Lesson 22 - Culture

Question 1

What is corporate culture?

Answer 1

The shared values and beliefs of the people in an organisation.

Question 2

What is ‘official corporate culture’?

Answer 2

The desired culture a business wishes to establish (i.e. what an organisation says it stands for)

Question 3

What is ‘real corporate culture’?

Answer 3

The actual or prevailing culture that exists within a business – i.e. essentially how things ACTUALLY operate.

Question 4

List 3 indicators of official corporate culture.

Answer 4

1. Mission statements
2. Vision statements
3. Policies
4. Stated priority areas in annual reports
5. CEO/Management statements

Question 5

List 3 indicators of real corporate culture.

Answer 5

1. Physical structure
2. Dress and language
3. Staff relations
4. Management style
5. Budgets
6. Rituals and celebrations
7. ‘Heroes’ - who people look up to

Question 6

Why is it important to align the real culture with the official culture as much as possible?

Answer 6

So that a business can achieve its objectives.

Question 7

What are 7 strategies that can be implemented to develop corporate culture?

Answer 7

1. Develop formal statements (mission, vision and values statements)
2. Implement policies
3. Communicate desired values
4. Recruit in line with desired values
5. Train staff
6. Reward and recognise staff
7. Consider altering management style