Corporate Culture (3.4.2) Flashcards
What is Corporate Culture?
Corporate culture refers to the values, beliefs, and behaviors that are common or understood at a company. These determine how a company’s employees and management interact, perform, and handle business transactions. Often, corporate culture is implied, not expressly defined, and develops organically over time from the cumulative traits of the people that the company hires.
What is strong culture?
-Focus on customer needs and allowing staff to make decisions
-Staff show emotion for the business and commit long-term
-United view among staff that business is doing something good
-United view among staff on teamwork
-Sticking together in times of crisis
When does a strong company culture exist?
Exists where factors such as attitudes and beliefs are easily-recognized and embedded into the way that a business operates. Businesses with strong cultures are likely to possess a range of visual features and norms.
What does being a worker in a business with a strong culture mean?
Means workers have more ‘can do’ attitude and enthused by work
What are some examples of visual features and norms visible in a business with a strong culture?
Visual Features:
-Uniforms
-Role model figurehead
-Award evenings
-Layouts of business premises
-Training culture
Norms:
-Core organisational values
-Workplace procedures
-Business specific language
-Decision making approach
What is weak culture?
-Staff follow script with customers as they aren’t trusted
-Staff show commitment to their department, not the business
-Cynical view among staff about the true business principles
-Staff look after themselves, not their colleagues
-In times of crisis senior staff seek new jobs
What does being a worker in a business with a weak culture mean?
There is a ‘them and us’ attitude between workers and management. Employees doubt sincerity of corporate mission. High levels of staff turnover and low commitment amongst existing staff.
What is Culture Development?
-The aims or missions of the business
-The behavior of senior staff
-The attitude of senior staff to risk
-Recruitment and training procedures
What is Handy’s classification of cultures?
Guiding principles around how power is managed and decisions are made with an organisation. Handy’s theory describes four distinct management styles, each with its own values. Over time, these values and expectations create a culture within the organization. Can have a variety of cultures within an organization
What are the four types of culture Handy outlines?
Handy outlined four types of culture:
-Power Culture
-Role Culture
-Task Culture
-Person Culture
What is Power Culture?
-All decisions go through those in control
-Little in the way of rules and procedures
-Employees judged on what they achieve not how achieved
-Business practice can become unethical
-Everything done to please boss
-Can be toxic
What is Role Culture?
-Power depends on position you hold
-Specific rules and procedure to be followed
-Vertical Communication=Slow
-Good in stable, certain markets
-Not so good in dynamic markets that require flexibility to change
What is Task Culture?
-No single power source
-Multi-department teams assembled for projects
-Power within teams lies in expertise, not role
-Good in dynamic markets
-Not so good in stable, long-term markets as teams loose sense of business objectives
What is Person Culture?
-Individuals see themselves as superior to business
-Organization exists for individuals to work
-Workers bring specific skills or client bases to business
-Found in professions such as law, accountants etc..
How is Corporate Culture formed?
Generally forms over time especially as a business grows
What factors contribute to the formation of Corporate Culture?
A mix of all three is needed for Corporate Culture:
1. Leadership Style- Leaders attitude can have a significant impact upon the culture that forms within an organisation.
2. Human resources policies-In return for good HRP there is a culture of loyalty
3. Types of ownership- Ownership style ca influence the business culture
What are the advantages of Corporate Culture?
-Gives stability to the business
-Staff understand their role and level of power
-Decisions can be made for entire company
-Clear rules and procedures for staff to follow
What are the disadvantages of Corporate Culture?
-Staff can be resistant to change
-Loss of staff’s flexibility and autonomy
-Can make brand less flexible to change
-Long-term success in the market damaged
