3.10.2 Managing organisational culture Flashcards
Culture?
The way things are done in a business
2 factors that make up the culture?
- Values
- Day-to-day behaviours
4 ways the culture is reflected?
- How working space is organised
- Layers in hierarchy
- Communication methods
- Delegation
4 reasons a business changes organisational culture?
- Performance
- Location change
- Motivation
- Competitiveness
3 factors influencing culture?
- Leadership
- Organisational structure
- Attitude to risk and innovation
4 kinds of culture according to Handy?
- Power
- Role
- Task
- Person
2 features of a power culture?
- Power held by individuals at the top
- What those in power decide is what happens
2 drawbacks of being a power culture?
- Can quickly turn toxic
- Short-termism
3 key features of a role culture?
- Decision making takes place at role
- Power held by those with a certain job title (very hierarchalP)
- Defined rules and responsibilities
3 drawbacks of role culture?
- Decision making is slow
- Risk averse
- Very bureaucratic
2 features of task culture?
- Team is formed to address specific problems/ progress projects
- Task is the most important thing- power switched in the team depending on expertise
1 benefit of task culture?
More innovative
3 features of person culture?
- Individuals see themselves as unique and superior to the organisation
- Organisation simply exists for them to work
- Employees have similar training, background and expertise
2 theories for culture?
- Handy’s Model of Culture
- Hofstede’s National cultures
What does Hofstede’s National Cultures do?
Distinguishes the way business is conducted between different nations
6 dimensions of Hofstede’s National Cultures?
1) Individualism v collectivism
2) Power distance
3) Short-terminism v long-terminism
4) Masculine v feminine
5) Uncertainty avoidance
6) Indulgence v restraint
What is individualism v collectivism and what does this determine? How does the scoring system work for this?
Valuing the performance of an individual v valuing the performance of the team
- Affects financial rewards given (e.g. individual bonuses v profit sharing)
- Collective = 100
What does power distance encourage? what does low PD score suggest? High PD score suggests? e.g. of country
- Strong sense of position and status
- High = national culture accepts bureaucracy and respect for authority
- Low PD = national culture encourages flatter organisational structures and autonomy
- High PD e.g.= Saudi Arabia
What would suggest a country is short termism? scale for scoring? and what 2 things does this implicate? 1 e.g. of country
- Short termism = gear financial and other rewards toward the short period
- Long termism = 100
- Implicates investment decision making and risk taking
- Germany is long-termism - innovative
Masculine decision making? feminine decision making? scored?
- Masculine = fact-based, aggressive decision making
- Feminine = consultative analysis before decision making
- Masculine = 100
Uncertainty avoidance scale and what does it influence?
- 100 = uncertainty averse
- Implicates entrepreneurial culture
What does indulgence mean? what does restraint mean? scale? e.g.?
- Indulgence = society allows desires of having fun and enjoying life to be met
- Restraint = gratification of needs is suppressed via social norms
- Restraint = 100
- Japan is restrained
2 benefits of hofstede’s national cultures?
- Plans for communication issues with internationalisation
- Good for MNC’s- assess implications of changes on employees
3 signs that organisational culture may need changing?
- High labour turnover and unable to retain talent
- Bureaucracy
- Closed communication
Changing culture is harder when? (2)
- Short-termism shareholders
- Large business
