2.5 - Organisational Culture (corporate culture) Flashcards
what is organisational culture
the values, beliefs and attitudes of individuals within a business or in a group
what are two types of norms within organisational culture (examples)
observable (visible) culture norms
* dress code
* organisational structure
* mission statement formalities
non-observable (non-visible) culture norms
* working after-hours
* salary expectations
* language used within the office
* teamrowrk
what concepts can be used to interperate organisational cultures?
- Edgar Schein’s model of organisational culture
- Hofstede’s cultural dimentions
- Charles Handy’s Gods of Management
what is Edgar Schein’s Model of Organisational culture?
A model used to show the different cultures and layers of culture within the business from those which are not easily visible to those which are highly visible
- artifacts
- espoused values
- underlying assumptions
what are factors that influence organisational culture?
the type of business
* NGO vs. privately held company
Objectives of the business
* profit
* safety
* productivity
Organisational Structure
* horizontal (flat) organisational structure
* vertical (tall) organisational structure
Location
* city or country
Management style
* centralised
Leadership style
* autocratic vs. democratic
Society
* values and beliefs
what is the main model which shows organisational culture?
Charles Handy’s Gods of Management
what does Charles Handy’s Gods of Managment Model show and argue?
shows:
- that businesses can be divided into 4 types of organisational cultures
argues:
- different organisations need different cultures to succeed
what the axis and sections of Charles Handy’s Gods of Management?
axis ->
x - less formal, formal
y - centralised, less centralised
sections ->
* zeus (centralised, less formal) - power culture
* apollo (centralised, formal) - role culture
* athena (less centralised, formal) - task culture
* dionysus (less centralised, less formal) - person culture
description of each section of Charles Handy’s Gods of Management Model
Zeus - power culture
* more centralised, less formal
* autocratic leadership, one dominant leader
* all power with one person/group
Apollo - role culture
* more centralised, more formal
* employees have well defined responsibilities and roles
* heirarichal and bureaucratic
* eg. army
Athena - task culture
* more formal, less centralised
* clearly defined goals and tasks
* teams formed to solve problems
* focus on teamwork
Dionysus - person culture
* less formal, less centralised
* each individual has their own work/project
* autonomy
* no emphasis on teamwork
what is a culture clash?
when an organisation has two or more organisational cultures a one time - without working well and with harmony together
when do culture clashes often occur?
when there are changes within a business
what are factors that lead to culture clashes?
organisational growth
* eg. traditional family business go public - tradition vs. shoareholders
organisational merge
* two businesses who merge may have different values
organisational management change
* a new manager may come in who is autocratic, but they come into a democratic business
high levels of labour turnover
* new individuals with different cultures could join the business
what are the effects of a culture clash
- division in the workforce
- demotivation of employees
- increased resistance to change
- increasing costs
