3.4.2 Corporate culture Flashcards
Corporate culture
The values, attitudes, beliefs, meanings and norms that are shared by people and groups within an organisation
Advantages of a strong corporate culture
1) - Provides sense of identity for employees -feel apart of the business
2) Workers identity with other employees as share same culture- can spark teamwork
3) Increases commitment of employment for the company - prevents problems such as high labour turnover.
4) Motivates workers- increased productivity
5) Acts as a control device for management- can help when setting a companies strategy.
Factors that determine whether a business has a strong or weak culture
Surface manifestation
Core organisational values
Basic assumptions
What can you do to a organisationals culture
You can classify an organisationals culture
Who attempted to to classify an organisations cultures in 4 ways?
Charles Handy
What are the 4 ways in which Charles Handy argued an organisations culture can be classified?
1) - Power culture
2) - Role culture
3) - Task culture
4) - Person culture
Power culture
When one person has control over everything that goes on within the organisation.There is a central power figure, very few rules + systems, and decision making is swift.
Role culture
A culture where every employee is delegated rules and responsibilities according to his specialisation
Task culture
A culture where there is a focus on specific tasks and projects. Individuals are brought into work on tasks when they are required, sharing ideas across functions
Person culture
A type of culture that is said to exist where the focus for each member is on the individual themselves and where there is no collective identity or goal.
Organisational culture affect a business in what
- Motivation
- Organisational structures
- Change ( e.g new management, mergers + takeovers)
How can an organisational culture affect motivation
Organisation culture affects the motivation of staff.
E.g motivation likely to be greater if their is a culture of respect within an organisation that recognises them and their accomplishments
How can an organisations culture affect a structure of a business
Business cultures can affect organisational structures.
e.g in a person culture the hierarchy is likely to be flat
How can organisationals culture affect new management?
The greater the change needed in a business, the more likely it is that the new management will have to confront the existing organisations culture
How can mergers + takeovers affect organisational culture
When two business merge or if there is a takeover then there can be a conflict in cultures.
There has to be a process of creating a single business out of the 2 organisations so therefore that involves changing organisational culture
