3.10.2 Culture Flashcards
What is business culture?
The set of shared values, beliefs and behaviours that shape how people work in a business work together
What does business culture influence?
How employees interact, make decisions and approach tasks
Why is culture important to a business? 3 reasons
Can determine how high your costs are.
Helps with decision making
Competitive advantage
Why can culture determine how high your costs are?
If a business has a low cost culture then this means they could have lower prices and be more competitive
What was Handy’s cultural model?
Handy believed that there are four main types of organisational culture which can be identified by the extent to which an organisation is both formalised and centralised.
What were the 4 cultures he believed in?
Task culture
Role culture
Power culture
Person culture
What Is task culture?
Employees are given freedom and empowered to do tasks e.g Doctors
What is role culture?
3 points if possible
People defined by their role
Formal structure
E.g government
What is power culture?
The culture reflects the person at the top
E.g Richard Branson
What is person culture?
Individuals doing their own thing with little or no supervision
What is bureaucratic culture? 2 reasons
Very formal structure
Lots of rules and regs
What is entrepreneurial culture? 2 reasons
Innovative, creative and more likely to take risks
What is the cultural web?
This is about all the features of a business that helps to make its overall culture
What are symbols in the cultural web?
Visual features of the business
E.g logos
What are power structures?
This is where power lies - autocratic or more democratic?
