2.5 Organisational Culture (HL)

Question 1

Organizational culture

Answer 1

• The shared values, attitudes and beliefs of the people working in a business
• Influences the way employees interact and make decisions

Question 2

Visible/Observable

Answer 2

• Dress Code
• Organizational Structure - hierarchy
• Mission Statement
• What people call each other

Question 3

Non-visual

Answer 3

• Staying late
• Salary expectations
• Teamwork
• Jokes and “Banter”

Question 4

Elements of organizational culture

Answer 4

Nature of the business
* Mission and vision statements

Organizational Structure
* Vertical vs horizontal

Rewards
* Are they equitable?
* Financial or non-financial

Management behaviour
* Centralized or decentralized
* Autocratic or democratic

Sanctions
* Too relaxed – staff may become lazy
* Too strict – staff may resent management

Question 5

Types of Organisational Culture

Answer 5

Power Culture
* Dominant person or group in control
* Autocratic leadership and centralized decision making

Role Culture
* Tall, hierarchical and bureaucratic
* Well-defined roles and responsibilities
* Tradition and lack of creativity

Task (team) culture
* Teams are formed and empowered to solve problems

Person Culture
* Each individual focuses on their own work/project

Entrepreneurial Culture
* Creativity and risk-taking is encouraged

Question 6

The reasons for, and consequences of, cultural clashes

Answer 6

**Grow
**
- May not like Shareholder profit Vs Traditional values

Mergers
- E.g from different countries

Leadership styles changes
- E.g. autocratic leader takes over from a laissez-faire one

Question 7

Deal and Kennedeys Cultural Model

Answer 7