7 Corporate Organizational Culture

Question 1

What is Corporate Organizational Culture?

Answer 1

• It has a positive effect on the success of company
  -based on fundamental beliefs and assumptions (what is the company’s purpose, how member should behave, how the company interact with the environment)
• Organizational culture is a pattern of shared values and beliefs
• It can be developed differently (positive/negative, strong/weak. consistent/inconsistent, homogeneous/heterogeneous)

Question 2

Explain 4 different culture framework

Answer 2

Internal Maintenance vs. External Positioning:

Internal Maintenance focuses on integration, smooth functioning, and keeping the organization cohesive.
External Positioning emphasizes competition, differentiation, and achieving goals in the external market.

Organic Processes vs. Mechanistic Processes:

Organic Processes encourage flexibility, creativity, and spontaneity.
Mechanistic Processes focus on order, control, and stability.

1. CLAN CULTURE
   Focus: Internal Maintenance + Organic ProcessesDominant Attributes: This culture emphasizes cohesiveness, participation, teamwork, and a family-like atmosphere.
   Leader Style: Leaders act as mentors, facilitators, or parental figures.
   Bonding: Loyalty, tradition, and interpersonal cohesion are key to keeping the organization united.
   Strategic Emphases: Focused on developing human resources, building commitment, and promoting morale.

This culture thrives on creating a sense of belonging and prioritizing employee well-being.

2. HIERARCHY CULTURE
   Focus: Internal Maintenance + Mechanistic ProcessesDominant Attributes: The organization operates with order, rules, and uniformity.
   Leader Style: Leaders are coordinators and administrators who ensure smooth processes.
   Bonding: Rules, policies, and procedures are used to create alignment and stability.
   Strategic Emphases: Focused on stability, predictability, and ensuring smooth operations.

This culture values structure, formalization, and clear workflows for organizational efficiency.

2. ADHOCRACY CULTURE

Focus: External Positioning + Organic Processes

Dominant Attributes: The culture prioritizes entrepreneurship, creativity, and adaptability.
Leader Style: Leaders are entrepreneurs, innovators, and risk-takers.
Bonding: The organization fosters bonding through entrepreneurship, flexibility, and risk.
Strategic Emphases: Focuses on innovation, growth, and generating new resources.

This type of culture suits organizations that prioritize constant innovation and adaptability in dynamic markets.

4. MARKET CULTURE
   External Positioning + Mechanistic ProcessesDominant Attributes: The culture emphasizes competitiveness and achieving tangible goals.
   Leader Style: Leaders are decisive and achievement-oriented, driving results.
   Bonding: Bonding occurs through shared goals and a focus on goal orientation and production.
   Strategic Emphases: Focused on competitive advantage and maintaining market superiority.

This culture fits organizations that operate in competitive environments and prioritize efficiency and results.

Question 3

Corporate Culture Model

Answer 3

1. Artifacts: Visible and tangible structures and processes (office design, dress code) - difficult to see
2. Values: Core beliefs that guide behavior (e.g., teamwork, innovation), ideas, goals, values, damand - Congruent/non-congruent with artifacts and behavior
3. Assumptions: Unconscious values and beliefs taken for granted (relationship to
   the environment, nature of reality, time, space, nature of human
   being/activity/relationships)- Determine behavior, perception, thinking and feeling

Question 4

Basic assumptions and values of entrepreneurial organizational culture.

Answer 4

.Basic Assumptions:

Respect and recognition for individuality and autonomy.
Belief that human activities aim for meaning and purpose.
Confidence in producing good and meaningful work.

Values:

Focus on the future and long-term goals (Morris et al., 2010).
Encourage openness in communication (Hogan & Coote, 2014).
Prioritize value creation efforts (Orchard, 2015).
Strive for effectiveness in actions (Morris et al., 2010).
Celebrate novelty, innovation, and change (Morris et al., 2010; Orchard, 2015).
Grant freedom and responsibility (Morris et al., 2010).
Promote cooperation (Hogan & Coote, 2014).

Question 5

What are the artifacts of an entrepreneurial organizational culture?

Answer 5

Working Environment Design:

Spaces that encourage creativity and collaboration.

Inspirational Stories:

Stories about employees solving problems in innovative and entrepreneurial ways, becoming "heroes" or "role models."

Innovative Customer Solutions:

Solving customer problems through fundamentally innovative approaches.

Marketing Campaigns:

Creative and groundbreaking marketing strategies.

Dress Code:

A relaxed dress code that avoids traditional and conservative styles.Design of the working environment– Stories about employees who solved problems in a particularly innovative and  entrepreneurial way and became „heroes“ and „role models“– Solving customer problems in a fundamentally innovative way– Innovative marketing campaigns– Dress code that renounce conservative

Question 6

Implementing entrepreneurial organizational culture

Answer 6

1. Recommendation for incremental and successive cultural change (Allowing teams autonomy to innovate, expending freedom with positive results)
2. Reconcile Individualism and collectivism (Balancing personal freedom with teamwork, align perosnal and organizational goals)
3. Culture developes thorugh interaction between manager and employee (leadership and organizational lanfufage are critical)

Question 7

Explain the error cycle

Answer 7

1. BEFORE
   * respect (nned to be aware that mistakes will happen)
   * tryout (which areas failures could happen)
   * recongize (how am i able to recongize the mistake, making them low as possible)
2. DURING
   * react (do not try to solve, mistakes happen)
3. AFTERWARDS
   * reflect (do not ignore it, think about it)
   * recover (workshops)
   * remember (mistake should be recorded)

Question 8

Error and second-chance culture

Answer 8

Tolerance for Mistakes:
Innovative ventures need environments that accept mistakes and failures.
Errors are defined as deviations from expected or standardized outcomes

Improves Performance:
Evidence links error culture to better corporate results

Security and Trust:
A supportive culture prevents fear and encourages risk-taking.

Learning from Mistakes:
Foster trust and learning by emphasizing experimentation, testing, and resilience.

Question 9

What are the error and influencing factors

Answer 9

Errors often lie in communication.
- no open/appropriate handling of error between levels
- no construdend, solution orinted approach

Influencing factors for success are:
- Stories and myths (telling story of failure)
- symbols (successfull nd unsuccessful products)
- leadership behaviour
- rituals and routines