3.4.2 Corporate Culture

Question 1

What is the definition of corporate culture

Answer 1

• The attitudes, beliefs and norms of an organisation.

Question 2

What are the charachteristics of strong corporate culture

Answer 2

• Employees and staff act in accordance with the firms core values

Question 3

What are the benefits of a strong corporate culture

Answer 3

• No policies or further reviewing of employees are needed as they understand how things are done in the firm

Question 4

How can a weak corporate culture arise

Answer 4

• Core values aren’t clearly defined, communicated or they are not widely accepted
• May lead to inconsistent behaviour in the organisation

Question 5

What are the consequences of weak corporate culture

Answer 5

• Greater need for procedures, policies and bureaucracy in a firm
• Can add to organisational costs

Question 6

What are the advantages of strong corporate culture

Answer 6

• Workers relate to other employees, might incentivise team work
• Increases commitment to the company, may prevent higher labour turnover
• Higher motivation, boosts productivity

Question 7

What are the different classifications of corporate culture

Answer 7

• Power
• Role
• Task
• Person

Question 8

Explain power

Answer 8

• One or few people which dominate the decision making element of the business

Question 9

Explain Role

Answer 9

• Roles are clearly assigned and work is delegated amongst employees.

Question 10

Explain task

Answer 10

• Work is set in teams, Employees form teams

Question 11

Explain person

Answer 11

• Power is shared equally amongst individuals, each individual has power.

Question 12

What are the advantages of power culture

Answer 12

• Quick decision making
• Clear leadership and direction

Question 13

What are the disadvantages of power culture

Answer 13

• Over reliance on key individuals
• Employees may feel disempowered and demotivated

Question 14

Explain role

Answer 14

• Roles are assigned to employees, everyone has their key roles. Often seen in hierarchal structure

Question 15

What are the advantages of role -

Answer 15

• Clear structure and accountability : Can lead to improved consistency as all employees and
• Specialization : Employees can become experts in their field over time

Question 16

What are the disadvantages of role

Answer 16

• Employees may become bored of their work