Culture Flashcards
Corporate cultures - Role
Role culture is an organizational structure where roles are clearly defined, focusing on rules and procedures. It ensures efficiency and accountability but may limit flexibility and innovation. It’s effective in large, stable organizations but not ideal for those needing creativity or change.
Role culture: Autocratic/Paternalistic
People have clearly delegated authorities within a highly defined structure
A hierarchical beuracracy
Power derives form a persons position
Little scope exists for expert power
Based on rules
Highly controlled
Can be painfully slow decision making and the organisation is less likely to take risks
Corporate cultures - Power
Power culture: Autocratic
- Control radiates from the centre
- Concentrates power among a few
- Few rules and little bureaucracy
- Swift decisions are possible
- Clear who holds the power
- However can turn toxic
- Judged on results rather than how you get there
Corporate cultures - Person
Person culture: Democratic
People who believe themselves to be superior to the business
Business full of people with similar training, background and expertise
Common in firms of professionals - lawyer/accountant
Power lies in each group of individuals
Simply exists in order for people to work
Corporate cultures - Task
Task culture: Paternalistic/Democratic
Teams formed to solve particular problems
Power derives from expertise as long as a team requires expertise
No single power source
Matrix organisation
Team may develop own objectives (a risk)
Task is the important thing
Effectiveness of this type of culture is largely determined by the team dynamic
Why change cultures?
- Declining profits and sales
- Inadequate return on investment
- Market changes
- Change in societal views
- Change of ownership
- Political and legal environment
- Economic conditions (downturn)
- Change of management or leadership
Examples = Kodak, digital cameras, too late to embrace the rapid shift from film to digital photography
