Organisations’ and employees’ perceptions of the impact of activity-based working on the organisational culture

Purpose Challenged by the effects of organisational flexibility and high corporate real estate (CRE) costs, organisations increasingly seek flexibility and operational efficiency in their physical office layouts. This paper examines and compares how the existing organisational culture of organisations changed with the introduction of activity-based working (ABW) from the perspectives of organisations and their employees. Design/methodology/approach The research focused on large organisations that had introduced ABW during the period of 2012–2019 and their employees. Two surveys were implemented with the management of organisations and employees. In-depth interviews with the management were also undertaken. The research focused on three different industry sectors in Australia – financial, IT and public. The competing value framework was used to measure the dimensions of organisational culture. Findings Findings identify major finance, internal business, learning and growth and staff and client-oriented motives affecting organisations’ decisions to introduce ABW. Findings illustrate that the nature of workplace design has a considerable impact on organisations’ culture and can be used to leverage and change it. However, a noticeable discrepancy between the perceptions of the organisation and employees in the public and private sectors was identified, where public sector employees felt that standardised procedures still governed their actions even in ABW. Originality/value This research highlights that workplace designs directly influence the culture of organisations. It emphasises the importance of an in-depth examination of the behavioural and attitudinal characteristics of organisations and their employees to obtain a better understanding of how they perceive and interact in ABW layouts.