Factors and their impacts Flashcards
What is corporate culture?
Corporate culture is a set of values, beliefs and customs that is shared by all people in an organisation.
What methods are used in corporate culture?
- Company values
- Office layout
- Corporate colours
- Uniformity of layout
- Language and jargon
- Symbols, slogans and mottos
- Rituals
- Stories
- Reward culture
- Flexible working arrangements
What are advantages of corporate culture?
- Flexible working arrangements mean staff work when and where they are more productive.
- Employees feel part of the organisation through the use of uniforms, jargon, and so on.
- Customers gain a sense of quality product/service.
- Rituals create a relaxed ethos and can improve employee relations.
- Employee loyalty is increased as they are happy in their jobs and feel a sense of belonging to the business.
- High-quality new staff are attracted to the business as they like the idea of working in the culture.
- A relaxed working environment, empowerment and a flat hierarchy can motivate staff.
What are disadvantages of corporate culture?
- Culture is hard to introduce unless it starts from the founders.
- Staff have to be made aware of changes to culture and if they aren’t they may resist change.
- Modern office cultures can leave some employees physically and socially distant from others, demotivating them.
- Some cultures can be seen as a ‘bribe’ to get staff on board.
- Management can lose focus and control if a culture is too ‘loose’.
What are the factors?
- Finance
- Staff
- Technology
- Corporate Culture
What does it mean by finance? (don’t really need)
All organisations need finance in order to achieve their objectives.
The following are possible situations that may arise to due budget constraints and no availability of finance to rectify the situation.
For Finance, what are the possible situations?
The organisation may not be able to implement decisions and take the courses of action it wishes to, such as:
- expanding the business by developing new products.
- offering wage rises to motivate staff.
The organisation may have to take drastic action to cut costs, such as:
- making staff redundancies (downsizing)
- removing a layer of management (delayering)
What are the situations for staff? - Managers.
- Level of risk
- Experience and expertise
Define ‘level of risk’.
Sometimes managers go for the ‘safe’ option which won’t necessarily meet the objectives of the business, such as maximising profits.
On the other hand, some managers take too much risk, and when things go wrong, put an organisation into financial difficulties.
Define ‘experience and expertise’.
A good manage can lead and motivate a team to success, while a bad manage can cause low morale, high turnover of staff and a drop in productivity.
What are the situations for staff? - Employees.
- Training
- Morale
- Experience
- Capacity
Define ‘training’.
A well-trained employee fulfils their role efficiently and is an asset to the company; a bad trained one cane incapable of performing basic functions, such as interacting with customers, and is detrimental to the organisation.
Define ‘morale’.
Employee morale needs to be high as, if morale is low it could impact on the performance levels of the staff, increase staff absenteeism or worse, lead to industrial action such as a strike.
Define ‘experience’.
Employees need to have experience of doing the job in order to develop skills and expertise to carry out their jobs efficiently.
Define ‘Capacity’.
A business will not be able to perform to its best if it is not fully staffed. Sometimes when a business tries to recruit more staff, labour shortages can prevent success.
An example is the lack of teachers of certain subjects.
