3.10.2 Managing Organisational Culture Flashcards
Forming a business culture?
Physical environment
Stories - things that have happened good or bad in the past
Rewards - what a business recognises as success and what they reward it as
Rituals - significant events or ways of doing things
What 4 distinct culture types did Charles Handy outline
Power culture
Task culture
Role culture
Person culture
What is power culture
A few people or on person drive the organisation and decisions
Culture is determined by a few individuals - common in small businesses
What is task culture (lattice)
Employees associate with a task or project. New groups are formed regularly and culture norms will frequently change as new groups are formed
What is role culture
People associate with a team or a function. Very clear structure and culture may differ across these functions. May develop out of a power culture as business Grows
What is a person culture
Employees have a great deal of independence and may not be strongly affiliated with a specific group
What did Hofstede model of culture show
Small power distance - long power distance / the relationship between line managers and subordinates (low power distance may accept each other as friends)
Individualism - collectivism / the degree that employees see themselves as a team or an individual
Masculinity - femininity / competitive or aggressive tendencies demonstrated?
Weak uncertainty avoidance - strong uncertainty avoidance / the extent to which the business will take risks
Long term orientation - short term orientation / focus on short or long term investment
Indulgence - restraint / extent to which society indulges gratification of human needs in comparison to regulation of these needs through structures social norms
Reasons for changing organisational structure
A new leader - may want to impose their own way of doing things
Poor performance - negative culture may have contributed to this
Corporate objectives - a change in direction and strategy may require a different approach
Customer needs - expectations of customers or society in general may call for a change
Problems changing organisation structure
Changing culture is a long process - may require significant training and education of the workforce
Large organisations may have more than one culture across the different functions or regions
Culture is deep set - It extends from peoples attitudes and beliefs. They are not easy to change
What factors might influence organisational structure
Values Norms History Beliefs Leader Environment
How can a strong culture benefit a business
Allows them to gain a competitive advantage. Can lead to a creative highly motivated workforce. Changing organisations structure can be a long process as certain aspects of human behaviour are driven by attitude or beliefs
