2.5 Organizational (corporate) Culture

Question 1

what is organizational culture?

Answer 1

collection of values, beliefs, ethics and attitudes that characterize an organization and guide how they work.

Each organization has a unique culture which defines how that organization works.

Question 2

what factors influence organizational culture?

Answer 2

size of the organization, Traditions and values of the organization, Attitudes and traits of senior managers, management and leadership style, Societal and cultural norms in the region or country, corporate social responsibilities, radical changes to the firm

Question 3

size of the organization

Answer 3

larger organizations tend to have more formal policies, procedures

Question 4

Traditions and values of the organization

Answer 4

small charity will have a different organizational culture from a large multinational fast-food restaurant chain.

Question 5

Attitudes and traits of senior managers

Answer 5

shaped by personalities and traits of senior managers

Question 6

Societal and cultural norms in the region or country

Answer 6

some countries (such as in Scandinavia) have greater gender equality so are more receptive to female leadership and female participation in the labour force. Societal norms also shape business ethics and corporate social responsibilities of business organizations.

Question 7

radical changes to the firm

Answer 7

change in the senior leadership team or a takeover of the company can alter the organizational culture in a short period of time.

Question 8

Charles Handy’s Gods of Management broke culture down into…

Answer 8

4 different types each represented by a god.

Question 9

how is each culture of Charles Handy’s Gods of Management called?

Answer 9

Power culture, role culture, task culture, person culture

Question 10

which god is power from Charles Handy’s Gods of Management?

Answer 10

zeus

Question 11

which god is role from Charles Handy’s Gods of Management?

Answer 11

Apollo

Question 12

which god is task from Charles Handy’s Gods of Management?

Answer 12

Athena

Question 13

which god is person from Charles Handy’s Gods of Management?

Answer 13

Dionysus

Question 14

what is Power culture Handy’s Gods of Management?

Answer 14

concentrating power among a few people. Decisions made quickly because few people make them.
Autocratic leadership style
Motivation methods: financial incentives and bonuses to reward performance.
Common in small businesses

Question 15

what is Role culture Handy’s Gods of Management?

Answer 15

each member of staff has a clearly defined job title and role.
Staff operate within the rules, little creativity.
Decision-making fast and risk taking is frowned upon.
Tall hierarchical structures

Question 16

what is Task culture from Handy’s Gods of Management?

Answer 16

based on cooperation and teamwork.
Groups formed to solve particular problems.
Teams empowered to take decisions and encouraged to be creative.
Coordinating can be difficult.

Question 17

what is Person culture from Handy’s Gods of Management?

Answer 17

individuals have freedom to express themselves and make decisions. operate alone.
not common type of culture, occurs in organization of qualified individuals
No teamwork each individual is focused on their own tasks.
Laissez-faire leadership
difficult to manage

Question 18

what is culture clash?

Answer 18

when there are differences in the values and views held by different individuals within an organization, thereby causing conflict

Question 19

what are the Reasons for culture clash:

Answer 19

growth
mergers and takeovers
crisis
new leadership
different leadership styles
change of objectives

Question 20

what are the Consequences of Culture Clash

Answer 20

reduced staff self-esteem
lower motivation
reduced productivity
higher absenteeism
conflict in workplace

Question 21

to deal with culture clash what needs to be utilized?

Answer 21

change management

Question 22

growth and evolution as a reason for culture clash:

Answer 22

When organizations grow internally, there is often a disconnect between junior staff members and senior managers in very large organizations. workers may feel ‘out of touch’ with senior management. result in the beliefs of employees being different from senior managers, leading to a culture clash.
disrupt in existing organizational cultures, causing uncertainties for employees. For example, a new vision or mission may be formed as firm grows or evolves.

Question 23

mergers acquisitions and takeover as a reason for culture clash:

Answer 23

Inorganic growth results in one culture being more dominant than the other, so conflict is likely to occur. happens when a hostile takeover occurs, against the wishes of the target company, or when the two organizations are from different regional cultures.

Question 24

changing leadership styles as a reason for culture clash:

Answer 24

Although choosing a leadership according to the situation is the most suitable, most leaders have a primary style in their management approach.
Cultural traditions and values also play a role in a leader’s style

Question 25

how can you achieve effective cultural change?

Answer 25

concentrate on the positive aspects of the business and enlarge on them.
obtain full commitment of people at the top and key employees
train staff in new procedures and new ways of working - if people believe in the change and understand the benefits of it, then it will become more acceptable to them
change the staff reward system, people need to be reassured that if they adjust to the new approach then they will gain from it.