Exam 2 Flashcards
What is company culture?
The shared beliefs and values established by the company that employees are expected to follow.
Because companies and industries vary significantly,
there is no one-size-fits-all culture template that meets the needs of all organizations
True
Essentially, company culture defines the proper way to behave within the organization.
True
Three levels of organizational culture are:
Observable artifact (physical manifestations of culture), Espoused values (Explicitly stated values and norms), Basic assumptions (Core values of the organization)
Level 1: Observable artifact is…
An artifact or symbol that is believed to bring forth more honest and constructive discussions among employees
Level 2: Espoused values are…
The norms and values of a company; for example, CVS’s contradictory selling of cigarettes stopped because it went against the values of a pharmaceutical company
Level 3: Basic assumptions is…
The core values of an organization; for example, servers are expected to serve the customers while also maintaining a fun, relaxed work environment
Culture can attract new employees and retain existing ones. There are many kinds of company cultures.
True
Adhocracy Culture
- External focus
- Values flexibility, creativity and
quick response to changes in the
marketplace - Customer responsiveness is highly valued
- Employees empowered to make decisions
- Employees are rewarded for creativity,
initiative, experimentation, and risk-taking
Market Culture
- Focuses on the external environment
- Values stability and control
- Values competition and an aggressive approach
to doing business - Values results and people who work long hours
to get them - Emphasizes winning and meeting ambitious goals
Clan Culture
- Internal focus
- Values flexibility over employees
- High value on meeting employee needs– may be
family-like and caring - Values cooperation, consideration, avoidance of
status differences
Hierarchy Culture
- Has an internal focus
- Values stability and control over flexibility
- A formalized, structured work environment that
values “Following the rules” - Rewards a methodical, orderly, rational way of
doing things - Examples include government agencies, the
military, nuclear power plants, hospitals … and
many professional sports teams
How do employees learn culture?
- Symbols
- Stories
- Heroes
- Rites and rituals
- Organizational socialization
Who was Lou Gerstner?
Was the first IBM CEO to be hired from outside the company; formerly of Nabisco and American Express
What did Lou Gerstner do?
He provided a total culture change that was not perfect but delivered fast. The biggest change was providing a company-based bonus to encourage teamwork.
From 1993 until Gerstner’s retirement in 2002, IBM’s
market capitalization rose from $29 billion to $168 billion.
True
How to find out about a culture?
- Read about the company in the media
- Read the company website
- Ask employees
- Ask interviewers
Person-Organization Fit
Reflects the extent to which your personality and values match the climate and culture of the company
How to stand out in a new job:
- Be aware of the power of first impressions
- Become an observer – arrive early, stay late –
watch people, learn the business - Network with people, and find out how the organization
works and who does what - Ask for advice
- Over-deliver
- Soak up the culture!
What is a Shareholder
anyone who owns stock in a company.
What is a Stakeholder
anyone who can affect a company or be affected by a company
The shareholder is not the only party that has a stake in a corporation
True
Stakeholders include
– employees and employees’ families
– the media
– suppliers
– customers
– competitors
– governments
– local communities … and many others …