10 - Managing Organisational Culture

Question 1

What Is The Importance Of Organisational Culture?
(4 Points)

Answer 1

~ Impacts staff motivation and decision making.

~ Impacts panning and strategy of the business.

~ Impacts the competitiveness of the business.

~ Impacts the brand image of the business.

Question 2

What Are The 4 Classes Of Culture?

Answer 2

~ Power.

~ Role.

~ Task.

~ Person.

Question 3

Describe Power Culture
(7 Points)

Answer 3

~ Decisions are made by a select few people.

~ Very centralised, autocratic culture.

Benefits:
~ Quick decision making.

~ Suitable for smaller organisations, which can react quickly to changes.

Drawbacks:
~ Decisions come from a select few individuals, meaning they could make decisions based on a hunch.

~ Lack of expertise in some areas, due to less ideas.

~ Meaning employees may be more resistant to change.

Question 4

Describe Role Culture
(6 Points)

Answer 4

~ Formalised roles, jobs and procedures.

~ Employees power comes from their role.

Benefits:
~ Suits a stable company.

~ Decisions are made on expertise and logic.

Drawbacks:
~ Just focus on your role, don’t look to help others out.

~ Slow to react to change, as there a procedures in place, delaying processes.

Question 5

Describe Task Culture
(8 Points)

Answer 5

~ Focus is on specific projects and tasks.

~ Individuals will be brought in to solve issues in different departments.

~ Matrix, democratic structure.

Benefits:
~ Cross functional communication, unlike role culture.

~ Teams are flexible and adaptable, so better able to manage change.

Drawbacks:
~ Training costs.

~ Lacks depth of expertise, unlike role culture.

~ Confusion due matrix structure, meaning employees may have multiple managers.

Question 6

Describe Person Culture
(4 Points)

Answer 6

~ Workers have freedom to act independently, as they may have technical or specialist skills.

Benefits:
~ Can have the best person making decisions in each role.

Drawbacks:
~ Act in self-interest, due to thinking they are the best.

~ Often difficult to manage.

Question 7

What Are The Influences On Organisational Culture?
(6 Points)

Answer 7

~ Corporate objectives.

~ Personal beliefs, attitudes and priorities of the leader.

~ Social norms.

~ Ownership and size of the business.

~ Competitive environment.

~ Technological advancements.

Question 8

What Are The Reasons For Changing Organisational Culture?
(5 Points)

Answer 8

~ If there is a merger, takeover or JV.

~ If there is rapid growth or retrenchment, meaning there is a need of switch.

~ New strategy.

~ Internal changes.

~ External changes.

Question 9

What Are The Problems Of Changing Organisational Culture?
(3 Points)

Answer 9

~ Resistance to change.

~ Requires funding and time.

~ Harder to change, if the business is large.