had more informed knowledge than the general public in the parishes. The interview items were based on the objectives. Questions were therefore asked with regard to finance, stewardship and social issues.
2.6 Secondary Research
The secondary research was carried out through an examination of annual reports and reviews from the Church Commissioners, the Archbishops’ Council and the Diocese of Southwark. The Communications and Resources Department of the Diocese of Southwark also provided information on various stewardship programmes such as The Responsibility is Ours (TRIO), Giving Enables Mission (GEM) and PASS IT ON.
When contacted several sources directed the author to their websites in order to gain indepth and up-to-date information. These included the Office for National Statistics (ONS) and the Department for Trade and Industry (DTI)
2.7 Research Process
According to (1998) the procedures carried out should be detailed so that if necessary the research can be replicated. He added that readers would also be able to determine whether or not the findings can be trusted. The author found that this was especially important when designing and administering the questionnaires and also in designing and conducting the interviews. It was important that the items be valid and reliable. Interviews or questionnaires are deemed to be valid when they measure what they are intended to measure ( 2000). When the responses to questions asked produce similar results under the same occasions then those questions can be said to be reliable (1993). Establishing the reliability and validity of items was very important since an item can be said to be unreliable and therefore lacking validity (1993). Though reliable items are not necessarily valid as they can produce constant results but not measure what they had set out to measure.
2.8 Pilot Testing
The questionnaires were pilot-tested to ensure validity and reliability.
It was necessary for the respondents to be able to answer the questions and also for the data to be collected and recorded easily and with a greater degree of accuracy. The questionnaire and interview items were therefore tested initially by administering a selected group of people. The aim of the pilot test was to highlight possible flaws in the design of questions, identify elements of bias and inappropriate or insensitive questions. Testing was also useful identifying questions that were ambiguous or repetitive. The questionnaire was tested using members of my family, colleagues and a few members of the community. They gave helpful suggestions regarding the length of the questionnaire, the suitability of the items also made suggestions as to what could be included or omitted. One was not comfortable with answering questions that asked about changes in the church. The author established that the respondents’ could remain anonymous as this would help to gain more truthful and reliable responses ( 2000).
Specialist personnel, for example, an economist was consulted to comment on the representativeness and suitability of the questions regarding the business environment. Interview items were specifically pilot tested on management personnel. Having established that the items measured the intended variables the questionnaires were distributed. The questionnaires were also weighted against the objectives of the research to ensure that they could answer the questions that arose out of these objectives.
2.9 Data Collection Schedule
Many of the questionnaires were interviewer-administered. This approach was used bearing the time constraints regarding the collection of the data. Where it was not possible for the author to administer and collect the data personally key personnel in the community who would get co-operation from prospective respondents were used to administer and collect the questionnaires.
It was, however, necessary to remind people who had kindly undertaken to deliver the questionnaires to collect them. Once these were collected they were retrieved from the assistants. Key personnel were also used since they were known to some members of the community who lived in parishes but did not necessarily consider themselves as members of any particular congregation. Should the author have desired to door-to-door administration of the questionnaires this would not only have been too exhaustive but it would have been necessary to have obtained permission from the police to do this. The scope of the administration of the questionnaire could have been limited in this way. Therefore, the aim to off-set this was to gain as good a return rate as possible from those to whom the questionnaires were administered.
2.10 Data Processing and Analysis
The raw data collected was checked and edited and coded. The responses were coded so that they could be grouped and presented in a concise manner such as in tables. The interviews which were recorded were transcribed. As some of the questions were asked in random fashion the responses were organised into specific categories, for example, in the separation of responses related to finance as against social issues. The data was reduced and presented as percentages, raw data or in table form. The data was analysed in order to determine its meaning (1998; 2000).
2.11 Presentation of Findings
The data was displayed as narrative text, for example, the interview results. Other data was presented in the form of tables and charts.
2.12 The Limitations of the Study
The author realises that some responses might be biased towards the church and also that some people might not have wished to speak freely about issues affecting them. The anonymity and confidentiality conditions attached to the questionnaire and interviews was hoped to reduce bias and helped to gain more accurate information.
Some of the information gained was outdated and so could not be used. On the other hand there was current up-to-date information which also could not be used as they were not yet released into the public domain. The author had to use published information only in some cases. This might reveal future discrepancies in the information presented in this study as against information that might be used in future studies.
Within the Church of England some congregations are classified according to their churchmanship. They may be Catholic, Anglo-Catholic or evangelical, for example. One of the limitations of the administration of the questionnaire is that they were not given to equal number of churches defined by their traditions.
Chapter Summary
Given the nature of the research the methodology was aimed at being simple, as accurate as possible and justifiable. It was aimed at reaching as many people as possible who could give a balanced judgement thereby reducing the level of inaccuracy and increasing its reliability. Having defined a clearer statement of the problem plan was developed which enabled information to be gathered and analysed in respect of the stated objectives. In Chapter 3 the review of literature focuses on the issues of financial source, allocation of finance. It also examines the work, place and role of the church in today’s society and within the changing business environment.
The previous chapter outlined the methodology involved in obtaining and presenting information for this research. This chapter is aimed at assessing the Church and the Diocese of Southwark within the environment in which it exists according to the stated objectives. It identifies the sources of finance and the allocation of finance within the Diocese. Within the macro-environment it is affected by political, economical, social and technological factors. The church also exists within a business environment where it interacts and competes with others within the industry. The wider environment is also changing mainly through globalisation. This has become a much debated issue in many circles. The church has to find methods of coping or adjusting to change in order to survive.
As a not-for-profit, service organisation the Church has at its disposal various resources which are employed or can be employed to enhance its position as one of the major institutions in society. The resources include people, finances and the buildings and fabric ( 2003). In today’s society information technology has also come to be regarded as an increasingly valuable resource in any business and over time has altered the way services are viewed ( 2000). Information technology can help to restructure and redefine industry as it changes the role of suppliers and customers (2000).
The people resource includes human resource, that is, employees as well as the customers, that is those who are influenced by the services of the church, for example, the parishioners. The human resources are defined by culture, diversity and ethnicity.
Reports from the Diocese, the Archbishops’ Council and the Church Commissioners were some of the sources used to obtain information for the secondary research. The secondary research also includes a review of literature on theoretical models related to the environment in which the Church exists, the change that is taking place and ways of managing change.
3.2 The Resources of The Diocese of Southwark
Two important resources which are embodied in the scope of this work are finance and the people or diversity of the people of the Diocese in particular the parishioners who are to all intents and purposes the customers who benefit from the service offered by the Diocese.
3.3 The Objectives of Financial Management
The Church, of which the Church of England is no exception, is regarded as a business as it offers a variety of services to its members and is therefore faced with similar decisions which face other businesses. According to Levy and Sarnat (1994 p. 4) firms are faced with decisions with regard to their capital expenditure and financing. They are of the opinion that more than any other single factor the investment strategy which is adopted and executed by an organisation determines not only its future growth and profitability but also its success. Financial decision-making and the choice of investment strategies and projects are dependent on the establishment of a goal or a combination of goals. Ultimately, any decision that is taken will have to be weighted against the risks involved ( 1994). (2002) defines risk as the likelihood that the predicted outcome of the investment strategy will not be realised. No single goal can be truly indicative of what is needed or required by an organisation. Some of the goals of an organisation are listed as profit maximisation, maximisation of sales, survival of the firm, achievement of a satisfactory level of profits, a minimum level of employee turnover, less worry and more financial rewards for managers. However, no single goal can adequately cover all the factors that are to be considered in making financial decisions. According to Andrew Britton in the Annual Review 2003 the main goals of the Diocese of Southwark are to cover the cost of clergy stipends, clergy housing and other departments which aid in the mission of the church. The Bishop of Southwark in an interview has added that the Diocese now has to fund clergy pensions and clergy widows pension. This is as a result of the Church Commissioners for England (the Commissioners) having decided to discontinue such payments for clergy who enter ministry after 1998. According to the Commissioners this decision resulted from the fact the clergy are now living longer and it costs more to fund the pension scheme and to provide for clergy housing. The concerns regarding the state of pensions is corroborated by the Confederation of British Industry (CBI). In a recent report Digby Jones, President of the CBI explained that research had shown that the pensions had dilemma had arisen because of the bear market in stocks and shares and people were generally living longer.
3.4 The Sources of Financial Resources
The sources of funding for not-for-profit organisations are varied and often do not benefit directly from the services offered by the organisations with which they are concerned (2002). Several implications may arise because of the nature of this type of funding. Organisational strategies may be influenced by the funding bodies or the organisation might become overly concerned with the efficient use of resources at the expense of the efficiency of the service offered. The organisations have to take into account the objectives of the funding bodies as well as their own in making strategic decisions. There is the need for strong management as almost anything can be justified in such organisations (2002).
In its annual review for 2003 the Diocese of Southwark lists its main sources of income as that derived from parish assessments, ministry and other income such as a grants, for example. The sources of funding define the financial structure of the Diocese.
Expenditure went mainly towards ministry stipends, ministry housing, training and support, the national church and other departments which helped the Diocese to carry out its function. The following chart represents the breakdown of income for Southwark Diocese:
Figure 3.1 showing total income for the Diocese of Southwark (2003)
Source: Diocese of Southwark 2003
The greater portion of income was realised from the parishes and to a lesser degree income was received from grant making bodies and other charitable donations. The parishes realise their income from collections during services, through fundraising activities and from investments and donations.
The following chart shows the breakdown of expenditure for the Diocese:
Figure 3.2 showing expenditure for the Diocese of Southwark (2003)
The greatest expenditure falls within ministry stipends, that is, the money goes back to the work of the parishes. Larger amounts of money are also expended on ministry housing, training and support. Expenditure is significantly less in the other areas shown in the chart. A chart summarising the sources of funding and the relationship of funding between the Commissioners, the Archbishops’ Council, the dioceses and the parishes is displayed in the appendix to this research.
The preceding discussion on the source of funding has introduced the Church Commissioners. The role of this body cannot be understated and will be discussed in more detail.
3.5 The Church Commissioners for England
The Church Commissioners for England (the Commissioners) was formed in 1948 through the joining of two charitable bodies, the Queen Anne’s Bounty and the Ecclesiastical Commissioners. Their combined responsibilities were to improve clergy incomes and housing in areas of need and to redistribute the Church’s historic resources to make “additional provision for the cure of souls in parishes where such assistance is most required”. In other words it was their duty to provide for the welfare of ministers who were responsible for the parishioners.
The Commissioners are required by law to obtain the best possible long-term return from a diversified investment portfolio. The objectives of this was to meet their commitments, provide the maximum sustainable funding for other purposes such as support for the work of bishops, cathedrals and parish ministry ( 2003).
While the Church Commissioners have a legal obligation to the Dioceses in the Church of England the body which is entrusted, nationally, with the operations of the Dioceses is the Archbishops’ Council.
3.6 The Archbishops’ Council and the Central Board of Finance of the Church of England
The Archbishops’ Council was set up in 1999, under the Presidents of the Archbishops of Canterbury and York. The main purpose of the council is to “co-ordinate, promote, aid and further the work and mission of the Church of England” ( 2003). The membership of the Council is the same as that of the Central Board of Finance of the Church of England (the CBF). So among its wide-ranging duties the Council has oversight of the management of the funds invested with the CBF by the wider Church. These funds are managed on a day-to-day basis by CCLA Investment Management Ltd. Under the National Insitutions Measure, the Archbishops' Council works in conjunction with the Church Commissioners to determine the allocation of monies provided by the Church Commissioners in the support of parish ministries. Allocations are made to parishes according to where the Council feels the greatest need exists.
Two of the aims of the Council are:
“To give a clear strategic sense of direction to the national work of the Church, informed by an understanding of the Church’s opportunities, needs and resources and to
Encourage and resource the Church in parishes and dioceses to work as one body in witness, worship and service in today’s world.”
In order to achieve these aims the Council’s committees includes the Finance Division which assists the Council and the wider church with financial administration as well as advice on general policy matters. The Finance Committee is the executive body which overseas the work of the Finance Division. According to the 2003 around £17 million was provided in allocations in 2003, of which £15 million was given to those parishes deemed to be of greatest need. However, from 2004 the entire amount will be distributed selectively.
In 1999 the Church Commissioners passed responsibility for the Selective Allocation and the collection of Central Apportionment to the Archbishops’ Council (2001). Selective Allocations is the contribution to stipend support and the Central Apportionment is central contribution from dioceses which is used to fund training, central administration, grants and provisions, and clergy pension support. This apportionment is used to assess the wealth of a diocese. The Review also notes that during this time the Commissioners were also adopting changes of considerable magnitude. These included the reduction in stipend support for full-time clergy and the transfer of clergy future pension liabilities to dioceses and parishes. This shift in funding would influence considerably the budgets of dioceses.
Formerly, the formula used for Central Apportionment was based on three main factors. These were Diocesan Historic Resources Income, Parochial Ordinary Income and Potential Income. The proportions from each diocese were used to provide contribution to the dioceses.
According to the Archbishops’ Council the Selective Allocations formula used five diocesan factors establish a needs assessment. These are Diocesan Historic Resources Income, Potential Income, Unemployment, Giving in relation to Potential and OxLIP, a low-income predictor used to assess deprivation. Each factor was converted into a points score and parishes were awarded allocations if they fell below a defined score. These formulae for allocations and apportionment were reviewed by the Archbishops’ Council. In order to create more effective methods of assessment a new methodology was developed. It was decided that a calculation of diocesan total resource would be used in Central Apportionment and a diocesan total resource per minister for Selective Allocations. In this way it is thought that the dioceses with the lowest resources would benefit from available financial resources.
The diocesan total resource is calculated based on income factors which include diocesan income or income from real estate and investment, formerly known as Historic Resources Income, Parochial unrestricted investment income, which is income available from any purpose with figures derived from the annual parish finance returns and expected giving income which is the estimated income within a diocese if all members were giving at the national average giving percentage. This national average giving percentage is put at 5% of the average single person’s wage as set out by the Internal Revenue Service. However, their studies indicate that the actual national average giving percentage is 3%.
The Review Group concluded that the method of calculating the diocesan average personal income took into account low income and so the OxLIP factor should be removed from Selective Allocations (See Appendix 3). However, there are urban area dioceses with many Urban Priority Areas (UPA) for which this was not a welcome decision. This decision was on the other hand favourable to rural dioceses. This group has justified this action, which it aims to review continually, by saying that high deprivation goes with low income and high rates of non-taxpayers and so deprivation is accounted for. In the Diocese of Southwark the diocesan average personal income is set at Twenty-Seven Thousand Pounds (£27,000.00). The Archbishops’ Council have calculated the total giving as a percentage of average personal income per church member in the parishes in the Diocese of Southwark at between 3% and 3.5% (See Appendix 4).
The diocesan total resource when divided by the number of clergy in a diocese is used to derive the figure for the diocesan total resources per minister (See Appendix 5). This is applied to Selective Allocations which target resources for the dioceses with the lowest resources per minister. Need is interpreted as the inability of a diocese lacking in financial resources to support its parochial stipendiary ministry. In the Diocese of Southwark the total resource per minister is set at the highest level, more than Sixty-Five Thousand Pounds (£65,000.00).
The OxLIP method for the calculation of deprivation was deemed to be outmoded as it was base on 1991 Census data. The new method employs a more accurate and up to date index that was published by the Department of the Environment, Transport and the Regions in August 2000. This is known as the Index of Multiple Deprivation (IMD 2000). This index bases deprivation on low income, employment, education, health, housing and access to services. This employment of this new index in the calculation of dioceses which would benefit from Selective Allocations has seen the exclusion of the Diocese of Southwark while rural area dioceses such as Guildford have benefited.
3.7 The Church and the Environment
Recent research has been carried out (and is still on-going) by the General Synod of the church in recognition of the fact that the England which “the church exists to reach and serve has significantly changed”. The results have been published in a booklet entitled “Mission-shaped Church”. One of the recommendations of the report is for dioceses to engage in church planting and fresh expressions of church, that is, establishing new congregations within existing parishes. There is an ongoing process of collecting new and additional data on diocesan strategies with regard to this proposal.
The religious and the secular or business world are seen by some to be distinct entities and an attempt to juxtapose and compare the two could be seen as somewhat challenging to say the least. However, it has been observed that the environment in which the church exists is constantly changing as is also the case for businesses. Several authors have attempted to show the differences and similarities which exists between the religious and secular organisations. Essentially, such differences can be expressed simply in terms of that of the service or manufacturing sectors. Both types of organisations compete for resources and seek to gain a competitive advantage (1998). There is no tangible product on offer within the service sector. Therefore, competitive advantage would most likely be linked to the value the customers, those attending churches or benefiting from other services offered, place on the less tangible aspects of the organisations (2002).
In the manufacturing sector quality of service along with tangible goods has come to be an expected norm by consumers. Therefore, service and brand image are important considerations in gaining and maintaining competitive advantage ( 2002).
3.8 The Global Economy
In an article in The Guardian (May 3, 2003) the Revd. highlighted two of the key causes of the May Day protests in London. These were the growing gap between rich and poor worldwide, the global economic system which contributes to this. Debates focused on the markets ability to deal with poverty and ensure that there is fair trade between developed and developing nations. The general school of thought is that the global economy or globalisation and its effects are responsible for this state of affairs. The Christian concern arises out of a concern for the plight of the poorer classes in society. While the government’s view is that the market can deliver fair trade the Christian belief is that this can only be achieved, if at all, through a highly regulated market.
The increased trading (imports and exports) among the industrial economies has evolved into what can be described as the emerging global economy or globalisation. This, according to (2002) continues to be strengthened due largely to technological advancement and has resulted in increased competition in world markets.
There has been a range of opinions relating to the concept and definition of globalization. (2002) notes that the prevalence of globalization,
“reflects a widespread perception that in every area of life from cultural to criminal, from financial to environmental, there is a broadening, deepening and speeding up of worldwide interconnectedness.”
(2002) further adds that
“The sense is of a world being recast, through the impact of economic and technological forces, into a shared social and economic space.”
The business environment has become so complex and dynamic. (1994) view this as the ecletic nature of the environment and add to this notion by saying that the future is to be found in the intersection of changes in technology, lifestyles, regulation, demographics and geopolitics.
The Church therefore exists in a world which is constantly undergoing political, environmental, social and technological changes. These changes are reflected in the Church in both the local environment and at the administrative level. As a result of these changes it becomes necessary to analyse the external environment in which the Church exists. This is useful in placing the church within the context of the wider community in order to facilitate the process of developing relevant strategies.
An analysis of the macro-economical influences that impinge on the Church, involves the study of political, economical, social and technological aspects of the external environment. In addition the legal aspects as well as the effect on the environment are also important. This is referred to by (2002) as a PEST(LE) analysis.
Not only is it important to understand the nature of the environment it is also necessary to develop appropriate tools and frameworks of analysis. While the ability to understand the impact of the external environment upon an organisation such as the church will not necessarily guarantee strategic success, complete disregard to this phenomenon may well lead to abject failure. The external environment needs to be constantly monitored as it the changes in this environment which will influence decisions regarding strategic direction and change.
According to (2002) an analytic summary will give information regarding the strategic capability of the organisation, the relationship between key environmental influences, and hence the agenda for developing new strategies. Therefore, organisation should examine its strengths, weaknesses, opportunities and threats both internally and externally. The internal examination of the company which looks at its strategic capability and an analysis of the business environment is commonly referred to by (2000) as a SWOT analysis and this should be undertaken with the externally based PEST(LE) analysis.
Having completed these necessary requirements then the company would be able, through a situational analysis, to arrive at its objective or the goal it wishes to achieve, outline a course for planning and decision-making, these being its strategies for actions, review its accomplishments and along with feedback obtained exercise control over the organisation.
A popular framework for the analysis of the business environment has been developed by (2002). The following is a diagrammatical representation of the framework:
Source: Exploring Corporate Strategy, 2002,
While this framework can provide much valuable information it is important to note that it is no guarantee of an objective approach in ultimately formulating a strategy which may or may not be successful.
3.9 The PEST(LE) Analysis
Through a PEST(LE) analysis the church management is able to summarise the most important influences of the business environment and evaluate the potential impact of these influences on its organisation.
The organisation would seek to gain information from the environment. This would include information about the markets and competition, population trends, socio-economic trends and cultural practices. It would examine political and legal aspects of the environment. Increasing technological advancement would also bear and impact on the organisation.
In a convocation address held at the Union Biblical Seminary in Pune, India the Revd. (2003), a priest for more than 50 years in the Diocese of Southwark, describes this diocese of South London as being,
“…. irreversibly multicultural, multifaith and multiethnic. Peoples from all parts of the world of many cultures and many faith or of none go to make up the population.”
The implied unchanging nature of both people and faith require strategic development in addressing the new challenges facing the church. Any study of organisation which in this case happens to be the diocese of Southwark, would have to be undertaken bearing in mind three phases – the historic, that is, the past the impact on the present and the implications for the future.
3.9.1 Political
According to (1988) it has never been easy to reconcile the ideals of Christianity to political structures. Political structures and the Christian life are mutually exclusive concepts. He attributes this to two reasons. Namely, moral principles which might be applicable to an individual’s private life can be complex and difficult to apply corporate life. In addition politics is largely about power and so does not seem to suit the ideals of the New Testament with regard to the Christian life – “gentleness, humility, patience and love”. He goes further to note that
“… in the nineteen centuries that the New Testament was written, there have been significant changes in both the position of Christians in relation to government and in at least the theoretical structure of those governments under which most Christians live.”
Christians were urged to submit to the higher power as this was ordained by God and were not involved in the making of policy. He notes however, that by the fourth century, “Christians had begun to be both makers of policy and exercisers of power”.
By royal decree of Edward VIII the King or Queen of England is the Supreme Governor of the Anglican Church. Monarchs of the United Kingdom are restricted to be members of the Protestant faith, that is, Church of England. The Prime Minister of the UK has the right to appoint Bishops in the Church of England and also advises the Monarch on this issue.
Through the appointment of Estates Commissioners church’s endowments – lands, finance – and even its doctrine are under the control of the State. The lands and finance of Cathedrals are not however, under Government’s control. An elected Member of Parliament reports to the House of Commons on the finances of the Church of England ( 2004).
The Church of England is noticeably involved in the politics of the United Kingdom. Several bishops, including the Bishop of Southwark have seats in the House of Lords and make contributions to the debates involving Bills and topical issues.
In July 2004 the Rt. Hon. , Secretary of State for Trade and Industry presented the White Paper on Trade and Industry undertaken by the Department for Trade and Industry (DTI). Earlier in February 2004 at an Off Shoring Seminar () she said,
“Globalisation means greater growth, a better quality of life and more opportunities for all countries, poor and rich alike, to share in rising prosperity.”
In helping the state to play its role in international trade the DTI is holding seminars to which it invites faith leaders such as those in the Anglican church to help the UK in the development of overseas trade.
Because of the numbers of overseas entrants into the structures of the church it has become increasingly involved in issues of immigration and asylum and works with the government in formulating policies relating to these issues.
3.10 Economical
This included an analysis of the gross domestic product trends, interest rates, money supply, inflation, unemployment which will affect income levels and the stability of business activities. Such factors help not only to determine the consumer’s purchasing power but to place the church within the context of the business environment in which it is operating. At present the UK economy is said to be growing and is showing signs for further growth in 2005.
Normally, it is the gross national product (GNP), that is, the sum total of the goods and services that are produced by a country that is used to calculate the economic performance of a country. However, in the UK the gross domestic product (GDP) is used as this gives a more accurate calculation of the wealth of the nation. The ONS reported (609 August 2004, p.5) that preliminary figures for the first quarter of 2004 showed that the UK economy continued to rapidly following on from 2003. It also goes on to say that first quarter GDP data for the major economies such as the United States of America and Japan, which are a part of the Organization for Economic Co-operation and Development (OECD) showed that the world economy continued to grow quite strongly in 2004.
The Pound sterling fell against the Euro for most of 2003 but gained against a weakened US Dollar. However, in early 2004 the Pound continued to rise more prominently against the Dollar and also against the Euro. This is due in the part to the increase in interest rates which now stand at 4.75 per cent. Consumer spending has however, not been deterred by this increase. This spending pattern is largely influenced by increased consumer borrowing most noticeably through the use of credit cards. The report also goes on to say that real disposable income growth remained consistent with a moderate growth in spending.
Employment is reported to be high with the labour force employment survey standing at 74.7% in the period March to May 2004. The International Labour Organisation (ILO) unemployment rate stood at 4.8 per cent in the three months to May. On 12 July 2004 the Chancellor of the Exchequer reporting to the House of Commons ( 2004 ) said that inflation stood at 2 per cent and that the government’s monetary policy had met this target thereby achieving stability.
The British Broadcasting Corporation (BBC) News () reported that of HSBC said that the cost of servicing debt is low. So although there is a rise in interest rates consumers are still prepared to spend in light of low inflation and a relatively high rate of employment.
Increased trading between developed and developing nations has resulted not only in an exchange of goods but also of culture.
3.11 Socio-Cultural Factors
The analysis of these factors places emphasis on population and cultural traditions. It involves a study of population demographics highlighting growth, distribution and changes. Income distribution, social mobility, lifestyle changes, attitudes to work and leisure, consumerism and levels of education are also major factors to consider with regard to this factor. Ethnicity and culture are also important socio-cultural phenomena.
(2004) reported that the government allowed the Church to exercise social control. It was allowed control of much of education was responsible for anti-social behaviour and for the registration of marriages. Since 1660 the Quakers are the only other group who have been allowed to register their own marriages ( 2004).
3.11.1 Population Demographics
According to the Office for National Statistics ( 2002, December 2002) the size of the minority ethnic population was 4.5 million in 2001/02. This is 7.6% of the total population of the United Kingdom. The report further says that in Great Britain the ethnic minority population grew by 44% between 1991 and 2001/02, from 3.1 million to in 1991 to 4.5 million in 2001/02 (2002, December 2002)
The table below shows the break down of the UK population by ethnic group, 2001/02
United Kingdom
Percentages
Percentage of total population
Percentage of minority ethnic population
White
92.2
na
Mixed
0.8
11.0
Asian or Asian British
Indian
1.7
21.7
Pakistani
1.3
16.7
Bangladeshi
0.5
6.1
Other Asian
0.4
5.7
Black or Black British
Black Caribbean
1.0
13.6
Black African
0.9
12.0
Other Black
0.1
1.5
Chinese
0.3
4.2
Other
0.6
7.4
Not stated
0.2
Na
All minority ethnic population
7.6
100.0
All population
100.0
na
Table 3.1 showing the UK population by ethnic group, 2001/02
Source: Social Focus in Brief: Ethnicity 2002
Almost half of the group which described themselves as Mixed were from White and Black Caribbean backgrounds.
3.12 Age Structure
According to the ONS minority ethnic groups are shown to have a younger age structure than the White population ( 2001/02, 2002). This is partly due to the migration and fertility pattern of people who came from the Caribbean shortly after the Second World War and during the 1950’s. there were significant numbers of migrants from Pakistan in the 1960’s and Ugandan refugees in the 1970’s. Many of the Black Africans came during the 1980’s and 1990’s. By contrast the White population has the largest number of people (16%) aged 65 and over. This is followed by the Black Caribbean with 9% of people in a similar age category. This results from the early migration in the 1950’s.
3.13 Households and Income Distribution
The ONS report states that minority ethnic groups tended to have lower levels of household income than the White population. There is also considerable variations in the main sources of income. Pakistani and Bangladeshi households were the most reliant on social security benefits (19%) although they were more reliant than other groups for income from self-employment. Benefits were also a significant source of income (15%) for Black groups. Being the group with the older age structure pensions accounted for 13% of income for the White population as compared with 5% for the other ethnic minority groups. People from ethnic minority households were also most likely to live in low income households as against those from the White population.
ONS studies showed that Asian households tended to be larger than any other group 12. 2 % as compared with Black Caribbean and Other Black households which were about the same as White households with 2.3 people. Further studies show that more than half of families with dependent children headed by a person of Mixed origin (61%) or a Black Caribbean (54%) were lone parent families. Asians were the least likely to live in lone parent families. The White population had about 23% lone parent families.
3.14 Employment
A higher percentage of men and women from the White population were more likely to be economically active than from any other group. According to the ONS in 2001/02 economic activity rate stood at 85% for White men and 74% for White women. Black Caribbean women had an economic activity rate of 72%. The rates were lower for Asian women.
Ethnic minority groups also had a higher level of unemployment than White people.
3.15 Education
The ONS showed that in 1999 a higher percentage of girls than boys in the ethnic groups received five or more GCSEs at grades A*-C or the equivalent.
It also showed that Black pupils especially boys were also the most likely to be permanently excluded from schools in England than from any other ethnic group. Black African, Chinese, Indians and Other Asians were also most likely to have degrees than the White group. While Black Caribbean men were the least likely to have degrees.
3.16 Ethnicity
The Annual Local Area Labour Force Survey 2001/02, conducted by the ONS (2002) shows that in 2001/02 minority ethnic groups were more likely to live in England than in Scotland or Wales. They made up 9% of the total population in England as compared to 2% in Wales and Scotland.
The report also goes on to say the minority ethnic populations were concentrated around the large urban areas. Nearly half (approximately 48%) of the total minority ethnic population lived in the London region, comprising 29% of all residents. The following table shows the breakdown of ethnic groups in London.
Ethnic Group
Percentage
London
White
%
9.8
Mixed
%
35.8
Indian
%
43.3
Pakistani
%
19.6
Bangladeshi
%
55.8
Other Asian
%
63.1
Black Caribbean
%
59.2
Black African
%
77.5
Black Other
%
73.5
Chinese
%
35.5
Other
%
58.1
All minority ethnic groups
%
47.9
All ethnic groups
%
12.8
Table 3.2 shows the distribution of ethnic groups across Government Office Regions, 2001/02
Source: 2001/02,
The UK has had and continues to have a long tradition of successful migration and integration which has brought to it economic and social benefits. (June 2004, p. 3).
3.17 Technological Factors
New discoveries and development have resulted in the variation, speed and accessibility to technological knowledge. Information can now be accessed and disseminated easily. With the advent of the internet information is more readily available. Payments can be made via the Internet or credit card. Automation and mechanisation are now so far advanced that a wider cross-section of people is now using these inventions. Information about churches, their activities and the services that they offer are now available widely on the Internet.
3.18 Legal and Environmental Factors
The organisation has to be conversant with the legal requirements and implications with regard to national and international employment law as it is employing increasingly more people from overseas. In addition they would need to be conversant with government policy regarding foreign investors.
The Church also has to be seen to be involved with groups that are environmentally friendly. A company exhibiting environmental awareness would be in a better position to attract favourable attention. The product or service they offer would become synonymous with a concept that is good and which caters to the well-being of mankind.
3.19 Competition
While the general environment is important the organisations immediate or competitive environment is also important ( 1985). The Church of England is one of many such organisations which engage in similar activities. The leaders, and by the extension the ministers, of the organisation have been mandated with the ‘cure of souls’ ( 2003). There are other organisations such the Baptist, Pentecostals, Roman Catholics and non-denominational churches which view themselves in the same light, that is they offer the same services. There is, therefore, competition for members, that is, customers.
According to (1985) to compete in any industry organisations perform distinct activities. Activities over and above those of marketing and research and development for example are what (1985) sees as adding value for customers and these are the fundamental requirements of competitive advantage. Competition encourages organisations to seek out favourable competitive position in an industry. This enables the organisation to establish not just a profitable but also a sustainable position within the industry. The industry is impacted by what Porter describes as competitive forces.
3.19.1 The competitive forces
According to in both product and service industries the rules of competition are seen in five competitive forces. These are the entry of new competitors, the threat of substitutes, the bargaining power of buyers, the bargaining power of suppliers and the rivalry among the existing competitors. The following diagram illustrates this concept:
Figure 3.4 showing Porter’s Five Forces of competitive advantage
Source:Competitive Advantage, 1985
In any particular industry not all of the five forces will be of equal importance or even of any importance. The Church of England in particular the diocese of Southwark is no exception. The framework, however, places the organisation in a better position to see through its complex environment and to identify those factors that are critical to its success and will also aid in the formulation of strategies and innovative ideas. The impact of each force is dependent on the industry structure, that is, the economic and technical characteristics on which the industry is based.
Customer satisfaction is said to be important to the profitability of organisations. This is important but (1985) noted that it is also important to create value for both itself and the customer or members in the case of the church. The threat of entry refers to the possibility of new organisations entering the industry who will help to take away some of the value from existing organisations. The threat of substitutes refers to products or services which can satisfy the same customer needs. The intensity of rivalry refers to the competition between existing organisations within the industry.
Each organisation within the industry will be affected in different ways by changes in the environment. The following is a representation of the impact of some of the elements of the five forces on the Church of England and the Diocese of Southwark in relation to other church organisations in the industry.
Entry Barriers
Determinants of Supplier Power
Determinants of Buyer Power
SubstitutesRivalry Determinants
Capital requirements
e.g. rental or purchase of buildings
Continued funding
Access to distribution
Brand identity
Government policy
Supplier concentration
(number and geographical distribution of other churches/forms of religion)
Differentiation of inputs
(styles of worship and other services provided outside of worship)
Diversification of the population (customer)
Buyer concentration
Versus organisation concentration
Buyer volume
Buyer switching costs relative to organisation’s switching costs
Buyer information
Access to substitute products
Evangelistic (‘New wine’) culture
Sunday shopping
(high street shops, car boot sales)
House groups
Tele-evangelism
Alternative religions
Industry growth
(establishment of new churches)
Product differences
Brand identity
Diversity of competitors
Exit barriers
Table 3.3 showing the elements of industry structure within the Diocese of Southwark
Source: Competitive Advantage,1985
The key competitive forces or main trends which face the Diocese are funding, the availability of substitutes, industry growth, access to substitutes, differentiation of products, customer demand, diversification of the population, buyer (customer) switching costs and brand identity. These will therefore help to determine the organisation’s strategy. If the Diocese is able to find better strategies than their competing rivals, that is if they are able to understand and benefit from conditions in the industry better than others, then they might be able to gain a more profitable position in the long run. (1985) refers to this as sustainable competitive advantage.
However, because the business environment is constantly changing the organisation might also be affected by what can be described as otherwise unforeseen circumstances. Managers or the leaders of the organisation also have to give an account of their successes or failures. Therefore, information will be affected by the perceptions and expectations of leaders so that the environmental analysis might not always be completely objective.
(2002) notes that there are cases where organisations within the same industry do not necessarily compete on the same bases. They recommend the use of strategic group analysis to determine the main trend of competitive rivalry within similar organisations. Not all churches therefore will be competing against each other. They may offer different styles of worship which are desired by customers or members with different tastes. For example, not everyone who attends a Pentecostal church will wish to attend a Protestant church. Both organisations are competing for different segments of the market using their core competence or main distinguishing competitive factor (2002).
In addition to the general environmental analysis the organisation needs to know where it stands in relation with the business environment. It needs to assess its current strengths and weaknesses to deal with changes in the environment. It also needs to see if it is able to take advantage of opportunities that arise and also if it handle threats to its own competitive position ( 2002). This can be achieved through carrying out a SWOT analysis.
3.20 The SWOT Analysis
A SWOT analysis will enable the company to examine its situation and plan where it wants to go and develop its objectives. In so doing it will devise strategies on how to get there and the actions to take in order to do this.
3.20.1 Strengths
The notion of being established can be viewed as one of the strengths of the Church of England. It is well recognised and largely respected by society. This has also extended to the Diocese of Southwark. The geographically, each area of the UK falls within an Anglican parish or area that is served by an Anglican church or clergy. In this regard every member of a community lives within a parish and is entitled in many cases to benefit from the resources of that parish where possible. The style of worship is also the preferred choice of members.
3.20.2 Weakness
Paradoxically, one of the weaknesses of the church could reside in the its established nature or the image which this creates. The church is sometimes viewed as outmoded and slow in changing with the times.
It would need to reposition itself in the minds of people and in the society as a whole.
3.20.3 Opportunity
Through global colonisation the UK has been able to spread Anglicanism and so it is a recognisable brand on the world market. In the main its image in the countries outside the UK is differentiated and is thought by some to be elitist which can create opportunities as well as weaknesses.
Many people who come to the UK as Anglicans have already been introduced to the customs and values of the church.
3.20.4 Threats
New entrants into the business of religion have resulted in churches that are more charismatic and that are beginning to attract younger people as well as more people in the society than are currently attending the Anglican church.
In big cities such as London people are faced with a greater choice of activities to engage in and so are not in many cases strict adherents to the church. The environment in which the church finds itself is becoming more competitive.
The Diocese has a distinct style of worship with varied differences according to the orientation of members of particular parishes. It is also ubiquitous in that there are easily accessible places of worship. These are the critical successful factors, that is, the key factors for competitive advantage which are attractive to members of the congregations.
3.21 The Generic Strategies
Several authors, for example Ansoff and his matrix, have put forward strategies whereby organisations can compete. However, of University developed three generic strategies by which a company can analyse its competitive challenges, build market share and grow. According to (1985)
"the notion underlying the concept of generic strategies is that competitive advantage is at the heart of any strategy and achieving competitive advantage requires a firm to make a choice”.
A generic strategy can be used across many industries. Porter puts forward a model comprised of three major strategies bearing functional and business strategic possibilities. These are cost leadership, differentiation and focus. The following diagram represents these strategies:
Figure 3.5 showing Porter’s generic strategies
Source: Competitive Advantage, 1985
3.21.1 Cost Leadership
In this the simplest strategy by achieving the lowest cost in production a company can reduce prices or retain profit to fund research and development or to introduce new products into the market. This is done by operationally achieving economies of scale where production can be doubled without a doubling of costs.
3.21.2 Differentiation
With differentiation a product is made to appear to be different in the mind of the consumer. Such perception can be achieved by advertising for example as in the celebrity endorsement of Nike shoes.
3.21.3 Focus
With a focus strategy a company can concentrate on a market segment or product thereby creating a niche. Their corporate strength is derived from knowing the customer and the product very well.
As a not-for-profit organisation the Diocese of Southwark ideally could not compete on the basis of cost. As a religious organisation seeking to increase market share, that is, increasing number of its flock it would not compete based on a focus or niche segment. The ideal strategy that would be adopted to would be differentiation. In using this strategy to gain sustainable competitive advantage the organisation has to place particular emphasis on its resources. Therefore, the customer, employees and its financial and tangible assets are of extreme importance.
3.22 Culture
Several writers have highlighted the fact that culture and more precisely cultural differences affect the process of doing business as well as managing. It is the view that it is difficult to understand other cultures. As one colleague had pointed out to this author, “Never get married to a foreign because while they will be rolling down the aisle with laughter in response to a joke you will still be there thinking, ‘I didn’t get it’.”
The author became interested in the subject of culture and its possible effect on the business of the church because of informal observations made regarding the composition of the people who make up the congregations of the diocese as well as churches of other denominations. These observations have been made over a period spanning some twenty years which included visits to the country from the mid 1980’s.
3.22.1 Cultural Diversity
According to (2000) culture describes
“The customs, beliefs, art and all the other products of human thought made by a particular group of people at a particular time.”
Page 451
The Oxford dictionary defines culture “as a type or form of civilization”.
( 2000) defines culture as
“‘The collective programming of the mind which distinguishes the members of one category of people from another.’”
Page 25
Culture, therefore relates not just to the ethnicity or racial orientation but also to a mental conditioning which people undergo from birth. The agents of socializing such as parents and schools further equip individuals for integration in the wider society by advising on concepts such as good or bad, right or wrong, normal or abnormal. It is these national concepts which are internalised. Although individuals may exhibit traits that are peculiar to that person the national or regional cultures impacts greatly on behaviour and not the other way around (2000). This is what will therefore give rise to a true Brit, an original African or a real West Indian. This gives an indication of the groups of people who form the congregations of the C of E. The different or diverse races is further complicated by racial integration which has led to a greater degree of ethnic mixture and diversity of cultures. For example, as indicated in the categories used in the questionnaire.
According to (2000)
“The successful managers of the twenty-first century will be the culturally sensitive ones.”
He supports the view that competitive advantage can be gained from having strategies to deal with the cultural differences that arise.
Lewis also believes that as cultural diversities will not disappear anytime in the near future strategies cannot be adopted based on the notion of mutual understanding.
He notes that people from different cultures share basic concepts but view them from different angles and perspectives which be the cause of what another culture might think irrational or a contradiction of the other might hold sacred.
Management can be assisted in planning and decision-making by focussing on the roots of national behaviour both in business and society as this can help them to foresee and predict with some degree of accuracy how others will react to plans that will affect them. This will help eliminate what is referred to as culture shock
By its nature and structure the Anglican Church can be regarded as an international business. However, the church used to be exported through colonisation and people visiting the church and taking its teachings back to their own congregations in other countries. Now the cultures are being imported into the country and this has resulted in the need for greater understanding of cultural diversity.
3.22.2 Classification of Culture
Culture is commonly determined or defined on a national basis. However, (2000 ) points out that this could lead not only to making potentially dangerous inaccurate assessments but could reveal unexpected exceptions. Generalisations can be made but in order to avoid a stereotyping it should be noted that there are regional variations as well as other classifications of culture. However, studies show that groups have certain basic beliefs and assumptions which can which are revealed through their behaviour. (2000 p.3) defines culture as representing one’s outlook and worldview.
Regional
Cultures can be classified according to the geographical region of a country. For example, there are Londoners in the south of England as against say those in the north such as in Yorkshire.
Corporate
The corporate or business culture is more distinctive in a country such as Japan. However, there are also corporate cultures embodying, for example, the financial sector – accounts – in London. (2000)
Family
In European countries such as Spain and China family countries are very strong. ( 2000)
Individual
The individual culture, highly rated in the UK, for example, where an individual is known for his or her own distinctive contribution. (2000)
Gender
Another significant and evolving culture is that of gender. For example, one may find that a woman from the Caribbean will share similar views as against that share by a woman and a man from the Caribbean. The author has also observed that some women from the Caribbean are of a similar mindset to those of women in the UK.
Lewis (2000) has divided the world’s cultures into three broad categories. These are linear-actives, multi-actives and reactives. It must be noted, however, that regional differences, education and social orientation are some of the factors that will result in exceptions to these generalised divisions.
Linear-active Culture
In a linear-active culture “people are task oriented, highly organised planners, preferring to do one thing at a time in the sequence shown in their diaries”. Examples of these are the Germans and the British. The significant characteristics of people in this culture are that they organise their time sequence according to their activities and thereby concentrating on one thing at time. The idea is that this will lead to more efficient method of operating.
Multi-active culture
In this type of culture people “tend to do many things at once, often in an unplanned order”. Generally they are people orientated and extrovert. For example, the Latin Americans, Africans and people of the Caribbean. The people of this culture organise their activities so that they are doing several tasks at once and usually in an unplanned order. They are generally very flexible. They are not very interested in schedules or punctuality. This is more pronounced in Africans and to a lesser extent in those from the Caribbean.
Reactive culture
According to Lewis the people of the reactive culture tend to
“Rarely initiate action or discussion, preferring first to listen to and establish the other’s position, then react to it and formulate their own”.
Examples of this type of culture are Japan and other East Asian countries.
These distinctions point out that language and communication are also important aspects of culture.
2.23 Language and Communication
A common feature of linear-active and multi-active cultures is that they focus on dialogues while the dominant pattern of reactive culture is communication in monologues ( 2000).
While we can more readily adopt some superficial behaviour such as having a cup of tea without prejudice to our core beliefs. Lewis goes on to point out that while different cultures may share concepts such as honour duty, love, justice and gratitude it is the notions or perceptions of these concepts that are distinct among the groups.
So for some individuals silence could indicate that one listens and learns while talking a lot could be seen as an expression of cleverness and to some, perhaps egoism and arrogance. In some cultures silence is not only used to protect one’s individualism and privacy but it also used to show respect for the individualism of others (2000).
Figure 3.6 showing cultural frame of reference
Source: Exploring Corporate Strategy, 2002
The individual influences national or regional culture, organisational field, functional or divisional culture and organisational culture.
In the national or regional context people have differing attitudes to work and authority, for example. This is important as societal values change over time. Also countries which operate on an international basis will be faced with differing standards and expectations from the individuals of different cultures (, 2002; 2000)
The organisational field describe a community of organisations with similar values. For this work the ecclesiastical and affiliated institutions would be included.
The functional or divisional cultures comprise the sub-cultures that exist within the organisation. These may relate directly to the structure of the organisation.
The organisational culture is the deeply entrenched values and assumptions of the organisation. use 1997 conception of an organisation as consisting of three layers. These are outer layer which depicts values, the inner layer depicting beliefs and at the core, the paradigm. It is this core or paradigm which forms the cultural web.
3.25 The Cultural Web The values of an organisation are easily identifiable and are often written down as statements about the organisation’s mission and objectives. For example, in the Diocese of Southwark states that it is an equal opportunities employer. Some of its beliefs include making only ethical investments. At the core is the taken for granted assumptions or the way we do things here, that is, the paradigm. The cultural paradigm is comprised of various sub-divisions or sub-culture. The following is a diagrammatical representation of the cultural web: These are the stories, rituals and routines, symbols, power structures, organisational structures and the control systems.
The following depicts the cultural web of the Southwark diocese:
Figure 3.8 showing the cultural web of the Diocese of Southwark
The changes in the environment in which the church operates will therefore, affect its cultural web or taken-for-granted assumptions of the way it operates.
According to (2000) the pattern of beliefs, values and learned ways of coping with experience have been developed during the course of an organisation’s history. It is these values and assumptions and ways of coping that will contribute to the assumptions made by management and the way in which it responds to such environmental pressures. The organisation may also be inadequate in the way it deals with external pressures because the way it learned to deal with pressures of the past are inadequate for dealing with pressures of the present. Change becomes more difficult where there is the need to undertake fundamental strategic change which may result in a change in the underlying assumption on which the organisational culture is based. According to (2004) the organisational culture of the C of E reflects the maintenance of “the expectations of the historic, white educated English norm regardless of the make up of a congregation”.
3.26 Change
(1997) sees the measurement of management performance as being at the forefront of business agenda and is moving away from traditional financially-based measures to a combined financial/quality/people measurement of success and health in a competitive market.
Since the beginning of the 21st Century the development of organisation structure and management has evolved from Scientific Management (1947) with bureaucratic organisations and rigid hierarchies and reporting lines through decentralization continued through to the 1960’s the entrepreneurial organisation (which began in the 1920’s), excellence and flatter hierarchies ( 1954; 1989)
Organisations change and evolve in the pursuit of excellence and in order to survive in the dynamic business environment. Customers change, tastes change and the company must change in order to gain or maintain competitive advantage. According to 2004, change has become a way of life not just because organisations change but also partly because over the past twenty years there has been a continual change of management styles such as culture change programmes, total quality management and business process re-engineering.
3.27 Organisational Development
Organisational structure and arising out of this, organisational development (OD), are seen as important factors in the issue of change. Organisational development is a continuous process for monitoring the need for change within and organisation. It should form the basis of pattern of change and development.
(2000) (1995) who put forward the view that OD is a planned systematic organisational development strategy which takes into account organisations and people, people and organisations and how they function. It applies a commonsense approach to change using organisational dynamics and behavioural sciences. Change focuses internally on the resources of the organization and externally on the environment or industry as a whole ( 2002).
3.27.1 Organisational Learning and the Learning Organisation
Many definitions or concepts have been put forward to help to explain organisational learning. However, according to (2000) it is important to note that there are distinct differences between organisational learning and the learning organisation. In this regard (1997):
“Organisational learning is a concept used to describe certain types of activity that take place in an organisation while the learning organisation refers to a particular type of organisation in and of itself.”
Organisational learning therefore describes an organisation that is taking deliberate, systematic steps to promote learning while the learning organisation which has achieved the ability to continuously change and develop.
1994 describe change as the organisational transformation brought about by the discrepancy between the pace of change in the industry environment and the pace of change in the internal environment. In striving for success organizations work at bridging the gap between their core competencies, what they do well, and innovating for the future (1996). The joint challenge for efficiency and innovation calls for increasing learning. Learning calls for an examination of the assumptions about the organisation and their strategy.
As the organisation learns it will change. There are two theories regarding change. One places emphasis on the systems and processes and the other places more emphasis on the people involves. In order for an organisation to succeed and to achieve synergy change must strike the balance between the people and the systems and processes.
The greater the degree of change the more likely it is that multiple approaches to change will have to be employed.
3.28 Change Management
According to (2000) change can be planned or unplanned. set out a rigid framework but because of dynamism change and strategy has to take this into account. Vision is important to strategy. has developed what they call strategy lenses.
In order for change management to be successful the skills for implementation should therefore be taught widely across organisations and not just to the top management levels. They add that now change management has become a part of the “generic managerial toolkit”.
According to 2002 any strategy for change and hence change management must follow the paradigm or cultural web.
1997 highlights the main features of recent change as summarised below:
- Delayering to flatter structures
- Change to multiple reporting relationships
- Jobs designed to grow
- Increase in job flexibility
- Increase in organisation flexibility
- Increasing recognition of project and teamwork
- Increased use of technology
- Focus on roles rather than jobs
- Need for clear, measurable and flexible standards of performance at all levels
(2002) cites (1975) who defines change management as:
"The activity of people who have been given the responsibility to achieve required changes in the behaviour of organizations or specific groups of people."
Logically, a change programme in an organisation should begin with an assessment to establish a starting point. When key issues for change have been established action can be taken. Such action should be timely, measurable and produce controllable outcomes.
The analysis of change should address questions such as:
Where are we now?
Where do we want to be?
How will we get there?
How will we know we are there?
The assessment or management of the continuous process of change would therefore involve a situational analysis, stated objectives, adopted strategy, a time-frame and feedback or control system.
3.28.1 Planning For Change
Change has elements of a marketing plan. The situational analysis calls for an overview of the general environment and the specific environment in which the company operates. This calls for an audit of the firm or SWOT analysis to identify the strengths and weaknesses of the firm, the opportunities which present themselves and the threats which confront them. In this way management can identify the gaps and make assumptions which reflect one's expectations about future and uncertain events (2000).
The stated long- and short-term objectives represent steps to move the firm from where it is to where it wants to be. Short-term objectives need continuous reappraisal and updating long-term objectives change little from year to year.
The core strategy should be clearly stated, for example, in the vision or mission statement.
The actions should be achievable or measurable and a specific time-frame should be given for a completion of a task or project.
The span of control would ensure that the activities are being carried out according to plan. (2002) note that some writers see strategic change as an extension of the strategic planning process and in terms of behaviours and assumptions associated with organisational cultures. They advocate further that change should not be planned or rigid. In volatile environments organisations should become learning organisations, that is, they should be sensitive to changes in the environment and be able to adapt continually to these changes.
3.28.2 A Framework For Managing Strategic Change
When the method for change has been adopted this has to be carried out in a framework suited to the organisation. Ideally, think that change processes should be base on the following premises:
- Strategy to be followed
- Commitment to change by management which is then communicated to others
- Approach taken to manage change will be context dependent. This would mean the adoption of different approaches to different styles of change.
The following is an example of a change management model
The types of strategic change will influence the styles of change. Change is mainly incremental but in some cases it is transformational (radical), involving changes in the taken for granted assumptions of the organisation.
Once a decision for change is adopted the consensus is that such change should be managed in order to eliminate chaos and ensure a smooth transition. According to 2002 the processes or approaches to managing change include the following:
- Changes in structure and control systems
- Styles of managing change
- Organisational routines
- The use of symbolic and political activity
- Means of communication
- Other change tactics
3.29 The Change Kaleidoscope
Balogun and Hailey have developed another theory for the management of change based on the cultural web. This they refer to as the change kaleidoscope. This is represented below:
Figure 3.9 The Change Kaleidoscope
Source: 2004, Exploring Strategic Change
Their context-sensitive diagnostic framework is based on the premises of the need for an understanding of the organisation’s competitive environment or external strategic context and the need for change, the internal organisational context and the vision for the future of that organisation.
The outer ring of the kaleidoscope represents the external strategic environment. The middle ring represents eight aspects of organisational culture, capabilities and current situations. These features will assist a change agent, that is the person, responsible for any change programme, to adopt the best change approach for a specific situation.
The eight contexts include time, scope, preservation, diversity, capability, capacity, readiness for change and power. These do not carry equal weight in all organisations. The importance depends on the organisational change context. As its name implies its configurations and emphasis will continually shift.
Time focuses on how quickly the organisation needs to change, whether there is a crisis or should it be a long-term strategic approach. The scope refers to the degree of change that is needed. That is, should change be transformational or incremental. Preservation takes into account the organisational practices or assets need to be maintained to ensure continuity, stability and identity of the organisation.
Diversity looks at the differences and similarities of staff, professional groups and people involved in the organisation. It emphasises national or regional sub-cultures, norms, values and attitudes. Capability refers to the managerial and personal capability to implement change. Capacity refers to the human, time and financial resource that the organisation has at its disposal to implement change. Readiness takes into account the personal and stakeholder readiness for change within the organisation. Power focuses on the seat of power within the organisation and how much power the change agent leader would have to impose changes ( 2004).
The inner circle provides answers to whether or not the change should be radical, fast or developed in stages and slowly implemented. These six implementation choices are set out as the change point, path, style, target, levers and roles.
The change path refers to the type of change which is to be undertaken in terms of the natured and desired end result of the change. This is the precursor or enabling stage to the introduction of the type of change. The start-point refers the point of implementation of change, whether it should be a top-down or bottom-up process. The style refers to the method of change management. The target refers basically to the requirements for change, for example, change in attitude, values or behaviour. The change lever acknowledges the fact that due to the existence of organisational sub-cultures change cannot take place in isolation. Change must be deployed across the political and cultural sub-systems, for example. The role refers to the change leader or the personal given responsibility for the change.
3.30 Styles of Change Management
(2002) have identified five distinct styles or methods of managing change. These are also included in the methods of controlling resistance to change as put forward by 1979. They are:
3.30.1 Education and communication
This involves the explanation of the reasons for and the means of change. This can take place through the use of memoranda, reports, one-to-one discussions and group presentations. It is assumed that if the employees have the full facts placed before them then this could reduce resistance to change. However, where there are large numbers of employees it is costly and time consuming to brief each employee successfully. And in a climate of mistrust an approach like this may not result in bringing about change successfully.
3.30.2 Collaboration or participation
In order for change to be more successful it is desirable that the ownership of change should be shared at all levels. Everyone who will be part of this change should be involved. If people capable of making a valid contribution leading up to the decision process for the adoption of change they are less likely to resist the outcome of a decision to which they have contributed. This allows individuals to utilise their knowledge and skills and become more committed to the change. However, this approach can encourage compromise on decisions and can be time consuming.
3.30.3 Intervention
In this respect a facilitator or change agent is used to introduce elements of the change process. Counselling and training are mechanisms that can be used to co-ordinate the processes of change. This can be helpful especially in cases where fear and anxiety are high among employees.
3.30.4 Direction
This involves the use of personal managerial authority, usually top management, to outline clearly the future strategy and how the change will occur.
3.30.5 Coercion
Where management takes the approach to autocratically issue, without recourse to consultation or the views of others, statements about the course and nature of change this can become coercive. This can be advantageous where it is necessary to institute change quickly and can help to overcome resistance. However, it can make people become angry and this can be a serious drawback.
3.31 Leadership And Management Style
Whatever method chosen to institute change will be affected by the behavioural approach of top management or the chief agent of change. This is reflected in their leadership or management style. According to (1990) leadership and management are two distinct but complementary systems. Management is concerned with planning, controlling and putting appropriate systems and structures in place. Leadership, on the other hand, has more to do with anticipating change, coping with change and maintaining the vision of the organisation. Generally, leadership is an agency of change and should be proactive and inspirational to others.
3.31.1 Styles of Leadership
(2000) identifies several styles of leadership. These are:
The chosen leader or 'one best way' of leadership
The behavioural style approach
Contingency theory
Situational approach
3.31.2 The Chosen Leader Or 'One Best Way' Of Leadership
(1948) and (1959) conducted independent reviews on published material about personality as a factor in leadership. They concluded that personality had a minor role to play in the shaping of leadership behaviour. According to possession some combination of personality traits does not prepare a person to be a leader. It is important that a leader's personality be compatible with the personal characteristics, activities and goals of the followers. The leader should also know how to follow. He noted that personality traits should be mixed with abilities or skills. He noted that the following are factors linked with leadership: activity, dominance, self-confidence, achievement drive and interpersonal skills.
Ten years later (1986) meta-analysis of the relationship between personality and leadership found that leaders had the following six traits to a greater extent than non-leaders: intelligent, extrovert, dominant, masculine, conservative and better adjusted. (1991) also compared traits of leaders with those of none leaders and suggest that there are six trait that leaders possess: intelligent, desire to lead, energy and ambition, self-confidence, honesty and integrity and job-related knowledge.
3.31.3 The Behavioural Style Approach
This advocated that leadership processes did not reside in just one person. This could be cultivated as distinctive patterns of behaviour. These were based on the autocratic model where subordinates were not given opportunities to participate in the decision-making process and their efforts were not recognised or rewarded. Under a democratic system subordinates participate and contribute ideas to the decision-making process.
3.31.4 Contingency Theory
Because the above approaches did not prove satisfactory in their explanations of leadership styles there was the general belief that particular circumstances or situations in which individuals found themselves would dictate their approach to management and leadership.
According to (2000) contingency theories state that there are a number of contingency variables that impact the organisation, for example, growth, size, and diversity, the nature and impact of the environmental factors that act upon it and the level of complexity of the technologies it uses. They cite Vroom and Yetton who think that the effectiveness of leadership style or behaviour will be contingent on the situation in the environment in which the leader finds himself. Examples of these are the power base in the organisation, the influence of individuals or groups and the balance of these individuals or groups. This calls for flexibility of leadership. Ultimately, the size of the organisation or the leadership traits will not matter it will be the prevailing organisational situation that dictates the style.
3.31.5 Situational Approach
(1973) have been credited with one of the best situational approaches which place leadership on a continuum. To the left-hand side of the continuum there is an autocratic style and to the right-hand a democratic or participatory style. There are varying degrees of influence in between. As one moves along the continuum there are areas where there is greater freedom for leaders to areas where there is greater freedom for sub-ordinates.
(2000 ), however, argues that successful strategies cannot necessarily be prescribed. From studies conducted on many Western companies he concluded that successful companies did not start out with detailed plans. Instead their strategies emerged over time from the pattern of decisions that were taken in relation to the most important areas of the organisation. He advocates that planned strategy is about control while emergent strategy seeks to find the most appropriate strategic fit of the organisation to its environment.
This is also supported by (2002) that a strategy which is employed by organisations is that stretching its capabilities either in ways which competitors find difficult to match or in new and innovative directions. In this way the organisation can gain strategic fit. In this way the organisation’s strategy matches changes in the environment and provides it with a sustainable competitive advantage.
Chapter Summary
The Diocese of Southwark is enveloped in a dynamic external or macro-environment and the internal environment of the Diocese is a microcosym of its external environment. There are varied sources of funding within in Diocese which are vital for their operations and long-term survival. Changes are taking place within the Diocese which impact the sources of funding and the allocation of funds from other bodies to the Diocese and from the Diocese to areas of its work. Academic frameworks exist which are useful in placing in perspective the role concerns facing the Church as an industry and the Diocese as it exists within this environment.
The changes in the environment affect the Diocese and its resources. The literature points out that organisations need to change and develop in response to the change in the environment. In order to achieve such change the organisation needs to identify the areas of need and adopt strategies which can accomplish the desired change. Chapter 4 presents specific findings through primary and secondary research into aspects which affect the organisation and its resources.
Chapter 4 – The Research Findings
Following the review of literature the findings from the questionnaires and the interviews were compiled and analysed. The stated objectives were used to arrive at questions for the primary research which consisted of questionnaires and interviews. The purpose of this analysis is to organise data systematically and present the findings by way of charts tables and narrative description (1998; 2000). In this way the categorised data will allow for analysis, comparisons and contrasts to be made ( 2000).
In this chapter the analysis of the results should add further insight to the findings in Chapter 3.
Question 1.
Figure 4.1 showing percentage of male and female parishioners
Source: The Author
Figure 4.1 shows the percentage number of male and female respondents. One hundred and nineteen (63%) of the respondents were female while the lesser amount 71 (37%).
Question 2
Figure 4.2 showing marital status of parishioners
Source: The Author
Figure 4.2 shows the marital status of the parishioners by percentage. The total figures are shown in Table 4.1
Married
Single
Divorced
Separated
Widowed
116
56
7
4
7
Table 4.1 showing the marital status of the parishioners by number
Source: The Author
Just over 50% of the parishioners are married with singles accounting for just under 50%.
Question 3
Figure 4.3 showing ethnicity of parishioners
Source: The Author
Just under half or the total number of parishioners classify themselves as British White. In the ‘Other’ category one person claimed to be British/Irish White. Cumulatively more than 50% could also be classified as ethnic minorities.
Question 4
Figure 4.4 showing number of years respondents have been resident in their parish
Source: The Author
Figure 4.4 shows the number of parishioners have been resident in their present parish. The number of people living in the parishes for between one and 5 years is just slightly above (44) that living in the parishes for over 30 years (38).
Question 5
Figure 4.5 showing the number of years that parishioners have been attending their parish church
Source: The Author
Figure 4.5 shows that the majority of the respondents (46.8%) have been attending their parish church for between one and five years.
Question 7
Number of Parishioners
Self-employed (With Employees)
1
Self-employed (Without Employees)
3
Full-time Employment
101
Part-time Employment
27
Unemployment
3
Retired
41
Sick/Disabled
3
Student
7
Other
4
Total
190
Table 4.2 showing employment status of parishioners
Source: The Author
Table 4.2 shows that most of the parishioners were in full-time employment. Just other 50% were retired by comparison with this figure.
Question 8
Number of Parishioners Professional/Managerial
98
Skilled Labour
15
Manual Labour
8
Student
7
Other
(This included some describing themselves as Civil Servants, cleaners, housekeepers, mothers office worker and support workers)
21
Table 4.3 showing occupation of the parishioners
Source: The Author
In table 4.3 the results indicate that over 50% of the parishioners were in managerial or professional capacity. This is compared with 4% who are engaged in manual labour.
Question 8
Figure 4.6 showing housing accommodation of parishioners
Source: The Author
In figure 4.6 it is shown that 140 or 73% of the parishioners owned their own houses. The results do not indicate the ethnic proportions or age groups of those who own their own homes.
Question 9
Figure 4.7 number of parishioners living in own parish or outside parish
Source: The Author
Figure 4.7 shows that just over 75% of the parishioners live in the parishes in which their church is located.
Question 10
Figure 4.8 showing friends and social contacts who attend the same church as the respondents.
Source: The Author
Figure 4.8 shows that a significant number have friends who attend their own church. However, 13% indicate that they have no friends in the church.
Question 11
Figure 4.9 showing frequency of attendance at church by respondents
Source: The Author
Figure 4.9 shows that majority of the respondents (62%) attended church regularly. The 11% who ‘Hardly Ever’ attend is less than the number of those who indicate that they have no friends in the church.
Question 12
Figure 4.10 showing church attendance before attending present church
Source: The Author
Figure 4.10 shows that an equal number of respondents attended a church prior to attending that in their present parish.
Question 13
Figure 4.11 showing church attendance within or outside the UK
Source: The Author
Figure 4.11 shows that 136 (72%) of the respondents attended church within the UK as compared to 28% who had not.
Question 14
Links with Other Dioceses
Links with Other Ecumenical Bodies
Parishioners who maintain links
36
44
Parishioners who do not maintain links
154
146
Table 4.4 showing links with other dioceses or ecumenical bodies
Source: The Author
The responses to questionnaire items 13 and 14 are presented in Table 4.4. The results indicate that most of the parishioners did not maintain links with dioceses or ecumenical bodies outside of the UK.
Question 15 and 16
Figure 4.12 showing changes in the community and church
Source: The Author
Figure 4.12 shows the responses to questionnaire items 15 and 16. Whereas approximately 55% indicate that they did not see any changes in the community 53% indicated that they had seen changes in their churches.
Question 17
Figure 4.13
Source: The Author
Figure 4.13 shows that the majority of the respondents regarded their church as mainly a place of worship. It should not noted that some respondents did not treat each response as discrete variables. Some indicated that they saw their church as being not just for a sole purpose. For example, some saw their church as being a place of worship as well as a place for baptisms, weddings, funeral and also as a focal meeting point.
Some of the responses to the ‘Other’ category indicated that the church and the halls associated with the churches were used to house other denominational groups, educational projects such as children’s play group, community events such as line dancing put on by clubs in the community.
Question 18
SA
A
ND
SD
16
53
83
30
8
My church meets my spiritual needs
29
86
44
27
4
27
161
68
30
4
I can make a difference to my church
24
86
40
37
3
My church makes a difference to my community
18
98
59
8
7
SA
=
Strongly Agree
A
=
Agree
N
=
Neutral
D
=
Disagree
SD
=
Strongly Disagree
Table 4.5 showing the attitude of parishioners to the image of the church and their personal spiritual needs
Source: The Author
In table 4.5 the Likert scale was used to test the attitudes of parishioners to church on a spiritual basis. While the majority agreed that their church met their spiritual needs they did not see where it was different to any other church. A significant number, however, agreed that they could make a difference to their church, their church made a difference to the community and that they should invite others to attend church.
Question 19
SA
A
ND
SDa.
Financially, I should give to the church as I am able
36
94
38
18
4
b.
I should only tithe
9
21
92
48
20
c. My giving is dependent on how I feel at services8
32
51
59
40
d.
The Church of England is a ‘rich’ church
27
52
65
38
8
e.
The church needs my individual financial support
22
86
48
30
4
SA
=
Strongly Agree
A
=
Agree
N
=
Neutral
D
=
Disagree
SD
=
Strongly Disagree
Table 4.6 showing attitude of parishioners towards finance and giving to
church
Source: The Author
Questionnaire items based on the Likert scale were also used to rate attitudes of the parishioners towards giving. While the majority thought that they should give to church it was mainly as their were able as compared to the number who were neutral with regards to tithing. Taken together the ‘Strongly Agree’ and ‘Agree’ categories indicate that 42% thought the Church of England was ‘rich’ as compared to 24% who did not agree.
Question 20
Table 4.7 below lists some of the responses that were given as strengths and weaknesses of the church.
Strengths
Weaknesses
Inclusiveness
Lack of sufficient funds
Friendship
Lack of attention to current affairs
The people
Fear of modern changes
A place to worship freely
Diversity is not necessarily a good or positive thing
Tradition
Lack of communication
Good leader (The Minister)
Congregations are not united
The diversity of the congregation
Gossipying
Helps to maintain community spirit
Too few members
Does not take risks
Racial prejudice
Unable to attract larger numbers
Needs to change to get younger members
Slow to accept change
Table 4.7 showing parishioners’ views of strengths and weaknesses of thechruch
Source: The Author
Analysis of Interviews
Interviews were carried out with personnel from the Archbishops’ Council. They will be referred to as Interviewee 1 (A finance personnel) and Interviewee 2, Robin Stevens, National Stewardship Officer
In the Diocese of Southwark interviews were conducted with Simon Parton, Company (Diocesan) Secretary, Larry Bain, Diocesan Stewardship Resources Officer and the Bishop of Southwark, Dr. Tom Butler.
Interviewee 1 (Finance Personnel)
Interviewee 1 lists the sources of finance of the Council as consisting of contributions from the Church Commissioners, collections of apportionments or contributions from the dioceses of the Church of England and from property and other investments.
The dioceses contribute some £25 million and Church Commissioners a further £25 million. The main expenditure is realised in the form of allocations to dioceses, training of candidates for ministry in addition to operation expenses. Appendix 6 shows a list of the movement of income and expenditure between the Archbishops’ Council, the Church Commissioners, the Dioceses and the Cathedrals.
When asked about the cuts in allocation of funding to dioceses it was pointed out that the new deprivation measure that was used in calculating parishes the were most needed had resulted in some dioceses not receiving as much money as the before. Some, for example, Southwark would not be receiving any as of this year.
When asked if there were measures in place to help alleviate the shortfall that would be experienced by some dioceses he said that some allocation was made but this was to fund mission in parishes and not to be used to off-set working expenses. Dioceses therefore needed to engage in investment management. He added that a Diocese such as Guildford which is though to be richer than Southwark would benefit from allocation of funds based on need using the new indices for deprivation. Factor such as proximity to services such as post offices and doctors’ surgeries were being considered. In Southwark the population was thought to be able to access such services easily. In addition the average wages in Southwark were thought to higher than in other areas.
Interviewee 2 – Robin Stevens, National Stewardship Officer
In answer to the query about sources of funding and stewardship Mr. Stevens responded that the Council offered advice and support to dioceses in setting up programmes for funding. These included grants from the bodies such as the Church Urban Fund, fundraising events and legacies from parishioners.
He was asked about the effectiveness of such programmes and how this was measured. He responded that if the giving rises above the rate of inflation then that is an indication the programmes are effective as given is increasing not just in line with or below but above the rate of inflation.
Mr. Simon Parton, Company (Diocesan) Secretary, Diocese of Southwark
In answering the query about funding in the Diocese Mr. Parton responded that the diocese is funded through income from parish assessment, investments and grants.
When asked what constituted our resources he said these would include clergy, laity, money and technology. He added that much of our expenditure went into these resources.
He was also asked what were the projections regarding the level of future income for the Diocese. He responded that according to the draft 7-year budget the Diocese would be needing in excess of £18 million to cover its expenses by the end of the end of the period.
The Rt. Revd. Dr. Tom Butler, The Bishop of Southwark
In an interview the Bishop of Southwark, Dr. Tom Butler, said that traditionally the Diocese is funded through grants from the Church Commissioners, income from Diocesan investment and the live giving of parishioners. He went on to add that until 20 years ago the Church Commissioners provided more than 50% of the total. Until 2000 they provided more than £2 million. However, now this has been reduced to zero.
The two overriding reasons for this are that clergy and clergy widows are living longer. Therefore, half the clergy are retired and pensions need to be found. The bulk of the money from the Church Commissioners was used for pensions. The basis for the residue of Commissioners funds that was selectively allocated has been changed. The money is no longer allocated to the poorest parishes but to the poorest dioceses. The wealth of a Diocese is calculated based on the basis of the population times the average income. The problem arising for the Diocese of Southwark is that it has many poor parishes and in addition it is a disproportionately poorer class of earners who are its worshippers and who do not share the average wealth of south London suburbia.
This poses a further challenge where the Diocese needs to realise over £12 million per annum from live giving. The Diocese has developed several strategies for meeting this challenge. With the aid of its Communications and Resources department it has embarked on a programme of stewardship.
Dr. Butler was asked about the social implication for the population change in England and in particular the Diocese of Southwark. He said that the Diocese had some of the most deprived estates in the Europe as well as some of the most prosperous communities in the United Kingdom. In addition it was a haven for refugees and asylum-seekers. The inner-city sub-urban parishes were also seeing an influx of Anglicans from overseas, especially West Africa.
Dr. Butler points out that it is the “disproportionately poorer earners” who are the worshippers in Southwark and he adds that they “do not share the average wealth of south London suburbia”. When asked he said that it would take over £14 million per annum to carry out the work of the Diocese and the aim was to raise £12 million per annum through the direct giving of its members. He says that it is urban congregations who are less wealthy who are more generous individually in giving to the church. The congregational numbers being modest in urban parishes, these are financially subsidised willingly by larger suburban churches.
The Diocese he says relies on regular giving from parishioners in some form of pledged scheme. He notes that newcomers need time to become established into the congregations and also to decide to contribute in a planned and systematic way. Also the in cultures from which some of these come giving in this way might not have been the tradition. Therefore, financial growth lags behind numeric growth.
When asked about the strategies for addressing some of these issues he responded that the Diocese was advocating stewardship of time, talent and financial resources from the parishes. Training programmes were needed to help provide leaders for the new church populations. There was also the need to find a way to bridge the gap between cultures. The Diocese, however, was solvent and the cuts that it had to make was not proportionate to that experienced by the shock cuts from the Commissioners and the Archbishops’ Council. The reductions were less than the £2.5 million cut Selective Allocations and clergy pensions contribution.
Larry Bain, Diocesan Stewardship Resources Officer
Mr. Bain identified some of the programmes that were in place for earning financial and other resources.
In addition to the Fairer Shares Scheme parishes have been encouraged to give through schemes such as The Responsibility is Ours (TRIO), Giving Enables Mission (GEM), Gift Aid, Pass It On and Proportionate Giving. It has been found that in the parishes the responsibility is shouldered by a few. In many cases 10% of the congregation is responsible for between 65% and 90% of the direct giving. The scheme is aimed at informing the many to do their part. With GEM parishes are encouraged to place emphasis on more long term giving of time, talent and money which will necessitate developing a plan for the parish. Pass it On is strategy for reinforcement and for encouraging others to give to the work of the church. With proportionate giving parishioners are asked to give a portion of their salaries. The Church has asked members to aim at giving 5% of their disposable income to the work of the church. With gift aid members can make a pledge to give an amount not exceeding £250 over a period. The tax on this amount can be reclaimed by the church thus realising a figure in excess of that originally pledged. Planned giving is also tax deductible for parishioners who pay income tax in the United Kingdom.
Chapter 5 – Discussion and Recommendation
This dissertation is aimed at analysing the financial resources of the Diocese of Southwark within the changing environment. The objectives were set out as follows:
To assess the political, economical, social and technological
influences on the resources of the Diocese of Southwark
4. To discuss the effects of changes in the cultural environment on
the Diocese of Southwark
To recommend strategies to aid the church in the stewardship of its resources
The previous chapters looked at a variety of approaches that were employed to gain information which would help to address each objective. Chapter 1 gave the introduction to the research and presented an outline plan of how it would be carried out. The Church of England is regarded as the mother church to the many churches in the Anglican Communion. In each Diocese all geographical subdivision falls within a parish. Therefore, every person in the UK, for example, lives in an Anglican parish (2002).
The availability of financial resources is necessary for the Church to carry out its mission. The proper management involves the efficient and effective use and allocation of its financial resources ( 2002).
The Ministry and Public Affairs Council (MPAC) carried out research and presented a report in February 2004 to the General Synod of the Church of England. Entitled “Mission-shaped Church” it highlighted the fact that the church’s mission had now become cross-cultural indicating that there was a change in the way change in the way in the Church and the way it operated. The cultural change is also noted by the Bishop of Southwark in his interview and by statistics in Table 3.2 which show the percentage of ethnic mix in and around London. Appendix 1(a) is a map showing the ethnic minority grouping in the London area. When superimposed on the map showing the dioceses across England (Appendix 1) it is evident that the greatest minority ethnic concentration falls within the location of the Diocese of Southwark. There are several approaches that can be taken in carrying out research. According to (2000) and (2003) the methodology pursued is based on the research perspective. The approach taken can be qualitative in that, it emphasizes people’s views and feelings or quantitative as in an empirical research. Several research types have been identified based on the perspective that is adopted (1998; 2000; 2003). Some of these include experimental, case study, action, survey and ethnographic research. Another type of research or strategy is the exploratory, descriptive and explanatory (causal-comparative, descriptive, evaluation) research.
In this study the research plan represents quantitative perspective (2000) with some qualitative aspects and this is reflected in the plan that the author adopted. It incorporates the survey and exploratory, descriptive and explanatory approaches. The research process is carried out in a linear or step-by-step manner.
The six-step plan set out to define the research problem, design the study, select samples and research instruments, gather the data, process and analyse the data and presenting the findings.
The methodology was outlined in Chapter 2 and process used included a review of related literature and the use of primary and secondary sources of information related to the aims and objectives of the research. Secondary research was carried out by examining annual reports of the Archbishops’ Council, the Church Commissioners and the Diocese of Southwark. Published articles from agencies such as the ONS and DTI were also used. In the primary research interviews and questionnaires were used to gather data and information.
In Chapter 3 the literature review included information on the sources of funding in the Church of England and in the Diocese of Southwark. It looked at the role of the Church Commissioners and the Archbishops’ Council and their involvement in the financial affairs of the dioceses and the Diocese of Southwark in particular. This chapter also included an overview of the macro-environment in which the church exists. Academic theoretical frameworks were used to examine the objectives of the research. The review was carried out based on the stated objectives and looked at models such as Porter’s model of competitive advantage, Porter’s generic strategies, Johnson and Scholes’ cultural web and models of change which included Balogun and Hailey’s Kaleidoscope model.
Graphs, charts and tables were used to present the research findings in Chapter 4. These findings and the information presented in the previous chapters will be discussed and analysed as this chapter develops.
The research methods were consistent with the stated objectives. However, there were some limitations to the study. The author realised that the research problem could cover a large area because it impacted on more than one factor which affected the Diocese. It encompassed issues in finance, socio-cultural variation as well as change and change management. The study could have taken many directions but was confined to the stated objects and their inherent influence on the Diocese of Southwark.
Discussion
As (2002) has pointed out the prevalence of globalization,
“reflects a widespread perception that in every area of life from cultural to criminal, from financial to environmental, there is a broadening, deepening and speeding up of worldwide interconnectedness.”
observations highlight the fact that economic and technological forces have been instrumental in redefining the world. The figures from the ONS (See Table 3.2) and primary research (See Figure 4.3) indicate that this interconnectedness has resulted in a greater ethnic mix in the UK and in the London metropolitan area in particular (See Appendix 1a). The interconnectedness and change in the environment is supported by (1994).
According to (2003) the Diocese of Southwark has become irreversibly multicultural. Studies carried out by (2002) show that the individual influences national or regional culture, the organisational field, functional or divisional culture and the organisational culture. Individuals from the various cultures therefore, have certain core value and beliefs which ultimately impact the culture of the organisation. The changes in the cultural and business environment will also result in fundamental changes in the church, that is, its core values, beliefs and assumptions – the cultural paradigm. The implied unchanging nature of both people and faith will see the need for strategic development in addressing the challenges facing the Church. The past history has helped to formulate and define the organisational culture or basic assumptions of the organisation.
ONS figures show growth in the ethnic minority population (See Table 3.1). Not only were more minority ethnics coming into the UK but studies of the age structure showed that ethnic groups were younger the White population ( 2001/2, 2002) due to migration and fertility patterns. The Home Office report (2003) supports and also indicates the trend for future labour force structure of the UK in that Black and minority ethnic communities have a higher proportion of young people under 25 and are projected to account for over half of the growth in Britain’s working age population over the next decade. There is a significant number of people living in the parishes for between one and 5 years (See Figure 4.4). These can be seen as relatively recent arrivals. The results further reveal that it is mainly ethnic minorities and in particular Africans who fit into this category. British Black and Caribbean fall mainly in the 21-25 years category while it is the White British who indicate that they have lived in the parishes for over 30 years. It is an indication that the ranges lie between almost two extremes, the very old the very new.
The Church finds itself within a competitive business environment with other similar organisations such as the Baptists, Roman Catholics, Pentecostals, the increasingly popular New Wine Movement and other denominational and non-denominational groups. They are competing for the same scarce resources namely, customers (members) and finances.
(1985) says that in order to compete in any industry an organisation must perform distinct activities which add value and give it a competitive advantage. In the primary research some respondents (43.7%, see Table 4.5) were neutral in their opinion on their church being different to others. A further 20% disagreed that their church was different to other churches. Taken together the figures representing those who are Neutral, Disagree and Strongly Disagree accounted for 63% of the respondents who it can be said do not see their C of E church as having a particular value that would give it a distinctive competitive advantage.
Several substitutes and threats such as other churches, other attractions and activities such as Sunday shopping, for example, cause the C of E to lose members and create a fall in attendance. In his interview the Bishop of Southwark pointed out that people will contribute more (money) to the church if they feel that they are getting value. This can be realised through customer satisfaction, that is, if the church is meeting their needs. In the primary research Table 4.5 shows that 60.5% of the respondents thought that the church met their spiritual needs. Using Porter’s model of competitive advantage the key competitive forces facing the Diocese of Southwark are funding, the availability of substitutes, industry growth, access to substitutes, differentiation of products, customer demand, diversification of the population, buyer (customer) switching costs and brand identity (See Table 3.3).
The C of E has a distinctive style of worship and administration. One of its strengths is being seen as being established. It is also deemed to be the national church of England. It has a well recognisable brand (image) and is respected sometimes for what it can do and not particularly because of the style of worship that it offers. This adds to its uniqueness. Geographically, each area (ward) of the UK falls within an Anglican parish. Each person therefore, has his or her own Anglican parish church. Different churches have their services tailored to suit their particular traditions thereby offering choice in styles of worship. Globalisation beginning from the times of colonisation has given the C of E the opportunity of being a well-recognised brand. However, this can also be seen as a contribution to its weakness since it is also seen as having rigid inflexible structures which are not conducive to change. It is therefore, faced with threats from more charismatic churches, for example, New Wine. Such churches have a greater appeal to the young because they are seen as being modern and moving with the times. They are also seen as being part of the new and future generation. From the results of the primary research it is evident the church needs to develop a differentiated image and needs to reposition itself in the minds of the young and of its parishioners.
Culture is seen as being a mental conditioning from birth ( 2000) and successful managers are said to be the culturally sensitive ones (2000;2000). Like believes that cultural diversities will not disappear any time in the near future. People from different cultures share basic concepts and but view them from different angles and perspectives. The people of the different ethnic groups that are coming into the Diocese of Southwark share the same faith of Anglicanism, viewed from their own cultural perspectives. Several definitions of culture have been introduced into this study – regional, corporate, family, individual and gender. However, the works explored show that for all the categories of ethnicity that could be used the world’s cultures are divided into three broad categories, namely, linear active, multi-active and reactive. The Bishop of Southwark has pointed out that the church needs to bridge the gap between cultures. A recommended way of doing this is for the different groups to empathise with each other’s culture instead of highlighting the differences. (2000) says that people of the linear-active culture, for example, the British and people of the multi-active culture, for example, Africans and people from the Caribbean, like to engage in dialogue in communication. From the primary research (See Figure 4.3) 35% of those surveyed are of African and Caribbean origin. The need for dialogue therefore, cannot be overstated. This is essential to bridge the gaps between not just ethnic minority and UK culture but also to bridge gaps within and among the ethnic minority cultures themselves. The organisational structure of the Diocese gives an indication of the communication patterns and the effectiveness of such communication. The hierarchical structure has the seat of power residing at the tope with the Diocesan Bishop. Communication is mainly channelled from the top through to several different levels of the hierarchy. A flatter or more flexible organisational structure could help to engender more speedy and effective communication within the Diocese.
(2002) cultural frame of reference which was previously mentioned sees the individual as influencing organisational culture which forms the cultural web which contains the cultural paradigm – the core values and assumptions of the organisation. The cultural web for the Diocese of Southwark (See Figure 3.7) shows its hierarchical, political and powerful image. However, changes in the environment in which the church operates will affect its taken-for-granted assumptions and the way it operates. According to (2004) organisations change and develop. In the primary research parishioners indicate that they have seen changes in their community and in their churches (See Figure 4.12). Some have indicated that they have seen no changes in either church or community which would indicate even more definitively that change is not just becoming but has become a way of life in the Diocese.
The Bishop of Southwark said that there is the need to carry out structured programmes related to the changes taking place in his organisation. This indicates management’s awareness of the need to undertake a programme of organisational development. The Diocese will therefore need to take deliberate systematic steps to promote learning in order to become a learning organisation ( 2000) whereby it can achieve the ability to continuously change and develop. The Diocese will need to go beyond the scope of the study that was done into institutional racism that was undertaken in 1999. As (2004) points out the organisational culture continues to reflect the past and also the favour the White majority. (2000) also notes that the organisation’s past history will help to shape its culture and also management’s way of dealing with situations within the current climate. The current climate of the Diocese of Southwark is that the ‘richer’ parishes are funding the poorer parishes which are mainly located in the Urban Priority Areas. The church cannot rely solely on a congregation’s collection at the regular Sunday services in order to cover its expenses. The poorer churches are subsidized by the richer churches . However, this does not seem fair nor does it seem to be an acceptable long-term solution. Although it is a charitable organisation the church needs to look at ways of earning money without appearing to be waiting for handouts as might be said of parishes who are not able to pay their way. A strategic approach to change will help to redress what is perceived as some of the imbalance in the make up of the organisational culture.
One of the models of change that could be ideal for the Diocese of Southwark is Balogun and Hailey’s Kaleidoscope model. This model is suited to change in different contexts. The contexts it uses are time, scope, preservation, diversity, capability, capacity, readiness for change and power. It is also designed based on the cultural web and so would address more directly the taken-for-granted assumptions or the core beliefs of the organisation. Varying degrees of the eight contexts of the Kaleidoscope model could be used towards transforming the Diocese of Southwark into a learning organisation. In terms of time a long-term strategic approach should be adopted which would take into account the degree of change that is needed. Because of the people and cultural factors that are involved change cannot be too radical but would have to be done on an incremental basis in order to decrease the amount of resistance that might result. The change programme undertaken will need to incorporate the diversified groups both in terms of employees and parishioners. This study shows that the Diocese is ready for change. However, it will need to engage the services of qualified professionals to act as change agents while enabling them to carry out their work with minimum interference from the powers that be. Feasibility studies would also have to be carried out to ensure that there is adequate time and financial resources for this undertaking. Through education and communication the Diocese should be able to brief explicitly its employees and congregations about the need for change, ways of implementing and achieving change.
Chapter 6 – Conclusion
You do not appear to have concluded on the extent ot which to you have achieved your research objectives. Please try to address this.
The previous chapter summarised (look at this again) the dissertation process leading up the findings of the research. This was followed by a discussion of the findings related to the objectives. Where appropriate recommendations were also made regarding the research. This chapter will summarise briefly the dissertation journey. It will also look into whether or not the objectives were achieved and to what extent these were achieved.
Through observation of the UK society and the Church of England, in particular the Diocese of Southwark, over some twenty years the author became interested in the increasing emphasis placed on financial resources of the church while noticing that to some extent the environment in which the country operated was changing. Further studies leading up to the MBA also indicated the changing business environment and need for business to learn and adapt or become extinct in the dynamic environment. Thus it was that the idea came about for this dissertation. At the outset there was no clear title or form for the dissertation. However, feedback was obtained from personnel within the diocese and parishioners who saw that there was something to be answered.
It was clear from the early in the process that there was the need to obtain primary data specifically for the research project being undertaken. The information required needed to reflect what was currently happening in the parishes of the Diocese. Also there were not many sources from which such information could be obtained.
It was also important and necessary to use secondary research through documentary secondary data and survey-based secondary data. Although the data from these sources were collected for other research they proved to be applicable to this study, for example, the census figures for 2001. They helped to give credibility to the primary research and also helped to place the dissertation within the context of the wider environment.
The findings of the research pointed out that finance and financial resources were important to the operations and the existence of the church. It also highlighted the fact that not only did the church need to exercise prudence in its financial management it was also expected to do so, for example the Archbishops’ Council and the Church Commissioners in their legal obligations and the Diocese of Southwark to the members of the congregations in its churches.
There are several sources of funding available to the Diocese. The primary source for the Diocese of Southwark is the parish churches. The main area of expenditure is also within the parishes in terms of clergy stipend and housing.
Globalisation has seen the opening up of the UK borders. There is an increase in immigration of ethnic minority people, mainly from West Africa, into the Diocese of Southwark and into the UK kingdom as a whole. The parishes therefore which are the lifeblood of the Diocese are faced with fundamental changes with regard to the composition and methods of operation. In addition new policies by the Church Commissioners and the Archbishops’ Council have seen a cut in the selective allocations of funds made to the Diocese. The Diocese is faced with having to make up the shortfall of some £14 million to pay for the pensions and ministry of clergy in post after 1998. The stewardship of financial resources has now become an ongoing concern for the Diocese.
Research related to the objectives have been achieved to the extent where they have been able to point towards the changes taking place in the UK and reflected in the Diocese. The findings from objectives have also pointed towards the sources of funding and have been able to help to formulate strategies to address the changes which might be helpful in creating further funding from the parishes for the survival of the church.
However, there are some limitations to the research. The sample size used for example is quite small given the constraints of time and financial resources which would be needed to undertake a comprehensive study. This falls outside of the scope of this study. There is the need to study the factors involved more closely and over a longer period of time. This will help to giver greater insight into the problem and will allow for strategic plans to be made to address the issues. The issues will need to be highlighted explicitly and deliberate steps undertaken to address the matter of stewardship and the approach or attitude of the emerging congregations to stewardship.
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