2.5 Organizational (Corporate) Culture

Question 1

Organizational culture

Answer 1

The traditions and norms of an organization which are shaped by the attitudes, values, and beliefs in the workplace

Question 2

Elements of organizational culture

Answer 2

1. Nature of the business: purpose and direction
2. Organizational structure: tall/ flat can have different cultures.
3. Rewards: proper payment results in a united culture vs unfair payment can create a hostile culture
4. Management styles: decentralized and centralized firms have different cultures

Question 3

Types of organizational culture

Answer 3

power, role, task, person

Question 4

Power culture

Answer 4

Type of organizational culture where few individuals retain power, decision making is centralized, and minimal bureaucracy is involved

Question 5

Role culture

Answer 5

Type of organizational culture based on structured rules and procedures, where job roles are clearly defined

Question 6

Task culture

Answer 6

Type of organizational culture where teams of individuals with different expertise tackle specific problems often forming a matrix organizational structure

Question 7

Person culture

Answer 7

Type of organizational culture where individuals with similar expertise come together to contribute to the business, and the contribution by each individual is valued

Question 8

Culture clash

Answer 8

Conflicts that arise when there are differences in the values and beliefs of individuals within an organization

Question 9

Reasons for culture clashes

Answer 9

Growth: organizations may try and employ more bureaucracy when growing to maintain control/ clashing as they expand overseas
Mergers/ acquisitions: when there are two distinct cultures between the newly merged/ acquired teams
Change in leadership: leaders can dictate the organizational culture in their leadership style

Question 10

Consequences of culture clashes

Answer 10

• lower staff morale
• lower productivity
• higher labor turnover
• resistance to change from the workforce (any method changing the norm culture leads to conflict)

Question 11

How organizational culture influences individuals

Answer 11

Culture can influence how employees act (based on the type of culture, leadership style, and organizational structure)

Question 12

How individuals influence organizational culture

Answer 12

Employees, especially in a person culture, can have a significant influence over the culture by rejecting and changing the enforced norms