Chapter 57- Corporate Culture

Question 1

Advantages to a strong corporate culture

Answer 1

•Sense of identity for employees – they feel part of the business, this may lead workers to be flexible when the company needs to change or is having difficulties
• Helps teamwork
• Increases commitment as they feel a part of it
• Helps employees understand what’s going on around
them – helps reduce misunderstandings in operations
• Helps motivation

Question 2

Strong culture

Answer 2

A strong culture Is one that is deeply embedded into the ways a business or organisation does things. It is argued that there are certain advantages to a business of establishing a strong corporate culture.

Question 3

Weak culture

Answer 3

In comparison to a strong culture, a weak culture exists where it is difficult to identify the factors that form the culture or where a wide range of sub cultures exist, making the culture difficult to define.

Question 4

Identifying if corporate culture is strong or weak

Answer 4

• Surface manifestations- furniture, ceremonials, language
used
• Core organisational values
• Basic assumptions

Question 5

Core organisational values

Answer 5

Core values are located below the surface manifestations of organisational culture – they are consciously thought-out and expressed in words and policies. The values expressed in a mission statement would be an example.

Question 6

Basic assumptions

Answer 6

Basic assumptions are the unsaid beliefs and ways of working; they form the general attitude of the workforce and represent the totality of individuals beliefs and how they then behave.

Question 7

Cultural dimensions

Answer 7

A set of characteristics that form the international context of business culture

Question 8

Corporate social responsibility

Answer 8

Responsibility to not only shareholders but all stakeholders

Question 9

Handy stated 4 types of culture

Answer 9

• Power culture- central source of power for decision making
• Role culture- decisions are made through well-established
rules and procedures
• Task culture- power given to people that accomplish tasks
– power therefore lies with those of expertise than of a
particular role.
• Person culture- no. of people in business that have the
expertise to make the decision – but don’t necessarily
work together closely – examples are accountants,
lawyers and doctors

Question 10

4 Effects of organisational culture

Answer 10

• Motivation – can have a direct effect because the way in which staff treat each other impacts their motivation. A highly competitive culture might motivate some workers and demotivate others.
• Organisational structures – In a person culture, hierarchy is fairly flat. In contrast in large multinational business there are likely to be more layers in management.
• New management - One way for a business to change is for new management to be appointed. The greater the change needed, the more likely it is that new management will have to confront the existing organisational culture.
• Mergers and takeovers – When two businesses merge or one takes over another, each business is likely to have a different organisational culture. The process of creating a single business out of the two organisations will therefor involve changing organisational culture.

Question 11

Corporate culture

Answer 11

The values, attitudes and beliefs shared by the organisation

-Often a strong leaders attitude will permeate the organisation