3.4.2 Corporate culture

Question 1

What is corporate culture?

Answer 1

Sums up the spirit, attitudes, behaviours and ethos of an organisation routine.

Question 2

What are some characteristics of having a strong culture?

Answer 2

• focus on customer needs
• staff are motivated to reach a long-term aim
• united view with staff
• sticking together in times of crisis
• present after the founder has died
• better productivity
• easier recruitment
• consistency
• be iconic

Question 3

What are some characteristics of having a weak culture?

Answer 3

• staff follow a script when talking to customers
• functions are individual (silo-mentality)
• internal politics + whistleblowing
• when in turmoil, qualified staff leave
• individual gains and conflict over power + money
• workers are subordinate (toxic culture)
• diseconomies of scale
• inconsistency and quality losses

Question 4

What are the 4 types of culture?

Answer 4

1) Power
2) Role
3) Task
4) Person

Question 5

Where is a power culture found?

Answer 5

Found in organisations in which there is one or a small group of power holders.

Question 6

What are some characteristics of a power culture?

Answer 6

• encourages flexibility + swift decisions
• personal contact
• unethical decisions to please shareholders

Question 7

Where is a role culture found?

Answer 7

Found in established organisations with formal developed rules.

Question 8

What are some characteristics of a role culture?

Answer 8

• risk-averse
• power dependent upon position and status
• employees follow unexpected patterns
• bureaucratic and avoiding mistakes
• not ideal in dynamic markets
• functional structures, e.g. tall and flat

Question 9

What is a task culture?

Answer 9

No single power source following a matrix structure as projects with representatives of different functions

Question 10

What are some characteristics

Answer 10

• effective in dynamic markets due to flexibility
• powers lie in the expertise of group members
• the power shifts depending on task and expertise

Question 11

What do task cultures link to?

Answer 11

Paternalistic and democratic

Question 12

What do role cultures link to?

Answer 12

Autocratic or paternalistic style

Question 13

What do power cultures link to?

Answer 13

Mainly autocratic leadership (Taylor)

Question 14

What is a person culture?

Answer 14

A culture where people believe they are superior to the business.
Business is made of people with similar training, backgrounds and expertise meaning the employees are equally important

Question 15

What is an example of a person culture?

Answer 15

A GP or doctors.

Question 16

Where are person cultures found?

Answer 16

found in large organisations with leading officials

Question 17

What do person cultures link to?

Answer 17

democratic leadership (laissez-faire)

Question 18

How is a culture formed?

Answer 18

1) leadership style + founders personality
2) type of ownership + shares dilute the culture
3) recruitment policies + monoculture occur if there is a non-diverse recruitment process

Question 19

What are some difficulties in changing the culture?

Answer 19

1) traditions/legacy and employees behaviour has been moulded over time (family-business)
2) production methods
3) one CEO/director vs staff (poor communication)
4) acknowledge by all staff (resistance), culture is deep-rooted and engrained.

Question 20

What factors determine a businesses culture?

Answer 20

• objectives/mission
• ethical stance
• leadership/management style
• type/size of business
• tradition/heritage
• the attitude of the organisation to enterprise
• performance
• degree of competition
• location
• staff
• FOUNDERS BELIEF

Question 21

What is an entrepreneurial culture?

Answer 21

similar to a web culture where power is in the centre

Question 22

What is a cluster culture?

Answer 22

people aren’t connected
working alone powerful people
internal infrastructure connecting administration

Question 23

How is organisational culture interlinked?

Answer 23

Interlinked as the leader determines the culture and leadership style

Question 24

Why do cultures need to change?

Answer 24

• adapt to changes
• remain competitive
• new leader
• PESTLE
• poor performance and poor ROCE
• industrial action
• social trends
• changes in the competitive structure

Question 25

What are the types of competitive structure?

Answer 25

• monopolistic
• oligopoly
• monopolistic competition
• perfect competition

Question 26

How do businesses manage culture successfully?

Answer 26

• clear 2-way communication
• clear vision
• provide training
• management by objectives
• ensure leadership style is appropriate
• consultation via quality circles, kaizen groups, works council, surveys, business research
• trade deal negotiations
• takes time

Question 27

What are the negatives of a power culture?

Answer 27

• staff may not feel valued
• lower productivity
• increased absenteeism
• suited to small businesses

Question 28

What are the positievs of a power culture?

Answer 28

+ full control by select invidivuals
+ short chains of command
+ good for dynamic market

Question 29

What are the positives of a role culture?

Answer 29

+ follow rules –> consitency less risk
+ scientific objectives and decisions
+ lines of authority, improving delegation

Question 30

What are the negatives of a role culture?

Answer 30

• slow
• not adaptable to change
• not good in dynamic markets

Question 31

What are the positives of a task culture?

Answer 31

+ feel valued
+ emphasis on culture
+ flexible to changes`

Question 32

What are the negatives of a task culture?

Answer 32

• constantly changing power
• hard to control
• may lead to a person culture as people become demotivated constantly working in teams

Question 33

What are the positives of a person culture?

Answer 33

+ easy to obtain transfferable skills
+ employees are given freedom and are therefore motivated
+ values productivity and expertise

Question 34

What are the negatives of a person culture?

Answer 34

• inconsistency and conflict
• can make the culture toxic
• stray away from objectives