3.4.2. Corporate Culture

Question 1

Corporate culture

Answer 1

The spirit, attitudes, behaviours, aims and ethos of organisation.

Question 2

Strong culture

Answer 2

-Focus on customers real needs, allowing staff to to make decisions ie. refunds etc
-Staff show a real feeling for organisation as us as long term commitment.
-Sticking together and working together at time of crisis

Question 3

Weak culture

Answer 3

-Staff follow script when dealing with customers
-Them and us attitude between workers and department
-Staff doubting companies supposed principles and ethos, too little commitment
-When things look bad better qualified staff look to find another job

Question 4

Handy’s classification of cultures

Answer 4

Power
Role
Person
Task

Question 5

Power culture

Answer 5

Occurs when one or small group of powerful people leading organisation
-Everything goes through the boss
-Few rules or procedures laid down
-Communication is through personal contact
-Decision making likely made to please boss
-Autocratic leadership style

Question 6

Role culture

Answer 6

Exists in an established organisation dominated by rules and procedures.
-Power depends on position held within organisational structure
-All employees expected to follow rules
-Career progress is predictable and based on who follows procedures best
- Culture is Bureaucratic, focused on avoiding mistakes
-Organisation will struggle to cope with rapid change
- Leadership style is autocratic or paternalistic

Question 7

Task culture

Answer 7

Project being worked on is central focus. Senior managers allocate projects to teams of employees from different functional areas.
Decisions made by teams made up of employees with specific skills. Power lies with those with task related skills.
-Each project team formed for single project then disbanded once done
-Individuals power depends in expertise rather than status
-Employees become used to working with staff from other departments

Question 8

Person culture

Answer 8

Where individuals with extensive experience and skills are loosely brought together. These individuals have significant power to determine their own decision making procedures and often work autonomously.
-Staff well paid and treated
-Leadership style is democratic
-Staff feel sense of personal development, very motivating

Question 9

How corporate culture is formed

Answer 9

-Leadership style
-Type of ownership
-Recruitment policies

Question 10

Difficulties in changing corporate culture

Answer 10

Changing way people do things isn’t easy as:
-Self interest
-Low tolerance to change
-Misunderstanding proposed change
-Different assessments of need to change

Requires combination of:
-Clear purpose
-Education and trading
-Consistency of comm. methods& messages
-Effective comm. that change will happen