3.4.2 corporate culture Flashcards
what is corporate culture
The values and standards shared by people and groups within an organisation
These will impact on the way that people within the organisation interact with each other and with other stakeholders
The culture of a business affects the way in which the business operates, this includes:
Decision making Organisational structure Communication Leadership styles Attitude towards work Workforce performance
what is the importance of corporate culture
Impact on staff motivation
- Communication
- Retention
- Workforce performance indicators
Effects decision making
- Speed
- Level of involvement
- Scientific v intuition
Competitiveness of the business
- Innovation
- Adaptability
Brand image
- Consumer perception
- Stakeholder opinion
what are the two types of culture
strong
weak
describe a strong culture
Staff respond positively to organisational values
Shared sense of responsibility towards vision, mission and objectives
Motivated and loyal workforce
Greater efficiency
Accept roles and responsibilities willingly
Abide by policies
“Everyone buys into it”
describe a weak culture
Little alignment with organisational values
Employees have to be forced to perform duties
Greater management control and supervision
Treat the organisation as a source of income only
Culture can be classified based on a model by Charles Handy as ……
task culture, role culture, power culture and entrepreneurial culture
describe task culture, role culture, power culture and entrepreneurial culture as part of charles handys model
task
- Emphasis on achieving set outcomes through cooperation and team work.
- Matrix structure
- Delegation
role
- Clear rules and procedures result in a clear hierarchy where the organisation functions based on each individual’s role within a clearly defined structure
- Hierarchical structure
- Bureaucratic leadership
power
- A few people central to the organisation have control.
- Centralised decision making
- Autocratic leadership
entrepreneurial
- Risk taking and innovation are actively encouraged and rewarded, whilst failure is not criticised.
- Decentralised decision making
- Democratic leadership
describe BLAKE & MOUTON model
low concern for people , low concern for results
=impoverished management
describe BLAKE & MOUTON model
low concern for results , high concern for people =
country club management
describe BLAKE & MOUTON model
high concerns for results , low concern for people =
produce or perish management
describe BLAKE & MOUTON model
high concern for results , high concerns for people =
team management
Influences on organisational culture include
Mission statement and corporate objectives
Personal attitudes, beliefs and priorities of the leaders
Norms within society
Ownership and size of the organisation
Geographical scope i.e. local, national or global
Competitive environment
How corporate culture is formed
Personalities and beliefs of the founders and leaders
Behaviours of founders and leaders on an ongoing basis
Recruitment and training in line with culture
Day to day actions of all employees
Reward systems
Accepted norms in day to day attitudes and behaviours
Difficulties in changing an established culture
Resistance to change
- Self interest
- Fear
Lack of trust
-Misunderstanding of reason for change
Period of adjustment
Difficult to change habits that may have been
embedded over a long period of time
Alienation of: -Suppliers -Customers Other stakeholders -
