Internal factors (culture)

Question 1

What is corporate culture?

Answer 1

Values, beliefs or norms relating to the company or organisation that are shared by all its staff

Question 2

Methods used to develop corporate culture:

Answer 2

Company values
Office layout e.g. open plan (communication)
Uniformity of layout e.g. easily go between branches
Language and Jargon
Symbols, slogans and mottos (recognisable)
Rituals e.g. dress down Friday
Reward culture e.g. employee of the month, bonuses
Flexible working arrangement

Question 3

Benefits of corporate culture:

Answer 3

Sense of belonging, loyalty (uniform)
Staff can move between branches easily
Work when most productive (flexible hours)
Staff are relaxed and comfortable (rituals e.g. dress down Fridays)

Question 4

Costs of corporate culture:

Answer 4

Must come from founders/leaders
Difficult to maintain culture during covid (working from home)
Positive culture may be seen as a bribe
Management may lose control if culture is too loose